Latest news with #CaixinPMI
Business Times
01-08-2025
- Business
- Business Times
Singapore factory activity slips into contraction, but electronics PMI maintains growth
[SINGAPORE] The Republic's manufacturing sector slipped back into contraction in July, even as the key electronics segment continued to expand. The purchasing managers' index (PMI) fell to 49.9, a 0.1 point dip from June, according to data released on Friday (Aug 1) by the Singapore Institute of Purchasing and Materials Management (SIPMM). A reading of 50 and above indicates expansion, while one below 50 indicates decline. In contrast, the linchpin electronics sector continued to gain ground, with its PMI inching up 0.1 point to 50.2, marking a second consecutive month of growth. Commenting on the overall manufacturing performance, SIPMM executive director Stephen Poh said: 'Anecdotal evidence suggests that local manufacturers remained concerned about the uncertain global trade policy and tariffs, and many companies have held back their investment and hiring plans.' The report attributed the electronics sector's improved showing to a faster pace of expansion in new orders, new exports, factory output and input purchases. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up DBS senior economist Chua Han Teng said the divergence between the manufacturing and electronics PMIs 'reflects the prevailing heightened uncertainty in the external environment, amid the ongoing US tariff roller coaster'. The direct impact on Singapore will likely be contained, given that its tariff rate may remain unchanged at 10 per cent, he said. But the city-state's exports and economy could still face indirect negative effects through trade linkages with key partners, he added. OCBC chief economist Selena Ling similarly cautioned that front-loading effects may soon taper off, with 'potential implications for external orders and global supply chain recalibration'. She expects this dissipation to take place in the second half of the year, potentially slowing manufacturing momentum. On the electronics sector, both economists noted that it remains vulnerable to potential US levies. Ling said that the imposition of sectoral tariffs on semiconductors and other electronics goods could weigh on the growth trajectory. Regional trends Singapore's readings were part of a regional picture of manufacturing weakness. China's official PMI dropped to 49.3 in July from 49.7 the month before. This suggests a likely slowdown in growth momentum at the start of Q3, as the effects of export front-loading and fiscal stimulus wane, said Barclays economists Zhou Yingke, Zhang Ying and Chang Jian. China's Caixin PMI, which tracks smaller private manufacturers, has been discontinued, with the June reading of 50.4 being the final one. PMI readings for both Indonesia and Malaysia improved, but remained in contraction territory. Indonesia's PMI rose to 49.2 from 46.9, while Malaysia's climbed to 49.7 in July, up from 49.3 in June. But Thailand extended its expansion streak for a third straight month, with its PMI rising 0.2 point to 51.9.
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Business Standard
04-07-2025
- Business
- Business Standard
Silver price outlook: White metal may rise to $40 level; check key levels
Performance: On July 3, spot silver traded between $36.34 and $37.07. At the time of writing, the gray metal was trading at 36.85, up around 0.82 per cent on the day. The MCX September silver contract at ₹1,08,200 was up around 0.6 per cent. Data roundup: US nonfarm payroll (June) was largely reassuring as US employees added 1,47,000 jobs against the expectation of 1,06,000 jobs, which belied the fears of job losses as portrayed by ADP report released on Wednesday. Two-month payroll net revision stood at 16,000 as unemployment rate unexpectedly slid from 4.2 per cent to 4.1 per cent Vs the estimate of 4.3 per cent. However, the decline in unemployment rate has been driven by jobseekers, especially foreigners, leaving the workforce pool due to deportation, lack of job opportunities, etc. Labour force participation rate edged lower from 62.4 per cent to 62.3 per cent (forecast 62.4 per cent). Average hourly earnings rose 0.2 per cent m-o-m and 3.7 per cent against the respective forecasts of 0.3 per cent and 3.80 per cent. ISM Services Index crept back into expansion territory after a month as the largest component of the US economy posted a reading of 50.8; thus, beating the estimate of 50.6 as new orders expanded, though services employment contracted more than expected. The Eurozone's composite PMI data (June final) rose to 50.60, fastest since March, while China's Caixin PMI composite slowed down from 51.10 to 50.60 (forecast 50.90). Tariff developments: US Treasury Secretary Bessent said on July 3 that President