2024-06-12 02:43

MUMBAI, June 12 (Reuters) - The Indian rupee may dip to an all-time low at open on Wednesday ahead of important U.S. inflation data and new interest rate forecasts by Federal Reserve officials. Non-deliverable forwards indicate the rupee will open at 83.58-83.60 to the U.S. dollar, compared with 83.5650 in the previous session and past the lifetime low of 83.5750 hit in April. The rupee on Tuesday dropped past the long-held support of 83.50-83.55. "The way it has been, it is always unexpected when you see a move beyond the set range," a currency dealer at a bank said. "These range breakouts, however, have not amounted to big moves and I think that scenario will play out again." The Reserve Bank of India may intervene in the non-deliverable forward (NDF) market before the market opens, like it has done in the past, to prevent the rupee from slipping to a new low, he said. The dollar index's strength amid doubts about whether the Fed will cut rates later this year is weighing on the rupee and other Asian currencies. The U.S. central bank is widely expected to announce no changes to the policy rate later in the day and at the next meeting in July. Policymakers will be putting out their new interest rate projections. A hawkish tone could also be reflected in the Fed's projections, HSBC Bank said in a note. The median 2024 estimate may rise to imply only 25bps or 50bps worth of cuts this year compared with 75bps last time and there may be an increase in its 'longer-run' dot to 2.7%, it said. The May U.S. consumer inflation data will be out before the Fed's policy decision. The May numbers are still set to show underlying stickiness, which has kept the Fed on the cautious side, HSBC said. Economists polled by Reuters expect core inflation to rise 0.3% month-on-month. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.66; onshore one-month forward premium at 7 paise ** Dollar index at 105.24 ** Brent crude futures up 0.4% at $82.2 per barrel ** Ten-year U.S. note yield at 4.4% ** As per NSDL data, foreign investors bought a net $343.5mln worth of Indian shares on June 10 ** NSDL data shows foreign investors sold a net $17.7mln worth of Indian bonds on June 10 Sign up here. https://www.reuters.com/markets/currencies/rupee-may-drop-all-time-low-before-us-inflation-fed-rate-projections-2024-06-12/

2024-06-12 00:33

Oil forecasters anticipate stock draws in H2 2024 - analyst Both contracts rise by $1 a barrel Key US data for interest rate cycle expected on Wednesday LONDON, June 12 (Reuters) - Oil prices ticked higher on Wednesday after three key forecasters predicted that global oil inventories would fall in the second half of 2024, boosting prices. Brent crude futures were up 88 cents, or about 1.1%, to $82.80 a barrel at 1219 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 96 cents, or roughly 1.2%, to $78.86. Both contracts rose by $1 or more earlier in the session. The International Energy Agency (IEA), the U.S. Energy Information Administration (EIA), and producer group the Organization of the Petroleum Exporting Countries (OPEC) have updated their views on the global oil demand-supply balance for 2024. Their reports imply limited downside for prices in the second half of the year because all three predict declines in global oil inventories, Tamas Varga of oil broker PVM told Reuters. Those views were reinforced by industry data on Tuesday showing U.S. crude oil inventories fell more than expected last week. On Wednesday, although the IEA trimmed its 2024 oil demand growth forecast to just under 1 million barrels per day (bpd), citing sluggish consumption in developed countries, the numbers suggest it agrees with OPEC and the EIA that there will be stock draws in the second half of the year, PVM's Varga said. The IEA also predicted oil demand growth would plateau at 105.6 million bpd by 2029, and be well eclipsed by supply - a full 8 million bpd above projected demand - by 2030. The IEA's view for next year, and up to the 2030s, is bleak, noted Varga. "But if there are stocks draws for the second half of this year, then why would we expect a significant fall on prices in the anticipation that there will be a glut by 2030?" On Tuesday, the EIA raised its 2024 world oil demand growth forecast to 1.10 million bpd, while OPEC stuck with its 2024 forecast of 2.25 million bpd. Prices had eased more than 2% last week after OPEC and its allies said they would phase out output cuts starting October. Focus is on key data expected on Wednesday. Inventory data from the EIA, the U.S. government's statistics arm, is due at 10:30 a.m. EDT (1430 GMT). Further hints on interest rate policy will come from the U.S. Consumer Price Index report before the bell, and the U.S. central bank's policy announcement is due later in the day. Sign up here. https://www.reuters.com/business/energy/oil-prices-edge-up-optimistic-demand-outlook-2024-06-12/

