2023-12-28 05:45

MUMBAI, Dec 28 (Reuters) - The Indian rupee was slightly up on Thursday, thanks to the U.S. Federal Reserve's rate cut expectations, with some analysts reckoning that factor will contribute to the currency seeing a rally in 2024. The rupee was quoted at 83.2650 to the U.S. dollar by 11:10 a.m. IST, up from 83.3450 on Wednesday, helped by the dollar index's drop to 101.76 and an uptick in Asian currencies. The local unit is down 0.7% year-to-date, on course to post its sixth straight annual decline. This losing run is likely to come to a halt in 2024, according to some analysts. "Given our view that the U.S. Fed will cut rates more aggressively next year than currently priced in by markets, we think that the rupee will strengthen against the U.S. dollar," Capital Economics said in a note. It expects the rupee to climb to 78 to the dollar by end-2024. The market has currently priced in about six Fed rate cuts in 2024 as inflation and growth both slow , while the central bank has forecast only three. "A big part of how rupee and other EM currencies perform next year will primarily depend on how the Fed's easing cycle shapes up in relation to what is currently expected," an analyst at a private sector bank said. The rupee "so far had not participated" in the dollar's drop, based on the Fed view, "but it could be very different" in 2024, he added. He did not spell out a specific target for the rupee, but said that a "minimum of" 2% to 3% appreciation was on the cards. https://www.reuters.com/markets/currencies/rupee-inches-up-some-analysts-see-significantly-better-2024-2023-12-28/

2023-12-28 04:46

Brent, WTI futures fall more than $2 per barrel Shipping firms prepare to resume journeys through Suez Canal US crude oil stocks fell by 7.1 million barrels last week - EIA BENGALURU, Dec 28 (Reuters) - Oil prices fell 3% on Thursday as more shipping companies said they were ready to transit the Red Sea route, easing concerns about supply disruptions as Middle Eastern tensions stay elevated. The more active Brent crude futures for March delivery settled down $2.39, or 3%, at $77.15. Brent futures for February delivery , which expired after settlement, fell 1.3% to $78.39 a barrel. U.S. West Texas Intermediate crude futures fell by $2.34, or 3.2%, to $71.77 a barrel. On Wednesday, oil prices dropped nearly 2% as major shipping firms began returning to the Red Sea. Denmark's Maersk (MAERSKb.CO) will route almost all container vessels sailing between Asia and Europe through the Suez Canal from now, and divert only a handful around Africa, a Reuters breakdown of the group's schedule showed on Thursday. France's CMA CGM is also increasing the number of vessels travelling through the Suez Canal, it said earlier in the week. "The perception is that the Red Sea route is reopening and will bring supply to market weeks faster," Price Futures Group analyst Phil Flynn said. Major shipping companies stopped using Red Sea routes and the Suez Canal earlier this month after Yemen's Houthi militant group began targeting vessels. The U.S. Energy Information Administration reported a much larger-than-expected draw in U.S. crude oil inventories last week, which limited price declines for awhile. Later, prices fell further, likely as traders focused on a bulk of the draw coming from the U.S. Gulf Coast region, where refiners are scrambling to clear inventories to avoid high taxes on storage at the end of the year, UBS analyst Giovanni Staunovo said. U.S. crude stockpiles fell by 7.1 million barrels in the week ended Dec. 22, EIA data showed, while analysts polled by Reuters had expected a draw of 2.7 million barrels. Crude oil stocks at the U.S. Gulf Coast fell by 11.03 million barrels, the biggest decline since Aug, the data showed. Investors expect interest rate cuts in Europe and the U.S. in 2024, which could boost oil demand. https://www.reuters.com/business/energy/oil-prices-rise-amid-fears-over-escalating-tensions-middle-east-2023-12-28/

2023-12-28 02:43

MUMBAI, Dec 28 (Reuters) - The Indian rupee is expected to open higher on Thursday following a further slide in the U.S. dollar on bets the U.S. central bank will most likely cut interest rates in the next quarter. Non-deliverable forwards indicate the rupee will open at around 83.26-83.28 to the U.S. dollar, compared with 83.3450 in the previous session. USD/INR had its best day in nearly three months on Wednesday, likely related to monthly currency futures-linked dollar demand, traders said. For once, "there was a decent move on one side", and "now it looks like it will be snuffed out," an fx spot trader said. "I think the opening dip (on USD/INR) will see a bit of buying, and offers will pick up in the afternoon." Asian currencies rose and the dollar index added to the fall during the Europe and U.S. trading sessions on Wednesday. The dollar index, marred by expectations of aggressive rate cuts by the Fed, has lost 2.5% this month and is at the lowest since July. There is mounting confidence that the Fed will be cutting interest rates in the first quarter of 2024. The odds of a rate cut at the March meeting is now more than 80% and there is a 1-in-6 likelihood of one in January. A few analysts think that expectations of investors around rate cuts are likely misplaced. "We believe that the market expectation of 5-6 cuts next year are too aggressive given the current health of the U.S. economy," said Srinivas Puni, managing director at QuantArt Market Solutions. "New Year data related to US jobs and then inflation are the next major events (for USD/INR." KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.33; onshore one-month forward premium at 8 paise ** Dollar index down at 100.82 ** Brent crude futures up 0.2% at $79.8 per barrel ** Ten-year U.S. note yield at 3.81% ** As per NSDL data, foreign investors bought a net $64.6mln worth of Indian shares on Dec. 26 ** NSDL data shows foreign investors sold a net $117.5mln worth of Indian bonds on Dec. 26 https://www.reuters.com/markets/currencies/rupee-propped-by-more-dollar-losses-dovish-fed-outlook-2023-12-28/

