Stock & Commodities Related News.

US STOCKS-Wall St set to open lower as auto tariff threat weighs - Reuters News

24-May-2018 09:16:40 PM

• U.S. launches auto imports probe, adds to trade jitters
• L Brands, NetApp fall on weak forecasts
• Medtronic, Williams-Sonoma gain after results
• Futures dip: Dow 0.23 pct, S&P 0.16 pct, Nasdaq 0.17 pct

Adds comment, adds details, updates prices

By Medha Singh

May 24 (Reuters) - U.S. stocks were set to open lower on Thursday as rising concerns over U.S. trade protectionism, this time around car imports, overshadowed optimism that the Federal Reserve may be more tolerant of rising inflation than previously expected.

The Trump administration launched a national security probe into car and truck imports on Wednesday that could lead to new tariffs, with Beijing calling the move an "abuse" of the clauses and saying it would defend its interests.

The decision added to jitters over the prospects of trade negotiations with China, reignited after Trump called for "a different structure" to any trade deal.

Shares of European and Asian automakers skidded on the tariff possibility, while U.S. automakers inched marginally higher premarket.

Ford was up 0.2 percent and General Motors gained 0.4 percent. U.S.-listed shares of Fiat fell 2 percent, while those of Ferrari dipped 0.6 percent.

"The markets are adjusting now with lots of uncertainties, with China, North Korea, (and the prospect of) a trade war that could spill over to other parts of the economy and the world," said Adam Sarhan, chief executive of 50 Park Investments in New York.

By 8:50 a.m. ET, Dow e-minis were down 56 points, or 0.23 percent. S&P 500 e-minis were down 4.5 points, or 0.16 percent and Nasdaq 100 e-minis were down 11.5 points, or 0.17 percent.

Wall Street posted small gains on Wednesday after minutes from the Fed's latest meeting suggested higher inflation may not result in faster interest rate hikes.

Shares of Victoria's Secret-owner L Brands fell 6 percent, while those of data storage equipment maker NetApp dropped 4.6 percent following weak forecasts.

Best Buy Co slipped 5.5 percent as investors focused on slowing online sales growth over the better-than-expected quarterly comparable sales.

Williams-Sonoma jumped 11.3 percent after the Pottery Barn owner posted strong quarterly results and gave a healthy forecast.

Shares of Medtronic rose 1.5 percent after its quarterly profit topped Wall Street estimates on higher demand for heart valves and diabetes devices.

 

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

 

 

 

UPDATE 5-Oil slips further below $80 a barrel as focus on OPEC intensifies - Reuters News

24-May-2018 09:29:19 PM

• U.S. crude, gasoline inventories rise unexpectedly -EIA
• Brent-WTI spread near widest in three years
• OPEC set to meet next month to discuss policy

Updates prices

By Amanda Cooper

LONDON, May 24 (Reuters) - Oil prices recorded their largest one-day drop in two weeks on Thursday, with expectations building that OPEC could wind down an output deal that has been in place since the start of 2017 due to concerns about supplies from Venezuela and Iran.

Benchmark Brent futures were down $1.04 at $78.76 a barrel by 1312 GMT, its largest one-day fall since May 8, while U.S. crude futures dropped $1.05 to $70.79 a barrel.

"This discussion about possible OPEC supply increases after the June meeting has put a brake on the oil price for the time being, so $80 is a big hurdle to overcome," Commerzbank strategist Carsten Fritsch said.

"If prices get above there, that will further intensify and increase the likelihood that OPEC will do something .. It's going to be very difficult to overcome this level on a sustainable basis before the OPEC meeting."

The Organization of the Petroleum Exporting Countries may decide in June to lift output to make up for reduced supply from Iran and Venezuela and in response to concerns from Washington about a rally in oil prices, OPEC and oil industry sources told Reuters.

Venezuela's output has fallen amid an economic crisis, while Iran's supply is threatened by U.S. sanctions.

These factors have helped push Brent and WTI to multi-year highs, with Brent breaking through an $80 threshold last week for the first time since November 2014.

OPEC and some non-OPEC major oil producers, which are scheduled to meet in Vienna next month, previously agreed to curb their combined output by about 1.8 million barrels per day (bpd) to boost oil prices and clear a supply glut.

Global inventories have been broadly falling. But commercial U.S. crude inventories rose by 5.8 million barrels in the week to May 18, beating analyst expectations for a drop of 1.6 million barrels, the Energy Information Administration (EIA) said on Wednesday.

The premium of Brent crude over U.S. West Texas Intermediate futures neared $8 a barrel, close to its widest in three years.

Inventories of gasoline rose by 1.9 million barrels in the same week, just ahead of the Memorial Day holiday in the United States which typically marks the start of the summer driving season.

Refinery runs fell 7,000 bpd to 16.63 million bpd, 3.8 percent below the same week last year, according to the EIA data.

