2024-04-23 05:54

MADRID, April 23 (Reuters) - Spanish gas grid operator Enagas (ENAG.MC) New Tab, opens new tab said on Tuesday that its first-quarter net profit rose roughly 20%, helped by revenue from the liquefied natural gas (LNG) terminal of El Musel and flat expenses. With gas demand in the country down for two years in a row and Spain's ambitious green hydrogen plans, the company - in which the Spanish state owns a 5% stake - is looking to transition from its traditional role as natural gas grid operator to managing a network of hydrogen infrastructure Net profit for the period was 65.3 million euros ($69.56 million) compared with 54.6 million euros a year earlier. Last year, energy firm Endesa won a three-year contract for the El Musel plant's logistic services - namely unloading, storage and reloading - after the plant had been mothballed since its completion. The company said it was on track to meet its profit target of between 260 million euros and 270 million euros for the year. ($1 = 0.9387 euros) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/business/finance/spains-enagas-q1-net-profit-rises-20-2024-04-23/

2024-04-23 05:26

MUMBAI, April 23 (Reuters) - The Indian rupee was largely unchanged on Tuesday, tracking the rangebound movement in its Asian peers and largely steady U.S. bond yields as traders await fresh cues from economic data due later in the week. The rupee was at 83.3275 against the U.S. dollar as of 10:10 a.m. IST, mildly higher than its close of 83.3625 in the previous session. Most Asian currencies were steady and the dollar index also hovered little changed at 106.1. Traders expect the rupee to remain in the 83.25-83.40 range, with the bias tilted towards a slight appreciation. The currency had logged gains on Monday, aided by dollar inflows. Foreign banks were seen offering dollars in early trading on Tuesday, helping the rupee, a foreign exchange trader at a private bank said. But the gains are likely to be limited by dollar demand from importers and mild dollar outflows after Vodafone Idea's (VODA.NS) New Tab, opens new tab follow-on public offering was oversubscribed by 6.36 times the shares on offer, stock exchange data showed on Monday. However, foreign investors have been net sellers of Indian equities and debt so far in April, having pulled out $1.04 billion, according to stock depository data. "The rupee's downside risk is expected to be limited ... with a gradual increase anticipated in the short term," said Amit Pabari, managing director at FX advisory firm CR Forex. Meanwhile, Brent crude oil futures were up slightly at $87.39 per barrel, after dipping on Monday on ebbing fears of escalation in the Iran-Israel conflict. U.S. Treasury yields were little changed on Monday ahead of key economic data. Amid easing tensions over the conflict in the Middle East, the focus will remain on the outlook for when the Federal Reserve may begin to ease policy rates. In that regard, U.S. GDP data on Thursday and personal consumption expenditure inflation data due on Friday are the key data points to watch. Coming soon: Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here. https://www.reuters.com/markets/currencies/rupee-little-changed-tracking-mostly-rangebound-asian-peers-2024-04-23/

