2025-07-03 10:26
Sterling edges up against dollar and euro Bond yields slip after surge on Wednesday Focus on UK fiscal outlook after failed welfare reform July 3 (Reuters) - Sterling edged higher on Thursday, stabilising after fiscal concerns and uncertainty about Rachel Reeves' future as Britain's finance minister sparked a selloff across UK assets in the previous session. Markets had been monitoring developments around a welfare bill in parliament where divisions within the Labour party forced Prime Minister Keir Starmer to back down on large spending cuts, leaving a hole in public finances. Sign up here. The selloff gathered steam on fears that Reeves would be replaced, but was contained as Starmer gave the finance minister his full backing. The government has been trying to stick to its self-imposed fiscal rules to try to build investor confidence. However, analysts warn that politically-difficult tax hikes might be needed to balance public accounts and avoid extra borrowing. "The immediate issue is that the government left a very narrow margin in March against their fiscal rules they set themselves," said a group of analysts led by Jim Reid at Deutsche Bank. "So unless we got a big burst of growth before the budget, then the government would need to announce further tax rises or spending cuts if they still want to meet the fiscal rules." Sterling edged up 0.1% to $1.365 after sinking 0.8% in the previous session - its biggest daily drop in more than two weeks. The currency also firmed 0.3% against the euro , which last fetched 86.3 pence. The relief was also visible in bond markets, where the yield on the 10-year gilt dropped 9 basis points. Yields had spiked on Wednesday, with those on the benchmark note at one point registering their largest one-day jump since October 2022. Higher yields would generally support the domestic currency, so Wednesday's reaction highlighted investors' pessimism. Global investors have been grappling with ballooning public debt in developed markets and have also been demanding greater premiums to hold them. Yields on British bonds are among the highest in the developed world. Wednesday's plunge in British assets immediately drew comparisons with Liz Truss' short-lived premiership in 2022, which was derailed by a bond market selloff. Traders expect the Bank of England to cut interest rates by 25 basis points again in September, according to data compiled by LSEG. All eyes will now be on a pivotal U.S. jobs report later in the day that could help gauge the Federal Reserve's monetary policy trajectory. https://www.reuters.com/world/uk/sterling-steadies-after-selloff-fiscal-worries-prevail-2025-07-03/
2025-07-03 10:24
SINGAPORE, July 3 (Reuters) - Abu Dhabi National Oil Company (ADNOC) has restored most of the Murban crude oil supply going to equity holders in July after making a sharp cut earlier, multiple trade sources said on Thursday. Partners in Murban crude producer ADNOC Onshore, which include BP (BP.L) , opens new tab, TotalEnergies (TTEF.PA) , opens new tab, China National Petroleum Corp, Inpex (1605.T) , opens new tab, Zhenhua Oil and South Korea's GS Energy, are entitled to about 40% of production of the grade that stands at around 2.1 million barrels per day, traders said. Sign up here. During the Israel-Iran conflict last month, ADNOC notified equity holders that it would cut their Murban crude supply by 3 million to 4 million barrels in July, the sources said. It was not immediately clear what led to the changes. Most of these volumes have since been restored, they said. A spokesperson for ADNOC said there had been no cuts to supplies to long-term customers such as refiners. "ADNOC has maintained uninterrupted supply to our customers, with no cessation of Murban sales contracts or nominations in June and July," he added in an email. Japan, Thailand and India are the biggest importers of Murban crude, Kpler data showed. https://www.reuters.com/business/energy/adnoc-restores-most-murban-oil-supply-equity-holders-july-sources-say-2025-07-03/
2025-07-03 10:23
July 3 (Reuters) - Asset manager BlackRock Inc (BLK.N) , opens new tab is in talks with Saudi Aramco (2222.SE) , opens new tab to divest its stake in the leasing rights of a natural gas pipeline network back to the state oil major, Bloomberg News reported on Thursday, citing people familiar with the matter. The stake, which BlackRock acquired in 2021, is likely to be worth billions of dollars, according to the report. Sign up here. Reuters could not immediately confirm the report. https://www.reuters.com/business/energy/blackrock-mulls-selling-stake-saudi-aramco-gas-pipelines-bloomberg-news-reports-2025-07-03/
2025-07-03 10:07
MUMBAI, July 3 (Reuters) - The Indian rupee touched its strongest level in a month on Thursday, lifted by dollar sales from foreign banks and cutting of bearish bets on the local currency, while optimism surrounding a U.S.-India trade deal also aided sentiment. The rupee rose to a peak of 85.20, its best level since late May, before ending the session at 85.31, up 0.4% on the day. Sign up here. Dollar sales from foreign banks in the latter half of Thursday's session boosted the rupee, with the rise above 85.40 also triggering stop-losses on some wagers against the currency, traders said. Asian currencies mostly rose, while the dollar index remained steady ahead of a key U.S. labour market report. Most stock indices in Asia also gained on Thursday, after U.S.