2023-12-29 11:04

BERLIN, Dec 29 (Reuters) - Hapag-Lloyd (HLAG.DE) has decided to continue diverting its vessels around the Suez Canal for security reasons, a spokesperson for the German container shipper told Reuters on Friday, adding a next assessment would be made on Jan. 2. Shipping giants including Hapag-Lloyd and Denmark's Maersk (MAERSKb.CO) earlier this month stopped using Red Sea routes and the Suez Canal after Yemen's Houthi militant group began targeting vessels, disrupting global trade. Instead, they rerouted ships around Africa via the Cape of Good Hope to avoid attacks, charging customers extra fees and adding days or weeks to the time it takes to transport goods from Asia to Europe and to the east coast of North America. The Suez Canal situation remains fast changing, however, and Maersk is planning to sail almost all container vessels travelling between Asia and Europe through the Suez Canal from now on while diverting only a handful around Africa, a Reuters breakdown of the group's schedule showed on Thursday. The Suez Canal is used by roughly one-third of global container ship cargo, and re-directing ships around the southern tip of Africa is expected to cost up to $1 million extra in fuel for every round trip between Asia and Northern Europe. https://www.reuters.com/world/middle-east/hapag-lloyd-will-continue-divert-vessels-suez-canal-2023-12-29/

2023-12-29 11:03

SINGAPORE, Dec 29 (Reuters) - China has issued its first refined fuel export quotas for 2024 totalling 19 million metric tons, a volume unchanged from last year's and largely in line with market expectations, Chinese consultancies and multiple trading sources said on Friday. The quotas, which compared with the 18.99 million tons released in the first batch of such quotas last year, were reported by consultancies JLC and Longzhong, both of which have closely tracked Beijing's fuel quota policy in recent years. China manages its refined oil exports via a strict quota system, using exports as a tool to balance and ensure the domestic market is sufficiently supplied. State oil companies Sinopec and CNPC, the top recipients of the quotas that cover diesel, gasoline and aviation fuel, together were granted 13.22 million tons or nearly 70% of total, according to the two consultancies. Zhejiang Petrochemical Corp remains the only private refiner allotted with the refined fuel export quota totalling 1.73 million tons. China also released a first tranche of low-sulfur fuel oil (LSFO) quotas amounting to 8 million tons, the same level as last year's, 90% of which went to Sinopec and CNPC, traders with knowledge of the issue said. They spoke on condition of anonymity. China's domestic demand for gasoline is expected by international agencies to peak in 2024. Sinopec previously said that domestic gasoline demand could have peaked in 2023 following the increased market penetration of electric vehicles. Domestic demand for diesel has similarly weak growth prospects, as weakness in the country's property market and construction sector weighs on consumption. Despite this, Chinese gasoline and diesel exports were capped in late 2023 by a lack of available quotas. China's commerce ministry did not immediately respond to a faxed request for comment. During the first 11 months of this year, China exported nearly 39 million tonnes of refined fuel, including 14.3 million tons of jet fuel which expanded 56% year-on-year and 13.1 million tons of diesel that was up 61% from year-earlier amount. https://www.reuters.com/business/energy/chinas-first-2024-refined-fuel-export-quotas-flat-year-ago-2023-12-29/

