LONDON/TOKYO, June 9 (Reuters) &#8211; World stock prices teetered near record highs on Wednesday, while U.S. bond yields touched their lowest levels in a month, as investors bet the Federal Reserve is some way off from tapering its economic stimulus.



Focus is locked on Thursday&#8217;s release of U.S. consumer price data and a European Central Bank meeting for further clues about how soon policymakers may begin to withdraw support for Europe&#8217;s economy rolled out following the COVID-19 crisis.



MSCI&#8217;s all-country world index last stood at 716.42, after hitting an intraday high of 718.19 on Tuesday, led by gains in Europe.



European stocks were 0.1% lower, with Britain&#8217;s FTSE down 0.5%.



In Asia, the MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan ticked down 0.3% and Japan&#8217;s Nikkei average shed 0.4%.



In the United States, Nasdaq futures were 0.2% firmer and S&amp;P 500 futures up 0.1%.



The 10-year U.S. debt yield, on the other hand, hit a fresh month low for the second day running, reaching 1.504% and down a quarter of a percentage point from a 14-month peak hit in March.



Germany&#8217;s 10-year Bund yield, which is closely correlated with U.S. Treasuries, extended Tuesday&#8217;s drop to fall to -0.240%, the lowest since May 7 as euro area investors continued to price in a dovish outcome to the ECB policy meeting on Thursday.



&#8220;As the recovery in the job market is contained, any discussion at the Fed on tapering is unlikely to gain momentum, even if it starts soon,&#8221; said Naokazu Koshimizu, senior rates strategist at Nomura Securities.



&#8220;So those who had bet on steepening of the yield curve are unwinding their positions while some investors are also now buying to earn carry.&#8221;



U.S. payrolls data last Friday showed hiring did not grow as fast as economists had expected, despite increasing signs of a labour shortage.



Many analysts think more evidence of strong jobs growth would be required for the Federal Reserve to step up its discussion on tapering.



The U.S. central bank has said rises in inflation this quarter would be transient and would not threaten price stability, one of its key mandates.



Thursday&#8217;s U.S. consumer price data is expected to show the overall annual inflation rate rose to 4.7% and core inflation increased to 3.4%.



While those readings will be well above the Fed&#8217;s inflation target of 2%, many economists expect the inflation rate to ease in coming months, allowing the Fed to wait before taking any tapering measures.



Yet some investors remain wary.



&#8220;Nothing that we see in tomorrow&#8217;s report can prove or disprove any of the theories around the future path for inflation but I suspect that the market isn&#8217;t entirely believing of the Fed&#8217;s on-hold forever message,&#8221; said James Athey, investment director at Aberdeen Standard Investments.



&#8220;I therefore see potential for a higher print to push real yields and shorter dated yields higher thus flattening the curve and boosting the dollar. This might not be a great environment for risky assets.&#8221;



CURRENCIES STEADY



Inflation data from China showed its producer price index jumped 9.0% from a year earlier, the highest in over 12 years, on surging commodity prices.



The rise in consumer prices, however, was softer than expected, helping to mitigate concerns. While China&#8217;s central bank is slowly scaling back pandemic-driven stimulus, top leaders have vowed to avoid any sharp policy turns and keep borrowing costs low.



The Chinese yuan, whose rally to a three-year high last week was propelled in part by speculation Beijing may want a stronger yuan to tame inflationary pressure, ticked up slightly to 6.3945 per dollar.



Other currencies hardly budged. The U.S. dollar index was parked at 90.077.



The euro was steady at $1.2179, while the dollar held at 109.47 yen.



Deutsche Bank&#8217;s Currency Volatility Index hit its lowest level since February 2020 on Tuesday, and sank even further on Wednesday.



With European bond markets calm, Greece followed Italy with a bond sale, opening books on Wednesday for a 10-year issue.



Oil prices held firm after U.S. Secretary of State Antony Blinken said that even if the United States were to reach a nuclear deal with Iran, hundreds of U.S. sanctions on Tehran would remain in place.



U.S. crude futures closed above $70 per barrel for the first time since Oct 2018 on Tuesday and last stood at $70.40, up 0.5%.



Brent futures rose 0.5% to $72.56, having earlier touched their highest since May 20, 2019.



(Reporting by Hideyuki Sano; Editing by Kim Coghill and Emelia Sithole-Matarise)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

Bond yields hit fresh 1-month low as taper bets recede

LONDON, June 9 (Reuters) – South Africa’s high-flying rand held its ground on Wednesday, after better-than-expected economic growth data the previous day had bolstered hopes of an improvement in the country’s finances.



In early trading, the rand, which is the world’s top performing major emerging market currency this year, was flat at 13.56 per dollar and just off a 28-month high hit on Friday.



Strong first quarter GDP data on Tuesday had showed a 4.6% quarter on quarter gain. It was ahead of consensus expectations for a 3.2% jump and analysts at JPMorgan said it kept the economy on course for a 5% growth spurt this year and a 2.5% expansion in 2022.



It has triggered debate about whether the country’s central bank could begin lifting interest rates as early as next month, although many analysts still forecast November or later for the first increase.



With the boom in commodity markets helping growth and narrowing the government’s still-wide fiscal deficit, “they have accidentally got themselves into a good position,” said Royal London Asset Management’s Head of Global Credit Azhar Hussain.



“But from a debt perspective a lot of the issues are still there,” he added, pointing to ongoing need to support state-owned power firm Eskom.



South Africa’s main stock market is also up 13% this year, although it has been moving in a 59,500-63,200 points range for the last few months.



“The (economic) recovery is broadening with the exception of construction, transport and accommodation with mining the clear outperformer,” JPMorgan said in a note to clients. “Yet private sector (and state-owned enterprise) fixed investment spending continue to lag.”



(Reporting by Marc Jones; Editing by Toby Chopra)

ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions

South African Rand Holds Ground after Strong GDP Data

PRETORIA, June 8 (Reuters) – South Africa’s economy expanded at a slower rate in the first quarter of this year compared with the previous three months, as key sectors of mining and trade expanded while farming saw a contraction, data from the statistics agency showed on Tuesday.



The country’s gross domestic product expanded by 1.1% quarter-on-quarter in the first three months of 2021 on a seasonally adjusted and not annualised basis, after an expansion of 1.5% in the fourth quarter of 2020.



On a seasonally adjusted and annualised basis, the economy grew by 4.6% quarter-on-quarter, following growth of 5.8% in the previous quarter.



