Stock & Commodities Related News.

US STOCKS-Wall St to open lower as optimism over trade talks fades - Reuters News

23-May-2018 09:09:25 PM

• U.S.-China trade deal 'too hard to get done'- Trump
• Fed minutes awaited at 2:00 p.m. ET
• Comcast drops on plan to top Disney bid for Fox assets
• Tiffany surges, Target falls after quarterly results
• Futures down: Dow 0.71 pct, S&P 0.62 pct, Nasdaq 0.97 pct

Adds comment, adds details, updates prices

By Medha Singh

May 23 (Reuters) - Wall Street was headed to open lower on Wednesday after U.S. President Donald Trump cast fresh doubts over current U.S.-China trade talks and ahead of a Federal Reserve report that would be watched for cues on pace of future interest rate hikes.

Trump signaled a new direction for the trade talks, saying the current track appeared "too hard to get done", a day after telling reporters that he was not pleased with the recent talks.

The latest uncertainty comes as investors prepare to assess the Federal Reserve's May meeting minutes, scheduled for release at 2:00 p.m. ET, for indications of how many rate hikes are likely this year.

The U.S. central bank lifted borrowing costs in March and policymakers are split between those who expect another two rate hikes this year and those who forecast three, in the backdrop of low unemployment, moderate growth and rising inflation.

"Not only are the trade negotiations in focus but we also have the Fed's minutes and I expect them to be hawkish," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"A combination of the Fed and the trade worries will make today a rocky session."

At 8:53 a.m. ET, Dow e-minis were down 171 points, or 0.69 percent. S&P 500 e-minis were down 16.25 points, or 0.6 percent and Nasdaq 100 e-minis were down 65.75 points, or 0.95 percent.

U.S. 10-year Treasury yields fell to eight-day lows as investors shunned risk. Of the 30 Dow Jones Industrial Average components trading premarket, 29 were in the red.

A majority of the Nasdaq 100 and S&P 100 stocks trading premarket were also lower.

Target sank 4.5 percent after the retailer's quarterly profit rose less than expected as increasing investments dented margins.

Tiffany jumped 14.7 percent after the jeweler's quarterly results blew past estimates and the company also raised its full-year profit forecast and announced a $1 billion share buyback program.

Lowe's gained 4.4 percent after the home improvement retailer maintained its annual financial targets on expectations that demand will recover after a disappointing first quarter.

Comcast fell 2.0 percent after the company said it was preparing to top Disney's offer for certain Twenty-First Century Fox assets.

Disney dropped 0.8 percent, while Fox gained 1.4 percent.

(Reporting by Medha Singh in Bengaluru; Editing by Sriraj Kalluvila)

 

 

 

UPDATE 4-Oil falls as concern mounts over OPEC supply, softer global growth - Reuters News

23-May-2018 08:04:51 PM

• Brent, U.S. crude drop on expectations of higher OPEC output
• Talk of sanctions on Iran, lower Venezuelan supply support

Updates prices, adds comment

By Amanda Cooper

LONDON, May 23 (Reuters) - Oil fell on Wednesday, under pressure from a potential increase in OPEC crude output to cool the market's recent rally and cover any shortfalls in supply from Iran and Venezuela.

Across the broader financial markets, investors dumped equities and other industrial commodities in favour of Japanese yen, U.S. and German government bonds and gold, as concern mounted that setbacks to U.S.-China trade talks would undermine increasingly fragile-looking world growth.

Brent crude futures were last down 56 cents at $79.01 a barrel by 1153 GMT, while U.S. crude fell 41 cents to $71.79 a barrel.

Oil prices have gained nearly 20 percent so far this year, with Brent briefly rising above $80, driven primarily by coordinated supply cuts by the Organization of the Petroleum Exporting Countries and partners including Russia.

The price has also been affected by rising geopolitical tensions that could dent global output just as demand is set to hit 100 million barrels per day in the final quarter of this year, according to the International Energy Agency.

In addition, the United States plans to reimpose sanctions on major oil producer Iran, while an economic crisis has decimated Venezuela's crude output.

Based on the prospect of a shortfall in supply relative to demand, investors had driven their bets on a sustained rise in the price of oil to record highs earlier this year.

But with so much uncertainty over how sanctions might affect Iranian supply, fund managers have cut their holdings of crude futures and options by more than 10 percent in the last seven weeks to the lowest level this year.

"It does seem like any move above $80 attracts selling interest right now and that could potentially lead us to a period of consolidation, where I think $77.50 or even $75 might be in focus," Saxo Bank senior manager Ole Hansen said.

"We still have the unquantifiable impact of U.S. sanctions against Iran."

OPEC may decide to raise oil output as soon as June due to worries over Iranian and Venezuelan supply and after Washington raised concerns the oil rally was going too far, OPEC and oil industry sources familiar with the discussions told Reuters.

"If there is a confirmation of easing OPEC+ supply restrictions, the $100+ a barrel theme will have to move from 'lack of prompt supply' to 'lack of spare capacity'," said Petromatrix strategist Olivier Jakob.

Rising supply in the United States, where shale production is forecast to hit a record high in June, has limited the upward move in prices.

U.S. crude and distillate stockpiles fell last week, while gasoline inventories increased unexpectedly, data from the American Petroleum Institute showed on Tuesday.

(Additional reporting by Naveen Thukral and Jessica Jaganathan in SINGAPORE; Editing by Jon Boyle and Louise Heavens)

 

 

 

PRECIOUS-Gold rises on U.S.-China trade negotiations despite firmer dollar - Reuters News

23-May-2018 08:26:10 PM

• Dollar index inches up ahead of Fed minutes
• Fed May FOMC minutes due at 1800 GMT

 (Updates prices)

By Zandi Shabalala

LONDON, May 23 (Reuters) - Gold prices rose on Wednesday on uncertainty about trade talks between the United States and China, which boosted the metal's safe-haven appeal despite a firmer dollar.

