Tag Archives: PREMTL

World

West African bloc resorts to sanctions over Guinea and Mali coups

Leave a comment

ACCRA, Sept 16 (Reuters) – West Africa’s main regional bloc on Thursday imposed sanctions against the junta in Guinea and those slowing Mali’s post-coup transition – its toughest response yet to a run of military takeovers.

The move was agreed at an emergency summit of the Economic Community of West African States (ECOWAS) in Accra to respond to last week’s putsch in Guinea and perceived slow progress towards constitutional rule in Mali following a coup last year. read more

Regional heads of state decided to freeze the financial assets and impose travel bans on Guinea’s junta members and their relatives, insisting on the release of President Alpha Conde and a short transition.

“In six months elections should be held,” said ECOWAS Commission President Jean-Claude Kassi Brou at a briefing.

The bloc also piled more pressure on Mali’s transitional government, demanding they stick to an agreement to organise elections for February 2022 and present an electoral roadmap by next month, according to the post-summit communique.

Anyone in Mali hindering preparations for the elections faces the same sanctions as those imposed in Guinea, it said.

Leaders who took part in the summit hailed this more hardline stance. West and Central Africa has seen four coups since last year – political upheaval that has intensified concerns about a backslide towards military rule in a resource-rich but poverty-stricken region.

Special forces commander Mamady Doumbouya, who ousted President Alpha Conde, walks out after meeting the envoys from the Economic Community of West African States (ECOWAS) to discuss ways to steer Guinea back toward a constitutional regime, in Conakry, Guinea September 10, 2021. REUTERS/Saliou Samb

Read More

“I welcome the strong actions of the summit to safeguard democracy, peace, security and stability in the subregion,” Senegalese President Macky Sall tweeted.

Coup leaders in Guinea are holding consultations this week with various public figures, groups and business leaders in the country to map a framework for the transition.

Late on Thursday they said they were also expecting a delegation of regional heads of state to visit Conakry for talks on Friday.

Soldiers behind the Sept. 5 coup have said they ousted Conde because of concerns about poverty and corruption, and because he was serving a third term only after altering the constitution to permit it.

Meanwhile the putsch in Mali was largely precipitated by a security crisis, which has seen militants linked to al Qaeda and Islamic State extend their influence across the north and centre of the country.

The new Malian authorities’ pledge to hold presidential and legislative elections early next year has been undermined by their failure to meet various deadlines, including the start of voter roll updates and the presentation of a new constitution.

The transition was dealt a further setback in May when the colonel who led the initial coup, Assimi Goita, ordered the arrest of the interim president and then took over the role himself. read more

Additional reporting by Saliou Samb in Conakry and Bate Felix in Dakar; Writing by Cooper Inveen, Bate Felix and Alessandra Prentice; Editing by Andrew Cawthorne, Marguerita Choy and Grant McCool

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Asian shares stem recent losses, attention on cenbank tapering

Leave a comment

A men wearing a mask walk at the Shanghai Stock Exchange building at the Pudong financial district in Shanghai, China, as the country is hit by an outbreak of a new coronavirus, February 3, 2020. REUTERS/Aly Song

  • Hong Kong gains 1.5% as tech shares rebound
  • Japan and Australia stock markets also up
  • Dollar steady against other majors
  • Oil little changed after week of losses

HONG KONG, Sept 10 (Reuters) – Asian shares rallied on Friday after two days of losses, but were still in a nervous mood as global investors grapple with how best to interpret central banks’ cautious moves to end stimulus, which also left currency markets quiet.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), gained 0.47% in early trading, but is still down around 0.8% compared to last week’s close, in line with the global trend.

Japan’s Nikkei (.N225) rose 0.25%, and U.S. stock futures, the S&P 500 e-minis , were flat.

Australia (.AXJO) gained 0.4% as mining stocks rose after aluminium prices hit multi-year highs, and Chinese blue chips (.CSI300) also advanced 0.5%

But gains were lead by Hong Kong with the local benchmark (.HSI) rebounding 1.5% having fallen over 2% the day before when Chinese tech stocks took another battering after authorities called gaming firms in for a word. But traders are still cautious about buying too much of the dip.

“At some point in time investors will say actually this is the right price, it’s not going to go to zero,” said John Lau, head of Asian equities and a senior portfolio manager at SEI, referring to Chinese tech names.

“I think most investors will wait until the dust settles and see whether is there is enough clarity before they can act, at this point in time its extremely difficult.”

Asian gains followed a wobbly Thursday when markets had struggled to gain clear direction.

