2025-09-12 20:04

MOSCOW, Sept 12 (Reuters) - A Ukrainian drone attacked one of the buildings of the Smolensk nuclear power station in western Russia overnight, but it was downed and no damage or casualties were reported, a subsidiary of Russian nuclear corporation Rosatom said on Friday. Separately, Yevgeny Balitsky, the Moscow-appointed governor of Ukraine's Zaporizhzhia region, said a Ukrainian drone detonated in the air, adding that such incidents occurred regularly. Staff at the Zaporizhzhia plant have reported two attacks in the past week on a training centre near the plant's reactors. Sign up here. Russian forces seized the Zaporizhzhia plant in the early weeks of the February 2022 invasion of Ukraine and each side has since regularly accused the other of staging attacks. Ukrainian officials made no comment on either incident reported by Russian officials. The U.N. nuclear watchdog, the International Atomic Energy Agency, has repeatedly asked both sides to refrain from provocative actions. https://www.reuters.com/world/europe/russia-says-ukrainian-drone-attacked-nuclear-power-station-no-damage-caused-2025-09-12/

2025-09-12 20:01

Cracks appearing in labor market give green light to Fed University of Michigan consumer sentiment falls for 2nd month Euro awaits Fitch verdict on French finances NEW YORK, Sept 12 (Reuters) - The U.S. dollar drifted higher on Friday, a day after falling on a surge in U.S. jobless claims and a modest inflation uptick, ahead of a Federal Reserve meeting next week that is likely to cut interest rates after a roughly nine-month hiatus. The greenback rose 0.2% to 147.53 yen , rising for three straight weeks. The dollar firmed earlier on Friday after a U.S.-Japanese joint statement affirmed exchange rates should be "market determined" and that excess volatility and disorderly moves in exchange rates were undesirable. Sign up here. The dollar index was little changed at 97.59, but stayed on track to post a weekly fall of 0.1% for its second consecutive weekly decline. John Velis, Americas macro strategist at BNY in New York, said Friday's gains were more about position-squaring ahead of the weekend. "The broader picture is still quite negative for the dollar on a variety of measures," Velis said. "One, of course, is the Fed now beginning to cut rates. The other is, we still see hedging behavior taking place, so foreign investors buying U.S. assets and selling the dollar to hedge it, which is going to keep pressure on the dollar." Data showing U.S. consumer sentiment falling for a second straight month in September weighed slightly on the greenback. The University of Michigan said on Friday its consumer sentiment index fell to 55.4 this month, the lowest since May, from a final reading of 58.2 in August. Economists polled by Reuters had been expecting a reading of 58.0, little changed from the month before. "If the Fed delivers the rate cut that is widely expected next week, and they signal that more rate cuts are coming, businesses may find optimism that they have an opportunity to recapture margin lost to tariffs, and consequently they can increase their capacity to increase headcount," wrote Tom Simons, chief U.S. economist at Jefferies, in a email after the data. On Thursday, data showed the biggest weekly increase in four years in the number of Americans filing new applications for jobless benefits. That overshadowed U.S. consumer inflation data for August, which showed prices rising at the fastest pace in seven months but with increases still modest and broadly in line with expectations. While the mixed data might add some wrinkles to the Fed's policy deliberations next week, investors are mostly focused on rate cut prospects. Pricing of Fed fund futures indicates that the market believes the Fed is certain to cut its key interest rate by 25 basis points (bps) on September 17. However, traders have reined in bets on a larger 50 bps rate cut next month, with pricing implying a shallower path of easing before the end of the year than anticipated earlier, according to the CME Group's FedWatch tool. The benchmark 10-year Treasury note yield rose 4.9 bps to 4.06%. On Thursday, the yield fell below 4% for the first time since April. The euro was flat versus the dollar at $1.1736 , a day after rising, as traders curbed their bets on another European Central Bank rate cut this cycle to bet on another move at less than 50%. The ECB kept its key interest rate on hold at 2% for a second straight meeting on Thursday, with President Christine Lagarde saying that the euro zone remains in a "good place" and that risks to the economy had become more balanced than before. Fitch Ratings, meanwhile, is expected to give its verdict on French public finances after Friday's markets close following the confidence motion on September 8. "Going explicitly against the direction of its (Fitch) model and 'manually' downgrading the rating would require the agency to come to the conclusion that the balance of power between stakeholders of public funds has tilted further away from financial creditors since the last rating decision in spring," Citi analysts wrote in a research report. Among other currencies, sterling was little changed at $1.3564 , after data showed the British economy stagnated in July, while the Australian dollar was a touch softer at US$0.6651 , not far from a 10-month high. https://www.reuters.com/world/africa/us-dollar-edges-up-positioning-moves-outlook-stays-negative-2025-09-12/

