2024-08-29 06:18

BEIJING, Aug 29 (Reuters) - China will keep phasing out fossil fuels and reforming its electricity system, the energy regulator said on Thursday, issuing a white paper long on listing accomplishments but short on new plans for China's energy transition. National Energy Administration head Zhang Jianhua said China would continue to reform its electricity system, expand the spot market, promote green electricity trading and replace fossil fuels with renewable energy. He also called for market-oriented reforms. Speaking at a press conference held by the State Council, China's cabinet, Zhang said China invested $676 billion in its energy transition last year, citing a figure from research organisation BloombergNEF, which estimated China's energy transition investment made up 38% of the global total. The world's second-biggest economy has emerged as a global leader in the transition to renewable energy, though its power system still relies significantly on coal. Asked whether China's carbon emissions could peak before its 2030 target, as many experts say it is on track to do, agency planning department deputy director Song Wen said, "The dual carbon target will not be changed and the major targets we have committed to will not be moved." China had targeted installing 1,200 gigawatts of wind and solar power by 2030, but soaring renewable installations helped it meet that goal in July, six years early. Asked whether China could set an even more ambitious renewables goal for 2030, new-energy department director Li Changjun said only that China would put forward new goals and measures based on its national conditions. Analysts say China is lagging behind on some other goals, including one to reduce its carbon intensity - CO2 emissions per unit of economic output - by 18% over the five years to 2030. It would need to cut absolute emissions by 7% annually this year and in 2025 to meet it, according to an analysis by the non-profit organisation Carbon Brief. The white paper laid out a raft of previously announced measures, from advancing energy storage technology to promoting energy conservation. A chapter dedicated to promoting a "global community of shared future" said China is advancing green energy cooperation under its massive Belt and Road Initiative infrastructure programme. It highlighted Pakistan's Karot hydropower station, part of the China-Pakistan Economic Corridor, that has been threatened by separatist militant attacks in recent days. Sign up here. https://www.reuters.com/business/energy/china-continue-with-low-carbon-reforms-energy-regulator-says-2024-08-29/

2024-08-29 05:56

Dow closes at record high after Nvidia disappointment Tech stocks prod STOXX 600 towards record highs US dollar gains after GDP data backs smaller Fed cut Oil gains as Libyan supply cuts counter modest US stock draw Gold gains as investors zero in on Fed cuts, inflation data NEW YORK, Aug 29 (Reuters) - Global shares edged higher on Thursday, shrugging off investor disappointment at artificial intelligence powerhouse Nvidia's (NVDA.O) , opens new tab results, while oil prices rebounded from two sessions of losses helped by Libyan supply disruptions. The Dow reached a fresh record high close, while the S&P 500 finished just below its July record close and the Nasdaq dropped. The Dow Jones Industrial Average (.DJI) , opens new tab rose 0.59% to 41,335.05, the S&P 500 (.SPX) , opens new tab was flat at 5,591.96 and the Nasdaq Composite (.IXIC) , opens new tab lost 0.23% to 17,516.43. European stocks (.STOXX) , opens new tab rose 0.76% after hitting a record high powered by technology shares. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 0.04% to 827.62. Nvidia beat analyst estimates on Wednesday with second quarter revenue of $30 billion and third quarter revenue forecast at $32.5 billion. But the results failed to meet lofty investor expectations that have underpinned a massive rally in Nvidia shares and catapulted the company into one of the main drivers of the benchmark S&P 500. The stock closed down 6.4%. U.S. Commerce Department data showed that the economy grew at a 3.0% annualized rate last quarter, indicating that the Federal Reserve would have room to begin cutting rates in September. "Nvidia is just a representation of what happens when the market gets ahead of itself in expectation," said Matthew Orton, chief markets strategist at Raymond James in St. Petersburg, Florida. "When I actually look at the numbers themselves, it was a clean beat and raise pretty much across the board. I think there's a clear signal that demand for artificial intelligence remains strong." The yield on benchmark U.S. 10-year notes rose 2.4 basis points to 3.865%. Markets are fully pricing in a rate cut of at least 25 basis points (bps) during the Fed's September meeting, although expectations for a cut of 50 bps fell to 34.5% after the data, according to CME's FedWatch Tool , opens new tab. Investors are also eyeing the personal consumption expenditure price index - which is the Fed's preferred inflation measure and is due on Friday. "The economy is doing a little bit better than expected. If you break down the number you see once again, it's the intrepid consumer that is continuing to consume, which is very positive for the economy," said Mark Malek, chief investment officer at SiebertNXT in New York. The U.S. dollar rose after GDP data. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, gained 0.36% at 101.37, with the euro down 0.39% at $1.1077. Gold climbed again and was just shy of notching another record high. Spot gold added 0.79% to $2,522.08 an ounce. U.S. gold futures settled 0.9% higher at $2,560.3. Oil prices gained as concerns over Libyan supplies helped offset a smaller than expected draw in U.S. crude inventories, which tempered demand expectations. Brent crude futures settled up 1.64% at $79.94 a barrel, while U.S. crude rose 1.87% at $75.91. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-08-29/

