Latest news with #SocieteGenerale
Zawya
a day ago
- Business
- Zawya
Dollar hovers near 3-1/2-year low with market focus on US rate cuts, euro area inflation
The U.S. dollar was just above its lowest level in 3-1/2 years against the euro and sterling on Friday, with traders ramping up bets on deeper U.S. rate cuts, but tempering expectations of an ECB rate cut on higher inflation numbers from France and Spain. The euro got a small uplift in early European trade after data showed French consumer prices rose more than expected in June, while Spain's 12-month EU-harmonised inflation also inched higher. "Hotter French services CPI and Spain core CPI cast doubts on further ECB easing," said Kenneth Broux, head of corporate research FX and rates at Societe Generale. "This week for (the) September meetings we've gone from -20bp to -27bp for the Fed and from -11bp to -13bp for the ECB," said Broux. Meanwhile, the latest U.S. personal consumption expenditures (PCE) data further weighed on the dollar in afternoon trading. U.S. consumer spending unexpectedly fell in May as the boost from the preemptive buying of goods like motor vehicles ahead of tariffs faded, while monthly inflation increases remained moderate. By 1244 GMT, the euro was 0.26% higher at $1.173, just a fraction away from the $1.1745 it hit in the previous session, its strongest level since September 2021. Meanwhile the Swiss franc was last at 0.7971 a dollar, rising to its strongest level in over a decade. With the geopolitical tremors of the Israel-Iran conflict receding after a ceasefire that appeared to be holding, market focus this week has been on U.S. monetary policy, particularly given speculation that U.S. President Donald Trump will announce the next Federal Reserve chair earlier than usual to undermine current Chair Jerome Powell. Powell, whose term ends in May, was also interpreted as being more dovish this week in testimony to U.S. Congress, adding to expectations of more rate cuts. Traders are now pricing in 64 basis points (bps) of easing this year versus 46 bps expected on Friday. "The sooner a replacement is announced for Powell, the sooner he could be perceived to be a 'lame duck'," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. Trump has not decided on a replacement for Powell and a decision is not imminent, a person familiar with the White House's deliberations told Reuters on Thursday. Elsewhere, the yen was unchanged at 144.47 a dollar, while sterling last fetched $1.3745, just below the October 2021 top of $1.37701 touched on Thursday. The dollar index, which measures the U.S. unit versus six other currencies, was lingering near its lowest since March 2022 at 97.114, on course for a 2.3% decline in June, its sixth straight month in the red. The index has dropped more than 10% this year as Trump's tariffs stoke U.S. growth worries, leading investors to look for alternatives. Investors are also looking for signs of progress on new trade deals ahead of the July 9 deadline for Trump's "reciprocal" tariffs as nations scramble to get an agreement over the line. German Chancellor Friedrich Merz said on Thursday the EU should do a "quick and simple" trade deal with the United States rather than a "slow and complicated" one. (Reporting by Ankur Banerjee in Singapore; Additional reporting by Liang-sa Loh and Faith Hung in Taipei; Editing by Jamie Freed, Christopher Cushing, Andrew Heavens and Rachna Uppal)
Arab News
3 days ago
- Business
- Arab News
French authorities raid SocGen offices for second day, source says
PARIS: French authorities searched Societe Generale's offices in Paris and Luxembourg for a second day, as part of a tax fraud investigation, a judicial source said on Wednesday. SocGen declined to comment. The raids are part of a preliminary investigation opened in 2024 into the French bank, led by the prosecution office, for 'tax fraud laundering,' 'organized or aggravated tax fraud laundering' and 'criminal conspiracy,' the same source said on Tuesday.
