WORLDWIDE: HEADLINES
China’s industrial output growth slows in April, retail sales miss forecasts
China’s factory output growth slowed in April from the jump seen in the previous month while retail sales missed analyst expectations, indicating more pressure on the recovery in consumption.
Industrial production grew 9.8% in April from a year ago, slower than the 14.1% surge in March, National Bureau of Statistics data showed on Monday, but matching a consensus forecast by analysts from a Reuters poll.
Aluminium production in April rose 12.4% from March to a record monthly volume.
China’s economy showed a steady improvement in April, but new problems are also emerging, said Fu Linghui, an NBS spokesman, at a news briefing in Beijing on Monday.
“The foundations for the domestic economic recovery are not yet secure,” he said.
China’s surging growth figures in the first months of the year were boosted by the low comparison with an economy paralysed by COVID-19 in the same period a year before.
Retail sales rose 17.7% year-on-year in April, much weaker than a 24.9% uptick expected by analysts and down from the jump of 34.2% seen in March.
Consumption should maintain a steady recovery, said Fu.
Growth in sales of home appliances dropped particularly sharply in April from the month before, falling from 38.9% growth on year in March to 6.1%, NBS data showed.
Fixed asset investment increased 19.9% in the first four months from the same period a year earlier, versus a forecast 19.0% rise, slowing from January-March’s 25.6% increase.
Private-sector fixed-asset investment, which makes up around 60% of total investment, rose 21.0% in January-April, compared with a 26.0% jump for the first three months.
Full coverage: REUTERS
U.S. gasoline shortage eases, but pumps dry in some areas
Gasoline shortages that have plagued the U.S. East Coast slowly eased on Sunday, with 1,000 more stations receiving supplies as the country’s largest fuel pipeline network recovered from a crippling cyberattack.
The six-day closure of Colonial Pipeline’s 5,500-mile (8,900-km) system was the most disruptive cyberattack on record, preventing millions of barrels of gasoline, diesel and jet fuel from reaching fuel tanks throughout the eastern United States.
Thousands of gas stations ran dry as supplies failed to arrive and drivers fearing a prolonged outage filled tanks and jerry cans. Refiners and fuel distributors are racing to recover before the Memorial Day holiday weekend at the end of May, the traditional start of the peak-demand summer driving season.
“Colonial Pipeline is currently shipping at normal rates, based on shipper nominations,” company spokesman Eric Abercrombie said in an email. “It will take some time for the supply chain to fully catch up.”
In Washington, D.C., about 70% of stations were still empty, according to tracking firm GasBuddy.
Elsewhere, more than half of the stations were still out in North Carolina, while less than half of stations were without fuel in South Carolina, Maryland, Virginia and Georgia, GasBuddy data showed.
U.S. gasoline demand on Saturday dropped nearly 15% from a week earlier, according to GasBuddy, as drivers pulled back on fuel hoarding.
Widespread panic buying even caused shortages in some areas not served by the pipeline.
Average nationwide gasoline prices are at their highest since 2014, with a gallon of regular unleaded at $3.04 on Sunday, up from $2.96 a week ago, according to the American Automobile Association.
U.S. gasoline futures opened in Asian trade on Sunday at $2.1271 a gallon, down from a three-year high of $2.2170 a week ago, Refinitiv Eikon data showed.
Full coverage: REUTERS
WORLDWIDE: FINANCE / MARKETS
Asia shares left listless by mixed China data
Asian share markets turned mixed on Monday as data on Chinese retail sales missed expectations though industrial output stayed solid, while more evidence of global inflation pressures helped gold to a three-month peak.
Chinese retail sales rose 17.7% in April on a year ago, short of forecasts for a jump of 24.8%, while industrial output matched expectations with a rise of 9.8%.
The spread of the coronavirus was also a hindrance with Singapore to shut most schools from Wednesday after reporting the highest number of local infections in months.
Taiwan’s government on Monday had to reassure investors it would stabilize stock and foreign exchange markets if needed amid a spike in COVID-19 cases. Stocks there were still down 1.1%.
