2024-02-19 21:49

Feb 20(Reuters) - A look at the day ahead in Asian markets. Trading activity in Asia should return to normal on Tuesday with China back in business following its Lunar New Year break and U.S. markets open after the Presidents Day holiday, with attention turning mostly to China and Japan. Investors will be looking to see whether Chinese markets' gradual climb out of the doldrums can continue, and whether Japan's stocks and currency can break through to territory not seen in more than a third of a century. Tuesday's economic calendar is pretty light. The Reserve Bank of Australia releases minutes of its last policy meeting and China's central bank delivers its latest interest rate decision. The People's Bank of China is expected to keep its benchmark one-year loan prime rate steady on Tuesday at 3.45% and cut its five-year rate, currently 4.20%, by 5-15 basis points to 3.95%. This latter rate influences mortgage rates. Chinese stocks , opens new tab returned on Monday with a fairly decent performance - the Shanghai Composite rose 1.6% and the CSI 300 rose 1.2% - although given that Asian shares gained 2% during Lunar New Year, perhaps it wasn't all that impressive. Still, if the CSI 300 can close higher on Tuesday it will mark a sixth consecutive rise, something not seen since January 2023. Cautious optimism seems to be the prevailing mood, which Beijing will no doubt prefer to the outright gloom of late. Many countries in Asia are experiencing a tightening of financial conditions, especially those with large dollar-denominated external debt and exposure to U.S. bond yields. But not Japan. With stocks at the highest in 34 years, the yen near its weakest in 34 years, and domestic bond yields under 1%, financial conditions in Japan have rarely been looser. Goldman Sachs' Japanese financial conditions index last week sank to a 34-year low. This underscores the sliding yen/booming stock market nexus, and would appear to be inflationary. The Bank of Japan might view this as reason to end negative interest rates soon and bring them into positive territory for the first time in more than eight years. But the economy just unexpectedly slipped into recession, losing its position as third-largest in the world to Germany. Domestic demand is weak, and it is unclear whether wage growth next year will be as strong as it will be this year. Will the BOJ move on rates soon? Or intervene on behalf of the Ministry of Finance to shore up the yen? It's a tricky one to navigate. More focus than usual could be placed on Japan's 20-year bond auction on Tuesday, after surprisingly strong demand from pension funds in a 10-year sale recently. A sale of 12-month bills on Monday, meanwhile, resulted in the first positive yield at auction since October 2014. Here are key developments that could provide more direction to markets on Tuesday: - Australia central bank minutes - China interest rate decision - Malaysia trade (January) https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-02-19/

2024-02-19 21:39

Interim dividend of $0.72 per share HY underlying attributable profit $6.60 bln, ahead of estimates Warns of continued impact from inflation, high interest rates Feb 20 (Reuters) - BHP Group (BHP.AX) , opens new tab on Tuesday logged first-half underlying profit that slightly beat analyst expectations, buoyed by strong iron ore prices, and said the worst of inflation impacts were receding although it remained cautious on China's economy. The world's largest listed miner said it was not yet clear how effective China's stimulus policies push has been and said it would remain cautious on its outlook. It noted, however, a "more balanced" demand picture in India, which has shown healthy momentum. BHP said it expects a "more balanced global economy and evidence that the worst of the general inflationary wave is behind us, (to) have a positive impact on our industry in calendar year 2024." For the first-half, BHP's strong revenue growth of 6% was underpinned by higher iron ore and copper prices and contributions from new projects, but was partially offset by lower energy coal realised prices. BHP said underlying profit attributable to shareholders was $6.60 billion for the six months ended Dec. 31, unchanged from the previous year, but topping an LSEG estimate of $6.42 billion. It declared an interim dividend of $0.72 per share, compared with $0.90 per share a year earlier. That beat Citi's expectation of $0.68, and Visible Alpha's consensus of $0.70. "Market should take modestly higher dividend than expected as a reflection of BHP’s improving confidence regarding outlook on commodity demand/prices," analysts at Citi wrote. NICKEL BHP, which announced a $2.5 billion impairment charge for its Western Australia Nickel business last week, said it sees the nickel industry facing "a difficult multi-year run." "Our base case is that the market may rebalance by the late 2020s." While it welcomed Australia's moves to shore up the nickel sector though a production tax credit, BHP said that should not take the focus of ensuring "the right policy settings are in place to drive long term competitive positioning of Australia as a nation." Those settings include improved industrial relations settings, opportunities for improved fiscal settings, removing permit duplication. However, for those companies that have already put their operations into care and maintenance, that might not be enough, CEO Mike Henry said. "Given just how significant the challenges in the nickel market are today, that may not be enough to alter course." ($1 = $1.0000) https://www.reuters.com/markets/commodities/bhp-reports-flat-first-half-underlying-profit-warns-inflation-impact-2024-02-19/

