2024-06-25 07:06

JOHANNESBURG, June 25 (Reuters) - The South African rand clawed back some losses in early trade on Tuesday, as local media reported progress in negotiations over cabinet positions between the two biggest parties in the unity government. At 0650 GMT, the rand traded at 18.0750 against the dollar , more than 0.2% stronger than its previous close. The currency fell about 0.8% against the dollar on Monday. Markets have been on tenterhooks in the lead-up to the announcement of President Cyril Ramaphosa's new cabinet, with signs of friction between the African National Congress (ANC) and the Democratic Alliance (DA) on Monday contributing to the rand's fall. But local news outlets including News24 said talks between the ANC and DA were moving forward after a meeting between Ramaphosa and DA leader John Steenhuisen on Monday. News24 reported a deal may be reached soon which would allow Ramaphosa to announce his executive by Wednesday. "Market participants are likely to focus on how many and which ministerial positions the pro-business Democratic Alliance will get in the new cabinet. The more and the more senior, the better (for markets)," Commerzbank analysts said in a research note. The ANC lost its parliamentary majority in an election last month, forcing it to share power for the first time since coming to power at the end of apartheid 30 years ago. In total 10 political parties have agreed to join the unity government. South Africa's benchmark 2030 government bond was stronger in early deals, with the yield down 7 basis points to 9.785%. Sign up here. https://www.reuters.com/markets/south-african-rand-claws-back-some-losses-reports-cabinet-talks-progress-2024-06-25/

2024-06-25 07:03

Shtip project to generate around 400 megawatts To help avoid over 670,000 tons or emissions a year Part of country's coal phase-out plan announced at COP28 LONDON, June 25 (Reuters) - Renewable energy investor Alcazar Energy Partners said on Tuesday it has launched the largest wind farm project in North Macedonia with an investment of at least $500 million in debt and equity to help generate 400 megawatts of renewable energy. The Shtip project, located 75 km south of the capital Skopje, is a central part of a deal announced at the COP28 climate talks last year to accelerate the country's shift away from coal-fired power generation. Construction is set to begin in early 2026. Once up and running, the project is expected to provide an almost fivefold increase in the country's installed wind capacity, able to power more than 100,000 homes and avoid the release of over 670,000 tons of climate-damaging carbon emissions a year. "Alcazar Energy views North Macedonia as an especially promising investment location, recognising its significant potential for renewable energy development," Alcazar co-founder Daniel Calderon said in a statement. Due to its location and grid connections with Greece, Bulgaria, Serbia and Kosovo, the project should help reduce energy shortages and support the energy transition across the broader region. Financing will be overseen by Alcazar, which recently raised $490 million through Alcazar Energy Partners II, with backing from the U.S. International Development Finance Corporation and other public and private investors. "This project is of great significance to Europe, given North Macedonia's extensive grid interconnections with its neighbours," said Hristijan Mickoski, Prime Minister of North Macedonia. "It will supply much-needed clean and affordable energy at a crucial time when the continent is striving to reduce its dependence on fossil fuels." Sign up here. https://www.reuters.com/business/energy/alcazar-invests-500-mln-north-macedonias-largest-wind-farm-2024-06-25/

2024-06-25 06:56

LITTLETON, Colorado, June 25 (Reuters) - A nearly 18% jump in hydro-powered electricity output during January through May from the same months in 2023 has helped boost Europe's clean electricity generation to new highs. Electricity generation from hydro dams across Europe was 388 terawatt hours (TWh) from January through May of 2024, according to energy think tank Ember. That total compares to 330 TWh during the same months last year, and is the highest for that five-month window in at least nine years following above-average rainfall across much of mainland Europe so far in 2024. Along with record output from wind and solar farms, the high hydro generation total helped lift Europe's clean electricity generation to a record 1,260 TWh in January through May this year, which marks a 9.4% advance from the same months in 2023. Higher clean power output has allowed Europe's power producers to cut fossil fuel generated electricity production by more than 9% to its lowest cumulative total for the first five months of the year since at least 2015. Lower fossil fuel use has in turn cut Europe's power sector emissions by around 9% to their lowest in over 9 years, Ember data shows. HYDRO HELP The recovery in hydro electricity generation has been seen throughout mainland Europe. From January 1 through June 23, hydro generation in France - mainland Europe's largest hydro producer - was 3.7 million gigawatt hours (GWh), according to data compiled by LSEG. That total marks a more than 50% rise from the 2.4 million GWh generated during the same period in 2023, and is 12% more than the long term average during that period. In Italy, hydro generation is up 49% for the same period in 2023 and 23.4% above the long term average, while Germany's hydro production so far this year is 44% above the long term average, LSEG data shows. Hydro generation in the Alps catchment area - which is an aggregation of output across Austria, France, Italy and Switzerland - is up 40% from the same period last year and is 14.4% above normal. GROWING SHARE For Europe as a whole, hydro dams produced 19.2% of total electricity generation during the first five months of the year. That share compares to an average of 17% for the previous five years, and reveals that hydro power is accounting for an historically large portion of Europe's electricity in 2024. And thanks to the dispatchable nature of much of Europe's hydro power - meaning it can be distributed when needed across grids - power producers have been able to cut back on generation from fossil fuels. From January through May, coal-fired generation is down 13.3% while natural gas-fired generation is down 7%, Ember data shows. Europe's power firms are also making use of a 21.4% rise in solar generation and a 7.6% climb in wind output during the January to May window, driving total electricity generation up nearly 2% from the same period in 2024. Seasonal trends suggest that Europe's hydro generation total may start to decrease over the coming months as the impact of snow melt wanes and several countries enter their driest period for the year. But with solar generation set to keep climbing into the peak summer period, and output from nuclear plants and bioenergy facilities largely flat, Europe's cumulative clean generation total looks primed for further gains over the near term to help advance the region's continuing energy transition efforts. Sign up here. https://www.reuters.com/business/energy/europes-hydro-dams-lift-clean-electricity-output-new-highs-maguire-2024-06-25/

