2025-09-05 10:46
LONDON, September 5 (Reuters) - What matters in U.S. and global markets today By Anna Szymanski, Editor-In-Charge, Reuters Open Interest Sign up here. Global equities rose on Friday, supported by growing expectations of a U.S. interest rate cut. All eyes will be on the upcoming U.S. jobs report later today, which could confirm signs of a weakening labour market and reinforce the case for easing by the Federal Reserve. * The STOXX 600 and FTSE 100 gained in early trading as did Asian markets, after the S&P 500 hit another record high yesterday on news that U.S. jobless claims were higher than expected. Traders now appear nearly certain that the Fed will cut interest rates when it has its two-day meeting on September 17. The dollar consequently gave back some of its weekly gains early on Friday. * Long-dated European yields retreated from multi-year highs. They had spiked earlier this week, partly reflecting investor concern about government finances across the pond. UK borrowing costs had hit their highest level since 1998 earlier in the week. * Oil is heading for its first weekly loss in three weeks on concerns about rising supply and weakening demand. Reuters reported on Wednesday that eight members of OPEC+ will consider raising production further at a meeting on Sunday. Meanwhile, U.S. crude inventories rose 2.4 million barrels last week, rather than falling as analysts expected. Today the ROI team will offer you some weekend reading suggestions away from the headlines. Today's Market Minute * President Donald Trump gave Japanese automakers some relief by cutting his high U.S. tariffs on their vehicles, but the reduced levies still mean big pain for Japan's smaller car companies, which will stay under pressure in the crucial market. * Gold prices edged higher on Friday and were on track for their best weekly gain in three months, as expectations of a Federal Reserve rate cut bolstered bullion's appeal, while investors awaited U.S. non-farm payrolls data due later in the day. * Twenty-six nations have pledged to provide postwar security guarantees to Ukraine, which will include an international force on land, sea and in the air, French President Emmanuel Macron said after a summit meeting of Kyiv's allies on Thursday. * Worries over inflation, deteriorating U.S. fiscal health, Federal Reserve independence, and geopolitical instability are raising questions about the stability of long-term Treasuries. In response, many central banks are turning back to that "barbarous relic", gold, writes ROI markets columnist Jamie McGeever. * The $18.7 billion bid by Abu Dhabi National Oil Company (ADNOC) for Australian liquefied natural gas producer Santos is facing a far higher hurdle than just the amount of money on offer. Read the latest from ROI columnist Clyde Russell. Weekend reading suggestions Here are some articles away from the day-to-day headlines that you may find interesting, suggested by the Reuters Open Interest team. Chart of the day Gold is on track for its strongest weekly gain in three months, largely thanks to rising expectations of a Federal Reserve rate cut. ROI markets columnist Jamie McGeever discusses a major milestone for the yellow metal: it now represents a bigger share of central banks' reserves than Treasuries for the first time since 1996. Today's events to watch * U.S August nonfarm payrolls Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-09-05/
2025-09-05 10:36
WARSAW, Sept 5 (Reuters) - The Polish government will extend the cap on electricity prices through the fourth quarter, Energy Minister Milosz Motyka said on Friday, which could remove one inflation risk and boosted market bets on an interest rate cut. Power prices would be frozen at 500 zloty ($137) per megawatt hour in the final three months of the year, Motyka said. Sign up here. Poland's electricity price cap for households expires in October and the central bank has pointed to this as an inflation risk factor and a source of uncertainty. Last month, President Karol Nawrocki vetoed a bill meant to ease rules for building onshore wind farms, which included regulations extending a price freeze. He submitted a draft bill to parliament that included just the government's energy freeze proposal. The government has now prepared a new bill freezing prices in the fourth quarter and included a wage-dependent subsidy to household heating bills starting this year. Motyka said it would pass parliament this month, adding he did not think further energy price freezing would be necessary. "In our opinion, there will be no need to freeze prices because we expect energy prices to fall below 500 zlotys per MWh," he told journalists. Market expectations for interest rate cuts within three months increased slightly following Motyka's statement. "The market is becoming convinced that this reduction can take place," Santander Bank Polska economist Piotr Bielski said. He did not rule out a rate cut in October, but expected rate setters to opt to wait for the central bank's next inflation projection, due in November. Warsaw's utility index (.ENER) , opens new tab outperformed the market, gaining 3.5%. Erste Securities utilities analyst Petr Bartek attributed this to Motyka's comments on electricity prices in 2026 as wholesale market prices fall. "This would be a clear positive move for the sector," he said. ($1 = 3.6405 zlotys) https://www.reuters.com/business/energy/poland-seeks-freeze-fourth-quarter-energy-prices-boosting-rate-cut-hopes-2025-09-05/