Reaction to the European Central Bank saying over the coming quarter it would slow emergency bond purchases implemented during the COVID-19 pandemic was constrained by the ECB refraining from detailing how it plans to end its 1.85-trillion-euro Pandemic Emergency Purchase Programme. read more

“Risk sentiment flip-flopped through the overnight session, initially reacting positively to the ECB meeting and evidence of ongoing strength in the U.S. labour market. However, U.S. equities ended in the red, likely reflecting concerns about the timing of central bank tapering and ongoing Delta woes,” said analysts at ANZ.

The Dow Jones Industrial Average (.DJI) fell 0.43%, the S&P 500 (.SPX) lost 0.46%, and Nasdaq Composite (.IXIC) dropped 0.25%.

Investors normally interpret better employment figures as a sign the Federal Reserve is less likely to delay trimming its massive asset purchases, which have been supporting share prices in recent months.

In addition, Federal Reserve Bank Governor Michelle Bowman added her voice to the growing number of policymakers who say the weak August jobs report likely won’t throw off the central bank’s plan to trim its $120 billion in monthly bond purchases later this year. read more

In currency markets, the euro was flat in Asian hours at $1.1820, after the ECB announcement helped it stem a few days of losses, as it fell off its month high set at the end of last week.

The dollar was also little changed against a basket of peers but on course for nearly a 0.5% weekly rise.

The yield on benchmark 10-year Treasury notes edged up to 1.307% compared with its U.S. close of 1.3%.

U.S. crude dipped 0.1% to $68 a barrel. Brent crude fell 0.15% to $71.34 per barrel.

Editing by Lincoln Feast

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Asian shares rise on dovish Fed chair, oil up as hurricane batters Louisiana

Leave a comment

A man wearing a protective face mask, following an outbreak of the coronavirus, talks on his mobile phone in front of a screen showing the Nikkei index outside a brokerage in Tokyo, Japan, February 26, 2020. REUTERS/Athit Perawongmetha/File Photo

HONG KONG, Aug 30 (Reuters) – Asian shares started the week with gains and the dollar was not far off two-week lows after U.S. Federal Reserve Chairman Jerome Powell struck a more dovish tone than some investors expected in long-awaited speech on Friday.

Oil prices rose, meanwhile, after energy firms suspended production as Hurricane Ida slammed into the U.S.’ southern coast.

Japan’s Nikkei (.N225) rose 0.9% soon after the bell, and MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) gained 0.32% in early trading before Chinese markets had opened.

Australia (.AXJO)climbed 0.39% and Korea’s Kopsi (.KS11) gained 0.54%.

U.S. stock futures, the S&P 500 e-minis , were barely moved, up 0.04%.

Investors had been waiting to see whether Powell, who was speaking at a symposium in Jackson Hole, Wyoming, would give a clear indication of his views on timing of the central bank’s tapering of asset purchases or hiking interest rates to start removing monetary stimulus.

However, in his prepared remarks, he offered no indication on cutting asset purchases beyond saying it could be “this year”, causing the S&P 500 (.SPX) and the Nasdaq (.IXIC) to close last week at new record highs. read more

The next big event on traders’ calendars is U.S. nonfarm payroll figures for August due to be published Friday, as Powell has suggested an improvement in the labour market is one major remining prerequisite for action.

“A strong payrolls print could instigate a debate for a September tapering start,” Rodrigo Catril, senior FX strategist at NAB, said in a note.

The absence of a timetable for tapering caused U.S. benchmark Treasuries and the dollar to slip, and both trends continued on Monday morning in Asia.

The yield on benchmark 10-year Treasury notes was 1.3054% compared with its U.S. close of 1.312%, and the dollar index which measures the greenback against a basket of currencies was around a two week low.

Investors in China, in contrast, are watching data this week to see whether they will indicate policymakers are more likely step up easing measures.

Purchasing manager surveys for manufacturing and services are both due this week, with traders waiting to see whether a trend towards slowing growth will continue, a shift that has not been helped by recent localised movement restrictions to cope with an increase in cases of the Delta variant of the new coronavirus.

“We expect both the manufacturing and services PMIs to moderate in August, given the widespread Delta variant and strict lockdown,” said Barclays analysts in a note.

“With slowing growth momentum and dovish signals from the (People’s Bank of China) meeting this week, we expect more easing, but still at a measured pace”

Oil was also in focus after energy firms suspended 1.74 million barrels per day of oil production in the U.S. Gulf of Mexico as Hurricane Ida slammed into the Louisiana coast as a Category 4 storm. read more

U.S. crude rose 0.86% to $69.34 a barrel. Brent crude rose 1.25% to $73.38 per barrel.

