Author: xPortfolios

A measure of Australian business activity eased in January as sales and profits softened, a survey showed on Tuesday, though confidence got a boost amid hopes for a near-term reduction in borrowing costs.The survey from National Australia Bank (NAB) showed its index of business conditions fell 3 points to +6 in January, reversing gains made the previous month. The volatile confidence index bounced to +4, from -2, the highest reading since October.The index of sales fell 4 points to +6, while profitability slid 6 points to -2 pointing to pressure on profit margins, particularly in the retail sector."Cost pressures remain elevated for businesses and are not being fully passed onto consumers, which may be weighing on profitability and therefore overall business conditions," said Alan Oster, chief economist at NAB.On the brighter side, the employment index added 1 point to a relatively healthy +5, continuing the outperformance of the labour market. Conditions worsened in the mining, finance and property sectors, while retail fell back after an upbeat December.There could be some relief ahead for firms and consumers as markets are wagering heavily the Reserve Bank of Australia will cut its 4.35% cash rate next week to reflect a marked slowdown in…

The dollar edged higher on Monday after U.S. President Donald Trump warned more tariffs were imminent including on steel and aluminium, although U.S. futures and European stocks shrugged off the looming levies and rose.Speaking to reporters on Air Force One on Sunday, Trump said he would announce on Monday 25% tariffs on all steel and aluminium imports into the U.S., and reveal other reciprocal tariffs soon afterwards.China's retaliatory tariffs on some U.S. exports take effect on Monday, with no sign as yet of progress towards a new trade arrangement between Beijing and Washington.Investors reacted by pushing the dollar slightly higher, with the index tracking the U.S. currency up just over 0.1% from Friday's close, at 108.21.It climbed 0.4% against Japan's yen , which enjoyed its best week since November last week as investors bet on more Bank of Japan rate hikes. The euro was broadly flat at $1.0321.The dollar rose against the currencies of commodity-exporting countries before moderating. The Canadian dollar was last around 0.3% lower."Much uncertainty about the nature, timing and magnitude of these tariffs looks likely to keep the dollar supported this week," said Chris Turner, global head of markets at European bank ING."If these reciprocal tariffs come…

Shares in European and Asian steelmakers fell on Monday after U.S. President Donald Trump said he would introduce 25% tariffs on all steel and aluminium imports within hours in addition to existing metals duties.As the risk mounts of a multi-front trade war, the European Union (EU) has flagged it may retaliate and Trump has promised further announcements on Tuesday or Wednesday of broader reciprocal tariffs to match those of countries importing U.S. goods.Speaking to reporters on his way to Sunday's NFL Super Bowl in New Orleans, Trump said he would announce the metals tariffs on Monday and the reciprocal tariffs soon afterwards, adding "if they charge us, we charge them".The largest sources of U.S. steel imports are Brazil, Canada and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.Meanwhile, Canada, whose extensive hydropower resources aid its metal production, accounted for 79% of U.S. primary aluminium imports in the first 11 months of 2024.During his first four-year term from 2017, Trump imposed tariffs of 25% on steel and 10% on aluminium.But he later granted several trading partners exemptions, including Australia, Brazil, Canada and Mexico, and his successor Joe Biden later negotiated duty-free quota…

Most major stock markets in the Gulf were flat to lower in early trade on Monday after U.S. President Donald Trump threatened more tariffs, including on steel and aluminium, that could spark inflation and limit the scope for interest rate cuts.Trump announced plans to impose 25% tariffs on all steel and aluminium imports to the U.S., effective immediately, with additional reciprocal tariffs to be made public on Tuesday or Wednesday.Raising the prospect of a full-scale trade war, German Chancellor Olaf Scholz said the European Union was prepared to retaliate "within an hour" if the U.S. imposed tariffs on European goods.China's retaliatory tariffs on select U.S. exports are set to kick in on Monday, with no indication of a breakthrough in the ongoing trade tensions.Saudi Arabia's benchmark index (.TASI) eased 0.1%, hit by a 2% fall in the country's biggest lender Saudi National Bank (1180.SE).Al Yamamah Steel Industries Co (1304.SE) also slid 5.3% - putting on course to be the index's biggest faller.In Abu Dhabi, the index (.FTFADGI) was flat.The Qatari index (.QSI) edged 0.1% higher, helped by a 0.4% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA).By contrast, United Development Company (UDCD.QA) dropped 1.3% after posting a sharp…

U.S. President Donald Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminum imports into the U.S., on top of existing metals duties. He also said he will announce reciprocal tariffs on Tuesday or Wednesday.Shares of steelmakers in Asia mostly fell on Monday, save for those with operations in the United States. The dollar rose and U.S. Treasury yields ticked higher.Here is what market participants are saying:DAMIAN ROONEY, INSTITUTIONAL SALES DIRECTOR, ARGONAUT, PERTH:"Trump and tariffs causing a huge amount of uncertainty, and no one likes that!"The market...is trying to digest Trump and the economy."CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE"These threats appear legitimate and within Trump's power to implement on the basis of national security. The old playbook can't be used because China is no longer a significant supplier of steel to the U.S. after the 2018 tariffs. Instead, the impact will be more pronounced on countries like Canada, Mexico, the EU, Japan, South Korea, Taiwan, and Brazil."The immediate concern, however, might not be inflation, as there could be counter effects such as demand slowdown. The bigger concern is the uncertainty and the shift towards a more protectionist world."TONY SYCAMORE, MARKET ANALYST, IG, SYDNEY"It's been…

