2024-09-04 07:03
MUMBAI, Sept 4 (Reuters) - India's central bank was selling dollars at the 83.97 level on Wednesday to keep the rupee from dropping to a lifetime low, three traders told Reuters. The rupee was at 83.9650 to the U.S. dollar, avoiding a dip past the lifetime low of 83.9725 hit in the first week of August. "Consistently seeing offers (on dollar/rupee) at 83.97 (on interbank order matching system) and from brokers," a currency trader at a bank said. "RBI yet again does not want to see 84." Sign up here. https://www.reuters.com/markets/currencies/india-central-bank-likely-intervening-prevent-rupee-slipping-record-low-traders-2024-09-04/
2024-09-04 07:01
Benchmark prices have fallen sharply in past week Hit by soft US, China data; possible Libya output return OPEC+ could delay planned output increase, sources say HOUSTON, Sept 4 (Reuters) - Crude futures fell by more than $1 a barrel on Wednesday in see-saw trading, with traders worried about demand in coming months as crude producers offered mixed signals about supply increases. Brent crude futures settled down $1.05, or 1.42%, to $72.70 a barrel. U.S. West Texas Intermediate crude futures settled down $1.14, or 1.62%, at $69.20. During the session, both benchmarks swung from $1 down to $1 up following news OPEC+ was discussing delaying a possible output increase because Libyan production is expected to rise. In a broader sell-off, Brent crude futures tumbled as much as 11%, or about $9, in a little over a week, hitting a low of $72.63 on Wednesday. Lackluster data from the U.S. and China reinforced expectations of a weaker global economy and oil demand, helping set off a broader decline in world markets. "It's definitely worries about a slowdown in manufacturing," said Phil Flynn, senior analyst at Price Futures Group. "That's the only negative we're seeing." Meanwhile, traders believed there could be an end in sight to a dispute halting Libyan oil exports, which would bring more crude supply back online. "This sell off moved the attention to what OPEC+’s response would be, which last week looked set to start the planned output hikes in October," wrote Alex Hodes, analyst at StoneX. "The group is now concerned about pricing and sources say that a delay to the hikes is now being discussed." Recent data releases fed concerns of weak demand from China, the world's biggest crude importer, and U.S. consumption taking a hit. On Saturday, Chinese data showed manufacturing activity sank to a six-month low in August, when growth in new home prices slowed. On Tuesday in the U.S., the Institute for Supply Management data showed manufacturing remained subdued. Weekly U.S. oil inventory data was delayed by Monday's Labor Day holiday. The report from the American Petroleum Institute is due at 4:30 p.m. EDT (2030 GMT) on Wednesday and data from the U.S. Energy Information Administration will be published at 11:00 a.m. EDT (1500 GMT) on Thursday. U.S. crude and gasoline stockpiles were expected to have fallen last week, a preliminary Reuters poll showed. While traders were pessimistic on demand fears, changes in supply could easily change sentiments, Flynn said. "We could flip on a dime," he said. "It could very easily turn positive. We could see a pretty decent crude draw later today." Sign up here. https://www.reuters.com/markets/commodities/oil-extends-losses-signs-end-libyan-dispute-demand-concerns-2024-09-04/
2024-09-04 06:45
Gold down for fourth straight session US JOLTS, factory orders data due on Wednesday Major risk event is U.S. payrolls data on Friday, analyst says Sept 4 (Reuters) - Gold prices extended declines to a two-week low on Wednesday as a sharp sell-off in equities forced a rush to cover margin calls, adding pressure on bullion ahead of keenly awaited non-farm payrolls data due later this week. Spot gold fell 0.2% to $2,488.11 per ounce as of 1118 GMT, having hit its lowest since Aug. 22. U.S. gold futures were also down 0.2% to $2,519.10. "Gold is under some light pressure this morning in the face of equities’ weakness– this is normal as there may be some selling in case of equity-related margin calls," said StoneX analyst Rhona O'Connell. "Other (precious metals) are down, partly in sympathy, but more likely in response to those dire numbers from the States yesterday." U.S. manufacturing contracted at a moderate pace in August amid some improvement in employment, but a further decline in new orders and rise in inventory suggested factory activity could remain subdued. Shares across the world fell on Wednesday, pummelled by a drop in tech stocks after a record sell-off for U.S. chipmaker Nvidia and as expectations of fading global growth hit riskier assets. "Gold remains under pressure despite the risk-off mood... the precious metal could be exposed to further volatility on Wednesday due to the incoming U.S. factory orders, JOLTS labour market data which may influence Fed cut expectations," said FXTM senior research analyst Lukman Otunuga. "The major risk event this week is Friday’s U.S. jobs data. Given how investors may use this as a guide to how quickly or slowly the Fed will cut rates from September onwards, this data could rock gold prices." Traders see a 39% chance of a 50-basis-point (bp) rate cut on Sept. 18 and a 61% chance of a 25-bp reduction, according to the CME Group's FedWatch Tool. Elsewhere, spot silver was down 0.1% to $28.01 per ounce. Platinum was up 0.3% to $905.85 and palladium fell 0.4% to $934.90. Sign up here. https://www.reuters.com/markets/commodities/gold-steady-us-payrolls-data-grabs-limelight-2024-09-04/
