Philippines raises USD 170 million via T-bill auction

MANILA, Nov 28 (Reuters) – Following are the results of the Philippine Bureau of the Treasury’s (BTr) auction of T-bills on Monday:

* BTr awards total of 9.62 billion pesos (USD 169.46 million) vs 15 billion pesos offer

* BTr awards 5 billion pesos of 92-day T-bills at 4.205% avg yield

* BTr awards 2.1 billion pesos of 183-day T-bills at 4.92% avg yield

* BTr awards 2.52 billion pesos of 365-day T-bills at 5.15% avg yield

* Details are on the BTr’s website

(USD 1 = 56.77 Philippine pesos)

(Reporting by Enrico Dela Cruz; Editing by Ed Davies)

Gold dips as dollar ticks up on China COVID risks

Nov 28 (Reuters) – Gold prices slipped on Monday, as investors preferred the safe-haven dollar amid protests in several Chinese cities over the country’s strict COVID-19 restrictions.

Spot gold was down 0.3% at USD 1,750.20 per ounce, as of 0745 GMT. US gold futures fell 0.2% to USD 1,750.10.

The dollar index was up 0.2%, making the greenback-priced bullion more expensive for buyers holding other currencies.

“Gold prices have been tracking the US dollar’s moves closely, and increased uncertainty from the growing unrest in China seems to be underpinning the dollar this morning,” said IG Market strategist Yeap Jun Rong.

Hundreds of demonstrators and police clashed in Shanghai on Sunday night as protests over China’s stringent COVID restrictions flared for a third day and spread to several cities in the wake of a deadly fire in the country’s far west.

Meanwhile, China on Monday reported a fifth straight daily record of new local coronavirus cases.

People may be shifting to defensive assets considering the COVID situation in China, but the dollar’s gains are currently overshadowing gold’s safe-haven status, Yeap said.

Next on investor radar is Federal Reserve Chair Jerome Powell’s Wednesday speech on the US economy and labour market for clues on the monetary policy outlook.

A majority of market participants are pricing in a 50 basis-point increase at the Fed’s December meeting after minutes of the last policy meeting signalled a slower pace of hikes.

Higher interest rates increase the opportunity cost of holding the non-yielding metal.

The ADP National Employment report and the US Labor Department’s nonfarm payrolls data due later this week will also be scanned for their likely influence on the Fed’s rate-hike strategy.

Spot gold may revisit its Nov. 23 low of USD 1,727.50 per ounce, according to Reuters technical analyst Wang Tao.

Silver slipped 1.5% to USD 21.27, platinum rose 0.1% to USD 981.77 and palladium lost 0.1% to USD 1,851.56.

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Uttaresh.V)

Dollar gains, yuan slides as China’s COVID unrest spooks markets

SINGAPORE, Nov 28 (Reuters) – The dollar climbed on Monday as protests against COVID restrictions in China rattled financial markets, sending the yuan sliding and pushing nervous investors toward the safe-haven greenback.

The COVID protests have flared across China and spread to several cities in the wake of a deadly fire in Urumqi in the country’s far west, with hundreds of demonstrators and police clashing in Shanghai on Sunday night.

Worries over the unprecedented wave of civil disobedience in a country where in-person protests are rare, the rising COVID cases, as well as how Beijing will react to the situation kept investors on edge.

The offshore yuan fell to an over two-week low in Asian trading, and was last roughly 0.6% lower at 7.24 per dollar.

The Australian dollar, often used as a liquid proxy for the yuan, slid more than 1% to USD 0.6687. The kiwi slumped 0.65% to USD 0.62065.

“The pushback from residents that we’ve been seeing, obviously the rising tensions and protests … that was something we probably haven’t been expecting to that degree,” said Chris Weston, head of research at Pepperstone.

“We’re really looking at the government response to what’s happening … the government response is so unpredictable, and of course that just means derisking.”

The stringent COVID restrictions have taken a heavy toll on China’s economy, and authorities have implemented various measures to revive growth. On Friday, the People’s Bank of China (PBOC), the nation’s central bank, said it would cut the reserve requirement ratio (RRR) for banks by 25 basis points (bps), effective from Dec. 5.

“If the RRR cut is the only monetary policy tool that the PBOC is going to implement, it may not lead to a significant increase in bank lending,” said Iris Pang, chief economist for Greater China at ING.

“Companies are currently facing weaker retail sales from a higher number of COVID cases and falling home prices from unfinished home projects.”

