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Stocks rebound, oil and gold retreat on tempered Mideast fears

2024-04-22T17:01:36+07:00

FILE PHOTO: A man walks under an electronic screen showing Japan's Nikkei share price index inside a conference hall 2022. REUTERS/Issei Kato/File Photo -

VOInews, TOKYO/LONDON : World stocks recovered some losses on Monday and bonds, oil and gold dipped as investors reversed some of their more defensive positions taken going into the weekend on fears of a wider Middle East conflict.

The week ahead is packed with corporate earnings, with 158 companies in the S&P 500 and 173 companies in the STOXX 600 reporting first quarter results this week according to data from LSEG workspace.

These include several big European banks, as well as U.S. tech giants Microsoft and Alphabet, with the latter in particular focus after chip maker Nvidia's 10 per cent drop on Friday, its biggest percentage fall in four years.

Crucial U.S. PCE inflation data, the Federal Reserve's preferred gauge, due Friday, finishes off the week. After CPI data earlier this month, markets currently see the first Fed rate cut coming in September.

Ahead of all that, shares rose on Monday, with the STOXX 600 up 0.25 per cent and S&P 500 futures 0.36 per cent higher after MSCI's broadest index of Asia Pacific shares outside Japan rose 0.8 per cent. All fell on Friday.

London's commodities-heavy FTSE100 rose around 1 per cent the biggest gainer among large Europpean benchmarks, as tin and nickel rose to new muulti-month highs. [.L][MET/L]

It was outpaced by a 2.3 per cent gain for the Portugese index as oil company Galp Energia had a STOXX 600 topping 17 per cent jump after saying a field off Namibia could contain 10 bln barrels of oil. [.EU]

In a further reversal of Friday's "rise off" mood, gold eased back from near its peaks, U.S. Treasury yields ticked higher and crude oil prices declined as the potential for a major supply disruption waned.

In recent weeks, investors have taken cautious positions on Fridays fearing an escalation in the conflict in the Middle East over the weekend when markets are closed and they are unable to trade.

"It seems neither Israel nor Iran want an escalation in the crisis in the Middle East ... and with a subsequent strike from either side not looking like it's coming, investor concerns have eased somewhat," said Kazuo Kamitani, a strategist at Nomura Securities.

However, Kamitani said expectations of later Federal Reserve interest rate cuts and concerns about chip sector earnings will continue to keep investors on their toes.

Iran said on Friday that it had no plan to retaliate following an apparent Israeli drone attack within its borders, which in turn followed an Iranian missile and drone attack on Israel days before.

HAVEN OUTFLOWS

Bond yields - which climb when prices fall - rose back toward multi-month highs.

The 10-year U.S. Treasury yield was last up 3 basis points to 4.64 per cent, heading back toward the five-month peak of 4.696 per cent reached last week on the view that the Fed would be in no hurry to ease policy amid robust economic data and sticky inflation. [US/]

European yields also edged higher. [GVD/EUR]

The dollar index, which measures the currency against six major peers, eased 0.05 per cent to 106.05. It was also at a five-month top last week, at 106.51.

"As long as there is this uncertainty about the cutting cylce particularly in the U.S, its interesting for investors to be in dollar longs because of its dual status as a high yielding currency and also a defensive currency," said Yvan Berthoux FX strategist at UBS.

Gold slid 1.3 per cent to $2,358.75, retreating from near the all-time peak of $2,431.29 earlier in the month. [GOL/]

Crude oil fell as traders put the focus back on fundamentals with a rise in U.S. stockpiles as the backdrop

Brent futures fell 137 cents, or 1.56 per cent to $85.92 a barrel. [O/R]//Reuters, CNA-VOI

Solomon Islands election in the balance as voting continues

2024-04-22T16:49:56+07:00

FILE PHOTO: Members of the New Zealand Defence Force (NZDF) Joint Task Force assist in delivering ballot boxes by NH90 helicopter to remote areas of the Solomon Islands ahead of the upcoming election, Solomon Islands, in this handout image released on April 17, 2024. New Zealand Defence Force/Handout via REUTERS/File Photo -

VOInews, Solomon Island : The Solomon Islands election, watched by China and the US for its impact on regional security, is shaping up as a tight race with opposition parties gaining seats and independents holding the key to forming the next government.

Last week's national election was the first since Prime Minister Manasseh Sogavare struck a security pact with China in 2022, drawing the Pacific Islands nation closer to Beijing. The move concerned the US and neighbouring Australia because of the potential impact on regional security.

