2024-09-23 00:35

Major U.S. stock indexes end with gains Euro falls after weak data Switzerland tipped for at least 25bp rate cut NEW YORK, Sept 23 (Reuters) - Global stock indexes rose on Monday as Federal Reserve policymakers said last week's large interest rate cut was warranted, while the euro fell against the dollar as business activity readings of the euro zone economy disappointed. U.S. Treasury yields rose as bond investors continued to price out a near-term recession in the world's largest economy. U.S. policymakers' comments were in focus after the Fed last week began an easing policy with a half-point rate cut. Three Fed policymakers said Monday that the cut was meant to try to sustain what they see as an emerging and healthy balance in the economy. Minneapolis Fed President Neel Kashkari called the cut the "right decision" while Bank of Chicago President Austan Goolsbee said he expected "many more rate cuts over the next year." Atlanta Federal Reserve President Raphael Bostic said the U.S. economy is close to normal rates of inflation and unemployment and the Fed needs monetary policy to "normalize" as well. Investors want to see that "the 50 basis point rate cut was not triggered by an emergency mindset at the FOMC, but rather that inflation is in fact easing," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. "Data releases become increasingly important because the (stock) valuations have climbed higher," she said. The Dow Jones Industrial Average (.DJI) , opens new tab rose 61.29 points, or 0.15%, to 42,124.65, the S&P 500 (.SPX) , opens new tab rose 16.02 points, or 0.28%, to 5,718.57 and the Nasdaq Composite (.IXIC) , opens new tab rose 25.95 points, or 0.14%, to 17,974.27. U.S. stocks registered gains last week. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 2.68 points, or 0.32%, to 840.05. The STOXX 600 (.STOXX) , opens new tab index rose 0.4%. The U.S. rate futures market has priced in a 54% chance of a smaller 25-bp cut at the November meeting with a 46% probability of the bigger 50-bp easing, according to LSEG data. For 2024, the futures market is implying cuts of around 78 bps. On the data front, a survey compiled by S&P Global showed euro zone business activity sharply contracted this month as the bloc's dominant services industry flat-lined, while a downturn in manufacturing accelerated. In contrast, U.S. business activity was steady in September, but average prices charged for goods and services rose at the fastest pace in six months, possibly pointing to an acceleration in inflation in coming months. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.14% to 100.92, with the euro down 0.45% at $1.1112. Against the Japanese yen , the dollar weakened 0.21% to 143.61. Data on durable goods orders is also due this week. But investors are especially anxious to see the Fed's preferred inflation gauge, the core personal consumption expenditures (PCE) index, which is due Friday. U.S. yields on the long end of the curve - those from seven-year notes to 30-year bonds - earlier climbed to three-week highs. That further steepened the yield curve, a barometer of U.S. economic prospects, with the gap between two and 10-year yields hitting positive 17.9 basis points (bps), the steepest since June 2022. The yield on benchmark U.S. 10-year notes rose 2.3 basis points to 3.751%, from 3.728% late on Friday. Oil prices eased after the disappointing euro zone business activity data. U.S. crude fell 63 cents to settle at $70.37 a barrel and Brent fell 58 cents to settle at $73.90. Investors are debating whether global monetary easing may have started too late to stop a slowdown from taking hold. China's central bank has lowered its 14-day repo rate by 10 basis points, days after disappointing markets by not cutting longer-term rates. The Swiss National Bank meets on Thursday and markets are fully pricing a quarter-point cut to 1.0%, with a 41% chance it will ease by 50 basis points. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-09-23/