MSCI’s broadest index of Asia-Pacific shares outside Japan eked out a rise of 0.2%, nudging further away from a four-month trough hit last week.
Chinese blue chips proved resilient with a gain of 1.8%.
Japan’s Nikkei lost 0.7%, having also touched its lowest since early January last week. Data suggested inflation was a global phenomenon with Japan’s wholesale prices jumping 3.6% in April from a year earlier as rising energy and commodities costs ate into corporate margins.
S&P 500 futures and Nasdaq futures both eased 0.1%, following Friday’s rally.
The U.S. data calendar is light this week, putting the focus on minutes of the Federal Reserve’s last policy meeting for any clue when officials there might start to talk about tapering.
So far, most Fed members have been doggedly dovish on policy, arguing a spike in inflation was transitory, though there was a risk it could get baked into expectations.
Full coverage: REUTERS
Dollar fights for footing as Fed minutes eyed
The U.S. dollar found pockets of support in Asia on Monday, but struggled to post gains, as investors are heavily positioned for it to fall further while the U.S. Federal Reserve holds interest rates low and U.S. trade and current account deficits grow.
Easing commodity prices and virus outbreaks in Singapore and Taiwan – where COVID-19 had been contained – helped modest dollar gains of 0.2% against the Australian and New Zealand dollars in the early part of the Asia session.
The greenback also rose 0.1% against the euro and the yen. But it remains close to testing major support levels, which if broken could see a return to a downtrend that pressed it lower through April.
A dollar bounce that followed higher-than-expected inflation data last week has also faded as traders figure the Fed will keep rates low.
The dollar last traded at $1.2134 per euro and has support around $1.2179. The dollar index is likewise, at 90.389, just above key support at 89.677 and 89.206. It bought 109.45 yen and traded at $0.7758 per Aussie and $0.7228 per kiwi.
Fed minutes, from an April meeting that predated the data surprise on inflation last week, are due on Wednesday and are the next market focus for clues on the Fed’s thinking.
Speculators increased their bets against the dollar last week, mostly by adding to bets on the euro and to a lesser extent sterling as Britain and Europe head toward recovery.
Sterling was perched near a two-and-a-half-month high on Monday, at $1.4085, as Britain reopens its economy after a four-month COVID lockdown. read more
The dollar crept up 0.1% against the Chinese yuan to trade at 6.4424 ahead of industrial output and retail sales figures due mid-morning on Monday.
Elsewhere cryptocurrencies traded under pressure after another weekend bouncing around following tweets from Tesla boss Elon Musk. Bitcoin hit its lowest since February on Sunday after Musk hinted at Tesla possibly selling its holdings. read more
Bitcoin last traded 2% weaker at $45,302 and ether was 4% lower at $3,421.
Full coverage: REUTERS
Oil edges lower as COVID-19 restrictions in Asia fuel demand concerns
Oil prices edged lower on Monday as the recovery of a major U.S. pipeline network eased concerns over supply and a new wave of COVID-19 restrictions in Asia fuelled fears of lower demand.
Gasoline shortages that have plagued the U.S. East Coast slowly eased on Sunday, with 1,000 more stations receiving supplies as Colonial Pipeline’s 5,500-mile (8,900-km) system recovered from a crippling cyberattack.
Brent crude oil futures were down 8 cents, or 0.1%, at $68.63 a barrel as of 0036 GMT, and West Texas Intermediate (WTI) crude was down 7 cents, or 0.1%, at $65.30.
The two contracts jumped nearly 2.5% on Friday and managed to book a small gain last week, marking a third consecutive weekly increase.
“Oil prices are under pressure as a spike in the COVID-19 pandemic is spreading from India to other parts of Asia, which increased concerns over slower recovery in fuel demand,” said Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.
“We expect Brent prices to stay in a trading range this week, with support expected at around $63 a barrel,” he said.
Investors remained cautious on worries that the highly transmissible coronavirus variant first detected in India is spreading to other countries.
Meanwhile, U.S. energy firms added oil and natural gas rigs for a third week in a row as higher crude prices prompt some drillers to return to the wellpad, energy services firm Baker Hughes Co (BKR.N) said on Friday.
Full coverage: REUTERS
