2026-02-09 03:53

Gold rises nearly 1%, building on Friday's 4% gain Silver climbs nearly 4% after gaining nearly 10% on Friday Delayed US jobs, inflation data due later this week Feb 9 (Reuters) - Gold and silver extended gains on Monday, with the yellow metal trading just above $5,000 per ounce as the dollar dipped, while investors awaited key U.S. jobs and inflation data due later in the week to gauge the interest rate trajectory. Spot gold rose 0.9% to $5,004.61 per ounce by 0748 GMT after a 4% climb on Friday. U.S. gold futures for April delivery gained 1% to $5,026.30 per ounce. Sign up here. "This could be the very short-term intraday correlation between the dollar and silver as well as gold (driving the metals up)," said Kelvin Wong, a senior market analyst at OANDA. The U.S. dollar was at its lowest level since February 4, making greenback-priced metals cheaper for overseas buyers. The yen strengthened after Japanese Prime Minister Sanae Takaichi swept to victory in Sunday's election. "Bargain-hunting is (also) pushing gold back above the $5,000 level," said KCM chief analyst Tim Waterer. Investors await monthly reports on employment and consumer prices this week, and expect at least two 25-basis-point rate cuts in 2026, with the first one expected in June. Non-yielding bullion tends to do well in low-interest-rate environments. FEDWATCH "Any softness in the jobs data could help gold's rebound efforts. We are not expecting a rate cut from the Fed until mid-year, unless the jobs data really starts to drop off a cliff," Waterer said. San Francisco Federal Reserve President Mary Daly said on Friday she thinks one or two more interest rate cuts may be needed to counteract weakness in the labour market. Spot silver climbed 3.7% to $80.89 per ounce after a near 10% gain in the previous session. It hit an all-time high of $121.64 on January 29. "Unless silver is able to clear above that key resistance at $92.24, I'm not so convinced in terms of a probability perspective of a medium uptrend," Wong said. Spot platinum was down 0.7% at $2,081.23 per ounce, while palladium lost 0.3% to $1,707.31. https://www.reuters.com/world/india/gold-extends-gains-softer-dollar-investors-eye-us-jobs-data-2026-02-09/

2026-02-09 03:50

Robert Schellenberg's death sentence overturned by China's Supreme People's Court PM Carney's visit to China seen as influencing court decision Canada-China relations improve with tariff reductions on EVs and canola BEIJING, Feb 9 (Reuters) - China's top court has overturned a Canadian man's death sentence on drug charges, his lawyer said on Monday, marking a breakthrough in a case that has strained diplomatic relations between Ottawa and Beijing for years. Robert Schellenberg was arrested in China in 2014 for suspected drug smuggling and convicted in 2018, initially receiving a 15-year prison sentence. He was subsequently condemned to death in a January 2019 retrial - one month after Huawei executive Meng Wanzhou was arrested in Vancouver on a United States warrant. Sign up here. China's Supreme People's Court on Friday ruled against a death sentence passed by the lower court, Beijing-based lawyer Zhang Dongshuo told Reuters. The case will be sent to Liaoning Provincial High People's Court for retrial, he said. The breakthrough came less than a month after Canadian Prime Minister Mark Carney made a four-day visit to China, where he hailed both countries' improving ties after they had soured under Canada's previous leader Justin Trudeau. A spokesperson for Canada's foreign ministry told Reuters they were aware of the Supreme Court's decision and would continue providing consular services to Schellenberg and his family, without elaborating on the decision. "Judging from both countries' official remarks after the Canadian prime minister visited China, the likelihood of the Supreme Court's decision (being related) is very high, according to my experience," said Zhang. However, he added that the possibility of Schellenberg being eventually acquitted was not high, given the severity of the original sentence. Four Canadian citizens were executed by China last year on drug smuggling charges, Canada said at the time. Schellenberg's death sentence had been upheld by the Liaoning court in 2021 after an appeal hearing, drawing condemnation from Ottawa at the time. China had detained two Canadians on spying accusations shortly after Meng was detained, prompting international accusations of hostage diplomacy. They were released in 2021 on the same day the U.S. dropped its extradition request for Meng and she returned to China. Diplomatic ties were further strained after Canada's government imposed tariffs on Chinese electric vehicles in 2024, following similar U.S. curbs. China retaliated last March with tariffs on more than $2.6 billion of Canadian farm and food products, such as canola oil and meal, followed by tariffs on canola seed in August. After Carney's visit, both countries agreed to slash tariffs on EVs and canola in a major reversal of previous policy. Analysts say the rapprochement between Canada and China could reshape the political and economic context in which Sino-U.S. rivalry unfolds, although Ottawa is not expected to dramatically pivot away from Washington. https://www.reuters.com/world/china/china-overturns-canadians-death-sentence-after-carney-visit-lawyer-says-2026-02-09/