 

(Additional reporting by Ahmad Ghaddar in London, Jane Chung in Seoul and Jessica Jaganathan in Singapore
Editing by Adrian Croft and Edmund Blair)

 

 

 

PRECIOUS-Gold claws higher on soft dollar, renewed trade tensions - Reuters News

24-May-2018 08:36:42 PM

• Fed minutes depict a less aggressive rate hike approach
• Dollar hits over one-week low vs yen
• Platinum to continue trading at discount to gold -analysts

(Adds technical comments on platinum, updates prices)

By Eric Onstad

LONDON, May 24 (Reuters) - Gold prices rose for a second session on Thursday, lifted by a weaker dollar, worries about renewed trade tensions and volatile emerging markets.

Spot gold was up 0.3 percent at $1,296.70 per ounce by 1225 GMT, after gaining nearly 0.2 percent in the previous session.

U.S. gold futures for June delivery added 0.5 percent to $1,296.20 per ounce.

Gold's safe haven appeal was burnished after the U.S. launched a national security investigation into car and truck imports that could lead to new tariffs similar to those it imposed on steel and aluminium in March.

"We have a whole host of potential sources of support for gold. Trade spats are reoccuring and there's a focus on troubled emerging markets," Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, said.

Turkey has been in the spotlight and the lira weakened more than 2 percent after a huge emergency interest rate hike failed to stem its problems.

"The relief rally in the Turkish lira yesterday seems to have only managed to pause the slide but not reverse it," Hansen said.

Gold was also buoyed from a weaker dollar index, which lost momentum after U.S. President Donald Trump's threat to impose new tariffs and minutes of the Federal Reserve's last policy meeting were seen as dovish.

Higher U.S. rates tend to boost the dollar and drag on greenback-denominated gold, but the metal can also be used as a hedge against rising inflation.

Hansen said it was worrying that the positive drivers for gold had not pushed it further towards key levels of $1,300 and $1,305, which need to be broken to resume the upside.

"It we get there that's going to force a reaction from funds, but we need a spark and so far gold hasn't managed to break out of its range."

Spot gold has shed 5 percent since touching $1,365.23 on April 11, the highest in nearly three months.

Among other precious metals, silver gained 0.8 percent to $16.55 an ounce, platinum climbed 0.9 percent to $907.40 an ounce and palladium shed 0.5 percent to $972 an ounce.

Stéphanie Aymes, head of technical analysis at Societe Generale, said in a note that platinum has rebounded from a multi-year trend at $890 and was now approaching a down sloping channel near $924/31.

"A cross above this is needed for signs of rebound."

 

(Additional reporting by Karen Rodrigues and Apeksha Nair in Bengaluru
Editing by Alexander Smith and Jason Neely)

 

 

 

CBOT Trends-Wheat up 4-8 cents, corn up 1-3, soybeans up 8-10 - Reuters News

24-May-2018 09:28:35 PM

CHICAGO, May 24 (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 Thursday.

 

WHEAT - Up 4 to 8 cents per bushel

• Wheat higher on technical buying and dry weather in parts of Canada, Australia and Russia that has fueled expectations of tightening global supplies after record inventories forecast for 2017/18. The CBOT July contract reached $5.42, its highest since Aug. 2017.
• The U.S. Department of Agriculture reported export sales of U.S. wheat in the week to May 17 at 452,300 tonnes (old and new crop years combined), in line with trade expectations.
• Russia's Sovecon agriculture consultancy cut its 2018 Russian wheat harvest forecast to 77 million tonnes, from 78.2 million previously, citing weather conditions in Siberia.
• CBOT July soft red winter wheat last up 8-1/4 cents at $5.39-1/4 per bushel. K.C. July hard red winter wheat last traded up 6-3/4 cents at $5.58-1/2 and MGEX July spring wheat  was up 4-1/2 cents at $6.46-1/2 a bushel.

CORN - Up 1 to 3 cents per bushel

• Corn higher following wheat and corn. The CBOT July contract reached $4.12-1/4, its highest since July 2017, and new-crop December reached $4.29-1/2, matching its life-of-contract high.
• The USDA reported export sales of U.S. corn in the week to May 17 at 1,127,700 tonnes (old and new crop years combined), in line with trade expectations.
• Through its daily reporting system, the USDA said private exporters reported cancellations of 132,000 tonnes of U.S. sorghum sold to unknown destinations for 2017/18 delivery.
• CBOT July corn last traded up 2-1/2 cents at $4.11 a bushel.

SOYBEANS - Up 8 to 10 cents per bushel

• Soybeans head higher for a fifth straight session on expectations of increased export demand from China, the world' top soy buyer, as trade tensions ease.
• Through its daily reporting system, the USDA said private exporters reported sales of 264,000 tonnes of U.S. soybeans to unknown destinations for 2018/19 delivery.
• The USDA's weekly export sales report showed net cancellations of 139,500 tonnes of old-crop U.S. soybeans, and net sales of 6,900 tonnes of new-crop soybeans.
• The USDA reported weekly export sales of U.S. soymeal at 196,900 tonnes (old and new crop years combined).
• Brazilian soybean processors say their operations have been affected by nationwide truckers protests against high diesel prices. Soy crushers association Abiove said on Wednesday that some plants have suspended operations as beans are not being delivered at the sites.
• CBOT July soybeans last up 9-1/4 cents at $10.48-1/2 per bushel.

