2024-09-30 00:32

U.S. indexes end choppy session higher Fed's Powell takes less dovish tone Wall Street ends quarter, month with gains Oil benchmarks fall the most in a quarter in a year China shares surge again on stimulus rush NEW YORK/LONDON, Sept 30 (Reuters) - MSCI's global equities index fell on Monday and the dollar rose as the Federal Reserve Chair Jerome Powell dampened hopes for another big rate cut, while oil futures ended flat after a choppy session on concerns about an escalating conflict in the Middle East. Global benchmark Brent crude, however, posted its biggest monthly loss since November 2022 and its biggest quarterly drop in a year, slumping 17% in the third quarter, as waning global demand concerns overshadowed fears of the conflict curtailing supply. Stock trading was choppy after the Powell suggested that the central bank was not in a hurry to cut rates. While some investors had been betting on more substantial easing, Powell signalled that the Fed would make two 25 basis point cuts this year if the economy evolves as expected. "That sounded less dovish than the market had priced in. There were some expectations for a 50 basis point cut by the end of the year. That comment probably took it off the table," said Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas. Wall Street indexes had rallied last week with help from a benign reading on core U.S. inflation on Friday that had boosted bets for another half-point rate from the Fed. But on Monday traders saw a 36.7% probability of a 50 basis point cut in November, down from 53.3% on Friday, according the latest reading on CME Group's FedWatch tool , opens new tab. While stocks fell during Powell's speech, they regained lost ground with the S&P 500 and the Dow registering record closing highs on the last day of the quarter when many traders make last minute adjustments to their portfolios. "The price increases at the end of the day were probably due in part to quarter-end-window dressing," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey. The Dow Jones Industrial Average (.DJI) , opens new tab rose 17.15 points, or 0.04%, to 42,330.15, the S&P 500 (.SPX) , opens new tab rose 24.31 points, or 0.42%, to 5,762.48 and the Nasdaq Composite (.IXIC) , opens new tab rose 69.58 points, or 0.38%, to 18,189.17. For the month, the S&P 500 gained 2.01% and for the quarter it rose 5.53%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 1.82 points, or 0.21%, to 851.02 for the day. For the month the global index was showing an increase of around 2% and for the quarter it was registering a gain of around 6%. Along with the Fed commentary, Per Stirling Capital's Phipps said that investors were monitoring the Middle East fighting and devastation from Hurricane Helene, as well as an impending strike by U.S. port workers and news from China. In Beijing's trading day, equities had rallied sharply after China's latest round of stimulus. China government stimulus measures announced last week continued to boost stock markets, with the blue-chip CSI300 (.CSI300) , opens new tab closing up 8.5%, its biggest daily gain since 2008 adding to its 25% run-up in the last five trading sessions. The dollar rose after Powell's more hawkish tone lead traders to pare bets for a big rate cut in November. "He took his hawkish pills,” said Steve Englander, head, global G10 FX Research and North America macro strategy at Standard Chartered Bank's NY Branch suggesting that the market may be "beginning to worry that they're serious about doing 25 (basis point cuts)." The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.32% to 100.76. The euro was down 0.27% at $1.1133 while against the Japanese yen , the dollar strengthened 1% to 143.61. In Treasuries, the yield on benchmark U.S. 10-year notes rose 3.6 basis points to 3.785%, from 3.749% late on Friday. The 2-year note yield, which typically moves in step with interest rate expectations, rose 7.4 basis points to 3.637%, from 3.563% late on Friday. And a closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes , seen as an indicator of economic expectations, was at a positive 14.6 basis points. In energy markets, U.S. crude settled down 1 cent at $68.17 a barrel, but tumbled 7% in September in its biggest monthly decline since October 2023, and slumped 16% in its biggest quarterly drop since the third quarter 2023. Brent edged down 21 cents to $71.77 per barrel. It posted a roughly 9% drop in September, its biggest decline since November 2022 and its third consecutive monthly loss, along with a near 17% quarterly drop, also its biggest in a year. Gold eased, taking a breather after a historic rally driven by U.S. monetary easing and heightened Middle East tensions, which puts it on course for its biggest quarterly gain since early 2020. Spot gold fell 1% to $2,631.39 an ounce. U.S. gold futures fell 0.54% to $2,629.90 an ounce. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-09-30/

