2024-09-15 21:51

Sept 16 (Reuters) - A look at the day ahead in Asian markets. Asia kicks off the trading week on Monday with investors likely to give a big thumbs down to yet another batch of uniformly disappointing economic indicators from China, while at the same time cheering one of Wall Street's best weeks of the year. Fueled by growing hopes that the Federal Reserve will kick off its interest rate-cutting cycle with a 50-basis-point cut rather than a quarter-point move later this week, U.S. stocks rose solidly on Friday, which could provide a good springboard for Asia on Monday. The S&P 500 got to within 1% of its July 15 all-time high and the Nasdaq ended the week up 6%, its best week since October. Volatility across asset classes fell - the 'MOVE' index of implied Treasury market volatility is at its lowest since late July. That's the backdrop to the start of a hugely important week for markets around the world with the highlight being the Fed's rate decision and revised economic forecasts on Wednesday, but maybe even more so for Asian markets. Japan and Hong Kong release inflation data, and there are monetary policy decisions from Indonesia, Taiwan, China and the Bank of Japan later in the week. The local focus on Monday will be China and yet another wave of worrying economic data. There are those in the more speculative corners of the investment community with a higher tolerance for risk, like hedge funds, who are bound to be looking at China right now as an attractive bet. Stocks have fallen 15% in a couple of months and are flirting with the lowest levels in nearly six years, deflation hangs heavily over the economy, the growth outlook is darkening, and authorities appear unable or unwilling to unleash the stimulus required to turn all that around. Capital inflows are drying up and outflows are picking up, forcing the central bank to act more vigorously to protect the exchange rate. Indeed, the yuan has strengthened notably in recent weeks. But the data released on Saturday gave no indication that a broader and more lasting turnaround is in sight. If anything, they suggest such a scenario is as far away as ever. Official figures on Saturday showed that new home prices fell at their fastest pace in nine years, industrial output growth slowed to a five-month low, foreign direct investment is down 31.5% and retail sales weakened further. And on Friday, meanwhile, the Biden administration locked in steep tariff hikes on Chinese imports, including a 100% duty on electric vehicles. Beijing said it would take "necessary measures to resolutely defend the interests of Chinese companies." Here are key developments that could provide more direction to Asian markets on Monday: - Germany wholesale price inflation (August) - New York Fed manufacturing index (September) - U.S. 3-month, 6-month T-bill auctions Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-09-15/

2024-09-15 19:06

HOUSTON, Sept 15 (Reuters) - Nearly a fifth of crude oil production and 28% of natural gas output in U.S. Gulf of Mexico federal waters remains offline in the aftermath of Hurricane Francine, the U.S. offshore energy regulator said on Sunday. Francine marched through prime offshore oil and natural gas producing areas and hit Louisiana as a Category 2 hurricane on Wednesday. The storm toppled trees, flooded coastal areas and cut power in four southern states. Energy producers on Sunday had 338,690 barrels per day of oil production and nearly 515 million cubic feet of natural gas offline in Gulf waters, the Bureau of Safety and Environmental Enforcement estimated from producer reports. Cumulative offshore production losses due to Francine total 2.16 million barrels of crude oil and 4.635 billion cubic feet of natural gas, according to a Reuters tally of BSEE daily estimates. There were 37 oil and gas platforms still evacuated on Sunday, about 10% of the Gulf of Mexico total, down from 171 evacuated offshore platforms at peak last week, the offshore regulator said citing reports from producers. Sign up here. https://www.reuters.com/markets/commodities/fifth-us-gulf-mexico-crude-oil-28-gas-offline-regulator-says-2024-09-15/

