Latest news with #SYDNEY
Yahoo
2 days ago
- Business
- Yahoo
Asia shares, yen weather Japan uncertainty as earnings loom
By Wayne Cole SYDNEY (Reuters) -Asian shares and the yen held their ground on Monday as Japanese elections proved bad for the government but no worse than already priced in, while Wall Street futures braced for earnings from the first of the tech giants. Investors were also hoping for some progress in trade talks ahead of President Donald Trump's August 1 tariff deadline, with U.S. Commerce Secretary Howard Lutnick still confident a deal could be reached with the European Union. There were reports Trump and Chinese leader Xi Jinping were closer to arranging a meeting, though likely not until October at the earliest. In Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as a tariff deadline looms. Ishiba expressed his intention to stay in the position, which along with a market holiday, limited the reaction and the yen was 0.4% firmer at 148.29 to the dollar. "Ishiba will try to govern with support from some within the opposition, but this likely means a looser fiscal policy and is not good news for bond yields," said Rodrigo Catril, a senior FX strategist at NAB. "History also suggests that domestic political uncertainty tends to keep the BOJ on the side-lines, so the prospect of rate hikes is now set to be delayed for a little bit longer." The Bank of Japan still has a bias to raise rates further but markets are pricing little chance of a move until the end of October. While the Nikkei was shut, futures traded up at 39,875 and just above the cash close of 39,819. MSCI's broadest index of Asia-Pacific shares outside Japan was flat, while South Korean stocks added 0.4%. MEGA CAPS KICK OFF S&P 500 futures and Nasdaq futures both edged up 0.1%, and are already at record highs in anticipation of more solid earnings reports. A host of companies reporting this week include Alphabet and Tesla, along with IBM. Investors also expect upbeat news for defence groups RTX, Lockheed Martin and General Dynamics. Ramped up government spending across the globe has seen the S&P 500 aerospace and defence sector rise 30% this year. In bond markets, U.S. Treasury futures held steady having dipped late last week after Federal Reserve Governor Christopher Waller repeated his call for a rate cut this month. Most of his colleagues, including Chair Jerome Powell, have argued a pause is warranted to judge the true inflationary impact of tariffs and markets imply almost no chance of a move in July. A September cut is put at 61%, rising to 80% for October. Powell's reticence on rates has drawn the ire of Trump who threatened to fire the Fed chief, before backing down. The spectre of a potential political appointee who would seek to ease policy sharply has investors on edge. The European Central Bank meets this week and is expected to hold its rates steady at 2.0% following a string of cuts. "The press conference will likely keep highlighting uncertainty and need to wait for tariff negotiations to conclude before deciding the next step," said analysts at TD Securities in a note. "Similarly, its 'meeting-by-meeting' language would be retained in the release." The euro was unchanged at $1.1630 in early trading, having dipped 0.5% last week and away from its recent near-four-year top of $1.1830. The dollar index was a fraction lower at 98.40. In commodity markets, gold was little changed at $3,348 an ounce with all the recent action in platinum which last week hit its highest since August 2014. [GOL/] Oil prices were caught between the prospect of increased supply from OPEC+ and the risk European Union sanctions against Russia for its war in Ukraine could curb its exports.[O/R] Brent edged up 0.1% to $69.36 a barrel, while U.S. crude added 0.1% to $67.39 per barrel. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
4 days ago
- Business
- Reuters
Australia delivers Abrams tanks to Ukraine for war with Russia
SYDNEY, July 19 (Reuters) - Australia's government said on Saturday it had delivered M1A1 Abrams tanks to Ukraine as part of a A$245 million ($160 million) package to help the country defend itself against Russia in their ongoing war. Australia, one of the largest non-NATO contributors to Ukraine, has been supplying aid, ammunition and defence equipment since Moscow invaded its neighbour in February 2022. Ukraine has taken possession of most of the 49 tanks given by Australia, and the rest will be delivered in coming months, said Defence Minister Richard Marles. 'The M1A1 Abrams tanks will make a significant contribution to Ukraine's ongoing fight against Russia's illegal and immoral invasion," Marles said in a statement. The tanks formed part of the A$1.5 billion ($980 million) that Canberra has provided Ukraine in the conflict, the government said. Australia has also banned exports of alumina and aluminium ores, including bauxite, to Russia, and has sanctioned about 1,000 Russian individuals and entities. Australia's centre-left Labor government this year labelled Russia as the aggressor in the conflict and called for the war to be resolved on Kyiv's terms. ($1 = 1.5366 Australian dollars)
