2024-10-03 00:52

NEW YORK, Oct 3 (Reuters) - The dollar rose to a six-week high on Thursday as data showed a still-solid U.S. economy before Friday's closely watched jobs report, while safe haven demand on concerns about rising Middle East tensions and the impact of a dockworker strike also boosted the currency. The greenback has additionally benefited from more dovish central bank expectations being built into currency peers, including the euro, sterling and yen. Data on Thursday showed that U.S. services sector activity jumped to a 1-1/2-year high in September amid strong growth in new orders, though its measure of services employment fell, consistent with a slowdown in the labor market. "Today is an example of how quickly the U.S dollar can recover," said Juan Perez, director of trading at Monex USA in Washington. While Thursday's data was "a little contractionary," the U.S. remains the envy of other countries, he said. Other data on Thursday showed that the number of Americans filing new applications for unemployment benefits rose marginally last week, but Hurricane Helene's rampage in the U.S. Southeast and strikes at Boeing (BA.N) , opens new tab and ports could distort the labor market picture in the near term. The dollar index was last up 0.33% at 101.98 and reached 102.09, the highest since Aug. 19. It hit a 14-month low of 100.15 on Sept. 27. "The dollar has been regaining some ground this week... some of it is just markets trying to navigate a lot of crosscurrents," said Vassili Serebriakov, FX & macro strategist at UBS in New York. Improving economic data and more hawkish comments from Federal Reserve Chair Jerome Powell on Monday have reduced expectations that the Fed will cut rates by another 50 basis points at its Nov. 6-7 meeting. Friday’s jobs report for September is the next major U.S. economic release that may sway Fed policy. Economists polled by Reuters expect 140,000 job additions, while the unemployment rate is anticipated to stay steady at 4.2%. (USNFAR=ECI) , opens new tab, (USUNR=ECI) , opens new tab "U.S. data has been a bit firmer, which probably makes the market a little bit more cautious about selling the dollar ahead of the nonfarm payrolls report," Serebriakov said. Traders are now pricing in a 35% probability of a 50 basis point cut next month, down from 49% a week ago, the CME Group's FedWatch Tool shows. The U.S. currency has benefited from a safety bid since Israel was attacked by Iran on Monday in a strike that raised fears the oil-producing Middle East could be engulfed in a wider conflict. Oil prices rose on Thursday on concerns that crude oil flows from the region could be disrupted. Asked on Thursday if he would support Israel striking Iran's oil facilities, U.S. President Joe Biden told reporters: "We're discussing that." Long lines of container ships also appeared outside major U.S. ports on Thursday as the biggest dockworker strike in nearly half a century entered its third day, preventing unloading and threatening shortages of everything from bananas to auto parts. "The U.S. dollar is a safe haven in the midst of chaos," said Perez. "In the post-pandemic world the number one concern was, can we rebuild healthy supply chain logistics? And this headline news completely destroys that stability and health." The euro has fallen on increasing expectations that the European Central Bank will cut rates at its Oct. 17 meeting as inflation recedes. It fell 0.17% to $1.1026 and got as low as $1.1008, the lowest since Sept. 12. Sterling tumbled after Bank of England Governor Andrew Bailey said that the British central bank could move more aggressively to cut interest rates if inflation pressures continue to weaken. The British pound was last down 1.15% at $1.3114 and reached $1.3093, the lowest since Sept. 12. The dollar also hit a six-week high against the yen as Bank of Japan board member Asahi Noguchi said the Japanese central bank must move cautiously and slowly to avoid hurting the economy. It comes after Prime Minister Shigeru Ishiba said on Wednesday that Japan is not in an environment for an additional rate increase. The dollar was last up 0.27% at 146.85 and earlier reached 147.25, the highest since Aug. 20. In cryptocurrencies, bitcoin fell 0.36% to $60,687.91. Sign up here. https://www.reuters.com/markets/currencies/dollar-hits-one-month-peak-yen-fed-seen-taking-time-with-rate-cuts-2024-10-03/

