Gold slips 1% as solid jobs data spurs rate hike bets

June 3 (Reuters) – Gold prices fell on Friday, pressured by a stronger dollar and as better-than-expected US jobs data raised concerns of aggressive monetary policy tightening.

Spot gold fell 1% to USD 1,848.67 per ounce by 1759 GMT, after earlier falling to USD 1,846.4. US gold futures settled down 1.1% at USD 1,850.2.

Data showed US employers hired more workers than expected in May and maintained a fairly strong pace of wage increases, signs of labor market strength.

“If the Federal Reserve sees the economy continuing to remain stable in the midst of its rate raising efforts, they might feel more emboldened to raise rates at a faster pace,” said David Meger, director of metals trading at High Ridge Futures.

Higher US interest rates increase the opportunity cost of holding gold, which bears no interest, while boosting the dollar in which bullion is priced.

Cleveland Federal Reserve Bank President Loretta Mester said on Friday she was looking for “compelling” evidence that inflation has peaked, and if it hasn’t, September’s Fed meeting could see a 50 bps rate hike as well.

The dollar edged up 0.3%, while US benchmark 10-year yields were close to the two-week high touched earlier in the session.

Gold prices were set to log a 0.3% dip for the week, despite the metal hitting its highest since May 9 at USD 1,873.79 earlier in the session.

The medium-term outlook for gold is positive, said Jigar Trivedi, a commodities analyst at Mumbai-based broker Anand Rathi Shares.

“Chinese market has reopened hence we don’t rule out retail participation and market is discounting June and July rate-hike events,” Trivedi added.

Spot silver fell 1.9% to USD 21.85 per ounce, down nearly 1% for the week.

Platinum was down 1.4% to USD 1,008.35, yet it was up 5.6% for the week, the biggest gain since Feb. 2022.

Palladium fell 3.4% to USD 1,983.20 and was down around 3.8% for the week.

(Reporting by Seher Dareen and Eileen Soreng in Bengaluru; Editing by Amy Caren Daniel and David Evans)

Oil settles up despite OPEC+ output hike plan; supply still tight

June 3 (Reuters) – Oil settled higher on Friday, supported by expectations that OPEC’s decision to increase production targets by slightly more than planned will not add that much to global supply which should tighten as China eases COVID restrictions.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, on Thursday agreed to boost output by 648,000 barrels per day (bpd) a month in July and August rather than 432,000 bpd as previously agreed.

Brent crude rose USD 2.11, or 1.8%, to settle at USD 119.72 a barrel by 1338 GMT. US West Texas Intermediate (WTI) crude advanced USD 2, or 1.7%, to USD 118.87. Both benchmarks were up by USD 3 in after hours trading.

US crude notched a sixth weekly gain on tight US supply, which has prompted talk of fuel export curbs or a windfall tax on oil and gas producers.

“Yesterday’s OPEC+ decision and the ongoing acceleration in SPR releases is maintaining crude availability at an ample level especially with demand from the refiners appreciably downsized from a few years ago,” said Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois.

The output hike could undershoot the pledged amount since OPEC+ divided the hike across its members and still included Russia, whose output is falling as sanctions have prompted some countries to avoid buying its oil since the invasion of Ukraine.

President Joe Biden publicly acknowledged that he may travel to Saudi Arabia soon, a trip multiple sources said was expected and could include talks with Saudi Crown Prince Mohammed bin Salman.

The visit would be aimed at bolstering US-Saudi relations as Biden seeks ways to lower US gasoline prices.

As recently as Wednesday, the White House said Biden still felt bin Salman was a “pariah” for what US intelligence says was his role in the killing and dismembering of a political opponent, Washington Post journalist Jamal Khashoggi, in Turkey in 2018.

Supplies remain tight. On Thursday, a US weekly inventory report showed crude stockpiles fell by a more-than-expected 5.1 million barrels. Gasoline inventories also dropped.

US energy firms this week left oil and natural gas rigs unchanged at 727 in the week to June 3, Baker Hughes Co (BKR) said in its closely followed report on Friday.

Demand is rising too. China’s financial hub Shanghai and capital, Beijing, have relaxed COVID-19 restrictions and the Chinese government has vowed to stimulate the economy.

Oil held gains after US data showed employment increased more than expected in May, signs of a tight labor market.