Yahoo
4 days ago
- Business
- Yahoo
Global shares firm as US consumer holds up, yen weak ahead of Japan vote
By Iain Withers and Stella Qiu LONDON/SYDNEY (Reuters) -Global shares were on track for weekly gains on Friday as robust U.S. economic data and corporate earnings this week tempered tariff concerns for now, while the yen headed toward a second successive weekly loss ahead of a crunch legislative election in Japan on Sunday. Stronger than expected U.S. retail sales and jobless claims data, suggesting modest improvement in economic activity, helped to push the S&P 500 and the Nasdaq to close at record highs on Thursday. MSCI's broadest index for global stocks edged up 0.2% on Friday and was on track for a 0.6% weekly gain. Asian shares outside Japan were up 0.9% on the day, while European stocks were broadly flat. Wall Street futures were also flat ahead of the open. A solid start to earnings season in the U.S. - with companies including streaming giant Netflix beating forecasts - is supporting investor confidence, said Eren Osman, managing director of wealth management at Arbuthnot Latham. "We're pretty constructive on the (U.S.) macro backdrop... We do see some scope for slowing growth, but not for anything material and that's giving the markets quite a nice bounce," Osman said, adding the potential full impact of U.S. tariffs was still in focus. Alphabet and Tesla are among the companies reporting half-year results next week, which will further test the market mood. Oil prices also gained on Friday as investors weighed new European Union sanctions against Russia, which include measures aimed at dealing further blows to Russia's oil and energy industries. [O/R] U.S. crude rose 1% to $68.19 per barrel and Brent was up 0.8% to $70.06 a barrel. The yen was broadly flat at 148.5 per dollar but was about 0.7% weaker this week after polls showed Japanese Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house election on Sunday. Data on Friday showed Japan's core inflation slowed in June due to temporary cuts in utility bills but stayed above the central bank's 2% target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba's declining popularity. "If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence," said Jayati Bharadwaj, head of FX strategy at TD Securities. "JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump." Elsewhere, the U.S. dollar index slipped 0.2% to 98.285, but was still heading for a second successive weekly gain of about 0.4%, bouncing from a 3-1/2 year low hit over two weeks ago. Fed Governor Christopher Waller said on Thursday he continues to believe the central bank should cut interest rates at the end of this month, though most officials who have spoken publicly have signalled no desire to move. U.S. Treasury yields were slightly lower. Benchmark 10-year yields dropped nearly 3 basis points to 4.44%, while two-year yields also edged 3 bps lower to 3.89%. Spot gold prices gained 0.4% to $3,353 an ounce. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
4 days ago
- Business
- Reuters
Global shares firm as US consumer holds up, yen weak ahead of Japan vote
LONDON/SYDNEY, July 18 (Reuters) - Global shares were on track for weekly gains on Friday as robust U.S. economic data and corporate earnings this week tempered tariff concerns for now, while the yen headed toward a second successive weekly loss ahead of a crunch legislative election in Japan on Sunday. Stronger than expected U.S. retail sales and jobless claims data, suggesting modest improvement in economic activity, helped to push the S&P 500 and the Nasdaq to close at record highs on Thursday. MSCI's broadest index for global stocks edged up 0.2% on Friday and was on track for a 0.6% weekly gain. (.MIWD00000PUS), opens new tab Asian shares outside Japan were up 0.9% on the day (.MIAPJ0000PUS), opens new tab, while European stocks were broadly flat. Wall Street futures , were also flat ahead of the open. A solid start to earnings season in the U.S. - with companies including streaming giant Netflix (NFLX.O), opens new tab beating forecasts - is supporting investor confidence, said Eren Osman, managing director of wealth management at Arbuthnot Latham. "We're pretty constructive on the (U.S.) macro backdrop... We do see some scope for slowing growth, but not for anything material and that's