-Vietnam trade discussions raised the possibility of breakthroughs for other countries in the region ahead of the July 9 tariff deadline. India's benchmark equity indexes though closed marginally lower. U.S. and India trade negotiators were pushing on Wednesday to try to land a tariff-reducing deal ahead of President Donald Trump's July 9 negotiating deadline, per sources familiar with the talks. "Given the U.S.-Vietnam trade deal and the looming July 9 deadline for the reciprocal tariff pause, markets are also alert to similar trade announcements with India and the European Union," DBS said in a Thursday note. Traders reckon a trade deal with India could push the rupee above 85, but further gains would depend on foreign inflows and if the central bank steps in shore up its FX reserves via dollar purchases. On the day, investors will also keep an eye on the U.S. non-farm payrolls report for cues on the future path of the Federal Reserve policy rates. Economists polled by Reuters expect that the U.S. economy added 110,000 jobs in June, while the unemployment rate ticked up to 4.3%. https://www.reuters.com/world/india/inflows-boost-rupee-one-month-high-trade-deal-optimism-aids-sentiment-2025-07-03/
2025-07-03 10:04
Indonesia facing 32% US tariffs MoU to be signed on July 7 between Indonesia-US companies Indonesia hopes better tariff deal than Vietnam's Garuda Indonesia in talks with Boeing for jets deal, CEO said JAKARTA, July 3 (Reuters) - Indonesia will sign a pact worth $34 billion with business partners next week to boost purchases from the U.S., as part of efforts to strike a trade deal with Washington ahead of the July 9 deadline, Indonesia's chief economic minister said on Thursday. The deal would include increasing imports of fuels and investment by Indonesian companies in energy and agriculture sectors in the U.S. Separately, flag carrier Garuda Indonesia (GIAA.JK) , opens new tab also said it is in talks to buy up to 75 jets from Boeing BA.N. Sign up here. Jakarta is facing a 32% tariff in U.S. markets and has previously offered to increase U.S. imports to facilitate trade talks between the two sides. Indonesia enjoyed a goods trade surplus of $17.9 billion with the United States in 2024, according to the U.S. Trade Representative. Speaking to journalists, Minister Airlangga Hartarto said the memorandum of understanding due to be signed on July 7 will deploy the $34 billion for new Indonesian investments and purchases in the United States. "This shows that government, regulators, state-owned enterprises and the private sector are together in responding to the imposition of U.S. reciprocal tariffs," Airlangga said. He said that by addressing the trade balance with the United States, Indonesia hoped to get a better trade deal than the one struck with Vietnam. The U.S. announced on Wednesday that it will place a lower-than-promised 20% tariff on many Vietnamese exports, down from the original 46% announced by President Donald Trump in April. Meanwhile, Garuda's potential jet purchase may include 737 Max 8 and 787 jets, its chief executive Wamildan Tsani told reporters after meeting Airlangga. It was unclear whether Garuda's discussion with Boeing is part of the tariff negotiations. The airline is struggling to recover from the impact of the pandemic. It secured a $405 million loan from sovereign wealth fund Danantara Indonesia in June for maintenance, repair and overhaul of its fleet. https://www.reuters.com/business/finance/indonesia-sign-34-bln-pact-with-us-partners-ahead-tariff-negotiation-deadline-2025-07-03/
2025-07-03 08:59
MUMBAI, July 3(Reuters) - The Indian rupee rose on Thursday after weak U.S. jobs data bolstered Fed rate cut bets, while a U.S.-Vietnam trade deal lifted regional sentiment. Dollar-rupee forward premiums were helped by increased odds of rate cuts by the U.S. central bank as well with the 1-year implied yield touching an over one-month peak. Sign up here. The rupee rose to 85.55 as of 11:30 a.m. IST, up 0.2% on the day. Asian currencies were mostly rangebound while regional equities traded in the green, with India's benchmark indices, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab up about 0.4% each. The odds of a Fed rate cut in July rose to one-in-four after a private sector payrolls report released on Wednesday surprised with the first fall in over two years. Those odds were at about one-in-five before the data was released, per CME's FedWatch tool. President Donald Trump also announced on Wednesday that the U.S. has struck a trade deal with Vietnam, including a 20% tariff on exports to the U.S. This helped fuel hopes that more deals may be struck ahead of the July 9 deadline. U.S. and Indian negotiators are pushing try to land a tariff-reducing deal ahead of the deadline but some disagreements remained unresolved, sources familiar with the talks said. Traders expect the rupee to be range-bound in the near-term with resistance pegged around 85.40 and support near the 86 handle. A trade deal "would be a sentimental positive," for the rupee but substantial gains are likely only if it spurs a pick up in portfolio inflows, a trader at a foreign bank said. Later in the day, the focus will be on the U.S. non-farm payrolls report for May which is expected to influence expectations around the future trajectory of benchmark policy rates. "Quite bearish positioning on the broad US dollar index also suggests that a near-term squeeze on dollar shorts may be on the cards, though the broader trend is still for Asian currencies to continue strengthening," MUFG said in a note. https://www.reuters.com/world/india/rupee-forward-premiums-hoisted-by-uptick-fed-rate-cut-wagers-2025-07-03/