2024-10-03 00:42

'Weird' typhoon makes rare landfall on southwestern coast Typhoon to track up Taiwan's western plain Two dead, chip hub reports no impact Flights grounded, financial markets shut for second day Power cut to more than 100,000 homes KAOHSIUNG, Taiwan, Oct 3 (Reuters) - A weakened and "weird" Typhoon Krathon slammed into southwestern Taiwan on Thursday, forcing a second day of closures in financial markets, while grounding hundreds of flights and having led to two deaths. Krathon hit land as a much weaker category 1 typhoon around midday in the major port city of Kaohsiung, blowing down trees and street-lights while sending debris flying. As pounding rain, howling winds and storm surges coincide with high tide, the government urged people to stay at home. "It's very powerful," said Chou Yi-tang, a government official in Siaogang district, home to Kaohsiung's airport. "It's been a long time since such a big storm made a landfall here." No major casualties were reported, however, Chou said, adding, "Fortunately people were well prepared this time." Typhoons often hit the east coast facing the Pacific, but Krathon is unusual since it directly hit the west coast, leading Taiwan's media to label it a "weird" storm, and also because it hovered off the coast before reaching land. Shortly after dawn, residents of the city of about 2.7 million began receiving text messages warning them to seek shelter from gusts of more than 160 kph (100 mph), while its port was lashed by record gusts exceeding 220 kph (137 mph). Speaking before the typhoon hit, Mayor Chen Chi-mai, urged people to stay indoors. "If you don't have to, please avoid going out," he told reporters. More than 100,000 homes lost electricity, half of them in Kaohsiung, state-run utility Taipower said. Taipei university student Liao Shian-rong, 24, came to Kaohsiung with some classmates to chase the storm, bringing equipment like barometers to study what he called a once-in-a- lifetime opportunity. "We are being hit by the eyewall now and will enter the eye soon," he said, filming the storm from a hotel lobby. The fire department reported two deaths as the typhoon brought torrential rains across Taiwan, both on the mountainous and sparsely populated east coast, one in a fall while trimming a tree and the other when a vehicle was hit by a rock. Some eastern regions received more than 1.6 m (5.2 ft) of rain, washing cascades of rocks and mud on to roads. The Southern Taiwan Science Park, site of one of the main factories of chipmaker TSMC (2330.TW) , opens new tab, said operations were normal. The typhoon is forecast to slowly work its way up Taiwan's flat western plain and weaken further by Friday, becoming a tropical depression over the central region. All domestic flights were cancelled for a second day, as well as 242 international ones. The north-south high-speed rail line suspended services between central and southern regions until at least early evening. Taiwan's financial markets also closed for a second day. But in Taipei, many shops and malls stayed open, despite squally rain showers. The Kaohsiung government has been particularly cautious in its preparations since the last such storm in 1977, Typhoon Thelma, killed 37 people and devastated the city. In a separate incident, officials in the southernmost county of Pingtung said nine people had died in a hospital electrical fire, with the health ministry working during the typhoon to move patients to other facilities. Sign up here. https://www.reuters.com/world/asia-pacific/taiwan-girds-weakening-typhoon-krathon-shuts-down-second-day-2024-10-03/