2024-09-29 23:06

TAIPEI, Sept 30 (Reuters) - Taiwan issued a land warning on Monday ahead of the arrival of Typhoon Krathon, which has strengthened into the equivalent of a Category 4 hurricane and is expected to cross the densely populated west coast bringing torrential rain and strong wind. Taiwan regularly gets hit by typhoons but they generally land along the mountainous and sparsely populated east coast facing the Pacific. Krathon is forecast to hit the major port city of Kaohsiung late on Wednesday morning, then work its way across the centre of Taiwan heading northeast and cross out into the East China Sea, the Central Weather Administration (CWA) said. The typhoon has strengthened into the equivalent of a Category 4 hurricane, packing powerful winds of more than 210 kph (125 mph) near its centre, according to Tropical Storm Risk , opens new tab. "The impact is getting bigger and bigger," said Gene Huang, forecaster at the CWA, pointing to threats to Taiwan's southwest and adding it was "rare" for such a powerful typhoon to make a direct hit to the island's western plains. "It's a first in history for a typhoon with such movement and intensity," Huang said. Huang warned residents there to be prepared for extreme winds of more than 150 kph (93 mph). Taiwan authorities said more than 1,000 rubber boats and 15,000 soldiers were on standby across Taiwan, including on the eastern coast where up to 1.3 metres (four feet) of rain was expected in the coming days. "All military hospitals have set up emergency medical teams and they are ready to support anytime," said defence ministry spokesperson Sun Li-fang. Boats to Taiwan's outlying islands have already been cancelled and some domestic flights have been disrupted. The rail line connecting southern Taiwan to the east coast stopped running mid-afternoon Monday, though other services including the north-south high speed railway were operating as normal, the transport ministry said. It added that international flights were not yet impacted. In July, Typhoon Gaemi killed at least 11 people in Taiwan. Sign up here. https://www.reuters.com/business/environment/taiwan-issues-land-warning-ahead-typhoon-krathon-2024-09-29/

2024-09-29 23:05

LONDON, Sept 30 (Reuters) - Britain will become the first G7 country to end coal-fired power production on Monday with the closure of its last plant, Uniper’s (UN0k.DE) , opens new tab Ratcliffe-on-Soar in England’s Midlands. It will end over 140 years of coal power in Britain. In 2015 Britain announced plans to close coal plants within the next decade as part of wider measures to reach its climate targets. At that time almost 30% of the country’s electricity came from coal but this had fallen to just over 1% last year. “The UK has proven that it is possible to phase out coal power at unprecedented speed,” said Julia Skorupska, Head of the Powering Past Coal Alliance secretariat, a group of around 60 national governments seeking to end coal power. The drop in coal power has helped cut Britain's greenhouse gas emissions, which have more than halved since 1990. Britain, which has a target to reach net zero emissions by 2050, also plans to decarbonise the electricity sector by 2030, a move which will require a rapid ramp-up in renewable power such as wind and solar. “The era of coal might be ending, but a new age of good energy jobs for our country is just beginning," energy minister Michael Shanks said in an emailed statement. Emissions from energy make up around three quarters of total greenhouse gas emissions and scientists have said that the use of fossil fuels must be curbed to meet goals set under the Paris climate agreement. In April the G7 major industrialised countries agreed to scrap coal power in the first half of the next decade, but also gave some leeway to economies who are heavily coal-reliant, drawing criticism from green groups. “There is a lot of work to do to ensure that both the 2035 target is met and brought forward to 2030, particularly in Japan, the U.S., and Germany,” said Christine Shearer, Research Analyst, Global Energy Monitor . Coal power still makes up more than 25% of Germany's electricity and more than 30% of Japan’s power. Sign up here. https://www.reuters.com/sustainability/climate-energy/britain-become-first-g7-country-end-coal-power-last-plant-closes-2024-09-29/

