US STOCKS-Wall St climbs on easing U.S.-China trade tensions - Reuters News
14-May-2018 11:47:54 PM
- NXP jumps on China's Qualcomm deal review; boosts chipmakers
- Optical components makers rise after Trump's ZTE comment
- Xerox tumbles after scrapping $6.1 bln deal with Fujifilm
- Viacom shares tumble after CBS lawsuit against merger
- Indexes up: Dow 0.57 pct, S&P 0.37 pct, Nasdaq 0.55 pct
Changes comment, adds details, updates prices
By Sruthi Shankar
May 14 (Reuters) - U.S. stocks notched up gains on Monday on signs of easing trade tensions between the United States and China after President Donald Trump softened his stance on Chinese technology company ZTE Corp.
Trump on Sunday pledged to help ZTE "get back into business, fast" nearly a month after the U.S. Commerce Department banned American companies from selling to the firm for violating an agreement.
Trump's comments came ahead of trade talks between Chinese Vice Premier Liu He and U.S. officials this week.
"There has been calmer trade headlines, we haven't seen the rhetoric pick up," said John Augustine, chief investment officer at Huntington Bank in Columbus, Ohio.
Shares of some of the biggest suppliers to ZTE, including Acacia Communications, Oclaro and Lumentum Holdings rose between 11.1 percent and 4.1 percent.
Chip stocks got a boost from news that China had resumed its review of chipmaker Qualcomm's proposed $44 billion takeover of NXP Semiconductors. NXP surged 9.9 percent and Qualcomm 2.8 percent.
The Philadelphia semiconductor index was up 1.6 percent.
At 11:25 a.m. ET, the Dow Jones Industrial Average was up 142.51 points, or 0.57 percent, at 24,973.68. The blue-chip index was on track to post its eighth straight day of gains, with United Health's 1.6 percent rise providing the biggest boost.
The S&P 500 was up 10.11 points, or 0.37 percent, at 2,737.83 and the Nasdaq Composite was up 40.76 points, or 0.55 percent, at 7,443.64.
The S&P 500 and the Dow rose above their 100-day moving averages, a key technical level, for the first time in nearly a month last week on easing worries of inflation and a surge in oil prices.
"Soothing economic reports, robust earnings and calmer trade headlines have allowed stocks to gain the footing here so far." Augustine said.
Eight of the 11 major S&P sectors were higher, with technology, healthcare and energy sectors leading the gains.
The biggest decliner was Xerox, which tumbled 8.4 percent after the U.S. photocopier maker scrapped a planned $6.1 billion deal with Fujifilm Holdings.
Viacom Inc declined 5.8 percent after CBS Corp filed a lawsuit to stop controlling shareholder Shari Redstone from continuing with her plan to merge it with Viacom. CBS rose 4.9 percent.
Advancing issues outnumbered decliners for a 1.39-to-1 ratio on the NYSE and for a 1.17-to-1 ratio on the Nasdaq.
The S&P index recorded 22 new 52-week highs and two new lows, while the Nasdaq recorded 100 new highs and 24 new lows.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva)
UPDATE 8-Oil gains on OPEC report, U.S. crude discount to Brent deepens - Reuters News
14-May-2018 11:58:52 PM
- OPEC report shows global oil glut virtually eliminated
- U.S. sanctions against Iran keep oil near three-year highs
- Europe, Asia oppose U.S. sanctions plans
New throughout, updates prices, market activity and comments, new byline, changes dateline previous LONDON
By Ayenat Mersie
NEW YORK, May 14 (Reuters) - Oil prices rose on Monday as OPEC reported that the global oil glut has been virtually eliminated, while U.S. crude's discount to global benchmark Brent widened to more than $7, its deepest in nearly five months.
Global benchmark Brent was up $1.08 cents at $78.20 a barrel by 11:56 a.m. EDT (1556 GMT) and U.S. crude rose 43 cents to $71.13.
The report from the Organization of the Petroleum Exporting Countries "was bullish. That absolute plunge in Venezuelan production ... just highlights how tenuous the market is in terms of the supply and demand balance," said John Kilduff, Partner at Again Capital LLC.
The OPEC report, published Monday, showed Venezuelan production at its lowest in decades and said the global oil glut had been virtually eliminated. Even so, OPEC and other producing countries were still trimming output more than their supply-cutting pact required.
U.S. crude's discount to Brent was more than $7, the widest since late December.
"You have the threat that a high enough price will start to activate the 7,700 drilled but uncompleted wells in the lower 48 states," said Walter Zimmerman, chief technical analyst at ICAP TA.
"And meanwhile, if Iranian crude is really taken off the water, it's going to impact Brent much more than it's going to impact WTI," Zimmerman said.
It is unclear how hard U.S. sanctions will hit Iran's oil industry. Much will depend on how other major oil consumers respond to Washington's action against Tehran, which will take effect in November.
