2024-05-03 12:27

May 3 (Reuters) - TC Energy (TRP.TO) New Tab, opens new tab beat first-quarter profit estimates on Friday as strong energy demand boosted the pipeline operator's transport volumes of oil and gas. Crude demand in the U.S., the largest importer of Canada's oil and gas, rose in the first quarter according to the U.S. Energy Information Administration, benefiting Canadian energy firms. Total earnings from TC Energy's pipeline segments came in at C$2.27 billion ($1.66 billion), compared with C$2.17 billion last year, largely on an income jump of 80% in its liquids pipeline. This was primarily driven by the Keystone pipeline, which achieved 96% "operational reliability", TC Energy said. The Calgary, Alberta-based company, best known for its Keystone oil pipeline, is undergoing an overhaul and said last year it would spin off its liquids business to focus on transporting natural gas - a move to raise money to repay its debt. "We'll seek to maximize the value of our assets ... and continue our deleveraging path by advancing our asset divestiture program," CEO Francois Poirier said in a statement on Friday. TC Energy's U.S. natural gas pipeline system saw daily average flows rise 5% in the quarter, but the segment's earnings fell 3.3%. "The company's assets continue to perform well...(but) market will continue to instead focus on the execution of the deleveraging plan, construction of major projects and the impact of the South Bow spin-off," RBC Capital Markets analysts said in a note. The company posted an adjusted profit of C$1.24 per share for the quarter ended March 31, compared with analysts' average estimate of C$1.14 per share, according to LSEG data. Additionally, the company said its Mexico Southeast Gateway pipeline, a 1.3 bcfpd offshore natural gas pipeline, has completed more than 70% of its deepwater pipe installation. ($1 = 1.3663 Canadian dollars) Sign up here. https://www.reuters.com/business/energy/pipeline-operator-tc-energy-beats-first-quarter-profit-estimates-2024-05-03/

2024-05-03 12:21

MUMBAI, May 3 (Reuters) - India's foreign exchange reserves (INFXR=ECI) New Tab, opens new tab fell for a third consecutive week and stood at a seven-week low of $637.92 billion as of April 26, according to data from the central bank on Friday. The reserves fell by $2.41 billion in the reported week, after falling by a total of $8.2 billion over the previous two weeks. The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee. India's improving trade deficit, inflows into bonds and reduced pressure on the rupee in the offshore market have reduced the need for the RBI to intervene aggressively in the foreign exchange market, Reuters reported. Changes in foreign currency assets are caused by the RBI's intervention as well as the appreciation or depreciation of foreign assets held in the reserves. Foreign exchange reserves also include India's reserve tranche position in the International Monetary Fund. For the week to which the foreign exchange data pertains, the rupee traded in a range of 83.2525 to 83.4450 against the dollar, and had risen 0.2%. The currency settled at 83.4225 on Friday and logged a marginal weekly loss. FOREIGN EXCHANGE RESERVES (in million U.S. dollars) --------------------------------------------------------- April 26 April 19 2024 2024 --------------------------------------------------------- Foreign currency assets 559,701 560,860 Gold 55,533 56,808 SDRs 18,048 18,034 Reserve Tranche Position 4,639 4,631 ---------------------------------------------------------- Total 637,922 640,334 ---------------------------------------------------------- Source text: (https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx New Tab, opens new tab) Sign up here. https://www.reuters.com/world/india/indias-foreign-exchange-reserves-drop-seven-week-low-2024-05-03/

2024-05-03 12:06

LONDON, May 3 (Reuters) - Sterling rose on Friday against a weakening dollar ahead of U.S. jobs data due later in the day, while local elections in Britain have left the currency undisturbed. Markets are focusing on U.S. nonfarm payrolls data due at 1230 GMT for clues on when the Federal Reserve might cut rates after Fed Chair Jerome Powell told reporters this week that interest rates might have to remain elevated for longer but shot down talk of raising them again. In Britain, the opposition Labour Party won a parliamentary seat in Blackpool South and control of several councils, inflicting heavy losses on the governing Conservatives. The thumping victory, which set the tone for two days of local results before a national election this year, left sterling undisturbed. "There hasn't been much of a reaction in the pound to the results of yesterday's elections in England and Wales," said Jane Foley, head of forex strategy at Rabobank. "The ruling Tory party has not fared well, but this has not come as a surprise. While cable is pushing higher today, this is the result of a broadbased fall in the U.S. dollar." The pound was last 0.15% higher against the dollar at $1.2555. After payrolls data, markets will be looking to the Bank of England's meeting next week for clues on when its policy easing could begin, Foley added. The BoE is widely expected to keep interest rates unchanged at 5.25% on Thursday, but with inflation slipping back towards target, a rate cut at the following meeting might be put on the table. Markets see now a 65% chance of a BoE cut in June, according to LSEG data. In the meantime, British services companies reported the strongest upswing in activity in almost a year during April, despite a new surge in cost pressures, according to a survey that will be watched by BoE policymakers. The S&P Global UK Services Purchasing Managers' Index (PMI) rose in April to 55.0, its highest level since May 2023 and up from a preliminary reading of 54.9. Readings above 50 represent expansion. Against the euro, the pound was little changed at 85.60 pence . Sign up here. https://www.reuters.com/markets/currencies/sterling-shrugs-off-local-election-focus-us-payrolls-data-2024-05-03/