2026-02-09 03:03

SYDNEY, Feb 9 (Reuters) - New Zealand has shortlisted contractors to build a liquefied natural gas (LNG) import facility to boost energy security, provide a reliable backup power source and support economic growth, Energy Minister Simon Watts said on Monday. The government aims to sign a contract by the middle of this year for an import facility in Taranaki, on the country's North Island, that would be ready to receive LNG in 2027 or early 2028. Sign up here. The model will allow LNG to be imported in large shipments and only when needed, limiting exposure to global gas prices. Despite a boom in renewable electricity generation, mostly hydropower, declining gas supplies have left New Zealand's power sector vulnerable during droughts when water levels at the lakes and dams run low, Watts said. "The result is greater reliance on coal and diesel, and ultimately higher electricity prices, putting more financial pressure on families and making businesses less competitive," Watts said in a statement. "Establishing an LNG import facility is an important next step." The centre-right government elected in 2023 has sought to diversify energy sources. In 2025, it passed a law to reopen the country for offshore oil and gas exploration, lifting a ban imposed by the previous centre-left Labour-led government. Watts said access to LNG could deliver economic benefits estimated at NZ$1.2 billion ($721.6 million) annually by 2035 and help protect around 2,000 jobs from the impact of rising energy prices and gas shortages. ($1 = 1.6631 New Zealand dollars) https://www.reuters.com/business/energy/new-zealand-set-build-lng-import-facility-boost-energy-security-2026-02-09/

2026-02-09 02:40

MUMBAI, Feb 9 (Reuters) - The Indian rupee was marginally stronger on Monday, helped by modest interbank dollar sales in thin trade following a technical outage on the London Stock Exchange Group's (LSEG) foreign exchange trading platform. The rupee rose 0.1% to 90.5425 as of 10:30 a.m. IST, up from its close at 90.6550 on Friday. Sign up here. Technical issues with financial technology and data provider LSEG's foreign exchange trading platform dampened volumes in early trading, according to traders. Traders at some banks faced issues executing orders on the interbank order matching system, while others were able to use it. LSEG did not immediately respond to a Reuters email seeking comment. Meanwhile, traders also parsed the details of an interim trade framework between India and the U.S. Washington cut tariffs on Indian exports to 18%, and the framework reaffirms a commitment to negotiations toward a broader bilateral trade agreement. Separately, U.S. President Donald Trump, in an executive order, removed the additional 25% tariff imposed on Indian goods for Russian oil purchases. U.S. officials will monitor and recommend reinstating the tariff if India resumes oil procurement from Russia, the order said. "The conclusion of some free trade agreements (FTAs) could support the INR by helping a resumption of capital flows and the currency’s undervaluation relative to peers," Michelle Castelino, investment strategist at Standard Chartered, said in a note. "We expect foreign investors to return to Indian equities following recent trade deals with the U.S. and Europe, drawn by India’s double-digit earnings growth and more attractive valuations." Foreign portfolio investors bought Indian shares worth nearly $1 billion on a net basis in the last four sessions, after the India-U.S. trade deal was announced. India's benchmark equity indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab were up about 0.6% each on the day. https://www.reuters.com/world/india/rupee-nudge-higher-traders-parse-us-india-interim-trade-framework-2026-02-09/