2024-09-22 21:49

Sept 23 (Reuters) - A look at the day ahead in Asian markets. The adrenaline from the Federal Reserve's bold interest rate cut and signal of intent to keep easing still appears to be coursing through global financial markets, which should see risk assets in Asia start the week on a strong footing on Monday. Nikkei futures are pointing to a rise of more than 1% at the open in Japan, with Japanese shares also getting a boost from the yen's slide last week. The rise in longer-dated U.S. Treasury yields, however, could temper some of the optimism. Friday's monetary policy decisions from Japan and China may also reverberate around Asian markets on Monday, and on that score, the picture is more mixed. As was widely expected, the Bank of Japan decided not to raise rates, but it signaled it is in no hurry to raise them again. This helped push the yen to its weakest daily close since September 4, which in turn helped lift Japanese stocks. The People's Bank of China also left rates on hold but this was more of a surprise. Domestically, China's weak economic and inflation dynamics appear to be screaming out for lower rates, and internationally, the Fed's outsized rate cut of 50 basis points gave the PBOC cover to move. But it didn't, despite the mounting evidence that it perhaps should have. The latest figures to reflect investors' gloomy view of China were foreign direct investment flows on Friday - in the first eight months of the year they were down 31.5% on the same period last year, the biggest fall since January 2009. The yuan is its strongest in 16 months though, thanks to the central bank's reluctance to cut rates and rising expectations that authorities will soon unveil stimulus that will revive growth, asset prices and confidence. The yen, meanwhile, starts the week on a soft footing after a roller-coaster ride last week. It rallied through 140.00 per dollar for the first time in over a year but closed near 144.00 per dollar for a weekly loss of 2%, its worst week since April. Japan's top currency diplomat Atsushi Mimura said yen carry trades of the past are likely to have been mostly unwound, but Tokyo is watching for any rebuild that could heighten market volatility, public broadcaster NHK quoted him as saying. U.S. futures market positioning data shows speculators growing more optimistic on the yen for an 11th straight week, increasing their net long positions to an eight-year high. The Asia and Pacific calendar on Monday is reasonably busy, with inflation figures from Malaysia and Singapore, flash September purchasing managers index (PMI) data from Australia and India, and New Zealand trade figures the highlights. The Reserve Bank of Australia begins its two-day policy meeting too. Here are key developments that could provide more direction to Asian markets on Monday: - Australia flash PMIs (September) - India flash PMIs (September) - Malaysia inflation (August) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-09-22/

2024-09-22 16:29

QUITO, Sept 22 (Reuters) - Ecuador's government has announced the suspension of electricity service for nine hours on Sunday in 12 of the Andean nation's 24 provinces and placed 19 areas on red alert due to a drought that has reduced the water levels of hydroelectric plants. The blackout in the provinces will be from 8:00 a.m. local time until 5:00 p.m., the Ecuadorian presidency said in a statement released Saturday night on X. It is in addition to the government's plans announced on Tuesday for eight-hour nightly power cuts nationwide from Monday to Thursday. Ecuador is gripped by the worst drought in the country in 61 years and an energy crisis made worse by what the government says is lack of maintenance of existing dams and contracts to ensure new energy generation. The Ecuadorian authorities said the extra suspension of electricity for Sunday was based on "protecting water resources." The measure was taken after a session of the Emergency Operations Committee on Saturday night. "We are in 19 provinces with shortages of water, fires and food security (issues)," Environment Minister Ines Manzano told reporters in Cuenca on Saturday. "The corresponding entities must accept and comply with the resolution declaring a red alert." After the government announced the planned power cuts on Tuesday, the military entered the Mazar hydroelectric plant, of about 170 megawatts and considered key for its large storage capacity, to support its operation and protect it. Sign up here. https://www.reuters.com/world/americas/ecuador-cuts-power-half-its-provinces-amid-historic-drought-2024-09-22/