2024-04-23 05:20

Yen sinks to 34-year low vs dollar, 16-year trough vs euro Euro rises to two-week high vs dollar US business activity cools down Focus on US GDP, inflation data NEW YORK, April 23 (Reuters) - The yen dropped to multi-year lows against the U.S. dollar and euro on Tuesday, keeping investors on heightened Japanese intervention watch ahead of this week's Bank of Japan policy meeting. The euro reached 165.71 yen, its highest since 2008, after data showed business activity in the euro zone expanded at its fastest pace in nearly a year, primarily due to a recovery in services. Europe's common currency was last up 0.4% at 165.67 yen . The dollar rose as high as 154.88 against the yen , a 34-year peak and edging closer to 155, a level seen by market participants as the new trigger for Japanese intervention. The greenback was last little changed on the day at 154.79 yen. "The 155 level for dollar/yen is a key psychological figure after Japanese officials neglected to step in on behalf of their currency at 152," said Helen Given, FX trader at Monex USA in Washington. "Though (BOJ Governor Kazuo) Ueda has said multiple times that the BoJ will not hike interest rates solely to boost the yen, there is a lot of potential for action from currency officials in tandem with Friday's meeting." She added that the BOJ is likely to stand pat on Friday, which could mean further yen weakness, but thinks "there is a fairly good chance that we see market intervention that same night to prevent a bigger slide toward 160." Earlier on Tuesday, Japanese Finance Minister Shunichi Suzuki gave his strongest warning yet on the chance of intervention, saying last week's meeting with his U.S. and South Korean counterparts laid the groundwork for Tokyo to act against excessive yen moves. However, there were doubts whether Tokyo would act so close to the BOJ's two-day policy meeting that starts on Thursday. Japan's central bank is expected to forecast that inflation will stay around its 2% target for the next three years in a new estimate due on Friday, signalling its readiness to cautiously raise interest rates again this year from near-zero levels. The dollar did inch lower against the yen after data showed U.S. business activity eased in April to a four-month low amid weaker demand. S&P Global said on Tuesday its flash U.S. Composite PMI Output Index, which tracks both the manufacturing and services sectors, fell to 50.9, a level slightly above expansion territory, from 52.1 in March. The dollar index also dropped after the PMI data, down 0.4% at 105.66 . It fell to a two-week low of 105.61. The euro, meanwhile, climbed to a two-week peak against the dollar of $1.0711 , before drifting back to trade at $1.0707, up 0.5%. The common currency also briefly matched the previous day's three-month high against the pound of 86.43 pence, after the German PMI data. The euro was last down 0.3% at 85.95 pence . Dovish policymaker comments from the Bank of England left sterling near its weakest in months. BOE officials said they expect inflation to slow back towards the 2% target, and likely stay there, which gave investors confidence in their belief that the bank will cut rates in the summer. Earlier in the year, the pound was lifted by expectations that the BoE would cut rates meaningfully later than the European Central Bank, which markets currently see easing in June. The British currency had fallen to a five-month low of $1.2299 against the dollar on Monday, but recovered on Tuesday to $1.2450 , up 0.8% in the wake of strong British business activity data. In the United States, investors expect the Federal Reserve to be one of the last major central banks to cut, with the rate futures market currently pricing in a 73% chance of its first easing by September, according to the CME's FedWatch tool. That was in sharp contrast to a few weeks ago when markets were betting on June for the Fed easing cycle to begin, a shift that has driven the dollar higher. Investors will have another chance to assess the strength of the U.S. economy this week with first-quarter gross domestic product data on Thursday and personal consumption price expenditures (PCE) index, the Fed's preferred measure of inflation, on Friday. Market players anticipate a 0.3% increase in the headline PCE number in March, unchanged from the previous month, and a year-on-year gain of 2.6%, compared with a 2.5% increase in February, according to a Reuters poll. Sign up here. https://www.reuters.com/markets/currencies/firm-dollar-drags-yen-down-closer-intervention-range-2024-04-23/