Gold was slightly higher, with the spot price gold was traded at $1,817.7863 per ounce, up 0.07%.

Editing by Lincoln Feast.

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Asia stocks fragile amid growth worries, dollar in demand

Leave a comment

  • Asian stock markets : https://tmsnrt.rs/2zpUAr4
  • Nikkei bounces after suffering steep losses last week
  • Flash PMIs to show impact of Delta on manufacturing
  • Dollar holds near 10-mth highs, awaits Powell take on tapering
  • Oil prices find support after worse week in 9 months

SYDNEY, Aug 23 (Reuters) – Asian share markets were trying to pick up the pieces on Monday following last week’s thrashing as coronavirus concerns showed little sign of abating, while safe-haven flows benefited the dollar ahead of a key update on U.S. monetary policy.

A raft of “flash” manufacturing surveys for August out on Monday will offer an early indication of how global growth is faring in the face of the Delta variant, with analysts expecting some slippage and especially in Asia.

Concerns over China’s economy have only intensified in recent weeks, while Beijing’s regulatory crackdown on the tech sector delivered a double blow to markets.

More than $560 billion was wiped from Hong Kong and mainland China exchanges last week as funds fretted on which sectors regulators might target next. read more

The impact was all too evident in MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) which sank 4.8% last week to a nine-month trough. Early Monday, it had limped 0.2% higher but the gains looked fragile.

The rot spread to Japan where the Nikkei (.N225) shed 3.4% last week to its lowest since January. Bargain hunting helped the index bounce 1.2% early Monday.

“Following a strong V-shaped recovery, there are many signs of slower growth,” says BofA’s chief investment strategist Michael Hartnett.

“The U.S. yield curve is at a one-year low, emerging markets are negative YTD and both copper and oil are down double digits from recent highs.”

He expects negative returns for stocks and credit in the second half of this year and suggests investors own defensive quality.

The spread of the Delta variant also has the potential to upset the timing of the U.S. Federal Reserve’s tapering plans.

Dallas Federal Reserve President Robert Kaplan, a well-known hawk, on Friday said he might reconsider the need for an early start to tapering if the virus harms the economy. read more

That adds an extra frisson of uncertainty to Fed Chair Jerome Powell’s speech at Jackson Hole this week, which has had to be moved online because of pandemic restrictions. read more

“Our base case is that the FOMC will announce a taper in September if the August non‑farm payrolls is strong,” said Joseph Capurso, head of international economics at CBA.

“We anticipate the taper will be implemented in October or November, though the recent increase in Covid infections and deaths in parts of the U.S. may give Powell pause.”

That is in market contrast to the European Central Bank which is under pressure to add more stimulus, giving the dollar a leg up on the euro.

“Unlike the Fed, we do not expect the ECB to shift away from its ultra‑dovish monetary policy stance,” said Capurso. “We expect EUR to decline to a low of $1.12 in Q1 2022, before gradually appreciating.”

The single currency was trading at $1.1697 , after losing 0.8% last week to touch 10-month lows at $1.1662. That in turn helped the dollar index to a 10-month peak at 93.734 , and it was last trading firm at 93.507.

The dollar made large gains on commodity and emerging market currencies, and turned higher on the Chinese yuan.

It has been more restrained against the Japanese yen at 109.84 , which is also benefiting from safe haven flows.

Global growth jitters took a heavy toll on commodities last week, with base metals, bulk resources and oil all falling.

Gold was steadier at $1,777 , following a one-day plunge earlier in August.

Oil had suffered its sharpest week of losses in more than nine months as investors anticipated weakened fuel demand worldwide due to a surge in COVID-19 cases.

Early Monday, Brent had edged up 37 cents to $65.55 a barrel, while U.S. crude added 27 cents to $62.41.

Editing by Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Asian shares fall, dollar gains after Fed minutes

Leave a comment

HONG KONG, Aug 19 (Reuters) – Asian shares fell on Thursday while the dollar reached multi-month highs against peers, after minutes from the U.S. central bank’s last meeting showed the increasing prospect of reduced monetary stimulus this year.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dropped 0.63%, heading back towards 2021 lows set last month, with Chinese blue chips (.CSI300) down 0.21%, Australia (.AXJO) falling 0.54% and Hong Kong off 0.45%.

Japan’s Nikkei (.N225) dropped 0.37%.

