2025-10-29 06:51
US Fed policy statement due at 1800 GMT Gold climbs nearly 2% Dips may provide chance for central banks to ramp up purchases -analysts Oct 29 (Reuters) - Gold rebounded nearly 2% on Wednesday as investors found the metal attractive after prices fell to a three-week low in the previous session, while the Federal Reserve rate cut decision and Chair Jerome Powell's speech took centre stage. Spot gold was up 1.9% at $4,024.56 per ounce, as of 0218 GMT, after dropping to its lowest since October 6 on Tuesday. Sign up here. U.S. gold futures for December delivery gained 1.4% to $4,039.50 per ounce. "Bargain-hunting could be (supporting gold) because it has lost a bit more than 10% of its value, which makes it attractive again because the underlying gold story is still valid," said Quantitative Commodity Research analyst Peter Fertig. "There might also be some central bank currency reserve managers who started to have a good opportunity to buy a bit more gold (on the dip)," Fertig added. U.S. President Donald Trump began the final leg of his Asia trip in South Korea on Wednesday, optimistic about advancing an unresolved tariff deal with President Lee Jae Myung and striking a trade war truce with Chinese President Xi Jinping. Trump and Xi are set to meet in South Korea on Thursday. "Progress in U.S.-China trade talks continues to sap demand for haven assets such as gold, which extended a pullback as tension eased ... The recent declines may provide an opportunity for central banks to ramp up purchases," ANZ said in a note. Meanwhile, the Fed is widely expected to deliver a 25-bp rate cut at its policy meeting on Wednesday, as investors look to any forward-looking commentary from Chair Powell. Non-yielding gold thrives in a low-interest-rate environment and during times of economic uncertainty. Gold prices have climbed about 52% year-to-date, reaching an all-time peak of $4,381.21 on October 20, bolstered by geopolitical and economic uncertainties, rate-cut bets and sustained central bank buying. Spot silver gained 2.8% to $48.37 per ounce, platinum was up 1.6% at $1,611.66 and palladium rose 1.6% to $1,415.69. https://www.reuters.com/world/india/gold-steadies-ahead-fed-verdict-trade-optimism-limits-upside-2025-10-29/
2025-10-29 06:51
U.S. president makes final stop on five-day Asia trip Holds talks on trade, security with South Korean President Lee 'Dramatic progress' helped break tariff impasse, Seoul says Trump expects to cut China tariff related to illicit fentanyl trade GYEONGJU, South Korea, Oct 29 (Reuters) - Donald Trump and South Korean President Lee Jae Myung finalised details of their fraught trade deal at a summit in South Korea on Wednesday, and the U.S. president also sounded an optimistic note about a looming summit with China's Xi Jinping. “We made our deal, pretty much finalised it," Trump said at a dinner with Lee and other regional leaders on the sidelines of an Asia Pacific forum. Sign up here. The allies unveiled a deal in late July under which Seoul would avoid the worst of U.S. tariffs on its imports by agreeing to pump $350 billion of new investments into the United States in return for lower tariff rates. But talks over the structure of those investments had been deadlocked and both sides had played down expectations for a deal during Trump's visit. "Prospects were not bright even last night, and there was dramatic progress on the day," Kim Yong-beom, South Korea's top presidential policy chief, told reporters, without providing further details. AGREEMENT ON INVESTMENTS IN US Trump and Lee agreed that Seoul can split its promised $350 billion investment fund into $200 billion in cash to be paid in instalments and capped at $20 billion per year, Lee's aides said. The other $150 billion is to be spent on investments in shipbuilding, which South Korea has promised to help Trump restore. The South Koreans said the two sides agreed to split profits 50/50 before the initial investments are recouped, and to only pursue commercially viable projects. U.S. Commerce Secretary Howard Lutnick would head an investment committee to assess potential projects. The White House did not immediately respond to a request for comment on the details of a Korea trade deal, which needs to be ratified by South Korea's parliament. Arriving from Tokyo hours after North Korea test-fired a nuclear-capable cruise missile, Trump was given a lavish welcome by Lee in Gyeongju, a historic city hosting this year's Asia-Pacific Economic Cooperation forum. His talks with Xi are set for Thursday in the port city of Busan. TRUMP PREDICTS 'GOOD OUTCOME' FROM XI TALKS Speaking to reporters en route to South Korea, Trump dismissed the North Korean missile test and said he was squarely focused on his meeting with Xi, leader of the world's second-largest economy. "I think we're going to have a very good outcome for our country and for the world, actually," Trump said. He added that he expects to reduce U.S. tariffs on imports of Chinese goods in exchange for a commitment from Beijing to curb exports of fentanyl precursor chemicals. The United States could halve the levies of 20% on Chinese goods it now charges in retaliation for the export of such chemicals, the Wall Street Journal said. China's foreign ministry said the meeting of the two leaders would "inject new momentum into the development of U.S.