The precious metal, which is often used to store wealth in times of political or economic uncertainty, showed signs of strength after U.S. President Donald Trump said he was not pleased with recent talks with China.

Trump also said there was a "substantial chance" his summit with North Korean leader Kim Jong Un will not take place as planned on June 12 amid concerns that Kim is resistant to giving up his nuclear weapons.

The dollar, in which gold and other commodities are priced, rose versus a basket of currencies, with investors awaiting minutes of the Federal Reserve's latest policy meeting due later in the day.

"Normally in such a stronger dollar environment gold is trading lower but it's not and this is indicating there is probably safe-haven flows supporting gold," said Quantitative Commodity Research consultant Peter Fertig.

Spot gold was 0.3 percent higher at $1,294.31 per ounce as of 1210 GMT, having touched its highest since May 15 at $1,297.84. U.S. gold futures for June delivery rose 0.2 percent to $1,294 per ounce.

Prices remained stuck in a narrow range, just below $1,300 per ounce, as investors awaited more clues on the path of U.S. interest rates.

At its previous meeting in May, the U.S. central bank expressed confidence in the economy and kept its benchmark lending rate unchanged. It said inflation was near the bank's target, leaving it on track to raise borrowing costs in June.

Gold is highly sensitive to rising U.S. rates, as these tend to boost the dollar.

Gold has shown reduced volatility in the last few trading sessions as it attempted a break above $1,300 and prices are "waiting for a new, clear direction," said ActivTrades chief analyst Carlo Alberto De Casa.

Holdings of the world's largest gold-backed exchange-traded fund (ETF), New York-based SPDR Gold Shares, fell 0.38 percent to 852.04 tonnes on Monday from 855.28 tonnes on Friday.

"We think gold will be in for a period of consolidation in the short term and are monitoring moves in ETF holdings - which have surprisingly held rather steadily given the move through $1,300 support," said MKS senior precious metals dealer Alex Thorndike.

In other precious metals, silver was steady $16.52 an ounce and platinum was 0.3 percent higher at $905.80 an ounce.

Palladium eased 1.4 percent to $976.97 an ounce.

 

(Additional reporting by Karen Rodrigues in Bengaluru Editing by Edmund Blair and Elaine Hardcastle)

 

 

 

 

METALS-Copper slides as optimism over U.S.-China trade talks fades - Reuters News

23-May-2018 08:17:34 PM

Updates with official prices

By Jan Harvey

LONDON, May 23 (Reuters) - Copper fell 2 percent on Wednesday as U.S. President Donald Trump tempered optimism that a China-U.S. trade stand-off was at an end, knocking appetite for cyclical assets and helping pull the metal from the previous day's near one-month high.

Stock markets slid and the dollar fell against the Japanese yen - seen as a haven from risk - after Trump said he was not pleased with recent trade talks with China.

His comments came after U.S. Treasury Secretary Steven Mnuchin said over the weekend that the prospect of a trade war between the two countries was "on hold", giving a boost to nominally riskier assets like stocks and industrial metals.

"If you enter a phase where trade growth slows down, then it is quite bad news for the Chinese economy," Oxford Economics commodities analyst Daniel Smith said.

"The risks around a lot of these things are definitely much higher than they were a few months ago."

China is the world's largest consumer of copper, which is chiefly used in construction.

* COPPER: Three-month copper on the London Metal Exchange was down 2.2 percent at $6,828 a tonne in official trading, after peaking at $6,999 on Tuesday, its loftiest since April 26.

* COPPER INVENTORIES: On-warrant stocks of copper in London Metal Exchange (LME) warehouses -- metal not earmarked for delivery and therefore available to the market -- fell 7,975 tonnes to 226,300 tonnes, their lowest since late January.

* GRASBERG: Global miner Rio Tinto Ltd said it was in discussions to sell its interest in the world's second largest copper mine to Indonesia's state mining holding company Inalum.

* VEDANTA: An Indian court halted the proposed expansion of Vedanta Resources copper smelter where a day earlier 11 people were killed when police fired on protesters seeking closure of the plant on environmental grounds.

* LEAD: LME lead was untraded in official rings, but was last bid down 1 percent at $2,450 a tonne, retreating from a 12-week high hit in the previous session after Chinese speculators drove a rally based by potential supply shortages.

* NICKEL: LME nickel, also untraded in official rings, was last bid 1.6 percent lower at $14,550 a tonne. Nickel remains the best performer among base metals, with a year-to-date gain of nearly 14 percent.

* NICKEL INVENTORIES: LME nickel stockpiles fell by another 2,454 tonnes, data on Wednesday showed, and are at their lowest since 2014, underlining a deficit in the metal used for stainless steel.

* OTHER METALS: LME zinc was down 1.4 percent at $3,014 a tonne in official trading, while aluminium was down 1.3 percent at $2,240 a tonne. Tin was untraded in official rings, but was last up 0.1 percent at $20,550 a tonne.

(Reporting by Manolo Serapio Jr. in Manila
Editing by Edmund Blair and Louise Heavens)

 

 

 

CBOT Trends-Soybeans up 1-2 cents, corn flat-down 1, wheat mixed - Reuters News

23-May-2018 09:26:37 PM

CHICAGO, May 23 (Reuters) - Following are U.S. trade expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Wednesday.

 

WHEAT - Mixed, up 1 cent per bushel to down 1 cent

• Wheat mixed as market pauses a day after the CBOT July contract notched a 2-1/2 week high at $5.30-1/4 a bushel. Futures underpinned by technical buying, short-covering and worries about dry conditions curbing yields in parts of North America, Russia and Australia.
• Millers in Asia have in the past month or so booked up to 1 million tonnes of new-crop Black Sea wheat for shipments starting in August, two of the traders said, with a wave of similar deals expected to follow.
• CBOT July soft red winter wheat last up 1 cent at $5.22-1/2 per bushel. K.C. July hard red winter wheat last traded up 1-1/4 cents at $5.41-3/4 and MGEX July spring wheat was up 2-1/4 cents at $6.35-1/4 a bushel.

