2024-09-05 06:27

MUMBAI, Sept 5 (Reuters) - The Indian rupee held near a lifetime low on Thursday despite intervention by the country's central bank, with traders and analysts expecting persistent pressure on the currency from a shrinking balance of payments surplus. The rupee was quoted at 83.9750 to the U.S. dollar, holding near its lifetime low and averting a dip past 84 largely on the back of intervention by the Reserve Bank of India. The RBI has been regularly intervening in the forex markets on both sides, leading to rupee holding a narrow range for extended periods. The rupee's 3-month implied volatility is among the lowest among major Asian currencies. The rupee bucked a rally in Asian currencies last month, which was spurred by increasing certainty that the Federal Reserve is likely to begin its rate cut cycle. The depreciation pressures the rupee has faced in recent months is due to India's shrinking balance of payments (BoP), Gaura Sen Gupta, economist at IDFC First Bank, said. The BoP position can be gauged by the RBI's net intervention in the forex markets, she said. The central bank has net sold more than $2 billion from April to Aug. 25 this year, compared to a net purchase of $19 billion from April to August last year, according to data from the central bank and calculations made by IDFC. India had a BoP surplus of $63.7 billion in the previous fiscal year, which IDFC forecasts will decline to $50 billion in the current fiscal year. "From recent price action (on dollar/rupee), it's evident that the dynamics on the demand and supply have changed in favour of the former," a treasury official at a bank said. "This is why rupee has been struggling quite a bit despite the weaker dollar." Sign up here. https://www.reuters.com/markets/currencies/indias-shrinking-balance-payments-surplus-keeps-rupee-near-record-lows-2024-09-05/

2024-09-05 06:25

Sept 5 (Reuters) - Oil and gas producer EnQuest (ENQ.L) , opens new tab on Thursday reported a profit for the first six months of 2024, helped by higher oil prices, from a year-ago loss when the UK's windfall tax for energy companies wiped out most of its earnings. The company posted a profit after taxation of $30.3 million, for the six months ended June 30, compared with a loss of $21.2 million last year It reported realised oil prices of $83.40 per barrel for the period, compared to $75.80 last year. Following a spike in energy prices in 2022, Britain imposed an energy profit levy on oil and gas producers which raised the tax rate to 75%, wiping out most of their profits. The company said it was disappointed by the implementation of the ongoing EPL, after the Labour government last month announced a further 3 percentage point hike to the levy, bringing the headline rate to 78%, from Nov. 1. "We are disappointed with the ongoing application of the Energy Profits Levy despite operating in an environment where no windfall conditions exist," said EnQuest CEO Amjad Bseisu in a statement. "The UK energy industry needs a progressive tax regime that recognises the maturity of the North Sea and re-establishes the UK as a globally competitive investment basin," Bseisu added. The London-listed company's gross profit for the first-half of 2024 stood at $233.7 million, compared with last year's $287.1 million. Sign up here. https://www.reuters.com/business/energy/britains-enquest-posts-first-half-profit-2024-09-05/