Mining expanded 4.2% on a seasonally adjusted, not annualised basis, and trade rose 1.5%. Agriculture fell 0.8%.



“We can see that our rise in the first quarter of 2021 hasn’t reached the levels where we have beenâ€¦ Indeed we see we haven’t come out of the woods sufficiently enough in terms of responding to what has happened in COVID-19 despite the fact that the economy is growing,” Statistician General Risenga Maluleke told a news conference.



On a year-on-year basis, GDP contracted 3.2% in the three months to the end of March, compared to a contraction of 4.2% in the previous quarter.



South Africa’s economy deteriorated sharply last year after the government imposed a strict lockdown to curb the spread of the coronavirus. The economy contracted 7% in 2020. 



(Reporting by Mfuneko Toyana; writing by Olivia Kumwenda-Mtambo; Editing by Alex Richardson and Gareth Jones)

101416618-rand

South Africa’s Economy Expands at Slower Rate in First Quarter

June 8 (Reuters) &#8211; Frayed nerves ahead of U.S. inflation data later this week cast a shadow over emerging markets on Tuesday, with South Africa&#8217;s rand leading losses ahead of domestic economic growth data.



Against a stronger dollar, the rand fell 0.6%, pulling further away from 28-month highs. GDP numbers later in the morning are expected to show the South African economy slowed in the first quarter.



But the rand is still by far the best performing EM currency this year, up more than 8%, helped in part by rising commodity prices.



Turkey&#8217;s lira – the year&#8217;s worst performing EM currency so far – erased early losses to trade flat, while Russia&#8217;s rouble ticked up towards its highest in nearly three months, despite falling oil prices.



Russia&#8217;s central bank is seen hiking rates at its meeting on Friday for the third time in a row, by 25 or even 50 basis points, as data on Monday showed inflation remained well above target and showed little signs of slowing.



&#8220;The higher-than-expected CPI trend combined with a rebound in consumer lending growth amid still weak deposit dynamics should reinforce the Central Bank of Russia&#8217;s resignation to exit the loose monetary stance sooner rather than later,&#8221; said Dimitry Dolgin, chief Russia economist at ING.



&#8220;We believe a jump to the 5.50% level in one 50 basis point step to be a more likely scenario.&#8221;



Investors will also keep an eye next week on U.S. President Joe Biden&#8217;s visit to Europe where he is expected to meet with leaders of Turkey and Russia, especially amid deteriorating ties between Moscow and Western powers.



Mexico&#8217;s peso slipped 0.1%, paring back only slightly after gaining nearly 1% on Monday, when markets cheered early results from midterm elections.



Peru&#8217;s financial markets are also in focus as left-wing candidate Pedro Castillo widened his lead over conservative rival Keiko Fujimori in presidential elections. Castillo said he would respect the autonomy of the Andean nation&#8217;s central bank if he wins the presidency.



The Peruvian sol sank 2.5% overnight and stocks slumped 7.7%.



Broader sentiment was cautious ahead of U.S. inflation data for May on Thursday, a week before the U.S. Federal Reserve&#8217;s June meeting. Any change to the Fed&#8217;s accommodative stance has the capacity to reduce flows into riskier assets of emerging markets.



Emerging market stocks extended their declines for a fifth straight session, and were trading down 0.2%. The index was pulled lower by a near 1% fall in China&#8217;s blue-chips index while heavyweight stock markets in Hong Kong and South Korea also fell.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh">http://tmsnrt.rs/2egbfVh</a> 



For GRAPHIC on MSCI emerging index performance in 2021, see <a href="https://tmsnrt.rs/2OusNdX">https://tmsnrt.rs/2OusNdX</a>



(Reporting by Susan Mathew in Bengaluru; Editing by Ana Nicolaci da Costa)

South African Economy As Inflation Rate Rises For First Time In 2017

South African rand slips ahead of GDP; rate hike bets buoy Russian rouble

LAGOS, June 7 (Reuters) &#8211; OPEC and its allies expect oil inventories to fall further in the coming months, OPEC&#8217;s secretary general said on Monday, suggesting efforts by the producers to support the market are succeeding.



Oil stocks in the developed world nations fell by 6.9 million barrels in April, Mohammad Barkindo said in a virtual appearance at the Nigeria International Petroleum Summit, 160 million barrels lower than the same time one year ago, making the figure public for the first time.



&#8220;We expect to see further drawdowns in the months ahead,&#8221; he said. 



(Reporting By Alex Lawler and Libby George; editing by David Evans)

The 169th Organization Of Petroleum Exporting Countries (OPEC) Conference

OPEC chief, in upbeat oil outlook, sees oil stocks falling further

SYDNEY, June 7 (Reuters) &#8211; Asian shares turned sluggish on Monday as relief over a benign U.S. jobs report was chilled by caution ahead of key inflation data, while a coronavirus outbreak in Taiwan took an increasing toll on hard-pressed chip makers.



Data out of Beijing showed China&#8217;s imports grew at their fastest pace in 10 years as it sucked up resources, a boon for everything from copper to iron ore prices.



Rising costs and supply bottlenecks were a hurdle for exports, though, and Chinese blue chips eased 0.5%.



Taiwan stocks lost 0.2% as a spike in COVID-19 cases hit three tech companies in northern Taiwan, including chip packager King Yuan Electronics.



MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan slipped 0.1% and risked a fourth straight session of losses. Japan&#8217;s Nikkei edged up 0.3% and touched its highest in almost a month.



Investors were wary on how shares of major tech firms would react to the G7&#8217;s agreement on a minimum global corporate tax rate of at least 15%, although getting the approval of the whole G20 could be a tall order.



So far, the reaction was muted with both Nasdaq and S&amp;P 500 futures down 0.2%. EUROSTOXX 50 futures and FTSE futures eased 0.1%.



Also of interest will be the tussle over U.S. President Joe Biden&#8217;s proposed $1.7 trillion infrastructure plan with the White House rejecting the latest Republican offer.



While the 559,000 rise in May U.S. jobs missed forecasts it was still a relief after April&#8217;s shockingly weak report. The jobless rate at 5.8% showed there was a long way to go to reach the Federal Reserve&#8217;s goal of full employment.



&#8220;The data was perfect for a goldilocks type outlook for risk: not too hot to bring in fears of a faster Fed taper, and not too cold to worry about the outlook for the recovery,&#8221; said NatWest Markets strategist John Briggs.



