2025-11-05 05:55
Nov 5 (Reuters) - Iran must "seriously improve" cooperation with the United Nations inspectors to avoid heightening tensions with the West, the Financial Times reported on Wednesday, citing International Atomic Energy Agency chief Rafael Grossi. Grossi told the FT that while the IAEA has carried out about a dozen inspections in Iran since hostilities with Israel in June, it had not been given access to nuclear facilities such as Fordow, Natanz and Isfahan, which were bombed by the United States. Sign up here. Grossi said in October that movement had been detected near Iran's enriched uranium stockpile but that it did "not imply that there is activity on enrichment". Iranian Foreign Ministry spokesperson Esmaeil Baghaei subsequently said that Grossi was "fully aware of the peaceful nature" of Iran's nuclear programme and should not express "unfounded opinions" on it. Iranian officials have blamed the IAEA for providing a justification for Israel's bombing, which began the day after the IAEA board voted to declare Iran in violation of obligations under the Nuclear Non-Proliferation Treaty. Grossi told the FT that while the agency was trying to approach the "bumpy" relations with Iran with understanding, the country still needed to comply. "You cannot say, 'I remain within the non-proliferation of nuclear weapons treaty’, and then not comply with obligations," Grossi said. "You cannot expect the IAEA to say, 'OK, since there was a war you are in a different category' . . . Otherwise what I will have to do is report that I have lost all visibility of this material", he said. https://www.reuters.com/world/middle-east/iaea-says-iran-must-seriously-improve-nuclear-cooperation-ft-reports-2025-11-05/
2025-11-05 05:54
US October private payrolls rise by 42,000 Equities down on concerns of stretched valuation Traders see 63% chance of US interest rate cut in December Nov 5 (Reuters) - Gold prices rose over 1% on Wednesday as investors avoided riskier assets despite stronger-than-expected private U.S. payrolls data. Spot gold was up 1.3% at $3,983.89 per ounce as of 2:30 p.m. ET (1930 GMT). U.S. gold futures for December delivery rose 0.8% to settle at $3,992.90 per ounce. Sign up here. "Gold and silver are modestly higher despite a stronger-than-expected ADP private payrolls report, which is the best broad jobs indicator given the shutdown. This should give comfort to bulls who were surprised that metals fell along with risky assets yesterday," said Tai Wong, an independent metals trader. U.S. private employment increased by 42,000 jobs last month, above Reuters' estimate of a 28,000 rise, the ADP employment report showed on Wednesday. A strong jobs market typically makes interest rate cuts less likely and can keep rates higher for longer. Stocks fell on Wednesday from record highs on fears that equity markets might have become overstretched. "Some safe-haven demand has surfaced at mid-week as the global stock markets are still a bit shaky amid ideas U.S. stocks are overvalued and that there is an AI (artificial intelligence) stock bubble," said Jim Wyckoff, senior analyst at Kitco Metals, in a note. Meanwhile, the Federal Reserve cut U.S. interest rates last week, with Chair Jerome Powell indicating it could be the final reduction this year. Traders see a 63% chance of another rate cut in December, down from over 90% last week. Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainty. Eyes will also be on a U.S. Supreme Court hearing later on Wednesday on the legality of President Donald Trump's tariffs, after a lower court ruled the administration had overstepped its authority by imposing levies under an emergency law. Elsewhere, spot silver gained 2.2% at $48.13 per ounce, platinum rose 1.7% to $1,561.65, and palladium climbed 2.4% to $1,424.22. https://www.reuters.com/world/india/gold-rebounds-near-1-week-low-bargain-hunting-ahead-us-jobs-data-2025-11-05/
2025-11-05 05:36
A look at the day ahead in European and global markets by Gregor Stuart Hunter A fuse lit on Wall Street turned explosive a day later in Asia, sparking the biggest losses for stocks in Japan and South Korea since April's "Liberation Day" tariff announcement. Sign up here. The Nikkei 225 (.N225) , opens new tab tumbled on Wednesday, almost 7% below a record high set the day before, while South Korea's KOSPI slumped as much as 6.2% at one point before recovering, as many high-flying tech sector stocks cratered. On the bonfire was Softbank Group (9984.T) , opens new tab, plunging as much as 14.4%, as one of Asia's biggest tech investors digested a 2% decline for the Nasdaq Composite overnight, while Samsung Electronics (005930.KS) , opens new tab fell as much as 7.8% and SK Hynix (000660.KS) , opens new tab dropped as much as 9.2%. European stocks looked set to join the selloff in early trading, with pan-region futures down 0.7%, German DAX futures falling 0.6% and FTSE futures off 0.3%. Bitcoin rebounded 1.8% to $102,104 after falling below the $100,000 mark for the first time since June, while gold was last up 0.8% at $3,962 per ounce. U.S. e-mini futures slid 0.1% after a 1.2% drop for the S&P 500 (.SPX) , opens new tab overnight on fears equity markets may have become overstretched after the CEOs of Wall Street heavyweights Morgan Stanley (MS.N) , opens new tab and Goldman Sachs (GS.N) , opens new tab questioned whether sky-high valuations can be sustained. Despite the volatility in equity markets, FX remained mostly unbothered, with the U.S. dollar index grazing a five-month high of 100.25. The yield on benchmark 10-year Treasury notes fell to a low of 4.0542% compared with its U.S. close of 4.091% on Tuesday, but