Tech, commodity stocks help Europe’s STOXX 600 close higher for fourth-day

Nov 15 (Reuters) – Europe’s STOXX 600 index closed higher on Tuesday, boosted by gains in technology and commodity stocks after softer-than-expected US inflation data bolstered hopes of less-aggressive Federal Reserve interest rate hikes in the coming months.

The continent-wide index rose 0.4%, logging its fourth-straight session of gains and erasing intraday losses after softer-than-expected US producer prices data provided further evidence that inflation was starting to subside.

Last week’s report showed consumer prices rising at a slower pace and the rate-sensitive technology index added
1.7%, as euro zone bond yields slipped in line with US Treasury yields.

“Investors are sort of seeing the fog of inflation clearing slightly, particularly in the United States,” said Danni Hewson, financial analyst at AJ Bell.

Eurozone inflation data for October is due on Thursday.

Meanwhile in the euro area, European Central Bank (ECB) policymaker Francois Villeroy de Galhau said the bank expects to raise interest rates above 2%, but beyond that level rate hikes may be in a more flexible and less rapid manner.

The STOXX 600 still hovered near 11-week highs, but is still down 11.3% for the year amid worries about a harsh recession in the euro zone.

Latest data showed a flash estimate for euro zone gross domestic product grew in line with expectations in the July-September period. Separately, German investor sentiment rose again in November on hopes that inflation rates will fall soon.

“The ECB is going to have to work harder to cool inflation,” Hewson said.

“The expectation is that inflation will stay higher for longer in the eurozone and that energy prices are going to keep taking a bite out of consumer spend in the eurozone, which is a reason why European equities haven’t been looking quite so perky.”

Investors also awaited the UK budget on Nov. 17, with expectations of tax increases and spending cuts – aimed at closing a 50 billion-pound hole in Britain’s finances.

Oil and gas firms and miners added more than 1% each.

Teleperformance jumped 10% after Citigroup upgraded the French office support provider’ stock to “buy” from “neutral”.

The company would meet with Colombian Labor Ministry representatives this week after the country
opened a probe into its work practices there.

Weighing the most on the STOXX 600 index was a 7.9% slide in Vodafone shares after the company cut its full-year free cash flow forecast and said annual earnings would come in the bottom range of its target.

European telecoms dipped 1%.

Danish medical device maker Ambu tumbled 14.8% to the bottom on the STOXX 600 after a cautious 2022/23 outlook.

(Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Savio D’Souza, Shinjini Ganguli and Alexander Smith)

China stocks surge on Xi-Biden meeting, pro-growth policies

SHANGHAI, Nov 15 (Reuters) – China stocks closed up for a third straight session on Tuesday, led by semiconductor and internet companies on signs of easing China-US tensions after a meeting between US President Joe Biden and Chinese leader Xi Jinping, while Beijing’s latest supportive steps also lifted sentiment.

** The blue-chip CSI 300 Index ended higher 1.9%, and the Shanghai Composite Index added 1.6%.

** The Hang Seng Index jumped 4.1%, while the Hang Seng China Enterprises Index surged 4.8%.

** A positive sign on the Group of 20 (G20) nations summit was a three-hour meeting between Biden and Xi in which the two leaders pledged more frequent communications despite their many differences.

** Recent moves by Chinese authorities to ease some COVID curbs and provide financial support to the property market also underpinned sentiment.

** Hong Kong-listed tech giants soared 7.3%, sending their month-to-date gains to 33.7%. Index heavyweights Alibaba and Tencent surged more than 10% each.

** “We believe the Xi-Biden meeting today could reduce the risk of Chinese ADRs (American Depositary Receipts) being delisted but is unlikely to reduce the intensity of the tech war,” said Jefferies analysts in a Monday note.

** In mainland markets, semiconductor shares jumped 6.7% and securities firms climbed 3.6%.

** The strong market performance overshadowed concerns over data showing slower Chinese factory output growth and a fall in October retail sales.

** “Economic activities slowed in October due to worsening COVID outbreaks and weak external demand,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “As investors are forward looking, the focus in the market is on the change of policies.”

** Several Chinese cities began cutting routine community COVID-19 testing, days after China announced an easing of some of its coronavirus measures, although daily infections had jumped to the highest level since April, when Shanghai was in a two-month citywide lockdown.

** Separately, China’s central bank partially rolled over maturing medium-term policy loans and kept the interest rate unchanged for a third straight month.