2024-06-12 00:04

GM approves $6 billion share buyback plan Apple soars to record S&P 500 tech sector also posts record high Indexes: Dow down 0.3%, S&P 500 up 0.3%, Nasdaq up 0.9% NEW YORK, June 11 (Reuters) - The S&P 500 and Nasdaq registered record closing highs for a second straight day on Tuesday, helped by a gain of more than 7% in Apple (AAPL.O) New Tab, opens new tab shares, while investors also awaited consumer prices data and a policy announcement from the Federal Reserve. Apple shares jumped 7.3% to a record-high close and gave the S&P 500 and Nasdaq their biggest boosts after the stock declined in the previous session. At its annual developer event that kicked off on Monday, Apple unveiled new artificial-intelligence features meant to increase the appeal of its devices, including an improved Siri virtual assistant that can answer a wider range of queries and accomplish more complicated tasks than earlier. The S&P 500 technology index (.SPLRCT) New Tab, opens new tab climbed 1.7% and also posted a record closing high. The Consumer Price Index report will be released before the bell on Wednesday, and the U.S. central bank's policy announcement is due later the same day. The central bank is likely to leave interest rates unchanged but will release its updated economic projections and "dot plot," which shows where policymakers expect interest rates to stand this year and longer-term. "Everybody is feeling uneasy, but the data and actions consumers are taking continue to point toward resiliency, and that tends to be overall fairly bullish," said Oliver Pursche, senior vice president and adviser for Wealthspire Advisors in Westport, Connecticut. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab fell 120.62 points, or 0.31%, to 38,747.42, the S&P 500 (.SPX) New Tab, opens new tab gained 14.53 points, or 0.27%, to 5,375.32 and the Nasdaq Composite (.IXIC) New Tab, opens new tab added 151.02 points, or 0.88%, to 17,343.55. Friday's U.S. monthly jobs report was stronger than expected. Markets have dialed back expectations for the Fed's first rate cut happening in September, now pricing in about a 50% chance, according to the CME's FedWatch tool. General Motors (GM.N) New Tab, opens new tab gained 1.35% after the automaker announced a $6 billion share buyback plan. GM also cut its annual EV production forecast. After the closing bell, Oracle shares (ORCL.N) New Tab, opens new tab rose 8% following the release of quarterly results. The stock ended the regular session down 0.5%. Declining issues outnumbered advancing ones on the NYSE by a 1.52-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored decliners. The S&P 500 posted 19 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 45 new highs and 127 new lows. Volume on U.S. exchanges was 10.65 billion shares, compared with the 12.83 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-fall-markets-await-fed-decision-cpi-data-2024-06-11/

2024-06-11 23:35

SINGAPORE, June 12 (Reuters) - Demand for gold in Asia is surging despite prices hovering near the record highs it hit in May, industry officials say, as buyers snap up the metal to hedge against geopolitical and economic uncertainty. Spot gold is trading a little over $2,300 per ounce, up about 12% year-to-date and only about 6% shy of the record high it hit last month. Lower confidence in other investment options, such as real estate and equities, is also a factor behind the demand for gold, analysts say. "When the macro-economic backdrop returns to normal, when real estate and equities are more interesting, I think that price sensitivity will return," Ruth Crowell, chief executive of the London Bullion Market Association, told Reuters. In Japan, there are more gold bulls than bears despite record high prices, according to Bruce Ikemizu, chief director of the Japan Bullion Market Association. Chinese investors grappling with currency devaluation, a protracted real estate downturn and trade tensions are also finding value in gold, experts said. China's purchases of gold coins and bars surged 27% in the first quarter of this year. "The trend in the market has been that if the consumer wants to buy gold, they will. The price doesn't matter," Albert Cheng, CEO of the Singapore Bullion Market Association, told Reuters on the sidelines of the Asia Pacific Precious Metals Conference. Elsewhere in Asia, retail investors have been pouring money into the safe-haven asset, with the metal finding increased acceptance among younger buyers. In Thailand, there were queues outside gold stores as soon as there were headlines on higher prices, said Nuttapong Hirunyasiri, the CEO of MTS Gold Group. Vietnam is seeing investors flocking to stock up, despite domestic prices trading at stubbornly high premiums to global prices. On the other hand, India and Australia remain sensitive to high prices. Indian gold prices have traded at a discount to international prices for five straight weeks, reflecting tepid demand in the second largest bullion consumer, while the Perth Mint's gold product sales in May fell 30% on a monthly basis. India's gold imports in 2024 are expected to fall by nearly a fifth, as record high prices have pushed retail consumers to exchange old jewellery for new items instead of buying afresh. Sign up here. https://www.reuters.com/markets/commodities/gold-rush-grips-asia-despite-near-record-prices-2024-06-11/