has since edged upwards. Aside from markets, fireworks of a different kind were set off by Democrats in the U.S., who swept major elections in Virginia, New Jersey and New York City in the first electoral test of U.S. President Trump's latest administration. Democratic socialist Zohran Mamdani was triumphant in the race to become mayor of New York City, the first Muslim to hold the office in America's biggest city. Key developments that could influence markets on Wednesday: Earnings: Marks and Spencer Group, BMW, Novo Nordisk, Enel, Telecom Italia Economic data: Germany: Industrial Orders for September, Manufacturing O/P for September, Consumer Goods SA for September, HCOB Services and Composite PMI for October France: Industrial Output for September, HCOB Services and Composite PMI for October UK: New Passenger Cars Registration for October S&P Global Service and Composite PMI for October, Reserve Assets Total for October Debt auctions: Germany: 16-year and 19-year government debt https://www.reuters.com/world/china/global-markets-view-europe-2025-11-05/
2025-11-05 04:43
US private payrolls rebound in October Risk-off tone in Asia eases in European trading Sterling higher but remains near 7-month low ahead of BoE meeting NEW YORK, Nov 5 (Reuters) - The U.S. dollar held near a five-month high against a basket of currencies on Wednesday, as economic data assuaged concerns about the U.S. economy and the labor market, prompting investors to weigh the likelihood of another interest rate cut this year. The dollar index , which measures the buck's strength against a basket of six rival currencies, was about flat on the day at 100.16, having risen 1.5% since last Wednesday, when the Federal Reserve cut rates but cooled expectations for further easing this year. The index is at its highest since late May. Sign up here. Data on Wednesday showed U.S. private payrolls rose by 42,000 jobs in October, exceeding expectations of a 28,000 gain, according to a Reuters poll of economists. The turnaround likely does not suggest a material shift in the labor market because some industries such as professional business services shed jobs for a third straight month, but it did help soothe worries about labor market weakness. Separately, data showed the U.S. services sector activity picked up in October amid a solid increase in new orders. "The ongoing hawkish repricing in rates and currency markets was given added momentum this morning when ADP reported a stronger-than-expected rebound in private sector job creation," said Karl Schamotta, chief market strategist with payments company Corpay in Toronto. "With the preponderance of available data pointing to resilience in American labour markets, the case for an aggressive course of monetary easing is looking fairly flimsy here, and investors are growing reluctant to place big directional bets on lower yields ahead," Schamotta said. RISK OFF The dollar, which had been helped in the previous session by a bout of risk aversion sweeping global financial markets, eased from session highs on Wednesday as investors crept back into riskier currencies. The risk-sensitive Australian dollar was up 0.3% to $0.651 on Wednesday, while the safe-haven yen, which gained as much as 0.5% earlier in the session, reversed course to trade down 0.3% against the buck. That left the dollar index at an inflection point, analysts said. "A push through the low 100 level would suggest that the general USD rebound is likely to extend, potentially quite significantly over the next few weeks," FX strategists at Scotiabank said in a note. "A stall and reversal from the low 100 area, meanwhile, implies a continuation of the broad consolidation range for the DXY in place since the middle of the year," they wrote. Investors were focused on a U.S. Supreme Court hearing where justices on Wednesday raised doubts about the legality of President Donald Trump's sweeping tariffs, a case that could test presidential powers and reshape the global economy and currency markets. BANK OF ENGLAND TO MEET ON THURSDAY Sterling steadied after its recent selloff, last up 0.2% on the day on the dollar at $1.305, but still near multi-month lows on the dollar and multi-year lows on the euro. The Bank of England meets on Thursday, and with market pricing showing a roughly one-in-three chance of a 25 basis point rate cut, whatever the BoE decides could cause a knee-jerk reaction in the pound. The dollar was 0.1% lower against the Swedish crown after the Riksbank's decision to hold rates steady, as expected. Norway's central bank was also scheduled to meet on Thursday. Leading cryptocurrency bitcoin rose 4% to around $103,995, after bouncing back from earlier losses. It slid 6.1% on Tuesday to below $99,000 for the first time since June 22. https://www.reuters.com/world/asia-pacific/safe-haven-yen-dollar-shine-amid-selloff-stocks-nz-dollar-slides-2025-11-05/
2025-11-05 00:38
