2024-03-11 00:28

Stocks ease from record highs Markets wait for U.S. CPI data on Tuesday Bitcoin hits all-time high NEW YORK, March 11 (Reuters) - A gauge of global stocks retreated for a second straight session on Monday, easing further from a record high ahead of U.S. inflation data this week which could heavily influence the Federal Reserve's interest rate path. Stocks have hit multiple record highs this year, but declined on Friday following a mixed U.S. payrolls report that did little to alter expectations for the Fed to begin cutting rates in June. U.S. inflation data is due on Tuesday in the form of the consumer price index (CPI), with expectations for a monthly increase of 0.4% and 3.1% on an annual basis. The Dow Jones Industrial Average (.DJI) , opens new tab rose 46.97 points, or 0.12%, to 38,769.66. The S&P 500 (.SPX) , opens new tab lost 5.74 points, or 0.11%, at 5,117.95 and the Nasdaq Composite (.IXIC) , opens new tab fell 65.84 points, or 0.41%, to 16,019.27. "There are two ways stocks can get hit here - in the very, very near-term you can get an upside surprise to CPI and you get further inversion of the yield curve and that just kind of punts the eventual reckoning down the street a few blocks," said Brian Nick, senior investment strategist at The Macro Institute in New York. "But what we're more concerned about is that there's emerging weakness in a lot of the current activity." U.S. Treasury yields edged up ahead of the data, with the benchmark U.S. 10-year notes up 1 basis point at 4.098%, from 4.088% late on Friday. The 2-year note yield, which typically moves in step with interest rate expectations, rose 5 basis points to 4.536%. The Fed is scheduled to release its next policy statement on March 20 and investors have all but ruled out a cut, with expectations at 97% the Fed will hold rates steady, according to CME's FedWatch Tool , opens new tab. Last week, comments from Fed Chair Jerome Powell and European Central Bank policymakers buoyed expectations that rate cuts will begin this summer. Expectations for a cut of at least 25 basis points (bps) at the June meeting are currently above 70%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 2.55 points, or 0.33%, to 768.75. The STOXX 600 (.STOXX) , opens new tab index closed down 0.35%, while Europe's broad FTSEurofirst 300 index (.FTEU3) , opens new tab ended down 6.47 points, or 0.32%, weighed down by technology sector declines. The dollar index gained 0.17% at 102.85, with the euro down 0.12% at $1.0924. Sterling weakened 0.37% at $1.281. The Japanese yen strengthened 0.09% against the greenback at 146.94 per dollar. The yen had strengthened earlier in the day after Reuters reported a growing number of Bank of Japan policymakers are warming to the idea of ending negative interest rates this month. In addition, data released on Monday showed Japan was not in recession after economic growth was revised up to an annualized 0.4% for the December quarter. Crude prices were mixed, as U.S. crude settled down 0.1% at $77.93 a barrel and Brent settled at $82.21 per barrel, up 0.16% to on the day as concerns eased that fighting in the Middle East would disrupt supply and Chinese data suggested weak demand, while an increase in U.S. refining limited any selling. In cryptocurrencies, bitcoin gained 5.37% at $72,090.50 after hitting a record $72,901.94. https://www.reuters.com/markets/global-markets-wrapup-1-2024-03-11/

2024-03-10 23:31

LA PAZ, March 10 (Reuters) - Heavy rain in Bolivia's capital, La Paz, prompted authorities to declare a state of emergency, a government document showed on Sunday, after overflowing rivers destroyed many houses over the weekend. Bolivian President Luis Arce pledged to send heavy machinery and 3,000 troops to prevent further damage, according to the document. Heavy rains caused flooding in several neighborhoods and isolated parts of the city by cutting water, electricity and roads. "We are deeply concerned by the difficult situation that our municipality in La Paz is going through," Arce said in a post on social media platform X. One person died over the weekend in La Paz because of the heavy rains, while nearly 50 people have died in deluges across the country since the rainy season began in January, according to official data. https://www.reuters.com/world/americas/bolivia-heavy-rains-prompt-authorities-declare-state-emergency-2024-03-10/

