2024-02-02 01:44

Copyrighted Image by: Reuters. Investing.com -- Oil prices fell Friday, to end the week deep in the red as growing optimism over an extended ceasefire in the Israel-Hamas war cooled the supply risks premium baked into prices. By 14:30 ET (19.30 GMT), the U.S. crude futures settled 2.1% lower at $72.28 a barrel and the Brent contract dropped 1.9% to $77.19 a barrel. the crude benchmarks fell more than 7% this week. Talk of Israel/Hamas ceasefire deflates supply risk premium Multiple media reports suggest Israeli and Hamas leaders were considering a ceasefire that many expect to mark a severe de-escalation in military tensions in the Middle East, which have been a key point of support for oil prices in recent months. Attacks by the Iran-aligned, Yemeni Houthi group on vessels in the Red Sea had disrupted shipping activity in the region. After U.S.-led forces recently struck back against the Houthis, the conflict saw several shipping operators steer clear of the Suez Canal, which in turn pointed to potential oil delivery delays in Europe and Asia. But given that the Houthis’ main point of contention was the Israel-Hamas war, any de-escalation in the conflict is expected to wind down tensions in the Red Sea, lifting any disruptions to oil supplies. Strong jobs data boosts dollar to pile on crude price woes The US Dollar Index jumped Friday following U.S. monthly jobs data showing the economy created 353,000 last month, from an upwardly revised total of 333,000 in December, and significantly above the expected 187,000. A stronger dollar makes oil, priced in the U.S. dollars, more expensive and less attractive to foreign buyers. These strong numbers followed the Federal Reserve downplaying expectations for early interest rate cuts in 2024, during a meeting earlier this week. Keeping interest rates at elevated levels could further cool economic activity, hitting crude demand in the world’s largest consumer. https://www.investing.com/news/commodities-news/oil-prices-rise-but-still-set-for-weekly-loss-amid-gaza-ceasefire-chatter-3290648

2024-02-01 18:46

Copyrighted Image by: Reuters. Marathon Digital Holdings (MARA) to remove Hut8 as the operator of two Bitcoin mining sites Marathon Digital Holdings, Inc. (NASDAQ:MARA) has entered into an agreement with affiliates of Hut8 Mining Corp. to remove Hut8 (HUT) as the operator of two Bitcoin mining sites recently acquired by Marathon in Granbury, Texas and Kearney, Nebraska. Marathon intends to replace Hut8 as the operator of these sites by April 30, 2024. On January 16, 2024, Marathon closed its previously announced acquisition of two Bitcoin mining sites, totaling 390 megawatts of operational capacity. While Marathon assumed ownership of both sites, Hut8 continued to function as the operator. On January 30, 2024, subsidiaries of Marathon and Hut8 entered into an agreement to terminate Hut8 as the operator of these sites and transition the operational responsibilities to Marathon. By removing Hut8 as the third-party operator and assuming direct operational control of both sites, Marathon expects to reduce its operating fees, thereby improving its cost to produce bitcoin, to more effectively participate in energy hedging and other energy management services, and to streamline the implementation of its proprietary technology to improve operational efficiency. The transition is expected to be completed by April 30, 2024, at which point, Marathon will be both the owner and operator of 390 megawatts of capacity in Texas and Nebraska. “By operating the sites in Granbury and Kearney ourselves, we will be able to fully recognize the operational and economic benefits of owning these assets,” said Fred Thiel, Marathon’s chairman and CEO. “The consistent performance of our site in Abu Dhabi along with the immense improvements our team made to King Mountain’s uptime last year, clearly demonstrate that Marathon has some of the best operators in the industry. We look forward to gaining more influence over our new sites in Texas and Nebraska and leveraging our operational expertise to realize the full benefits of our recent acquisition.” https://www.investing.com/news/cryptocurrency-news/marathon-digital-holdings-to-remove-hut8-as-the-operator-of-two-bitcoin-mining-sites-432SI-3290364

