GLOBAL NEWS-
The United States is expected to announce on Monday that all buyers of Iranian oil will have to end their imports shortly or face sanctions, a source familiar with the situation told Reuters, triggering about a 3 percent rise in crude prices.U.S. President Donald Trump has been clear to his national security team over the last few weeks that he wants the waivers to end, and National Security Adviser John Bolton has been working the issue within the administration.In November, the U.S. reimposed sanctions on exports of Iranian oil after President Trump unilaterally pulled out of a 2015 nuclear accord between Iran and six world powers.Global benchmark Brent crude oil futures rose by as much as 3.2 percent to $74.30 a barrel, the highest since Nov. 1, in early Asian trading on Monday in reaction to expectations of tightening supply. U.S. West Texas Intermediate futures climbed as much as 2.9 percent to $65.87 a barrel, its highest since Oct. 30.
Risk-taking has been the rage since the Federal Reserve quit hiking interest rates at the end of last year. U.S. stocks are back near record highs and investors are stockpiling the lowest-grade corporate bonds with only a smidgen of extra compensation for the added risk.That rebounding mood on Wall Street may be welcomed by a president that has been demanding the Fed cut rates after markets fell sharply last year, and complaining that even pausing at the current level is the wrong call.But if anything the ‘pause party’ on Wall Street makes it even less likely that the U.S. central bank will cut rates. Recent positive news on retail sales and exports, which have eased concerns of a sharply slowing economy, makes the case for a rate cut even weaker. Investors at least have gotten the message, and shifted from projecting a rate cut later this year to now putting the odds at only 50-50 that the Fed will move lower by early 2020.
Manufacturers in China facing trade barriers are deploying an array of moves to try to keep foreign customers - giving discounts, tapping tax breaks, trimming workforces and, occasionally, shifting production overseas to skirt tariffs.Tit-for-tat tariffs from the China-United States trade war have been costly for many. Adding to the strain on Chinese manufacturers have been European Union duties on Chinese products ranging from electric bikes to solar panels.March brought some encouraging news for manufacturers. Industrial output rose at its fastest rate since mid-2014 and exports rebounded more than expected, while first-quarter growth was better than expected.Still, some manufacturers who depend on U.S. sales are struggling. At the Canton Fair in southern China this past week, they put on a brave face, but feared they will need to take more measures to survive if Beijing and Washington fail to seal a trade deal.
Asian shares were steady on Monday as investors took stock of recent data suggesting global growth may be stabilising, while oil prices spiked on a report the U.S. is likely to ask all importers of Iranian oil to end their purchases or face sanctions.Brent futures rallied to a five-month high, after the Washington Post said U.S. Secretary of State Mike Pompeo will announce “that as of May 2, the State Department will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate.”The potential disruption to Iranian supplies are expected to add to an already tight oil market.“The U.S. chief Iran hawks indeed have the President’s ear as (Secretary of State) Pompeo and (National Security Advisor) Bolton are singularly focused on bringing Iran’s economy to its knees,” said Stephen Innes, head of trading at SPI Asset Management.
Japanese Prime Minister Shinzo Abe’s ruling bloc suffered two rare losses in by-elections on Sunday in an apparent warning from voters not to get complacent ahead of a national election for parliament’s upper house later this year.The defeats in the Sunday polls come after Japan’s Olympics minister, Yoshitaka Sakurada, resigned a year before the Tokyo Games for remarks that offended people affected by the massive earthquake and tsunami that triggered nuclear meltdowns in 2011. A vice transport minister also quit over a separate gaffe.
Japan’s top government officials vowed on Friday to stick to a planned sales tax hike in October, barring a big economic shock, putting an end to speculation that it could be delayed again.Koichi Hagiuda, acting secretary-general of Prime Minister Shinzo Abe’s Liberal Democratic Party (LDP), had said on Thursday the planned tax hike may be postponed depending on the results of the central bank’s next tankan business survey due in July.His comments fueled concerns about a further delay in Japan’s efforts to finance its bulging social security costs. The country has to support a fast-ageing population and constrain growing public debt - more than twice the size of its economy and the industrial world’s biggest.
the Reserve Bank of India is scheduled to conduct $5 billion dollar-rupee swap auction on Apr 23 following the success of the first round last month. Forex swaps will help inject liquidity and boost India's forex reserve.
India hopes the U.S. will allow its allies to continue to buy some Iranian oil instead of halting the purchases altogether from May, a source familiar with U.S.-India talks said on Monday.The United States is expected to announce on Monday that buyers of Iranian oil need to end imports soon or face sanctions, triggering a 3 percent jump in crude prices to their highest for 2019 so far.“They (the U.S. administration) have to take care of their allies, strategic partners. Under sanctions from the beginning, there was talk of a gradual reduction and not going to zero on one stroke,” said the source, who did not wish to be identified due to the sensitivity of the issue.India, Iran’s biggest oil client after China, has almost halved its Iran oil purchase since November. That was when Washington granted significant reduction exceptions (SREs) from sanctions to countries, including India.“Under SREs we hope they will give us relaxation and allow us to buy some Iranian oil,” the source added.Indian refiners have not yet placed orders to lift Iranian oil in May, pending clarity on whether Washington will extend the sanctions waiver.
Indonesia’s central bank will keep interest rates on hold on Thursday, a Reuters poll showed, though some economists say a rate cut to bolster economic growth is coming - and one sees a possible trim next month.A slowing global economy and halt of U.S. Federal Reserve policy tightening have shifted rate cut expectations in much of Asia to probable from possible.Indonesian central bank officials have noted that a steady rupiah, backed by strong capital inflows and benign inflation, support policy easing, but say a narrower current account deficit is needed before rate cuts.
Saudi Arabia is willing to compensate for any potential loss of crude supply if the U.S. ends waivers granted to buyers of Iranian oil, but the kingdom will assess the impact on the market before raising its output, a source familiar with Saudi thinking told on Monday.The United States is expected to announce on Monday that buyers of Iranian oil need to end imports soon or face sanctions, a source familiar with the situation told Reuters, triggering a 3 percent jump in crude prices to their highest so far this year.The source familiar with Saudi thinking said any action by the top oil exporter depends on the certainty of scrapping the waivers and its effect on the oil market.
Gold prices rebounded on Monday from a near four-month trough hit in the previous session as investors resumed trading after the Easter holiday, with the bullion gaining further traction on higher crude rates.Spot gold was up 0.4 percent at $1,279.48 per ounce, as of 0325 GMT, having touched $1,270.63 in the previous session - its lowest since Dec. 27, 2018.The metal dropped 1.2 percent in the previous week, marking a fourth consecutive weekly decline.U.S. gold futures were 0.5 percent higher at $1,281.70 an ounce.Gold prices last week have suffered from a very sharp decline, for now what is happening is just technical buying, with some people coming and pushing prices up.
Oil prices rallied by about 3 percent on Monday to their highest since late 2018 as the United States was set to announce that all imports of Iranian oil must end or be subject to sanctions.Brent crude futures rose as much as 3.3 percent to $74.31 a barrel, the highest since Nov. 1, before easing back to $73.82 by 0452 GMT, up 2.6 percent from their last close.U.S. West Texas Intermediate (WTI) crude futures climbed by as much as 2.9 percent to $65.87 per barrel, the most since Oct. 31, and were at $65.38 at 0452 GMT, up 2.6 percent from their last close.News that the United States is preparing to announce on Monday that current buyers of Iranian oil would no longer be given waivers to current sanctions was first reported on Sunday by Washington Post foreign policy and national security columnist Josh Rogin.