CORN - Steady to down 1 cent per bushel

• Corn flat to fractionally lower, consolidating a day after the new-crop December contract reached $4.25, a 10-month high, triggering scattered farmer sales.
• The USDA said private exporters reported sales of 140,000 tonnes of optional-origin corn to Saudi Arabia, including 70,000 tonnes for delivery in the 2017/18 marketing year and another 70,000 tonnes for 2018/19.
• CBOT July corn last traded unchanged at $4.04-3/4 a bushel.

SOYBEANS - Up 1 to 2 cents per bushel

• Soybeans edging higher on expectations of improving demand from top global buyer China as trade tensions ease. China's state grain stockpiler returned this week to the U.S. soybean market for the first time since early April, two sources said.
• However, U.S. President Donald Trump signaled a new direction in U.S. and China's trade talks, saying the current track appeared "too hard to get done" and that any possible deal needed "a different structure."
• The Brazilian government will propose a reduction of a tax on diesel in a bid to end a nationwide truckers' protest against higher fuel prices, which is disrupting economic activity including soybean movement.
• CBOT July soybeans last up 1 cent at $10.31-1/2 per bushel.

 

(Reporting by Julie Ingwersen)

 

 

 

FOREX-Euro plunges as risk aversion, Italy concerns weigh - Reuters News

23-May-2018 07:41:41 PM

• Euro/franc unwinds all of its post Italy election surge
• Yen posts biggest single day rise against dollar in year
• Derivative markets signal more weakness for the euro

Adds quotes, details

By Saikat Chatterjee

LONDON, May 23 (Reuters) - The euro fell to near three-month lows against the Swiss franc on Wednesday as fresh data indicating a slowdown in European business activity cast a shadow over the timing of the central bank's rate hike, while concerns over Italian politics rose.

The euro's weakness also spilled over to the dollar, falling half a percent on the day, but broader risk aversion kept the dollar on the back foot against the franc and the Japanese yen.

The yen surged 1.2 percent against the dollar, set for its biggest daily rise in more than a year, as a wave of caution swept currency markets a day after U.S. President Donald Trump tempered optimism over progress made in trade talks with China.

Carry trades, where investors borrow in relatively low yielding currencies to invest in higher-yielding ones, came under pressure with the euro/swiss franc falling to its lowest levels since early-March.

The euro has unwound all of its rally against the franc since the Italian elections as the prospect of a spendthrift coalition government taking shape in Rome unnerved investors.

"The euro is coming up against some structural headwinds as the PMI data shows no signs of picking up while the Italian situation is also weighing on sentiment," said SEB senior currency strategist Richard Falkenhall.

DERIVATIVES

Currency derivative markets are signalling further weakness for the euro with one-year risk reversals on the single currency -- a gauge of demand for options on a currency rising or falling -- dropping to a seven-month low on Wednesday.

One year risk reversals fell to minus 0.4 after being in positive territory as recently as Monday, indicating that demand for euro puts has surged to protect downside risks, according to traders.

Morgan Stanley strategists said the euro's recent weakness could prompt overseas investors to hedge their bond and equity investments in Europe, which could add further downside pressure on the euro.

"The euro/Swiss franc cross encapsulates the growing risk premium that investors are placing on the euro in recent days and we may see further downside for now," said Alvin Tan, a currency strategist at Societe Generale in London.

While the dollar against a basket of its rivals rose 0.4 percent to 94.00, it weakened 1.2 percent and 0.6 percent against the Japanese yen and Swiss franc respectively.

Stocks tumbled and the yen gained broadly after Trump said on Tuesday he was not pleased with recent trade talks between the United States and China, the world's two biggest economies.

The euro fell to a six month low after German PMI data fell to a 20-month low indicating that economic momentum in Europe's biggest economy was faltering.

The euro/Swiss franc fell 0.7 percent to 1.1601 francs per euro, its lowest level since March 6.

The currency pair, a proxy for risk appetite within Europe, has fallen nearly 3 percent since May 14 as concerns of a fiscally profligate new coalition government in Rome has raised concerns of a showdown with the European Union.

The likelihood of a government comprised of the anti-establishment 5-Star Movement and the far-right League has pushed Italian 10-year yields up nearly 60 basis points since the start of May. The bulk of that move has been over the past week.

The safe-haven yen also rose against other currency crosses and surged against the Turkish lira, amid talk of Japanese retail investors selling the lira as stop-loss levels were hit.

The yen tends to rise in times of market turbulence since Japan is the world's largest creditor nation and traders tend to assume Japanese investors would repatriate funds at times of crisis.

Investors are now looking to the release on Wednesday of the Fed's minutes from its most recent meeting, when it kept interest rates steady.

In its post-meeting statement issued in early May, the Fed also said inflation had "moved close" to its target and that "on a 12-month basis is expected to run near the Committee's symmetric 2 percent objective over the medium term."

 

(Reporting by Saikat Chatterjee; Additional reporting by Masayuki Kitano in SINGAPORE; Editing by Raissa Kasolowsky and Jon Boyle)

Stock & Commodities Related News.

US STOCKS-Wall Street set to open higher as U.S.-China trade talks advance - Reuters News

22-May-2018 09:12:16 PM

• China cuts car import tariffs amid easing trade concerns
• Ford, General Motors, Tesla rise
• Kohl's jumps after results, helps other retailers
• Futures up: Dow 0.2 pct, S&P 0.17 pct, Nasdaq 0.31 pct

Adds comment, adds details, updates prices

By Medha Singh

May 22 (Reuters) - Stock futures pointed to a higher opening on Tuesday on signs of further progress in trade talks between the United States and China as the world's two largest economies pull back from the brink of a full-blown trade war.