(Additional reporting by Sonali Paul in Melbourne and Muyu Xu in Singapore; Editing by Kirsten Donovan, Edmund Blair and David Gregorio)

Foreigners pull out of Asian equities for fifth straight month in May

June 2 (Reuters) – Asian equities continued to witness foreign outflows for a fifth consecutive month in May, hit by concerns over monetary tightening measures by major central banks and supply chain disruptions due to strict lockdowns in China.

Overseas investors withdrew USD 3.69 billion out of Asian equities, data from stock exchanges in Taiwan, India, South Korea, the Philippines, Vietnam, Indonesia and Thailand showed. However, the outflows were the smallest in the last five months.

“With surging real rates and consequent recession fears, equities have been sold worldwide, and risky assets like EM Asia equities more so given the fears sorrounding Fed tightening and upcoming quantitative tightening continue to depress Asian currencies,” said Manishi Raychaudhuri, Asia-Pacific equity strategist at BNP Paribas.

Foreigners offloaded Indian equities worth USD 5.18 billion, the biggest amount since March 2020, amid concerns over a weakening rupee and rising oil prices.

Indian rupee hit a record low against the dollar and the country’s inflation levels also jumped to multi-year highs.

Indonesian and Philippine equities also witnessed some outflows.

However, Taiwan, Thailand and South Korea received inflows worth USD 819 million, USD 611 million and USD 168 million, respectively.

“Countries like Thailand, Indonesia and to some extent Vietnam are benefiting from a supply-chain rerouting as markets try to diversify away from dependence on China, both in the wake of trade tensions and Covid-related issues,” DailyFX strategist Ilya Spivak said.

Some analysts said regional equities are relatively more resilient this time, despite aggressive selling by foreigners, as their central banks possess strong foreign reserves and economies have better economic fundamentals.

Alex Loo, strategist at TD Securities, expects limited downside for further equity outflows this year.

“Asia equities gained after quantitative tightening in 2017, tracking the rise in US equities (S&P 500) which likely supported equity inflows in 2017.”

“FX reserves are also more sizeable now and should buffer any aggressive sell-off in FX if US’ financial conditions overly tighten,” he added.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Rashmi Aich)

Wall Street slides as strong factory data stokes aggressive rate hike concerns

June 1 (Reuters) – US stocks fell in volatile trade on Wednesday after data showing strength in factory activity raised concerns about aggressive interest rate hikes by the Federal Reserve, sending Treasury yields higher.

Ten of the 11 major S&P sectors fell in morning trade, with financial and real estate stocks leading the losses. Energy stocks gained 1.1% as oil prices firmed.

US manufacturing activity picked up in May as demand for goods remains strong, a survey from the Institute for Supply Management showed, which could further allay fears of an imminent recession, but a measure of factory employment contracted for the first time in nearly a year. nN9N2WB002

The benchmark US 10-year Treasury yield climbed to 2.93%, its highest in two weeks.

As part of the plan to combat inflation, the US central bank on Wednesday will also begin trimming its USD 9 trillion balance sheet which it amassed to support the economy amid the COVID-19 pandemic.

“We think interest rates are going to continue to go up, so assuming the inverse of QE, we expect risky assets to come down and, generally, the reversal of a decade-plus of accommodative policies,” said Paul Kim, chief executive officer of Simplify ETFs.

Investors will be watching comments from St. Louis Federal Reserve President James Bullard and New York Fed President John Williams later in the day for clues on the timeline of monetary policy tightening.

Uncertainty about the US central bank’s policy move, the war in Ukraine, prolonged supply chain snarls due to COVID lockdowns in China and higher Treasury yields have rocked stock markets, with the benchmark S&P 500 index falling 13.3% year-to-date.

Megacap companies Apple Inc. (AAPL), Microsoft Corp. (MSFT) and Amazon.com (AMZN) gained between 0.5% and 1.4% to provide the biggest boost to the S&P 500 and the Nasdaq.

At 10:43 a.m. ET, the Dow Jones Industrial Average .DJI was down 210.80 points, or 0.64%, at 32,779.32, the S&P 500 was down 28.10 points, or 0.68%, at 4,104.05, and the Nasdaq Composite was down 37.39 points, or 0.31%, at 12,044.00.