2026-02-09 02:28

Lower house supermajority gives sweeping power to pass bills Takaichi has pledged massive fiscal spending, food tax relief Yen's knee-jerk slide met with intervention warnings from Tokyo TOKYO, Feb 9 (Reuters) - Japanese stocks swept to all-time peaks while super-long bonds quickly reversed early weakness in an apparent vote of confidence in Prime Minister Sanae Takaichi's "responsible, proactive" fiscal policy. The yen initially declined to a record trough against the Swiss franc, but rapidly switched direction after a warning about potential currency intervention from Tokyo. Sign up here. Takaichi's Liberal Democratic Party won a landslide 316 of the 465 seats in parliament's lower house in Sunday's snap election, giving her a solid mandate to push through big spending and promised tax relief. But she has repeatedly stressed that her stimulus plans will not blow out the nation's finances, a major concern for markets given Japan already has the developed world's heaviest debt burden. "The result reduces political uncertainty and strengthens the broader 'Japan is Back' narrative," said Masahiko Loo, senior fixed-income strategist at State Street. "Investor focus is broadening beyond initial 'Takaichi trade' winners such as exporters, cyclicals, financials and defence." The Nikkei 225 share average (.N225) , opens new tab finished the day up 3.9% to notch a record-high close at 56,363.94. The broader Topix (.TOPX) , opens new tab rose 2.3% for a record closing level of 3,783.57. A GOVERNMENT FOR THE LONG HAUL "It's not just a stable administration - What's coming into view is the prospect of a long-term administration," said Shingo Ide, chief equity strategist at NLI Research Institute. For the Nikkei though, "I don't think it will keep rising at this pace. If it were to shoot straight to 60,000, that would be a bit overdone," Ide said, adding that it may eventually "settle down" around 56,000. In the debt market, 30-year Japanese government bonds (JGBs) initially lurched lower, sending yields soaring 6.5 basis points (bps) to 3.615%. But that move was quickly unwound and the yield was last up just 1 bp at 3.56%. "I think the reaction indicates that Takaichi has successfully convinced the market that she will be a strong leader, but not be a fiscally irresponsible one," said Zuhair Khan, a senior portfolio manager at UBP. "But we will have to wait and see." A bond investor revolt in October, when she won leadership of the LDP, provoked her to craft her current "responsible, proactive fiscal policy", announced in her first policy speech to parliament and contained in the LDP's manifesto , opens new tab. From a policymaking perspective, Takaichi's big win may be the best result for bond investors, because the LDP won't need to compromise with opposition parties targeting even deeper tax relief and broader fiscal stimulus. The 30-year JGB yield surged to a record 3.88% last month when Takaichi initially pledged to suspend the tax on food for two years, but has been well below that for the past two weeks. She has said that she won't fill the estimated 10 trillion yen ($63.85 billion) shortfall with new bond issuance. Shorter-dated JGB yields rose though, with the two-year yield up 3.5 bps to the highest since May 1996 at 1.31%, while the five-year yield climbed 5 bps to 1.735%, the highest according to LSEG figures dating back to April 2001. The 10-year JGB yield advanced 6 bps to 2.29% and 20-year yields rose 3.5 bps to 3.165%. Analysts said the flattening of the so-called yield curve came as traders bet on earlier interest rate hikes by the Bank of Japan, with the government able to implement stimulus more quickly, boosting economic growth and stoking inflation. MARKET STAYS ON INTERVENTION ALERT The yen initially dipped on Monday, reaching the lowest ever at 203.30 yen per Swiss franc and falling as much as 0.4% against the euro and 0.5% versus the U.S. dollar . However, the currency rapidly reversed course after Japan's top currency diplomat, Atsushi Mimura, said the government is "closely watching currency movements with a high sense of urgency" in a warning about potential yen-buying intervention. The yen was last up around 0.5% at 156.41 per dollar, and 0.2% higher at 185.38 per euro. It was 0.2% higher at 202.18 per franc. Last month, as the yen weakened to the cusp of 160 per dollar, reported calls by the Japanese and U.S. central banks to lenders checking the exchange rate - a traditional sign that currency intervention may be imminent - triggered a rebound to 152.10 yen per dollar within days. "The market has long been mindful that further yen weakness could invite intervention," said Kumiko Ishikawa, senior analyst at Sony Financial Group. After substantial yen declines last week amid expectations of a Takaichi victory, "the topside was already heavy" in the dollar-yen pair, she said. "Then Mimura's verbal intervention came in and nudged the level lower." ($1 = 156.6200 yen) https://www.reuters.com/world/asia-pacific/japan-stocks-surge-record-bonds-slide-with-yen-takaichis-landslide-election-win-2026-02-09/