Washington neared a deal to lift its ban on U.S. firms supplying Chinese telecoms gear maker ZTE Corp, sources said on Tuesday, while Beijing said it will steeply cut import tariffs for automobiles and car parts.

Shares of Ford, General Motors, Tesla, as well as the U.S.-listed shares of Ferrari and Fiat, were up between 0.7 percent and 1.7 percent in premarket trading.

"The market is taking very well to what appears to be the fact that Trump is able to maneuver the trade talks in our favor," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey. "We're seeing a continuation of that positive momentum this morning."

The stock market has generally been volatile this year on a combination of factors including the fear of higher inflation spurring faster U.S. interest rate hikes and worries over a global trade war.

While investors may be relieved over the easing trade tensions, many U.S. government and industry officials view President Donald Trump is backing off from his tough stance against what they see as China's unfair trade and market access practices.

At 8:44 a.m. ET, Dow e-minis were up 50 points, or 0.2 percent. S&P 500 e-minis were up 4.75 points, or 0.17 percent and Nasdaq 100 e-minis were up 21.75 points, or 0.31 percent.

Among other gainers, Kohl's was up 5.9 percent after the department store chain topped quarterly profit estimates and lifted its annual profit forecast.

Rival Macy's, which reported strong quarterly results last week, gained more than 2 percent while discount operator TJX rose 0.6 percent after results.

"It's comforting to know that retailing side is not dead. Consumer discretionary stocks have done very well for a while now and that's a small sign but it's another advocate for a strong economy," Bakhos said.

Among decliners, Toll Brothers slid 4.2 percent after disappointing second-quarter profit and weighed on other homebuilders. Lennar dipped 1.1 percent, while PulteGroup slipped 0.5 percent.

Micron, which raised its quarterly forecast and led the chipmakers higher on Monday, jumped 6.7 percent after announcing a $10 billion share buyback.

Facebook edged up 0.3 percent ahead of Chief Executive Mark Zuckerberg's defense of the company's data practices to European lawmakers in Brussels. The testimony starts at 12:15 p.m. ET and comes three days before tough new European Union rules on data protection take effect.

The possibility of a ZTE reprieve boosted shares of optical component makers. Acacia Communications, which got 30 percent of its 2017 revenue from ZTE, rose 4.5 percent, while Oclaro gained 1.7 percent.

 

(Reporting by Medha Singh in Bengaluru; Editing by Sriraj Kalluvila)

 

 

 

UPDATE 5-Oil rises towards $80 as supply concerns mount - Reuters News

22-May-2018 08:27:16 PM

LONDON, May 22 (Reuters)

* Venezuela vote increases concern about its oil supply

* OPEC cuts, looming U.S. sanctions on Iran also support

* U.S. crude oil inventories seen lower for third week

(Updates prices)

By Alex Lawler

LONDON, May 22 (Reuters) - Oil rose towards $80 a barrel on Tuesday, supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply.

Crude is trading at the highest since late 2014, underpinned by a supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand.

Brent crude , the global benchmark, rose 54 cents to $79.76 a barrel by 1221 GMT. Last week, it topped $80 for the first time since November 2014.

U.S. crude was up 31 cents at $72.55, having earlier traded at $72.72, its highest since November 2014.

"The solid global economy, selected supply disruptions and the upbeat market mood in particular in oil frame a positive environment," said Norbert Ruecker, head of commodities and macro research at Julius Baer.

The U.S. government imposed new sanctions on Venezuela following Sunday's re-election of President Nicolas Maduro, a move that analysts say could further curb the country's oil output already at its lowest in decades.

"We can expect continued falling Venezuelan production," said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo.

Concern about a potential drop in Iranian oil exports following Washington's exit from a nuclear deal with Tehran and the threat of U.S. sanctions is also supporting prices. On Monday, the United States hardened its approach to Iran.

Venezuela and Iran are members of OPEC, which with its allies has curbed production since January 2017 to get rid of a supply glut that in mid-2014 led to a price collapse.

Due in part to the involuntary drop in Venezuela's output, OPEC is over-delivering on the agreement. Saudi Arabia and other major OPEC producers could in theory add more supply, but have yet to do so.

The OPEC-led supply curbs have largely cleared an inventory surplus in industrialised countries based on the deal's original goals, and stocks continue to decline.

U.S. crude stockpiles are forecast to have declined by 2.8 million barrels last week, a third straight weekly fall. The American Petroleum Institute's inventory report for the period is due at 2030 GMT. [EIA/S]

Limiting the upward pressure on prices is rising supply in the United States, where shale production is forecast to hit a record high in June. [nL2N1SL1DC]

(Additional reporting by Jessica Jaganathan; Editing by Dale Hudson and Jane Merriman)

 

 

 

PRECIOUS-Gold gains as dollar rally comes off the boil - Reuters News

22-May-2018 08:20:09 PM

• Easing of geopolitical risk negative for gold - analyst
• SPDR gold holdings down 0.4 percent on Monday
• Platinum edges up from five-month low hit a day earlier

(updates prices)

By Maytaal Angel

LONDON, May 22 (Reuters) - Gold edged up on Tuesday from a 2018 low as the dollar fell from its five-month high, although risk appetite in the broader financial markets kept the metal's gains in check.

The dollar lost momentum following a rally prompted by rising U.S. bond yields and the prospect of a resolution to U.S.-China trade tensions. A weaker dollar makes dollar-priced gold cheaper for non-U.S. investors.

Washington and Beijing both claimed victory on Monday as the world's two largest economies stepped back from the brink of a trade war and agreed to hold further talks to boost U.S. exports to China.

"This quarter and maybe going into next, gold will continue to struggle but the (positive) views on the U.S. economy are overdone," said Philip Newman, director at Metals Focus.

