Inkhabar webdesk

By Gregor Stuart Hunter and Amanda Cooper SINGAPORE/LONDON (Reuters) -The dollar edged up on Monday, as investors hoped the U.S. would temper its latest escalation of the trade war with China after Friday's selloff, while political developments in France and Japan undermined the euro and the yen.  The dollar index, which measures the U.S. currency's performance against a basket of six others, was last up 0.2% at 99.2, recovering from declines late last week after U.S. President Donald Trump announced 100% tariffs on China. The broadside revived bad memories of Trump's Liberation Day rollout of sweeping tariffs in April and sparked a selloff in stocks and cryptocurrencies on Friday. TRUMP SOFTENS TONE "Certainly it's pretty nervous out there," said Tim Kelleher, head of institutional FX Sales at Commonwealth Bank in Auckland.  "If you look at the U.S. and China stuff, it looks like Trump has done a bit of a TACO again and softened his tone," he added, referring to a trading adage that "Trump always chickens out." After announcing the 100% tariffs on Friday, Trump said on Sunday: "Don’t worry about China, it will all be fine!" "Highly respected President Xi just had a bad moment," he posted on the Truth Social network. "He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!" U.S. Treasury Secretary Scott Bessent said on Monday he was confident the standoff could be "de-escalated", which curbed some of the dollar's gains. The euro was last down 0.2% at $1.1589 , up from a low of $1.1582 earlier. European markets broadly shrugged off the French presidency's announcement of Prime Minister Sebastien Lecornu's new cabinet lineup on Sunday, reappointing Roland Lescure, a close ally of Emmanuel Macron, as finance minister. Against the yen, the dollar was up 0.57% at 152.03 , below an earlier high of 152.46. A public holiday in Japan made for thinner trading. Markets meanwhile assessed the path ahead for new Liberal Democratic Party leader Sanae Takaichi after Komeito quit Japan's ruling coalition on Friday, dealing a blow to her hopes of becoming the first female prime minister of the world's fourth-largest economy. The offshore yuan recovered some stability to trade at 7.1416 per dollar, having reached a weak point of 7.144 overnight, after data showed China's export growth picked up pace in September. POSSIBLE CARRY TRADE IMPACT Even with sentiment on the up on Monday, analysts said the mood was fragile and currencies were likely prone to larger price swings.    "As we saw earlier this year neither side can tolerate such high tariffs for long and the comments from President Trump over the weekend again point towards a path for de-escalation," MUFG strategist Lee Hardman said. "As a result, the trade threats may just contribute a more volatile FX market in the near-term and trigger some unwind of carry trades," he added. Traders will often borrow in a low-yielding currency to invest in a higher-yielder, known as a carry trade. The Japanese yen and Swiss franc have typically been funding currencies and took a harder knock than others on Monday.  The Australian dollar, which tends to rally in a risk-on environment, rose 0.7% to $0.6517 , making it the best-performing major currency against the dollar on Monday. The pound, a fellow risk-on currency, was up 0.1% at $1.3347. (Reporting by Gregor Stuart Hunter; Editing by Shri Navaratnam, Jamie Freed, Aidan Lewis, Toby Chopra)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Manoj Kumar NEW DELHI (Reuters) -India and the United States are set to hold trade talks this week, with New Delhi pledging to import U.S. energy and gas as it aims to address Washington's concerns over its Russian oil purchases, an official said. Talks were suspended briefly in August after the Trump administration announced tariff hikes of up to 50% on Indian goods, accusing India of financing Russia's war in Ukraine by continuing to buy Moscow's oil despite western sanctions. However, discussions resumed in September after U.S. President Donald Trump struck a conciliatory tone in public remarks and spoke to Prime Minister Narendra Modi on the phone, raising hopes for a breakthrough.   The official, speaking on condition of anonymity, due to the sensitivity of the issue, said India was looking to increase purchases of energy and gas from the U.S.  The move follows U.S. ambassador-designate Sergio Gor's meetings over the weekend with Modi and later with Commerce Secretary Rajesh Agrawal on strengthening bilateral trade and investment. "During my visit to India, I met with Commerce Secretary Agrawal and discussed US-India economic ties, including increased investment in the United States," Gor said on 'X' on Sunday. Indian officials held "constructive" talks with U.S. counterparts in Washington last month, the government said, adding that both sides agreed to push for an early conclusion of a mutually beneficial trade deal. The U.S. tariff hikes have hurt Indian exports of textiles, leather goods, gems & jewellery, and food products, prompting the government to diversify markets and offer incentives to exporters. India's exports to the United States fell to $6.86 billion in August from $8.01 billion in July, trade ministry data showed, with exporters reporting further declines in September. Negotiations began in February 2025, targeting a deal to double bilateral trade to $500 billion by 2030. The two sides have held five rounds of trade talks, with the sixth – postponed in August – now expected to lead to the first phase of the deal next month, as agreed by Trump and Modi. India is seeking greater participation from private