&#8220;This caused a weaker USD, better stocks, reinforced the earlier bid in commodities, and boosted emerging markets.&#8221;



Attention will now turn to the U.S. consumer price report on Thursday where the risk is of another high number, though the Fed still argues the spike is transitory.



Briggs suspected Fed officials might open the door to talking about tapering at the June policy meeting, with the start coming in early 2022 and a rate hike not until 2024.



The European Central Bank holds its policy meeting on Thursday and is widely expected to maintain its stimulus measures with tapering a distant prospect.



Yields on U.S. 10-year notes were a fraction higher at 1.57%, after diving 7 basis points on Friday and back to the bottom of the trading range of the last three months.



That drop, combined with an improvement in risk appetite, put the dollar on the defensive. It was last at 90.173 against a basket of currencies, having slipped from a top of 90.629 on Friday.



The euro was holding at $1.2167, after bouncing from a three-week trough of $1.2102 on Friday, while the dollar was back at 109.45 yen from a peak of 110.33.



The pullback in the dollar helped gold steady at $1,885 an ounce, up from a low of $1,855 on Friday.



Oil prices ran into profit-taking after Brent topped $72 a barrel for the first time since 2019 last week as OPEC+ supply discipline and recovering demand countered concerns about a patchy global COVID-19 vaccination rollout.



Brent slipped 29 cents to $71.60 a barrel, while U.S. crude eased 22 cents to $69.40.



(Editing by Shri Navaratnam and Richard Pullin)

Asia shares hesitate, China imports underpin resources

LONDON, June 4 (Reuters) &#8211; Stocks and gold rallied while the dollar fell on Friday, as a weaker-than-expected U.S. jobs report eased concerns that a strong recovery in the world&#8217;s biggest economy could prompt the Federal Reserve to shut off the stimulus taps sooner.



The crucial U.S. nonfarm payrolls data released at 1230 GMT showed only 559,000 jobs created in May, below the 650,000 expected from a Reuters poll of analysts



The pan-European STOXX 600 index was up 0.1% by 1239 GMT, trading just below its record high touched earlier this week, and contrasting with an earlier 0.3% fall in MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan .



A stronger-than-expected reading would have heightened worries that the robust economic recovery could push the Fed to contemplate paring back its bond buying and raising interest rates.



“It&#8217;s still a strong number. The way I see it is it&#8217;s lacking a certain wow factor that the market was expecting, and that can help keep rates a bit lower here and the curve a bit steeper,&#8221; said Gennadiy Goldberg, interest rates strategist at TD Securities in New York.



Market whispers had been for a stronger number, he added, that would somewhat counterintuitively have driven stocks down on fears the Fed would tighten policy earlier than expected.



The dollar index fell 0.23% immediately after the data release, down from a multi-week high hit earlier on Friday.



U.S. stock futures extended gains, with S&amp;P 500 e-minis up 0.26% following a 0.4% loss for the index overnight.



The 10-year Treasury yield held at 1.6355%, after advancing nearly four full basis points overnight.



Airlines meanwhile suffered, with British Airways-owner IAG , Wizz Air and easyJet slipping between 1% and 2% after Britain added seven countries, including Egypt and Sri Lanka, to its &#8220;red list&#8221; of destinations that require hotel quarantine on return to England.



TAPER TALK



While Fed officials have consistently said they expect current inflationary pressures to be transitory and for ultra-easy monetary policy to stay in place for some time, they are also increasingly touting the need to at least start talking about a tapering of stimulus.



Investors have been carefully parsing the economic data to gauge whether inflation could prove sticky enough to force the Fed&#8217;s hand on tapering.



Last month, much-lower-than-expected nonfarm payrolls numbers knocked back those expectations, weakening Treasury yields and the dollar, and the pattern repeated on Friday.



Copper prices rebounded as investors scooped up material at lower prices. Three-month copper on the London Metal Exchange gained 0.8% to $9,870 a tonne, having tumbled as much as 3.8% in the previous session.



Gold rose 0.6% after a 2% tumble on Thursday, its biggest since February, trading at around $1,883 per ounce by 1252 GMT.



Oil rose towards $72 a barrel, trading close to a two-year high as OPEC+ supply discipline and recovering demand countered concerns about patchy COVID-19 vaccination rollouts around the globe.



Brent futures rose 34 cents to $71.64 a barrel, after reaching the highest since May 2019 in Thursday&#8217;s session. U.S. WTI added 40 cents to $69.21 a barrel, just below $69.40 a day earlier, the strongest since October 2018.



(Reporting by Lawrence White and Kevin Buckland; editing by Kim Coghill, Mark Heinrich and Jonathan Oatis)

World map with charts and graphs as symbols of global finance

Stocks climb, dollar slips as soft U.S. jobs data soothe rate hike fears

TOKYO/LONDON, June 4 (Reuters) &#8211; The dollar hit a multi-week high on Friday while European stocks, oil and gold steadied as markets braced for further signs the U.S. economic recovery could drive inflation and an early withdrawal of Federal Reserve stimulus.



U.S. Treasury yields remained elevated after jumping overnight, while the dollar held onto its biggest gain since April, after better-than-expected employment data raised expectations for a strong reading for Friday&#8217;s nonfarm payrolls.



The pan-European STOXX 600 index was up 0.2% by 0730 GMT, trading just below its record high hit earlier this week, and contrasting with an earlier 0.3% fall in MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan .



&#8220;Overall the market is still very, very bullish, and the data we got overnight out of the U.S. was very, very positive,&#8221; said Kyle Rodda, a market analyst at IG in Melbourne.



&#8220;I think the consensus overall is that there&#8217;s reasonably limited risk that the Fed is going to pull away the punchbowl.&#8221;



At the same time, he said investors were closing positions ahead of the U.S. nonfarm payrolls data later in the global day to shield themselves from potential losses in the event of an upside surprise.



Japan&#8217;s Nikkei fell 0.4% while the broader Topix was about flat, with the services and tech sectors leading laggards. China stocks ended higher on gains for financial firms, following Beijing&#8217;s proposal to cut stamp duty, though they posted weekly losses amid renewed worries over Sino-U.S. tensions.



Airlines suffered with British Airways-owner IAG, Wizz Air and easyJet all down over 1% after Britain added seven countries, including Egypt and Sri Lanka, to its &#8220;red list&#8221; of destinations that require hotel quarantine on return to England.