2023-12-29 11:01

Dec 29 (Reuters) - American drivers can expect lower motor fuel costs for a second-straight year in 2024 as a jump in global refining capacity and a surplus in U.S. gasoline stocks drive down retail prices, according to analysts' forecasts. The U.S. national average retail gasoline price could drop by 13 cents next year to $3.38 a gallon, according to price tracker GasBuddy.com's annual outlook. The U.S. Energy Information Administration is expecting a bigger, 17-cent drop in next year's average pump price, according to its latest short-term forecast. Lower gasoline bills free up money for consumers to spend elsewhere and could help the U.S. avoid a recession next year. The national average price of gasoline crossed $5 a gallon for the first time in June 2022, lifting inflation to a 40-year record. Lower gasoline prices helped push U.S. consumer confidence to a five-month high in December, prompting many consumers to plan purchases of motor vehicles, houses and major appliances over the next six months, according to a report this month by the think-tank Conference Board. "Gas prices really highlight how Americans feel about the economy. It is the one commodity that everyone knows the price for whether they need it or not," GasBuddy analyst Patrick De Haan said. U.S. fuel stocks have built rapidly since mid-November, with refiners adding over 10 million barrels of gasoline to storage since Nov. 17, according to EIA data. In the U.S. Midwest, gasoline inventories are at their highest level since April 2022, while refinery utilization in that region climbed to its highest level on record last week, the EIA said on Thursday. "U.S. gasoline inventories are now higher than this time last year, which we expect to be true in January 2024 as well," the EIA said earlier this month. At the same time, more than 1 million barrel per day of new refining capacity is set to come online this year in China, India, Mexico, the Middle East and Nigeria. "The global refining picture continues to improve, providing more capacity and peace of mind that record-setting prices will stay away from the pump this year," De Haan said. https://www.reuters.com/business/energy/us-drivers-hope-lower-pump-prices-2024-gasoline-stocks-climb-2023-12-29/

2023-12-29 10:58

MUMBAI, Dec 29 (Reuters) - The bull-run in Indian financial markets is likely to continue in 2024 as foreign interest remains robust, with heavy buying expected in both equity and debt markets, several analysts and industry watchers said. India's inclusion in the JPMorgan emerging market debt index will boost investments in government debt, while attractive valuations will keep funds flowing into the share market. "I expect shares to see inflows of around $30 billion in 2024, with front-loading in the January-March quarter," Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies in Mumbai, said. "For 2024, earnings growth would be around 15%, and the index would also grow around 15% from where it ends in December." Overseas investors bought Indian shares worth net $20.7 billion in 2023 until Dec. 28, the highest since 2020, while their net debt purchases stood at $8 billion, according to data from National Securities Depository. India's benchmark BSE Sensex (.BSESN) rose 19% in 2023, while the wider Nifty 50 (.NSEI) gained 20%, with both indexes hitting record highs in late December, because of upbeat economic data and companies' performance, traders said. The Federal Reserve's pivot towards rate cuts has also buoyed emerging markets, they added. Banks, information technology firms and metals will lead India's stock rally, with some push from defense and renewables, Andrew Holland said. Sreekanth Nadella, MD and CEO at financial management firm KFintech expects foreign inflows in healthcare to trigger outperformance in that sector. Financials, which have been lagging, could also attract higher flows, Nadella added. Meanwhile, India's bonds will be boosted as JPMorgan adds some government securities to its emerging market index from June. "We are positive on India into the next year as foreign inflows will pick up on the back of bond index inclusion," Jean-Charles Sambor, Head Emerging Markets, Fixed Income at BNP Paribas Asset Management, said. India's 10-year benchmark bond yield was down 15 basis points in 2023, following a 143-basis-points rise in the previous two years. Though the Reserve Bank of India (RBI) is unlikely to start cutting rates until April-June, investors expect bond yields to fall on rate cut hopes. The 10-year bond yield could fall to 7% over the next six months, Sampath Reddy, chief investment officer at Bajaj Allianz Life Insurance, said. The Indian rupee will continue trading sideways as the RBI could absorb a bulk of the inflows, traders said. The rupee declined for a sixth year in a row in 2023, with its volatility hitting near 20-year lows on the back of persistent central bank intervention, they added. https://www.reuters.com/world/india/indian-shares-bonds-seen-rallying-2024-continued-foreign-inflows-2023-12-29/