2024-02-01 09:26

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar rose in early European trade Thursday, climbing near to a seven-week high, after the Federal Reserve kept interest rates steady and played down expectations for a March rate cut. At 04:25 ET (09:25 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.5% higher at 103.575, close to the highest level since mid-December. Dollar helped by Powell’s comments The Federal Reserve kept interest rates unchanged at elevated levels at the conclusion of its latest policy-setting meeting on Wednesday. That was widely expected, but the dollar received a boost after Fed Chair Jerome Powell said that recent stickiness in inflation will keep the central bank from carrying out any monetary loosening in the near-term. Goldman Sachs pushed back its expectation of the Fed starting interest rate cuts to May from March, while maintaining its forecast of five 25 basis points rate cuts this year. The influential investment bank expects four consecutive cuts starting in May through September and a final cut in December. “The strong message coming across from the Fed yesterday was that inflation and growth were moving into 'better balance', rate cuts would likely be coming but more data was required to give the Fed confidence to start the cycle,” said analysts at ING, in a note. There’s more labor market data to study later in the session, in the shape of weekly initial jobless claims, ahead of Friday’s key monthly payrolls report. Euro slips ahead of eurozone CPI data In Europe, EUR/USD traded 0.2% lower at 1.0791, ahead of the release of the latest eurozone inflation data, which could provide the European Central Bank policymakers with a push towards cutting interest rates. The eurozone CPI is expected to fall to 2.7% in January on an annual basis, a drop from 2.9% the prior month, and dropping closer to the ECB’s 2% medium-term target. The European Central Bank has tamed the "greedy beast" of inflation, policymaker Joachim Nagel said earlier this week, in a departure from his usual cautious tone. “Given the successful disinflation trends and weak activity data, it is therefore more difficult for the European Central Bank than the Fed to push back against early easing expectations,” added ING. “That is why markets still attach a 60% chance to an April rate cut from the ECB.” GBP/USD traded 0.3% lower at 1.2647 ahead of the Bank of England's policy meeting later in the session. The BoE is expected to keep rates unchanged, with Governor Andrew Bailey having previously stressed it is too early to talk about lower borrowing costs, but the policymakers could offer hints that the central bank is moving towards cutting interest rates this year. Yen gains as officials discuss monetary tightening In Asia, USD/JPY fell 0.1% to 146.75, with the yen gaining slightly after minutes from the Bank of Japan’s January meeting showed policymakers actively discussing a move away from its ultra-dovish stance. USD/CNY edged 0.2% higher to 7.1830, with the yuan remaining under pressure as data continued to suggest a sluggish economic recovery. A private survey showed that China’s manufacturing sector grew as expected in January, but its pace of growth now appeared to be slowing, while home sales plummeted in January, pointing to more pressure on a worsening property crisis. https://www.investing.com/news/forex-news/dollar-rises-after-powells-comments-euro-slips-ahead-of-eurozone-cpi-3289494

2024-02-01 05:44

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose on Thursday and were undeterred by the Federal Reserve stating that it will likely keep interest rates higher for longer, while safe-haven buying amid an ongoing conflict in the Middle East also aided the yellow metal. The Fed’s comments spurred a sharp reversal in risk-driven markets, particularly stocks, on Wednesday. This in turn fueled increased safe-haven demand for gold. The yellow metal was also aided by increased demand as a conflict between U.S.-led forces and the Yemen-based Houthi Group worsened. Spot gold rose 0.3% to %2,045.21 an ounce, while gold futures expiring in March fell 0.2% to $2,062.40 an ounce by 00:22 ET (04:22 GMT). The disparity highlighted more near-term demand for physical gold. Further gains in the yellow metal were held back by a sharp rebound in the dollar, which traded close to seven-week highs. Fed’s Powell downplays March rate cuts; Markets see cuts in May Fed Chair Jerome Powell said it was too soon for the central bank to consider trimming interest rates, especially as soon as March, given that inflation was still running sticky. But this hawkish rhetoric was somewhat countered by Powell still leaving the door open for eventual reductions in interest rates this year. Powell also noted continued resilience in the U.S. economy, and that he expected inflation to fall further in the coming months. Powell’s comments fueled increased bets that the Fed will begin trimming rates by May. The CME Fedwatch tool showed traders pricing in a 63% chance for a 25 basis point cut in the Fed’s May meeting. The tool also shows traders pricing in greater possibility that the U.S. benchmark rate will end 2024 in a range of 3.75% to 4.0%, down from its current high of 5.25% to 5.5%. Goldman Sachs analysts forecast a May rate cut, and maintained their outlook that the Fed will cut rates a total five times in 2024. The prospect of lower lending rates bodes well for gold, given that higher rates ramp up the opportunity cost of buying bullion. Copper prices cool after rallying to 1-mth high, China outlook mixed Among industrial metals, copper prices fell on Thursday as traders locked-in profits from a rally to one-month highs in the prior session. Copper futures expiring in March fell 0.6% to $3.8705 a pound. A recent rally in the red metal was driven chiefly by increased optimism over China, as the world’s largest copper importer rolled out more stimulus measures to support an economic recovery. But data prints for January showed sustained economic weakness. Official purchasing managers index data released on Wednesday showed the manufacturing sector remained in contraction, while a private survey released on Thursday pointed to stagnating growth in the sector. A deepening crisis in China’s property sector also dented sentiment, after beleaguered developer China Evergrande Group (HK:3333) was ordered by courts to liquidate. https://www.investing.com/news/commodities-news/gold-prices-rise-even-as-fed-shoots-down-early-ratecut-hopes-3289324