2024-05-03 11:40

NEW YORK, May 3 (Reuters) - A gauge of global stocks rallied while Treasury yields fell on Friday after a U.S. payrolls report was softer than anticipated, easing concerns the Federal Reserve would keep interest rates higher for longer. Nonfarm payrolls rose by 175,000 last month, the lowest since October 2023, and short of the 243,000 estimate of economists polled by Reuters. The 3.9% annual change in average hourly earnings was the smallest since May 2021 and continued a steady decline toward the mid-3% range, which policymakers feel is consistent with their 2% inflation target. Recent data on inflation and the labor market had fueled concerns the Fed could would be forced to keep rates higher for longer than the market was anticipating, or even raise rates again. But at the end of its policy meeting on Wednesday, Fed Chair Jerome Powell the next move in rates would be down, seeing an unlikely chance of a rate hike. "The combination of how Powell characterized the committee's stance on hikes relative to the data they were getting and then today's job reports, which was good but not super worrisome, especially on the wage side, it's setting up for kind of what we thought we had at the end of last year," said Scott Ladner, chief investment officer at Horizon Investments in Charlotte, North Carolina. On Wall Street, U.S. stocks rallied, with each of the three major indexes up more than 1% and the Nasdaq leading the advance with a jump of about 2%. Tech was the top performing of the 11 major S&P sectors, getting an additional boost from a jump of about 5.97% in Apple (AAPL.O) New Tab, opens new tab, after the iPhone maker reported its quarterly earnings and announced a record $110 billion stock buyback plan. Of the 397 companies in the S&P 500 that have reported earnings through Friday morning, 76.8% have topped analyst expectations, according to LSEG data, compared with the 67% beat rate since 1997 and the 79% over the past four quarters. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab rose 450.02 points, or 1.18%, to 38,675.68; the S&P 500 (.SPX) New Tab, opens new tab gained 63.59 points, or 1.26%, to 5,127.79; and the Nasdaq Composite (.IXIC) New Tab, opens new tab gained 315.37 points, or 1.99%, to 16,156.33. For the week, the S&P 500 gained 0.55%, the Nasdaq rose 1.43%, and the Dow climbed 1.14%. The Russell 2000 small cap index rose 1.56% Treasury yields fell, along with the dollar, after the payrolls report as investors increased expectations for a rate cut this year from the Fed in September, with markets pricing in a 66.8% chance for a cut of at least 25 basis points (bps), up from 61.6% in the prior session, according to CME's FedWatch Tool New Tab, opens new tab. The yield on benchmark U.S. 10-year notes dropped 6.1 basis points to 4.51%, from 4.571% late on Thursday while the 2-year note yield, which typically moves in step with interest rate expectations, fell 6.5 basis points to 4.8119%, from 4.877%. The 10-year was down nearly 17 basis points on the week, its biggest weekly drop since mid-December while the 2-year was down about 19 basis points, its biggest weekly drop since early January. MSCI's gauge of stocks across the globe (.MIWD00000PUS) New Tab, opens new tab rose 8.67 points, or 1.14%, to 769.19 and was up 0.91% on the week, on pace for its second straight weekly gain. In Europe, the STOXX 600 (.STOXX) New Tab, opens new tab index closed up 0.46%, while Europe's broad FTSEurofirst 300 index (.FTEU3) New Tab, opens new tab ended 8.84 points, or 0.44%, higher. Against the Japanese yen , the dollar weakened 0.48% at 152.89 while Sterling strengthened 0.1% to $1.2547. The greenback has fallen more than 3% against the yen on the week, its biggest weekly percentage decline since late November. The yen continued its recovery from 34-year lows, capping a tumultuous week that saw suspected intervention from Japanese authorities on two occasions. Traders suspect the authorities stepped in on at least two days this week and data from the Bank of Japan suggests Japanese officials may have spent roughly $60 billion to defend the beleaguered yen, leaving trading desks across the globe on continued watch for further moves by the central bank. In commodities, oil prices fell and were on course for their steepest weekly loss in three months following the jobs report. U.S. crude settled down 1.06% to $78.11 a barrel and Brent settled at $82.96 per barrel, down 0.85% on the day. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1pix-2024-05-03/