Trump will decide whether to extend the July 9 tariff hike deadline. Earlier on July 2, the US and Vietnam finalised a trade deal in principle under which Vietnam will pay 20 per cent tariffs on its US exports, whereas the US will pay 0 per cent tariff on its exports to Vietnam. In addition, the US imposed a 40 per cent tariff rate on Vietnam's transhipments which is likely to make Chinese goods exported through Vietnam to US costlier. It is to be noted that a significant share of Vietnam's exports to the US includes goods like air pods, phones, etc assembled with Chinese parts in Vietnam's factories. As per Lowly Institute (Sydney) 28 per cent of Vietnamese exports to the US were made up of Chinese components in 2022. Chinese exports to Southeast Asia have surged this year. China is assessing the US-Vietnam deal and warned against clauses harming its business interests. China is speeding up approving rate earth exports to European companies. Trump scores a major economic policy victory: The White House passed Trump's $3.4 trillion tax cut and spending bill, which is positive for silver on deficit concerns. Dollar Index and yields: US Dollar Index fell to a fresh cycle low of 96.377, lowest since February 2022, on July 1 on Fed rate cut notions. The index, at the time of writing, was hovering around 97.14, up nearly 0.5 per cent on the day as US data boosted the Greenback. US 10-year yields, which slumped to 4.18 per cent on July 1, lowest since May, rose for the third straight day, and was noted at 4.35 per cent, up nearly 2 per cent on the day, as July rate cut hopes faded on stronger than expected US job and ISM services report. Total known global silver ETF holdings at 773.283 MOz are at nearly 3-year high as holdings are up nearly 8 per cent year-to-date (Y-T-D). Silver Institute's deficit forecast: The Silver Institute sees the silver market registering a deficit of 117.60 MOz in 2025, which will be nearly 21 per cent smaller than the estimated 2024 deficit. Outlook: Positive surprise in the US, European and Chinese PMIs along with a somewhat encouraging US nonfarm payroll report will support the metal. Risk appetite is expected to be healthy unless tariff frictions come to the fore yet again. Positive ETF inflow is a crucial bullish factor. Silver is expected to rise to $40 level (₹117,000) in the coming weeks unless risk appetite gets impaired due to tariff issues.
Economic Times
03-07-2025
- Business
- Economic Times
Tata Steel shares rally 5.5% in 2 days on China-fueled metals rally, upbeat UK business outlook
Shares of Tata Steel climbed as much as 1.7% on Thursday, extending a two-day rally to 5.5%, buoyed by firm global cues, a rebound in metal prices, and optimism surrounding the company's UK operations. ADVERTISEMENT The stock has surged over 7% in the past week and is up 21% in the last six months, even as it remains 4% lower on a one-year basis. Tata Steel shares rose over 3% on Wednesday, tracking a broader uptrend in global steel futures after improved factory data from China signaled a recovery in manufacturing output. That rally continued on Thursday as the stock touched an intraday high on the BSE. Wednesday's gains came after China's factory activity returned to expansion in June. Official PMI and Caixin PMI both showed the highest output readings since November 2024. This lifted global sentiment, with the most-traded September iron ore contract on China's Dalian Commodity Exchange rising 1.69% to 722.5 yuan ($100.81) per metric benchmark August contract on the Singapore Exchange rose 1.82% to $94.9 a ton. Steel futures on the Shanghai Futures Exchange also advanced, with rebar gaining 2.61%, hot-rolled coil up 2.24%, wire rod rising 1.03%, and stainless steel climbing 1.08%. Other Indian metal stocks also advanced on Thursday, buoyed by positive global cues. The Nifty Metal Index rose 0.8%, with NMDC, NALCO, Hindalco, and Jindal Stainless gaining between 1% and 2%. ADVERTISEMENT Investor sentiment was further lifted by comments from Tata Group Chairman Natarajan Chandrasekaran at the company's annual general meeting. Addressing shareholder queries, Chandrasekaran said Tata Steel's UK operations are expected to perform 'much better this year compared to last year — it will definitely be Ebitda-positive.' ADVERTISEMENT The company's UK business, which has historically weighed on profitability, is now expected to turn Ebitda-positive in the financial year 2025–26 (FY26), with potential for profitability in subsequent Steel's technical indicators continue to signal bullish momentum. The stock is trading above all eight of its key simple moving averages, from the 5-day to the 200-day, pointing to sustained strength across short-term to long-term charts. ADVERTISEMENT The Relative Strength Index (RSI) stands at 69.8, just shy of the overbought threshold of 70, suggesting strong buying interest. Meanwhile, the Moving Average Convergence Divergence (MACD) is at 1.9 and remains above both the center and signal lines, reinforcing the ongoing bullish Steel shares have gained 8% over the past three months and 5% in the last month. ADVERTISEMENT Also read | Tata Steel gets show cause notice over input tax credit of Rs 1,000 cr availed during FY19-23 (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