Salesforce (CRM) jumped 12.4% after the enterprise software firm raised its full-year adjusted profit outlook and said it did not see any material impact from the uncertain broader economic environment.

Capri Holdings Ltd. (CPRI) gained 2.1% after the Michael Kors owner posted upbeat fourth-quarter results and lifted its full-year profit outlook, signaling robust demand for its luxury goods.

Victoria’s Secret (VSCO) climbed 6.6% after the lingerie brand topped first-quarter profit estimates as costs fell.

Declining issues outnumbered advancers for a 2.17-to-1 ratio on the NYSE and a 1.88-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week highs and 29 new lows, while the Nasdaq posted 12 new highs and 48 new lows.

(Reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing by Vinay Dwivedi)

Philippine gaming regulator to probe physical takeover of Manila casino

MANILA, June 1 (Reuters) – Philippine gaming authorities said on Wednesday they are looking at an incident where representatives of a Japanese casino billionaire entered a Manila casino to take physical control of the premises from its operator.

The Philippines’ Supreme Court in April ruled that Kazuo Okada could once again lead the Okada Manila integrated casino-resort as CEO of its operator Tiger Resorts, a position he was ousted from in 2017 on suspicion of misappropriating USD 3 million.

But Tiger Resorts – owned by Japan-based Universal Entertainment Inc 6425.T – has appealed against the Supreme Court ruling. Okada was also ousted from Universal’s board in 2017, with directors accusing him of misappropriating USD 20 million in funds, which he denied.

The gaming regulator’s board meeting on Wednesday discussed among other matters the casino takeover and ensuring its continuous operations, Alfredo Lim, the agency’s president, told Reuters.

“Our only concern in this corporate squabble between contending stockholders is that the operation is not disturbed,” Lim said. While the transition was seen as smooth, the regulator is still awaiting a full report from its staff, he said.

Estrella Elamparo, legal counsel for Tiger Resorts, said the May 31 takeover was “illegal and violent”, alleging that Okada’s team had taken “by force the physical premises”.

A video shared by Tiger Resorts with local broadcaster ANC showed physical skirmishes and verbal confrontation as guards and police escorted casino personnel out of a dark meeting room at the premises.

In a statement, Okada said he “continues to seek justice in order for him to regain his position as the rightful head of Universal Entertainment Inc”.

Okada said he hoped to vindicate himself from what he described as underhanded treatment by “rogue employees” at Universal.

The 44-hectare (108 acres) Okada Manila, located beside the Manila Bay, features 993 suites and villas, 500 table games and 3,000 electronic gaming machines. It is among the four multi-billion dollar casino-resorts operating in the Philippine capital.

Okada Manila went public in the United States in 2021 through blank-check firm 26 Capital Acquisition ADER.O in a USD 2.5 billion deal.

(Reporting by Neil Jerome Morales; Editing by Kanupriya Kapoor and Emelia Sithole-Matarise)

Global factory growth stunted by war, China’s COVID curbs

LONDON/TOKYO, June 1 (Reuters) – Global growth in factory activity slowed in May as China’s strict coronavirus curbs and Russia’s invasion of Ukraine disrupted supply chains and dampened demand, adding to woes for businesses already struggling with surging raw material prices.

Manufacturing growth slowed last month in economies as diverse as France, Japan to Malaysia, business surveys showed on Wednesday, illustrating the challenge policymakers face in trying to combat inflation while not stifling anaemic economic activity.

S&P Global’s final manufacturing Purchasing Managers’ Index (PMI) for the euro zone fell to 54.6 in May from April’s 55.5, its lowest since November 2020 though just ahead of a preliminary reading of 54.4. Anything above 50 indicates growth.

In Britain, manufacturing activity expanded last month at the weakest rate since January 2021 as producers of consumer goods struggled against a worsening cost-of-living crunch.

“Inflation is driving up the cost of doing business and dampening some consumer demand,” said Simon Jonsson at KPMG.

“The conflict in Ukraine has caused new and worsened supply shortages, while COVID-19 restrictions in China, and border friction closer to home, have also adversely impacted UK manufacturing.”

China’s Caixin/Markit Manufacturing PMI showed a further contraction there, standing at 48.1 in May although improving slightly from April’s 46.0, a private survey showed. That was in line with official factory activity data released on Tuesday.