Elsewhere, the euro fell 0.43% to USD 1.03575, while sterling was down 0.51% at USD 1.2027.

The latest developments in China have put a pause on the US dollar’s decline, which had been softening over the past few weeks on hopes that the Federal Reserve would soon slow its pace of rate hikes – a view that was supported by the November meeting minutes released last week.

Against a basket of currencies, the US dollar index firmed to 106.34, edging away from its recent three-month low of 105.30.

Fed Chair Jerome Powell is due to speak on the outlook for the US economy and the labour market at a Brookings Institution event on Wednesday, which will likely provide more clues on the US monetary policy outlook.

Market expectations of a less hawkish Fed have helped the Japanese yen gain a footing, said Moh Siong Sim, a currency strategist at Bank of Singapore.

The yen was up about 0.5% to 138.46 per dollar.

“The market is thinking that the Fed downshifts to a 50-basis-point rate hike and perhaps going to a pause next year, and that might limit the upside in US (Treasury) yields. And dollar/yen is probably queuing into that sort of idea.”

(Reporting by Rae Wee; Editing by Shri Navaratnam)

Oil falls over USD 2 a barrel as China’s COVID protests fuel demand fears

TOKYO, Nov 28 (Reuters) – Oil futures fell more than USD 2 a barrel on Monday, with WTI hitting an 11-month low, as protests in top importer China over strict COVID-19 curbs fuelled demand concerns.

Brent crude dropped USD 2.16, or 2.6%, to trade at USD 81.47 a barrel at 0230 GMT, after diving to USD 81.16 earlier in the session — its lowest since Jan. 11.

US West Texas Intermediate (WTI) crude slid USD 2.08, or 2.7%, to USD 74.20 a barrel. It fell as far as USD 73.82 earlier — its lowest since Dec. 27, 2021.

Both benchmarks, which hit 10-month lows last week, have posted three consecutive weekly declines. Brent ended the latest week down 4.6%, while WTI fell 4.7%.

“On top of growing concerns about weaker fuel demand in China due to a surge in COVID-19 cases, political uncertainty, caused by rare protests over the government’s stringent COVID restrictions in Shanghai, prompted selling,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

WTI’s trading range is expected to fall to USD 70-USD 75, he said, adding the market could stay volatile depending on the outcome of the OPEC+ meeting and the price cap on Russian oil.

China, the world’s top oil importer, has stuck with President Xi Jinping’s zero-COVID policy even as much of the world has lifted most restrictions.

Hundreds of demonstrators and police clashed in Shanghai on Sunday night as protests over China’s strict COVID restrictions flared for a third day and spread to several cities in the wake of a deadly fire in the country’s far west.

The wave of civil disobedience is unprecedented in mainland China since Xi assumed power a decade ago, as frustration mounts over his zero-COVID policy nearly three years into the pandemic.

“Bearish sentiment is growing in the oil market with mounting concerns over demand in China and a lack of clear signs from oil producers to further cut output,” said Tetsu Emori, CEO of Emori Fund Management Inc.

“Unless OPEC+ agrees on a further reduction of production quota or the United States moves to reload its strategic petroleum reserves, oil prices may be headed further down,” he said.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, will meet on Dec. 4.

In October, OPEC+ agreed to reduce its output target by 2 million barrels per day through 2023.

The next OPEC+ meeting will take into account the condition and balance of the market, Iraq’s state news agency quoted Saadoun Mohsen, a senior official at the country’s state oil marketer SOMO, as saying on Saturday.

Investors also focused on Western plans for a price cap on Russian oil.

Group of Seven(G7) and European Union diplomats have been discussing a price cap on Russian oil of between USD 65 and USD 70 a barrel, with the aim of limiting revenue to fund Moscow’s military offensive in Ukraine without disrupting global oil markets.

But a meeting of European Union government representatives, scheduled for Nov. 25 evening to discuss the issue, was cancelled, EU diplomats said. On Thursday, EU governments were split on the level at which to cap Russian oil prices.

The price cap is due to come into effect on Dec. 5 when an EU ban on Russian crude kicks off.

(Reporting by Yuka Obayashi; Editing by Himani Sarkar and Ana Nicolaci da Costa)

US crude turns positive, Brent pares losses on OPEC+ cut rumors

Nov 28 (Reuters) – Global oil benchmarks pulled back from their lowest levels in nearly a year on Monday, with US crude ending positive, bolstered by talk of an OPEC+ production cut that offset concerns about strict COVID-19 curbs in China, the world’s biggest crude importer.