"There are concerns over sizeable U.S. debt, there's the (U.S.) mid-term elections in November, there's enough out there that could see the dollar eventually weaken and gold prices start to improve through the back end of this year."

Spot gold edged up 0.2 percent to $1,294.91 per ounce by 1158 GMT. In the previous session, it slid to $1,281.76, its lowest since Dec. 27.

U.S. gold futures for June delivery rose 0.3 percent to $1,294.60 per ounce.

Capping gains in gold, European shares inched to a near four-month high as an easing of pressure on Italian markets coincided with China's latest move to open its economy to the rest of the world.

Gold, regarded as a safe haven, tends to weaken when there is strong investor appetite for equities, seen as riskier assets.

"The overriding narrative here is where the dollar is going," said Stephen Innes, APAC trading head at OANDA. Abating geopolitical risk was also weighing on sentiment for gold, he added.

Meanwhile, expectations that the Federal Reserve will raise U.S. interest rates again next month added to downward pressure on gold. Higher U.S. rates tend to boost the dollar and push bond yields up, making non-yielding assets such as bullion less attractive.

Innes said any drop to somewhere around the $1,275 level would start to attract more bullish sentiment. "But in the meantime the driver is going to remain the U.S. dollar," he added.

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.38 percent to 852.04 tonnes on Monday.

Silver rose 0.8 percent to $16.60 an ounce, while palladium fell 1.4 percent to $975.72 an ounce.

Platinum climbed 1.4 percent to $908.50 an ounce, after marking a low for the year in the previous session at $873.50.

 

(Additional reporting by Karen Rodrigues and Apeksha Nair in Bengaluru; Editing by Dale Hudson and David Stamp)

 

 

 

Trump wants more from EU to lift tariffs - EU trade chief - Reuters News

22-May-2018 06:11:24 PM

By Philip Blenkinsop

BRUSSELS, May 22 (Reuters) - Europe's proposals to open its markets wider to U.S. products including cars appear not to have persuaded Washington to lift the threat of import tariffs on EU steel and aluminium, the bloc's trade chief said on Tuesday.

U.S. President Donald Trump has set tariffs of 25 percent on incoming steel and 10 percent on aluminium on grounds of national security but has granted EU producers an exemption until June 1 pending the outcome of talks.

EU leaders last week agreed on four areas the bloc would be willing to discuss, including easier access for industrial products, but only on condition that the exemption is made permanent.

EU Trade Commissioner Cecilia Malmstrom spoke with U.S. Commerce Secretary Wilbur Ross after the proposals were made public, but said Washington did not seem satisfied.

"I think they don't think it is enough," she told reporters before a meeting of EU ministers to discuss trade.

Luxembourg Foreign Minister Jean Asselborn seemed equally gloomy about prospects.

"I think that on June 1 we will have another deadlock," he said. "Perhaps we will take a step forward in terms of what we can offer the Americans. It could be that we move towards quotas. Everything is open, but it's difficult."

The areas identified for discussion are: greater market access for industrial products, including cars, and to government tenders; energy, notably liquefied natural gas (LNG); possible cooperation among regulators; and reform of the World Trade Organization.

Export-oriented Germany, which has been the keenest to avoid a trade conflict, described the EU leaders' proposals as a first step and forecast "intensive discussion" on Tuesday to find a deal acceptable to both Europe and the United States.

"Time is running out," German Economy Minister Peter Altmaier said. "We know what is on the menu, now we need to get a good meal together. I think that is feasible."

So far, the United States has given permanent metals tariff exemptions to Australia, Argentina, Brazil and South Korea, but in each case set import quotas.

Malmstrom said she could not imagine the EU accepting quotas unless they were at levels of exports in recent years.

"But we are under the impression that somehow they want to limit steel to the U.S., aluminium as well," she said.

 

(Reporting by Philip Blenkinsop
Editing by Richard Balmforth)

 

 

 

CBOT Trends-Wheat up 9-11 cents, corn up 2-3, soybeans up 5-6 - Reuters News

22-May-2018 09:23:23 PM

 

CHICAGO, May 22 (Reuters) - Following are U.S. trade expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Tuesday.

 

WHEAT - Up 9 to 11 cents per bushel

• Wheat higher on a technical bounce after Monday's 2 percent slide in the CBOT July contract and on forecasts for warmer and drier conditions in the southern U.S. Plains winter wheat belt. Dryness in Australia remains a concern as well.
• The U.S. Department of Agriculture late Monday rated 36 percent of the U.S. winter wheat crop as good to excellent, unchanged from the previous week; analysts had expected a slight improvement.
• CBOT July soft red winter wheat last up 10-1/2 cents at $5.17-3/4 per bushel. K.C. July hard red winter wheat last traded up 11-3/4 cents at $5.38-1/4 and MGEX July spring wheat was up 6 cent at $6.27-3/4 a bushel.

CORN - Up 2 to 3 cents per bushel

• Corn heading higher for a third straight session on technical buying and spillover strength from wheat. Optimism about the easing of trade tensions between the United States and China lends support.
• Chart support noted in July corn at its 20-day moving average near $4.01.
• The USDA late Monday said the U.S. corn crop was 81 percent planted, matching the five-year average and topping an average of trade expectations for 80 percent.
• CBOT July corn last up 3 cents at $4.05-3/4 a bushel.

SOYBEANS - Up 5 to 6 cents per bushel

• Soybeans heading higher for a third straight session on technical buying and relief over the fading threat of a U.S. trade war with China, the world's biggest soy importer. CBOT July soybeans reached $10.32-1/2 ahead of the pause in trade, the contract's highest since May 10.
• Rally capped by better-than-expected U.S. soybean planting progress.
• The USDA late Monday said the U.S. soybean crop was 56 percent planted, well ahead of the five-year average of 44 percent and above an average of trade expectations for 54 percent.
• Brazil's truck drivers blocked major roadways around the capital of the country's largest grain state to protest increases in domestic fuel prices, the federal highway police said on Monday.
• CBOT July soybeans last up 6 cents at $10.31-1/4 per bushel.