2024-10-03 00:29

Biden "discussing" support for Israel on Iran oil strike Pentagon, Israel discuss possible response to Iran's attack Ministers of Gulf Arab states, Iran meet and talk de-escalation OPEC+ capacity could cushion Iranian supply shock Libya's NOC lifts force majeure at oilfields and terminals HOUSTON, Oct 3 (Reuters) - Oil prices surged on Thursday as concerns mounted that a widening regional conflict in the Middle East could disrupt global crude flows. Brent crude futures settled up $3.72, or 5.03%, at $77.62 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled up $3.61, or 5.15%, to $73.71. Brent futures reached an intraday high of $77.89 per barrel, while WTI futures peaked at $73.97 per barrel, both hitting one-month highs. Market fears are rising over the possibility that Israel might target Iranian oil infrastructure, which could provoke retaliation. Asked on Thursday if he would support Israel striking Iran's oil facilities, U.S. President Joe Biden told reporters "we're discussing that." He added: "There is nothing going to happen today." The Pentagon said it was in discussions with Israeli officials about their possible response to Iran's missile attack but declined to offer details. "We are certainly talking to them about their response, but what their response might be, I'm just not going to speculate further on. But we do continue to engage with them," said Pentagon spokesperson Sabrina Singh. Iran is a member of the Organization of the Petroleum Exporting Countries with production of around 3.2 million barrels per day or 3% of global output. "This is going to really test the mettle of the market because up until now the risk to supply has been downplayed, as there has been no disruption, so this could be a game changer," said Phil Flynn, senior analyst for Price Futures Group. There are concerns that such escalation could prompt Iran to block the Strait of Hormuz or attack Saudi infrastructure, as it did in 2019, said Panmure Gordon analyst Ashley Kelty. The strait is a key logistical chokepoint through which a fifth of daily oil supply passes. "Our estimates for Q4 2024 were $75/bbl prior to the recent headline, but if these attacks come to fruition prices could average levels closer to $78-$80/bbl," StoneX analyst Alex Hodes said in a note Thursday. Ministers from Gulf Arab states and Iran attended a meeting of Asian nations hosted by Qatar to discuss de-escalating hostilities between Israel and Iran, three sources told Reuters on Thursday. The Gulf Arab states sought to reassure Iran of their neutrality in the conflict on concerns that further violence could threaten Gulf oil facilities, two of the sources said. CONFLICT DEEPENS Israel's military told residents of more than 20 towns in south Lebanon to evacuate their homes immediately on Thursday as it pressed on with its cross-border incursion and struck Iran-backed Hezbollah targets in a suburb of Beirut. Israeli Prime Minister Benjamin Netanyahu said Iran would pay for its missile attack against Israel on Tuesday while Tehran said that any retaliation would be met with "vast destruction," stoking fears of a wider war. "The intensifying conflict in the Middle East is generating significant supply concern in the global crude market," Rystad Energy’s chief economist, Claudio Galimberti said in a note on Thursday. "The potential for supply disruptions – particularly, but not exclusively from Iran – increases as the fighting intensifies," he added. The National Oil Corp (NOC) lifted the force majeure at all Libyan oilfields and terminals, the state oil company said in a statement on its Facebook page, potentially ending a crisis that has heavily reduced oil output. U.S. crude inventories rose by 3.9 million barrels to 417 million barrels in the week ended Sept. 27, the Energy Information Administration said on Wednesday, compared with Reuters poll expectations of a 1.3 million barrel decline. "Swelling U.S. inventories added evidence that the market is well supplied and can withstand any disruptions," ANZ analysts said in a note. Fears have been tempered by OPEC oil spare output capacity and the fact that global crude supplies have yet to be disrupted by unrest in the region. OPEC has enough spare capacity to compensate for a possible full loss of Iranian supply. Sign up here. https://www.reuters.com/markets/commodities/oil-rises-middle-east-conflict-deepens-gains-capped-by-global-supply-outlook-2024-10-03/

2024-10-02 23:09

NEW YORK, Oct 2 (Reuters) - The U.S. Securities and Exchange Commission said on Wednesday it is appealing a court ruling that restricted its ability to regulate cryptocurrency markets. Wall Street's main securities regulator will ask the 2nd U.S. Circuit Court of Appeals in Manhattan to review a July 2023 decision that the XRP token sold by Ripple Labs on public exchanges did not meet the legal definition of a security. The decision by U.S. District Judge Analisa Torres meant the sales of the token, totaling about $757 million, were not subject to investor protection laws that the SEC enforces. If the appeals court agreed, or defined securities narrowly, it could impede the SEC's ability to police the cryptocurrency exchange Coinbase (COIN.O) , opens new tab and other defendants selling or making markets for newer, non-traditional financial products. Torres also gave the SEC a partial victory, saying another $728 million of XRP sales to institutional investors should have complied with securities laws. She fined Ripple $125 million in August, but put the fine on hold pending an appeal. The SEC had sought $2 billion. Torres' stay would last until the 2nd Circuit ruled, court records show. Ripple can also appeal parts of Torres' rulings that it dislikes. Ripple CEO Brad Garlinghouse said the SEC decision to appeal was "misguided" and "infuriating," but not a surprise. "While we'll fight in court for as long as we need, let's be clear: XRP's status as a non-security is the law of the land today," Garlinghouse said in a post on X. Sign up here. https://www.reuters.com/technology/sec-appeals-decision-that-restricted-its-crypto-oversight-2024-10-02/