While COVID curbs are being rolled back in some cities, suggesting China’s manufacturing slump has bottomed out, analysts do not expect a rapid rebound like in early 2020, saying fears of fresh outbreaks will continue to weigh on confidence and demand.

“Disruptions to supply chains and goods distribution may gradually ease as Shanghai’s lockdown ends. But we’re not out of the woods as China hasn’t abandoned its zero-COVID policy altogether,” said Toru Nishihama, chief economist at Dai-ichi Life Research Institute in Tokyo.

“Rising inflation is forcing some Asian central banks to tighten monetary policy. There’s also the risk of market volatility from US interest rate hikes. Given such layers of risks, Asia’s economy may remain weak for most of this year.”

CHINA SPILLOVER

Lockdowns in China have snarled global logistics and supply chains, with both Japan and South Korea reporting sharp declines in output.

Japan’s manufacturing activity grew at the weakest pace in three months in May, and manufacturers reported a renewed rise in input costs, the PMI survey showed, as the knock-on effects of China’s lockdowns and the Ukraine conflict pressured the economy.

The final au Jibun Bank Japan PMI fell to a seasonally adjusted 53.3 in May from 53.5, marking its slowest pace since February. nZRN004I29

In a glimmer of hope, South Korea’s exports grew at a faster pace in May than a month earlier, separate data showed on Wednesday, as a rise in shipments to Europe and the United States more than offset fallout from China.

The monthly trade data, the first to be released among major exporting economies, is considered a bellwether for global trade.

India’s factory activity expanded at a higher-than-expected pace in May, with demand resilient despite persistently high inflation.

(Reporting by Jonathan Cable and Leika Kihara; Editing by Kim Coghill and John Stonestreet)

Philippines to sell idle state mines from 2023 as part of sector shakeup

MANILA, June 1 (Reuters) – The Philippines will sell idle state-held mining assets from next year, part of an 18-year plan to develop its fledgling mineral sector and boost its contribution to economic growth, the industry regulator said on Wednesday.

The Philippines is China’s biggest supplier of mostly low-grade nickel ore used to produce nickel pig iron, a raw material for stainless steel, but mining accounts for less than 1% of its overall economic output.

Though more than a third the Philippines’ land area has been identified as having “high mineral potential”, less than 5% of its mineral reserves has been extracted so far, according to the mines bureau.

Assets up for sale include several nickel and copper mines and copper-gold projects, all in central and southern provinces, which the government took over from private firms several years ago and were subject to a legal review launched in 2020.

In a quarterly report, the Mines and Geosciences Bureau (MGB) said the assets sale was part of an 18-year plan that aims to boost investor confidence in the Philippine mining sector, then expand domestic ore production and mineral assets, and sell government-held mines.

From 2026 to 2040, the plan focuses on improving infrastructure for mining and domestic processing to increase mineral exports value, the report said.

Restrictive policies saw the industry stagnate for years. President Rodrigo Duterte, whose six-year term ends on June 30, has recently lifted restrictions in the sector, including a ban on open-pit mining. nL1N2TD091nL1N2M806U

(Reporting by Enrico Dela Cruz; Editing by Martin Petty)

((enrico.delacruz@thomsonreuters.com))

European shares tick higher on bank, auto boost

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window

June 1 (Reuters) – European shares opened modestly higher on Wednesday, led by gains in banking and auto stocks, but sentiment was kept in check as a clutch of bleak data stoked fears of slowing growth.

Starting June on a positive note, the pan-European STOXX 600 index .STOXX rose 0.3% by 0716 GMT after closing down 0.7% on Tuesday, as record high inflation had stoked worries about aggressive central bank action. It lost 1.6% in May.

Deutsche Bank economists now expect the European Central Bank to raise interest rates by 50 basis points in September as rising prices squeeze economic growth. nL8N2XO10Y

Data showed German retail sales fell by more than expected in April as consumers feel the pinch of higher prices, while another survey showed British companies expect barely any growth over the next three months. nL8N2XN44R

Auto stocks .SXAP rose almost 1%, while banks .SX7P were the biggest boost to the STOXX 600, up 0.6%.