Counting for several seats continued on Monday (Apr 22), as results showed the opposition CARE coalition drawing level with Sogavare's OUR party on 12 seats in a 50-seat parliament.

Independents and micro parties took 16 seats, and the major parties will seek to win independent support in negotiations this week in the race to form a government.

CARE includes Matthew Wale's Solomon Islands Democratic Party, U4C and the Democratic Alliance Party. Another prominent opposition party, Peter Kenilorea Jr's United, which said it would scrap the China security pact, won seven seats.

One source with direct knowledge told Reuters two independent candidates had joined CARE on Monday, and unofficial results showed it had won two more seats, which would take its numbers to 16.

High-profile former prime minister Gordon Darcy Lilo returns to parliament after a decade, as the only winning candidate for the Party for Rural Advancement.

Daniel Suidani, the former premier of Malaita province and a prominent critic of China, regained his seat in the provincial assembly in Malaita, and said on Monday his party, U4C, hoped to regain the premiership.

Provincial and national elections were held on the same day.

"It looks as though the CARE coalition - U4C, DAP and SIDP - are very shortly joining with some other independent candidates, so it is looking good," Suidani told Reuters in a telephone interview on Monday, adding the process could take a number of days.

Sogavare's office did not respond to a request for comment.

In excerpts of an interview with Solomon Islands' Tavuli News on Monday, Sogavare pledged there would be "a lot of reforms" if his government is returned.

Two women enter parliament for the first time as independents.

Police and defence forces from Australia, New Zealand, Papua New Guinea and Fiji are assisting with election security.

The election process had been peaceful, although there were a few disturbances in Malaita by supporters of losing candidates, two officials in Malaita said//Reuters, CNA - VOI

Bank Indonesia's first rate cut pushed to Q3, smaller cuts this year as rupiah falls - Reuters poll

2024-04-22T16:25:26+07:00

FILE PHOTO: Bank Indonesia's logo is seen at Bank Indonesia headquarters in Jakarta, Indonesia, January 17, 2019. REUTERS/Willy Kurniawan/File photo -

VOInews, BENGALURU : Bank Indonesia will cut its key interest rate next quarter and again in the fourth quarter, later than previously expected, as inflation rises and the rupiah weakens on renewed hawkishness from the U.S. Federal Reserve, a Reuters poll found.

A major hurdle for the central bank, whose main mandate is currency stability, will be cutting rates too soon as the rupiah hit a four-year low on Wednesday after comments from U.S. Federal Reserve officials boosted the dollar.

Inflation touched a seven-month high last month and moved closer to the upper limit of Bank Indonesia's (BI) 1.5 per cent-3.5 per cent inflation target range, suggesting policy rates would need to remain higher for longer.

Over 80 per cent, or 29 of 35, of the economists in the April 16-22 poll expected the central bank to hold its benchmark seven-day reverse repurchase rate at 6.00 per cent at its April 23-24 meeting. Six expected a quarter-point hike.

"We recently pushed back our first rate cut forecast ... given the movement of the rupiah on the back of fewer rate cuts expectation from the Fed by the market," said Makoto Tsuchiya, an economist at Oxford Economics.

"If the central bank were to deter further currency weakness, a 25 bps (basis points) hike is unlikely to do much ... BI will defend its currency by forex market intervention if necessary."

Median forecasts showed the first quarter-point cut coming next quarter, compared to expectations for a cut in the second quarter in a poll in March, followed by another reduction to 5.50 per cent by the end of December, versus 5.25 per cent seen previously.

That was in line with expectations around the Fed as a recent poll showed the first U.S. rate cut has likely been pushed to September.

Among those who provided interest rate forecasts for the third quarter with nearly two-thirds, 21 of 32 economists expect them to be 5.75 per cent or lower. But seven saw rates at 6.00 per cent and four at 6.25 per cent.

"We think the likelihood of a rate hike has risen ... BI is more likely to stay patient and proceed with care, not chasing the initial Fed cut," said Brian Tan, an economist at Barclays.

Only Barclays expected interest rates to be at 6.25 per cent by the end of the year.

There was a clear hawkish shift among economists as over half of the contributors, 15 of 26, raised their fourth quarter forecasts from a March poll. While 10 kept them unchanged, one lowered their rate expectation.

"For Indonesia, the prime driver of monetary policy action is Fed action, not necessarily inflation unless it goes way beyond target," said Kunal Kundu, an economist at Societe Generale.

"Headline inflation remaining above its (BI's) median target of 2.5 per cent suggests that the trajectory of ... rate-easing cycle could be shallow."

