2023-11-06 02:45

MUMBAI, Nov 6 (Reuters) - The Indian rupee is expected to rise at open on Monday after softer-than-expected U.S. jobs data reinforced expectations that the Federal Reserve will not hike interest rates further. Non-deliverable forwards indicate the rupee will open at around 83.08-83.12 to the U.S. dollar compared with 83.2850 in the previous session. "Taking into account how low volatility has been, that is a decent sized move at open," a forex trader at a bank said. "The question now will how much of the opening move actually sticks." Asian currencies extended last week's advance after the dollar index slumped on Friday following data that indicated that the U.S. labor market was cooling. U.S. non-farm payrolls increased by 150,000 jobs last month after rising by 297,000 in September and compared with a 180,000 increase expected by economists polled by Reuters. Further, the unemployment rose and fewer jobs were added in August and September than was previously estimated. The 10-year U.S. Treasury yield dropped to the lowest in more than a month. The odds of a Fed rate hike at the December meeting are now at just 10%, down from 20% a week and 30% a month back, according to the CME FedWatch Tool. "Last week’s Fed meeting and latest data flow suggest the rate hike cycle is most likely over. This development will provide much-needed respite to Asia’s currency and bond markets," DBS Research said in a note. The Korean won, the Thai baht and the Malaysian ringgit climbed at least 1% each. "It's to be fully expected that the rupee will underperform in times when the dollar is under stress," the forex trader said. Meanwhile, India's foreign exchange reserves rose by $2.6 billion to a one-month high of $586.1 billion in the week ending Oct. 27, thanks largely to the Reserve Bank of India's swap maturity. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.14; onshore one-month forward premium at 5.5 paise ** Dollar index at 105.06 ** Brent crude futures up 0.6% at $85.4 per barrel ** Ten-year U.S. note yield at 4.59% ** As per NSDL data, foreign investors sold a net $142.7 mln worth of Indian shares on Nov. 2 ** NSDL data shows foreign investors bought a net $131.7 mln worth of Indian bonds on Nov. 2 https://www.reuters.com/markets/currencies/india-rupee-rally-after-data-reaffirms-fed-done-with-rate-hikes-2023-11-06/

2023-11-05 22:36

LONDON, Nov 5 (Reuters) - The British government plans to legislate to mandate annual North Sea oil and gas licensing rounds, in a move Prime Minister Rishi Sunak says would create certainty for the industry during a transition to greener energy. In July the government said more than 100 new oil and gas licences in the North Sea would be granted, and the new legislation on future rounds will be set out on Tuesday when King Charles outlines the government's legislative agenda at the start of a new parliamentary session. Sunak has said the new licences are compliant with the government's environmental targets, and the requirement for new rounds each year will be conditional on domestic production being greener than imported alternatives. "Domestic energy will play a crucial role in the transition to net zero," Sunak said, adding the legislation would provide "clarity and certainty". Sunak is hoping to use the King's Speech on Tuesday to gain positive momentum ahead of a national election expected next year, with the opposition Labour party currently enjoying a double-digit lead in opinion polls. He has sought to differentiate the government from Labour on green issues, delaying a ban on petrol cars and easing a transition away from gas boilers, while sticking with a legally binding target of hitting net zero by 2050. Labour has said it will stop issuing new oil and gas licences in the North Sea, though it will respect any that are granted before any election. Under the government's proposals, the North Sea Transition Authority (NSTA) will be required to invite applications for new production licences on an annual basis. The licensing rounds would only go ahead if Britain is projected to import more oil and gas from other countries than it produces at home and if the production of UK gas is associated with lower emissions than importing liquefied natural gas (LNG), the government said. https://www.reuters.com/business/energy/britain-legislate-annual-north-sea-oil-gas-licence-rounds-2023-11-05/