Price action was volatile. US West Texas Intermediate (WTI) crude settled up 96 cents, or 1.3%, at USD 77.24, after earlier touching its lowest since December 2021 at USD 73.60.

Brent crude also briefly turned positive, but settled down 44 cents, or 0.5%, at trade at USD 83.19 a barrel, having slumped more than 3% to USD 80.61 earlier in the session for its lowest since Jan. 4, 2022.

Both benchmarks have posted three consecutive weekly declines.

“The word on the street is there’s rumor that OPEC+ is already starting to float the idea of a production cut on Sunday,” said Matt Smith, lead oil analyst at Kpler. “That’s helped reverse losses that were caused overnight by Chinese protests.”

Analysts at Eurasia Group suggested in a note Monday that weakened demand out of China could spur the Organization of the Petroleum Exporting Countries and allies including Russia to cut output after reducing supply in October.

“The decision will depend on the trajectory of the oil price when OPEC+ meets and how much disruption is evident in markets because of the EU sanctions,” the group wrote in its note.

OPEC+ will meet on Dec. 4. In October, OPEC+ agreed to reduce its output target by 2 million barrels per day through 2023.

The rumors of a possible cut outweighed an earlier sell-off built on the weak outlook out of China, where hundreds of demonstrators and police clashed on Sunday over strict COVID restrictions that have limited free moment among millions of residents.

China has stuck with President Xi Jinping’s zero-COVID policy even as much of the world has lifted most restrictions.

Speculative buyers also helped reverse early losses, said Robert Yawger, director of energy futures at Mizuho in New York.

“Pretty much every time we have a multiple percentage point move lower, you’ll see the specs come in in the afternoon and buy the dip,” he said.

Group of Seven (G7) and European Union diplomats have been discussing a price cap on Russian oil of between USD 65 and USD 70 a barrel, with the aim of limiting revenue to fund Moscow’s military offensive in Ukraine without disrupting global oil markets, and will meet again on Monday.

However, EU governments were split on the level at which to cap Russian oil prices, with the impact being potentially muted.

The price cap is due to come into effect on Dec. 5 when an EU ban on Russian crude also takes effect.

(Reporting by Nia Williams; Additional reporting by Noah Browning in London, Yuka Obayashi in Tokyo and Mohi Narayan in New Delhi; Editing by Marguerita Choy, Chris Reese and Cynthia Osterman)

Stocks, oil skid as China’s COVID protests roil sentiment

SYDNEY, Nov 28 (Reuters) – Stocks and oil slid sharply on Monday as rare protests in major Chinese cities against the country’s strict zero-COVID curbs raised worries about management of the virus in the world’s second-largest economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan slumped 2.2%, pulled lower by heavy selling in Chinese markets.

Hong Kong’s Hang Seng Index shed 4.16%, China’s CSI300 Index declined 2.22% and the yuan fell in morning trade.

“The market does not like uncertainties that are difficult to price and the China protests clearly fall into this category. It means investors will become more risk-averse,” Gary Ng, Natixis economist in Hong Kong told Reuters.

“The China-linked markets across Asia, such as Australia, Hong Kong, Taiwan and Korea, are more likely to see a larger impact.”

Australia’s benchmark stock index lost 0.56% while its currency was off more than 1%. Japan’s Nikkei stock index was down 0.76%.

South Korea’s KOSPI 200 index retreated 1.35% in early trade and New Zealand’s S&P/NZX50 Index was off 0.42%.

S&P 500 and Nasdaq futures both fell, pointing to possible declines in Wall Street later in the day.

The bigger worries about China’s COVID policies dwarfed any support to investor sentiment from the central bank’s 25 basis point cut to the reserve requirement ratio (RRR) announced on Friday, which frees up about USD 70 billion in liquidity to prop up a faltering economy.

In Shanghai, demonstrators and police clashed on Sunday night as protests over the country’s stringent COVID restrictions flared for a third day.

There were also protests in Wuhan, Chengdu and parts of the capital Beijing as COVID restrictions were put in place in an attempt to quell fresh outbreaks.

“There is a tail risk that the road to living with COVID is too slow, surging COVID cases fuels more protests and social unrest further weakens the economy are market concerns,” said Robert Subbaraman, Nomura’s Asia ex-Japan, chief economist.