China, France, Russia, Britain, Germany and Iran all remain in the nuclear accord that placed controls on Tehran's nuclear program in exchange for an easing of sanctions.
"Germany has said it will protect its companies from U.S. sanctions, Iran has said French oil giant Total has yet to pull out of its fields and all the while it seems the Chinese are ready to fill the void created by the U.S," said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
Michael Wittner, analyst at Societe Generale, forecasts U.S. sanctions will remove 400,000-500,000 barrels per day of Iranian crude from the global market.
"In 2012 the reduction in Iranian crude production and exports was around 1 million bpd," Wittner said. "This time around, we expect much less of an impact."
Also supportive to prices was data from market intelligence firm Genscape showing that inventories at Cushing, Oklahoma, the delivery point for U.S. crude futures, fell more than more than 400,000 barrels in the week to May 11, according to traders who saw the data.
(Additional reporting by Christopher Johnson in London and Henning Gloystein in Singapore
Editing by David Goodman and David Gregorio)
PRECIOUS-Gold firms as dollar retreats from 2018 peak - Reuters News
14-May-2018 09:58:24 PM
- Geopolitical risks could support bullion
- Gold price expected to remain in narrow range
(Updates prices)
By Pratima Desai
LONDON, May 14 (Reuters) - Gold prices edged higher on Monday as the dollar retreated from a 2018 peak after subdued U.S. inflation data last week highlighted the prospect of fewer U.S. interest rate increases than previously expected this year.
Spot gold was up 0.2 percent at $1,320.8 an ounce at 1348 GMT, having on Friday touched $1,325.96, its highest since April 26. U.S. gold futures were unchanged at $1,320.7.
A weaker U.S. currency makes dollar-denominated gold cheaper for holders of other currencies -- a relationship used by funds to generate buy and sell signals.
Though the dollar eased on Monday, its performance against a basket of other major currencies touched 93.416 last week for a gain of more than 4 percent since April 17 and its highest level since December.
"Gold is dollar-driven but it is doing reasonably well given the dollar is generally stronger," said Macquarie commodities strategist Matthew Turner.
Further support could come from rising security risks in the Middle East after the United States said it would withdraw from the 2015 international nuclear deal with Iran and reimpose sanctions.
However, gold is expected to remain in the narrow range in which it has been trading this year -- mostly between $1,300 and $1,350 -- unless supply or demand fundamentals change dramatically.
"Gold's trading range in the first four months between low and high price was the lowest in percentage terms since it was fixed to the dollar in 1971," Turner said.
An increase to U.S. interest rates, possibly in June at the Federal Reserve's next meeting, will weigh on gold, though analysts say that would be unlikely to push gold significantly lower.
"Over the short term, and particularly during May, we see gold trading between $1,285 and $1,338 an ounce as continued strength in the dollar and rising rates pressure values lower," said INTL FCStone analyst Edward Meir.
Traders said that falling gold imports by India, a top consumer, were also undermining sentiment.
Silver was up 0.1 percent at $16.63 an ounce, platinum gained 0.2 percent to $923.20 and palladium added 0.1 percent to 996.75.
(Additional reporting by Apeksha Nair in Bengaluru Editing by David Goodman and Dale Hudson)
GRAINS-U.S. soy futures rebound; wheat extends losing streak; corn flat - Reuters News
14-May-2018 11:23:50 PM
Recasts, updates with U.S. trading, adds new analyst quote, changes byline and dateline; previous PARIS/SINGAPORE
By Mark Weinraub
CHICAGO, May 14 (Reuters) - Chicago Board of Trade soybean futures rose on Monday, bouncing back from their lowest in more than five weeks on a round of technical buying and signs that Chinese demand for export supplies was picking up, traders said.
Wheat futures dropped, on track for their fourth straight losing session, falling through key technical support points to hit their lowest since April 27. Corn futures were close to unchanged.
Soybean futures sagged to their lowest since April 4 during overnight trading following a 1.3 percent drop on Friday.
"We got a little too low a little too quick," said Mark Schultz, chief analyst at Minnesota-based Northstar Commodity Investment Co.
At 10:14 a.m. CDT (1514 GMT), Chicago Board of Trade July soybean futures were up 14 cents at $10.17-1/4 a bushel.
The U.S. Agriculture Department reported weekly soybean export inspections of 688,195 tonnes. That topped analysts' forecasts for 450,000 tonnes to 650,000 tonnes and included 128,688 tonnes of supplies headed to China.
Traders also cited hopes that Chinese soybean purchases would pick up amid signs of easing trade tensions with the world's largest buyer of the oilseed.
U.S. President Donald Trump pledged on Sunday to help ZTE Corp after a U.S. ban crippled the Chinese technology company, offering a job-saving concession to Beijing ahead of high-stakes trade talks this week. Sources said China was willing in principle to import more U.S. agriculture products in return for Washington smoothing out penalties against ZTE, but they did not offer details.
