2026-02-06 06:13

Feb 6 (Reuters) - European stainless steel producer Aperam (APAM.AS) , opens new tab reported fourth-quarter core earnings slightly below market expectations on Friday, hampered by low steel prices and continued weak demand in Europe. Adjusted earnings before interest, taxes, depreciation and amortisation were 67 million euros ($79 million) in the quarter, while analysts polled by LSEG had forecast 68.4 million euros on average. Sign up here. That was more than 40% lower than in the same period in 2024. Price pressure, seasonality and annual maintenance in Brazil were major drivers for the profit decline, along with low demand in Europe and a weak oil and gas industry, the company said. Its stainless and electrical steel business took the brunt of it, with a 74% year-on-year core profit contraction in the fourth quarter. Still, Aperam CEO Sud Sivaji said the core earnings were solid, as the company "gears up to positive momentum" on the back of European trade defence measures that should start to yield results in the second half of 2026. The group also said its core earnings would rise in the first three months of 2026, compared to the final quarter of last year. EU MEASURES SET TO BOOST PRICES Aperam's results were weighed down by a contraction of stainless and electrical steel prices in 2025. For the fourth quarter, company data showed a 16% drop on the year in the average selling price. But this year, European steelmakers are set to benefit from increased protection in the European Union thanks to the recently enacted Carbon Border Adjustment Mechanism (CBAM) and the European Commission's proposal to cut import quotas. Analysts have said this should bring a greater price acceleration in 2026. The CBAM, in place since January 1, is the EU's tool to levy carbon-intensive goods entering the bloc to even the playing field for domestic producers, who have to adhere to stricter environmental criteria. https://www.reuters.com/business/steelmaker-aperams-core-profit-slightly-lags-market-view-2026-02-06/

2026-02-06 05:45

A look at the day ahead in European and global markets from Gregor Stuart Hunter. It's Jobs Friday and there is no jobs report. With non-farm payrolls delayed by a U.S. government shutdown - again - and a selloff on Wall Street going global, markets are anxious. Sign up here. Traders are increasingly betting the Federal Reserve might ease policy at its next meeting, following fresh signs of economic stress in the labour market. A survey from global outplacement firm Challenger, Gray & Christmas showed layoffs announced by U.S. employers surged in January to the highest level for the month in 17 years. Though pricing implies a strong possibility the Fed will remain on hold, funds futures are pricing a 22.7% probability of a 25-basis-point cut at the U.S. central bank's next two-day meeting that ends on March 18, compared with a 9.4% chance a day earlier, according to the CME Group's FedWatch tool. For now, a selloff for global stocks is into its third day and emerging markets are looking shaky. Korean shares led the way after an early 5% dive in the KOSPI triggered a trading halt. It wasn't all bad though, with Japan's Nikkei 225 (.N225) , opens new tab eking out a 0.6% gain as stocks rally into Sunday's election. In early European trades, pan-region futures were last down 0.1% and FTSE futures were down 0.6%, though German DAX futures were up 0.1%. In an indication that investor confidence is still holding up, two of the leading speculative trades of the year both found a bottom during the Asian session. After plummeting through the $70,000 mark on Thursday, bitcoin has overturned a 4.9% decline to trade 4.2% higher at $65,778.90. Not to be outdone, after a 19% plunge on Thursday, silver reversed a 10% decline and is now trading up a placid 3.5% at $73.71. There's been little respite for big tech, however. Amazon (AMZN.O) , opens new tab shares tumbled 15% in after-hours trading after it projected on Thursday a surge of more than 50% in capital expenditures this year. Key developments that could influence markets on Friday: Earnings announcements: Philip Morris International, Cboe Global Markets, Societe Generale, Telenor Economic data: Germany: Industrial output and trade balance for December UK: Halifax house prices for January France: Reserve assets and trade balance for January Debt auctions: UK: 1-month, 3-month and 6-month government debt https://www.reuters.com/world/china/global-markets-view-europe-2026-02-06/