2024-09-29 21:50

Sept 30 (Reuters) - A look at the day ahead in Asian markets. Investors in Asia go into the last trading day of the quarter still riding high on the double dose of stimulus administered earlier in the month by the U.S. Federal Reserve and now by China. In the latest move, the People's Bank of China on Sunday said it would tell banks to lower mortgage rates for existing home loans by Oct. 31. It is expected to cut existing mortgage rates by about 50 basis points on average. This follows the slew of monetary, fiscal and liquidity support measures announced last week - China's biggest stimulus package since the pandemic - that triggered the most explosive stock market rally in years. Japanese markets could be in for a rocky ride on Monday, however, as investors react to the news that former defence minister Shigeru Ishiba will be the country's new prime minister. Ishiba has been a vocal critic of the Bank of Japan's past aggressive monetary easing, but said on Sunday that policy must remain accommodative as a broader trend, to underpin a fragile economic recovery. The yen surged nearly 2% on Friday, and Nikkei futures are pointing to a sharp fall at the open on Monday. The upside for markets on Monday may also be capped by investors closing their books for the quarter, and ahead of China's Golden Week holiday that starts on Tuesday. Monday's calendar is loaded with major economic indicators, chief among them being China's official and unofficial purchasing managers index data. Also on deck are retail sales, industrial production and housing starts figures from Japan, GDP from Taiwan, and South Korean retail sales and industrial production. China's markets could get a reminder of cold economic reality, with the National Bureau of Statistics PMIs expected to show that factory activity contracted for the fifth consecutive month in September. Figures on Friday showed that industrial profits slumped 17.8% in August, the biggest decline this year. Citi's Chinese economic surprises index is hovering around its lowest level in over a year, in contrast to the U.S. surprises index, which is also in negative territory but still the highest in over a year. It will take time for Beijing's stimulus to filter through to hard activity data, so investors may have to continue putting up with some sobering numbers in the coming weeks and months. But the wave of optimism washing over markets is undeniable. Shanghai's blue chip equity index rose nearly 16% last week and the broader Shanghai composite jumped nearly 13%, both the biggest weekly gains since November 2008. Hong Kong's benchmark Hang Seng index delivered its biggest weekly rise since 1998, and fifth largest in the last half century. Mainland Chinese property stocks, meanwhile, leapt 16%. Here are key developments that could provide more direction to Asian markets on Monday: - China official and unofficial PMIs (September) - Taiwan GDP (Q2, final) - Japan retail sales, industrial production (August) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-pix-graphic-2024-09-29/

2024-09-29 20:56

Cleanup and recovery efforts under way from Florida to Virginia Damage estimated from $15 billion to over $100 billion Biden to visit affected areas this week FLAT ROCK, North Carolina, Sept 29 (Reuters) - The Southeastern U.S. began a huge cleanup and recovery effort on Sunday and the death toll climbed towards 100 after Hurricane Helene knocked out power for millions, destroyed roads and bridges and caused dramatic flooding from Florida to Virginia. The storm's winds, rain and storm surge killed at least 90 people in North Carolina, South Carolina, Georgia, Florida, Tennessee and Virginia, according to a Reuters tally of state and local officials. Officials feared more bodies would be discovered. With cellphone towers down across the region, hundreds of people had yet to make contact with loved ones and were listed as unaccounted for. Damage estimates ranged from $15 billion to more than $100 billion, insurers and forecasters said over the weekend, as water systems, communications and critical transportation routes were affected. Property damage and lost economic output will become clearer as officials assess the destruction. In North Carolina, nearly all the deaths were in Buncombe County, where 30 people died, Sheriff Quentin Miller told a video conference call with reporters. County Manager Avril Pinder said she was asking the state for emergency food and drinking water. Streets in the picturesque city of Asheville were submerged in floodwater. "This is a devastating catastrophe of historic proportions," Governor Roy Cooper told CNN. "People that I talk to in western North Carolina say they have never seen anything like this." Search and rescue teams from 19 states and the U.S. government have converged on the state, Cooper said, adding that some roads could take months to repair. In Flat Rock, North Carolina, there were widespread blackouts, and people waited hours in line for gas. "Grocery stores are closed, cellphone service is out," Chip Frank, 62, said as he entered his third hour waiting in line. "It all depends on these gas stations. You're not going to be able to go nowhere, and it's just a scary feeling." Roughly 2.7 million customers throughout the South were without power on Sunday, a U.S. Energy Department official said, down 40% from Friday after unprecedented storm surges, ferocious winds and perilous conditions extended hundreds of miles inland. South Carolina reported 25 dead, Georgia 17 and Florida 11, according to the governors of those states. CNN reported a total of 93 dead across the South, citing state and local officials. President Joe Biden plans to visit affected areas this week, once he can do so without disrupting emergency services, the White House said. "It's tragic," Biden told reporters on Sunday, pledging recovery assistance after declaring major disasters in Florida and North Carolina and emergencies for Florida, North Carolina Tennessee, South Carolina, Georgia, Virginia, and Alabama. "You saw the photographs. It's stunning." Vice President and Democratic presidential candidate Kamala Harris planned to cut short a campaign trip in Nevada on Monday to take part in briefings in Washington on the hurricane response and will visit the region when doing so won't impede the response, a White House official said. Republican presidential candidate Donald Trump will visit Valdosta, Georgia, on Monday to receive a briefing on storm damage and "facilitate the distribution of relief supplies," his campaign said. Helene slammed into Florida's Gulf Coast on Thursday night, triggering days of driving rain and destroying homes that had stood for decades. In Horseshoe Beach, on Florida's Gulf Coast about 70 miles (120 km) west of Gainesville, Charlene Huggins surveyed the debris of her blown-out house, pulling a jacket out of the rubble on Saturday. "Five generations lived in this house, from my grandmother, my father, myself, my daughter, son and my granddaughter," Huggins said, holding a chipped glass cake stand. "So there's a lot of memories here. It just breaks your heart." Not far away, James Ellenburg stood on the property where his own family has lived for four generations. "I took my first step right here in this yard." The roof of one home sat flat in the dirt, its walls blown away. In coastal Steinhatchee, a storm surge – a wall of seawater pushed ashore by winds – of eight to 10 feet (2.4 to 3 meters) moved mobile homes, the weather service said. Other areas saw a storm surge of 15 feet (4.5 meters). In the nearby tiny community of Spring Warrior Fish Camp, people were surveying the damage on Saturday and still waiting for emergency or first responder aid. "No one thinks of us back here," said David Hall, as he and his wife dug through seagrass and dead fish in the office of the hotel they owned. Many of the community's homes are built on stilts because of a local ordinance and survived heavy damage. Kristin Macqueen was helping friends clean up after their house was destroyed in nearby Keaton Beach. "It's complete devastation," she said. "Houses have just been ripped off their slabs." Sign up here. https://www.reuters.com/world/us/hurricane-helene-wreaks-havoc-us-southeast-death-toll-rises-2024-09-29/