(Reporting by Shanghai Newsroom; Editing by Rashmi Aich and Angus MacSwan)

Philippines raises USD 611 mln via 2034 T-bond re-issue

MANILA, Nov 15 (Reuters) – Following are the results of the Philippine Bureau of the Treasury’s (BTr) auction of re-issued 2034 T-bonds on Tuesday:

* BTr fully awards 35 billion pesos (USD 610.50 million) offer

* Average yield 8.168%

* Tenders total 80.953 billion pesos

* Bonds were originally issued in 2009

(USD 1 = 57.3300 Philippine pesos)

(Reporting by Enrico Dela Cruz)

Oil prices little changed amid China COVID concerns, supply woes

SINGAPORE, Nov 15 (Reuters) – Oil prices held steady on Tuesday as rising COVID-19 cases in China sparked fears of lower fuel consumption from the world’s top crude importer and a cut in OPEC’s 2022 global demand forecast offset worries about tight supply.

Brent crude futures edged up 11 cents, or 0.1%, to USD 93.25 a barrel by 0715 GMT after settling 3% lower on Monday. US West Texas Intermediate crude was at USD 85.68 a barrel, down 19 cents, or 0.2%, after tumbling 3.5% in the previous session.

While investors cheered China’s announcements last week that it would lessen the impact of a strict zero-COVID policy to spur economic activity and energy demand, analysts said lockdowns and surging case numbers continue to be a key downside risk.

The country’s COVID cases rose further on Tuesday, including in the capital Beijing, even as many cities scaled back routine testing.

“Rolling lockdowns across heavily populated areas in China penalize mobility and oil demand even more than economic activity,” said Stephen Innes, managing partner at SPI Asset Management, in a note.

The country’s factory output growth slowed, retail sales fell and property slumped further in October, the latest sign that the world’s second-largest economy is losing momentum as it struggles with protracted COVID curbs and a property downturn.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) cut its 2022 global oil demand growth forecast for a fifth time since April, citing mounting economic challenges including high inflation and rising interest rates.

This comes after the International Monetary Fund said on Sunday the global economic outlook has become gloomier than projected last month, citing a steady worsening in purchasing manager surveys in recent months.

However, concerns about tight supplies this winter continued to support oil prices. A European Union embargo on Russian oil is set to start on Dec. 5. The ban will be followed by the halting of oil product imports in February.

US crude oil stocks were expected to have dropped by about 300,000 barrels in the week to Nov. 11, a Reuters poll showed on Monday.

The poll was conducted ahead of reports from the American Petroleum Institute due at 4:30 p.m. ET (2130 GMT) on Tuesday and the Energy Information Administration (EIA) due on Wednesday.

Elsewhere, oil output in the Permian Basin is set to hit another record of 5.499 million barrels per day (bpd) in December, the EIA said in its monthly productivity report on Monday.

However, aging shale regions are showing weaker per-well output, causing overall US crude oil production in shale regions to rise by a mere 91,000 bpd to 9.191 million bpd in December, despite a surge in prices, it said.

(Reporting by Florence Tan and Isabel Kua; Editing by Lincoln Feast, Kirsten Donovan)

Gold scales 3-month peak on softer dollar, hopes of smaller Fed hikes

Nov 15 (Reuters) – Gold prices rose to a three-month high on Tuesday, supported by a weaker dollar amid hopes that the Federal Reserve would adopt a less aggressive approach on rate hikes going forward.

Spot gold was up 0.5% at USD 1,779.94 per ounce, as of 0745 GMT, hitting its highest since Aug. 17. US gold futures gained 0.4% to USD 1,783.50 per ounce.

“Gold has had a very strong run from USD 1,618 per ounce and is now due for some consolidation in the short term. However, the overall dominant risk remains very much to the upside,” said Clifford Bennett, chief economist at ACY Securities.

“The catalyst for the recent strong rally was partially the correction of the US dollar.”

The dollar slipped 0.6% to a three-month low against its rivals, making gold more appealing for other currency holders.

The Fed will likely soon slow its interest rate hikes, Fed Vice Chair Lael Brainard signalled on Monday while emphasising the central bank still had more work to do.

Gold prices have risen more than USD 160 since falling to a one-month low earlier this month, as data showing an uptick in the US unemployment rate in October and signs of cooling inflation led to Fed slowdown optimism, triggering a sharp drop in the dollar.

Traders now see an 89% probability of a 50-basis-point increase at the US central bank’s December meeting, with only an 11% likelihood of a 75-basis-point rise.

While gold is considered a hedge against inflation, rising interest rates tend to dull bullion’s appeal as the metal pays no interest.

Speculators cut net short positions by 30,659 contracts to 8,219 in COMEX gold in the week to Nov. 8, the US Commodity Futures Trading Commission said.

Elsewhere, spot silver rose 1% to USD 22.19 per ounce, its highest since early June.

Platinum gained 1.4% to USD 1,031.63, while palladium climbed 1% to USD 2,046.34.