players, including U.S. firms, in its renewable and nuclear energy sectors. "Investments coming into our renewable energy sectors are an important area of our relationship (with the U.S.)," the official said, noting that New Delhi was open to buying more Liquefied Natural Gas (LNG) from the United States. When asked about the Trump administration's calls for greater Indian investment in the U.S., the source said New Delhi was not opposed and viewed overseas investments by Indian firms positively, similar to China’s approach. (Reporting by Manoj Kumar; writing by Shilpa Jamkhandikar; Editing by Sudipto Ganguly and Kate Mayberry)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Samuel Shen and Summer Zhen HONG KONG/SHANGHAI (Reuters) -A sharp sell-off in China stocks faded in choppy trading on Monday, allowing the market to trim early losses, as investors reassessed the impact of a renewed trade war between Washington and Beijing after taking profit to cut risks. Analysts and fund managers believe the market downside will be limited compared to the panic-selling seen in April, when U.S. President Donald Trump kicked off a global trade war with sweeping tariffs across the board. The Shanghai Composite closed down 0.2%, after falling as much as 2.5% in early trade. The blue-chip CSI300 Index was 0.5% lower. In Hong Kong, the Hang Seng benchmark tumbled as much as 3.5% before recovering some losses to end down 1.5%. The Hang Seng Tech index lost 1.8%. Defying the broader selloff, however, China's rare earth sector, which is at the centre of revived trade tensions, jumped more than 6% to a record high, while semiconductor stocks also gained 2.6%. Trump on Friday unveiled additional levies of 100% on China's U.S.-bound exports, along with new export controls on critical software by November 1, in a reprisal against China curbing its critical rare earth exports. Later he softened tones on Sunday, posting that everything would be fine and the U.S. did not want to "hurt" China. "President Trump reminded everyone that there are lots of uncertainties for markets," said Ben Bennett, head of investment strategy for Asia at L&G Asset Management, based in Hong Kong. He expects near-term wobbles in Chinese stocks after the strong rally of the past few months. The Shanghai composite hovered around a decade high level before the Monday retreat. The Hang Seng index has jumped 30% so far this year. "We believe this is a tactical escalation (by Beijing) to shape pre-summit bargaining, not a strategic decoupling," Morgan Stanley analysts said in a note, referring to a potential meeting between President Xi Jinping and Trump at an upcoming APEC summit in South Korea. An upbeat surprise in China's exports and imports data also helped lift investment sentiment. Investors should not be distracted by political headlines, said Yeang Cheng Ling, DBS's chief investment officer for North Asia. "We believe rationality will prevail at the end of it," he said. VOLATILITY SPIKES To be sure, markets are likely to remain anxious in the short term given the rising geopolitical tensions. An index tracking expected 30-day volatility in the benchmark Hang Seng surged 30% at one point on Monday to its highest level since April 2025, before easing slightly. Oriano Lizza, sales trader at CMC Markets in Singapore said the market is still digesting how long this saga will go on for, which "leaves the market on tenterhooks and very fragile at the moment". China's 30-year bond futures rose on Monday, indicating the rush for safe-havens. The yuan clawed back some of the losses that followed Trump's announcement on Friday, helped by stronger central bank guidance. Wang Yapei, a Shanghai-based hedge fund manager, expects the turbulence to be short-lived, betting China and the U.S. will eventually work through negotiations, as "the cost of large-scale conflict is too high for both powers." Beijing described Trump's latest tariffs on Chinese goods as hypocritical on Sunday but clarified that its export control is not an export ban and stopped short of imposing new levies on U.S. products. "This is a de-escalation move and will cushion the downside for Chinese markets," said Hong Hao, chief investment officer at Lotus Asset Management. Investors are likely to rotate from growth to value stocks in the coming weeks, he added. Charles Wang, chairman of Shenzhen Dragon Pacific Capital Management Co, said growing geopolitical uncertainty means China will likely further ease monetary policy to aid economic growth, supporting stocks. TACO AGAIN? China Merchants Securities said geopolitical tensions benefit Chinese sectors including artificial intelligence, robots, defence, innovative drugs and chipmaking. "Any correction would give long-term investors a chance to buy the stocks at lower prices," the brokerage said. But exporters sensitive to U.S. tariffs such as communications infrastructure, electric motors and electrical equipment, would be under pressure, analysts said. Many analysts, however, think the chance of a triple-digit tariff is slim. "This statement is more of Trump's signature negotiation tactic—applying maximum pressure to bolster bargaining leverage and force concessions during trade talks," Changjiang Securities said in a report. "It will likely again play out as TACO (Trump Always Chickens Out)." "In the near term, both sides are still reliant on one another…so we believe this latest escalation is more about posturing for incoming negotiations and meetings," said Lu Ting, Nomura's Chief China Economist, who sees "a decent chance" of a Xi-Trump in-person meeting during the APEC annual summit later this month. (Reporting by Summer Zhen in Hong Kong and Samuel Shen in Shanghai, Additional reporting by Rae Wee; Editing by Sam Holmes and Peter Graff)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Dhara Ranasinghe LONDON (Reuters) -World markets found steadier ground on Monday after being whipsawed by broadsides in the U.S.