(Reporting by Julie Ingwersen)

 

 

VEGOILS-Palm hits six-week peak on stronger crude oil and soyoil - Reuters News

22-May-2018 07:09:16 PM

• Palm posts strongest weekly percentage gain
• Registers third positive session in four
• Weaker production outlook also supports -trader

Updates with closing prices

By Emily Chow

KUALA LUMPUR, May 22 (Reuters) - Malaysian palm oil futures climbed to a six-week high in evening trade on Tuesday, charting a third session of gains in four, tracking overnight strength in U.S. soyoil and crude oil prices.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 1.3 percent at 2,477 ringgit ($624.64) a tonne at the end of the trading day for its largest percentage gain since May 14.

The market had hit an intraday peak of 2,485 ringgit, its highest since April 9.

Trading volume stood at 39,505 lots of 25 tonnes each by the close.

"Soyoil is up, and crude oil is trading at three-year highs," said one futures trader in Kuala Lumpur, adding that this encouraged more production of palm-based biodiesel.

Palm oil prices are affected by movements in crude oil because it is used as feedstock to produce biodiesel. Crude oil prices rose on Tuesday on concerns that Venezuela's output could drop further after a disputed presidential election and potential U.S. sanctions on the OPEC member.

Another trader said that expectations of lower palm oil production in May also supported benchmark prices.

Data from the Malaysian Palm Oil Board (MPOB) had showed that April output in the Southeast Asian country dipped by 1 percent to 1.56 million tonnes from a month earlier but was still the highest April level since 2015.

Palm oil is also affected by movements in rival edible oils that compete in the global vegetable oils market.

The Chicago July soybean oil contract jumped 1.4 percent on Monday, tracking rallies in soybean prices after the United States and China agreed to drop tariff threats as they work on a wider trade agreement.

Soyoil was up 0.7 percent at about 1100 GMT on Tuesday.

In other related oils, September soybean oil on China's Dalian Commodity Exchange fell 0.2 percent, while the Dalian September palm oil contract was trading flat.

 

(Reporting by Emily Chow
Editing by Amrutha Gayathri and David Goodman)

Stock & Commodities Related News.

US STOCKS-Tech, financials weigh on S&P, industrials prop up Dow - Reuters News

18-May-2018 11:44:32 PM

• Industrials gain as Sino-US trade talks progress
• Applied Materials forecast weighs on chip stocks
• Campbell Soup's margin warning hits food stocks
• Alphabet drops, Google to feature on CBS "60 minutes"
• Dow up 0.17 pct, S&P down 0.18 pct, Nasdaq drops 0.08 pct

Changes comment, adds details, updates prices

By Medha Singh

May 18 (Reuters) - Wall Street slipped on Friday, weighed down by financials and as Alphabet and Applied Materials led technology stocks lower, although losses were limited as industrial shares gained on signs of progress in Sino-U.S. trade talks.

China denied it had offered a package to slash the U.S. trade deficit by up to $200 billion, hours after it dropped an anti-dumping probe into U.S. sorghum imports in a conciliatory gesture as top negotiators meet in Washington.

A Chinese foreign ministry spokesman said the consultations were "constructive" as the world's two biggest economies are seeking to bridge a divide on trade issues.

"There is still a concern around trade talks with China, but ... the stock market is cautiously optimistic that trade talks will lead to a good result," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.

The industrial sector jumped 0.5 percent, the most among the 11 major S&P sectors, with Boeing's near 2 percent rise giving the biggest lift.

Also helping the industrials sector was Deere, which jumped 5.5 percent after the company raised its full-year earnings estimate.

Alphabet tumbled 0.8 percent, weighing the most on the Nasdaq. Google is set to be featured on CBS News' "60 minutes" this weekend.

Applied Materials dropped 8.4 percent after the chip gear maker's disappointing forecast renewed concerns over slowing smartphone demand.

The warning dragged down Philadelphia chipmaker index by 0.9 percent. Intel's 1.8 percent fall weighed on the market's three major indexes.

The financial index was off 0.44 percent.

At 11:21 a.m. EDT the Dow Jones Industrial Average was up 42.81 points, or 0.17 percent, at 24,756.79, kept afloat by Boeing and other industrial stocks.

The S&P 500 was down 1.80 points, or 0.07 percent, at 2,718.33 and the Nasdaq Composite was down 5.96 points, or 0.08 percent, at 7,376.51.

Campbell Soup fell 11.1 percent after the company cut its full-year profit forecast and said its chief executive officer decided to step down. Shares of a host of other food companies also declined.

Nordstrom declined 8.9 percent after the upscale department store operator reported same-store sales that missed analysts' expectations.

Advancing issues outnumbered decliners by a 1.03-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the Nasdaq.

The S&P index recorded 3 new 52-week highs and 4 new lows, while the Nasdaq recorded 119 new highs and 20 new lows.

(Reporting by Medha Singh in Bengaluru; Editing by Anil D'Silva)

 

 

 

UPDATE 7-Oil prices little changed but set for sixth week of gains - Reuters News

18-May-2018 11:08:44 PM

• Brent rose above $80 on Thursday
• Saudi Arabia makes assurances on supplies
• BP sees oil prices falling to $50-$65 a barrel - Dudley
• Coming up: Baker Hughes U.S. rig count data at 1 p.m. EDT

Updates prices, market activity, adds commentary; changes byline, dateline to NEW YORK, previously LONDON

By Stephanie Kelly

NEW YORK, May 18 (Reuters) - Brent oil prices were little changed on Friday but were on track for a sixth straight week of gains, boosted by strong demand, looming U.S. sanctions on Iran and plummeting Venezuelan production.