(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)

Philippines cash remittances up 3.8% in September

MANILA, Nov 15 (Reuters) – Cash remittances rose 3.8% to USD 2.84 billion in September from a year ago, the Philippine central bank said on Tuesday.

In January to September, cash remittances through banks increased 3.1% to USD 23.12 billion, driven by millions of Filipinos living and working overseas.

(Reporting by Neil Jerome Morales; Editing by Ed Davies)

Oil prices slip on OPEC cut in demand forecast, China COVID cases

SINGAPORE, Nov 15 (Reuters) – Oil prices extended losses in early Asian trade on Tuesday after OPEC cut its 2022 global demand forecast, while rising COVID-19 case numbers in China clouded the outlook for fuel consumption in the world’s top crude importing nation.

Brent crude futures fell 39 cents, or 0.4%, to $92.75 a barrel by 0133 GMT after settling down 3% on Monday. US West Texas Intermediate crude was at $85.31 a barrel, down 56 cents, or 0.7%, after tumbling 3.5% in the previous session.

The Organization of the Petroleum Exporting Countries (OPEC) cut its 2022 global oil demand growth forecast for a fifth time since April, citing mounting economic challenges including high inflation and rising interest rates.

This comes after the International Monetary Fund said on Sunday that the global economic outlook has become gloomier than projected last month, citing a steady worsening in purchasing manager surveys in recent months

Meanwhile, though investors cheered China’s announcements last week that it would lessen the impact of a strict zero-COVID policy to spur economic activity and energy demand, ANZ analysts said surging case numbers continue to be a key downside risk.

“The market is currently defying looming supply risks, despite expectations that the latest demand downgrade could be supply-negative for OPEC oil output,” the analysts said, referring to imminent European Union sanctions on Russian oil exports.

Elsewhere, oil output in the Permian Basin is set to hit another record of 5.499 million barrels per day (bpd) in December, the US Energy Information Administration (EIA) said in its monthly productivity report on Monday.

(Reporting by Florence Tan; Editing by Kenneth Maxwell)

Dollar rebounds as Fed officials say hikes to continue; yen slumps

TOKYO, Nov 15 (Reuters) – The U.S. dollar climbed versus the yen and stayed firm against other major peers on Tuesday as more Federal Reserve officials made the case for even tighter U.S. monetary policy.

The greenback edged up against sterling and hovered more than 1% above its two-month trough to the euro after Fed Vice Chair Lael Brainard on Monday echoed weekend comments by Fed Governor Christopher Waller that interest rates need to keep rising to battle inflation, although potentially at a slower pace.

The dollar index, which measures the currency against six counterparts including the yen, euro and sterling, edged 0.03% higher to 107.00 early in the Asian day. The index held onto gains made on Monday when it rebounded from a three-month low of 106.27 hit on Friday.

The index tumbled 3.9% last week, its worst performance since March 2020, after U.S. consumer prices rose less than expected, stoking speculation a peak in rates might be close.

Money markets are currently pricing in an 89% probability that the Federal Open Market Committee (FOMC) will slow the pace of hikes to a half point at its next meeting on Dec. 14, against 11% odds for another 75 basis point increase.

“Fed speaker(s) have set the tone, reminding markets that there is still a lot of work to be done to bring inflation to heal,” National Australia Bank senior FX strategist Rodrigo Catril wrote in a note to clients.

“The USD is broadly stronger with last week’s outperformers – GBP and JPY – leading the declines.”

The dollar gained 0.34% to 140.40 yen JPY, adding to its 0.84% overnight rebound from a 2 1/2-month low of 138.46. It dropped 5.39% last week, the most in 14 years.

Sterling GBP=D3 declined 0.08% to $1.1750, slipping further from a 2 1/2-month top at $1.1855 from Friday.

The euro EUR=EBS was little changed at $1.03215 following its retreat from a three-month high of $1.0364.

The risk-sensitive Australian dollar AUD eased 0.13% to $0.66935, but stayed relatively close to Monday’s nearly two-month peak of $0.6720, buoyed by key trading partner China’s moves to ease COVID-19 restrictions and support the property market.

There was little reaction in the currency from minutes of the Reserve Bank of Australia’s latest meeting, which showed policymakers considered a 50 bps hike before opting for another 25 bps bump.

“The Aussie has made some progress on cross rates so far this week, with help from China,” said Sean Callow, a senior currency strategist at Westpac, adding there is the potential for a rise to $0.6775 in coming days.

“However global equities are still skittish, limiting Aussie upside.”

The offshore Chinese yuan CNH was little changed at 7.0461 per dollar, after hitting a more than five-week high of 7.0200 in the previous session.