2025-09-12 19:49

Traders continue to worry over bearish US economic data Ukrainian drones strike Russia's largest oil terminal Prices supported by Chinese buying and war risks Brent and WTI benchmarks fell sharply in previous session Sept 12 (Reuters) - Oil prices rose on Friday after a Ukrainian drone attack suspended loadings from the largest port in western Russia, but gains were capped by concerns about U.S. demand. Brent crude futures settled at $66.99 a barrel, up 62 cents, or 0.93%. U.S. West Texas Intermediate crude finished at $62.69, a gain of 32 cents, or 0.51%. Sign up here. Early in the day, crude reacted to the drone attack on Russia's northwestern port of Primorsk, which led to a suspension of oil loading operations overnight, an official from Ukraine's SBU security service said. "Those attacks on Russian energy infrastructure have room to drag down Russian crude and refined product exports," UBS analyst Giovanni Staunovo said. But later in the day, gains shrank as traders continued to focus on a revised U.S. jobs report issued earlier in the week along with higher inflation figures. "The economic data is not supportive of a rally," said John Kilduff, partner with Again Capital. "The overall weight is down and the trend is bearish." The U.S. economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, the U.S. Labor Department said on Tuesday. The department said on Thursday the consumer price index rose 0.4% in August, the biggest gain since January, after increasing 0.2% in July. The markets are also watching for sanctions or tariffs from the Trump administration aimed at reducing use of Russian crude by India and China. "Any potential for the tariffs to India and China to harm exports, then we would see Russian barrels off the market," Kilduff said. The Brent and WTI benchmarks fell by 1.7% and 2% respectively on Thursday. The International Energy Agency said on Thursday global oil supply would rise more rapidly than expected this year because of planned output increases by the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and allies such as Russia, according to an agency report. However, OPEC's own report later in the day made no change to its relatively high forecasts for oil demand growth this year and next, saying the global economy was maintaining a solid growth trend. On the supply side, India's largest private port operator, Adani Group, has banned tankers sanctioned by Western countries from entering all of its ports, three sources told Reuters and documents show, potentially curbing Russian oil supplies. India is the biggest buyer of Russian seaborne oil, mostly shipped on tankers that are under sanctions by the European Union, the United States and Britain. https://www.reuters.com/business/energy/oil-gains-weighed-down-by-us-demand-worries-2025-09-12/