U.S. stock futures, the S&amp;P 500 e-minis, rose slightly, following a 0.4% loss for the index overnight. The Nasdaq Composite suffered a 1% slide on Thursday, while the Dow Jones Industrial Average fared relatively better, slipping 0.1%.



The 10-year Treasury yield rose as high as 1.633%, after advancing nearly four full basis points overnight.



The dollar index held Thursday&#8217;s 0.7% rally, its biggest since April, to hover around 90.54.



TAPER TALK



While Fed officials have consistently said they expect current inflationary pressures to be transitory and for ultra-easy monetary policy to stay in place for some time, they are also increasingly touting the need to at least start talking about a tapering of stimulus.



Investors are carefully parsing the economic data to gauge if inflation could prove sticky enough to force the Fed&#8217;s hand on tapering.



Last month, much-weaker-than-expected nonfarm payrolls numbers knocked back those expectations, weakening Treasury yields and the dollar.



This month, economists forecast private payrolls likely increased by 600,000 jobs in May, after rising only 218,000 in April.



&#8220;Clearly, traders are covering USD shorts into the jobs data,&#8221; Chris Weston, head of research at brokerage Pepperstone in Melbourne, wrote in a note to clients.



&#8220;I am not even going to try and predict this one, it is a lottery, although the so-called &#8216;whisper number&#8217; is closer to 790,000.&#8221;



Shanghai copper prices dropped to their lowest in nearly six weeks on Friday, on fears an early end to U.S. stimulus measures could curb demand.



Gold stabilised following a 2% tumble on Thursday, its biggest since February, to trade flat around $1871.41 per ounce by 0730GMT.



Crude oil also steadied following a retreat on Thursday from more than two-year highs after weekly U.S. crude stocks fell sharply while fuel inventories rose more than expected.



Brent futures rose 35 cents to $71.66 a barrel, after touching the highest since May 2019 in Thursday&#8217;s session. U.S. WTI added 38 cents to $69.21 a barrel, from as high as $69.40 a day earlier, the strongest since October 2018.



(Editing by Sam Holmes and Kim Coghill)

asian stock market

Stocks steady, dollar climbs as U.S. recovery sparks Fed tapering fears

Most Asian stocks fell on Friday, dragged by the technology sector as signs of a firming U.S. economy stoked worries about higher inflation and an earlier withdrawal of Federal Reserve stimulus.



U.S. Treasury yields remained elevated after jumping overnight, while the dollar also held its biggest gain since April, after better-than-expected employment data raised expectations for a strong reading for Friday&#8217;s nonfarm payrolls, while a measure of service sector activity climbed to a record high.



Japan&#8217;s Nikkei fell 0.4% while the broader Topix was about flat, with the services and tech sectors leading laggards.



MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan was off 0.3%, weighed by a 0.7% slide in Taiwan&#8217;s tech-heavy stock market.



Chinese blue chips bucked the trend, rallying 0.6%, after Beijing proposed a reduction in stamp duty for led financial firms. Australia&#8217;s benchmark rose to a record above 7,300 and was up 0.5%.



&#8220;Overall the market is still very, very bullish, and the data we got overnight out of the U.S. was very, very positive,&#8221; said Kyle Rodda, a market analyst at IG in Melbourne.



&#8220;I think the consensus overall is that there&#8217;s reasonably limited risk that the Fed is going to pull away the punchbowl.&#8221;



At the same time, he said investors were closing tech positions ahead of key U.S. nonfarm payrolls data later in the global day, to shield themselves from potential losses in the event of an upside surprise.



Futures pointed to a slightly lower open for European stocks with the pan-region Euro Stoxx 50 futures set for a 0.1% decline. London&#8217;s FTSE futures were mostly flat.



U.S. stock futures, the S&amp;P 500 e-minis, were 0.1% lower, following a 0.4% loss for the index overnight. The Nasdaq Composite suffered a 1% slide on Thursday, while the Dow Jones Industrial Average fared relatively better, slipping 0.1%.



U.S. stocks got some relief into the close on reports that President Joe Biden is willing to compromise over a proposed corporate tax hike.



The 10-year Treasury yield rose as high as 1.6320% in Asia, after advancing nearly four full basis points overnight.



The dollar index held Thursday&#8217;s 0.7% rally, its biggest since April, to hover around 90.60.



While Fed officials have consistently said they expect current inflationary pressures to be transitory and for ultra-easy monetary policy to stay in place for some time, they are also increasingly touting the need to at least start talking about a tapering of stimulus.



Investors are carefully parsing the economic data to gauge if inflation could prove sticky enough to force the Fed&#8217;s hand on tapering.



Last month, much-weaker-than-expected nonfarm payrolls numbers knocked back those expectations, weakening Treasury yields and the dollar.



This month, economists forecast private payrolls likely increased by 600,000 jobs in May, after rising only 218,000 in April.



&#8220;Clearly, traders are covering USD shorts into the jobs data,&#8221; Chris Weston, head of research at brokerage Pepperstone in Melbourne, wrote in a note to clients.



&#8220;I am not even going to try and predict this one, it is a lottery, although the so-called &#8216;whisper number&#8217; is closer to 790,000.&#8221;



Gold remained weaker following a 2% tumble Thursday, its biggest since February, to trade 0.2% lower on the day at $1,866.40 per ounce amid a stronger dollar.



Crude oil stabilised following a retreat on Thursday from more than two-year highs after weekly U.S. crude stocks fell sharply while fuel inventories rose more than expected.



Brent futures rose 10 cents to $71.41 a barrel, after touching the highest since May 2019 in Thursday&#8217;s session. U.S. WTI added 10 cents to $68.91 a barrel, from as high as $69.40 a day earlier, the strongest since October 2018.



(Editing by Sam Holmes)

Asian stocks under pressure as inflation worries haunt tech firms

CAPE TOWN, June 3 (Reuters) &#8211; For the Khoi and San &#8211; South Africa&#8217;s first inhabitants &#8211; a verdant patch of land in Cape Town embodies victory and tragedy.



The two communities drove back cattle-raiding Portuguese soldiers there in 1510. But, a century and a half later, it was where Dutch settlers launched a campaign of land dispossession.



Today it is again the scene of another conflict, this time over a development where construction is due to begin this month and which will eventually be home to a new 70,000-square metre Africa headquarters for U.S. retail giant Amazon.