2026-02-09 01:31

MUMBAI, Feb 9 (Reuters) - Indian foreign exchange traders will watch foreign portfolio inflows this week to see whether the rupee's rally, sparked by last Monday's U.S.-India trade deal announcement, could extend meaningfully. In fixed income, bond market investors will monitor demand-supply dynamics, which could prove key in determining the direction of bond yields. Sign up here. The rupee closed at 90.6550 on Friday, up over 1% on the week. The U.S. and India unveiled an interim trade framework on Friday, building on an initial announcement earlier last week. While the breakthrough has lifted sentiment on Indian assets, analysts remain cautious about its impact on portfolio flows. Foreign investors have net bought nearly $900 million of Indian stocks so far in February, after pulling $4 billion last month, though they have sold $19 billion so far in 2025. "While the currency (INR) could trade more stably for a while, especially if the drawdown in risk extends, spot upside is likely to prove limited," analysts at Goldman Sachs said in a note. In global markets, the focus this week will be on the release of key U.S. economic data alongside reactions to elections outcomes in Japan and Thailand. BONDS The 10-year benchmark 6.48% 2035 yield settled at 6.7363% on Friday, notching its second consecutive weekly rise, after the Reserve Bank of India's monetary policy decision. The central bank held rates at 5.25% as expected but offered no fresh liquidity support. Traders had expected tweaks to liquidity rules to ease deposit tightness amid rising yields and credit growth. Traders expect the yield to move in a 6.71%–6.80% range this week, with sellers in the driving seat. On Friday, With the budget and the central bank policy behind, the market focus will be on debt supply. The MPC is set for a prolonged pause, with the RBI focusing on liquidity via open market purchases and FX swaps, though higher FY27 borrowing could add upward pressure on yields, said Puneet Pal, PGIM India MF. India aims to gross borrow a record 17.20 trillion rupees ($189.70 billion) next financial year, with net borrowing of 11.73 trillion rupees. India's financial year starts in April and runs through March. RBI Governor Sanjay Malhotra said the focus on the size of gross borrowing could be misleading and that net borrowing provides a more accurate assessment of the fiscal position. "Looking at gross borrowing is not the correct way because there are many more redemptions next year than in the current year." KEY EVENTS: ** India January retail inflation - February 12, Thursday (4:00 p.m. IST) U.S. ** December import prices - February 10, Tuesday (7:00 p.m. IST) ** December retail sales - February 10, Tuesday (7:00 p.m. IST) ** January non-farm payroll and unemployment rate - February 11, Wednesday (7:00 p.m. IST) ** Initial weekly jobless claims for week to February 7 - February 12, Thursday (7:00 p.m. IST) ** January existing home sales - February 7 - February 12, Thursday (8:30 p.m. IST) ** January consumer price inflation - February 13, Friday (7:00 p.m. IST) (Reuters poll: 2.5%) https://www.reuters.com/world/india/indian-rupee-gauge-sustenance-foreign-flows-bonds-back-supply-worries-2026-02-09/