-China relations", and Beijing was ready to work together for "positive outcomes". Skipping the main APEC summit, Trump attended a dinner on Wednesday with Lee and other countries' leaders. He was due to meet Xi before departing on Thursday. Negotiators from the world's top two economies hashed out a framework on Sunday for a deal to pause steeper American tariffs and Chinese rare earths export controls, U.S. officials said. The news sent stocks to record peaks. Beijing has been more circumspect about the prospect of an agreement, but in a possible sign of thawing, China bought its first cargoes of U.S. soybeans in several months, Reuters reported exclusively on Wednesday. EXTRAVAGANT WELCOME Lee wooed Trump with gifts and praise, presenting him with a gold crown and the "Grand Order of Mugunghwa" medal, South Korea's highest decoration. At the start of a working lunch topped off with a "golden dessert", Lee pledged to spend more on defence, seeking to head off a Trump concern that U.S. allies are not pulling their weight militarily. He also asked that the U.S. allow the country to reprocess nuclear fuel to power submarines that could track North Korean and Chinese vessels for longer periods. Seoul is barred from reprocessing without U.S. consent, under a pact between the countries. Trump pledged to help "straighten out" South Korea's problems with its nuclear-armed northern neighbour. The two are still technically at war after their 1950-53 war ended in an armistice, not a peace treaty. Trump, who has repeatedly called for a meeting with reclusive North Korean leader Kim Jong Un to take place during this trip, said on Wednesday the timings would not work out. Lee's aide, Kim, said a factsheet on South Korea's agreements with the U.S. on security and trade would be ready within several days, while a memorandum of understanding that contains details of the trade agreement was close to complete. In contrast to the official welcome, hundreds of protesters gathered near the summit venue for anti-Trump rallies and there were some scuffles with police. "World leaders and governments are busy flattering Trump and displaying every possible act of diplomatic charm just to persuade him to lower U.S. tariffs by a few percent," said Kwon Young-guk, a former presidential candidate from a minor South Korean left-wing party attending the rally. "How absurd is it." https://www.reuters.com/world/china/trump-heads-south-korea-face-trade-talks-north-korean-missiles-2025-10-28/
2025-10-29 06:50
HANOI, Oct 29 (Reuters) - Floods triggered by record heavy rains have killed at least nine people and left five others missing in central Vietnam, the government said on Wednesday. Six of the fatalities were in Danang, home to one of the country's most popular beaches, and the ancient town of Hoi An, the government said in a statement. Sign up here. The floods have also inundated more than 103,000 houses, mostly in the country's top tourist sites of Hue and Hoi An, the government's disaster agency said in a separate report. Vietnam is prone to often deadly storms and flooding that cause widespread property damage, especially during the storm season from June until October. Heavy rains continue to lash the UNESCO-listed former imperial capital Hue and the ancient town of Hoi An, the agency said, after rainfall in the area hit a record high in the 24-hour period ending late on Monday, exceeding 1,000 millimetres. Photos circulating on state media showed that much of Hoi An remained inundated by flood water, with several houses submerged up to their roofs. In Hue, 32 out of 40 communes had been hit by flood waters with depths of 1-2 metres. In nearby Danang, water in most of its reservoirs has reached maximum depths, while water levels in its rivers also continued to rise, the government said. "Widespread flooding continues in low-lying areas along rivers and in urban areas, with high risks of flash floods and landslides in mountainous areas of Danang," it said. Landslides have occurred in several areas, cutting off traffic and knocking down power grids, the disaster agency said, adding that the country's state-run railway firm hasn't yet been able to resume services between capital Hanoi and business hub Ho Chi Minh City following a suspension on Tuesday. Heavy rain will continue in central Vietnam over the next two days, with rainfall in some areas staying above 400 millimetres from early Wednesday until late Thursday, according to the government's weather forecast agency. https://www.reuters.com/world/asia-pacific/floods-kill-4-leave-5-missing-central-vietnam-2025-10-29/
2025-10-29 06:26
COFCO bought 180,000 tons of U.S. beans for Dec/Jan shipment China's first purchases of U.S. soybeans from autumn harvest BEIJING/SINGAPORE, Oct 29 (Reuters) - China's state-owned COFCO bought three U.S. soybean cargoes, two trade sources said, the country's first purchases from this year's U.S. harvest, shortly before a summit of leaders Donald Trump and Xi Jinping. As the two nations battle over trade tariffs, the lack of Chinese buying has cost U.S. farmers billions of dollars in lost sales, after they largely supported Trump in his campaigns for president. Sign up here. Although COFCO's deal for December-January shipment of about 180,000 metric tons of soybeans was China's first such buy in months, traders do not expect a significant resumption in demand for U.S. cargoes after recent large South American purchases. COFCO did not immediately respond to a Reuters request for comment. "COFCO has proceeded to purchase U.S. beans even before the two leaders have reached a trade agreement," said a trader at an international trading company that supplies Chinese crushers. "The volumes booked by COFCO are not that large, three cargoes for now." Benchmark Chicago soybean futures prices jumped this week to their highest in 15 months, rebounding from recent five-year lows on hopes for a U.S.