2024-03-10 22:43

March 11 (Reuters) - A look at the day ahead in Asian markets. Signs of fatigue on Wall Street and mixed Chinese inflation data will set the tone for Asian markets on Monday, with growing expectations of a landmark policy change later this month from the Bank of Japan also likely to drive the Nikkei and yen. Asia's economic calendar is light, with only the final reading of fourth-quarter Japanese GDP on tap. A Reuters poll suggests the economy avoided a technical recession thanks to stronger-than-expected corporate spending on plants and equipment. Inflation data from China on Saturday showed that consumer price inflation was notably higher than expected, but producer price deflation accelerated once again. Annual consumer inflation rose to 0.7%, the highest in almost a year and a sign that the economy is reflating and the battle against deflation may be turning in policymakers' favor. But the producer price index fell 2.7% year-on-year, more than forecast and the 17th consecutive month that prices have declined on an annual basis. Pipeline price pressures remain negative. Deflation is one of investors' biggest concerns over China. Bubbling U.S.-Sino trade tensions is another, and on Friday Bloomberg reported that Washington is weighing sanctions on several Chinese tech companies, including chipmaker ChangXin Memory Technologies, in a bid to further restrain China's development of advanced semiconductors. Capital has flooded out of China for some time, but analysts at the Institute of International Finance , opens new tab say this tide may be turning - China posted its first equity inflow in six months in February and its largest in over a year. Trading in the Japanese yen, meanwhile, is intensifying as the BOJ's March 18 to 19 policy meeting draws closer and speculation mounts that it will bring down the curtain on years of ultra-loose policy and negative interest rates. The yen last week registered its best week since July, rising 2% against the dollar. On the other side of the dollar/yen exchange rate, traders now see the Fed cutting rates in June. Dollar/yen could have more room to fall, if hedge funds and speculators continue to cover their short yen position, which was the largest in six years at the end of February. Data shows that funds trimmed this by around 10% in the week to March 5. The global backdrop to the Asian open on Monday is mixed. On the one hand, signs are pointing to U.S. and euro zone rate cuts starting in June. But on the other, there are signs that the remarkable rally on Wall Street is running out of steam. The S&P 500 and Nasdaq ended lower last week. It may have been only the third weekly decline in 19 for both, but it came despite a notable decline in Treasury yields and the dollar's biggest weekly loss this year. Here are key developments that could provide more direction to markets on Monday: - Japan GDP (Q4, final) - Japan money supply (February) - U.S. 3-year bond auction https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-03-10/

