2024-07-19 05:34

Bullion hit an all-time high of $2,483.60 on Wednesday U.S. dollar index up 0.2% Markets see a 98% chance of a Fed rate cut in September - CME Silver, platinum and palladium set for weekly declines July 19 (Reuters) - Gold prices dipped more than 1% on Friday, as the dollar firmed and some investors locked in profits following the metal's recent surge on increasing expectations of U.S. interest rate cuts in September. Spot gold was down 1.7% at $2,404.34 per ounce by 1233 GMT. Bullion hit an all-time high of $2,483.60 on Wednesday. U.S. gold futures fell 2% to $2,406.50. The U.S. dollar inched 0.1% higher, while benchmark 10-year Treasury yields also rose, putting pressure on bullion. "It appears to be a combination of factors, including a stronger U.S. dollar, rising U.S. yields, easing geopolitical tensions, and potential profit-taking, all contributing to gold's weakness ahead of the weekend," said Zain Vawda, market analyst at MarketPulse by OANDA. "If prices close below $2400 today, reaching $2500 in the near-term could prove challenging." Markets see a 98% chance of a rate cut by the U.S. Federal Reserve in September, according to the CME FedWatch Tool , opens new tab. Non-yielding bullion's appeal tends to shine in a low-interest rate environment. Earlier this week, Fed Chair Jerome Powell said recent inflation readings "add somewhat to confidence" that the pace of price increases is returning to the central bank's target in a sustainable fashion. "In the near term, I expect gold to remain supported above $2,400," said Ricardo Evangelista, senior analyst at ActivTrades. If U.S. GDP data due next week shows a slowdown in economic activity, gold could return to or hover around the record high it hit on Wednesday, Evangelista added. Another factor that could influence gold is traders' belief U.S. presidential candidate Donald Trump will win the November polls, and the more protectionist global affairs and trade stance that could come with that, according to Evangelista. "This is very positive for the dollar and it affects gold, of course," he said. Spot silver fell 3.5% to $29.00 per ounce and platinum eased 0.8% to $960.10, while palladium lost 1.1% to $919.51. All three metals were headed for weekly declines. Sign up here. https://www.reuters.com/markets/commodities/gold-slips-set-fourth-weekly-rise-us-rate-cut-prospects-2024-07-19/

2024-07-19 05:12

US stocks end lower Global cyber outage and disruption weigh on mood Dollar set for weekly gain NEW YORK, July 19 (Reuters) - World stock indexes fell on Friday as a global cyber outage rattled investors by disrupting operations across multiple industries, while the dollar climbed along with Treasury yields. The S&P 500 and Nasdaq registered their biggest weekly percentage declines since April. The outage hit services from airlines to banks to healthcare. Cybersecurity firm CrowdStrike (CRWD.O) , opens new tab fell 11.1% after an update to one of its products appeared to trigger the outage that affected customers using Microsoft's (MSFT.O) , opens new tab Windows Operating System, disrupting businesses across sectors. Microsoft ended down just 0.7%. The Cboe Volatility index (.VIX) , opens new tab - Wall Street's "fear gauge" - touched its highest level since late April. "Today's outages remind us that services can have supply chain disruptions too," said Jeff Kleintop, chief global investment strategist at Charles Schwab. "While not a cyberattack, the outage is a worrisome reminder of how our systems are deeply integrated." The Dow Jones Industrial Average (.DJI) , opens new tab fell 377.49 points, or 0.93%, to 40,287.53, the S&P 500 (.SPX) , opens new tab lost 39.59 points, or 0.71%, to 5,505.00 and the Nasdaq Composite (.IXIC) , opens new tab lost 144.28 points, or 0.81%, to 17,726.94. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 6.58 points, or 0.80%, to 810.87. The STOXX 600 (.STOXX) , opens new tab index fell 0.77%. Investors also braced for important results in the U.S. second-quarter earnings season in the upcoming weeks. Results from megacaps will be in focus, with the S&P 500 technology-related sector falling 5.1% this week as investors rotated into sectors that have languished so far in 2024. Tesla (TSLA.O) , opens new tab and Google-parent Alphabet (GOOGL.O) , opens new tab both report on Tuesday, kicking off results from the "Magnificent Seven" megacap group of stocks that have propelled markets since early 2023. Microsoft and Apple (AAPL.O) , opens new tab are set to report the following week. DOLLAR RECOVERS The dollar index climbed and was on pace for its first weekly gain in three, bouncing back on recent U.S. economic data and concerns about the technology outage. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, gained 0.21% to 104.36, with the euro down 0.14% at $1.0881. Against the Japanese yen , the dollar strengthened 0.06% at 157.46. The Federal Reserve is scheduled for its next policy announcement at the end of July. Markets expect only a slight chance for a cut of at least 25 basis points (bps), while almost completely pricing in a cut at its September meeting, according to CME's FedWatch Tool. U.S. Treasury yields rose as investors waited on fresh data next week. The yield on benchmark U.S. 10-year notes rose 5.5 basis points to 4.243%, from 4.188% late on Thursday. Oil prices fell as investors eyed a possible ceasefire in Gaza. U.S. crude lost $2.69 to settle at $80.13 a barrel, while Brent fell to $2.48 to $82.63. In cryptocurrencies, bitcoin gained 5.11% to $67,083.35. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-07-19/