2023-12-28 01:35

MONROVIA, Dec 27 (Reuters) - At least 40 people have died following the explosion of a gas tanker in north-central Liberia, the West African country's chief medical officer, Francis Kateh, said on Wednesday. The fuel truck crashed late on Tuesday in Totota, Lower Bong County, and soon after exploded, killing and injuring many who had flocked to the scene. Dozens of people are still in hospital with serious burns, and the death toll could rise, Kateh told reporters. Poor road safety and weak infrastructure have made Sub-Saharan Africa the world's deadliest region for crashes, with the fatality rate three times higher than the European average, according to United Nations figures. https://www.reuters.com/world/africa/least-40-killed-liberian-fuel-tanker-blast-says-official-2023-12-28/

2023-12-27 23:19

Bit Digital climbs on plans to expand mining operations Coherus BioSciences gains on drug-delivery device approval S&P 500 yet to confirm bull market Indexes up: Dow 0.30%, S&P 0.14%, Nasdaq 0.16% NEW YORK, Dec 27 (Reuters) - U.S. stocks closed slightly higher in languid trading on Wednesday, with little market-moving news to fuel conviction as the S&P 500 hovered just below bull market confirmation. The three major U.S. stock indexes oscillated between modest gains and losses throughout the session but finished up for the day. All are on course for monthly, quarterly, and annual gains. The S&P 500 ended 0.3% below its record closing high of 4,796.56 reached on Jan. 3, 2022. The Dow notched a new record closing high. "When you have very few catalysts and minimal trading activity you tend to see continuation of the trends," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "We’ve got three days left of trading in the year," Carlson added. "That means three days left of tax harvesting, three days of portfolio window dressing ... those sort of things can get magnified because of the lack of trading volume." Reaching a new record close would confirm the bellwether index entered a bull market when it reached the bear market closing trough in October 2022. "Those kind of milestones are important because they can generate activity for investors who are sitting on the fence," Carlson said. In the wake of Friday's cooler-than-expected U.S. PCE price index data, bets are firming that the Fed will start issue its first rate cut as soon as March, which is supporting interest rate sensitive shares and giving Wall Street's major indexes an upward bias. At last glance, financial markets have priced in a 73.9% probability that policymakers will reduce the Fed funds target rate by 25 basis points at the conclusion of their March policy meeting, according to CME's FedWatch tool. The Dow Jones Industrial Average (.DJI) rose 111.19 points, or 0.3%, to 37,656.52, the S&P 500 (.SPX) gained 6.83 points, or 0.14%, to 4,781.58 and the Nasdaq Composite (.IXIC) added 24.60 points, or 0.16%, to 15,099.18. Among the 11 major sectors in the S&P 500, real estate (.SPLRCR) enjoyed the largest percentage gain, while energy shares (.SPNY), weighed down by falling crude prices, lost the most. Shares of Bit Digital (BTBT.O) jumped 18.6% following the bitcoin miner's announcement that it plans to double its mining operations. Coherus BioSciences (CHRS.O) rose 23.6% after the U.S. Food and Drug Administration approved its drug delivery device for its infection-fighting treatment. First Wave BioPharma shares (FWBI.O) surged 49.6% after the drug developer agreed to sell its inflammatory bowel disease drug to an undisclosed company. Cytokinetics (CYTK.O) soared 82.6% after its experimental heart disease drug met the main goal of late-stage study, putting it on track to compete with a rival treatment from Bristol Myers Squibb (BMY.N). Advancing issues outnumbered declining ones on the NYSE by a 1.86-to-1 ratio; on Nasdaq, a 1.46-to-1 ratio favored advancers. The S&P 500 posted 50 new 52-week highs and no new lows; the Nasdaq Composite recorded 218 new highs and 60 new lows. Volume on U.S. exchanges was 11.96 billion shares, compared with the 12.67 billion average for the full session over the last 20 trading days. https://www.reuters.com/markets/us/futures-subdued-due-lack-fresh-catalysts-year-end-2023-12-27/

2023-12-27 22:52

CHISINAU, Dec 27 (Reuters) - Russian President Vladimir Putin must be stopped in his war against Ukraine or all of Europe will pay a much higher price, Moldova's pro-European president, Maia Sandu, said in an interview published on Wednesday. Sandu has long denounced Russia's invasion of Ukraine and singles out the Kremlin as the biggest threat facing her country, which lies between Ukraine and EU member Romania. Russia accuses her of torpedoing good relations and fomenting Russophobia. "You must understand that Putin will not stop unless he is stopped," Sandu told the Romania-based media group Veridica. "And unless he is stopped, the costs will be far higher for all of us. It is Ukraine that is making the greatest sacrifice." It was in everyone's interest, "not just Ukraine and Moldova," that Ukraine continues to receive assistance, though she made no direct reference to procedural delays in funding from both the United States and European Union. "I also count on and believe in the solidarity of world democracies, and I hope Ukraine will continue to receive every manner of support it needs," she told Veridica. Moldova, she said, was helping all it can, training engineers and supporting the 80,000 Ukrainian nationals who had sought refuge in her country - the highest proportion to local population in Europe. Half of those refugees are children. The European Union this month agreed to open membership talks with both Moldova and Ukraine - a long process requiring candidates to upgrade legislation and meet EU standards. Since defeating her pro-Russian predecessor in 2020, Sandu has led a drive for Moldova, one of Europe's poorest countries, to join the European mainstream. She said this week she would seek re-election next year and asked parliament, controlled by her allies from the Party of Action and Solidarity, to organise a referendum to endorse her policies. https://www.reuters.com/world/europe/moldovas-president-says-putin-must-be-stopped-2023-12-27/