-China trade war, while gold hit new record highs in a sign that uncertainty remained high. While U.S. President Donald Trump had threatened 100% tariffs on China from November 1 and Beijing said it could take countermeasures, he sounded more conciliatory on Sunday, posting that the U.S. did not want to "hurt" China.  European shares were broadly higher, while U.S. stock futures also firmed although trading was subdued by a holiday in Japan and the United States.  France remained in the spotlight with reappointed prime minister Sebastien Lecornu facing pressure to get a budget deal across the line. "The stabilisation in markets is encouraging," said Rory McPherson, chief investment officer at Wren Sterling in London.  "Given everything that is going on with the (U.S. government) shutdown, and political turmoil in France and Japan, markets have been strong. A pullback would be healthy." Beijing defended on Sunday its curbs on exports of rare earth elements and equipment as a response to U.S. aggression, but stopped short of imposing new levies on U.S. products. Goldman Sachs chief economist Jan Hatzius said that while he still expected an extension of the current tariff pause, recent developments suggested a wider range of outcomes was possible. JAPANESE LEADERSHIP NOW IN DOUBT Japanese markets had their own problems with the ascension of new LDP leader Sanae Takaichi to prime minister now in doubt, contributing to a sharp rebound in the yen and a 5% dive in Nikkei futures on Friday. Japan's Nikkei was closed on Monday, while MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 1.5%. Chinese blue chips fell 0.5%, though the rare earth and semiconductor sectors both firmed. Data pointed to some resilience in trade with exports rising 8.3%, almost twice the forecast, and imports up strongly. And in a sign that global uncertainties remained strong, gold hit fresh record highs above $4,000 an ounce, while Asia stocks fell sharply.  BofA commodities analysts said in a note on Monday that they had raise their forecast for gold to $5,000 an ounce for next year from $4,400.  U.S. stock futures pointed to a rebound on Wall Street, with S&P 500 and Nasdaq stock futures up more than 1% each. While the New York Stock Exchange and Nasdaq are open for trade on Monday's Columbus Day holiday, bond markets are closed.  Earnings season kicks off this week with major banks reporting, including JPMorgan, Goldman Sachs, Wells Fargo and Citigroup. S&P 500 companies overall are expected to have increased earnings by 8.8% in the third quarter from a year earlier, according to LSEG IBES, and strong results will be needed to justify the market's high valuations. "Our guess is you might get, at least in the very near term, a more volatile and directionless environment for some of the risky assets. Ultimately, whether or not you go against the market in this environment depends on your conviction," said Homin Lee, senior macro strategist at Lombard Odier. FRANCE TURMOIL Politics cast a cloud over Europe as the French presidency announced Lecornu's new cabinet line-up on Sunday, reappointing Roland Lescure, a close ally of Emmanuel Macron, as finance minister. Lecornu will face a no-confidence vote most likely on Thursday and it's unclear if he has the votes needed to survive. France's 10-year bond yield was little changed at around 3.47% and French stocks rallied 0.5% in a sign that investors were holding on to hopes for some near-term political stability. "Even if, very big if, Lecornu now lasts longer in office than on his first attempt, he will face an uphill struggle to get a budget for 2026 through the divided parliament by the end of the year," said Holger Schmieding, chief economist at Berenberg.  Currency markets also saw some stabilisation after Friday's rush into the traditional safe havens of the Japanese yen and Swiss franc. The dollar rallied 0.6% to 152 yen, having slid 1.2% on Friday from a top of 153.29. The euro slipped 0.25% to $1.1586, while the dollar gained 0.5% on the Swiss franc to 0.8038. The dollar index was steady, after losing 0.6% on Friday. In bond markets, cash Treasuries were closed for a holiday, while government bond yields in Europe nudged up.  U.S. and European bond yields had hit multi-week lows in the wake of Trump's tariff threat on Friday , while investors had added to wagers on more rate cuts from the Federal Reserve. "Interestingly, the bond market held up on Friday and that was encouraging given the recent selloff in long-dated bonds," said Wren Sterling's McPherson. Futures implied around a 98% chance of a quarter-point cut from the Fed later this month, and a similar probability of another move in December. Fed Chair Jerome Powell has a chance to offer his guidance when he speaks on the economic outlook at the NABE annual meeting on Tuesday.  A host of other Fed members are appearing this week, along with a who's who of central bankers attending an IMF-World Bank meeting in Washington. Oil prices also regained some ground on hopes the U.S. and China would find some compromise on trade to avoid fresh tariffs. [O/R] Brent bounced 1.7% to $63.8 a barrel, while U.S. crude rose 1.9% to $60 per barrel. (Reporting by Dhara Ranasinghe in London and Wayne Cole in Sydney; Editing by Ros Russell)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)