“Things are very fluid. Protests could also be the catalyst that leads to a positive outcome in leading the government to set a clearer game plan on how the country is going to learn to live with COVID, setting a more transparent timetable, and accelerating China’s move to living with COVID.”

The dollar extended gains against the yuan, rising 0.87%.

The COVID rules and resulting protests are creating fears the economic hit for China will be greater than expected.

“Even if China is on a path to eventually move away from its zero-COVID approach, the low level of vaccination among the elderly means the exit is likely to be slow and possibly disorderly,” CBA analysts said on Monday. “The economic impacts are unlikely to be small.”

China’s case numbers have hit record highs, with nearly 40,000 new infections on Saturday.

Fears about Chinese economic growth also hit commodities in Asia trade.

US crude dipped 2.81% to USD 74.14 a barrel and Brent crude fell 2.57% to USD 81.48 per barrel, as the COVID protests in top importer China fuelled demand worries.

Yields on benchmark 10-year Treasury notes rose to 3.6628% from its US close of 3.702% on Friday. The two-year yield, which tracks traders’ expectations of Fed fund rates, touched 4.4463% compared with a US close of 4.479%.

The dollar dropped 0.3% against the yen to 138.64 after initially trading higher earlier in the day. It remains well off its high this year of 151.94 on Oct. 21.

The euro fell 0.5%, having gained 4.94% in a month, while the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up at 106.49.

Gold was slightly lower. Spot gold was traded at USD 1750.49 per ounce.

(Reporting by Scott Murdoch in Sydney; Editing by Sam Holmes)

Philippines sees economy slowing, but ‘comparatively strong’ in 2023

MANILA, Nov 27 (Reuters) – Philippine economic growth may ease next year after a likely expansion of more than 7% this year as global risks linger, but it will remain resilient, a top official said on Sunday.

“We may slow down, given still elevated external headwinds & internal challenges, but the economy will remain comparatively strong in 2023,” Economic Planning Secretary Arsenio Balisacan said in a tweet.

The government is aiming for yearly gross domestic product growth of 6.5% to 8.0% between 2023 and 2028.

The economy would likely grow above the government’s 6.5%-7.5% growth target for 2022, Balisacan said on Nov. 10, following a faster-than-expected 7.6% annual expansion in the third quarter, underpinned by pent-up domestic demand.

That followed GDP growth rates of 7.5% in the second and 8.2% in the first quarter, boosted by the full reopening of the economy as the government continuously lifted COVID-19 restrictions, and despite soaring inflation.

The world’s largest investment banks expect global economic growth to slow further in 2023 following a year roiled by the Ukraine conflict and soaring inflation, which triggered one of the fastest monetary policy tightening cycles in recent times.

(Reporting by Enrico Dela Cruz; editing by David Evans)

Philippine leader hopes court will reconsider Manila power deal

MANILA, Nov 27 (Reuters) – Philippine President Ferdinand Marcos Jr. hopes the country’s Court of Appeals will reconsider a decision that raises the possibility of electricity rate hikes in the capital, the Office of the Press Secretary said in a statement on Sunday.

The court allowed South Premiere Power Corp., a unit of San Miguel Corp SMC.PS to suspend a power supply agreement with Manila Electric Company (Meralco) (MER)after the companies were prevented from raising tariffs by the regulator.

“We hope that the CA (Court of Appeals) will reconsider and include in their deliberations the extremely deleterious effect this will have on power prices for ordinary Filipinos,” Marcos was quoted as saying, describing the decision as “unfortunate”.

South Premiere and Meralco had sought to raise prices amid higher costs of coal, which the Energy Regulatory Commission rejected in September citing fixed prices set under power supply agreements.

Marcos, who began his six-year term in June, has promised lower electricity rates, which are among the highest in Asia. Higher electricity prices would put further pressure on Philippine inflation, which hit the fastest pace in nearly 14 years last month.

San Miguel, the Southeast Asian nation’s largest conglomerate and one of its major power producers, has said it needs “temporary relief” to allow it “to sustainably provide for the increasing power needs of our country while meeting our obligations to our various stakeholders”.

It told the Philippine Stock Exchange on Friday it had received a copy of the court’s resolution.

Meralco, the country’s biggest power distributor whose franchise covers metropolitan Manila and nearby provinces, said it was “reviewing the resolution in consultation with our counsel to determine the next steps”.