Carlos Casanova, senior Asia economist at UBP, said the main drivers for markets this week were weaker economic activity data in China, which had prompted many economists to downgrade forecasts, the situation in Afghanistan and the Fed minutes.

The minutes from the July policy meeting published Wednesday fleshed out the Fed’s thinking on when to taper its monthly bond purchases, and showed officials expected they could ease stimulus this year if the economy continues to improve.

However, officials noted the spread of the COVID-19 Delta variant could temporarily delay the full reopening of the economy and restrain a jobs market that looms large in the Fed’s thinking. read more

“The minutes show a Fed that is pretty split on most things, but recognises that we are getting much closer to the point of tapering,” wrote ING analysts in a note.

Focus now shifts to the Fed’s annual research conference in Jackson Hole, Wyoming, next week for any read about the central bank’s next steps.

“We will have more visibility about the outlook for the U.S. 10-year yields from September onwards, there are some upside risks that they could go to 1.6% to 1.8% from the current levels, and for Asia Pacific that means outflows,” said Casanova.

U.S. Treasury yields were little changed in Asian trading. Benchmark 10-year notes were last at 1.2617% having risen to as high as 1.300% before the minutes were disclosed.

However, the greenback reacted more strongly with the dollar index , which measures the currency against the euro, yen and four other rivals, climbing to 93.347, its highest since April 1.

Gains were particularly strong versus risk-friendly currencies, and the dollar rose to nine-month highs versus the euro and Australian and New Zealand dollars.

Wall Street closed lower after the minutes with the Dow Jones Industrial Average (.DJI) ending the day down 1.07%, while the S&P 500 (.SPX) lost 1.07% and the Nasdaq Composite (.IXIC) fell 0.89%.

The stronger dollar dragged on gold. The spot price dropped 0.15%.

Oil extended losses into a sixth day on Thursday, hovering near three-month lows. ANZ analysts said rising U.S. inventories had fuelled fears of weaker demand amid a spike in COVID-19 cases worldwide. 0/R

Brent crude was down 85 cents or 1.3% at $67.38 a barrel, U.S. West Intermediate crude lost 1.4% to $64.53 a barrel.

Reporting by Alun John in Hong Kong. Additional reporting by Pete Schroeder in Washington; Editing by Sam Holmes

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Asian shares fall as Delta fears eclipse Wall Street uptick

Leave a comment

HONG KONG, Aug 12 (Reuters) – Asian shares failed to follow a strong close on Wall Street with fears about the spread of the Delta variant of the coronavirus weighing on sentiment even as tame U.S. inflation eased fears the Federal Reserve would rush to reduce its economic support.

That data also caused dollar to retreat against most major currencies and U.S. Treasury yields to edge down overnight though both were steadier in Asian hours.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dropped 0.25% in early trading, dragged by a 0.24% decline in Chinese bluchips (.CSI300). The Hong Kong benchmark (.HSI) fell 0.2% while Australian shares (.AXJO) were largely flat and Japan’s Nikkei (.N225) rose 0.35%.

U.S. stock futures were little changed, with S&P 500 e-minis down 0.02%.

The weaker performance by Asian benchmarks contrasts with the situation elsewhere in the world. On Wednesday the MSCI all-country index (.MIWD00000PUS), a gauge of stocks across the globe, hit a record high.

In comparison the Asian benchmark is down over 10% from its February peak.

“The money is just in the U.S. and European markets right now, and that’s our preferred market too,” said Daniel Lam, senior cross-asset strategist, Standard Chartered Wealth Management.

Lam pointed to a strong U.S. earning season and Europe’s high vaccination rates meaning the pace of reopening has been less harmed by the spread of the Delta variant of the new coronavirus, and “recent China regulation blues” in sectors such as education and technology.

“I think that the rotation from emerging markets to Western markets could continue in the near-term,” said David Chao, Global Market Strategist, Asia Pacific (ex-Japan) at Invesco.

“The APAC region’s zero-tolerance policy coupled with a relatively low vaccination rate has led to vicious lockdown-release cycle which could continue for a while.”

The Dow Jones Industrial Average (.DJI) and S&P 500 (.SPX) closed at record levels on Wednesday, after the U.S. Labor Department reported the largest drop in month-to-month inflation in 15 months, easing concerns about the potential for runaway inflation.