 

(Reporting by Julie Ingwersen)

 

 

 

VEGOILS-Palm rises to seven-week peak on stronger soyoil, weaker ringgit - Reuters News

24-May-2018 07:11:29 PM

• Palm hits 2,498 rgt/T, highest since April 9
• Crude oil prices supporting palm -trader
• Palm up 1.7 pct this week

Updates with closing prices

By Emily Chow

KUALA LUMPUR, May 24 (Reuters) - Malaysian palm oil futures rose to a seven-week high on Thursday evening, tracking gains in U.S. soyoil and supported by a weaker ringgit.

Palm oil prices typically rise on a weaker ringgit, its currency of trade, because it makes the edible oil cheaper for foreign buyers. The ringgit weakened as much as 0.2 percent against the dollar before closing the day with a 0.03 percent gain at 3.9790.

The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 0.8 percent at 2,492 ringgit ($626.29) a tonne at the end of the trading day.

It earlier climbed to 2,498 ringgit, matching the intraday high of April 9. Palm is also up 1.7 percent for the week so far, in line for a third straight week of gains.

Trading volume stood at 41,918 lots of 25 tonnes each at the close.

"The market is up on soybean oil's upside, while crude oil prices are also still holding at high levels," one Kuala Lumpur futures trader said, referring to soyoil on the U.S. Chicago Board of Trade.

"The ringgit is also weaker and is expected to weaken further over the week on the dollar's strength."

Palm, which can be used as feedstock to produce biodiesel, has been tracking movements in crude oil prices in recent sessions.

While oil prices edged down on Thursday on the back of higher OPEC production, benchmark Brent futures are still trading at more than three-year highs of $79.

Palm oil is affected by movements in rival edible that compete in the global vegetable oils market. The Chicago July soybean oil contract gained 0.6 percent on Wednesday and was last up 1 percent on Thursday.

In other related oils, September soybean oil on China's Dalian Commodity Exchange was up 0.3 percent, while the Dalian September palm oil contract rose by 0.4 percent.

 

 

 

FOREX-Euro edges up as dollar surge loses steam on Fed minutes - Reuters News

24-May-2018 08:19:53 PM

• Euro hurt by euro zone growth slowdown, Italian politics
• Fed minutes show no haste in rate hikes
• Dollar falls more than 1 pct vs yen over last 2 days

Adds context, quotes. Updates figures

By Tom Finn

LONDON, May 24 (Reuters) - The euro rose off a six-month low on Thursday as the dollar faltered but concerns over an economic slowdown in Europe and political risks in Italy continued to act as a brake.

The euro is set to be down for a sixth consecutive week against the dollar -- the longest weekly losing streak since January 2015 -- hobbled by the surging U.S. currency and worries over a deepening economic slowdown in the currency bloc.

The single currency rose to $1.1746, off the low of $1.1676 hit on Wednesday, and was heading for its biggest daily gain in two weeks.

But that was largely because the recent dollar rally lost some momentum following dovish-looking minutes of the Federal Reserve's last policy meeting and the threat by U.S. President Donald Trump to impose new tariffs on imported cars.

"For now this is a dollar story; a pause in the greenback which is quite technical in fact. There is this widespread feeling that the dollar has stalled as profits are taken following a very decent run," said Ulrich Leuchtmann, head of FX strategy at Commerzbank.

The euro's gains were also capped by economic and political worries in Europe. The leader of the far-right League, a partner in Italy's planned coalition government, insisted on Thursday that eurosceptic economist Paolo Savona should be named economy minister.

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

It fell to near three-month lows against the franc on Wednesday as fresh data indicated a slowdown in European business activity.

The euro currency was soft against the yen, hitting a nine-month low of 128.01 yen.

The European Central Bank's chief economist said on Thursday there are "clouds" on the horizon, including plans by Italy's would-be government to loosen fiscal policy and roll back a pension reform, and international trade tension.

"In the absence of eurozone economic data finding another gear this side of summer, the chances of a hawkish ECB-led rally in the single currency look pretty bleak," said ING FX analyst Viraj Patel, in a note.

The dollar's fall appeared to accelerate after the minutes of the Fed meeting.

While most policymakers thought it likely another U.S. interest rate increase would be warranted - in line with market expectations - the minutes showed the Fed would tolerate inflation rising above its goal for a time.

Trump opened a front in the trade war on Wednesday by considering new tariffs, this time on cars, just days after Washington agreed with Beijing to put "on hold" its plan to impose tariffs on $150 billion worth Chinese goods.

Against the yen, the dollar shed 0.7 percent to 109.3 yen, a day after it experienced its biggest fall in nearly three months.

The safe-haven Swiss franc also ticked up 0.2 percent to 0.9914 franc to the dollar. It hit a three-week high of 0.9894 per dollar on Wednesday.

(Editing by Keith Weir and David Stamp)

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)