Brent crude futures for July delivery fell 6 cents to $79.24 a barrel, a 0.1 percent loss, by 10:58 a.m. EDT (1458 GMT). The benchmark on Thursday broke through $80 for the first time since November 2014.

U.S. West Texas Intermediate (WTI) crude futures for June delivery fell 19 cents to $71.30 a barrel, a 0.3 percent loss. The contract was still set for its third straight week of gains.

"Today is a bit of a pause and a retrenchment heading into the weekend with speculators trying to decide how close are we to the seasonal shift and do I take profits here," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.

British bank Barclays said it expected average prices of $70 per barrel for Brent this year and $65 a barrel for 2019, up from estimates of $63 and $60 previously.

"Since last month, Venezuela's production decline, (U.S. President Donald) Trump's Iran sanctions decision, a new disruption in Nigeria, and anecdotal evidence from a new round of producer earnings require a price forecast revision," the bank said.

Rising prices have already raised the alarm among big oil-consuming countries.

OPEC kingpin Saudi Arabia said on Thursday it would make sure the world is adequately supplied with oil just as major consumer India expressed frustration with rising prices.

Saudi Energy Minister Khalid al-Falih called India's Petroleum Minister Dharmendra Pradhan to assure him that supporting global economic growth was "one of the kingdom's key goals," the Saudi Energy Ministry said.

However, it will take time to assess whether oil prices remain volatile or not, Russia's energy minister, Alexander Novak, said.

Crude prices have received broad support from voluntary supply cuts led by the Organization of the Petroleum Exporting Countries.

Beyond OPEC's cuts, strong demand, falling output from Venezuela and the U.S. announcement this month that it would renew sanctions against OPEC member Iran have helped push up Brent by 20 percent since the start of the year.

U.S. investment bank Jefferies said sanctions against Iran could remove more than 1 million barrels per day (bpd) from the market.

Barclays said output from Venezuela could fall below 1 million bpd. The country, also an OPEC member, produced around 1.5 million bpd in April.

In the United States, crude production has continued to grow to record highs, rising 20,000 bpd to 10.72 million bpd last week, the Energy Information Administration said. The United States in February produced 10.3 million bpd, a record.

Market participants awaited U.S. rig count data that was due later on Friday at 1 p.m. EDT.

BP Plc, however, expects the rally to cool off. The oil major's chief executive, Bob Dudley, told Reuters he saw the price of oil falling to between $50 and $65 a barrel due to surging shale output and OPEC's capacity to boost production.

(Additional reporting by Ahmad Ghaddar in London and Henning Gloystein in Singapore; Editing by Dale Hudson and Jon Boyle)

 

 

 

PRECIOUS-Gold prices fall as dollar hits fresh peak; rebound seen - Reuters News

18-May-2018 10:08:32 PM

• Spot gold down over 2 pct for the week
• Dollar index hits fresh five-month high
• Benchmark U.S. yields near 7-year peak

(Updates prices)

By Eric Onstad

LONDON, May 18 (Reuters) - Gold prices dipped on Friday, weighed down by a firmer dollar, but some traders said signs pointed to a rebound.

Spot gold was down 0.1 percent at $1,288.41 per ounce at 1400 GMT, after hitting its lowest since Dec. 27 in the previous session at $1,285.41.

The metal was heading for its biggest weekly decline since early December.

U.S. gold futures for June delivery fell 0.2 percent to $1,287.50 per ounce.

"There are many drivers that are pointing to an upside in the precious metals, so we're buying into this weakness," said Gianclaudio Torlizzi, partner at consultancy T-Commodity in Milan.

The sentiment index in gold was indicating it was strongly oversold while the dollar was heavily overbought, while U.S. inflation measures were rising, he added.

Data on Thursday showed a tightening U.S. labour market and factory activity in the mid-Atlantic region picking up, bolstering expectations the Federal Reserve will raise interest rates next month.

"We think there is room for a strong rally into the summer and we have a gold target of $1,430 by August," Torlizzi said.

The dollar index rose to a fresh five-month peak on Friday as the benchmark U.S. Treasury yield hit the highest in nearly seven years.

"The 10-year U.S. yields put the dollar on a firm foot and put pressure on metals and gold," said a Hong Kong-based trader, adding that some "risk-on" sentiment in markets today was also adding pressure.

A stronger greenback makes dollar-denominated gold more expensive for users of other currencies, while higher U.S. yields dampen the appeal of non-yielding bullion.

The demands of populist parties likely to form Italy's next government, which promised on Friday to ramp up spending, could also support gold.

"A debt crisis in Italy would have a far bigger impact than one in Greece. Gold would profit as a result," Commerzbank analysts said in a note.

Spot gold is still targeting $1,302 per ounce as it has stabilised around a support at $1,287, Reuters technical analyst Wang Tao said.

In other metals, silver fell 0.2 percent to $16.39 an ounce and was due to shed slightly more than 1 percent for the week.

Platinum dropped 0.6 percent to $883.60 per ounce after hitting a five-month low at $879 on Thursday. Platinum was set to fall around 4 percent on the week, the biggest weekly loss since early December.

Palladium declined 0.3 percent to $977.47 and was heading for a 2 percent weekly loss.

 

(Additional reporting by Apeksha Nair in Bengaluru; Editing by Adrian Croft and Jon Boyle)

 

 

GRAINS-U.S. wheat futures rally; corn, soy firm on hopes for export deal - Reuters News

19-May-2018 12:40:32 AM

Recasts with U.S. trading, adds new analyst quote, changes byline/dateline; pvs LONDON

By Mark Weinraub

CHICAGO, May 18 (Reuters) - U.S. wheat futures rallied on Friday, with the benchmark Chicago Board of Trade soft red winter wheat contract surging 3 percent on forecasts for dry conditions that could further stress an already damaged crop.