2024-09-05 06:17

Bullish bets on most Asian FX intensify Bearish bets on Indian rupee maintained Long bets solidify on S.Korean won, Singapore dollar Sept 5 (Reuters) - Analysts have raised bullish bets on most Asian currencies after mixed data heightened concerns about economic growth in the world's largest economy, increasing the odds of outsized U.S. rate cuts and tarnishing the allure of the almighty dollar. Long bets on the South Korean won and the Singapore dollar , which is the best performer in the region so far this year, increased to their highest since Jan. 26, 2023. Bearish bets on the Indian rupee stayed intact, a fortnightly poll of 12 analysts showed on Thursday. Singapore is among the few countries in the world with a triple-A sovereign credit rating , opens new tab that is reflective of exceptionally strong fiscal and external balance sheets, factors that firm its position as a safe harbour for investors. Meanwhile, the Indian rupee's current low value against the greenback is largely due to the Reserve Bank of India's (RBI) efforts to control the currency's exchange rate, mainly by buying foreign currency to build up reserves over the past ten years, analysts at ANZ wrote. "The outcome (of RBI's intervention) is rising FX reserves, unusually low exchange rate volatility and an active use of the forward book to synchronise FX intervention with domestic liquidity conditions," ANZ analysts said. The U.S. dollar's impressive 5% gain against key currencies in the first half of the year has been largely erased as market expectations shifted to more aggressive interest rate cuts. Data showed that U.S. job openings fell to a 3-1/2-year low in July, indicating a continued easing of labour market tightness, while statements from San Francisco Fed President Mary Daly further reaffirmed the need for rate cuts. Traders see a quarter-point reduction at the Fed's Sept. 17-18 meeting as the slightly more likely move, but give a 50-basis-point cut about a 49% chance, up from 41% immediately before the data, rate futures contracts show. Elsewhere, bullish bets on the Chinese yuan rose to their highest since Feb. 9, 2023, and long bets on the Thai baht rose to their highest since Jan. 26, 2023. The significant yield advantage of the rupee over the yuan, combined with their contrasting prospects and stable exchange rates, has made borrowing in yuan to invest in rupee-denominated assets one of the most profitable carry trade strategies in Asia. In Thailand, easing political tensions and favourable economic growth have built the case for increased foreign inflows. Analysts maintained their bullish stance on the Indonesian rupiah , the Philippine peso , and the Malaysian ringgit . The Asian currency positioning poll is focused on what analysts and fund managers believe are the current market positions in nine Asian emerging market currencies: the Chinese yuan, South Korean won, Singapore dollar, Indonesian rupiah, Taiwan dollar, Indian rupee, Philippine peso, Malaysian ringgit and the Thai baht. The poll uses estimates of net long or short positions on a scale of minus 3 to plus 3. A score of plus 3 indicates the market is significantly long U.S. dollars. The figures include positions held through non-deliverable forwards (NDFs). The survey findings are provided below (positions in U.S. dollar versus each currency): Sign up here. https://www.reuters.com/markets/currencies/reuters-poll-bullish-bets-most-asian-currencies-rise-fed-rate-cut-bets-2024-09-05/

2024-09-05 06:15

Wall Street closes lower Dollar index dips, yen gains Treasury yields fall; oil sell-off pauses NEW YORK/LONDON, Sept 5 (Reuters) - MSCI's global equities index edged down on Thursday as investors digested mixed economic data while they anxiously waited for Friday's crucial U.S. jobs report and oil prices held near 14-month lows as demand worries offset draws on inventories. U.S. Treasury yields fell and two-year yields reached a 15-month low after ADP's private sector August jobs data showed fewer new jobs than anticipated. Thursday's data showed U.S. private employers hired the fewest workers in 3-1/2 years in August while the July number was revised lower, potentially hinting at a sharp labor market slowdown. The weak data did little to calm investor jitters as they waited for Friday’s U.S. non-farm payroll report for August, which is expected to clarify how fast the U.S. Federal Reserve will cut interest rates at its September meeting. Economists are expecting 160,000 new jobs for August up from 114,000 in July. While bets have increased to 41% from 34% a week ago that the Fed might kick-off its long-awaited easing cycle with a half percentage point move this month, traders still see a roughly 59% probability that the cut will just be a quarter of a percentage point according to CME Group's FedWatch tool , opens new tab. On Tuesday, Wall Street indexes had suffered their biggest daily losses in almost a month as investor anxiety about the U.S. economy intensified. Tuesday's decline "did some damage to the psyche of the majority of the bulls and kept people a little more nervous yesterday and today," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. "Today's data was similarly softer making it more likely we're going to have a meaningful move in the market on the jobs report tomorrow morning," said James, noting that "increased anxiety levels will bring about more trimming of positions than adding to positions." Still, Thursday's data also showed steady U.S. services sector activity in August with the Institute for Supply Management's non-manufacturing purchasing managers index at 51.5 last month compared to 51.4 in July. But while the services data appeared to encourage traders earlier in the U.S. trading session, stock indexes lost steam as the day wore on and investors braced for Friday's data. On Wall Street, the Dow Jones Industrial Average (.DJI) , opens new tab fell 219.22 points, or 0.54%, to 40,755.75, the S&P 500 (.SPX) , opens new tab lost 16.66 points, or 0.30%, to 5,503.41 and the Nasdaq Composite (.IXIC) , opens new tab gained 43.37 points, or 0.25%, to 17,127.66. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 1.79 points, or 0.22%, to 813.26, showing its fourth straight day of declines. Earlier in the day, Europe's STOXX 600 (.STOXX) , opens new tab index had closed down 0.54%. In currencies, the dollar eased in a choppy session as investors prepared themselves for Friday's U.S. payrolls report. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.17% to 101.09. The euro was up 0.22% at $1.1106, while against the Japanese yen , the dollar weakened 0.2% to 143.44. In Treasuries, the yield on benchmark U.S. 10-year notes fell 3.9 basis points to 3.729%, from 3.768% late on Wednesday, while the 30-year bond yield fell 4.7 basis points to 4.0207%. The 2-year note yield, which typically moves in step with interest rate expectations, fell 2.2 basis points to 3.7476%, from 3.77% late on Wednesday. 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 negative 2.1 basis points. In energy markets, oil ended the session barely changed as worries about demand in the U.S. and China and a likely rise in supplies out of Libya offset a big, bullish withdrawal from U.S. inventories and a delay to output increases by OPEC+ producers. U.S. crude settled down 0.07% or 5 cents at $69.15 a barrel for its lowest close since December for the second straight day. Brent crude closed at $72.69 per barrel, down 1 cent on the day for its lowest close since June 2023 for a third day in a row. Gold prices gained as the U.S. dollar and Treasury yields fell as signs the labor market was losing steam led investors to consider a super-sized rate cut from the Fed. Spot gold added 0.85% to $2,515.31 an ounce. U.S. gold futures gained 0.57% to $2,507.60 an ounce. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1pix-2024-09-05/

