2024-04-09 08:02
FRANKFURT, April 9 (Reuters) - Euro zone banks lowered the bar on mortgage approvals last quarter for the first time in over two years but demand for credit kept falling amid high borrowing costs and a stagnant economy, a European Central bank survey showed on Tuesday. The ECB has pushed interest rates to record highs to rein in inflation, bringing bank credit growth in the 20 countries that share the euro to a standstill. While banks were slowly turning less cautious -- at least about extending home loans -- households and companies showed little appetite for taking on fresh debt, the ECB's quarterly Bank Lending Survey showed. Banks eased their standards for approving loans to households for house purchases in the three months to March and tightened access to corporate credit less than they had expected. But they still reported a "substantial decline" in demand for credit from companies -- which they did not expect three months earlier -- and a "small decline" for housing loans. "Higher interest rates, as well as lower fixed investment for firms and lower consumer confidence for households, exerted dampening pressure on loan demand," the ECB said. Yet banks expected an improvement in the three months to June, with only a "moderate net decrease in demand" for corporate loans and even an increase in demand for loans to households. Interest rates on new mortgages fell as banks anticipated rate cuts from the ECB. This was also seen putting an end to banks' record profits. "The dampening impact of the ECB’s interest rate decisions expected over the next six months also extends to overall bank profitability, with a moderately negative contribution from provisioning and impairments," the ECB said. 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/euro-zone-banks-lower-bar-mortgages-demand-keeps-falling-ecb-2024-04-09/
2024-04-09 07:29
April 9 (Reuters) - European shares opened lower on Tuesday, with investors stepping to the sidelines ahead of this week's U.S. inflation data and a European Central Bank monetary policy decision, while gains in British energy giant BP and miners kept losses in check. The pan-European STOXX 600 index (.STOXX) , opens new tab was down 0.2%, as of 0716 GMT, after notching its strongest session in more than two weeks on Monday. Traders kept away from big bets ahead of the key U.S. print on Wednesday and the ECB's decision on Thursday that could determine the outlook for interest rate cuts. Among major movers, shares of BP (BP.L) , opens new tab rose 1% after the company forecast its first-quarter oil and gas output as well as low-emission energy to increase quarter-on-quarter. Also limiting losses, the basic resources sector (.SXPP) , opens new tab climbed nearly 1%, as Shanghai copper prices traded at record highs on optimism around positive factory data out of major economies. Shares of Atos (ATOS.PA) , opens new tab dropped 2% in a volatile trade after the struggling French IT consulting firm posted an update on its financial restructuring plan. 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/european-shares-dip-ahead-ecb-policy-decision-bp-shines-2024-04-09/
2024-04-09 06:52
BENGALURU, April 9 (Reuters) - India's top carmaker Maruti Suzuki (MRTI.NS) , opens new tab has added an assembly line at its largest plant, boosting the plant's annual capacity to 900,000, it said on Tuesday. The assembly line at the plant in Manesar in the northern Indian state of Haryana can produce 100,000 vehicles each year, raising Maruti's overall annual capacity to 2.35 million units. The company, majorly owned by Japan's Suzuki Motor (7269.T) , opens new tab, aims to manufacture 4 million units annually by fiscal 2031. Maruti produces eight models at the Manesar plant, including some of its top-selling products, like the Wagon R hatchback and the Brezza sport utility vehicle. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. https://www.reuters.com/business/autos-transportation/indias-maruti-suzuki-adds-assembly-line-its-largest-plant-2024-04-09/
2024-04-09 06:38
April 9 (Reuters) - Austrian oil and gas group OMV (OMVV.VI) , opens new tab on Tuesday said average realised prices for energy declined over the first three months of the year, tracking a 3.4% quarterly drop in the average realised price of crude. "Compared to (the fourth quarter of 2023), retail and commercial margins decreased substantially," OMV said in a first-quarter trading update. The average realised price for natural gas fell by 18.3% to 21.9 euros per MWh, it added. OMV's European refining reference margin was 8.5% higher on a quarterly basis but down 27.34% year-on-year. Petrochemical margins were mixed, with ethylene and propylene indicators falling by around a tenth each, while reference margins for polyethylene and polypropylene rose by 29% and 22% respectively. OMV's chemicals division, viewed as a growth engine for the company as it moves away from polluting fossil fuels, produces chemicals used in gas and water pipes, car parts and medical syringes, among other things. "It is a mixed set of results for the quarter" Tamás Pletser, Erste Group analyst, wrote, adding that he expects profitability to be similar to or slightly below the fourth quarter level. OMV will publish its full first-quarter results on April 30. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/austrias-omv-records-lower-first-quarter-energy-prices-2024-04-09/
2024-04-09 06:36