2024-06-11 23:25

June 11 (Reuters) - The toxic gas ethylene oxide (EtO) is detectable in southeastern Louisiana at levels a thousand times higher than what is considered safe, according to a new study. EtO emissions largely come from petrochemical manufacturing, and southeastern Louisiana has a high density of facilities that use or manufacture petrochemicals. “We expected to see ethylene oxide in this area,” said study leader Peter DeCarlo of Johns Hopkins University in Baltimore. “But we didn’t expect the levels that we saw, and they certainly were much, much higher” than levels estimated by the Environmental Protection Agency (EPA). EPA estimates were based on traditional EtO monitoring methods that involve collecting air samples and analyzing them in a lab, a method that is not precise, DeCarlo said. Because EtO concentrations change over time, the air that comes out of the collection canister in the lab is different from the air that was originally collected, he explained. In February 2023, researchers crisscrossed repeatedly through southeastern Louisiana’s industrial corridor with a cutting-edge mobile air-testing lab that could directly measure EtO levels on site. EtO is so toxic that dangerous levels for long-term exposure start at 11 parts per trillion, the researchers noted in a report published New Tab, opens new tab on Tuesday in the journal Environmental Science & Technology. Levels in southeastern Louisiana reached 40 parts per billion near industrial facilities, “more than a thousand times higher than the accepted risk for lifetime exposure,” DeCarlo said. “I don’t think there’s any census tract in the area that wasn’t at higher risk for cancer than we would deem acceptable,” DeCarlo said. Long-term exposure has been linked to cancer, particularly for people living near facilities that manufacture EtO or work with it. Concerning levels were found up to 6 miles (10 kilometers) downwind from factories, according to the report. One public school in Gonzales, Louisiana is only 5 miles (8 km) from the center of one industrial “hotspot,” the researchers said. The EPA said it would review the study. It added that it had already taken steps to reduce pollution in the part of the state nicknamed “Cancer Alley” due to its higher cancer incidence rates, including by setting new standards for chemicals manufacturing and by conducting research into sources of EtO. A spokesperson for the American Fuel and Petrochemical Manufacturers, which represents the U.S. petrochemicals and oil refining industry, did not immediately respond to a request for comment. High cancer rates in the area connected to local industrial air pollution disproportionately affect impoverished and black neighborhoods. DeCarlo said his team has been sharing their findings with these neighborhoods. “Now we have data for them that will help them bring their concerns forward” to public health authorities, he said. Sign up here. https://www.reuters.com/business/environment/toxic-gas-louisiana-air-far-exceeds-safe-levels-epa-estimates-us-study-finds-2024-06-11/

2024-06-11 23:19

WASHINGTON, June 11 (Reuters) - Two Texas men convicted by a U.S. jury in November of trying to sell Iranian petroleum in violation of sanctions imposed by Washington and of conspiracy to commit money laundering were sentenced on Tuesday to 45 months in prison, the Justice Department said. Zhenyu Wang, 43, a Chinese citizen, and Daniel Ray Lane, 42, of McKinney, Texas, schemed with co-conspirators to evade U.S. economic sanctions against Iran from July 2019 to February 2020 by facilitating the purchase of sanctioned oil from Iran, masking its origins and then selling it to a refinery in China, the department said in a statement. Lane was president of privately held Stack Royalties, a Texas-based company that sells oil and gas mineral rights to investment funds and private equity groups. Lane's attorney, Paul Hetznecker, told Reuters late last year that the case was based on undercover government agents who offered Lane "millions of dollars in profits" if he took part in the scheme, after initially rebuffing their approaches. The attorney had called the case "an outrageous example of government overreach." The pair were charged, along with three others, in 2020 in U.S. District Court for the Eastern District of Pennsylvania. At least two co-conspirators have since pleaded guilty, court records showed. China is the world's only major importer of Iranian oil despite sanctions that former U.S. President Donald Trump unilaterally reimposed on Tehran's petroleum exports in 2018 after withdrawing the United States from the 2015 Iran nuclear deal between Tehran and six world powers. Sign up here. https://www.reuters.com/world/us/two-us-men-jailed-conspiracy-sell-iranian-oil-china-2024-06-11/