2024-02-01 04:43

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies retreated on Thursday, while the dollar hovered near a seven-week high after the Federal Reserve kept interest rates steady and shot down expectations for a March rate cut. Regional currencies were pressured chiefly by strength in the dollar, which shot up in overnight trade after the Fed’s comments. The dollar index and dollar index futures rose 0.2% each on Thursday, and were close to their highest levels since mid-December. The Chinese yuan was among the worst performers on Thursday, down 0.2% as data showed little improvement in a sluggish economic recovery. A private survey showed that China’s manufacturing sector grew as expected in January, but its pace of growth now appeared to be slowing. Separate data showed the country's home sales plummeted in January, pointing to more pressure on a worsening property crisis. The Australian dollar fell 0.1% following weaker-than-expected building approval data for December. The South Korean won rose 0.2%, boosted chiefly by data showing exports grew more than expected in January. This also saw the country’s trade balance shrink less than expected. Japanese yen an outlier as hawkish BOJ bets grow The Japanese yen was a key outlier among its Asian peers, rising for a second straight session after a summary of opinions from the Bank of Japan’s January meeting showed policymakers actively discussing a pivot away from its ultra-dovish stance. While the BOJ gave no direct indication on when it plans to begin tightening policy during the meeting, the summary indicated that a growing number of policymakers were now seeing more conditions being met for a pivot away from negative interest rates. Higher Japanese interest rates will be a key point of support for the yen, which was battered by a widening gulf between local and U.S. rates over the past two years. Fed downplays early rate-cut bets, markets now see May cuts Fed Chair Jerome Powell said that recent stickiness in inflation will keep the central bank from carrying out any monetary loosening in the near-term. This saw traders largely scale back bets that the Fed will begin cutting interest rates by as soon as March 2024. But Powell still noted much progress in the central bank’s fight against inflation, while also flagging continued resilience in the U.S. economy. His comments saw traders begin pricing in the possibility that the central bank will begin cutting rates from May 2024. Traders were also pricing in the notion that a delay in the Fed’s interest rates will see the bank carry out monetary loosening more aggressively later in 2024, pointing to deeper interest rate cuts. Goldman Sachs analysts said they still expect five rate cuts in 2024, beginning from May. The CME Fedwatch tool shows traders pricing in an over 60% chance for a 25 basis point cut in May. https://www.investing.com/news/forex-news/asia-fx-falls-dollar-near-7week-high-as-fed-says-no-hurry-to-cut-rates-3289242

2024-02-01 01:43

Copyrighted Image by: Reuters. Investing.com -- Oil prices fell Thursday, but traders had to contend with wild swings amid conflicting reports on the progress toward an extended Israel-Hamas ceasefire that may likely ease geopolitical tensions and concerns about a supply disruptions. By 14:30 ET (19.30 GMT), the U.S. crude futures settled 2.5% lower at $73.98 a barrel and the Brent contract fell 2% to $78.91 a barrel. Gaza ceasefire uncertainty weighs Tensions in the Middle East - that have kept supply disruptions concerns elevated - remained in focus as traders weighed up conflicting reports about a potential ceasefire in Gaza. Beyond the war in Gaza, however, tensions in the Middle East continue to simmer after the U.S. vowed to take "all necessary actions" to defend its troops following a deadly drone attack in Jordan. Major central banks pivot towards rate cuts The Fed kept interest rates unchanged on Wednesday, as widely expected, and Chair Jerome Powell poured cold water on the idea that a cut could come as soon as March, its next meeting. While this disappointed traders looking for an early rate cut to stimulate economic activity in the world’s largest economy, and biggest consumer of energy, Powell did indicate that rates had peaked and would move lower in coming months if inflation continued to fall. Data released earlier Thursday showed that the labor market is steadily easing, as initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 224,000 for the week ended Jan. 27. This was more than expected, and could help to curb wage inflation. Elsewhere, the Bank of England kept interest rates at a nearly 16-year high earlier Thursday, but softened its stance about the possibility of cutting them as one of its policymakers cast the first vote for a reduction in borrowing costs since 2020. Also, inflation in the eurozone eased last month, falling to 2.8% in January on an annual basis from 2.9% in December, inching towards the ECB's own 2% target. This all suggests that these major central banks are increasingly pivoting towards lower interest rates this year. No change at OPEC+ meeting The Organization of Petroleum Exporting Countries and allies, known as OPEC+, held a meeting earlier Thursday, the first major meeting of 2024, but there was limited price impact after the group left production policy changes off its agenda.. Underwhelming production cuts from the OPEC+ in late-2023 were a key point of contention for oil prices, as the move pointed to less tight markets in 2024 than initially expected. The cartel also now appears to have limited headroom to cut production further and support oil prices. https://www.investing.com/news/commodities-news/oil-prices-rise-on-middle-east-tensions-opec-meeting-in-focus-3289116