2024-04-23 04:40

A look at the day ahead in European and global markets from Tom Westbrook Purchasing Managers Index figures begin a data and corporate results heavy week. Recent manufacturing indicators have been positive, particularly in the United States, and investors are looking for signs of improvement outside the U.S. to keep the dollar's strength in check. Consensus expectations, however, are for Europe's manufacturing PMI to stay firmly in contractionary territory at 46.6, which could add pressure on the euro . Japan's factory activity contracted in April, though the pace of decline was very modest and at 49.9 the manufacturing PMI was its closest to the break-even point of 50 since slipping into contraction in June. Japan's yen is trading precariously close to a three-decade low and is within a whisker of the 155 level that traders think may trigger intervention. Japanese officials issued their strongest warning yet of possible yen buying. The Bank of Japan meets later in the week. British PMIs are seen more or less steady. Sterling has turned shaky in the wake of Bank of England Deputy Governor Dave Ramsden sounding dovish in remarks last week, where he said he thought inflation was more likely to surprise on the downside. Sterling hit a five-month low on Monday and gilt yields dropped as investors pencilled in a rate cut for August. On the earnings front, it is a busy session ahead in New York with results due from Texas Instruments (TXN.O) New Tab, opens new tab and Tesla (TSLA.O) New Tab, opens new tab and economic bellwethers including General Motors (GM.N) New Tab, opens new tab, General Electric (GE.N) New Tab, opens new tab, Pepsi (PEP.O) New Tab, opens new tab and UPS (UPS.N) New Tab, opens new tab. China nudged its currency lower on Tuesday, fixing the yuan's trading band slightly weaker than the previous session. Chinese government bonds extended a long rally that's driven yields to record lows and put China's 10-year yields below U.S. yields by the largest margin in two decades. Gold fell 1% and bond markets steadied as traders looked ahead to U.S. core PCE data due on Thursday. Key developments that could influence markets on Tuesday: Economics: European, British and U.S. PMIs Earnings: Texas Instruments, Visa, Tesla, Pepsi, UPS, GM, GE, Lockheed, Halliburton Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-04-23/

2024-04-23 02:55

MUMBAI, April 23 (Reuters) - The Indian rupee is expected to open little changed on Tuesday on expectations that importers will take advantage of the mini recovery on the currency and bets that Federal Reserve rate cuts are not imminent. Non-deliverable forwards indicate the rupee will open broadly unchanged from 83.3625 in the previous session. The local currency has managed to recover from the all-time low of 83.5750, largely on the back of intervention by the Reserve Bank of India. "Having pulled back, reckon (USD/INR) to be more or less quiet here. You would expect importers to use this dip, more so when you consider the Fed outlook on rate cuts," an fx trader at a bank said. He expects USD/INR to be supported at 83.30 and a break below that is unlikely only after the key U.S. data is released later this week. Asian currencies were mostly rangebound while equities were a shade lower. Oil prices inched up after having dipped on Monday amid abating worries over the Iran-Israel confrontation. The focus of investors is now back on when the Federal Reserve is likely to begin cutting interest rates and how many times they will deliver cuts this year. Higher inflation and robust growth had prompted interest rate futures to prices in less than two rate cuts this year. The slew of U.S. data this week will help in gauging what the Fed is likely to do, the most important of which is the first quarter GDP data on Thursday and the March core PCE reading the next day. Consensus estimates for the core PCE is a 0.3% month-on-month rise. "Idiosyncratic factors kept inflation elevated over January-February. If these persist into the March data, indicating stickiness, the Fed's wait for greater certainty (on inflation) would extend," ANZ Bank said in a note. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.42; onshore one-month forward premium at 7 paise ** Dollar index down at 106.06 ** Brent crude futures up 0.4% at $87.3 per barrel ** Ten-year U.S. note yield at 4.62% ** As per NSDL data, foreign investors bought a net $92.5mln worth of Indian shares on Apr. 19 ** NSDL data shows foreign investors sold a net $98.1mln worth of Indian bonds on Apr. 19 Coming soon: Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here. https://www.reuters.com/markets/currencies/rupee-recovery-likely-be-challenged-by-importers-fed-view-2024-04-23/

2024-04-23 02:01

TOKYO, April 23 (Reuters) - Japan Finance Minister Shunichi Suzuki said on Tuesday last week's trilateral meeting with his U.S. and South Korean counterparts likely laid the groundwork for Tokyo to take appropriate action in the foreign exchange market. "I voiced strong concern on how a weak yen pushes up import costs. Our view was shared not just in a meeting with my South Korean counterpart, but at the trilateral meeting that included the United States," Suzuki told parliament. "I won't deny that these developments have laid the groundwork for Japan to take appropriate action (in the currency market), though I won't say what that action could be," he said. Sign up here. https://www.reuters.com/markets/asia/japan-finance-minister-says-groundwork-laid-take-appropriate-fx-action-2024-04-23/