2023-12-29 10:26

Gold set to gain 13% to mark best year in three Silver eyes small yearly decline, platinum down more than 7% Palladium down 38% so far this year - biggest drop since 2008 Dec 29 (Reuters) - Gold prices held steady on Friday as they headed towards the end of their best year since 2020 at levels comfortably above $2,000 an ounce, buoyed by hopes the U.S. Federal Reserve could cut interest rates as early as March. Spot gold was at $2,064.34 per ounce by 2:10 p.m. ET (1910 GMT), little changed from the previous session. U.S. gold futures settled 0.6% lower at $2,071.80. Bullion has so far risen 13% in a year that saw prices swing between lows near $1,800 and a record high of $2,135.40. "The ship is moving towards calmer waters, so to speak - a lower rate environment, which means a lower dollar, and so gold should do better," Marex analyst Edward Meir said. Gold investors anticipate record-high prices next year, when the fundamentals of a dovish pivot in U.S. interest rates, continued geopolitical risk, and central bank buying are expected to support the market. "To see higher levels, we need to see stronger demand from investors, such as a pickup in ETF inflows. For that weaker U.S. economic data and lower inflation is needed, so that the Fed sounds more dovish," UBS analyst Giovanni Staunovo said. Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar. The dollar index (.DXY) was headed for a 2% decline in 2023, while benchmark 10-year Treasury yields languished near their lowest levels since July. "The rest of the precious metals complex hasn't shared in gold's good fortune and gold prices are quite elevated, given the nominal level of interest rates," said Tai Wong, a New York-based independent metals trader. Spot silver fell 0.5% to $23.82 per ounce, looking set for a 0.6% yearly decline. Platinum fell 1.2% to $990.75, while palladium dropped 2.7% to $1,102.54. Both autocatalytic metals were on track to end the year lower, with palladium down 38% - its biggest drop since 2008. The palladium market is in a surplus next year and not in a sweet spot for the future due to the shift to electric vehicles, which don't need the metal, Meir said. https://www.reuters.com/markets/commodities/gold-headed-best-year-since-2020-fed-rate-cut-prospects-2023-12-29/

2023-12-29 10:01

FTSE 100 up 0.2%, FTSE 250 off 0.2% Both indexes on track for longest weekly streak since April Aerospace and defence led yearly gains FTSE 100 set for three-year win streak Dec 29 (Reuters) - UK's benchmark FTSE 100 edged higher on the last day of trading in 2023, supported by a rise in industrial metal miners and energy stocks on higher copper and crude prices, while a drop in precious metal miners capped gains. At 09:12 GMT, the blue-chip FTSE 100 (.FTSE) edged 0.2% higher, on track to extend gains to a fifth week. The FTSE 250 mid-cap index (.FTMC) was down 0.2%, although set for a fourth straight week of gains. Both indexes marked their longest-running weekly streak since early April. Industrial metal miners (.FTNMX551020) rose 0.5%, leading sectoral gains on higher copper prices as the prospect of U.S. interest rate cuts brightened the outlook for most metals. Heavyweight oil and gas (.FTNMX601010) added 0.4% on higher oil prices. Top decliner precious metal miners (.FTNMX551030) dropped 0.7%, and was on track for a yearly decline of nearly 11%. Meanwhile, data showed British house prices dropped more than expected in the year but a fall in mortgage rates in recent weeks has led to signs that the market might have bottomed out. The real estate (.FTUB3510) sector slipped 0.4%. Although battling one of the stickiest inflation trends through the year and almost slipping into a recession by the end of it, British equities were resilient, logging in yearly gains. The FTSE 100 added over 3.5%, its third consecutive yearly gain while mid-cap stocks snapped the previous year's declines to climb over 4% through 2023. "So far, it looks as though the FTSE 100 will have moved largely sideways for the year, thanks in large part to extreme uncertainty and the upwards march of interest rates," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. During the year, the aerospace and defence (.FTNMX502010) sector led gains, soaring over 67%. In company news, iron ore pellet producer Ferrexpo (FXPO.L) shares rose 5.1% after the company posted an end-of-year report. The UK markets will be closed on January 1, on account of New Year's holiday. https://www.reuters.com/world/uk/london-stocks-set-weekly-gains-miners-lift-2023-12-29/