2024-03-10 22:09

Contracts from Russia, other countries expiring over time Prospect of Russian gas disruption has Japan turning to allies Deals being struck in Australia, US despite political issues TOKYO, March 11 (Reuters) - Resource-scarce Japan is shoring up long-term supplies of liquefied natural gas from close allies Australia and the United States as key contracts from providers including Russia are set to expire by the early 2030s. Japan's biggest power generator JERA last month agreed to buy a 15.1% stake in Woodside Energy's (WDS.AX) , opens new tab Scarborough project in Australia. It was the latest in a string of deals as the fallout from Russia's invasion of Ukraine threatens to disrupt access to gas from its northern neighbour, making it more imperative to find reliable long-term supply sources. LNG accounts for about a third of Japan's power generation and it is the world's second-largest importer behind China. It remains a key part of Japan's energy mix even though imports fell by 8% last year to the lowest since 2009 as it has increased the use of renewable energy and restarted some nuclear reactors following a complete shutdown after the Fukushima disaster in 2011. Since 2022, Japanese LNG buyers have struck equity deals in five projects in Australia and the U.S. including an exploration block. They have secured 10- to 20-year offtake contracts from those countries for more than 5 million metric tons annually, or 8% of Japan's 2023 consumption, according to a Reuters calculation, eclipsing transactions elsewhere in the world. Political issues including new carbon emissions rules in the Australia introduced in mid-2023 and President Joe Biden's freeze in January on new U.S. LNG export licence approvals have not dented Japan's appetite for long-term supplies from those countries. Kyushu Electric Power (9508.T) , opens new tab, among the top five Japanese utilities, has said it is considering buying a stake in Energy Transfer's (ET.N) , opens new tab Lake Charles LNG project in the United States, even though it is now subject to the U.S. licence freeze. That would be its second direct equity stake in gas production after Australia. "North America and Australia still have supply stability compared to other projects," Kyushu Electric Executive Officer Takashi Mitsuyoshi said. "There are some concerns about North America due to the recent (LNG) move by Biden, but they, along with Australia, are allies and that means a lot." Japan and the United States are members of the Group of Seven (G7) alliance of developed nations and are partners with Australia in another regional security body, the Quadrilateral Security Dialogue, also known as "the Quad". Kyushu Electric has long-term supply contracts with Australia, Indonesia and Russia, some of which are due to expire between 2027 and 2032. Mitsuyoshi said Indonesia may have limited export capacity in the future due to strong domestic demand thanks to a growing economy. Qatar, another Japan supplier, is ramping up production but some buyers chafe at its contracts that limit flexibility to trade cargoes, with Japan's industry minister last year calling for the elimination of the destination clause. Since 2022, Japanese LNG buyers have increased their involvement with Oman, but on a smaller scale compared to Australia and the U.S., while Inpex (1605.T) , opens new tab acquired new exploration licences in Malaysia. REPLACING RUSSIA LNG flows to Japan have changed over the last decade, including large declines from Indonesia, Malaysia, Qatar and Russia as well as the U.S. and Papua New Guinea becoming major new suppliers, according to Japan customs data. Throughout that period, Australia has been its top supplier, though other new sources are emerging. Canada, a G7 member, is preparing to start its first major export facility, from which Mitsubishi Corp (8058.T) , opens new tab, a shareholder, will receive over 2 million tons of LNG annually. Yoko Nobuoka, senior analyst for Japan power research at LSEG, said the importance of cooperation with allies for Japan's energy security, including LNG, had increased on the back of the energy crisis triggered by Russia's invasion of Ukraine. Russia was Japan's third-biggest LNG supplier last year, after Australia and Malaysia, but imports fell 10.7% from 2022. Much of Japan's Russian LNG comes from the Sakhalin-2 project, but many of its long-term contracts are set to lapse around 2030, giving added incentive to lock in deals elsewhere. The vast new Arctic LNG 2 project, in which Mitsui & Co (8031.T) , opens new tab and state-owned Japan Organization for Metals and Energy Security (JOGMEC) together own 10%, underscores the perils of Tokyo's reliance on Russian gas. Washington in November imposed sanctions on the project, prompting its operator, Novatek, to declare force majeure and leading Mitsui to record an additional provision of 13.6 billion yen ($91.94 million). "But G7 members can't cut that reliance (on Russian LNG) overnight, so that's why they need boosted LNG supplies from allies," said David Boling, a director at consulting firm Eurasia Group who was deputy assistant U.S. trade representative for Japan from 2015 to 2022. ($1 = 147.9300 yen) https://www.reuters.com/business/energy/japan-boosts-reliance-allies-australia-us-long-term-lng-supplies-2024-03-10/

2024-03-10 20:16

March 10 (Reuters) - The Netherlands is close to announcing a deal to sell TenneT Holding's power grid in Germany to the government in Berlin, two people familiar with the matter told Reuters on Sunday. One of the sources said the purchase will likely happen via German state bank KfW, which will sell on the asset to private investors in a second step, while Berlin is expected to keep a blocking minority long-term. The second source said a deal was close and could be announced in a matter of days. Talks could still collapse, the sources said. Bloomberg News first reported that a deal was close. Sources told Reuters last year that a deal could value TenneT's German assets at 20 billion to 25 billion euros ($27.36 billion). The Dutch government had no comment when contacted by Reuters and the German government did not respond to a request for comment. The German government's plan to buy TenneT's business in Germany hit a hurdle after the country's constitutional court ruled that unused COVID-19 pandemic funds could not be re-used for climate projects. ($1 = 0.9138 euros) https://www.reuters.com/markets/deals/netherlands-germany-near-deal-tennet-grid-sources-say-2024-03-10/

2024-03-10 19:52

FRANKFURT, March 10 (Reuters) - Train drivers from German rail company Deutsche Bahn announced a sixth round of strikes from Monday until Wednesday in a long-running dispute over pay. Germany has faced strikes on several fronts, causing chaos for millions of travellers and adding to the country's economic woes at a time of looming recession. Drivers' union GDL said late on Sunday that a 24-hour walkout at Deutsche Bahn's cargo division would start from Monday at 1700 GMT while another 24-hour strike of passenger train drivers would begin on Tuesday morning at 0100 GMT. Also this weekend, Lufthansa's (LHAG.DE) , opens new tab cabin crew union called on its members to strike at Lufthansa and short-haul carrier CityLine on Tuesday and Wednesday to press their demands for higher pay. https://www.reuters.com/world/europe/german-train-drivers-announce-6th-strike-pay-dispute-2024-03-10/