2024-02-19 19:29

Militant group says one of latest ships hit at risk of sinking Houthis vow to keep attacking while Gaza war rages Seafarers at increasing risk, demand better conditions LONDON/CAIRO, Feb 19 (Reuters) - Yemen's Houthi militants said on Monday they had attacked the Rubymar cargo vessel in the Gulf of Aden which was at risk of sinking, raising the stakes in their campaign to disrupt global shipping in solidarity with Palestinians in the Gaza war. The Iran-aligned Houthis have made repeated drone and missile strikes since November in the Red Sea and Bab al-Mandab Strait. U.S. and British forces have responded with multiple strikes on Houthi facilities but have so far failed to halt the attacks. Houthi military spokesperson Yahya Sarea said in a statement that the Rubymar's crew was safe but that the ship was badly damaged and at risk of sinking. The Belize-flagged, British-registered and Lebanese-managed vessel was attacked on Sunday. The Houthis had also shot down a U.S drone over the Yemeni port Hodeidah, Sarea added. The U.S. military's Central Command (CENTCOM) confirmed that two anti-ship ballistic missiles were launched from Houthi controlled areas of Yemen and targeted the Rubymar on Feb 18. "One of the missiles struck the vessel, causing damage. The ship issued a distress call and a coalition warship along with another merchant vessel responded to the call to assist the crew of the Rubymar," CENTCOM said on X. Security firm LSS-SAPU, in charge of safety on the Rubymar, said earlier the crew evacuated after two missiles hit. They were picked up by another commercial ship which took them to Djibouti. "We know she was taking in water," LSS-SAPU told Reuters in comments by phone. "There is nobody on board now ... The owners and managers are considering options for towage." So far, no ships have been sunk nor crew killed from the attacks in a sea lane accounting for about 12% of global maritime traffic. Some companies have chosen to go the longer and more expensive route via the southern tip of Africa. Despite Western attacks on them in Yemen, the Houthis have vowed to continue targeting ships linked to Israel until attacks on Palestinians in the Gaza Strip stop. GREEK-FLAGGED SHIP HIT In a second incident within hours, the Greece-flagged, U.S.-owned bulk carrier Sea Champion with 23 crew members was attacked twice on Monday by missiles, with a window damaged but no injuries to personnel, Greek shipping ministry sources said. The vessel was taking grain from Argentina to Aden. Seafarers in the firing line have signed industry wide agreements giving them rights to refuse to sail on ships passing through the Red Sea and to receive double pay when entering high-risk zones. Shipping industry associations on Monday called for the release of the 25 crew members of the Galaxy Leader commercial ship hijacked by the Houthis three months ago on Nov 19. "The 25 seafarers who make up the crew of the Galaxy Leader are innocent victims of the ongoing aggression against world shipping," the associations said. "It is abhorrent that seafarers were seized by military forces and that they have been kept from their families and loved ones for too long." The CEO of QatarEnergy, the world's second largest exporter of liquefied natural gas (LNG) which has stopped sailing via the Red Sea, said the disruption was delaying deliveries. Container shipping, which transports consumer goods, is also starting to feel the impact from re-routing ships. S&P Global Market Intelligence said in a report on Friday that the apparel industry was now expecting higher costs and delays. The Houthis, who control Yemen's most populous regions, have targeted vessels with commercial ties to the United States, Britain and Israel, shipping and insurance sources say. War risk insurance premiums have crept higher and are now around 1% of the value of the vessels, excluding discounts that are applied, adding hundreds of thousands of dollars of additional costs per voyage, insurance sources said. "Shipping companies must weigh up the increased costs and journey times against the risk to their vessels, and, most importantly, the safety of the crew onboard," insurance broker Gallagher Speciality Marine said in a report last week. The European Union on Monday launched a naval mission to the Red Sea "to restore and safeguard freedom of navigation" there, a move welcomed by the World Shipping Council. "The security situation around the Red Sea continues to be dire, with vessels attempting to transit being fired upon with missiles and drones as well as suffering attacks from armed fighters on the water," the WSC said. https://www.reuters.com/world/yemens-houthis-say-ship-attacked-gulf-aden-may-sink-2024-02-19/

