2023-11-27 06:56

Wall St indexes close lower, Europe also declines Gold climbs to six-month high in choppy trade Eyes on U.S. and EU inflation data later this week Oil market tense ahead of delayed OPEC+ meeting NEW YORK/LONDON, Nov 27 (Reuters) - MSCI's global equity index fell on Monday and U.S. Treasury yields fell while investors digested weak U.S. housing data and waited for key inflation readings later in the week. Oil prices also fell, with the Brent settling under $80 a barrel, as investors awaited this week's OPEC+ meeting and expected curbs on supplies into 2024. The U.S. dollar slid against most major currencies, weighed down by expectations that the Federal Reserve is done cutting interest rates and could start cutting them by the first half of next year. In precious metals, gold hit a six-month high with a boost from the softer dollar and expectations for a pause in Fed tightening. Meanwhile, the latest data showed that sales of new U.S. single-family homes fell more than expected in October, likely as higher mortgage rates reduced affordability, but the housing segment remains supported by a shortage of previously owned properties on the market. "A lot of investors are starting to look out into next year. There's a growing sense the economy is slowing, that price growth will likely continue to fall, that profit growth will likely fall," said Jack Ablin, chief investment officer at Cresset Capital, in Chicago. Ablin saw Monday's weak home sales data aligning with concerns about a slowing economy. And he noted deep discounts in stores on Black Friday, which kick-offs holiday shopping, saying "investors are bracing for lower discretionary spending." Investors were also looking ahead to Thursday's release of the Fed's preferred measure of inflation and euro zone consumer inflation figures, to potentially give markets direction. On Wall Street, the Dow Jones Industrial Average (.DJI) fell 56.68 points, or 0.16%, to 35,333.47, the S&P 500 (.SPX) lost 8.91 points, or 0.20%, to 4,550.43 and the Nasdaq Composite (.IXIC) dropped 9.83 points, or 0.07%, to 14,241.02. The pan-European STOXX 600 index (.STOXX) lost 0.34% and MSCI's gauge of stocks across the globe (.MIWD00000PUS) shed 0.19% on the day after rising for four weeks in a row. Stock indexes around the world have gained ground recently as bond yields dropped, with cooling inflation in developed economies boosting investors' expectations that central banks are finished raising interest rates and might soon cut them. Still, European Central Bank President Christine Lagarde said the European Central Bank's fight to contain price growth was not yet done as wage growth was still strong and the outlook was uncertain, but she did point to easing euro zone inflation pressure. In U.S. Treasuries, benchmark 10-year notes fell steadily during the day and were last down 9.9 basis points to 4.385%, from 4.484% late on Friday. "It's the economic data and central bank policy and whatever information comes out within those two areas, those are going to be the areas that are going to move Treasury yields up or down at this point," said Jim Barnes, director of fixed income at Bryn Mawr Trust in Berwyn, Pennsylvania. The U.S. dollar slid against most major currencies and was on track for a monthly decline of more than 3%, which would be its biggest monthly drop in a year. The dollar index , which measures the greenback against a basket for major currencies, fell 0.213%, with the euro up 0.12% to $1.0952. The Japanese yen strengthened 0.55% versus the greenback at 148.63 per dollar, while sterling was last trading at $1.2625, up 0.14% on the day. Oil futures lost ground ahead of an OPEC+ meeting on Thursday where member countries will try to agree on supply curbs into 2024. The meeting was originally slated for Sunday but postponed as producers struggled to agree. U.S. crude settled down 0.9% at $74.86 per barrel and Brent fell 0.7% to end at $79.98. Along with the weaker dollar, investor worries about the Israel-Hamas conflict have boosted gold prices. Spot gold added 0.6% to $2,013.79 an ounce. U.S. gold futures gained 0.5% to $2,011.80 an ounce. https://www.reuters.com/markets/global-markets-wrapup-1-2023-11-27/

2023-11-27 06:56

AHMEDABAD, Nov 27 (Reuters) - Twenty-four people have died by lightning strikes and about 23 have been left injured in rain-related incidents in the western Indian state of Gujarat over the past two days, government officials said, with rains continuing on Monday morning. The state was hit by heavy rainfall accompanied by thunderstorms and hailstorms on Sunday and Monday, with some places receiving up to 144 mm (5.7 inches) of rain in the 24 hours ending Monday morning, according to state government data. The rains caused damage to houses and loss of cattle across the state. "We will begin a survey soon to assess the loss suffered," Gujarat Agriculture Minister Raghavij Patel said on Monday, adding that compensation will be paid to victims on the basis of the survey's results. The India Meteorological Department (IMD) has forecast rainfall to continue in parts of the state on Monday. Gujarat is not unfamiliar with rain-related calamities. In August 2020, 14 people died in the state over just two days in various incidents related to heavy rains and flooding. A year previously, in August 2019, 31 people died in the state in rain-related incidents. https://www.reuters.com/world/india/lightning-strikes-indias-gujarat-kill-24-2023-11-27/