2024-06-25 06:52

U.S. PCE data due on Friday China's yuan at weakest since mid-November vs dollar Gold ETFs saw modest inflows last week - WGC LONDON, June 25 (Reuters) - Gold prices edged higher on Tuesday as a weaker Chinese currency supported demand in Asia, while investors awaited the U.S. inflation data due later this week to gain more certainty on the timing of future U.S. rate cuts. Spot gold rose 0.1% to $2,335.30 per ounce by 1044 GMT. The non-yielding bullion is down 4.7% from a record high of $2,449.89 touched on May 20 amid a rally which happened against traditional headwinds such as a strong dollar and high interest rates. "Gold has de-coupled from its traditional drivers just now and the prices are driven by sentiment in China amongst new players who are taking highly leveraged positions," said independent analyst Ross Norman. "The problem for them is they have driven prices above where most others see the fair value price of gold. So it is yo-yo'ing in a trading range on relatively light volumes with modest participation from US and European investors." In China, yuan hit its weakest since mid-November against the dollar on Tuesday, supporting demand for gold from local investors looking for a currency depreciation hedge. The yuan is set for its sixth straight monthly decline in June. "Whether the West adjusts its perception of the fair value price of gold upwards and participates more fully, or the East lowers its expectations for prices downwards as gravity takes hold is the key question," Norman added. In the West, traders were waiting for the U.S. first-quarter gross domestic product (GDP) estimates due on Thursday and the personal consumption expenditures (PCE) price index report on Friday. "The upside price potential for gold is limited in the short term, as the first interest rate cut in the US is only expected to take place at the end of the year," Commerzbank said in a note. Meanwhile, global physically-backed gold exchange traded funds (ETFs), a crucial category of demand, saw inflows last week - of $212 million, or 2.1 metric tons, according to the World Gold Council. It estimates the net outflows since the start of 2024 at $7.3 billion. Elsewhere, spot silver fell 0.1% to $29.60 per ounce, while platinum was steady at $994.36 and palladium added 0.3% to $982.08. Sign up here. https://www.reuters.com/markets/commodities/gold-drifts-lower-traders-ahead-us-inflation-data-2024-06-25/