2024-09-29 20:55

Union accuses USMX of wage subjugation, no talks planned before deadline Biden will not intervene, citing belief in collective bargaining Business Roundtable warns strike could cost economy billions daily Ports from Maine to Texas handle about half the nation's ocean shipping WASHINGTON, Sept 29 (Reuters) - A port strike on the U.S. East Coast and Gulf of Mexico will go ahead starting on Tuesday, the International Longshoremen’s Association union said on Sunday, signaling action that could cause delays and snarl supply chains. "United States Maritime Alliance ... refuses to address a half-century of wage subjugation," the union said in a statement. The United States Maritime Alliance, known as USMX, represents employers of the East and Gulf Coast longshore industry. USMX did not immediately comment. If union members walk off the job at ports stretching from Maine to Texas, it would be the first coast-wide ILA strike since 1977, affecting ports that handle about half the nation's ocean shipping. A source said no negotiations were taking place Sunday and none are currently planned before the midnight Monday deadline. The union said previously the strike would not impact military cargo shipments or cruise ship traffic. The White House did not immediately comment on the union's statement. Earlier on Sunday, President Joe Biden said he did not intend to intervene to prevent a walkout if dock workers failed to secure a new contract by an Oct. 1 deadline. "It's collective bargaining. I don't believe in Taft-Hartley," he told reporters. Presidents can intervene in labor disputes that threaten national security or safety by imposing an 80-day cooling-off period under the federal Taft-Hartley Act. Reuters first reported on Sept. 17 that Biden did not plan to invoke the Taft-Hartley provision, citing a White House official. A strike could stop the flow of everything from food to automobiles at major ports – in a dispute that could jeopardize jobs and stoke inflation weeks ahead of the U.S. presidential election. Business Roundtable, which represents major U.S. business leaders, said it was "deeply concerned about the potential strike at the East Coast and Gulf Coast ports." The group warned a labor stoppage could cost the U.S. economy billions of dollars daily "hurting American businesses, workers and consumers across the country. We urge both sides to come to an agreement before Monday night’s deadline." For months, the union has threatened to shut down the 36 ports it covers if employers like container ship operator Maersk (MAERSKb.CO) , opens new tab and its APM Terminals North America do not deliver significant wage increases and stop terminal automation projects. The dispute is worrying businesses that rely on ocean shipping to export their wares, or secure crucial imports. On Friday, Biden administration officials met with the United States Maritime Alliance (USMX) employer group to directly convey "that they need to be at the table and negotiating in good faith fairly and quickly" – a message it delivered earlier to the ILA. The USMX employer group has accused the ILA of refusing to negotiate. Sign up here. https://www.reuters.com/business/autos-transportation/us-east-coast-port-strike-set-start-tuesday-says-union-2024-09-29/