U.S. policymakers are publicly discussing how and when they should begin to trim the massive asset purchases launched by the Fed last year to stabilise financial markets and support the economy through the coronavirus pandemic. read more

The easing of fears about inflation reduces the pressure to taper those asset purchases soon rather than later in the year, after strong employment figures last week had given ammunition to those with a more hawkish tilt.

As a result, U.S. Treasury yields fell on Wednesday across most maturities, though trading was choppy.

Moves were more muted in Asian hours. Yields on benchmark 10-year Treasury notes was last 1.3455% compared with its U.S. close of 1.359%.

The dollar hovered below a four-month peak against major peers on Thursday, after retreating overnight as yields dropped.

“I expect the dollar to be range-bound on the recent strong unemployment and tempered CPI data,” said Invesco’s Chao.

Oil largely held onto gains from earlier in the week, U.S. crude dipped 0.03% to $69.23 a barrel. Brent crude was flat at $71.43 per barrel.

Gold also held on to overnight gains on Thursday, with the spot price down 0.1% having risen 1.3% in the previous session. Easing of fears about higher interest rates would typically help the non-interest bearing asset.

Editing by Lincoln Feast

Our Standards: The Thomson Reuters Trust Principles.

Read original article here

Business

Asia stocks spooked by sudden slide in gold

Leave a comment

  • Asian stock markets : https://tmsnrt.rs/2zpUAr4
  • Gold drops more than 4% at one stage, oil prices slide
  • Strong U.S. jobs report brings Fed tapering nearer
  • Rising Treasury yields lift dollar to 4mth high on euro

SYDNEY, Aug 9 (Reuters) – Asian shares wobbled on Monday amid sharp losses in gold and oil prices, while the dollar held near four-month highs after an upbeat U.S. jobs report lifted bond yields.

Sentiment was shaken by a sudden dive in gold as a break of $1,750 triggered stop loss sales taking it as low as $1,684 an ounce . It was last down 2.2% at $1,723.

Brent sank almost 2% on concerns the spread of the Delta variant would temper travel demand.

Holidays in Tokyo and Singapore made for thin trading conditions, leaving MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) down 0.1%.

Japan’s Nikkei (.N225) was shut but futures were trading just below Friday’s close. Nasdaq futures slipped 0.5% and S&P 500 futures 0.3%.

Chinese trade data out over the weekend undershot forecasts, though figures due later Monday should show inflation is no barrier to more policy stimulus. read more

The U.S. Senate was closer to passing a $1 trillion infrastructure package, though a single Republican lawmaker was holding up a vote on Sunday. read more

Investors were still assessing whether Friday’s strong U.S. payrolls report would take the Federal Reserve a step nearer to winding back its stimulus.

“There is not a lot of disagreement on a taper announcement coming sometime between September-December followed by actual tapering sometime between November and January,” said Rodrigo Catril, a senior FX strategist at NAB.

However, the pace of tapering was still up in the air and would decide when an actual rate hike came, he said. The Fed is currently buying $120 billion of assets a month, so a $20 billion taper would end the programme in six months whilst a $10 billion tapering approach would take a year.

The spread of the Delta variant could argue for a longer taper with U.S. cases back to levels seen in last winter’s surge with more than 66,000 people hospitalised.

Figures for July CPI due this week are also expected to confirm inflation has peaked, with prices for second hand vehicles finally easing back after huge gains.

There are four Fed officials speaking this week and will no doubt offer their own take on tapering.

In the meantime, stocks have been mostly underpinned by a robust U.S. earnings season. BofA analysts noted S&P 500 companies were tracking a 15% beat on second quarter earnings with 90% having reported.

“However, companies with earnings beats have seen muted reactions on their stock price the day following earnings releases, and misses have been penalized,” they wrote in a note.

“Guidance is stronger than average but consensus estimates for two-year growth suggest a slowdown amid macro concerns.”

Financials firmed on Friday as a steeper yield curve is seen benefiting bank earnings, while also penalising the tech sector where valuations are sky high.

Yields on U.S. 10-year notes were up at 1.30% in the wake of the jobs report, having hit their lowest since February last week at 1.177%.

That jump gave the dollar a broad lift and knocked the euro back to $1.1744 , its lowest since April. The dollar likewise climbed to 110.28 yen and away from last week’s trough of 108.71.

That took the U.S. currency index up to 92.882 and nearer to the July peak of 93.194.

Oil prices eased further after suffering their largest weekly drop in four months amid worries coronavirus travel restrictions would threaten bullish expectations for demand.

Brent fell $1.30 to $69.40 a barrel, while U.S. crude lost $1.29 to $66.99.

Editing by Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles.

Read original article here