2023-11-05 21:46

Nov 6 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Asia is poised to start this week as it finished last week, with risk assets and investor sentiment buoyed by growing confidence in the U.S. economic 'soft landing', and easing financial conditions from the slide in the dollar and U.S. bond yields. The regional economic and policy events calendar this week is jammed with top-tier releases which are sure to give local assets strong steers, especially from China. October's import and export figures are released on Tuesday, and Thursday sees the release of bank lending and credit, money supply, producer price inflation and consumer price inflation, all for October also. China's economic surprises index turned positive three weeks ago but despite stronger-than-expected third quarter GDP growth, that momentum has faded. This week's 'data dump' will give a clearer picture of how the economy started the fourth quarter. Elsewhere in Asia, the main economic indicators this week will be the latest consumer inflation readings from Thailand, the Philippines and Taiwan, and third quarter GDP from the Philippines, Hong Kong and Indonesia. Indonesian GDP figures and Thai inflation figures are out on Monday. Indonesia's quarter-on-quarter growth rate is expected to more than halve to 1.71% from 3.86%, according to a Reuters poll, and annual growth is expected to essentially hold steady just above 5%. The rupiah last week snapped an eight-week losing streak, picking itself up from a three and a half year low of almost 16,000 per dollar. The Thai baht, meanwhile, climbed 1.5% on Friday for one of its strongest rallies this year. Further progress on inflation could pave the way for it to move further away from last month's one-year low around 37.20 per dollar. On the policy front, the Reserve Bank of Australia's rate decision on Tuesday is the regional highlight of the week. Economists polled by Reuters expect the benchmark cash rate to be raised by 25 basis points to 4.35%, breaking a run of four meetings on hold as inflation proves surprisingly strong. Also on Tuesday the Bank of Korea publishes the minutes from its last policy meeting and on Thursday the Bank of Japan releases a summary of board members' opinions from its Oct. 30 to 31 policy meeting. Japanese corporate earnings are in full flow this week, with banks and financial firms likely to come under particular scrutiny in light of the policy shift the BOJ is currently undertaking. With the yen still weak around 150 per dollar, could the Nikkei soon retest its recent 33-year high? While Asian and emerging stocks last week had their best weeks since July, gaining around 3%, they underperformed their U.S. and global peers, which gained 5% or more. Given the scale of the dollar's and Treasury yields' decline on Friday, there may be room for emerging and Asian markets to catch up and maybe even outperform this week. Here are key developments that could provide more direction to markets on Monday: - Indonesia GDP (Q3) - Thailand CPI inflation (October) - Japan services, composite PMIs (October) https://www.reuters.com/markets/asia/global-markets-view-asia-graphics-pix-2023-11-05/

2023-11-05 21:10

PARIS, Nov 5 (Reuters) - TotalEnergies (TTEF.PA) has raised security vigilance for its operations in the Middle East by one level, given the current situation in Gaza, the company said. The TotalEnergies teams in Iraq continue their activities and presence in the country, it added. https://www.reuters.com/markets/commodities/totalenergies-raises-security-vigilance-its-operations-middle-east-2023-11-05/

2023-11-05 16:01

Nov 5 (Reuters) - Indian state-owned iron ore miner NMDC Ltd's (NMDC.NS) subsidiary Legacy Iron Ore Ltd is set to mine gold in western Australia, India's government said in a statement on Sunday. NMDC will commence its mining operation at the Mount Celia gold project located in western Australia, the government said, adding it will be first gold mine in its extensive portfolio. "The first ore for processing at Paddington gold mine is scheduled for CYQ1, 2024, and it is poised to become a significant contributor to India's gold production landscape," the statement added. Reuters reported in May, citing sources, that NMDC was in talks with Australia's Hancock Prospecting Pty Ltd for lithium exploration and mining. https://www.reuters.com/markets/commodities/indias-nmdc-subsidiary-legacy-iron-ore-mine-gold-australia-2023-11-05/

2023-11-05 15:22

DUBAI, Nov 5 (Reuters) - Top oil exporters Saudi Arabia and Russia confirmed on Sunday they would continue with their additional voluntary oil output cuts until the end of the year as concerns over demand and economic growth continue to weigh on crude markets. Both countries said their cuts would be reviewed next month to consider extending, deepening or increasing it. Saudi Arabia confirmed it would continue with its additional voluntary cut of 1 million barrels per day (bpd) translating into a production of around 9 million bpd for December, a source at the ministry of energy said in a statement. "This additional voluntary cut comes to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets," the source was quoted as saying in the statement. Following the Saudi statement, Moscow also announced it would continue its additional voluntary supply cut of 300,000 bpd from its crude oil and petroleum product exports until the end of December. OPEC+, which comprises the countries of the Organization of the Petroleum Exporting Countries (OPEC) and leading allies including Russia, has been cutting output since last year in what it says is preemptive action to maintain market stability. Oil hit a 2023 high in September at near $98 a barrel for Brent crude, although it has since weakened to trade around $85 a barrel on Friday, despite support from the conflict in the Middle East. Saudi Arabia, OPEC's de-facto leader, first made the voluntary cut for July as an addition to a broad supply-limiting deal first agreed by some members of OPEC+ in April. The kingdom said in September it would extend its additional voluntary cut until the end of the year, and review the decision monthly. Analysts had widely expected the kingdom to confirm it would extend its cut in December. A June decision by OPEC+ already limits supply into 2024. The alliance is next due to meet on Nov. 26 in Vienna. https://www.reuters.com/business/energy/saudi-arabia-continue-voluntary-1-mln-bpd-oil-output-cut-december-2023-11-05/