2023-11-27 06:42

Traders look ahead to Thursday's PCE data U.S. dollar hovers near three-month low Silver hits highest since Aug. 30 Nov 27 (Reuters) - Gold hit a six-month high on Monday as a softer dollar and expectations of a pause in the Federal Reserve's monetary tightening helped bullion consolidate above the key $2,000 an ounce level. Spot gold was up 0.5% at $2,012.34 per ounce by 3:01 p.m. ET (2001 GMT), after reaching its highest since May 16. U.S. gold futures settled 0.5% higher at $2012.4. The dollar (.DXY) hovered near a three-month low, making greenback-priced gold less expensive for holders of other currencies. Gold is likely to trade around $2,000 for a little bit until we get some more information from the Fed on its plan on interest rates, said Bob Haberkorn, senior market strategist at RJO Futures. "Gold will trade higher if they are done with rate hikes for the time being." Traders widely expect the U.S. central bank to hold rates in December, while pricing in about a 50-50 chance of easing in May next year, CME's FedWatch Tool shows. Lower interest rates reduce the opportunity cost of holding non-interest-bearing assets, often boosting gold prices. Investors' attention will be on the U.S. third-quarter GDP figures on Wednesday and the personal consumption expenditures (PCE) price index due on Thursday, the Fed's preferred inflation gauge. "Economic figures coming out of the U.S. this week, both on the growth and inflation front, will make or break a case for whether gold remains above $2,000," said Kyle Rodda, a financial market analyst at Capital.com. On the physical front, data showed that top consumer China's net gold imports via Hong Kong fell for a second consecutive month in October as a patchy economic recovery weighed on demand in the key bullion market. Silver jumped 1.3% to a nearly three-month high at $24.62 per ounce. Platinum fell 1.3% to $918.51 and palladium was down 0.2% at $1,071.32. https://www.reuters.com/markets/commodities/gold-atop-6-month-peak-softer-us-dollar-bets-fed-pause-2023-11-27/

2023-11-27 06:35

Nov 27 (Reuters) - Sanofi (SASY.PA) plans to seek U.S. approval for its best-selling anti-inflammatory drug Dupixent to be used in the treatment of "smoker's lung", also known as COPD, after a second large trial showed significant benefits. Sanofi, which is collaborating on the drug with Regeneron (REGN.O), said in a statement on Monday that a second Dupixent phase 3 trial for chronic obstructive pulmonary disease showed the drug reduced exacerbations of the disease by 34%. The findings were from an interim analysis after positive results from a first trial known as BOREAS. Given "overwhelming" efficacy, they will be considered to serve as the primary analysis of the trial, the company said, adding details would be presented at an as yet undisclosed medical conference. Sanofi and Regeneron, which have been testing the drug on current and former smokers who can't control their COPD with established inhalers, had embarked on the second trial to bolster the statistical reliability of the read-outs. COPD, which damages the lungs progressively, is the third leading cause of death worldwide. It can also be caused by air pollution and related occupational hazards. Sanofi shares rose as much as 2.6% and were up 0.9% by 0953 GMT. "Given widespread niggling doubts the BOREAS readout would not be replicated, these...headlines should be well received," analysts at Jefferies said. Sanofi said it would file its request with the Food and Drug Administration (FDA) by the end of the year. The European Union's drug regulator is already working on a similar request based on the BOREAS data. Using Dupixent for COPD could add billions to the French drugmaker's growth prospects. It would, however, also increase its already heavy reliance on the drug which is currently used to treat eczema, asthma and other inflammatory conditions. Sanofi's stock plunged at the end of October, wiping 20 billion euros off its market value, after it abandoned its 2025 profit target under a plan to list its consumer healthcare business and spend more money on developing innovative drugs. The company has been discussing with major watchdogs across the world whether the BOREAS results were substantial enough to support a regulatory review and what role the second trial would play in reviews. Sanofi has previously said it expects peak annual sales of Dupixent of more than 13 billion euros ($14.2 billion) but analysts have forecast on average that revenue would be well above that in 2025 and at around 18 billion euros in 2027. Sanofi said about 300,000 people in the United Sates, have uncontrolled COPD that is characterised by an inflammation known as type 2, the focus of the two trials. AstraZeneca, a maker of established inhalers to ease the lung disease, said in April it would spend about $450 million on a factory for devices in China to serve a major COPD market. https://www.reuters.com/business/healthcare-pharmaceuticals/sanofi-looks-widen-dupixent-use-treat-smokers-lung-after-second-trial-win-2023-11-27/