New Zealand will relax visa rules to attract more foreign investors, in efforts to stimulate economic growth, its centre-right government said on Sunday.Immigration Minister Erica Stanford said the country's investor visa category would be made "simpler and more flexible" to encourage investors to choose New Zealand for their "capital, skills and international connections"."These changes will turbocharge our economic growth, bringing brighter days ahead for all Kiwis," Stanford said in a statement announcing that two new visa categories - for "higher-risk investments" and "mixed investments" - would be created.The changes, to take effect from April 1, follow the government's recent relaxation of visa rules allowing holidaymakers to work remotely while visiting the country, aimed at boosting its tourism sector.After slipping into a technical recession in the third quarter of 2024, the New Zealand government is seeking ways to bolster growth. In January, it announced plans to set up Invest New Zealand, part of the government's international economic development agency, to serve as a one-stop-shop for overseas investment.Source: Reuters.com

Canada's unemployment rate unexpectedly fell again and the economy posted solid job gains, data showed on Friday, in signs that joblessness was starting to ease from an eight-year peak, barring the pandemic years, in November.The January unemployment rate was 6.6%, a notch below the 6.7% seen in the prior month, and the economy added a net 76,000 jobs, down from a revised 91,000 job added in December but still a robust gain.Analysts polled by Reuters had forecast net additions of 25,000 jobs in January and an unemployment rate of 6.8%.This was the second month in a row that the unemployment rate, or the number of jobless people as a percentage of the total labor force, declined. However, the total number of unemployed people stayed at a high of 1.5 million and joblessness still continues to be elevated."This indicates that many unemployed people are facing continued difficulties finding employment, despite recent employment growth," Statscan said.Canada's economy has been teetering for most of last year, as large interest rate cuts failed to boost consumer spending and business investment.However, the central bank said last month that while the job market remained soft, there were signs of improvement, as a total of 200 basis…

Wall Street futures fell and the dollar rose after data on Friday showed the U.S. economy generated fewer jobs than expected in January, but more than initially thought in December, leaving the outlook for rates more or less unchanged.The Labor Department said the number of workers on nonfarm payrolls rose by 143,000 in January, below expectations for a rise of 170,000 and below December's upwardly revised 307,000.The employment report was distorted by annual benchmark revisions, new population weights and updates to the seasonal adjustment factors, the model the government uses to strip out seasonal fluctuations from the data.Economists polled by Reuters had already offered a wide range of forecasts for January's numbers, given the potential for distortion from cold weather across the country and the California wildfires.Futures on the S&P 500 and the Nasdaq were down 0.1-0.2% after the data, having traded flat on the day earlier, while the dollar rose against a basket of currencies."The Fed’s recent choice to halt its cutting pattern and keep interest rates where they are was largely prompted by robustness in the labour market and sticky inflation, so the softening we have seen today may prick up central bankers’ ears," Charles Schwab UK managing…

The U.S. economy created 598,000 fewer jobs in the 12 months through March than previously estimated, the Labor Department's Bureau of Labor Statistics (BLS) said on Friday.The final nonfarm payrolls benchmark revision was less than the 818,000 reduction the BLS estimated in August. The numbers are not seasonally adjusted.Economists had expected the level of employment over the 12-month period would be reduced by about 668,000 jobs following updates to the Quarterly Census of Employment and Wages data for the first quarter from which the BLS based the payrolls benchmark revision.Source: Reuters.com

Abu Dhabi index closed higher on Friday, in line with oil prices after new sanctions were imposed on Iran's crude exports, while Dubai index bucked the trend.Oil prices - a key catalyst for Gulf's financial market - drifted nearly 1% higher as the U.S. Treasury said on Thursday it was imposing new sanctions on individuals and tankers helping to ship millions of barrels of Iranian crude oil per year to China, in an incremental move to increase pressure on Tehran.Brent crude was up 0.9% to $74.96 a barrel by 1105 GMT.Abu Dhabi's benchmark index (.FTFADGI) rebounded on Friday with the index gaining 0.2% as the majority of stocks were trading in green territory.Adnoc Gas (ADNOCGAS.AD) climbed 2% and biggest developer Aldar Properties (ALDAR.AD) jumped 1.7% ahead of its earnings on Monday.Adnoc Gas reported $5 billion in full-year profit, up 13% year-on-year and hiked annual dividend by 5%.Among the gainers, Sharjah-based Dana Gas (DANA.AD) rose 0.5%, after the firm posted 15% growth in fourth-quarter net profit to 143 million dirhams ($38.94 million) and indicated it would resume a dividend payout.Separately, France and the United Arab Emirates agreed on Thursday to a framework accord for a 1 gigawatt data centre dedicated to…