(Reporting by Kevin Buckland; Editing by Ana Nicolaci da Costa)

Wall Street ends lower as investors gauge Fed’s policy path

Nov 14 (Reuters) – Wall Street’s main indexes ended lower on Monday, with real estate and discretionary sectors leading broad declines, as investors digested comments from US Federal Reserve officials about plans for interest rate hikes and looked for next catalysts after last week’s big stock market rally.

Losses accelerated toward the end of the up-and-down session, with focus turning to Tuesday’s producer price index report and markets highly sensitive to inflation data.

Earlier on Monday, Fed Vice Chair Lael Brainard signaled that the central bank would will likely soon slow its interest rates hikes. Her comments somewhat buoyed sentiment for equities that had been dampened after Federal Reserve Gov. Christopher Waller on Sunday said the Fed may consider slowing the pace of increases at its next meeting but that should not be seen as a “softening” in its commitment to lower inflation.

A massive equity rally late last week was set off by a softer-than-expected inflation report that boosted investor hopes the Fed could dial back on its monetary tightening that has punished markets this year.

“There is still a sensitivity to Fed speak… One was a little hawkish, one was a little dovish,” said Eric Kuby, chief investment officer at North Star Investment Management Corp.

The Dow Jones Industrial Average fell 211.16 points, or 0.63%, to 33,536.7, the S&P 500 lost 35.68 points, or 0.89%, to 3,957.25 and the Nasdaq Composite dropped 127.11 points, or 1.12%, to 11,196.22.

The S&P 500 last week posted its biggest weekly percentage gain since late June, while the tech-heavy Nasdaq notched its best week since March.

More Fed officials are due to speak later this week along with a slew of data, including on retail sales and housing, and earnings reports from major retailers.

“It just makes sense the market wants to pause and really both try to make sense of the trajectory (of Fed policy) and what the next drivers are going to be,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.

Among S&P 500 sectors, real estate fell 2.7%, consumer discretionary dropped 1.7% and financials declined 1.5%.

In company news, Amazon shares fell 2.3% as The New York Times on Monday reported the company was planning to lay off about 10,000 people in corporate and technology jobs starting as soon as this week.

Shares of Biogen Inc and Eli Lilly gained 3.3% and 1.3%, respectively, after the failure of Swiss rival Roche’s Alzheimer’s disease drug candidate.

Declining issues outnumbered advancing ones on the NYSE by a 2.23-to-1 ratio; on Nasdaq, a 1.61-to-1 ratio favored decliners.

The S&P 500 posted 15 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 72 new highs and 74 new lows.

About 11.5 billion shares changed hands in US exchanges, compared with the 12.1 billion daily average over the last 20 sessions.

(Reporting by Lewis Krauskopf in New York, Shubham Batra, Bansari Mayur Kamdar, Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta, Vinay Dwivedi and Aurora Ellis)

Gold steadies as bargain hunters see off dollar’s advance

Nov 14 (Reuters) – Gold steadied on Monday as bargain hunting offset pressure from the dollar’s advance following the US Federal Reserve’s signs that it was not softening its fight against inflation.

Spot gold rose 0.1% to USD 1,772.94 per ounce by 01:32 p.m. ET (1832 GMT) after falling 1% earlier in the day.

US gold futures settled up 0.4% at USD 1,776.9.

The gains in the dollar and US yields were weighing on gold, said Jim Wyckoff, senior analyst at Kitco Metals, adding that bargain hunting by bulls emboldened by previous week’s gains could have helped gold’s slight recovery.

Gold prices could go sideways to higher in the near term, Wyckoff added.

The dollar index rose 0.4%, while 10-year Treasury yields also gained, making gold more expensive for overseas buyers.

“Gold appears to have strong resistance with the USD 1,800 level, with decent support at the USD 1,750 region,” Edward Moya, senior analyst with OANDA, said in a note.

Bullion reported its best weekly gain since March 2020 last week on hopes of slower rate hikes after data showed price pressure cooling in the United States.

Fed Vice Chair Lael Brainard on Monday joined Governor Christopher Waller, to indicate the Fed is ready to begin moving in smaller rate hike increments, while still emphasizing what Brainard called the central bank’s “resolve” to keep pushing rates higher as needed to battle a surge of inflation.

While gold is considered a hedge against inflation, rising rates tend to dull bullion’s appeal as it pays no interest.

Fed funds futures traders see an 89% probability of a 50 basis point increase at the central bank’s December meeting, with only an 11% likelihood of a 75 basis point rise.

Spot silver jumped 1.5% to USD 22 per ounce and reached its highest since June 9. Platinum fell 0.3% to USD 1,026, off its highest since mid-March reached in the last session.

Palladium was steady at USD 2,040.64 per ounce.

(Reporting by Seher Dareen in Bengaluru; additional reporting by Rahul Paswan; Editing by Sandra Maler, Shounak Dasgupta and Shailesh Kuber)

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