2024-09-15 17:23

Sept 15 (Reuters) - Italian energy engineering group Saipem (SPMI.MI) , opens new tab said on Sunday it had won an offshore contract worth $4 billion from QatarEnergy, one of the world's top suppliers of liquefied natural gas (LNG). The contract will help boost production at QatarEnergy's North Field offshore natural gas field, which lies off the northeastern coast of Qatar, Saipem added in a statement. Earlier this year, Qatar announced an expansion project to boost the North Field's LNG output to 142 million tons per annum (mtpa) from the current 77 mtpa by 2030. The Italian group said this month it had won two offshore contracts in Saudi Arabia worth about $1 billion in total, under an existing long-term agreement with oil giant Saudi Aramco (2222.SE) , opens new tab. Sign up here. https://www.reuters.com/business/energy/saipem-wins-4-billion-contract-qatarenergy-2024-09-15/

2024-09-15 16:29

LIMA, Sept 15 (Reuters) - Peru's economy expanded for the fourth month in a row in July fueled by all sectors except agriculture, official data showed on Sunday, continuing the country's recovery following a recession last year. The 4.47% year-on-year growth in the month, according to the INEI statistics agency, outdid an estimate from the chief economist of Peru's central bank last week, who expected expansion of around 4%. He cited larger investments as expected to help the recovery, in line with a government target of 3.2% growth for the year in the country that is the world's third-largest copper producer. The July growth marks a significant jump from the month before, when Peru logged an economic expansion of 0.21%. Manufacturing in July rose 10.91% while the mining and hydrocarbons sector expanded 3.10%, driven by metallic mining activity including growth in molybdenum concentrate and silver. However, production of zinc, copper and iron decreased. The agriculture sector shrank 3.93%, due to smaller planted areas, weather issues and some early harvesting, which led to lower volumes of olives, dry beans, paprika, potatoes, cocoa and hard yellow corn. The Andean country has for years been one of South America's top economic performers. However, last year, the economy shrank 0.6%, affected by adverse weather, lower private investment and ripple effects from anti-government protests that hit mining. Sign up here. https://www.reuters.com/markets/peru-economy-expands-447-july-year-on-year-2024-09-15/

2024-09-15 14:42

Sept 15 (Reuters) - U.S. aluminium maker Alcoa (AA.N) , opens new tab said on Sunday that it would sell a 25.1% stake in its Ma'aden joint venture to Saudi Arabian mining company Ma'aden for $1.1 billion. The transaction includes approximately 86 million shares of Ma’aden and $150 million in cash, Alcoa said in a statement, adding that it expects to close the deal in the first half of 2025. "The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility for Alcoa," Alcoa CEO William Oplinger said. Alcoa said it would hold its Ma'aden shares for a minimum of three years. After completing the transaction, Alcoa would own approximately 2% of Ma’aden’s current shares outstanding. The joint venture was created in 2009, as a fully integrated mining complex in Saudi Arabia, Alcoa said, adding that Ma’aden owns the remaining 74.9% of the project. "We look forward to future opportunities to collaborate as we continue to build the mining sector into the third pillar of the Saudi economy,” said Bob Wilt, Ma’aden’s CEO. In July, Alcoa posted quarterly revenue of $2.9 billion, beating expectations of $2.8 billion. Sign up here. https://www.reuters.com/markets/deals/alcoa-sell-its-251-stake-maaden-joint-venture-11-billion-2024-09-15/

2024-09-15 14:32

MOSCOW, Sept 15 (Reuters) - Strong winds fanned fires sparked by downed power lines and carelessness in multiple settlements across Russia's southern Rostov region, Governor Vasily Golubev reported on Sunday. Since the start of the day, authorities recorded more than 50 fires, with 30 remaining active. Several blazes spread to residential areas, causing limited evacuations. More than 2,000 firefighters and nearly 300 pieces of equipment were engaged in efforts to bring the blazes under control. The Rostov region, a key agricultural area, contributed more than 11% of Russia's total grain harvest last year. However, the region faced early spring frosts and subsequent drought in 2024, leading to an anticipated 30% decline in this year's harvest compared to 2023. Sign up here. https://www.reuters.com/world/europe/strong-winds-fan-dozens-fires-russias-rostov-region-governor-says-2024-09-15/