2026-02-06 05:15

Newly created subsidiary of Vingroup wins bid for major wind project PNE had invested millions of dollars, was asked unexpected financial guarantees, sources say Vietnam seeks to boost national champions in new growth model HANOI, Feb 6 (Reuters) - Vietnam's authorities selected a newly created subsidiary of real estate conglomerate Vingroup (VIC.HM) , opens new tab to develop the first phase of one of the country's largest offshore wind power projects, excluding Morgan Stanley-backed German renewable firm PNE (PNEGn.DE) , opens new tab which said the decision came as a surprise. It is the latest setback for foreign investors in Vietnam's energy sector, after Hanoi last year retroactively cut subsidies for several renewable companies. Diverging views over electricity prices and deadlines are also weighing on foreign investment in the country's nascent liquefied natural gas and nuclear sectors. Sign up here. The decision is a new win for Vingroup, Vietnam's largest firm by market capitalisation, which is expanding amid supportive government policies. From its core real estate business it has branched out into tourism, education and healthcare. It owns Nasdaq-listed electric vehicle maker VinFast (VFS.O) , opens new tab and last year set up companies in new sectors, including railways, steel, energy, entertainment and space. PNE INVESTED MILLIONS OF DOLLARS PNE planned to invest $4.6 billion in the 2,000 megawatt offshore wind project. Vietnam wants to have 6,000 megawatts of offshore wind capacity by 2030-2035 from zero now. The People's Committee of Gia Lai province approved the bid from Vingroup's VinEnergo for the first 750-megawatt phase of the project with an investment of 48.3 billion dong ($1.9 million), it said in a note earlier this week, without citing PNE and another Vietnamese bidder who were not selected. "We have taken note of this decision with surprise. We are currently reviewing the reasoning and will then decide about the next steps," PNE told Reuters. VinEnergo has not developed any offshore wind farm yet, but has won other projects in Vietnam since its establishment in March. Gia Lai People's Committee and Vingroup did not respond to requests for comment. PNE has worked on the project since 2019, conducting feasibility studies and wind tests, two people familiar with the operations said. The sources declined to be named as they were not authorised to speak on the matter. One said the company had already invested millions of dollars. PNE declined to comment on costs. The sources said Vietnamese authorities raised unexpected concerns about PNE's financial commitment, with one saying the firm was asked to preemptively deposit the investment money in Vietnamese accounts as a guarantee. Global investor Morgan Stanley Infrastructure owns a majority stake in PNE. The German firm has opened an office in Vietnam and signed with Vietnamese authorities a memorandum of understanding on the pricing of electricity, it said on its website. GOVERNMENT SUPPORTS NATIONAL CHAMPIONS Multiple Western wind companies have quit Vietnam in recent months as part of global reorganisations, including Norway's Equinor (EQNR.OL) , opens new tab, Denmark's Orsted (ORSTED.CO) , opens new tab and Italy's Enel (ENEI.MI) , opens new tab. Vietnam's top leader, To Lam, is pushing a new growth model supporting national champions, in a shift that at times has generated frictions with foreign investors, which have been the backbone of Vietnam's decades-long economic boom. Vingroup has been a major beneficiary of the new policy. Its shares surged more than 700% last year. The Southeast country is a major hub for export-oriented foreign multinationals' industrial operations. Growing electricity demand has occasionally caused blackouts as the country struggles to significantly boost power generation. It has often met additional needs burning more coal, despite pledges to reduce its use. ($1 = 25,920.0000 dong) https://www.reuters.com/sustainability/climate-energy/germanys-pne-loses-bid-vietnam-wind-project-new-blow-foreign-investors-2026-02-06/

2026-02-06 05:15

Moody's lowers Indonesia credit rating outlook JKSE slides 3%; rupiah slips South Korea's KOSPI down 1.4% Thailand election, Japan snap vote on February 8 Feb 6 (Reuters) - South Korean shares ended lower on Friday as investors continued to retreat from technology stocks, while Indonesian equities fell 3% after Moody's cut the country’s credit outlook, adding pressure on Southeast Asia’s largest economy. The MSCI index of emerging Asian equities (.MIMS00000PUS) , opens new tab slipped 0.6% and was set for its worst week since Nov. 21 with a 2.1% loss. The regional IT gauge (.MIMS0IT00PUS) , opens new tab has fallen nearly 3% this week, its steepest drop since mid-December. Sign up here. South Korea's KOSPI index (.KS11) , opens new tab fell 1.4%, ending the week 2.6% down after snapping a six-week winning streak with chipmakers Samsung Electronics (005930.KS) , opens new tab and SK Hynix (000660.KS) , opens new tab falling 0.4% each on Friday. Markets were jolted this week after AI firm Anthropic unveiled a new legal tool for its Claude chatbot, raising worries over broader disruption to the information technology and software services sector. "With U.S. tech wobbling, sentiments tend to trickle over to Asian tech as well, particularly after a strong run that left positioning looking stretched," said Zavier Wong, market analyst at eToro. "What we're seeing now feels more like investors de-risking and locking in gains rather than a sign that the broader tech theme is breaking down." In Southeast Asia, Indonesia's Jakarta Composite Index (.JKSE) , opens new tab dropped as much as 3% and the rupiah weakened to 16,888 per U.S. dollar, its lowest point since January 22. The benchmark was set to close the week down more than 5%, extending last week's near 7% slide. Investor confidence in Indonesia has weakened due to growing concerns around policy uncertainty under President Prabowo Subianto, including a widening fiscal deficit and central bank independence. Foreign investors pulled $1 billion from equities in 2025, according to exchange data. Outflows have accelerated since mid-last week after MSCI warned of a potential downgrade to frontier-market status and Moody's downgraded the country's credit rating outlook on Thursday. "In the near-term, onshore financial markets are likely to witness knee-jerk weakness due to the outlook change, with much onus on the domestic policy response thereafter," DBS analysts wrote. "An outlook change doesn't carry immediate changes in rating-sensitive investment mandates, although there might be lower appetite to build additional exposure, besides a higher preference for shorter-tenor papers." Stocks in Malaysia (.KLSE) , opens new tab, the Philippines (.PSI) , opens new tab and Taiwan (.TWII) , opens new tab were largely unchanged, while Singapore shares (.STI) , opens new tab dropped 0.8% and Thailand's SET Index (.SETI) , opens new tab rose 0.5%. Among currencies, the South Korean won hovered around 1,470.60 a dollar, its weakest level in more than two weeks before paring losses, while the Thai baht appreciated around 0.3%. Thailand is set to hold a general election on Sunday, the same day Japan votes in a snap election called by Prime Minister Sanae Takaichi. HIGHLIGHTS: ** Yield on Indonesia's 10-year benchmark bonds at 6.317% ** Malaysia could raise 2026 economic outlook, AI boom to drive exports, officials say ** Singapore budget may be less generous amid resilient growth ** Thai PM Anutin's gamble on nationalism to be tested in close election https://www.reuters.com/world/china/tech-led-selloff-drags-asian-stocks-indonesia-tumbles-moodys-outlook-cut-2026-02-06/