HOUSTON, April 9 (Reuters) - Oil prices settled lower for a second day on Tuesday, as talks for a ceasefire in Gaza continued, but losses were limited to less than a dollar a barrel as Egyptian and Qatari mediators met resistance in their search to find a way out of the war. The talks in Cairo, also attended by the director of the U.S. Central Intelligence Agency, William Burns, have so far failed to reach a breakthrough. Hamas said an Israeli proposal on a ceasefire met none of the demands of Palestinian militant factions, but that it would study the offer further and deliver its response to mediators. Brent crude futures settled 96 cents, or 1.1%, lower at $89.42 per barrel, while U.S. West Texas Intermediate (WTI) crude futures closed down $1.20 or 1.4% at $85.23. On Monday, Brent posted its first decline in five sessions and WTI its first in seven as a fresh round of Israel-Hamas ceasefire discussions in Cairo raised hopes of a breakthrough. "Without an end to the conflict, there is an elevated risk that other countries, particularly Iran, OPEC's third-largest producer, could be drawn into the war," said Fiona Cincotta, senior financial market analyst at City Index. The commander of the Revolutionary Guard's navy in Iran said it could close the Strait of Hormuz if deemed necessary. About a fifth of the volume of the world's total oil consumption passes through the strait daily. Turkey announced it would restrict exports of various products, including jet fuel, to Israel until there is a ceasefire. Israel said it would respond with its own curbs. Adding to concerns of a tight market, Mexico's state oil company, Pemex, said it would reduce crude exports by 330,000 barrels per day (bpd) in May so it can supply more to domestic refineries, cutting by a third the supply available to its U.S., European and Asian buyers. Pemex had already cut its April exports by 436,000 bpd. Limiting oil price declines, overall fundamentals of tighter supplies remain unchanged, said Dennis Kissler, senior vice president of trading at BOK Financial, citing OPEC's supply cuts, reduction of fuel exports by Russia and geopolitical instability. U.S. crude oil output was expected to rise by 280,000 bpd to 13.21 million bpd in 2024, versus a prior forecast for a 260,000 bpd increase, the U.S. Energy Information Administration (EIA) said. EIA said it expects Brent crude prices to average $88.55 a barrel in 2024, versus a previous forecast of $87 a barrel. Vitol CEO Russell Hardy told a conference in Switzerland that he expected oil prices to trade in a range on $80-100 a barrel and expected oil demand growth of 1.9 million bpd in 2024. U.S. crude oil inventories climbed last week by 3.034 million barrels, according to market sources citing American Petroleum Institute figures. Analysts had estimated that stocks would rise by about 2.4 million barrels. Official U.S. government inventory data is due on Wednesday morning. 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/markets/commodities/oil-prices-turn-higher-middle-east-ceasefire-hopes-wane-2024-04-09/
2024-04-09 06:32
Gold hits all-time high of $2,365.09 per ounce on Tuesday Gold could rally to $3,000 per ounce by 2025 - BofA Silver hit highest since June 2021 U.S. CPI and Fed minutes due on Wednesday LONDON, April 9 (Reuters) - Gold prices hit a record high on Tuesday for an eighth consecutive session on geopolitical worries and support from momentum-following funds. Spot gold was up 0.7% to $2,354.37 per ounce by 1158 GMT after hitting a record high of $2,365.09. "Strong underlying momentum with the buy-on-dip still the prevailing strategy among traders," Ole Hansen, head of commodity strategy at Saxo Bank, said. "Geopolitical risks related to Russia/Ukraine and the Middle East are still playing a supporting role ... the focus is changing from the negative impact of lower rate cut expectations towards higher and sticky inflation." The market is awaiting the Federal Reserve's policy meeting minutes and U.S. inflation data due on Wednesday for fresh signals on the interest rate path. Elevated interest rates usually constrain the appeal of holding non-yielding gold, but the precious metal has been ignoring these factors so far this month. From the technical point of view, the April rally moved spot gold prices deep into overbought territory, as indicated by the relative strength index. Spot silver rose 0.8% to $28.05 per ounce after hitting $28.18, the highest since June 2021. "Silver is trying, for a second day, to gain a foothold above $28. If successful, gold may enjoy some additional tailwind," Hansen added. Bank of America analysts expect gold to average $2,500 by the fourth quarter, potentially hitting $3,000 by 2025. Silver would benefit from that and stronger industrial demand taking it to more than $30 per ounce within the next 12 months. "Demand from central banks and China's retail buyers has been strong. If Western investors join the party on rate cuts, the yellow metal will move a leg higher," BofA analysts said, adding that gold could rise further. Platinum gained 2.0% to $977.33 and palladium rose 1.5% to $1,058.93. Palladium prices, according to BofA, are set to trend below underperforming platinum in the longer term as demand is dominated by auto catalysts. 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/markets/commodities/gold-hovers-near-record-high-market-focus-turns-us-data-fed-minutes-2024-04-09/