While inflation was expected to average 2.9 per cent this year and 3.0 per cent in 2025, economic growth was seen steady at 5.0 per cent in 2024 from 5.05 per cent in 2023 and is forecast to be 5.1 per cent next year.

(For other stories from the Reuters global economic poll)//VOI

Jokowi expects Gorontalo's newest airport to boost regional economy

2024-04-22T16:18:50+07:00

President Joko Widodo delivers his remarks while officiating Panua Airport, the newest domestic airport in Pohuwato District, Gorontalo Province, Monday (April 22, 2024). ANTARA/HO-Diskominfotik Provinsi Gorontalo/nbl -

VOInews, Gorontalo : President Joko Widodo (Jokowi) expected Panua Airport, the newest domestic airport in Gorontalo Province's Pohuwato District to bolster the regional economy as well as the mobility of passengers and logistics.

"I am glad, praise be to God that Panua Airport in Pohuwato District has been completed. Transportation Minister (Budi Karya Sumadi) told me that Rp473 billion (US$29.14 million) has been spent for the development," the president stated while officiating the airport here on Monday.

He said the airport development proved Indonesia is keen to make faster progress in its national economy and development.

"(It is) because in the future, the case is not larger countries that overpower smaller countries, but countries (whose development) progress is faster will beat countries who lag behind," Jokowi stated.

The president also instructed Panua Airport's runway of 1,200 x 30 meters to be extended to allow larger aircraft to land.

"I instructed (officials) to take measures to extend the runway length this year, if possible, or next year by the latest," he remarked.

Meanwhile, Minister Sumadi stated that the airport is one of the president's commitments to ensuring equitable development across the country.

"The airport is one of the legacies of the president who always instructs us to develop airports in all corners of the nation," the minister said.

He highlighted that the high budget of Rp473 billion disbursed for Panua Airport's development aims to improve the soil condition in the airport area before the construction commences.

The president arrived at Panua Airport for the inauguration on Monday at 7:51 a.m. local time. He departed from Djalaluddin Airport in the province's capital aboard an ATR 72-600 aircraft, the largest aircraft currently being served at the new airport.

Before being officially opened by the president, the inaugural flight from and to Panua Airport had taken place on February 18, 2024//Antara - VOI

Tsunami warning lifted after volcanic activity of Mt. Ruang decreases

2024-04-22T16:06:47+07:00

Mount Ruang of Sitaro District, North Sulawesi, erupts. (17/4/2024). (ANTARA/HO-PVMBG) -

VOInews, Jakarta : The Center for Volcanology and Geological Hazard Mitigation (PVMBG) on Sunday has lifted a tsunami advisory previously issued following the eruption of Mount Ruang in Sitaro District of North Sulawesi Province.

"The potential for large eruptions is decreasing, so the chance for tsunamis to occur is less likely," said Head of PVMBG Hendra Gunawan in a statement received here on Sunday.

On April 1-21, 2024, until 12:00 local time (GMT+8), PVMBG recorded as many as 10 eruptions on Mount Ruang starting on April 16, at 1:37 p.m. local time.

A major eruption occurred on April 17, at 8:15 p.m. local time. The continuous eruption was accompanied by rumbling sounds and vibrations felt up to the Mount Ruang Observation Post in Tulusan Village, Tagulandang Sub-District.

Explosive eruptions occurred on Ruang Island, followed by the release of incandescent material and hot clouds. Meanwhile, Tagulandang Island was raining stones and sand, spewed from the volcano which is 10 kilometer away.

The results of visual monitoring carried out by PVMBG on April 21, until 12:00 local time recorded thick white smoke as high as 200 meters from the main crater and no eruption was observed.

"This showed a decrease in eruptive activity on Mount Ruang," said Gunawan.

On April 21, from 00:00-12:00 local time the PVMBG recorded 25 shallow volcanic earthquakes and 19 deep volcanic earthquakes.

The PVMBG team has installed a seismic monitoring station at the Mount Ruang Observation Post which is about five kilometers from the peak to monitor the activity of the volcano//Antara - VOI

Govt preparing steps to protect rupiah amid Iran-Israel conflict

2024-04-22T15:36:11+07:00

Indonesian Finance Minister, Sri Mulyani during the G20 Summit in Bali 2022 (archive) -

VOInews, Jakarta : The government is currently devising strategies for protecting the exchange rate of rupiah from adversary impacts of the Iran-Israel conflict, Finance Minister SriMulyaniIndrawati has said.