Among individual stocks, British footwear brand Dr. Martens DOCS.L surged 19.0% after it forecast higher annual revenue growth, thanks to price hikes made in response to soaring inflation and stronger sales of its shoes and boots. nL4N2XO0RN

Deutsche Bank’s asset manager DWS DWSG.DE slumped 6.9% after its chief executive officer said he would step down next week, as the company faced allegations of misleading investors about “green” investments. nL1N2XO08O

(Reporting by Susan Mathew in Bengaluru; Editing by Rashmi Aich)

((susan.mathew@thomsonreuters.com; +91-80-6287-2704;))

BRIEF-Vista Land And Lifescapes Posts Qtrly Gross Revenue 8,061 Million Pesos

June 1 (Reuters) – Vista Land and Lifescapes:

QTRLY GROSS REVENUE 8,061 MILLION PESOS VERSUS 8,728 MILLION PESOS
QTRLY NET INCOME ATTRIBUTABLE 2,216 MILLION PESOS VERSUS 1,993 MILLION PESOS

Source text for Eikon: ID:nPSX40pdJF

Further company coverage: VLL.PS

((Reuters.Briefs@thomsonreuters.com;))

Global stocks fall, US yields rise as oil prices reach new highs

NEW YORK, May 31 (Reuters) – Global equity markets dipped while US Treasury yields rose sharply on Tuesday as investors weighed the prospects of higher inflation following a phased ban of Russian oil imports by the European Union that has lifted crude prices to new highs.

EU leaders agreed in principle to cut 90% of oil imports from Russia, the bloc’s toughest sanction yet on Moscow since the invasion of Ukraine in February.

The new sanctions will apply to Russian crude that is delivered by shipments and will be phased in over six months, with refined products implemented over eight months. The embargo exempts pipeline oil from Russia as a concession to Hungary.

Oil prices reached new highs on Tuesday following the EU announcement, with benchmark Brent crude rising 0.96% to USD 122.84 a barrel after earlier rising to USD 124.64 – its highest since March 9.

Brent crude contracts for August, however, settled down 1.7%, at USD 115.60 a barrel, after members of Organization of the Petroleum Exporting Countries (OPEC) were reported to be considering suspending a production deal with Russia.

US West Texas Intermediate (WTI) crude was also down 0.06% trading at USD 115.02 a barrel, reversing earlier trading gains.

“Energy is the input cost for basically everything and high oil prices are bad for inflation,” said Thomas Hayes, managing member at Great Hill Capital.

The MSCI world equity index, which tracks shares in 50 countries, was down 0.61%. The pan-European STOXX 600 index fell 0.72%.

US Treasury yields rose, with most maturities hitting one-week highs, as inflation concerns dominated trading after euro zone inflation climbed to a record high this month.

Treasury yields also rose, driven in part by hawkish comments from Federal Reserve Governor Christopher Waller on Monday. Waller said he is advocating to keep 50-basis-point rate hikes on the table until substantial reductions are seen in inflation, winding back expectations that the Fed might pause for breath after hikes in June and July.

Benchmark 10-year yields gained to 2.8622%.

On Wall Street, all three main indexes closed lower, driven by healthcare, technology, energy and industrial sectors. The Dow Jones Industrial Average fell 0.67% to 32,990.12, the S&P 500 lost 0.63% to 4,132.15 and the Nasdaq Composite dropped 0.41% to 12,081.39.

The US dollar strengthened across the board on Tuesday as Treasury yields climbed and worries over a further acceleration in global inflation depressed investors’ risk appetite.

The dollar index, which tracks the greenback against six major currencies, was up 0.345% to 101.770. The euro was down 0.41% to USD 1.0733.

Safe-haven gold fell 1%, making it the second consecutive month of declines, pressured by a rise in the dollar and US Treasury yields that dented the metal’s appeal despite concerns over surging inflation.

Spot gold dropped 1.0% to USD 1,837.30 an ounce. US gold futures fell 0.99% to USD 1,833.00 an ounce.

(Reporting by Chibuike Oguh in New York; Editing by Nick Zieminski and Will Dunham)

2024 Mid-Year Economic Briefing: Navigating the Easing Cycle

Investing with Love: A Mother’s Guide to Putting Money to Work

Investor Series: An Introduction to Estate Planning

Inflation Update: Weak demand softens shocks

Monthly Economic Update: Fed cuts incoming