giving the markets quite a nice bounce," Osman said, adding the potential full impact of U.S. tariffs was still in focus. Alphabet (GOOGL.O), opens new tab and Tesla (TSLA.O), opens new tab are among the companies reporting half-year results next week, which will further test the market mood. Oil prices also gained on Friday as investors weighed new European Union sanctions against Russia, which include measures aimed at dealing further blows to Russia's oil and energy industries. U.S. crude rose 1% to $68.19 per barrel and Brent was up 0.8% to $70.06 a barrel. The yen was broadly flat at 148.5 per dollar but was about 0.7% weaker this week after polls showed Japanese Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house election on Sunday. Data on Friday showed Japan's core inflation slowed in June due to temporary cuts in utility bills but stayed above the central bank's 2% target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba's declining popularity. "If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence," said Jayati Bharadwaj, head of FX strategy at TD Securities. "JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump." Elsewhere, the U.S. dollar index slipped 0.2% to 98.285, but was still heading for a second successive weekly gain of about 0.4%, bouncing from a 3-1/2 year low hit over two weeks ago. Fed Governor Christopher Waller said on Thursday he continues to believe the central bank should cut interest rates at the end of this month, though most officials who have spoken publicly have signalled no desire to move. U.S. Treasury yields were slightly lower. Benchmark 10-year yields dropped nearly 3 basis points to 4.44%, while two-year yields also edged 3 bps lower to 3.89%. Spot gold prices gained 0.4% to $3,353 an ounce.
CNA
4 days ago
- Business
- CNA
Global shares firm as US consumer holds up, yen weak ahead of Japan vote
LONDON/SYDNEY :Global shares were on track for weekly gains on Friday as robust U.S. economic data and corporate earnings this week tempered tariff concerns for now, while the yen headed toward a second successive weekly loss ahead of a crunch legislative election in Japan on Sunday. Stronger than expected U.S. retail sales and jobless claims data, suggesting modest improvement in economic activity, helped to push the S&P 500 and the Nasdaq to close at record highs on Thursday. MSCI's broadest index for global stocks edged up 0.2 per cent on Friday and was on track for a 0.6 per cent weekly gain. Asian shares outside Japan were up 0.9 per cent on the day, while European stocks were broadly flat. Wall Street futures were also flat ahead of the open. A solid start to earnings season in the U.S. - with companies including streaming giant Netflix beating forecasts - is supporting investor confidence, said Eren Osman, managing director of wealth management at Arbuthnot Latham. "We're pretty constructive on the (U.S.) macro backdrop... We do see some scope for slowing growth, but not for anything material and that's giving the markets quite a nice bounce," Osman said, adding the potential full impact of U.S. tariffs was still in focus. Alphabet and Tesla are among the companies reporting half-year results next week, which will further test the market mood. Oil prices also gained on Friday as investors weighed new European Union sanctions against Russia, which include measures aimed at dealing further blows to Russia's oil and energy industries. U.S. crude rose 1 per cent to $68.19 per barrel and Brent was up 0.8 per cent to $70.06 a barrel. The yen was broadly flat at 148.5 per dollar but was about 0.7 per cent weaker this week after polls showed Japanese Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the upper house election on Sunday. Data on Friday showed Japan's core inflation slowed in June due to temporary cuts in utility bills but stayed above the central bank's 2 per cent target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba's declining popularity. "If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence," said Jayati Bharadwaj, head of FX strategy at TD Securities. "JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump." Elsewhere, the U.S. dollar index slipped 0.2 per cent to 98.285, but was still heading for a second successive weekly gain of about 0.4 per cent, bouncing from a 3-1/2 year low hit over two weeks ago. Fed Governor Christopher Waller said on Thursday he continues to believe the central bank should cut interest rates at the end of this month, though most officials who have spoken publicly have signalled no desire to move. U.S. Treasury yields were slightly lower. Benchmark 10-year yields dropped nearly 3 basis points to 4.44 per cent, while two-year yields also edged 3 bps lower to 3.89 per cent.