2025-09-05 10:29
FTSE 100 up 0.2%, FTSE 250 up 0.3% Ashmore's management fees miss forecasts, shares slide Women's soccer, hot weather boost UK retail sales in July Sept 5 (Reuters) - London shares nudged higher on Friday, led by gains in heavyweight banks and industrials, while investors assessed corporate updates and retail sales data. As of 1012 GMT, the blue-chip FTSE 100 (.FTSE) , opens new tab edged up 0.2% and was on track to log a weekly gain. Sign up here. The domestically focused FTSE 250 (.FTMC) , opens new tab was up 0.3%, but headed towards its second straight weekly decline. In the market, aerospace and defence companies (.FTNMX502010) , opens new tab rose. Babcock (BAB.L) , opens new tab and Melrose Industries (MRON.L) , opens new tab were up about 2.1% each, while Rolls-Royce (RR.L) , opens new tab added 1.1%. Industrial miners (.FTNMX551020) , opens new tab rose, tracking higher copper prices, with Rio Tinto (RIO.L) , opens new tab up 1.5%. Precious metal miners (.FTNMX551030) , opens new tab also advanced. Heavyweight bank stocks (.FTNMX301010) , opens new tab gained 0.7%. Top lenders HSBC (HSBA.L) , opens new tab and Standard Chartered (STAN.L) , opens new tab added 1.7% and 1.3%, respectively. Conversely, consumer staples stocks such as Tesco (TSCO.L) , opens new tab, Unilever (ULVR.L) , opens new tab and M&S (MKS.L) , opens new tab declined. Non-life insurers (.FTNMX303020) , opens new tab declined 1.2%, dragged down by Admiral Group that fell 2.8%, to the bottom of the FTSE 100, after Peel Hunt downgraded the stock to "sell" from "reduce". In corporate updates, Ashmore (ASHM.L) , opens new tab fell 6.5%, to the bottom of the mid-cap index, after the asset manager reported lower-than-expected fee revenue and a dip in profit in its annual results. Concerns over Britain's finances and the government's ability to keep them under control weighed on the markets earlier this week, briefly sending yields on long-dated government bonds to a 27-year high. Investors continue to speculate about tax rises that could dampen economic growth, with Britain set to deliver its budget on November 26. On the data front, retail sales rose more than expected in July, boosted by good weather and the women's European soccer championship, but annual growth was slower than expected after extensive revisions to previous months' data. Investors now await U.S. payrolls data for August, expected at 1230 GMT. Signs of weakness in the report could be crucial for investors who have been pricing in a 25-basis-point Federal Reserve rate cut at its meeting later this month. https://www.reuters.com/world/uk/london-stocks-edge-higher-led-by-industrials-banks-us-jobs-data-focus-2025-09-05/
2025-09-05 10:24
Sept 5 (Reuters) - Futures tied to Canada's main stock index inched up on Friday, ahead of the much-anticipated U.S. and Canadian employment data that could influence the September interest-rate decision by the countries' central banks. Futures on the S&P/TSX index gained 0.12% to 1,717.40 points by 06:00 a.m. ET (1000 GMT). The benchmark index ended higher for the seventh straight session on Thursday, notching another record rally. Sign up here. U.S. and Canadian jobs data, due at 8:30 a.m. ET, could prove pivotal in shaping upcoming policy decisions by the Bank of Canada and the Federal Reserve. Economists forecast Canada's economy added 10,000 jobs in August and the unemployment rate rose to 7% from 6.9% a month earlier. Meanwhile, forecasts for tepid U.S. job growth in August and a rise in unemployment to 4.3%, if accurate, would confirm a softening labor market and seal the case for an interest rate cut from the Fed this month. Money markets see a 71.7% chance of a 25-basis-point interest-rate cut by the BoC on September 17. The benchmark rate is at 2.75%. In commodities, oil extended decline into a third session while gold prices edged higher and copper posted modest gains on Friday. In corporate news, Strathcona Resources (SCR.TO) , opens new tab bought additional 6.04 million common shares of rival MEG Energy (MEG.TO) , opens new tab for about C$172.7 million ($124.99 million). 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/world/americas/tsx-futures-edge-higher-ahead-employment-data-2025-09-05/
2025-09-05 10:24
BUENOS AIRES, Sept 5 (Reuters) - Argentina's President Javier Milei is facing increasing pressure over a bribery scandal and growing unease over public spending as he enters a pivotal election season that could define his government's grip on power. The fiery, shaggy-haired leader campaigned on an anti-establishment, anti-corruption platform. He won hefty voter support in the 2023 presidential election over his pledges to cut state spending and dramatically reduce what he calls the "cancer" of inflation to get Argentina's economy back on track. Sign up here. Milei has indeed successfully driven down the monthly inflation rate - from 25% when he took office to about 2% in July - and achieved a budget surplus for the first time in more than a decade. But his government is facing mounting pressure as a corruption scandal has