2025-09-12 19:32

Global stock index sticks close to Thursday's record Consumer sentiment dips to lowest since May Dollar rises with Treasury yields Gold trading near record highs NEW YORK/LONDON, Sept 12 (Reuters) - MSCI's global equities index stayed close to Thursday's record levels while U.S. Treasury yields rose on Friday after going into reverse in the prior session when expectations climbed for U.S. rate cuts. The University of Michigan's Surveys of Consumers showed that U.S. consumer sentiment fell for a second straight month in September to its lowest point since May as consumers saw rising risks to business conditions, the labor market and inflation. Sign up here. Consumer inflation expectations for the next year stayed at 4.8% but inflation expectations for the next five years rose to 3.9% from 3.5% last month. "The University of Michigan sentiment study came in worse than expected and more importantly inflation expectations remained pretty high. That's sending yields a little higher," said Jack Ablin, founding partner and chief investment strategist at Cresset Capital. "Investors worry that expectations dictate reality and perhaps consumers will act accordingly if they expect inflation to be higher than usual ... and just perpetuate the inflation hamster wheel." Wall Street was a mixed bag after all three of its main indexes registered record closing highs on Thursday, when investors reacted bullishly to weaker-than-expected jobs data by ramping up bets that the Federal Reserve would make three rate cuts in a row, including a cut on September 17 after its meeting. "The market feels a little stretched and toppy. And now investors in the market are going to focus on next Wednesday and exactly what Jay Powell says, how he says it. Does he sound more dovish? What lines did he delete? What lines did he add?," said Kenny Polcari, partner and chief market strategist at SlateStone Wealth in Jupiter, Florida, referring to Fed Chair Jerome Powell's press conference and the Fed's written statement. "Rates are going lower for sure but I do think the market has gotten ahead of itself in terms of valuation." Thursday's U.S. consumer price report had been seen as the last major hurdle before the Fed meeting. But while prices showed a bigger-than-expected increase, market participants kept their focus on a separate report that showed a sharp rise in unemployment claims. On Wall Street at 02:52 p.m. the Dow Jones Industrial Average (.DJI) , opens new tab fell 149.75 points, or 0.32%, to 45,958.25, the S&P 500 (.SPX) , opens new tab rose 10.97 points, or 0.17%, to 6,598.44 and the Nasdaq Composite (.IXIC) , opens new tab rose 124.18 points, or 0.56%, to 22,167.06. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 2.19 points, or 0.23%, to 973.64 while the pan-European STOXX 600 (.STOXX) , opens new tab index closed down 0.09%, after giving up earlier gains. In currencies, the U.S. dollar rose on Friday, a day after falling on a surge in U.S. jobless claims and modest inflation, as investors prepared for interest rate cuts after a roughly nine-month hiatus. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.01% to 97.56. Against the Japanese yen , the dollar strengthened 0.18% to 147.47. U.S. and Japanese finance ministers on Friday released a statement reaffirming that neither country would target currency levels in their policies. The euro was up 0.05% at $1.1739. On Thursday the European Central Bank had kept rates unchanged and signalled that it was in a "good place" on policy. After the meeting, ECB sources told Reuters the December meeting would be the most realistic time frame to debate whether another cut was needed to buffer the economy. Britain's economy recorded zero monthly growth in July, in line with forecasts but showing a sharp drop in factory output, weighing on sterling , which weakened 0.04% to $1.3567. In energy markets, oil prices settled higher after a Ukrainian drone attack on a Russian port suspended loadings, outweighing pressure from oversupply concerns and weaker U.S. demand risks. U.S. crude settled up 0.51% or 32 cents at $62.69 a barrel and Brent ended at $66.99 per barrel, up 0.93%, or 62 cents on the day. In precious metals, gold was showing its fourth weekly gain in a row and trading close to its Tuesday record high, as investors looked ahead to U.S. rate cuts. Spot gold rose 0.41% to $3,648.59 an ounce. It had hit a record high of $3,673.95 on Tuesday. https://www.reuters.com/world/china/global-markets-wrapup-6-2025-09-12/