2024-08-29 05:44

MUMBAI, Aug 29 (Reuters) - The Indian rupee edged up on Thursday, supported by stronger Asian currencies and anticipated MSCI-related inflows. The rupee traded at 83.9050 against the U.S. dollar at 10:52 a.m. IST, improving from 83.9525 in the previous session. Asian currencies rose between 0.1% and 0.4%, while the dollar index slipped to 100.94. India's increased weightage in MSCI's emerging market index, effective Friday, is expected to attract up to $3 billion in inflows, according to Nuvama Alternative and Quantitative Research. While it was only a minor up move, the rupee "will take it, considering the extent of difficulty it has been facing", a currency trader at a bank said, adding that equity inflows were likely to provide only temporary relief to the rupee and that the currency will remain in a narrow range for now. The rupee's annualised realized volatility, based on changes in daily prices, is at less than 2%. The Reserve Bank of India has for a long time now keeping the currency on a tight leash. The rupee has "no real story to write about" and has again settled into a range, Srinivas Puni, managing directors at fx advisory firm QuantArt Market Solutions, said. Data points on the U.S. labour market is expected to be key in the coming days. "Given the focus of the Fed is now on the labour market, next Friday's U.S. jobs data is the important event for the dollar and to some extent rupee. Until then, one can expect a meandering rupee in its range," Puni said. Fed Chair Jerome Powell last Friday had said that any further cooling in the U.S. labour market would be unwelcome. In veiw of this, a significantly weak jobs report may prompt the Fed to cut rates by 50 basis points next month, according to analysts. Sign up here. https://www.reuters.com/markets/currencies/renewed-rally-asia-fx-potential-inflows-bring-relief-rupee-2024-08-29/

2024-08-29 05:08

U.S. GDP rises more than expected in Q2 U.S. jobless claims fall in latest week Odds of 50-bp Fed rate cut in September down marginally U.S. dollar on track for weakest month since November 2023 Euro falls to 10-day low after euro zone inflation data NEW YORK, Aug 29 (Reuters) - The U.S. dollar rose for a second straight session on Thursday after data showed the world's largest economy grew a little faster than expected in the second quarter, modestly reducing expectations for a larger 50 basis-point (bp) rate cut next month by the Federal Reserve. The report also added to growing expectations that the United States could avoid recession altogether, or go through just a mild one, analysts said. Following the U.S. data, the dollar rose to a one-week high against the yen to 145.55 and was last up 0.1% at 144.77 yen. The dollar/yen pair is the most sensitive to economic expectations, typically moving in tandem with U.S. Treasury two-year yields. Against the euro, the dollar gained, with the single European currency falling 0.4% to $1.1077 . On the week, the euro has so far fallen 1.04%, the biggest weekly decline since early April. Thursday's data showed gross domestic product (GDP) grew at a 3.0% annualised rate in the second quarter, according to the Bureau of Economic Analysis' second estimate. That was an upward revision from the 2.8% rate reported last month, and higher than the 1.4% rise seen in the first quarter. Economists polled by Reuters had forecast GDP would be unrevised at 2.8%. In a separate report, jobless claims fell by 2,000 to a seasonally adjusted 231,000 for the week ended Aug. 24. Economists polled by Reuters had forecast 232,000 claims for the week. The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased by 13,000 to a seasonally adjusted 1.868 million, near the levels seen in late 2021, suggesting persistent unemployment. "The data so far looks consistent with a 25 basis-point cut, not 50, which has been our view," said Vassili Serebriakov, FX strategist, at UBS in New York. U.S. rate futures priced in on Thursday a 35% chance of a 50 bp easing next month, slightly down from Wednesday's 37% probability, LSEG calculations showed. Markets also factored in about 102 bps of cuts by the end of 2024. The dollar index advanced 0.3% to 101.35 following the GDP data and jobless claims report. On the week, it has gained 0.6%, on track for its largest weekly rise since early April. MONTH-END FLOWS "The dollar has been better bid...due to month-end flows. We'll likely see a continuation of that," said Brad Bechtel, global head of FX, at Jefferies in New York. "The dollar index has been oversold when it was down below 101. I would expect we would migrate back to the 103-104 area. But the labor market report will be critical for that." As the month-end approaches, investors tend to square up positions, such that when an asset has been sold off for the month like the dollar, they would normally buy it back to balance their books or portfolios. In August, the dollar has lost 2.7% of its value, on pace for its largest monthly fall since November 2023. "We've had a sense that the dollar's selloff has been overextended...and the reasons are understandable given that the Fed is getting close to cuts," said UBS' Serebriakov. Investors now await Friday's release of the U.S. core personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, which could provide more clues on the size of the rate cut in September, including the pace of the incoming easing cycle. In the euro zone, the euro fell to a 10-day low of $1.1059, after hitting a 13-month high on Friday of $1.1201. The euro was undermined overall by inflation data from Germany and Spain, which raised bets on the European Central Bank's rate easing outlook. Data showed, inflation fell in six important German states in August, suggesting national inflation could decline noticeably this month. It dropped to the slowest pace in a year in Spain. Money markets priced in 67 bps of ECB cuts in 2024 , from around 63 bps before the data. Sign up here. https://www.reuters.com/markets/currencies/dollar-holds-gains-ahead-us-inflation-test-2024-08-29/