03-07-2025
- Business
- Time of India
Tata Steel shares rally 5.5% in 2 days on China-fueled metals rally, upbeat UK business outlook
Live Events UK operations expected to turn around Technicals point to strength (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Tata Steel climbed as much as 1.7% on Thursday, extending a two-day rally to 5.5%, buoyed by firm global cues, a rebound in metal prices, and optimism surrounding the company's UK operations The stock has surged over 7% in the past week and is up 21% in the last six months, even as it remains 4% lower on a one-year basis. Tata Steel shares rose over 3% on Wednesday, tracking a broader uptrend in global steel futures after improved factory data from China signaled a recovery in manufacturing output. That rally continued on Thursday as the stock touched an intraday high on the gains came after China's factory activity returned to expansion in June. Official PMI and Caixin PMI both showed the highest output readings since November 2024. This lifted global sentiment, with the most-traded September iron ore contract on China's Dalian Commodity Exchange rising 1.69% to 722.5 yuan ($100.81) per metric benchmark August contract on the Singapore Exchange rose 1.82% to $94.9 a ton. Steel futures on the Shanghai Futures Exchange also advanced, with rebar gaining 2.61%, hot-rolled coil up 2.24%, wire rod rising 1.03%, and stainless steel climbing 1.08%.Other Indian metal stocks also advanced on Thursday, buoyed by positive global cues. The Nifty Metal Index rose 0.8%, with NMDC, NALCO, Hindalco, and Jindal Stainless gaining between 1% and 2%.Investor sentiment was further lifted by comments from Tata Group Chairman Natarajan Chandrasekaran at the company's annual general meeting. Addressing shareholder queries, Chandrasekaran said Tata Steel's UK operations are expected to perform 'much better this year compared to last year — it will definitely be Ebitda-positive.'The company's UK business, which has historically weighed on profitability, is now expected to turn Ebitda-positive in the financial year 2025–26 (FY26), with potential for profitability in subsequent Steel's technical indicators continue to signal bullish momentum. The stock is trading above all eight of its key simple moving averages, from the 5-day to the 200-day, pointing to sustained strength across short-term to long-term Relative Strength Index (RSI) stands at 69.8, just shy of the overbought threshold of 70, suggesting strong buying interest. Meanwhile, the Moving Average Convergence Divergence (MACD) is at 1.9 and remains above both the center and signal lines, reinforcing the ongoing bullish Steel shares have gained 8% over the past three months and 5% in the last month.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Business Recorder
02-07-2025
- Business
- Business Recorder
Iron ore futures rise on supply dip
SINGAPORE: Iron ore futures climbed on Wednesday as shipments from top exporters Australia and Brazil dropped, though persistent weakness in China's property market capped gains. The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) traded 0.77% higher at 716 yuan ($99.91) a metric ton, as of 0357 GMT. The benchmark August iron ore on the Singapore Exchange was up 0.86% at $94 a ton. On the supply front, iron ore shipments from top producers Australia and Brazil have declined, and global iron ore shipments decreased slightly, broker Everbright Futures said in a note. Hot metal output, a gauge of iron ore demand, continued to increase month-on-month, Everbright said. China's factory activity returned to expansion in June, with official PMI and Caixin PMI data showing the highest output reading since November 2024. Still, resale home prices in China fell at a faster pace in June, while growth new home prices slowed, underscoring persistent weakness in the country's property market. Meanwhile, analysts at ANZ noted that a proposal by the China Iron & Steel Association to restrict exports of certain steel products could keep more supply within the country, potentially pressuring prices. Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 0.92% and 0.72%, respectively. Steel benchmarks on the Shanghai Futures Exchange climbed. Rebar rose 1.44%, hot-rolled coil gained 1.12%, wire rod inched 0.45% higher and stainless steel was up 1.04%.
