GLOBAL FX-
Piyush Goyal, the interim finance minister,will present the 2019-20 budget to parliament in the absence of Finance Minister Arun Jaitley, who is currently in the United States for medical treatment.The government is set to step up rural welfare spending by 16 percent for the fiscal year beginning April to 1.3 trillion rupees ($18.25 billion), two government sources said, aiming to boost support in the countryside where more than two-thirds of India’s 1.3 billion people live.The budget, which is interim and is likely to be followed by a full one in July, is expected to project economic growth of around 7.5 percent for the next financial year, while expanding capital spending on railways, roads, ports by 7-8 percent, and estimating an increase in revenue of about 15 percent.
A U.S. trade delegation will visit China in mid-February for a new round of talks, President Donald Trump told Chinese Vice Premier Liu He, the official Xinhua news agency said on Friday.The delegation is to be led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, it added.Liu, who met Trump in Washington during a visit for trade talks, told him that Chinese President Xi Jinping was willing to stay in close touch with him, Xinhua said.Xi believed the two sides should strive to reach a mutually beneficial trade pact as soon as possible, Liu added.
On Wednesday, the U.S. central bank held interest rates steady as expected but discarded pledges of “further gradual increases” in interest rates, and said it would be “patient” before making any further moves.
Factory activity shrank across much of Asia in January, falling to the weakest in years in several countries and adding to worries that trade tariffs and cooling demand in China pose an increasing threat to global growth.The weak Purchasing Managers Index (PMI) readings reinforce expectations that central banks in Asia will put any further interest rate hikes on hold this year. In some countries, such as China, Australia and India, there is even chatter about potential rate cuts.Trade focused Asia appears to be suffering the most visible loss of momentum so far, but the euro zone economy is stuck in low gear and many emerging markets are sputtering.
China’s leader Xi Jinping told U.S. President Donald Trump in a letter that he hopes both sides will be able to meet each other halfway to reach a trade agreement before a March 1 deadline.The letter was read during a White House meeting on Thursday between Trump and China’s Vice Premier Liu He, who is in Washington trying to reach a deal that would ease trade tensions between the world’s two largest economies.
Japanese manufacturing activity grew at the slowest pace in 29 months in January as export orders shrank sharply, a business survey showed on Friday, adding to signs that the U.S.-China trade war is inflicting more pressure on the slowing global economy.Japan’s export-oriented economy is sensitive to changes in global demand, particularly in neighbouring China, its largest trading partner. The Sino-U.S. trade war has disrupted supply chains on both sides of the Pacific, particularly for electronics.Weaker demand from domestic and international customers prompted Japanese manufacturers to cut output for the first time in 2-1/2 years and to scale back purchases of raw materials and other inputs.
Japan’s jobless rate fell in December and the availability of jobs held steady, government data showed on Friday.The seasonally adjusted unemployment rate fell to 2.4 percent from 2.5 percent in November, matching the median estimate, figures from the Internal Affairs ministry showed.
South Korea’s exports shrank for a second straight month in January as prices of memory chips and petrochemical products weakened due to a slowdown in China and as the U.S.-Sino trade dispute wore on.Shipments from Asia’s fourth-largest economy declined 5.8 percent in annual terms, government data showed on Friday, pointing to heightened stress on the export-driven economy. The outcome was better than a 7.0 percent drop forecast.Imports fell 1.7 percent, also better than a 5.3 percent decline predicted in the poll. That resulted in the smallest trade surplus in nearly five years, of $1.34 billion, according to the Korea Customs Service.
The Australian and New Zealand dollars held steady versus the greenback on Friday, as the Federal Reserve’s more dovish stance and improved prospects for a U.S.-Sino trade deal boosted investor risk appetite.On Wednesday, the U.S. central bank held interest rates steady as expected but discarded pledges of “further gradual increases” in interest rates, and said it would be “patient” before making any further moves.
Venezuela is ramping up pressure on fuel suppliers to deliver cargoes to its state-run oil firm even if payment issues have not been sorted amid U.S. sanctions, while European clients put scheduled export shipments on hold.The country’s fuel stocks have drained further in recent days as domestic refineries produce little and PDVSA faces complications linked to new U.S. sanctions aimed at ousting President Nicolas Maduro from power.On Thursday, intelligence police and National Guard officials threatened to board a tanker docked at PDVSA’s Cardon port, on Venezuela’s western coast, to pressure the vessel’s crew to discharge diesel that had not been paid for by PDVSA and was sold by U.S. refiner Citgo Petroleum.
Asian shares backed away from four-month highs on Friday as a dismal survey on Chinese factory activity dulled optimism about the prospects for a Sino-U.S. deal on tariffs.MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1 percent, though that followed a stellar 7.2 percent gain in January.Japan’s Nikkei went flat, while Shanghai blue chips held onto a 0.4 percent gain.
Pakistan’s central bank raised its key policy rate by 25 basis points to 10.25 percent on Thursday in the face of high fiscal and current account deficits and continuing inflation pressure, governor Tariq Bajwa said.The move comes as Pakistan, which has opened talks with the International Monetary Fund about a possible bailout, faces a struggle to avoid a balance of payments crisis that has left it with growing debts and foreign exchange reserves sufficient only to cover two months of imports.
Gold fell on Friday as investors sought riskier assets amid optimism the United States and China may reach a trade deal but a pause in U.S. interest rate hikes put bullion on track for a second weekly increase.Spot gold fell 0.2 percent to $1,317.96 per ounce. Prices rose to $1,326.30, their highest since April 26, on Thursday and are set to gain 1.2 percent for the week.U.S. gold futures were down 0.1 percent at $1,317.80 per ounce.
Oil prices held steady on Friday, torn between hopes the United States and China could soon settle their trade disputes and new data raising fresh concerns over China’s economic slowdown.International Brent crude oil futures were at $60.87 per barrel at 0244, 3 cents aboe their last close.U.S. West Texas Intermediate (WTI) futures were at $53.70 per barrel, down 9 cents, or 0.2 percent their last settlement.Oil futures received support from a broader financial market rally, which saw Asian shares hit four-month highs on Friday on hopes the United States and China could strike a trade deal.In Venezuela, meanwhile, U.S. sanctions imposed on state oil firm PDVSA this week are keeping tankers stuck at ports and are expected to accelerate the supply drop in February.