2024-09-22 05:56

DUBAI, Sept 22 (Reuters) - A gas explosion in a coal mine in Iran's South Khorasan Province killed at least 31 people and injured 16, the country's interior minister Eskandar Momeni told state media on Sunday. Local media had reported earlier in the day that 51 people were killed following the accident they said was caused by a methane gas explosion in two blocks, B and C, of the privately-owned mine operated by the Madanjoo company. Momeni added that 17 miners were still missing and their fate remained unknown as rescue teams were still 400 metres away from their likely location. They were expected to reach it by tomorrow after removing rubble and excess gas. There were 69 workers in the blocks at the time of the explosion, state TV reported. "76% of the country's coal is provided from this region and around 8 to 10 big companies are working in the region including Madanjoo company," the governor of South Khorasan Province Ali Akbar Rahimi told state TV on Sunday. The mine went through inspections last month and complied with all safety regulations, labour minister Ahmad Meydari told state media, denying any case of negligence and adding that such "sudden events also happen in the most advanced mines globally". An investigation into the incident has been ordered by the country's public prosecutor. The explosion occurred at 9 p.m. (1730 GMT) on Saturday, state media said. Iran's Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian sent their condolences to the victims' families. Sign up here. https://www.reuters.com/world/middle-east/least-19-dead-coal-mine-blast-iran-state-tv-says-2024-09-22/

2024-09-21 21:14

TRIPOLI, Sept 21 (Reuters) - Libya's Internal Security Agency said on Saturday it had thwarted an attempt to smuggle 100 kg (220 lb) of gold and 1.5 million euros at Misrata international airport during a security check of an international flight. The agency said on its verified Facebook page that the gold bars were found in three suitcases while the money was in one suitcase. The suitcases were spotted during the security inspection process of a flight to Turkey, said the agency. A number of pictures posted by the agency showing the confiscated suitcases containing gold bars and bundles of euro banknotes. Misrata is a port city about 200 km (125 miles) east of the capital Tripoli. The agency added that "those responsible for these suitcases were arrested." In May, the Tripoli-based attorney general said it ordered the arrest of director general of customs and other officials at Misrata international airport over conspiring to smuggle nearly 26,000 kg of gold. Libya has had little peace since a 2011 NATO-backed uprising and it split in 2014 between eastern and western factions. Sign up here. https://www.reuters.com/world/africa/libya-thwarts-smuggling-attempt-100-kg-gold-15-mln-euros-2024-09-21/

2024-09-21 20:58

Sept 21 (Reuters) - A California firefighter has been arrested and accused of setting five blazes in the state's wine country, even as his fellow firefighters battle flames that have consumed almost a million acres and forced thousands of evacuations in the state this year. Robert Matthew Hernandez, a 38-year-old fire apparatus engineer of Healdsburg, California, was arrested on Friday on suspicion of arson. He was accused of setting five fires between Aug. 15 and Sept. 14 while off-duty, the California Department of Forestry and Fire Protection, or Cal Fire, said in a news release. “I am appalled to learn one of our employees would violate the public’s trust and attempt to tarnish the tireless work of the 12,000 women and men of Cal Fire,” Joe Tyler, the agency’s director and fire chief, said in a statement to media. It was not immediately clear if Hernandez had retained a lawyer. Hernandez allegedly ignited the blazes in Sonoma County, known for its wines and vineyards. The fires were all extinguished by fire crews and burned less than one acre combined, according to the fire agency. A Cal Fire spokesperson said the agency would not provide further details at this time. A motive was unclear. Hernandez was formally charged with five counts of arson to forest land. He was being held in lieu of $2 million bail in the Sonoma County Jail on Saturday, according to the Sonoma County Sheriff's Office. Wildfires are still raging across the state. Three blazes in mountains around Los Angeles, the second-largest U.S. city, have destroyed more than 230 houses and other structures, forcing tens of thousands of people to evacuate suburbs and towns since Sept. 5. California wildfires have so far this year burned nearly four times , opens new tab as much land as last year at this time when the state's fire season was more benign, according to Cal Fire data. Bone-dry vegetation amid record heat blamed on climate change has been making fires worse, according to climate scientists. Sign up here. https://www.reuters.com/world/us/california-firefighter-accused-sparking-blazes-states-wine-country-2024-09-21/