(Reporting by Enrico Dela Cruz;Editing by Elaine Hardcastle)

Dollar edges up in range-bound holiday markets

NEW YORK, Nov 25 (Reuters) – The dollar edged higher across the board on Friday in a quiet session following the US Thanksgiving holiday but remained near multi-month lows as the prospect of the Federal Reserve moderating the pace of its policy tightening weighed on the US currency.

“Today has all the indicators of another session dominated by USD consolidation in lieu of any major cross-asset drivers,” said Simon Harvey, senior FX analyst at Monex Europe.

“Liquidity is quite limited, nothing major being released in other markets,” Harvey said.

The euro slipped 0.1% against the dollar to USD 1.04015 but remained not far from the four-month high of USD 1.0481 touched in the mid-November. For the week, the common currency was up 0.7% against the greenback.

The dollar has rallied against every major currency this year, boosted by the Federal Reserve’s supersized interest rate hikes as it battles inflation. But recent cooler-than-expected US consumer price data has spurred investor bets that the dollar’s rally may be done.

Minutes from the Federal Reserve’s November meeting, released on Wednesday, showed that most policymakers at the central bank agreed it would soon be appropriate to slow the pace of interest rate hikes.

On Nov. 30, Federal Reserve Chair Jerome Powell will speak at the Hutchins Center on Fiscal and Monetary Policy on the outlook for the economy and the changing labor market.

“Powell’s first comments since the Nov 2nd meeting will be crucial. If he doesn’t push back on the recent loosening in financial conditions, the dollar’s near-term support may slip,” Harvey said.

The dollar was 0.4% higher against the Japanese yen at 139.14 yen after data showed core consumer prices in Japan’s capital, a leading indicator of nationwide trends, rising at their fastest annual pace in 40 years in November, signaling broadening inflationary pressure.

Sterling was 0.21% lower at USD 1.2084, as investors remained concerned about the economic outlook for the United Kingdom.

China’s central bank said on Friday it would cut the amount of cash that banks must hold as reserves for the second time this year, releasing about 500 billion yuan (USD 69.8 billion) in long-term liquidity to bolster the slowing economy.

The offshore Chinese yuan fell about 0.3% to 7.2071 to the dollar, headed for a second weekly loss, as COVID-19 worries continued to weigh.

Cryptocurrencies, which have come under intense selling following the high-profile collapse of crypto exchange FTX, remained choppy, with bitcoin down 0.6% at USD 16,485.

(Reporting by Saqib Iqbal Ahmed; Editing by Deepa Babington and Lisa Shumaker)

Gold steadies off one-week high on dollar rebound

Nov 25 (Reuters) – Gold prices were steady below a one-week high hit on Friday as the US dollar firmed, but the non-yielding metal looked set to eke out only a small weekly gain on expectations the US Federal Reserve would scale back its rate-hiking stance.

Spot gold was little changed at USD 1,754.94 per ounce by 2:00 p.m. ET (1900 GMT). Prices hit a session high of 1,761.17 an ounce earlier and eyed a 0.3% rise for the week.

US gold futures settled up 0.5% at USD 1,754.

With bullion tracking the dollar and low-volume trading, “it’s not going to take much to move the market in either direction and probably going to continue to see more of the same throughout the day,” said Jim Wyckoff, senior analyst at Kitco Metals.

The dollar gained 0.2%, making greenback-priced gold more expensive for overseas buyers. USD/

World’s top gold consumer China on Friday reported a new daily record for COVID-19 infections, as cities across the country continued to enforce curbs to control outbreaks.

“The COVID situation in China doesn’t appear to be getting any better, so that’s going to be a front burner issue for the marketplace, not only gold, but for all the markets here for the next couple of weeks,” Wyckoff highlighted.

This year’s high interest rate hikes from the US Fed have kept a leash on non-yielding gold’s traditional status as a hedge against inflation and other uncertainties.

However, traders now expect a smaller 50 bps rate increase at the December meeting after the US central bank’s last policy meeting minutes signaled slower pace of interest rate hikes.

“Technically speaking, we failed to break through resistance levels … so now we’re potentially looking for support that’s a little lower, closer to USD 1,730,” said Bart Melek, head of commodity markets strategy at TD Securities.

Silver was little changed at USD 21.52, and platinum inched 0.7% lower to USD 980.71, both due for weekly rises.

Palladium dipped 1.4% to USD 1,854.47, heading lower for the week.

(Reporting by Seher Dareen in Bengaluru; Editing by Krishna Chandra Eluri)

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