CBOT July soft red winter wheat futures were 7-3/4 cents lower at $4.91 a bushel.
After reaching multimonth highs at the start of May amid concern about dry weather in the U.S. Plains and other major wheat-producing regions worldwide, Chicago prices have been dampened by the government's bigger-than-anticipated forecast of this year's U.S. wheat crop on May 10 and the return of rain to parts of the U.S. Plains.
"Some fundamental investors will no doubt have taken profits," Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, said of wheat.
K.C. hard red winter wheat for July delivery, which tracks the crop being grown in the Plains, were off 1.5 percent and on pace for their seventh straight session of declines.
CBOT July corn futures were unchanged at $3.96-1/2 a bushel.
(Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sunil Nair, David Goodman and Jonathan Oatis)
TABLE-Trade estimates for USDA grain export inspections - Reuters News
14-May-2018 10:20:16 PM
May 14 (Reuters) - The U.S. Department of Agriculture is expected to release its weekly grain and oilseed export inspections report at 10:00 a.m. CDT (1500 GMT) on Monday.
Export inspection estimates for U.S. grain and soybeans are as follows, in tonnes, according to trade industry analysts:
| Range | Previous week | |
| Wheat | 250,000-500,000 | 327,662 |
| Corn | 1,400,000-1,800,000 | 1,916,461 |
| Soybeans | 450,000-650,000 | 533,667 |
(Reporting by Michael Hirtzer)
UPDATE 2-"The clock is ticking" - EU warns Britain of poor Brexit progress - Reuters News
15-May-2018 12:44:26 AM
- Tensions starts building up ahead of June 28-29 summit
- May under pressure to make decision on customs
- Irish border, trade, security, expat rights still outstanding
Adds Barnier comments to EU ministers
By Gabriela Baczynska
BRUSSELS, May 14 (Reuters) - The European Union on Monday warned Britain time was running out to seal a Brexit deal this autumn and ensure London does not crash out of the bloc next March, adding to pressure on Prime Minister Theresa May.
May's spokesman, however, said the "focus is on getting this right" rather than meeting a deadline.
The EU's Brexit negotiator Michel Barnier told 27 ministers of the bloc meeting in Brussels on Monday that "no significant progress" had been made in negotiations with London since March, the Bulgarian chairwoman of the talks said.
Diplomats and officials in Brussels have raised doubts about whether the bloc and London will be able to mark a milestone in the negotiations at the summit of EU leaders on June 28-29.
The current schedule puts progress in June as an important step towards a final Brexit deal in October, which would leave enough time for an elaborate EU ratification process before the Brexit day.
"October is only five months from now and still some key issues related to the withdrawal agreement need to be settled. In June we need to see substantive progress on Ireland, on governance and all remaining separation issues," said Deputy Prime Minister Ekaterina Zakharieva of Bulgaria, which holds the EU's rotating presidency.
German, Austrian and Dutch ministers all echoed the same concern, saying Britain has not made its position clear in detail on parts of the negotiations.
"We are concerned that there is no clear stance, no clear position from the British. The clock is ticking," German EU Minister Michael Roth told his EU peers.
"We need now to be making substantial progress, but that is not happening. What is worrying us in particular is the Northern Ireland question where we expect a substantial accommodation from the British side."
At home, May is stuck between a rock and a hard place with staunch Brexit supporters pushing to sever ties with the EU and others advocating keeping close customs cooperation with the bloc to reduce frictions in future trade.
May's spokesman said London was working on two options for post-Brexit customs cooperation.
Under a customs partnership, Britain could collect tariffs on goods entering the country on the EU's behalf. Under a second idea, for a streamlined customs arrangement, traders on an approved list would be able to cross borders freely with the aid of automated technology.
PRESSURE
But the EU has said London must come up with a solution for the Irish border conundrum and highlights that has not happened. Both sides worry that reinstating a physical border between EU-member Ireland and Britain's province of Northern Ireland - including to manage customs - could revive violence there.
Other outstanding issues include guarantees for expatriate rights, agreeing on security cooperation and trade rules after Brexit.
With May's cabinet, her ruling Conservative party and the British split on Brexit, the prime minister has come under increasing pressure at home in recent weeks to make a decision on customs.
The Brexit schedule is tightening, sources said, which helps the EU negotiating strategy to pile pressure on London before the June summit but mostly is due to lack of substantial headway in the talks.
Dutch Foreign Minister Stef Blok said it was too early to discuss an extension of the timeline, but added: "The aim is now to conclude a deal in the time schedule that has been agreed on ... I very much hope we will agree but there are no guarantees, unfortunately."
(Additional reporting by Philip Blenkinsop in Brussels and Liz Piper in London, Writing by Gabriela Baczynska, Editing by Matthew Mpoke Bigg and Toby Chopra)
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