2024-07-19 04:39

LONDON, July 19 (Reuters) - Oil prices were little changed on Friday as a strong dollar and concern over the economy of top oil importer China were countered by a tighter supply outlook. Brent crude prices fell by 9 cents, or 0.1%, to $85.02 a barrel by 1235 GMT. U.S. West Texas Intermediate crude futures slipped 24 cents, or 0.3%, to $82.58. The U.S. dollar index climbed for a second consecutive session after stronger than expected data on the U.S. labour market and manufacturing earlier in the week. A stronger U.S. currency dampens demand for dollar-denominated oil from buyers holding other currencies. A lack of concrete stimulus measures from top oil importer China has also weighed on commodities, ANZ analysts wrote. Meanwhile, Chinese officials acknowledged on Friday that the sweeping list of economic goals re-emphasised at the end of a key Communist Party meeting this week contained "many complex contradictions", pointing to a bumpy road ahead for policy implementation in the world's second-largest economy. China's economy grew by a slower than expected 4.7% in the second quarter, official data showed, sparking concerns over its demand for oil. A global tech outage on Friday disrupted operations in multiple industries, with airlines halting flights, some broadcasters going off-air and everything from banking to healthcare hit by system problems. LSEG Group's data and services were back up and running on Friday after an outage caused some disruption across financial markets earlier in the day. Reuters provides news for LSEG's Workspace platform. Meanwhile, two large oil tankers were on fire on Friday after colliding in waters near Singapore, the world's biggest refuelling port, with two crew members airlifted to hospital and others rescued from life rafts, authorities and one of the companies said. Oil prices found some support in the previous two sessions after the U.S. government reported a bigger than expected weekly decline in oil stockpiles. The OPEC+ producer group, meanwhile, is unlikely to recommend changing its output policy, including a plan to start unwinding one layer of oil supply cuts from October, three sources told Reuters on Thursday. "We think Q3 balances are set to tighten, due to continued OPEC restraint and seasonal demand increases, before weakening in Q4 on additional supplies from OPEC+ and the U.S.," BNP Paribas analyst Aldo Spanjer wrote in a research note. Sign up here. https://www.reuters.com/markets/commodities/oil-drops-weak-sentiment-set-weekly-decline-2024-07-19/

2024-07-19 04:36

A look at the day ahead in European and global markets from Rae Wee It's been a turbulent week for investors marked by a tech selloff on the back of deepening Sino-U.S. trade tensions, uncertainty over U.S. President Joe Biden's fate in the presidential race, and China's lacklustre third plenum outcome. And as the global outlook becomes increasingly precarious, even interest rate expectations have somewhat taken a backseat for now. On hindsight, the attempted assassination of Republican presidential candidate Donald Trump last weekend may have been a foreshadowing of more turmoil to come for markets, which has since been reflected in a spike in the VIX index (.VIX) , opens new tab - Wall Street's fear gauge. Asian shares struggled to find a floor on Friday, as the selloff in technology stocks spilled across sectors, with Europe also set for a lower opening. Even a stellar set of earnings and forecasts from Taiwan's TSMC (2330.TW) , opens new tab wasn't able to tame investors' fears of a further U.S. chip crackdown on China, as shares of the world's largest contract chipmaker extended their declines on Friday. Coupled with comments from Trump this week that Taiwan should pay the U.S. for its defence, TSMC was headed for its worst weekly decline since late May, with more than T$2 trillion ($61.06 billion) wiped off its peak market value. The cautious market mood gave the dollar some safe haven support on Friday, as it distanced itself from a four-month low hit on the back of rising bets for an imminent Federal Reserve easing cycle. Fed policymakers have in recent days set the stage for a September rate cut, while the European Central Bank left the door open on Thursday for a similar move. As for the Bank of England, conditions are still not ripe for an easing of rates, and traders have reduced the chances of an August cut. UK retail sales figures are due later on Friday, where expectations are for the wet and cold weather in June to have kept shoppers away. In China, officials acknowledged on Friday the sweeping list of economic goals re-emphasised at the end of a key Communist Party meeting this week contained "many complex contradictions", pointing to a bumpy road ahead for policy implementation. Key developments that could influence markets on Friday: - Germany producer prices (June) - UK retail sales (June) - Fed's Williams, Bostic speak - American Express Q2 earnings ($1 = 32.7560 Taiwan dollars) Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-07-19/