The minister observed that the current global situation would surely affect Indonesia's economy, including by disrupting the exchange rate of its national currency.

"We will continue to maintain the stability of the macro economy, both from the monetary and fiscal sides. To adapt to the mounting pressure, we have been in coordination with Bank Indonesia," she noted in her Instagram account @smindrawati, as cited in Jakarta on Sunday.

She added that the government had been striving to ensure that the APBN (state budget) can play the role as an effective and credible shock absorber.

The minister said she acknowledges that the strengthening of the US dollar exchange rate against rupiah might lead to an increase in the value of Indonesian exports.

She, however, noted that such a trend would also adversely affect the country's inflation rate.

On that note, Indrawati emphasized that the government would continue to take anticipatory measures while paying close attention to global dynamics.

"I believe that Indonesia will stand resilient in the midst of this situation," she said.

The state treasurer also expressed optimism about the national economy surviving global uncertainties, like it did during the COVID-19 pandemic era.

"With the support from our strong exports as well as surpluses in the trade balance, I believe that Indonesia's economy will remain stable as expected," she stated.

Earlier, Bank Indonesia affirmed that it would strive to ensure that the exchange rate of rupiah remains stable in the midst of declining US Fed Fund Rate (FFR) and geopolitical tensions escalating in the Middle East.

"We have been striving to maintain the stability of rupiah by resorting to foreign exchange intervention and taking other necessary measures," Bank Indonesia Governor Perry Warjiyo remarked here on Friday (April 19).

In order to sustain Indonesia's economic resilience, he added, Bank Indonesia has been managing the flow of market-friendly foreign portfolios, including by implementing pro-market monetary operations that are integrated with money markets//Antara-VOI

Macron: confident of great Olympics opening ceremony on river Seine but has plan B

2024-04-15T14:12:35+07:00

French President Emmanuel Macron waits for the arrival of Albania's Prime Minister Edi Rama (not seen) at the Elysee Palace in Paris, France, April 12, 2024. REUTERS/Manon Cruz -

VOInews, Paris : French President Emmanuel Macron said on Monday he was confident the Olympics' opening ceremony in July on the river Seine would be a success, but added authorities prepared 'Plan B' options should security assessment closer to the games require it.

"We can do it and we will do it," Macron told RMC Radio and BFM TV of the plan to hold the July 26 opening ceremony with huge crowds around the Seine, where some 160 boats would set off for a 6-kilometre journey.

But France, he added, is not naive.

"If we think there are security risks we'll have plan Bs, and even plan Cs," he said.

One option, he added, would be to restrict the ceremony to the central Paris Trocadero square facing the Eiffel Tower. Another would be to move the event indoors to the Stade de France stadium//CNA-VOI

UN chief calls for maximum restraint after Iran's attack on Israel

2024-04-15T14:05:27+07:00

United Nations Secretary-General Antonio Guterres speaks during a press conference inside a UNRWA school, at Al-Wehdat camp for Palestinian refugees, in Amman, Jordan Mar 25, 2024. (Photo: REUTERS/Alaa Al-Sukhni) -

VOInews, Jordan : United Nations Secretary General Antonio Guterres on Sunday (Apr 14) issued a reminder that acts of reprisal involving the use of force are barred under international law after Iran's attack on Israel, while the US warned the Security Council it would work to hold Tehran accountable at the UN.

Guterres, speaking to a meeting of the UN Security Council, told member states that the UN charter bars the use of force against the territorial integrity or political independence of any state as he condemned Iran's attack on Israel and warned against further escalation.

Iran launched a swarm of explosive drones and fired missiles on Saturday in its first ever direct attack on Israeli territory, risking a major escalation.

The attack was in response to a suspected Israeli strike on Iran's embassy compound in Syria on Apr 1 that killed top Revolutionary Guards commanders and followed months of clashes between Israel and Iran's regional allies, triggered by the war in Gaza.

"The Middle East is on the brink. The people of the region are confronting a real danger of a devastating full scale conflict. Now is the time to defuse and de-escalate," Guterres told the meeting, which was called after Iran's attack.

Deputy US Ambassador to the UN Robert Wood called on the 15 member body to unequivocally condemn Iran's attack, as he said the Security Council has an obligation to not let Iran's actions go unanswered.

"In the coming days, and in consultation with other member states, the United States will explore additional measures to hold Iran accountable here at the United Nations," he said, without specifying what action the US would take.

"Let me be clear: if Iran or its proxies take actions against the United States or further action against Israel, Iran will be held responsible," he said, adding that the US took note of Guterres' remarks and that Washington's actions have been defensive.