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Business Standard
4 days ago
- Business
- Business Standard
Shares rally, oil slumps as Iran-Israel ceasefire goes into effect
Oil tumbled 3 per cent, global shares surged and the dollar dropped on Tuesday as US President Donald Trump announced a ceasefire between Israel and Iran, a dramatic turnaround after the US bombed Iran's nuclear sites over the weekend. Brent futures had already slid 7per cent on Monday and US shares jumped after Iran made a token retaliation against a US base and signalled it was done for now. With the immediate threat to the vital Strait of Hormuz shipping lane seemingly over, the global benchmark touched its lowest since June 11 and was last at $69.11 a barrel, US crude futures dropped 3.2per cent to $66.32 a barrel. "Investors mostly shrugged at what appeared on the surface a seismic geopolitical event over the weekend and those who kept their nerve and held off from de-risking have so far been proven right," said Kenneth Broux, head of corporate research FX and rates at Societe Generale. Israeli Defence Minister Israel Katz saying he had ordered the military to strike Tehran in response to what he said were Iranian missiles fired in a violation of the ceasefire, did little to disrupt the mood. Iran said it had not violated the ceasefire. Risk assets rallied, with S&P 500 futures up 0.9per cent and Nasdaq futures 1.1per cent higher. Europe's Stoxx 600 gained 1.4per cent, with travel stocks including airlines surging 3.5per cent, while oil and gas names shed 2per cent. Earlier in the day, MSCI's broadest index of Asia-Pacific shares outside Japan jumped 2.2per cent, while Japan's Nikkei rallied 1.1per cent. But the positive news did not spill over into the bond market where the focus instead was on Germany's draft budget, which includes record investment, requiring higher borrowing. The impact was particularly felt on longer dated bonds. Germany's 30-year yield rose 8 basis points to 3.065per cent and its 10-year yield rose 5 bps to 2.60per cent. Those moves rippled across markets, with the US 10-year yield up 2 bps at 4.34per cent and Britain's 10-year yield up 2 bps to 4.51per cent, though increasing bets on US rate cuts this year kept US bonds in check. RATE CUTS APPROACHING? Investors are also keeping a close eye on remarks from Federal Reserve policymakers, who in aggregate have been nervous about giving any signs that rate cuts are imminent. However, Vice Chair for Supervision Michelle Bowman said on Monday the time to cut interest rates was getting nearer as risks to the job market may be on the rise. That followed Fed Governor Christopher Waller saying on Friday he would consider a rate cut at the July 29-30 meeting. Fed Chair Jerome Powell will appear before Congress later on Tuesday and, so far, has been more cautious about a near-term easing. Markets still only imply around a 22per cent chance the Fed will cut at its next meeting on July 30, but a September cut is near-to-fully priced. News of the ceasefire saw the dollar extend an overnight retreat and slip 0.77per cent to 145.0 yen, having come off a six-week high of 148 yen overnight. The euro rose 0.2per cent to $1.1602 on Tuesday, having gained 0.5per cent overnight. The yen and euro benefited from the slide in oil prices as both the EU and Japan rely heavily on imports of oil and liquefied natural gas, while the US is a net exporter. The risk-on mood saw gold prices ease 1.3per cent to $3,323 an ounce. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Gulf Today
4 days ago
- Business
- Gulf Today
Oil slumps, shares rally on Iran-Israel ceasefire
Oil tumbled nearly 4%, global shares surged and the dollar dropped on Tuesday as markets took heart from a ceasefire between Israel and Iran and shrugged off what US President Donald Trump said were violations by both sides. Brent futures had already slid 7% on Monday and US shares jumped after Iran made only a token retaliation against a US base to an attack over the weekend, and signalled it was done for now. With the immediate threat to the vital Strait of Hormuz shipping lane seemingly over, the Brent benchmark touched its lowest since June 11 and was last at $68.81 a barrel, down 3.7%. US crude futures dropped 3.7% to $65.91 a barrel. 'Investors mostly shrugged at what appeared on the surface a seismic geopolitical event over the weekend and those who kept their nerve and held off from de-risking have so far been proven right,' said Kenneth Broux, head of corporate research FX and rates at Societe Generale. While the ceasefire so far has seemed shaky - Trump said he was 'not happy' with either side for violating the truce, particularly with Israel - risk assets held onto their earlier gains. S&P 500 futures rose 0.8% and Nasdaq futures were 1% higher. Europe's Stoxx 600 gained 1.3%, with travel stocks including airlines surging 3.8%, while oil and gas names shed 2%. Earlier in the day, MSCI's broadest index of Asia-Pacific shares outside Japan jumped 2.2%, while Japan's Nikkei rallied 1.1%. A further sign of the sudden improvement in sentiment is that emerging market countries - from Mexico to Kazakhstan via Turkey - have rushed to issue debt in the past two days, as have many companies. But the positive news did not spill over into the bond market where the focus instead was on Germany's draft budget, which includes record investment, requiring higher borrowing. The impact was particularly felt on longer dated bonds. Germany's 30-year yield rose 8 basis points to 3.06% and its 10-year yield rose 5 bps to 2.60%. Those moves rippled across markets, with the US 10-year yield up 3 bps at 4.35% and Britain's 10-year yield up 2 bps to 4.51% , though increasing bets on US rate cuts this year kept US bonds in check. Investors are also keeping a close eye on remarks from Federal Reserve