2024-02-19 19:28

GEORGETOWN, Feb 19 (Reuters) - Guyana plans to disclose winners of the country's first competitive auction of offshore oil blocks by the end of March, an official with the country's Ministry of Natural Resources said on Monday. The government continues to review proposals and analyze documents provided by six of eight groups that placed bids in an oil auction last September, Senior Petroleum Coordinator Bobby Gossai Jr. told Reuters at the country's annual energy conference. His remarks came at an energy conference designed to highlight the nation's rise as the world's fastest-growing oil producer. Officials used the first day of the conference to lay out plans to use oil and gas wealth to transform and broaden its economy. Auction bidders included a consortium composed of Exxon Mobil (XOM.N) , opens new tab, Hess Corp (HES.N) , opens new tab and China's CNOOC (0883.HK) , opens new tab, and another with TotalEnergies, Qatar Energy [RIC:RIC:QATPE.UL] and Malaysia's Petronas [RIC:RIC:PETRA.UL]. A short-list of the bidders on eight of 14 blocks offered was previously disclosed, but the ministry had asked for additional documents and information before contract awards. Offshore oil discoveries from the Exxon-led consortium found more than 11 billion barrels of oil, and it is now pumping about 645,000 barrels of oil per day. Plans are progressing for new onshore infrastructure including a gas-to-power plant that will cut the nation's electric-power costs by 50% and encourage new agriculture, refining and petrochemical development, President Irfaan Ali told attendees. https://www.reuters.com/business/energy/guyana-disclose-winners-offshore-oil-block-auction-by-end-march-2024-02-19/

2024-02-19 17:24

AstraZeneca up as lung cancer drug combo wins US approval Currys soars on takeover interest from JD.com and Elliot FTSE 100 up 0.2%, FTSE 250 adds 0.1% Feb 19 (Reuters) - British equities kicked off the week on an upbeat note, boosted by gains in pharma and biotech shares following the U.S. FDA's approval of AstraZeneca's lung cancer drug, while Currys soared on takeover interest from JD.com and Elliot FTSE . The blue-chip FTSE 100 index (.FTSE) , opens new tab climbed 0.2% to a near seven-week high, while the mid-cap FTSE 250 (.FTMC) , opens new tab index edged 0.1% higher. Trading volumes were low globally as U.S. markets were shut for a public holiday. AstraZeneca (AZN.L) , opens new tab topped the benchmark index with a 3.2% jump after a combination of the drugmaker's cancer drug Tagrisso with chemotherapy to treat a type of lung cancer was approved by the U.S. Food and Drug Administration. A surge in the biopharmaceutical giant's shares propelled the pharma and biotech sector (.FTNMX201030) , opens new tab to an 11-day high. Currys (CURY.L) , opens new tab had its best day on record after soaring 36.4%. Chinese e-commerce group JD.com (9618.HK) , opens new tab said it was evaluating a takeover of the British electricals retailer, laying the ground for a bidding war after the group rejected a rival 700 million pound ($883 million) deal. "The bid battle for Currys has begun as multiple parties throw their hat in the ring," said AJ Bell investment director Russ Mould. "Currys is the last big UK electricals chain with a physical store estate which makes it a unique asset on the domestic stock market." Both of the UK's main stock indexes snapped a two-week losing streak last week amid investors optimism about an early interest rate cut from the Bank of England after domestic economic data signalled slowing inflation. Among sectors, industrial metal miners (.FTNMX551020) , opens new tab were the top losers, falling 1.3% as copper prices slipped after China's central bank held key rates on medium-term loans steady. Meanwhile, the price of homes being put up for sale in Britain has risen in annual terms for the first time in six months, according to an industry survey. https://www.reuters.com/world/uk/ftse-100-muted-receding-rate-cut-bets-astrazeneca-gains-2024-02-19/