2026-02-06 05:14

JOHANNESBURG, Feb 6 (Reuters) - South Africa said on Friday that its trade minister had signed a framework economic partnership agreement on a visit to China, which it described as a step towards securing duty-free access to the Chinese market for South African exports. Africa's biggest economy is seeking to boost exports amid a tariff row with the United States, its second-largest bilateral trading partner after China. Sign up here. U.S. President Donald Trump imposed a 30% tariff on South African exports to the U.S. in August, the highest rate in Sub-Saharan Africa. South Africa's trade ministry said in a statement that Minister Parks Tau and his Chinese counterpart Wang Wentao had signed a "Framework Agreement on Economic Partnership for Shared Prosperity". The agreement will be followed by an "Early Harvest Agreement" by the end of March 2026, which will then see China provide duty-free access to South African exports, the statement added. China said last June, after Trump had started announcing tariffs on countries around the world, that it would eliminate all tariffs applied to the 53 African states with which it has diplomatic relations. East Africa's biggest economy Kenya announced a preliminary trade deal with China last month. Deepening trade ties between South Africa and China would create opportunities for South African businesses seeking to enter the Chinese market, particularly in sectors like mining and agriculture, South Africa's trade ministry said. "We will negotiate with a view to create the necessary safeguards built into the agreement so as to protect South Africa's industrial capacity," Tau said. China has invited South Africa to an event to promote investment opportunities in South Africa's steel industry. "We look forward to attracting even more Chinese investment into South Africa, and also introducing many South African products into the Chinese market," Tau said. https://www.reuters.com/world/asia-pacific/south-africas-trade-minister-signs-economic-partnership-agreement-china-visit-2026-02-06/

2026-02-06 05:13

HONG KONG, Feb 6 (Reuters) - China's yuan held a soft tone on Friday, but remained on track for its longest winning streak against the dollar in nearly 13 years buoyed by strong exports. By 0355 GMT, the yuan was 0.05% lower at 6.9396 to the dollar after trading in a range of 6.9390 to 6.9418. Sign up here. Its offshore counterpart traded at 6.9388 yuan per dollar , up about 0.05% in Asian trade. The yuan is now up 0.2% against the dollar this week, on track for its eleventh straight week of appreciation, the longest winning streak since early 2013. Analysts attributed the yuan's resilience to a slew of positive factors, including a weak dollar, robust exports and seasonal demand. "The FX conversions driven by favourable trends and seasonal holiday factors continue to support the RMB exchange rate," analysts at ICBC said in a note. However, the pace of appreciation may slow against the backdrop of short-term rising U.S. dollar volatility, holiday market closures and quieter trading activity, they said. Prior to Friday's market open, the People's Bank of China set the midpoint rate at 6.9590 per dollar, 73 pips weaker than a Reuters estimate and easing further from the 32-month high set earlier this week. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day. Meanwhile, the CFETS U.S. Dollar Lending Capital Sentiment Index (.CFSUSDSMI) , opens new tab, which measures onshore dollar liquidity conditions, hit the tightest level since August 2023 this week. Some traders attributed the tightness to onshore institutions needing to wire money offshore to meet margin calls amid recent volatility in precious metal markets. The dollar index , which tracks the greenback against six major currencies, fell 0.1% to 97.85. The dollar is now poised for its strongest weekly performance since November as a rout in gold and silver, as well as stocks driven by AI-spending concerns, rattled investors. Key onshore vs offshore levels: LEVELS AT 03:54 GMT GMT https://www.reuters.com/world/asia-pacific/yuan-heads-longest-weekly-winning-streak-against-dollar-13-years-2026-02-06/