&#8220;This is where land was first stolen,&#8221; said Tauriq Jenkins, of the Goringhaicona Khoena Council, a Khoi traditional group opposed to the project. &#8220;We want a World Heritage Site. We do not want 150,000 tonnes of concrete.&#8221;



The 15-hectare riverside area was previously home to a golf driving range and popular bar &#8211; a small blue plaque the only indication of its historical significance.



It is now earmarked for a 4 billion rand ($284 million) mixed-use development complete with a hotel, retail offices and residential units.



Amazon, which already employs thousands of people in Cape Town in a global call centre and data hubs, is lined up as its anchor tenant, with no other big names yet disclosed by city bosses or developers.



While some groups have welcomed the prospect of new jobs, the whole project, not Amazon&#8217;s specific plans, has faced a backlash from other community leaders as well as environmentalists and activists. They have held marches at the site and are now threatening to take the matter to court.



According to the Observatory Civic Association, which represents a nearby residential community, close to 50,000 objections to the development have been lodged so far with city and provincial authorities.



They want the development stopped and the area declared a provincial or national heritage site; environmentalists say it is important to preserve because it is an ecologically sensitive area at the confluence of two rivers.



Amazon in South Africa and the United States declined to comment on the dispute and referred queries to the developer, South Africa&#8217;s Zenprop. It in turn directed the queries to Liesbeek Leisure Properties Trust (LLTP), the structure set up to develop this specific project.



&#8220;There is no groundswell of unhappiness,&#8221; said LLTP&#8217;s Jody Aufrichtig, emphasising that the development went through an extensive public approval procedure.



&#8220;The handful of vocal objectors who remain, who were given fair opportunity to participate, simply do not like the outcome.&#8221;



BALANCING JOBS AND HERITAGE



Land, its history and its ownership are fraught issues in South Africa, where memories of forced removals and segregation remain fresh nearly three decades after the end of apartheid.



Such sensitivities were taken account when considering the project, Cape Town Mayor Dan Plato said in a statement, announcing his approval of the development.



&#8220;We are acutely aware of the need to balance investment and job creation, along with heritage and planning considerations,&#8221; he said, touting the development as a much-needed boost for Cape Town&#8217;s tourism-dependent, pandemic-crippled economy.



The project will create thousands of new jobs, LLTP say, while also paying tribute to Khoi and San culture and history.



Designs include an indigenous garden and a heritage centre where LLTP&#8217;s Aufrichtig said Khoi and San descendents will work as operators and educators.



Such efforts have succeeded in winning over some Khoi and San, including a group calling itself the First Nations Collective, which engaged directly with the developers.



&#8220;We chose cultural agency rather than the evil of government deadlock to achieve the objective of creating a liberated zone for our people,&#8221; said Zenzile Khoisan, spokesman for the Collective.



Mayor Plato gave the project a green light in April after a two-year provisional heritage protection order instated to allow time to examine opposition to the project lapsed last year. And Aufrichtig said development is now due to begin mid-June.



But opponents, like Martinus Fredericks, paramount chief of the !Aman (Nama) Traditional Council, said they are not ready to give up. They still hope to force a review or block of the planning permission via the courts.



&#8220;We will approach the courts,&#8221; he said. &#8220;We will mobilise every single Khoi and San person in the country to stop that development.&#8221; 



($1 = 14.0506 rand) 



(Additional reporting by Jeffrey Dastin in San Francisco; Editing by Joe Bavier and Alison Williams)

Amzlogo Photo: via Wikimedia Commons

Heritage dispute engulfs site chosen for Amazon’s new African HQ

LONDON/SYDNEY, June 3 (Reuters) &#8211; World stocks clung close to record highs on Thursday as investors weighed inflation concerns ahead of key U.S. economic data, while oil prices rose for a third straight session.



Market sentiment was cagey as investors backed away from big bets before the release on Friday of U.S. jobs data, which should offer further clarity on whether the faster-than-expected pace of economic recovery can be sustained and what that might mean for monetary policy.



In Europe, the broad Euro STOXX index was 0.2% down, drifting away from record highs scaled on Tuesday, with Britain&#8217;s FTSE 100 slipping 0.7%, while Germany&#8217;s DAX and the French CAC 40 were both down 0.2%.



There was a similar pullback in Asia, with MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan shedding 0.2% after reaching three-month highs on Wednesday.



In Japan, the Nikkei share average rose 0.4%, while Australian shares climbed to all-time highs as investors cheered stronger-than-expected economic growth data released on Wednesday.



The MSCI world equity index, which tracks shares in 49 countries, hovered in and out of positive territory, below Tuesday&#8217;s record high.



U.S. futures pointed to a dip on Wall Street at the open .



While broader stock markets remain close to record highs, the momentum seen earlier in the year has ebbed as investors worry a stronger-than-expected rebound from COVID-19 means higher inflation and sooner-than-expected monetary policy tightening.



A weekly U.S. unemployment report and May private payrolls data on Thursday will be followed by the monthly jobs numbers on Friday. Investors will be looking for signs of an economic rebound and rising inflation.



Adding to inflation fears, oil prices hit the highest level since September 2019 on expectations for a surge in fuel demand later this year, particularly in the United States, Europe and China when major producers step up supply discipline.



So far though, &#8220;increases in inflation expectations have coincided with equities performing well recently,&#8221; said Oliver Jones, senior markets analyst at Capital Economics.



&#8220;In general, we suspect that these conditions will remain in place for a while longer.&#8221;



Capital Economics forecasts that real global output will grow at the fastest rate in nearly 50 years this year.



&#8220;While it is possible that major central banks eventually have to tighten policy faster than is widely expected if inflation does not fall back in the way they are anticipating, it will be hard to tell if this is happening until next year at the earliest,&#8221; Jones noted.



Investment managers are also becoming increasingly worried, with BlackRock Founder Larry Fink the latest to warn that the market was underestimating the risk of higher inflation.



Philadelphia Fed Bank President Patrick Harker also restated his call that &#8220;it may be time to at least think about tapering our $120 billion in monthly Treasury bond and mortgage-backed securities purchases.&#8221;



The Fed has already announced it would begin unwinding the corporate bond holdings it acquired last year to calm credit markets at the height of the pandemic.



In Australia, the central bank is expected to begin tapering its pandemic emergency stimulus from next month when investors believe it would announce not extending its three-year yield target beyond the April 2024 bond.