Tehran, which had vowed retaliation for what it called an Israeli strike on its Damascus consulate on Apr 1 that killed seven of its officers, said its strike was punishment for "Israeli crimes". Israel has neither confirmed nor denied responsibility for the consulate attack.

Israel's ambassador to the United Nations, Gilad Erdan, requested the council hold the meeting in a letter on Saturday to the council's president.

"The Iranian attack is a serious threat to global peace and security and I expect the Council to use every means to take concrete action against Iran," Erdan wrote in a post on X.

Guterres on Sunday also called for an immediate humanitarian ceasefire in Gaza after more than six months of fighting, the unconditional release of all hostages and the unimpeded delivery of humanitarian aid to Gaza as it faces famine.

"Regional, and indeed global, peace and security are being undermined by the hour. Neither the region nor the world can afford more war," he said//CNA-VOI

Indonesia calls for restraint following Iran's attack on Israel

2024-04-15T13:52:43+07:00

UN Security council (Photo : Archive) -

VOInews, Jakarta : Indonesia expressed its deep concern over the escalation of the situation in the Middle East and urged Iran and Israel to exercise restraint following the former's missile attack on Israel on Saturday (April 13).

Indonesia's Foreign Ministry also urged the United Nations Security Council to promptly respond to the conflict escalation to prevent it from spilling over in the Middle Eastern region.

"Indonesia urges the UN Security Council to act immediately to de-escalate tensions and continue working towards lasting peace in the Middle East," according to the ministry's statement published on its social media on Sunday (April 14) evening.

Meanwhile, the UN Security Council should take action to end the illegal occupation of Palestine and various violations of international law committed by Israel, the ministry said.

Indonesia also emphasized that a just settlement of the Palestinian issue through the realization of the two-state solution will be the key to maintaining regional stability.

Renewed hostility between Iran and Israel was triggered by an Israeli attack on the Iranian consulate in Damascus, Syria, on April 1.

The attack killed at least seven officers of Iran's Islamic Revolutionary Guard Corps (IRGC), including two important generals. Iran accused Israel of being responsible for the fatal attack.

In response, Iran carried out a retaliatory strike by launching ballistic missiles and drones at Israel on Saturday evening.

Israeli authority claimed the attack had been successfully repelled. One Israeli airbase was damaged by the attack, albeit only minor damage being incurred.

As per Israeli request, the United Nations Security Council convened an emergency meeting on Sunday (April 14) local time.

In its letter to the UN Security Council president, Israel's Ambassador to the UN, Gilad Erdan, urged the UN to "unequivocally condemn Iran for the grave violations" and immediately declare IRGC as a terrorist organization.

This is despite the fact that for the last six months, Israel has sternly criticized the United Nations and flouted UN resolutions calling the country to cease its hostilities//Antara - VOI

KONI optimistic about athletes' better performance in Paris Olympics

2024-04-15T13:46:36+07:00

Chairperson of the National Sports Committee of Indonesia (KONI) Marciano Norman in ANTARA's podcast in Jakarta, Thursday (March 14, 2024). (ANTARA/FAJAR SATRIYO) -

VOInews, Jakarta : Chairperson of the National Sports Committee of Indonesia (KONI) Marciano Norman expressed optimism that Indonesian athletes will perform better in the Paris 2024 Summer Olympics, scheduled to be held from July 26 to August 11.

He underlined that KONI and the community, especially sports fans, support the Indonesian contingent.

"Of course, we hope and believe that the performances of Indonesian athletes will be able to make surprising achievements," he said in a statement issued on the KONI website that ANTARA accessed here on Sunday.

In the 2020 Tokyo Olympics, Indonesia grabbed one gold, one silver, and three silver medals.

Norman expressed appreciation for the efforts that have been made by athletes and sports associations to qualify for the prestigious multi-sport event.

"To all Indonesian athletes and coaches who have worked hard to secure tickets to the 2024 Paris Olympics, I express my gratitude, highest appreciation, and respect," the KONI chairperson remarked.

Earlier, Chairman of the Indonesian National Olympic Committee (KOI) Raja Sapta Oktohari stated that the number of Indonesian athletes qualifying for the Paris Olympics can increase, as the qualification competitions are still underway for several sports until June 2024.

The KOI will set a medal target for the 2024 Paris Olympics after all qualification matches end in June 2024.

"After all sports undergo qualification, we will sit along with the Ministry of Youth and Sports to determine the medal target at the Olympics," he remarked//Antara-VOI