2024-07-19 04:07

BENGALURU, July 19 (Reuters) - UK-based Vedanta Resources, parent of India's Vedanta (VDAN.NS) , opens new tab, has settled dues worth $245.75 million to help revive operations in Konkola copper mines (KCM) in Zambia as part of a deal to take back the mines, the Indian miner said on Friday. The miner, owned by billionaire Anil Agarwal, had in November 2023 regained control of the copper mines and smelter, which the Zambian administration had seized in 2019, but needed to pay creditors of the mines to revive operations. Vedanta Resources gained control of KCM's assets following a five-year legal battle after the former Zambian President Edgar Lungu accused the company of failing to invest to expand copper production and seized its assets. The UK-based company will still need to raise an additional $1 billion to revive the KCM's mining operations and invest in advancing the Konkola deep mining project, which holds one of the richest copper deposits in the world, as per a Reuters report from early July. The Zambian government owns a 20% stake in KCM through ZCCM , a mining investment company, while Vedanta Resources owns the rest. Last month, Anil Agarwal said Vedanta Resources is looking to reduce its debt by $3 billion over the next three years, as the company grapples with mounting debt and a host of rating downgrades since last year. Sign up here. https://www.reuters.com/markets/commodities/vedanta-resources-pays-246-mln-dues-help-revive-operations-zambian-copper-mine-2024-07-19/

2024-07-19 03:52

MUMBAI, July 19 (Reuters) - The Indian rupee may drop to a lifetime low on Friday, pressured by renewed weakness in Asian peers and expectations that dollar payments will persist. Non-deliverable forwards indicate the rupee will open at 83.67-83.68 to the U.S. dollar, inching past the all-time low of 83.6650 hit in June and slightly weaker than 83.65 in the previous session. The currency has largely struggled in recent days amid dollar demand for defence and oil payments, according to traders. Weakness has been persistent, with the rupee unable to manage an uptick on Wednesday when other Asian currencies were higher. "(Dollar) bids all through recent days have pulled it (dollar/rupee) up to this level," a trader at a bank said, adding that while most participants thought the Reserve Bank of India will defend the local currency at 83.60, that did not happen. "We now will probably see a higher range (on dollar/rupee)." The RBI has repeatedly in the past intervened to keep rupee from slipping past key levels, the breach of which would lead to a bout of volatility. DOLLAR RECOVERS The dollar index inched up in Asia, adding to Thursday's advance when it recovered from a near four-month low. The dollar has been on the defensive amid a firming up of expectations that the Federal Reserve is poised to cut interest rates in few months time. Data out on Thursday reinforced expectations of a September Fed rate cut. U.S. initial claims increased 20,000 to a seasonally adjusted 243,000 against a forecast of 230,000 claims. The data points to the ongoing cooling in the U.S. labour market, ANZ Bank said in a note. The jobless claims data followed softer June non-farm payrolls report. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.74; onshore one-month forward premium at 7 paise ** Dollar index up at 104.24 ** Brent crude futures down 0.6% at $84.6 per barrel ** Ten-year U.S. note yield at 4.22% ** As per NSDL data, foreign investors bought a net $198.7mln worth of Indian shares on Jul. 16 ** NSDL data shows foreign investors bought a net $152.8mln worth of Indian bonds on Jul. 16 (This story has been corrected to say June, not April, in paragraph 2) Sign up here. https://www.reuters.com/markets/currencies/all-time-low-possible-amid-dollar-payments-decline-asian-peers-2024-07-19/