European Central Bank (ECB) chief Christine Lagarde said on Wednesday the ECB will support the euro zone &#8220;well into&#8221; its recovery from a pandemic-induced double dip recession.



Those comments helped euro zone bond yields hold near record lows on Thursday.



Germany&#8217;s 10-year yield, the benchmark for the bloc, was up less than a basis at -0.19%.



In the U.S., 10-year Treasury yield were also steady ahead of the U.S. economic data release.



Moves in currency markets have been limited with the dollar index and other major pairs staying in tight ranges.



The dollar index, which measures the greenback against a basket of major currencies, rose to 90.112, having found strong support around the 89.946 mark in recent sessions after falling 2% in April and a further 1.6% in May.



Against the euro the dollar traded 0.2% higher at $1.2183 and it crept a fraction higher on Antipodean currencies.



Brent rose 0.4% to $71.62 a barrel, after earlier reaching the highest since September 2019. U.S. crude futures went as high as $69.40, the highest since October 2018.



Spot gold was down 0.1% to $1,892.26 per ounce.



(Editing by Sam Holmes and Toby Chopra)

Stocks drift as investors turn cautious ahead of U.S. payrolls

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/the-market-3147758_1920-820x547.jpg" alt="" class="wp-image-405756" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/the-market-3147758_1920-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/the-market-3147758_1920-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/the-market-3147758_1920-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/the-market-3147758_1920-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/the-market-3147758_1920-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/the-market-3147758_1920.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via Pixabay </figcaption></figure>



ROME, June 3 (Reuters) &#8211; World food prices rose in May at their fastest monthly rate in more than a decade, posting a 12th consecutive monthly increase to hit their highest level since September 2011, the United Nations food agency said on Thursday.



FAO also issued its first forecast for world cereal production in 2021, predicting output of nearly 2.821 billion tonnes &#8212; a new record and 1.9% up on 2020 levels.



The Food and Agriculture Organization&#8217;s food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 127.1 points last month versus a revised 121.3 in April.



The April figure was previously given as 120.9.



On a year-on-year basis, prices were up 39.7% in May.



FAO&#8217;s cereal price index rose 6.0% in May month-on-month and 36.6% year-on-year. Maize prices led the surge and are now 89.9% above their year-earlier value, however FAO said they fell back at the end of the month, lifted by an improved production outlook in the United States.



The vegetable oil price index jumped 7.8% in May, lifted primarily by rising palm, soy and rapeseed oil quotations. Palm oil prices were boosted by slow production growth in southeast Asia, while prospects of robust global demand, especially from the biodiesel sector, drove up soyoil prices.



The sugar index posted a 6.8% month-on-month gain, due largely to harvest delays and concerns over reduced crop yields in Brazil, the world&#8217;s largest sugar exporter, FAO said.



The meat index rose 2.2% from April, with quotations for all meat types buoyed by a faster pace of import purchases by east Asian countries, mainly China.



Dairy prices rose 1.8% on a monthly basis and were up 28% on a year earlier. The increase was led by &#8220;solid import demand&#8221; for skim and whole milk powders, while butter prices fell for the first time in almost a year on increased export supplies from New Zealand.



FAO said its forecast for record world cereal production this year was underpinned by a projected 3.7% annual growth in maize output. Global wheat production was seen rising 1.4% year-on-year, while rice production was forecast to grow 1.0%.



World cereal utilization in 2021/22 was seen increasing by 1.7% to a new peak of 2.826 billion tonnes, just above production levels. &#8220;Total cereal food consumption is forecast to rise in tandem with world population,&#8221; FAO said.



(Editing by Crispian Balmer)

the-food market-3147758_1920

World food price index surges in May to highest level since 2011 -FAO

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/elvira-1-820x547.jpg" alt="" class="wp-image-405662" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/elvira-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/elvira-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/elvira-1-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/elvira-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/elvira-1.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption><a href="https://www.google.com/url?sa=i&amp;url=https%3A%2F%2Fwww.flickr.com%2Fphotos%2F151590013%40N04%2F35142732392&amp;psig=AOvVaw0X83P5MbE5cSLGQOkCM8Rj&amp;ust=1622721252620000&amp;source=images&amp;cd=vfe&amp;ved=0CAkQjhxqFwoTCNjO1Jzy-PACFQAAAAAdAAAAABAD"> Elvira Sahipzadovna Nabiullina</a>: Russia&#8217;s Central Bank Govenor Photo via Flickr </figcaption></figure>







As the economy moves online, digital currencies will be the future of financial systems, according to Russia’s central bank governor, Elvira Nabiullina.



There is a need for fast, cheap payment systems, and central bank digital currencies can fill that gap, she told CNBC’s&nbsp;<a href="https://www.cnbc.com/hadley-gamble/">Hadley Gamble</a>&nbsp;in an exclusive interview.



“I think it’s the future for our financial system because it correlates with this development of digital economy,” she said.



Moscow published a&nbsp;<a href="http://cbr.ru/eng/analytics/d_ok/dig_ruble/" target="_blank" rel="noreferrer noopener">consultation paper on a digital rouble&nbsp;</a>in October<a href="http://cbr.ru/eng/analytics/d_ok/dig_ruble/" target="_blank" rel="noreferrer noopener">,</a>&nbsp;and aims to have a prototype ready by the end of 2021. Pilots and trials could start next year, Nabiullina said.



That could be a concern for the U.S., according to a former U.S. Treasury official, Michael Greenwald.



“What alarms me is if Russia, China, and Iran each creates central bank digital currencies to operate outside of the dollar and other countries followed them,” he told CNBC’s Hadley Gamble on Wednesday. “That would be alarming.”WATCH NOWVIDEO09:59Why central banks around the world want to get into digital currencies



Central bank digital currencies are not the same as cryptocurrencies, such as bitcoin. They are issued and controlled by authorities, and the value of one digital rouble will equal one cash rouble, t<a href="http://cbr.ru/eng/analytics/d_ok/dig_ruble/" target="_blank" rel="noreferrer noopener">he Bank of Russia said last year.</a>



Cryptocurrencies were illegal in Russia until last year, and still cannot be used to make payments.



“We will go step by step, because it’s [a] very difficult, technological, legal … project,” Nabiullina said.

elvira

Digital currencies are the future for Russia’s financial system, central bank governor says

Stocks chopped around record peaks on Tuesday, while the dollar was pinned near recent lows, as markets awaited U.S. jobs data and looked ahead to crucial central bank meetings in Europe and United States for guidance on the interest rates outlook.



MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan touched a three-month peak, before profit-taking in recently strong Chinese markets pulled it 0.4% lower. Aussie stocks hit a record high, while Japan&#8217;s Nikkei rose 0.5%.



World stocks sat just below Tuesday&#8217;s record, however momentum has clearly ebbed from the year-long COVID-19 rally as investors begin to worry a stronger-than-expected rebound means sooner-than-expected monetary policy tightening.



Brent crude was firm after closing above $70 a barrel for the first time in two years, while bond and currency markets were becalmed as traders wait on data for clues as to the recovery&#8217;s progress.



U.S. and European equity futures were steady, with S&amp;P 500 futures flat and EuroSTOXX 50 futures up 0.2%.



&#8220;Non-farm payrolls looms large on Friday,&#8221; said National Australia Bank&#8217;s head of currency strategy, Ray Attrill, and could rouse financial markets from a few weeks of inertia.



After a big miss in April, when monthly hiring of 266,000 confounded expectations for 1 million, May estimates range between 400,000 and 1 million, with consensus around 664,000.



&#8220;The uncertainty around payrolls will have an influence on sentiment&#8230;whether we get a print nearer to 250,000 or a million is going to have quite some impact I think.&#8221;



European factory gate price surveys and the U.S. Federal Reserve&#8217;s &#8220;beige book&#8221; economic snapshot, both due later on Wednesday, will also be closely watched while Fed and European Central Bank meetings later in June loom largest on the horizon.



&#8220;As the major developed economies continue to reopen from COVID lockdowns the focus on central bank meetings is going to intensify,&#8221; MUFG analysts said in a monthly outlook note.



They expect the ECB to avoid signalling a slowdown in bond purchases, but think the Fed might confirm that &#8220;very initial&#8221; discussions on tapering its bond buying have begun.



DATA WATCH



Australia provided the latest piece of better-than-forecast economics on Wednesday, with growth beating market expectations and lifting national output above pre-pandemic levels.



That helped the stock market to its latest record, but couldn&#8217;t kick the currency out of its recent range as the central bank has been stubbornly sticking to its dovish tone.



The Aussie was last steady at $0.7747. The euro held at $1.2218, just shy of recent highs as the risk of a dollar rally if strong data prods the Fed into tightening is keeping investors from adding to large dollar shorts.



Overnight, data showed U.S. manufacturing activity rose in May, as pent-up demand boosted orders, pushing Treasury yields higher.



Benchmark 10-year rates were steady on Wednesday at 1.6079%, with the small rise enough to crimped gold prices.



At $1,898 an ounce the metal was flat, but it is up more than 13% in just over two months, mostly thanks to help from a falling U.S dollar.



Brent futures rose 0.6% to $70.67 per barrel and U.S. West Texas Intermediate crude added 0.56% to $68.10 per barrel, despite the OPEC+ alliance agreeing to hike output in July.



Wall Street indexes had closed broadly steady on Tuesday, with the revival of gains in retail-investor driven &#8220;meme stocks&#8221; standing out.



AMC Entertainment Holdings rose more than 20% and is up more than 1,400% for the year &#8211; perhaps helped by a collapse in cryptocurrencies redirecting small traders&#8217; focus to the equity market.



Bitcoin bought $36,750 on Wednesday.



(Reporting by Andrew Galbraith in Shanghai and Tom Westbrook in Singapore; Editing by Lincoln Feast.)

Stocks loiter around peaks as traders wait for data

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/airtel-buildings-820x613.jpg" alt="" class="wp-image-405622" width="634" height="474" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/06/airtel-buildings-820x613.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/airtel-buildings-300x224.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/airtel-buildings-107x80.jpg 107w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/airtel-buildings-768x574.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/06/airtel-buildings.jpg 1024w" sizes="auto, (max-width: 634px) 100vw, 634px" /><figcaption><a rel="noreferrer noopener" target="_blank" href="https://www.google.com/url?sa=i&amp;url=https%3A%2F%2Fwww.flickr.com%2Fphotos%2Fdcmetroblogger%2F5702690050&amp;psig=AOvVaw0tK5tvpQyHcyh1L6Rm_k5e&amp;ust=1622705392582000&amp;source=images&amp;cd=vfe&amp;ved=0CAkQjhxqFwoTCNivs5m3-PACFQAAAAAdAAAAABAP">Airtel Tanzania</a> Photo via:  <a rel="noreferrer noopener" target="_blank" href="https://www.flickr.com/photos/dcmetroblogger/5702690050">Flickr</a> </figcaption></figure>



Airtel Africa said on Wednesday it had sold its Tanzanian tower operations for about $175 million, as the telecoms company sharpens its focus on its core subscription services like voice and data packages.



The Africa-focussed unit of India&#8217;s Bharti Airtel said it would distribute part of the proceeds to the Tanzania government in line with the terms of its public listing in 2019, adding that it would also use some of the cash to cut its debt.



 (Reporting by Pushkala Aripaka in Bengaluru; Editing by Subhranshu Sahu)

airtel-buildings

Airtel Africa sells Tanzania towers to focus on subscription offerings

SHANGHAI/SINGAPORE, June 2 (Reuters) &#8211; Stocks chopped around record peaks on Tuesday, while the dollar was pinned near recent lows, as markets awaited U.S. jobs data and looked ahead to crucial central bank meetings in Europe and United States for guidance on the interest rates outlook.



MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan touched a three-month peak, before profit-taking in recently strong Chinese markets pulled it 0.4% lower. Aussie stocks hit a record high, while Japan&#8217;s Nikkei rose 0.5%.



World stocks sat just below Tuesday&#8217;s record, however momentum has clearly ebbed from the year-long COVID-19 rally as investors begin to worry a stronger-than-expected rebound means sooner-than-expected monetary policy tightening.



Brent crude was firm after closing above $70 a barrel for the first time in two years, while bond and currency markets were becalmed as traders wait on data for clues as to the recovery&#8217;s progress.



U.S. and European equity futures were steady, with S&amp;P 500 futures flat and EuroSTOXX 50 futures up 0.2%.



&#8220;Non-farm payrolls looms large on Friday,&#8221; said National Australia Bank&#8217;s head of currency strategy, Ray Attrill, and could rouse financial markets from a few weeks of inertia.



After a big miss in April, when monthly hiring of 266,000 confounded expectations for 1 million, May estimates range between 400,000 and 1 million, with consensus around 664,000.