2024-06-25 06:52

S&P 500, Nasdaq end higher, Dow down U.S. dollar index edges up, dollar up vs yen Nvidia shares bounce after recent losses NEW YORK, June 25 (Reuters) - Global stock indexes mostly climbed on Tuesday, with shares of AI chipmaker Nvidia bouncing after a three-day sell-off, while the dollar gained slightly against the Japanese yen. Nvidia's stock (NVDA.O) New Tab, opens new tab ended up 6.8%. The Nasdaq jumped more than 1%, also ending a three-day losing streak, while the S&P 500 technology (.SPLRCT) New Tab, opens new tab and communication services (.SPLRCL) New Tab, opens new tab sectors led gains among S&P 500 sectors. Excitement over artificial intelligence has powered stocks like Nvidia higher and helped to lift the U.S. stock market to recent record highs, but it remains to be seen whether that will continue, or for how long. The chipmaker had rocketed higher to briefly become the world's biggest company last week, but tumbled around 16% from last Thursday's peak to this Monday's close. "It's another day of fairly narrow equity markets," said Chad Oviatt, director of investment management at The Huntington National Bank in Akron, Ohio. "The Mag 7 seem to be pushing things... and that's been a theme all year," he said, referring to the Magnificent 7 group of tech-related stocks, which include Nvidia. "A lot of market participants are just waiting for some additional broadening out" of the market. Investors are also gearing up for data on the personal consumption expenditures price index on Friday, which could provide further clues on the inflation picture and when the Federal Reserve might begin cutting interest rates. They also await snap elections in France starting at the weekend and the first U.S. Presidential debate on Thursday. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab fell 299.05 points, or 0.76%, to 39,112.16, the S&P 500 (.SPX) New Tab, opens new tab gained 21.43 points, or 0.39%, to 5,469.30 and the Nasdaq Composite (.IXIC) New Tab, opens new tab gained 220.84 points, or 1.26%, to 17,717.65. After the closing bell, shares of FedEx (FDX.N) New Tab, opens new tab jumped more than 15% following the release of its results and its forecast for 2025 profit above analysts' estimates. The stock closed down 0.1% in the regular session. MSCI's gauge of stocks across the globe (.MIWD00000PUS) New Tab, opens new tab rose 2.49 points, or 0.31%, to 803.77. The STOXX 600 (.STOXX) New Tab, opens new tab index fell 0.23%. The U.S. dollar rose, bolstered in part by hawkish comments from a Fed official. Fed Governor Michelle Bowman repeated her view on Tuesday that holding the policy rate steady "for some time" will likely be enough to bring inflation under control. She also reiterated her willingness to raise borrowing costs if needed. The yen was keeping traders alert for any signs of further intervention from Japanese authorities to prop up the currency as it traded just above a two-month low of around 160 to the dollar. It hit a record low against the euro of 171.49 on Monday as pressure on the currency mounted thanks to interest rates in Japan that remain far lower than in the United States and Europe. Against the Japanese yen on Tuesday, the dollar strengthened 0.06% to 159.68. The dollar index , which measures the greenback against a basket of currencies, gained 0.11% at 105.63, with the euro down 0.19% at $1.0712. In Treasuries, the yield curve inversion between the two-year and the 10-year notes deepened to more than 50 basis points for the first time this year. It partly reversed after strong demand at a two-year auction. Oil prices eased amid demand concerns after a slow start to the U.S. summer driving season. Brent futures for August settled down $1 at $85.01 a barrel, while U.S. crude futures settled at $80.83, down 80 cents. Spot gold was down 0.6% at $2,318.82 per ounce. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-06-25/

2024-06-25 06:22

SINGAPORE, June 25 (Reuters) - Indian imports of Russian coal have declined while U.S. shipments have risen in the three months ending in May, data from coal consultancy Bigmint showed, which traders attributed to Russian supplies becoming less competitive. Russia's exports of all types of coal to India over the period fell 22.4% from a year earlier to 6.76 million metric tons, Bigmint's data showed. U.S. exports rose 14.4% to 6.68 million tons in the same period. The decline in Indian imports of Russian coal was driven by a 67% plunge year-on-year in shipments of thermal coal, used mainly for power generation. Purchases of steelmaking grades such as coking coal, anthracite and pulverized coal injection (PCI) coal rose during the period, the Bigmint data showed. India is Russia's second-largest coal market after China and the decrease follows fresh western sanctions on Russia because of the war in Ukraine. However, buyers downplayed their impact and said Russia thermal coal was less attractive without lower discounts amid a drop in global prices. "Main issue is thermal coal prices and not the sanctions. Logistics cost has gone up in Russia, that is why they are not able to compete," said K.C. Gandhi, Joint President of Materials Management at India's Shree Cement (SHCM.NS) New Tab, opens new tab. Russia has been boosting supplies to China amid the lower Indian exports, pushing coal shipments to China to the highest in eight months in May. U.S. exports of thermal coal to India in the three months ended May 31 rose 21.6% from a year earlier to 4.57 million tons, with its share in Indian imports increasing to 9.2% from 6.7%. However, its share in India's coking coal imports fell from 16% to 13.5%. A 44% year-on-year increase in Russia's coking coal imports to India pushed its share in India's seaborne market for the steelmaking feed to 13.9% from 10.9%, while its share in India's thermal coal imports fell to 3.2% from 8.8%, the Bigmint data showed. Russia continued to dominate Indian imports of other steelmaking grades such as anthracite and PCI, continuing to account for nearly all its imports. "Other thermal coal exporting countries may benefit in the short term from Russia's pricing constraints," said Riya Vyas, senior analyst at iEnergy Natural Resources Limited, a Indian coal trading firm. Sign up here. https://www.reuters.com/business/energy/indian-imports-russian-coal-fall-us-shipments-rise-2024-06-25/