2025-07-21 11:29
Lutnick is confident US will secure trade deal with EU Inflation, strong data cloud Fed rate cut expectations, ANZ says China's imports of gold, platinum fall in June from prior month July 21 (Reuters) - Gold prices firmed on Monday, bolstered by a weaker U.S. dollar, while investors sought clarity on trade developments ahead of an August 1 U.S. tariff deadline. Spot gold was up 0.5% at $3,369.17 per ounce by 1114 GMT. U.S. gold futures rose 0.5% to $3,376.30. Sign up here. "The modest support...comes from a weaker U.S. dollar. With the tariff August 1 deadline coming closer, the market focus will be if trade deals are announced, or tariffs are implemented," said UBS commodity analyst Giovanni Staunovo. The dollar eased 0.3% against a basket of other major currencies (.DXY) , opens new tab, making gold less expensive for their holders . U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident the United States can secure a trade deal with the European Union, but August 1 is a hard deadline for tariffs to kick in. Gold, often considered a safe-haven asset during economic uncertainty, tends to do well in a low interest rate environment. The U.S. Federal Reserve's next policy meeting is scheduled for July 29-30, following its decision to hold rates steady last month. "Elevated inflation expectations and strong economic data are weighing on expectations around the number of Fed rate cuts this year. Despite this, the buy-on-dip strategy remains in place, protecting downside risks for gold prices," ANZ analysts said in a note. Last week, Fed Governor Christopher Waller said he still believed that the U.S. central bank should cut rates next week. Data showed that top consumer China's imports of gold fell for a second successive month in June. China's imports of platinum in June fell 6.1% from the prior month. Spot silver gained 0.8% to $38.47 per ounce, platinum rose 1.6% to $1,444.11 and palladium was 2.1% higher at $1,266.91. https://www.reuters.com/world/china/gold-rises-weaker-us-dollar-investors-await-trade-developments-2025-07-21/
2025-07-21 11:10
July 21 (Reuters) - Futures tracking Canada's benchmark index edged higher on Monday, rebounding from the previous session's losses, as investors were optimistic about the potential for trade deals between the U.S. and its key trading partners. Futures on the S&P/TSX index were up 0.2% at 1,629.3 points by 06:39 a.m. ET (1039 GMT). Sign up here. Canada's main stock index closed lower on Friday, dragged down by weakness in industrial stocks, as investors reacted to trade uncertainty following a report that President Donald Trump was eyeing new tariffs on European Union products. U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident that Washington could secure a trade deal with the EU, but August 1 is a hard deadline for tariffs to kick in. However, traders awaited clarity on U.S.-EU trade talks and looked for additional trade deals ahead of Trump's August 1 tariff deadline. Meanwhile, domestic investors will assess the Bank of Canada's Business Outlook Survey, due later in the day, for business expectations amid tariff-related uncertainty. Among commodities, gold prices firmed and copper prices rose, while oil prices dipped slightly on Monday. In the U.S., several industrial and tech firms are set to report their earnings this week, with Alphabet (GOOGL.O) , opens new tab and Tesla (TSLA.O) , opens new tab kicking off the results season for the "Magnificent Seven" stocks. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report Canadian dollar and bonds report CA/ Reuters global stocks poll for Canada , Canadian markets directory https://www.reuters.com/markets/europe/tsx-futures-inch-up-trade-optimism-2025-07-21/
2025-07-21 11:04
EU sanctions target Russian crude supply Iran nuclear talks could affect oil market dynamics U.S. tariffs on EU imports could influence oil demand LONDON, July 21 (Reuters) - Oil prices dipped slightly on Monday, with the latest European sanctions on Russian oil expected to have minimal impact on supplies while U.S. tariffs ensure demand concerns remain. Brent crude futures dropped 20 cents, or 0.3%, to $69.08 a barrel by 1100 GMT after settling 0.35% down on Friday. U.S. West Texas Intermediate crude eased by 6 cents, or 0.1%, to $67.28 after a 0.3% decline in the previous session. Sign up here. The European Union on Friday approved the 18th package of sanctions against Russia over the war in Ukraine, which also targeted India's Nayara Energy, an exporter of oil products refined from Russian crude. "The latest round of EU sanctions aren't necessarily going to change the oil balance. That's why the market is not reacting much," said Harry Tchiliguirian at Onyx Capital Group. "Russians have been very good at circumventing these kinds of sanctions." Kremlin spokesperson Dmitry Peskov said on Friday that Russia had built up a