-China trade deal. The prime U.S. soybean export season normally runs from October through January, but China has shunned soybeans from the autumn U.S. harvest this year, amid protracted trade friction with Washington, turning instead to South American suppliers. Reuters was the first to report China's purchase of three cargoes. LACKLUSTRE DEMAND China, which takes more than 60% of world soybean imports, has nearly completed booking cargoes from Brazil and Argentina through November, with limited purchases expected for December and January ahead of the Brazilian harvest. "U.S. suppliers have missed out on most of oilseed crushing business," said a second oilseed trader, who expected China to need about 5 million tons of shipments in December and January, for which market conditions favour Brazil. U.S. soybeans, which traded at a steep discount to Brazilian cargoes in recent weeks due to subdued Chinese demand, have strengthened this week and are now priced at parity at about $2.45 per bushel above Chicago futures, traders said. Private Chinese buyers tend to prefer Brazilian soybeans for their higher protein content, which typically brings a premium over U.S. soybeans, said Jeffrey Xu, general manager of Shanghai-based OCI, a soybean consultant and two other traders. Still, China could take about 8 million tons of U.S. soybeans for its strategic reserves in the period from December to May, traders said, buying through state-owned enterprises such as Sinograin, which would be worth roughly $4 billion. https://www.reuters.com/world/asia-pacific/china-buys-three-us-soybean-cargoes-ahead-trump-xi-meeting-sources-say-2025-10-29/
2025-10-29 06:22
FRANKFURT, Oct 29 (Reuters) - German chemicals maker BASF (BASFn.DE) , opens new tab on Wednesday said quarterly adjusted operating profit slipped 4.8% but came in slightly better than expected as higher sales volumes were partly offset by negative currency effects and lower prices. Third-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 1.54 billion euros ($1.80 billion), when including the coatings business that it agreed to sell this month. Sign up here. That slightly surpassed average market expectations for 1.5 billion euros, based on an analyst consensus posted on the group's website. BASF said it had to mark down prices in areas such as basic chemicals, materials for industrial use and agricultural products, with only its Surface Technologies and Nutrition & Care units being able to charge higher prices. "Customer buying behaviour in almost all industries and regions remained cautious," said CEO Markus Kamieth. BASF adjusted its full-year guidance to account for the coatings unit that is to be sold, predicting EBITDA before special items of between 6.7 billion and 7.1 billion euros. Kamieth has embarked on a push to exit or separate businesses that are not closely integrated and physically connected within the group's sprawling chemical plants across the globe. BASF moved this month to sell a 60% stake in its coatings business to private equity firm Carlyle and the Qatar Investment Authority, for a 5.8 billion euros cash payment. That has enabled it to bring a previously announced share buyback programme forward. https://www.reuters.com/business/basfs-q3-operating-profit-beats-consensus-better-volumes-2025-10-29/
2025-10-29 06:21
MUMBAI, Oct 29 (Reuters) - The Indian rupee closed modestly higher on Wednesday as likely central bank intervention supported the currency in face of month-end dollar bids, while traders turned their focus to the upcoming U.S. Federal Reserve policy decision. The rupee had declined to 88.3450 early in the session, but traders said that the Reserve Bank of India stepped in to shore up the local currency. It closed at 88.1950, up slightly from its previous close. Sign up here. Asian currencies were mixed on the day, with the offshore Chinese yuan perched near a one-month peak on growing expectations of a U.S.-China trade deal. Indian officials, too, have pointed to ongoing negotiations with Washington on a bilateral trade agreement. A senior central bank official on Wednesday said that the rupee's exchange rate is market determined and hence is not a policy tool to fight tariffs. Weakness in a currency can help dent the impact of trade levies by making exports cheaper. The rupee has declined 3% so far this year, and hit a record low of 88.80 last month. Meanwhile, the focus is on a widely anticipated rate cut by the Fed later in the day, with traders awaiting cues from Chair Jerome Powell's commentary and any changes to the central bank's quantitative tightening policy. "Given the lack of jobs data we certainly expect Powell to attempt to remain balanced and would not want to shift market expectations at this juncture only for updated jobs data to contradict that shift," MUFG said in a note. The dollar index was last at 98.8, up 0.2% on Wednesday. Dollar-rupee far forward premiums were modestly lower, with the 1-year implied yield down 2 basis points at 2.24%. Buy/sell swaps conducted by state-run banks over recent sessions, coupled with bias towards a dovish Fed is likely to keep forward premiums in check in the near term, a trader at a Mumbai-based bank said. https://www.reuters.com/world/india/rupee-traders-eye-rbi-flows-before-fully-priced-fed-rate-cut-2025-10-29/