2024-08-29 04:33

A look at the day ahead in European and global markets from Stella Qiu It is a sea of red in Asia as AI darling Nvidia failed to meet expectations of investors who were not satisfied with its profits, revenue and outlook simply beating the Street. Nvidia shares have rallied more than 150% this year thanks to insatiable demand for generative artificial intelligence (AI), so the 7% drop in its shares after-hours could turn out to be just another dip to buy into the world's second-most valuable company. However, with valuations sky high, it is probably time for some caution. Taiwan-listed shares of chipmaker TSMC (2330.TW) , opens new tab slid 2%, Nasdaq futures dropped 0.7%, and Europe is set for a lower open, with EUROSTOXX 50 futures off 0.2%. Next up, Germany and Spain will publish their preliminary inflation readings for August later in the day. And a few European Central Bank officials will be taking part in some panel discussions. Headline inflation is expected to slow to 2.3% for Germany and 2.5% for Spain. Any downward surprises there will feed into the eurozone inflation reading due on Friday and add to the case of consecutive policy easings from the ECB for the rest of the year. Swaps imply a cut in September is a done deal, but they are less sure about the chance of a move in October and December, pricing in just about 60 basis points of easing by the year end. The often volatile U.S. jobless claims report, due later in the day, has also gained prominence after Federal Reserve Chair Jerome Powell declared policymakers do not wish to see further weakening in the labour market. Elsewhere, currency markets were mostly steady in the Asia session. The kiwi dollar rose 0.6% to a fresh 2024 high of $0.6281 after a local survey showed a huge turnaround in business activity fuelled by a rate cut from the Reserve Bank of New Zealand. U.S. Treasury yields were also quiet, although the inverted curve between two- and 10-years came within a whisker of turning positive. That would be the first time since July 2022, barring the brief un-inverting during the Japanese market crash earlier this month. Two-year yields held at 3.8671%, just 3 basis points higher than 10-year yields. Key developments that could influence markets on Thursday: - Spain, Germany preliminary CPI for August - U.S. weekly jobless claims - Panel participation from ECB chief economist Philip R. Lane - ECB deputy governors Aino Bunge and Olli Rehn take part in panel discussions - Final U.S. Q2 GDP reading Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-08-29/

2024-08-29 02:59

MUMBAI, Aug 29 (Reuters) - The Indian rupee is likely to open slightly higher on Thursday, boosted by equity inflows and after yet again managing to avoid hitting a record low in the previous session. The one-month non-deliverable forward indicated the rupee will open at 83.92-83.94 to the U.S. dollar, compared with its close of 83.9525 in the previous session. The local currency had inched down to 83.9675 on Wednesday but managed to avoid breaching its all-time low of 83.9725 mainly due to public sector banks' dollar sales. "Based on the past, the odds are that (these sales) were for the RBI (central bank)," a currency trader at a bank said. "I think that we will not see 84 for this week at least. You have decent inflows coming through." India's increased weightage in MSCI's emerging market index, which comes into effect on Friday, is expected to lead to inflows of up to $3 billion, per Nuvama Alternative and Quantitative Research. Usually, most of the inflows are on the day of the change, traders said. WEAK RISK APPETITE, DOLLAR RECOVERY Asian shares declined alongside U.S. equity futures as Nvidia's shares slumped in after-hours trading following its results. The dollar index has seen a bit of a recovery from Federal Reserve Chair Jerome Powell's dovish comments. The focus now turns to U.S. weekly jobless claims due later in the day, which gains importance considering Powell raised concerns over the health of the labour market. "Powell affirmed the Fed does not seek or welcome further weakness in the labour market. That suggests the state of the labour market will set the pace and timing of rate cuts," ANZ Bank said in a note. KEY INDICATORS: ** One-month non-deliverable rupee forward at 83.99; onshore one-month forward premium at 7 paisa ** Dollar index down at 100.95 ** Brent crude futures up 0.2% at $78.8 per barrel ** Ten-year U.S. note yield at 3.83% ** As per NSDL data, foreign investors bought a net $571.2 million worth of Indian shares on Aug. 27 ** NSDL data shows foreign investors bought a net $84.1 million worth of Indian bonds on Aug. 27 Sign up here. https://www.reuters.com/markets/currencies/rupee-helped-by-expected-inflows-sapped-by-weak-risk-appetite-2024-08-29/