2024-10-02 23:08

Oct 3 (Reuters) - Toyota Motor (7203.T) , opens new tab will postpone the start of electric-vehicle production in North America to the first half of 2026 due to design adjustment and slowing EV sales, the Nikkei business daily reported on Thursday. The Japanese automaker recently told suppliers the start date for production of its first battery EV model at its factory in the U.S. state of Kentucky - a three-row SUV - will be delayed by several months, the Nikkei said. Production is now likely to begin in early 2026 rather than late next year, Toyota spokesperson Scott Vazin said. "We've always said it would be late 2025 and it could creep into 2026 and it does look like it's going to creep into 2026," Vazin said. He said Toyota planned to introduce five to seven battery electric vehicle models in the U.S. over the next two years. Supply disruption and governance issues had prompted Toyota to delay the start of U.S. EV production by six months to around June 2026, sources previously told Reuters. The automaker aimed to manufacture electric SUVs under its luxury Lexus brand in North America by 2030 but has scrapped that plan in favour of shipping completed vehicles to the U.S. from Japan, the Nikkei also reported on Thursday. Toyota in February invested $1.3 billion in its Kentucky facility for its electrification effort. Sign up here. https://www.reuters.com/business/autos-transportation/toyota-delay-us-ev-production-2026-amid-slowing-sales-nikkei-reports-2024-10-02/

2024-10-02 23:07

ADP survey: US adds 143,000 private jobs in September Tesla drops on downbeat Q3 vehicle deliveries Nike falls after withdrawing annual revenue forecast Indexes: Dow up 0.09%, S&P 500 up 0.01%, Nasdaq up 0.08% NEW YORK, Oct 2 (Reuters) - The S&P 500 ended little changed on Wednesday, with technology shares gaining but investors nervous about Middle East tensions and more U.S. labor data due this week. Nvidia (NVDA.O) , opens new tab shares rose 1.6%, helping to lift the S&P 500 technology index (.SPLRCT) , opens new tab. However, Tesla (TSLA.O) , opens new tab shares fell 3.5% after the electric carmaker reported third-quarter vehicle deliveries , opens new tab below estimates. Investors monitored Mideast news after Israel and the U.S. vowed to strike back following Iran's attack on Israel on Tuesday. U.S. President Joe Biden said on Wednesday he would not support any Israeli strike on Iran's nuclear sites in response to its missile attack and urged Israel to act "proportionally." Data released early on Wednesday showed U.S. private payrolls increased more than expected in September, further evidence , opens new tab that the labor market is not deteriorating. Investors remained focused on September non-farm payrolls data due on Friday, while U.S. jobless claims data is due Thursday. "We have the jobs report Friday, and then earnings season starts at the end of next week," said Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut. "We're near all-time highs, and we know we have a friendly Fed out there. Before they push stocks to another round of new highs, investors want to hear some positive commentary from companies. People like that the Fed is very dovish and they are just waiting for another reason to push prices higher." The Dow Jones Industrial Average (.DJI) , opens new tab rose 39.55 points, or 0.09%, to 42,196.52. The S&P 500 (.SPX) , opens new tab gained 0.79 points, or 0.01%, at 5,709.54 and the Nasdaq Composite (.IXIC) , opens new tab edged up 14.76 points, or 0.08%, to 17,925.12. The market ended September with strong gains after the Federal Reserve kicked off its monetary policy easing cycle with an unusual 50-basis-point rate cut to shore up the jobs market. The S&P 500 is up 19.7% for the year so far. Odds of a quarter-percentage-point rate reduction at the Fed's November meeting are at 65.7%, up from 42.6% a week ago, the CME Group's FedWatch Tool showed. JPMorgan Chase (JPM.N) , opens new tab and other big banks will kick off S&P 500 third-quarter earnings season on Oct. 11. A strike by 45,000 dockworkers halting shipments at U.S. East Coast and Gulf Coast ports entered its second day on Wednesday with no negotiations scheduled between the two sides, sources told Reuters. The dockworkers' strike is costing the economy roughly $5 billion per day, JPMorgan analysts estimated. Among declining shares, Nike (NKE.N) , opens new tab dropped 6.8% after the athletic footwear and apparel maker withdrew its annual revenue forecast just as a new chief executive is set to take charge. Shares of Humana Inc (HUM.N) , opens new tab fell 11.8% after the health insurer said it expected enrollment in its top-rated Medicare Advantage plans for those aged 65 and above to decrease for 2025. Declining issues outnumbered advancers on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favored decliners. The S&P 500 posted 27 new 52-week highs and two new lows; the Nasdaq Composite recorded 80 new highs and 133 new lows. Volume on U.S. exchanges was 11.81 billion shares, compared with the 12.05 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-dip-middle-east-tensions-mount-jobs-data-tap-2024-10-02/