policymakers, who in aggregate have been nervous in recent months about giving any signs that rate cuts are imminent. However, Vice Chair for Supervision Michelle Bowman said on Monday the time to cut interest rates was getting nearer as risks to the job market may be on the rise. That followed Fed Governor Christopher Waller saying on Friday he would consider a rate cut at the July 29-30 meeting, though Atlanta Fed President Raphael Bostic told Reuters in a story published on Tuesday that the Fed need not cut interest rates with companies planning to raise prices later this year. Fed Chair Jerome Powell will appear before Congress later on Tuesday and, so far, has been more cautious about a near-term easing. Markets still only imply around a 20% chance the Fed will cut at its next meeting on July 30, but a September cut is near to fully priced. News of the ceasefire saw the dollar extend an overnight retreat and slip 0.8% to 144.9 yen, having come off a six-week high of 148 yen on Monday. The euro rose 0.2% to $1.1602 on Tuesday, having gained 0.5% overnight. The yen and euro benefited from the slide in oil prices as both the EU and Japan rely heavily on imports of oil and liquefied natural gas, while the US is a net exporter. The risk-on mood saw gold prices ease 1.4% to $3,319 an ounce. Copper prices hit their highest in almost two weeks on Tuesday as the dollar fell and the yuan strengthened after US President Donald Trump's announcement of a ceasefire between Israel and Iran. Three-month copper on the London Metal Exchange was up 0.7% at $9,730 a metric tone in official open-outcry trading after touching $9,760.50 for its highest since June 11 earlier in the session. Global markets largely ignored signs that the ceasefire could be fragile, with Trump accusing both Israel and Iran of violating the agreement on Tuesday. The metals market's attention was on continuing outflows from copper stocks in LME-registered warehouses, which combined with large holdings of cash copper contracts and warrants - title documents conferring ownership - to inflate premiums for near-term contracts. Reuters
CNA
4 days ago
- Business
- CNA
Oil slumps, shares rally on Iran-Israel ceasefire
SYDNEY/LONDON :Oil tumbled nearly 4 per cent, global shares surged and the dollar dropped on Tuesday as markets took heart from a ceasefire between Israel and Iran and shrugged off what U.S. President Donald Trump said were violations by both sides. Brent futures had already slid 7 per cent on Monday and U.S. shares jumped after Iran made only a token retaliation against a U.S. base to an attack over the weekend, and signalled it was done for now. With the immediate threat to the vital Strait of Hormuz shipping lane seemingly over, the Brent benchmark touched its lowest since June 11 and was last at $68.81 a barrel, down 3.7 per cent. U.S. crude futures dropped 3.7 per cent to $65.91 a barrel. [O/R] "Investors mostly shrugged at what appeared on the surface a seismic geopolitical event over the weekend and those who kept their nerve and held off from de-risking have so far been proven right," said Kenneth Broux, head of corporate research FX and rates at Societe Generale. While the ceasefire so far has seemed shaky - Trump said he was "not happy" with either side for violating the truce, particularly with Israel - risk assets held onto their earlier gains. S&P 500 futures rose 0.8 per cent and Nasdaq futures were 1 per cent higher. Europe's Stoxx 600 gained 1.3 per cent, with travel stocks including airlines surging 3.8 per cent, while oil and gas names shed 2 per cent. Earlier in the day, MSCI's broadest index of Asia-Pacific shares outside Japan jumped 2.2 per cent, while Japan's Nikkei rallied 1.1 per cent. A further sign of the sudden improvement in sentiment is that emerging market countries - from Mexico to Kazakhstan via Turkey - have rushed to issue debt in the past two days, as have many companies. But the positive news did not spill over into the bond market where the focus instead was on Germany's draft budget, which includes record investment, requiring higher borrowing. The impact was particularly felt on longer dated bonds. Germany's 30-year yield rose 8 basis points to 3.06 per cent and its 10-year yield rose 5 bps to 2.60 per cent. Those moves rippled across markets, with the U.S. 10-year yield up 3 bps at 4.35 per cent and Britain's 10-year yield up 2 bps to 4.51 per cent, though increasing bets on U.S. rate cuts this year kept U.S. bonds in check. RATE CUTS APPROACHING? Investors are also keeping a close eye on remarks from Federal Reserve policymakers, who in aggregate have been nervous in recent months about giving any signs that rate cuts are imminent. However, Vice Chair for Supervision Michelle Bowman said on Monday the time to cut interest rates was getting nearer as risks to the job market may be on the rise. That followed Fed Governor Christopher Waller saying on Friday he would consider a rate cut at the July 29-30 meeting, though Atlanta Fed President Raphael Bostic told Reuters in a story published on Tuesday that the Fed need not cut interest rates with companies planning to raise prices later this year. Fed Chair Jerome Powell will appear before Congress later on Tuesday and, so far, has been more cautious about a near-term easing. Markets still only imply around a 20 per cent chance the Fed will cut at its next meeting on July 30, but a September cut is near to fully priced. News of the ceasefire saw the dollar extend an overnight retreat and slip 0.8 per cent to 144.9 yen, having come off a six-week high of 148 yen on Monday. The euro rose 0.2 per cent to $1.1602 on Tuesday, having gained 0.5 per cent overnight. The yen and euro benefited from the slide in oil prices as both the EU and Japan rely heavily on imports of oil and liquefied natural gas, while the U.S. is a net exporter.