dominated headlines, raising questions over the political fallout for upcoming legislative elections. At the end of August, local media published audio recordings that appeared to feature a senior government official discussing bribery and suggesting Milei's sister and chief of staff, Karina Milei, was getting kickback payments. Javier Milei has dismissed the allegations as lies and Karina Milei has not commented on them. The president's approval rating was already on the decline, which political scientists attributed to frustration with his tight austerity measures. It dropped to 39% in August, according to a poll by Trespuntozero taken after the corruption allegations emerged - the lowest it had recorded for Milei to date and a drop from 48% in July. Another recent survey by Management & Fit found that 73% of people were concerned by the bribery scandal. The local stock market benchmark index (.MERV) , opens new tab fell over 14% last month, and this week touched its lowest since early April. Still, it is unclear how much real effect the turmoil will have on the election. Many of Milei's supporters have shrugged off the allegations, echoing the president's assertion that he is the victim of an operation orchestrated by the opposition. "They are all lies," said Freddie Correa, 75, as he helped carry a large banner with Milei's face at a campaign event on Wednesday in Buenos Aires province. "They are only allegations to take our votes." ENDING KIRCHNERISMO Milei has pitched this weekend's Buenos Aires province legislative elections and October's midterm elections as an opportunity to squash Kirchnerismo, the opposition movement led by former president Cristina Kirchner. Facundo Cruz, a political consultant in Buenos Aires, said that the divided political climate means that Milei won't lose much support over the scandal. "It's a very polarized election," he said. "There's this idea that you need to defend the government despite this." The September 7 elections in Buenos Aires province, where nearly 40% of the country's voters reside, will be a challenge for Milei in what has traditionally been a stronghold of the Peronist opposition. On October 26, Argentines will vote to fill seats in Congress, where Milei's government currently has a minority. A bigger congressional bloc would give him a freer hand to more easily block opposition measures seeking to strike down his reforms. In the face of Milei's austerity policies, opposition legislators have sought to increase spending on health and education, and on Thursday for the first time overturned his veto, on a bill to increase the budget to help people with disabilities. A weak showing in the elections would increase uncertainty about his ability to enact reforms that many investors seek. With markets on edge, Argentina's Treasury said it would begin to intervene in the foreign exchange market this week, seeking to stabilize the peso - a move that clashes with Milei's free-market ideology. "I think an isolated case of corruption is one thing, but... when mixed with economic turbulence and political difficulties, that is a much more difficult combination for the government," said Buenos Aires-based political consultant Ana Iparraguirre. https://www.reuters.com/world/americas/pressure-grows-milei-ahead-argentina-midterm-elections-2025-09-05/
2025-09-05 10:23
MUMBAI, Sept 5 (Reuters) - The Indian rupee hit a lifetime low on Friday, pressured by worries over U.S. tariffs, leaving traders on edge even as likely central bank intervention helped limit losses. The Asian currency fell 0.14% to 88.2650 against the U.S. dollar, from 88.1450 in the previous session. Sign up here. Friday’s move ended a volatile week, during which the rupee largely stayed below the 88-mark, weighed down by persistent portfolio outflows and U.S. tariff-related uncertainties. Washington imposed a 50% tariff on key Indian exports from August 27 over what the White House sees as India's opportunistic purchases of cheap Russian oil. The rupee, which slipped past the 88-mark for the first time last week, slipped to its record low of 88.36 on Friday, as foreign banks and oil companies bought dollars and traders covered speculative positions. Foreign portfolio investors have pulled out $1.4 billion from Indian equities so far in September, taking the total outflow so far this year to over $16 billion. On the day, the Reserve Bank of India likely intervened in the forex market through state-run banks, which were spotted selling dollars above the 88.30 mark, traders said. Market participants expected support for the rupee at 88.70 levels, but the RBI came in much earlier to cap the slide, said Apurva Swarup, a vice president at Shinhan Bank. "Uncertainty around U.S. tariff is still spooking the market even as the Indian government is devising ways to counter the impact," Swarup said. India hopes to conclude a bilateral trade agreement with the U.S. by November. Meanwhile, Asian currencies strengthened against the dollar as traders positioned for a Federal Reserve rate cut this month. The Korean won led gains. The dollar index was 0.22% lower at 98.014. Traders await the U.S. nonfarm payrolls data, due after market hours. https://www.reuters.com/world/india/rupee-hits-record-low-tariff-jitters-central-bank-caps-decline-2025-09-05/