Typhoon Kalmaegi leaves at least 85 dead, dozens missing Cebu hardest hit, homes destroyed, residents salvage belongings Kalmaegi to strengthen over South China Sea, heads towards Vietnam CEBU, Philippines, Nov 5 (Reuters) - Residents of the central Philippines on Wednesday began scraping mud from streets and homes that survived after Typhoon Kalmaegi killed at least 85 and left dozens missing as it tore through the region. Scenes of destruction emerged in the hardest-hit province of Cebu, a major tourist hub, as floodwaters receded, revealing the scale of the damage: homes reduced to rubble, overturned vehicles, streets choked with debris, and lives upended. Sign up here. In Cebu City, 58-year-old Marlon Enriquez tried to salvage what was left of his family's belongings as he scraped off the thick mud coating his house. "This was the first time that has happened to us. I've been living here for almost 16 years and it was the first time I've experienced flooding (like this)," he said. HELICOPTER CRASH DEATHS But not everyone had homes to return to. In the neighbouring city of Talisay, 38-year-old Eilene Oken walked through what used to be her neighbourhood, only to find her home completely destroyed. "We worked and saved for this for years, then in an instant, it was all gone," she said, her voice breaking. But Oken said she remains grateful because her family, including her two daughters, were unharmed. Among the 85 fatalities were six military personnel whose helicopter crashed in Agusan del Sur on the island of Mindanao during a humanitarian mission. The disaster agency reported 75 people missing, and 17 injured. The devastation from Kalmaegi, locally named Tino, comes just over a month after a magnitude 6.9 earthquake struck northern Cebu, killing dozens and displacing thousands. STORM EXPECTED TO GAIN STRENGTH The storm submerged homes and caused widespread flooding and power outages. More than 200,000 people were evacuated across the Visayas region, including parts of southern Luzon and northern Mindanao. Kalmaegi, the 20th storm to hit the Philippines, is forecast to gain strength while over the South China Sea. It is on its way to Vietnam where preparations are underway ahead of the typhoon's expected landfall on Friday. China has warned of a "catastrophic wave process" in the South China Sea and activated maritime disaster emergency response in its southernmost province of Hainan, state broadcaster CCTV said. The report on Wednesday did not specify which coastal areas or parts of the sea would be affected, but China claims a number of islands in the vast waters, including the Spratly Islands and the Paracel Islands which it says are administered by Hainan's provincial government. In September, Super Typhoon Ragasa swept across the northern Philippines, forcing schools and government offices to shut down as it brought fierce winds and torrential rain. https://www.reuters.com/business/environment/typhoon-kalmaegi-kills-least-58-philippines-heads-toward-vietnam-2025-11-05/
2025-11-05 00:33
One member saw need to hold to avoid surprising markets Another saw timing ripe for hike from Japan economic perspective Two members unsuccessfully proposed a hike to 0.75% in September Some warned of cost of waiting, favour hike at regular intervals BOJ kept rate steady in Sept, Oct; focus on Dec meeting TOKYO, Nov 5 (Reuters) - A growing number of policymakers at the Bank of Japan believed that conditions were falling into place for interest rates to rise, with two members advocating an immediate increase, minutes of the central bank's September meeting showed on Wednesday. At the two-day meeting through September 19, the nine-member board kept interest rates steady at 0.5%, turning down proposals made by two hawkish members to raise borrowing costs to 0.75%. Sign up here. In a sign the focus of debate was shifting towards the exact timing of the next rate hike, several members said it would not be too late to await "a little more hard data," the minutes showed. "Although conditions needed for raising rates were gradually being met, hiking rates at this point would come as a surprise to the market and should be avoided," another member was quoted as saying. A third member cited uncertainty over the U.S. economic slowdown as a reason to hold off hiking rates, but added it might be time to consider raising rates again "judging solely from the perspective of Japan's economic conditions," the minutes showed. The minutes highlight a growing momentum within the board towards resuming rate hikes as concerns recede that higher U.S. tariffs could derail Japan's fragile economy. While the BOJ kept rates steady again at a subsequent meeting in October, Governor Kazuo Ueda sent the strongest signal to date that a hike was possible as soon as December. The minutes revealed that board members debated the pros and cons of waiting, as members weighed downside risks to growth and inflationary pressure from stubbornly high food costs. One member called for raising rates at "somewhat regular intervals", stating that a wide range of information would be available such as corporate first-half earnings, full-year earnings outlook and the BOJ's "tankan" business survey. Another member said that while waiting longer to raise rates would give the BOJ additional insight into the U.S. economic outlook, the cost of doing so would "gradually increase", the minutes showed. Doves, however, warned of Japan's long experience with deflation as a reason to go slow with one pointing to the fact that inflation expectations have yet to be anchored at the central bank's 2% target, the minutes showed. "As long as inflation expectations were considered to be not well anchored, it was appropriate for the BOJ to maintain accommodative financial conditions as much as possible," the member was quoted as saying. Last year, the BOJ exited a decade-long, massive stimulus programme. It raised rates to 0.5% in January on the view Japan was close to durably hitting its 2% inflation target. It has kept interest rates steady since then. Core consumer inflation has exceeded the BOJ's target for more than three years, but Ueda has stressed the need to tread cautiously until underlying inflation - or price moves excluding one-off factors - stabilises around 2% backed by sustained wage gains. https://www.reuters.com/world/asia-pacific/boj-board-debated-pros-cons-rate-hike-pause-september-minutes-shows-2025-11-05/