The weather outlook also threatened to slow planting progress in the U.S. Midwest, which was supportive of corn and soybean futures.

"Heavy rainfall across portions of the northern U.S. Plains and the western Midwest will further delay spring plantings, while unfavorable dry anomalies persist in the southern U.S. Plains," Thomson Reuters Weather Research said in a note.

Corn futures were up 1.6 percent following China's move to drop its anti-dumping probe into imports of U.S. sorghum on Friday, beating a hasty retreat from a dispute that wreaked chaos across the global grain market and raised concerns about rising costs and financial damage at home.

The decision also boosted soybean futures amid hopes it signaled that a move to settle all ongoing trade disputes between Beijing and Washington would follow soon.

"The whole complex is being supported by the idea that China is showing some flexibility and talk of a potential grand bargain," said Jim Gerlach, president of Indiana-based A/C Trading.

Chinese Vice Premier Liu He is in Washington for talks aimed at resolving trade tensions between the world's two largest economies.

At 11:31 a.m. CDT (1631 GMT), CBOT July soft red winter wheat futures were up 15 cents at $5.12-1/2 a bushel. CBOT wheat has risen for four days in a row and was on track for a weekly gain of 3.1 percent.

CBOT July corn futures were 6-3/4 cents higher at $4.02.

CBOT July soybean futures were up 1/4 cent at $9.95-1/4 a bushel.

Strength in soybeans was tempered by a U.S. Agriculture Department announcement that unknown buyers canceled sales to buy 949,000 tonnes of soybeans.

Soybean futures have fallen 0.8 percent this week and were on track for their third straight weekly loss. Corn futures were up 1.4 percent this week.

(Additional reporting by Naveen Thukral in Singapore and Nigel Hunt in London; Editing by Dale Hudson and Tom Brown)

 

 

 

UPDATE 1-Farm bill fails in U.S. House over Republican immigration spat - Reuters News

19-May-2018 12:42:30 AM

Adds context for bill's failure

By Amanda Becker and Susan Cornwell

WASHINGTON, May 18 (Reuters) - The Republican-controlled U.S. House of Representatives failed to approve a sweeping $867 billion farm bill on Friday after conservative Republicans warned party leaders not to hold the vote until they were given the chance to consider a bill to clamp down on immigration.

The next steps are unclear for the bill, which failed in a 198-to-213 vote.

Representative Cathy McMorris Rodgers, a member of Republican leadership, told reporters "the Freedom Caucus" was the reason the bill failed.

The conservative Freedom Caucus has about 30 members in the 435-seat House and they have been pushing for consideration of a conservative immigration bill. The group told party leaders on Thursday that they should delay the farm bill vote until a debate is held on immigration.

Democrats also voted against the farm bill due to changes it would make to a food stamps program used by about 40 million Americans, officially known as the Supplemental Nutrition Assistance Program (SNAP).

Members of the Senate Committee on Agriculture, Nutrition and Forestry have said they are writing their own version of the farm bill because the House's proposed SNAP changes could not pass the chamber, where Republicans hold a slim 51-49 majority and passing most legislation requires 60 votes.

 

(Reporting By Amanda Becker
Editing by Chizu Nomiyama and Bill Berkrot)

 

 

 

FOREX-Dollar climbs to five-month peak as euro falls on Italy worries - Reuters News

18-May-2018 10:48:28 PM

• Euro struggles near $1.18 mark, as Italy woes grow
• Dollar rise leaves yen at weakest since January

Updates prices, adds comment, FX table, changes byline, dateline; previous LONDON

By Gertrude Chavez-Dreyfuss

NEW YORK, May 18 (Reuters) - The dollar rose to a five-month high against a basket of major currencies on Friday, helped by weakness in the euro as investors fretted about political uncertainty in Italy.

The dollar index has gained for five straight sessions and is on track for a 1.3 percent weekly gain. It has risen 5 percent since mid-February, with investors betting U.S. interest rates will need to rise further to curb inflation.

Shaun Osborne, chief FX strategist at Scotiabank in Toronto, however, believes the dollar's rally was more about extreme short positioning that needed to unwind.
"We continue to view dollar gains as a temporary issue reflecting excessive short positioning and concerns European growth momentum has slowed and may impair the ECB's (European Central Bank) willingness to move away from quantitative easing later this year."

The euro on Friday was headed for its fifth successive weekly decline versus the dollar, its first such fall since 2015.

Europe's single currency has fallen about seven cents in three weeks amid a sharp dollar rally and concerns about the outlook for Italy's next government.

The far-right League and 5-Star Movement have agreed on a governing accord that would slash taxes and ramp up welfare spending.

Ratings agency DBRS warned on Thursday that the economic proposals of the anti-establishment parties could threaten Italy's sovereign credit rating.

In mid-morning trading, the euro fell to a five-month low of $1.1753. It has declined nearly 1.2 percent versus the dollar this week and dropped against the Swiss franc, which typically attracts capital in times of uncertainty.

"The possibility of a eurosceptic government in Rome is shaking investor confidence ... at this point a larger fiscal deficit and greater bond issuance (in Italy) does seem likely," said David Madden, a strategist at CMC Markets.

A founding member of the EU and the euro, Italy accounts for 15.4 percent of eurozone GDP and the Italian parties' hostility toward the European Union is the biggest challenge to the bloc since Britain voted to leave two years ago.

A powerful rally by the dollar is also hurting the euro.

On Friday, the dollar set a fresh four-month high against the yen and was up 0.1 percent, buoyed by a further rise in U.S. Treasury yields that suggests an upbeat outlook for the world's largest economy.

In a note to clients, however, strategists at Citibank said the dollar rally would not last long. They cited the U.S. budget deficit, which is projected to balloon to more than $1 trillion in 2019, and would contribute to a 5 percent drop in the dollar index over the next 12 months.