2024-09-04 06:38
SEOUL, Sept 4 (Reuters) - The leaders of South Korea and New Zealand condemned North Korea's nuclear weapons development and its military cooperation with Russia, Seoul's presidential office said on Wednesday. New Zealand Prime Minister Christopher Luxon and South Korea's President Yoon Suk Yeol also agreed to speed up discussions on elevating their relations to a comprehensive, strategic partnership at a meeting in Seoul, Yoon's office said in a joint statement. The two leaders expressed support for Ukraine's peace and condemned Russia's invasion, according to the statement, as well as stressing the importance of preserving peace and stability across the Taiwan Strait. It marks the first time in nine years that a New Zealand prime minister has visited South Korea, Yoon's office said. Yoon has been raising the alarm on North Korea's nuclear and missile program and its deepening military ties with Russia in meetings with world leaders. Sign up here. https://www.reuters.com/world/asia-pacific/south-korea-new-zealand-leaders-condemn-north-korea-nuclear-development-2024-09-04/
2024-09-04 06:25
BEIJING, Sept 4 (Reuters) - China, Tanzania and Zambia signed an initial agreement to rehabilitate a decades-old railway aimed at improving the rail-sea transportation in resource-rich East Africa, Chinese state media said on Wednesday. President Xi Jinping witnessed the signing of the memorandum of understanding on refurbishing the 1,860 kms (1,156 mile) Tanzania-Zambia Railway Authority (TAZARA) railway with the Tanzanian and Zambian presidents, who were in Beijing attending the Forum on China-Africa Cooperation, according to the state-run Xinhua news agency. The single-track TAZARA railway was built between 1970 and 1975 through an interest-free loan from China, offering a cargo transport route from Zambia's copper and cobalt mines to the sea on Tanzania's coast that bypasses South Africa and the former state of Rhodesia. Commercial operations of the line, derided by some Western governments at the time as the "bamboo railway", began in 1976. The multi-year project had involved the construction of two dozen tunnels and hundreds of bridges by tens of thousands of Chinese and African workers. "China is willing to take this summit as an opportunity to make new progress in the revitalisation of the Tanzania-Zambia railway, cooperate to improve the rail-sea intermodal transport network in East Africa, and build Tanzania into a demonstration zone for deepening high-quality China-Africa Belt and Road cooperation," said Xi, according to state media. Earlier this year, the World Bank approved $270 million in financing to help improve connectivity between neighbours Tanzania and Zambia and boost regional trade. In February, China proposed to spend $1 billion to rehabilitate the rail line through a public-private partnership model. Sign up here. https://www.reuters.com/world/china-tanzania-zambia-sign-initial-agreement-key-railway-project-2024-09-04/
2024-09-04 06:11
Permits ruled invalid on insufficient climate impact assessment Environmental groups argue for injunctions Government cites economic impact OSLO, Sept 4 (Reuters) - Norway's government will ask an appeals court on Wednesday to lift injunctions against developing three oil and gas fields, part of a wider effort by Oslo to overturn an earlier verdict invalidating their permits on environmental grounds. A lower court ruled in January that Norway's energy ministry failed to fully assess the climate impact from the future use of the fields' oil and gas, so-called scope three emissions, in a lawsuit brought by Greenpeace and its partner Nature and Youth. At that time, the court also ordered temporary injunctions against the development of the three fields known as Yggdrasil, Tyrving and Breidablikk. But the appeals court in March put the injunctions on hold, giving the government and field operators Aker BP (AKRBP.OL) , opens new tab and Equinor (EQNR.OL) , opens new tab leeway to continue working on the fields. A hearing starting on Wednesday will determine whether the injunctions should be permanently lifted or reinstated until a final ruling is made on the legality of the field development permits at the core of the case. Norway, Europe's largest gas supplier and a major producer of oil, fears that court-imposed restrictions on the development of new fields could hamper its most profitable industry and cost the country billions of dollars in lost revenue. The government says that while it seeks to pump hydrocarbons for decades to come it is complying with the Paris climate accords seeking to limit global warming and has set a net-zero emission target for 2050. Equinor's Breidablikk field started production in October 2023, while Aker BP's Tyrving began production this week, drawing criticism from the plaintiffs. "This only proves why there is a need to have injunctions on the fields' development," Frode Pleym, head of Greenpeace Norway, told Reuters. Yggdrasil, which is also operated by Aker BP, is set to start production in 2027. ($1 = 10.5899 Norwegian crowns) Sign up here. https://www.reuters.com/business/energy/norway-seeks-end-climate-injunction-against-three-oilfields-2024-09-04/