2024-05-03 11:34

KYIV, May 3 (Reuters) - Ukraine's central bank on Friday forecast an average national electricity deficit of about 5% this year and next following the latest Russian attacks on Ukraine's power sector. Over recent weeks, Russia has ramped up missile and drone strikes, damaging most of Ukraine's thermal power plants along with other power infrastructure. The Ukrainian power system had already been weakened during the first winter of Russia's full-scale invasion, which began in February 2022. After the latest wave of bombardments, Ukraine lost about 80% of its thermal power generation and around 35% of its hydroelectric capacity, officials have said. Scheduled electricity cut-offs have been introduced in several regions, and Ukraine had to rely on imports from its Western neighbours to meet demand during peak consumption hours. State energy trader 'Ukraine's Energy Company' said the country imported 225,000 megawatts of electricity in April, the highest volume so far this year. However, the full impact has not been felt nationwide yet as consumption is relatively low because of mild spring weather. The central bank expected a more significant electricity deficit from the second quarter of 2024 due to lower water levels for hydropower stations and scheduled repairs at nuclear power stations. "Going forward the electricity deficit will grow with the increase in consumption in summer and during the heating season," it said in a statement. Even accounting for imports and partial restoration of generating capacity, the central bank expected a deficit of between 5% to 7% for the rest of the year. In peak consumption hours the deficit might reach 25-30%. The deficit will remain in 2025 with a nationwide average of 7% in the first quarter before decreasing to about 3% later in the year. Sign up here. https://www.reuters.com/world/europe/ukraine-central-bank-sees-average-national-electricity-deficit-5-2024-25-2024-05-03/

2024-05-03 11:15

BUENOS AIRES, May 3 (Reuters) - Mexico's peso is set to navigate between a relatively firm economy on one side and some political doubts on the other, with a small depreciation expected in the medium-term, a Reuters poll of foreign exchange experts showed. The currency has lost 1% year-to-date, a minor drop given the list of negative factors it faces, such as the delayed start of monetary policy easing in the United States and higher global volatility due to elevated tensions in the Middle East. In 12 months, the peso is forecast to shed 2.6% more to 17.59 per U.S. dollar from 17.13 on Tuesday, which would still leave it at a stronger rate than during most of the last eight years, according to the median estimate of the survey. Among 16 respondents in the April 29-May 1 poll, the weakest forecast for the Mexican currency , in one year was 18.70 per dollar and the strongest was 16.60. "The MXN has underperformed amid a carry unwind, but fundamentals have not changed and Mexico should be the biggest beneficiary in emerging markets of U.S. exceptionalism," said Erick Martinez, Latam FX and rates strategist at Barclays. "Growth tailwinds from friend-shoring, close links to the United States in terms of the labor market and monetary policy should continue supporting the peso ... we remain constructive near-term as it is too soon to trade U.S. election risks." As speculators cut "carry trade" positions, or bets on currencies of emerging market countries with high interest rates, the Mexican peso is notching up modest losses compared to other Latin American peers. While the country's central bank lowered its benchmark rate in March by 25 basis points to 11%, the governing board will likely hold it there for longer than markets expect, a key policymaker told Reuters last month. And although inflation remains a challenge, the region's No.2 economy after Brazil is poised to grow steadily after the presidential vote of June 2, in line with a decent performance in the United States, a separate Reuters poll showed. Former Mexico City mayor and ruling party candidate Claudia Sheinbaum is increasing her lead in the race for the presidency. Some economists doubt she would act with determination against fiscal shortfalls if elected, despite her promises of austerity. "There is significant uncertainty around consequences (if not the outcome) of Mexico's elections in June, as well as the U.S. election in November," Capital Economics analysts wrote this week in a note on the outlook for the peso. In Brazil, the real , should gain 3.8% in 12 months to 5.0 per dollar from 5.19 on Tuesday. The currency is down 6.5% so far in 2024, as investors focus on a fiscal deterioration deeper than Mexico's. (For other stories from the May Reuters foreign exchange poll:) Sign up here. https://www.reuters.com/markets/currencies/mexico-peso-navigate-between-firm-economy-political-doubts-2024-05-03/