certain immunity to Western sanctions. The EU sanctions followed U.S. President Donald Trump's threats last week to impose sanctions on buyers of Russian exports unless Russia agrees to a peace deal within 50 days. ING analysts said the part of the package likely to have an impact is the EU import ban on refined oil products processed from Russian oil in third countries, though it said it could prove difficult to monitor and enforce. Iran, another sanctioned oil producer, is due to hold nuclear talks with Britain, France and Germany in Istanbul on Friday, an Iranian Foreign Ministry spokesperson said on Monday. That follows warnings by the three European countries that a failure to resume negotiations would lead to international sanctions being reimposed on Iran. In the U.S., the number of operating oil rigs fell by two to 422 last week, the lowest total since September 2021, Baker Hughes said on Friday. U.S. tariffs on European Union imports are set to kick in on August 1, though U.S. Commerce Secretary Howard Lutnick said on Sunday that he was confident the United States could secure a trade deal with the bloc. "Tariff concerns will continue to weigh in the lead up to the August 1 deadline, while some support may come from oil inventory data if it shows tight supply," said IG market analyst Tony Sycamore. "It feels very much like a $64-$70 range in play for the week ahead." Brent crude futures have traded between a low of $66.34 a barrel and a high of $71.53 after a ceasefire deal on June 24 halted the 12-day Israel-Iran war. https://www.reuters.com/business/energy/oil-prices-inch-down-expected-minimal-sanctions-impact-2025-07-21/
2025-07-21 11:01
MUMBAI, July 21(Reuters) - The Indian rupee logged a modest decline on Monday, pressured by dollar bids from foreign and local private banks, though broad-based weakness in the greenback helped the local currency limit further losses. The rupee closed at 86.2925 against the U.S. dollar, down about 0.2% on the day, after touching a near one-month low of 86.35 earlier in the session. Sign up here. Asian currencies were flat-to-slightly higher, while the dollar index declined by nearly 0.2% to 98.2. The Indian rupee and the Indonesian rupiah are among the few regional currencies nursing losses on the year so far, even as their peers, such as the Taiwan dollar and the Korean won, have climbed over 11% and 6%, respectively. Muted portfolio flows, India's external investment deficit and likely FX reserve accumulation by the Reserve Bank of India are among the reasons cited by analysts for rupee's lacklustre performance this year. On the day, price action appeared to indicate modest outflows but dollar-buying pressure eased in the latter half of the session, helping the rupee trim its losses, a trader at a private bank said. India's benchmark equity indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab, closed higher by about 0.5% each on the day, while the benchmark 10-year bond yield was last quoted slightly lower at 6.2986%. In the near term, focus will be on developments on two fronts: how U.S. economic data impact expectations of rate cuts and news surrounding U.S.-India trade negotiations ahead of the August 1 deadline for higher U.S. tariffs to take effect. "We maintain our view that slower growth, profit margin compression and export price reduction will contain the impact of tariffs, and that a slower economy will justify the Fed resuming rate cuts in September," ANZ said in a Monday note. https://www.reuters.com/world/india/rupee-weakens-slightly-broad-dollar-softness-cushions-pressure-2025-07-21/
2025-07-21 11:01
GAPYEONG, South Korea, July 21 (Reuters) - Severe wet weather in South Korea eased on Monday following days of torrential rain that triggered floods and landslides and left at least 18 people dead, the Ministry of the Interior and Safety said on Monday. Nine people remained missing as of Sunday evening, the ministry said, with residents of the worst-hit areas in shock. Sign up here. At Gapyeong, some 62 kilometres (38.5 miles) northeast of the capital Seoul, some residents recalled narrow escapes from the floods after 173 millimetres (6.8 inches) of rain deluged the area over just 17 hours on Sunday. Gapyeong was among a number of places that saw a record amount of rain in a single day and broke the previous high for national daily precipitation of 156.3 mm that was set on September 30, 1998. "The ground just sank beneath me, and the water rose all the way up to my neck. Luckily, there was an iron pipe nearby. I held on to it with all my strength," said Ahn Gyeong-bun, the owner of a restaurant that was almost completely destroyed. Two people died and four were missing after a landslide engulfed homes around Gapyeong and floods swept away vehicles as of Sunday, the ministry said. For those remaining like Ahn, an uncertain future awaits. "I've run this