Market round-up: Euro rises on hawkish comments
The euro hopped to a one-week high on Tuesday as investors added positions on hawkish overnight comments by a policymaker that reaffirmed bets the eurozone economy’s outlook remains robust. The currency’s rise this year has lost some momentum in recent days as political concerns— notably Spain’s Catalan crisis—have grown pushing the euro down against the US dollar more than 3% over the last month. But on Tuesday, it bounced nearly 0.4% to $1.1789, its highest since 2 October, after overnight comments from Sabine Lautenschläger, a member of the European Central Bank executive board, calling for the central bank to roll back asset purchases in 2018. Reuters
Container volumes remain firm in September
Container volumes at major ports increased 7.9% in September, shows data compiled by PhillipCapital (India) Pvt. Ltd. This compares with an 8.4% rise in August. Growth so far this fiscal year (April-September) stood at 6.7%. While a favourable base may have aided growth last month, separately data from Indian Railways shows a heathy double-digit growth (up 19%) in export-import (exim) container traffic. In the month of August, exim container traffic on Indian Railways expanded by 19.5%. The data indicates a continued rebound in exim trade post the goods and services tax-infused slowdown in June and July.
India leads in refining capacity additions
As the balance of oil demand growth tilts towards India and South-East Asia, these markets will lead in increasing Asia’s refining capacity, according to Wood Mackenzie, a global consultancy group. According to Sushant Gupta, research director for Asia refining, this is an important shift for the refining markets in Asia as both India and South-East Asia have traditionally been slow in adding refining capacity. “To maintain self-sufficiency in transport fuels, Indian state-owned refiners need to add capacity at a much faster rate than in the past. A mega 1.2 million barrels per day refinery is being planned in the West Coast of India by all the state refiners and Saudi Aramco is interested in a stake,” Gupta said in a statement. India has the second largest refining capacity in Asia after China.