2024-09-05 06:05

FRANKFURT, Sept 5 (Reuters) - Siemens Energy (ENR1n.DE) , opens new tab said it has resumed sales of its 4.X wind turbine, which has been at the heart of its biggest corporate crisis, in a sign that the German energy group is fully returning to the onshore market. Responding to a Reuters query, a spokesperson for Siemens Energy said sales of the troubled turbines have resumed but would be limited to selected markets, without giving more details. People familiar with the matter said Siemens Energy is accepting non-binding and binding offers for the platform, adding that initial sales would be mainly in Southern Europe. Sales of the turbine model were expected to resume by the end of September, Siemens Energy has said previously. The 4.X, along with the more recent 5.X model, were at the centre of a quality crisis last year which caused the group's stock to plunge and forced it to set aside 1.6 billion euros ($1.8 billion) to fix the problems. As a result, sales of the models were halted. Siemens Energy's wind business Siemens Gamesa had completed a root cause analysis of the quality issues, the sources said, adding that selected customers had already been informed of the sales resumption. Sales of the 5.X turbine model are expected to resume in 2025, Siemens Energy said, confirming an earlier timeline. ($1 = 0.9025 euros) Sign up here. https://www.reuters.com/business/energy/siemens-energy-resumes-sales-its-troubled-4x-onshore-wind-turbine-2024-09-05/

2024-09-05 05:35

KUALA LUMPUR, Sept 5 (Reuters) - Malaysia is targeting net zero emissions in its aviation sector by 2050 through the launch of a decarbonisation plan, its transport ministry said on Thursday. The blueprint includes plans to reduce carbon emissions by up to 18% in aircraft technology, and increasing the use of sustainable aviation fuel, including biofuels and other alternatives, which aims to reduce emissions by 46%, the transport ministry said in a statement. Malaysia will also pursue an additional 30% reduction in carbon emissions by adopting carbon offset schemes and purchasing carbon credits, the ministry said. The targets were, however, dependent on local sustainable aviation fuel development as well as the implementation of carbon offset projects that meet international guidelines, it said. Malaysia's aviation regulator will also develop an action plan to support the implementation of the decarbonisation blueprint, the ministry added. Sign up here. https://www.reuters.com/sustainability/climate-energy/malaysia-launches-aviation-decarbonisation-plan-achieve-net-zero-emissions-by-2024-09-05/