&#8220;The uncertainty around payrolls will have an influence on sentiment…whether we get a print nearer to 250,000 or a million is going to have quite some impact I think.&#8221;



European factory gate price surveys and the U.S. Federal Reserve&#8217;s &#8220;beige book&#8221; economic snapshot, both due later on Wednesday, will also be closely watched while Fed and European Central Bank meetings later in June loom largest on the horizon.



&#8220;As the major developed economies continue to reopen from COVID lockdowns the focus on central bank meetings is going to intensify,&#8221; MUFG analysts said in a monthly outlook note.



They expect the ECB to avoid signalling a slowdown in bond purchases, but think the Fed might confirm that &#8220;very initial&#8221; discussions on tapering its bond buying have begun.



DATA WATCH



Australia provided the latest piece of better-than-forecast economics on Wednesday, with growth beating market expectations and lifting national output above pre-pandemic levels.



That helped the stock market to its latest record, but couldn&#8217;t kick the currency out of its recent range as the central bank has been stubbornly sticking to its dovish tone.



The Aussie was last steady at $0.7747. The euro held at $1.2218, just shy of recent highs as the risk of a dollar rally if strong data prods the Fed into tightening is keeping investors from adding to large dollar shorts.



Overnight, data showed U.S. manufacturing activity rose in May, as pent-up demand boosted orders, pushing Treasury yields higher.



Benchmark 10-year rates were steady on Wednesday at 1.6079%, with the small rise enough to crimped gold prices.



At $1,898 an ounce the metal was flat, but it is up more than 13% in just over two months, mostly thanks to help from a falling U.S dollar.



Brent futures rose 0.6% to $70.67 per barrel and U.S. West Texas Intermediate crude added 0.56% to $68.10 per barrel, despite the OPEC+ alliance agreeing to hike output in July.



Wall Street indexes had closed broadly steady on Tuesday, with the revival of gains in retail-investor driven &#8220;meme stocks&#8221; standing out.



AMC Entertainment Holdings rose more than 20% and is up more than 1,400% for the year &#8211; perhaps helped by a collapse in cryptocurrencies redirecting small traders&#8217; focus to the equity market.



Bitcoin bought $36,750 on Wednesday.



(Reporting by Andrew Galbraith in Shanghai and Tom Westbrook in Singapore; Editing by Lincoln Feast.)

June 1 (Reuters) &#8211; Gold steadied near a 5-month peak on Tuesday, buoyed by a subdued dollar as focus turned to key U.S. economic data due later this week.



Spot gold was up 0.05% at $1,908.81 per ounce at 1237 GMT, having earlier touched its highest since Jan. 8 at $1,916.4.



U.S. gold futures were up 0.3% at $1,911.70.



&#8220;It is quite clear from Friday&#8217;s (consumer price) data that there are ongoing concerns about inflation emerging. This is all part of a developing story, and one which would develop very much in the second half of this year,&#8221; independent analyst Ross Norman said.



The dollar index shed 0.2% against rivals, making bullion cheaper for those holding other currencies.



Keeping gold&#8217;s advance in check was a slight uptick in U.S. Treasury yields, translating into higher opportunity cost of holding non-yielding bullion.



&#8220;However, this (higher yields) is unlikely to weigh on gold for any prolonged period so long as yields remain below the rate of inflation. We therefore expect the price to climb to $2,000 per troy ounce by year&#8217;s end,&#8221; Commerzbank analyst Carsten Fritsch said in a note.



Gold, considered a hedge against inflation that could be triggered by widespread money printing by central banks to aid economic revival, recorded its best month of the year in May, supported in part by concerns about inflation.



Investors now await key U.S. economic readings, with the main event of U.S. payrolls figures due on Friday.



Spot gold may rise into a $1,932-$1,953 range, Reuters technical analyst Wang Tao said.



Silver was up nearly 1% at $28.32 per ounce. Palladium fell 0.2% to $2,824.54, while platinum fell 0.8% to $1,177.46.



&#8220;The disappointing performance of the platinum price recently is also reflected in ETF demand. In contrast to gold, platinum has registered ETF outflows of late,&#8221; Fritsch added. 



(Reporting by Nishara Karuvalli Pathikkal, Arundhati Sarkar in Bengaluru; Editing by Aditya Soni and Nick Macfie)

Economy

Bond yields hit fresh 1-month low as taper bets recede

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South Africa’s Economy Expands at Slower Rate in First Quarter

South African rand slips ahead of GDP; rate hike bets buoy Russian rouble

OPEC chief, in upbeat oil outlook, sees oil stocks falling further

Asia shares hesitate, China imports underpin resources

Stocks climb, dollar slips as soft U.S. jobs data soothe rate hike fears

Stocks steady, dollar climbs as U.S. recovery sparks Fed tapering fears

Asian stocks under pressure as inflation worries haunt tech firms

Heritage dispute engulfs site chosen for Amazon’s new African HQ

Stocks drift as investors turn cautious ahead of U.S. payrolls

World food price index surges in May to highest level since 2011 -FAO

Digital currencies are the future for Russia’s financial system, central bank governor says

Stocks loiter around peaks as traders wait for data

Airtel Africa sells Tanzania towers to focus on subscription offerings

Stocks loiter around peaks as traders wait for data

Gold steadies near 5-month peak on subdued dollar

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Economy

Bond yields hit fresh 1-month low as taper bets recede

South African Rand Holds Ground after Strong GDP Data

South Africa’s Economy Expands at Slower Rate in First Quarter

South African rand slips ahead of GDP; rate hike bets buoy Russian rouble

OPEC chief, in upbeat oil outlook, sees oil stocks falling further

Asia shares hesitate, China imports underpin resources

Stocks climb, dollar slips as soft U.S. jobs data soothe rate hike fears

Stocks steady, dollar climbs as U.S. recovery sparks Fed tapering fears

Asian stocks under pressure as inflation worries haunt tech firms

Heritage dispute engulfs site chosen for Amazon’s new African HQ

Stocks drift as investors turn cautious ahead of U.S. payrolls

World food price index surges in May to highest level since 2011 -FAO

Digital currencies are the future for Russia’s financial system, central bank governor says

Stocks loiter around peaks as traders wait for data

Airtel Africa sells Tanzania towers to focus on subscription offerings

Stocks loiter around peaks as traders wait for data

Gold steadies near 5-month peak on subdued dollar

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