2024-02-19 17:11

Rheinmetall up on joint ammo factory in Ukraine Juventus slips as H1 financial loss widens Forvia to shed jobs in Europe UK's Currys soars after China's JD.com joins takeover battle STOXX 600 up 0.2% Feb 19 (Reuters) - Europe's benchmark stock index hit its highest in over two years on Monday on strength in healthcare stocks, while French and German shares lost some steam after scaling record highs last week as economic concerns weighed on sentiment. The pan-European STOXX 600 (.STOXX) , opens new tab closed 0.2% higher, gaining for the fourth day. Trade volumes were light, with U.S. markets shut for a public holiday. Healthcare (.SXDP) , opens new tab climbed 1% to a near two-year high, led by AstraZeneca (AZN.L) , opens new tab which jumped 3.2% after a combination of its blockbuster cancer drug Tagrisso with chemotherapy to treat a type of lung cancer was approved by the U.S. Food and Drug Administration. Meanwhile, basic resources (.SXPP) , opens new tab fell 1% as copper prices dropped after China held key rates on medium-term loans steady and markets focused on the country's ailing property market. France's benchmark index (.FCHI) , opens new tab was flat after the government lowered its 2024 GDP growth forecast to 1% from 1.4% as war in Ukraine and Gaza and a slowdown at top trading partners darkened the outlook. The Bundesbank in a regular monthly report said Germany is likely in recession due to weak external demand, cautious consumers and stalling domestic investment. The benchmark DAX (.GDAXI) , opens new tab was down 0.2%. "Economic uncertainty will create market volatility, but markets are forward looking and the expectations of falling inflation, and in time, falling interest rates have provided a boost to stock markets," said Emma Wall, head of investment analysis and research, Hargreaves Lansdown. The STOXX 600 notched a fourth straight weekly gain on Friday, driven by optimism around robust corporate earnings and hopes of imminent rate cuts by the ECB. Over the course of this week, investors will monitor final inflation data and flash PMI readings for the euro zone and Germany's fourth-quarter GDP to gauge the continent's economic status. Forvia (FRVIA.PA) , opens new tab slumped 12.7%, reversing early gains. The world's seventh-largest automotive supplier plans to cut up to 10,000 jobs in Europe over next five years. Santander (SAN.MC) , opens new tab gained 1.8% following a new share buyback programme and boosted dividend, helping Spain's IBEX 35 (.IBEX) , opens new tab rise 0.6%. Rheinmetall (RHMG.DE) , opens new tab jumped 4.1% on the top artillery producer's plans to open an ammunition factory in Ukraine. Bechtle (BC8G.DE) , opens new tab shed 5.5% after Barclays started coverage of the German IT provider with an "underweight" rating. Telecom Italia (TLIT.MI) , opens new tab gained 5.9% after Bank of America upgraded the stock to "buy" from "hold", pushing the telecommunication index (.SXKP) , opens new tab to a near two-week high. Currys (CURY.L) , opens new tab soared 36.4% as China's JD.com (9618.HK) , opens new tab said it is evaluating a possible offer for the British electricals retailer. https://www.reuters.com/markets/europe/french-stocks-lead-europes-stoxx-600-lower-growth-forecast-downgrade-2024-02-19/