2023-11-27 05:59

Oct exports up 8.0% vs 9.3% y/y rise in Reuters poll Oct imports up 10.2% y/y vs forecast 6% rise Oct trade deficit at $0.83 bln vs forecast $0.53 bln surplus Exports seen -1% this year, +2% next year - ministry BANGKOK, Nov 27 (Reuters) - Thailand's exports (THCEX=ECI) in October rose at the fastest annual pace in more than a year but less than expected, and the commerce ministry said on Monday full-year exports would still show a small contraction. Customs-based exports (THCEX=ECI), a key driver of Thailand's economy, climbed 8.0% in October from a year earlier, the fastest since June 2022, compared with a forecast rise of 9.3% on-year in a Reuters poll. "The growth was supported by the gradual recovery of demand during the year-end festive season," the ministry said in a statement, adding China's economic stimulus measures were also supportive. The export gains were helped by higher shipments of agricultural products and industrial goods, the ministry said. The ministry anticipated that the export momentum to continue into next year, Keerati Rushchano, the ministry's permanent secretary, told a briefing. "We expect exports in the remaining two months of this year and next year to remain in a better direction ... as the global economy is improving," he said. Exports, however, are expected to contract 1% this year before rising 2% next year, Keerati said. Exports declined 2.7% year-on-year in the first 10 months of 2023. Chaichan Chareonsuk, chairman of the Thai National Shippers' Council, said he forecast exports would rise 7% on-year in the final quarter of 2023 but fall 1% for the full year. In October, exports of agricultural products rose 12.3% year-on-year, while industrial goods shipments rose 5.4%. Rice export volumes rose 5.6% year-on-year, with export value up 38%. Exports to the United States increased 13.8% year-on-year in October while shipments to Southeast Asian countries climbed 4.5%. Exports to Japan fell 1.1% on-year and shipments to China rose 3.4%. In October, Thailand posted a trade deficit (THCTR=ECI) of $0.83 billion, compared with a forecast surplus of $0.53 billion, while imports rose 10.2% from a year earlier. In the January-October period, imports dropped 4.6% year-on-year and the trade deficit stood at $6.67 billion. https://www.reuters.com/markets/asia/thai-october-exports-rise-80-yy-missing-forecast-2023-11-27/

2023-11-27 05:40

HANOI, Nov 27 (Reuters) - Vietnam is finalising reform commitments with G7 governments and multilateral lenders that could unlock billions of dollars in loans to reduce coal use in the Southeast Asian manufacturing hub, according to foreign officials familiar with the talks. The document, known as Resource Mobilisation Plan, has to be agreed with investors ahead of the UN Climate Change Conference (COP28) which begins on Thursday in Dubai. "Some work (is) still ongoing, mainly on changes to regulatory framework and obstacles for investments," one foreign official said, noting however that the document was expected to be agreed in time. Vietnam's Prime Minister Pham Minh Chinh will attend the COP28 from Nov 30 to Dec 3, the government portal said, raising expectations that the plan could be announced there. A second foreign official said there was no major issue pending, and approval of the final version "is very nearly there." Both foreign officials declined to be named as they were not authorised to speak on the record to media. Vietnam's environment ministry and the Prime Minister's office did not immediately reply to requests for comment. Reuters has not seen the latest version of the plan. A draft from late October, reviewed by Reuters, listed Vietnam's commitments and over 400 projects which could receive money from Group of Seven (G7) members, including 272 on energy infrastructure such as power grid upgrades, wind and solar farms. Under an agreement reached last year with foreign investors, mostly from G7 members, Vietnam would receive $15.5 billion, largely in commercial loans at market rates over three-five years, to boost the use of renewables and cut dependence on coal. There is no certainty that Vietnam would actually take the loans on offer, and the communist government has been reluctant to take foreign loans in the past. In 2020, coal accounted for 31% of Vietnam's installed capacity, and it plans to reduce that share to 20% by 2030, though in terms of consumption Vietnam will burn more coal. Domestically mined coal and imports totalled 80 million tons in the first 10 months of this year - imports accounted for about half the total - putting the country among the world's top 20 consumers. The government plans to expand its capacity of coal-fired power plants to over 30 GW by 2030, from about 21 GW in 2020. It has committed to stop developing coal-fired power plants after 2030. Foreign investors have long tried to enhance Vietnam's commitments on reforms and expressed concerns at the country's plan to reduce coal only after boosting its installed capacity until 2030. They are betting on offshore wind to partly offset coal but Hanoi listed in its October draft offshore wind regulations as "potential" actions to be finalised in 2025, which would mean the sector's 2030 targets would likely be missed. https://www.reuters.com/business/environment/g7-vietnam-making-final-tweaks-climate-plan-ahead-cop28-sources-2023-11-27/