restaurant for 10 years ... What am I supposed to do now?" said Ahn, as she stood next to the badly damaged structure of her building perched next to a still swollen river. At times breaking down in tears, the 65-year-old said several of the restaurant's refrigerators were washed away by the flood. Across South Korea, rain damage had been reported to 1,999 public structures and 2,238 private facilities, including farms, the interior ministry said. While the rain has eased, the national weather agency has now issued a nationwide heatwave watch. South Korean President Lee Jae Myung has ordered a thorough response to the disaster, his office said. "As local heavy rains have become commonplace, customised measures based on regional characteristics are urgently needed," said Kang Yu-jung, the spokesperson for Lee's office. "If serious laxity or mistakes are found in civil servants' discipline, we will hold them accountable and thorough measures will be taken to prevent a recurrence." Lee, who took office in June, has promised to make the country safer and to prevent any repeat of the disasters in recent years that have often been blamed on the inadequate response by authorities. https://www.reuters.com/business/environment/torrential-rain-leaves-least-18-dead-south-korea-trail-devastation-2025-07-21/
2025-07-21 10:48
Agreement hopes hit by Trump 30% tariff threat, DC talks Diplomats say EU members considering anti-coercion powers Some EU states still baulk at using 'nuclear option' BRUSSELS, July 21 (Reuters) - The European Union is exploring a broader set of possible counter-measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. An increasing number of EU members, including Germany, are now considering using wide-ranging "anti-coercion" measures which would let the bloc target U.S. services and other sectors in the absence of a deal, diplomats say. Sign up here. The European Commission, which negotiates trade agreements on behalf of the 27-member bloc, had appeared on course for a agreement in which the EU would still have faced a 10% U.S. tariff on most of its exports, with some concessions. Such hopes now seem dashed after President Donald Trump's threat to impose a 30% tariff by August 1, and following talks between EU Trade Commissioner Maros Sefcovic and U.S. counterparts in Washington last week. Sefcovic, who has said a 30% tariff would "practically prohibit" transatlantic trade, delivered a sober report on the current state of play to EU envoys on Friday, diplomats told Reuters. U.S. counterparts had come up with diverging solutions during his meetings, including a baseline rate that could be well above 10%, the EU diplomats added. "Each interlocutor seemed to have different ideas. No one can tell (Sefcovic) what would actually fly with Trump," one diplomat said. Prospects of easing or removing 50% U.S. tariffs on steel and aluminium and 25% on cars and car parts appear limited. 'NUCLEAR OPTION' Washington has also rejected the EU's demand for a "standstill" arrangement, whereby no further tariffs would be imposed after a deal is struck. The rationale, according to diplomats, is that Trump's hands cannot be tied on national security, the basis of Section 232 trade investigations into pharmaceuticals, semiconductors and timber. Accordingly, the mood has pivoted among EU countries, EU diplomats say, and they are more ready to react, even though a negotiated solution is their preferred option. The EU has one package of tariffs on 21 billion euros ($24.5 billion) of U.S. goods that is currently suspended until August 6. The bloc must still decide on a further set of countermeasures on 72 billion euros of U.S. exports. Discussions have also increased on using the EU's wide-ranging "anti-coercion" instrument (ACI) that allows the bloc to retaliate against third countries that put economic pressure on member states to change their policies. Brought in more with China in mind, it would allow the bloc to target U.S. services, limit U.S. companies' access to public procurement or financial services markets or restrict U.S. investment. France has consistently advocated using the ACI, but others have baulked at what some see as a nuclear option. Trump has warned he will retaliate if other countries take action against the United States. European Commission President Ursula von der Leyen said a week ago that the ACI was created for extraordinary situations, adding: "We are not there yet." The Commission would need a qualified majority of 15 countries making up 65% of the EU population to invoke it. It would not do so unless it was confident of passing it, but there are now growing signs of support building, with Germany among the countries saying it should be considered, EU diplomats say. ($1 = 0.8590 euros) https://www.reuters.com/business/autos-transportation/eu-ramp-up-retaliation-plans-us-tariff-deal-prospects-dim-2025-07-21/