2025-09-12 18:28

Sept 12 (Reuters) - Gemini Space Station shares jumped 32.2% in their Nasdaq debut on Friday, giving the cryptocurrency exchange a valuation of $4.4 billion and capping a bright week for digital asset companies in a resurgent U.S. IPO market. The company's shares opened at $37.01, above an already raised IPO price of $28 apiece, at which it raised $425 million by selling around 15.2 million shares. The company marketed the IPO in the price range of between $24 and $26. Sign up here. Gemini's strong debut underlines how crypto firms have anchored the recent sharp rebound in the IPO market, as friendly regulatory policies and rapid institutional adoption have renewed investor optimism for digital assets. On Thursday, blockchain lender Figure (FIGR.O) , opens new tab had a blockbuster market debut, close on the heels of cryptocurrency exchange Bullish , whose shares more than doubled on their first trade last month. Meanwhile, the U.S. IPO market is reaping the benefits of fading tariff anxiety and a strong stock market to have its busiest week since July 2021. Swedish fintech firm Klarna (KLAR.N) , opens new tab went public on Wednesday in a hotly anticipated debut that could set the stage for more fintech hopefuls. "Gemini has chosen the perfect time to capitalize on the favorable environment, following the recent success of the Bullish IPO and regulatory shifts from a pro-crypto administration. For Gemini, the IPO is both a bid to raise capital for expansion and an effort to clean up its balance sheet," said Jacob Zuller, analyst at Third Bridge. GRIT TO GEMINI Following an IPO that was 20 times oversubscribed, the debut marks a striking turnaround for Gemini and its founders, billionaire twins Cameron and Tyler Winklevoss. Tyler and Cameron Winklevoss own about 75 million shares after Gemini's IPO, worth roughly $2.78 billion according to Reuters' calculations based on SEC filings. The company, once entangled in regulatory probes with the SEC and CFTC, has benefited from eased oversight of the crypto sector under U.S. President Donald Trump, who, along with family, has been an active player in the still nascent slice of finance. Gemini reported a net loss of $282.5 million in the first half of 2025, up considerably from $41.4 million in the year-ago period. Experts at Third Bridge said trading volumes are expected to rise, driven by institutional adoption, which represents the majority of the company's client base. "We're really excited to go into this next phase, improve transparency even further, to the marketplace and to our partners, and build upon the ethos that we've had for the past decade," said Dan Chen, Gemini's chief financial officer, in an interview with Reuters. Highlighting rising institutional interest, Nasdaq earlier in the week disclosed a $50 million strategic investment in Gemini that also likely boosted investor confidence. New York City-based Gemini joins Coinbase (COIN.O) , opens new tab and Bullish as a publicly listed cryptocurrency exchange in the country. Robinhood (HOOD.O) , opens new tab also operates as a digital asset exchange platform among its other financial services. https://www.reuters.com/business/winklevoss-twins-crypto-exchange-gemini-valued-44-billion-strong-nasdaq-debut-2025-09-12/

2025-09-12 16:14

Sept 12 (Reuters) - Morgan Stanley and Deutsche Bank expect the U.S. Federal Reserve to deliver interest rate cuts at all its three meetings this year, following data this week showing more modest inflation pressures. The two brokerages in separate notes said on Friday they now expect the Fed to cut rates by 25 basis points at each of its remaining meetings in September, October and December. Sign up here. The firms previously forecast one 25-basis-point cut each in September and December. The Fed is widely expected to kick off a new easing cycle in next week's policy meeting - its first since the 25-bps rate cut in December 2024 - after recent data pointed to a slowdown in the job market. Last month, Fed Chair Jerome Powell signaled a rate cut was possible at the September 16-17 policy meeting, citing rising labor market risks, while cautioning that inflation remained a threat. Morgan Stanley said market conditions give the Fed room to move more quickly toward a neutral policy stance. According to the Wall Street brokerage, the Fed is likely to deliver four back-to-back 25-bps rate cuts starting next week and continuing through January, with two further cuts projected for April and July 2026. "While we currently do not have additional rate cuts in our forecast for next year, given that our inflation and labor market forecasts are inconsistent with rates below neutral, risks are skewed towards more reductions in 2026," said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. Traders have priced in a 95% chance of a 25-bps rate cut next week, according the CME FedWatch Tool, with a slim 5% chance of a deeper 50-bps cut. After a soft August labor print, Standard Chartered emerged as the only brokerage predicting a 50-bps rate cut by the Fed this month, diverging from the broader consensus. https://www.reuters.com/business/morgan-stanley-deutsche-bank-expect-three-us-interest-rate-cuts-this-year-2025-09-12/