Latest News
-
Morning bid Europe- News overload splits the markets
Kevin Buckland gives us a look at what the future holds for European and global markets. Investors are unable to find the right information with so much information. Investors are now looking in multiple directions simultaneously, and this is creating a clear split between asset classes. The stock markets in Asia are rallying on Thursday. From Taipei to Seoul, and Sydney to Sydney, they have all reached new highs. This is due to the AI euphoria, which has been a driving force in the tech-heavy North Asian market. The SOX semiconductor index also rose 3% over night. ASML, a Dutch manufacturer of semiconductor equipment, sent out a bullish message on Wednesday when its third-quarter bookings beat market expectations. This has boosted expectations for strong ASML results later today. The big banks also kicked off the U.S. earnings period with strong results, which paint a picture of an economy that is resilient. These figures are getting more attention due to the lack of official macro-data because of the government shutdown. Gold has been rising to record highs and the dollar is falling, especially against the traditional safe havens of the yen, the Swiss franc and the euro. Outside of the equities market, traders are worried about an escalation in tensions over trade between Washington and Beijing. On Wednesday night, President Donald Trump said that they were "in a war of trade" despite his Treasury and Trade chiefs expressing some hope for a de-escalation. Treasury Secretary Scott Bessent hinted, for instance, at an extension of tariff reprieves and said Trump still expected to meet Chinese leader Xi Jinping this month in South Korea, but without providing a date. This type of market tug-of war creates an inherent tension and increases the risk that something, or several things, will snap back. European stock futures currently point lower. A rebalancing may already be underway. The following are key developments that may influence the markets on Thursday. Estimate of UK GDP, Services, Industrial Output, Manufacturing Output (all August). Italy CPI (September). -Euro area trade balance (August)
-
Gold continues record rally amid US-China tensions and rate outlook
Gold reached a record-high on Thursday, increasing for a fifth consecutive session as investors increased their bets in safe-haven assets amid rising trade tensions, a U.S. government shutdown, and higher rate-cut betting. As of 0311 GMT, spot gold had risen 0.8% to a new high of $4,241.77 an ounce. U.S. Gold Futures for December Delivery gained 1.2%, to $4253.70. U.S. officials criticised China on Wednesday for its expanded controls on rare-earths, calling them a threat to the global supply chain. They also signalled potential retaliatory actions, as both countries had introduced reciprocal fees at ports on their ships on Tuesday. "The Fed's comments that they are more likely to cut rates in the future is encouraging, and Donald Trump calling this a trade conflict is also a strong boost for gold," stated OANDA Senior Analyst Kyle Rodda. Bessent said that Washington could take further measures, such as export controls, should Beijing continue. He also added that Washington was ready to impose tariffs on China for its purchases of Russian crude oil as long as European allies joined him. A Treasury official stated on Wednesday that the two-week federal government shutdown could cost the U.S. economic system as much as 15 billion dollars a week due to lost production. Investors expect a rate cut of 25 basis points at the Federal Reserve meeting this month, followed by another one in December. In a low interest-rate environment, non-yielding, or "non-yielding" gold tends to perform well. This is due to a variety of factors including geopolitical risk, bets on rate cuts, central bank purchases, de-dollarization and strong inflows into exchange-traded gold funds. ANZ expects the gold price to reach $4400 per ounce before year's end. The SPDR Gold Trust is the largest gold-backed ETF. Its holdings increased to 1,022.60 tonnes on Wednesday. This was their highest level since July 2022. Silver spot was up by 0.2% to $53.17 an ounce, following the gold rally and the short squeeze on the spot market. Palladium increased 0.8% at $1,548.75, while platinum gained 0.7% to $1,671.65. (Reporting and editing by Rashmi aich, Sherry Jacob Phillips, and Ishaan arora in Bengaluru)
-
Shanghai copper prices rise as countries warn about low processing fees; trade problems persist
Shanghai copper rose on Thursday as investors focused their attention on the supply risks, with several countries warning of tumbling processing fees, and U.S. China trade tensions ahead of a high-stakes summit between leaders from both nations. As of 0320 GMT, the most active copper contract traded on Shanghai Futures Exchange rose 0.34%, to 85,250 yuan (11,967.77 dollars) per metric tonne. The benchmark copper price for three months on the London Metal Exchange has barely changed. It is now $10,638.5 per ton, down just 0.02%. Japan, Spain and South Korea expressed concern on Wednesday over the plummeting treatment and refining fees (TC/RCs) for copper. They said the decline in this key revenue source threatened the sustainability of the copper industry. Three copper importers have warned that a persistently low or even negative TC/RC could reduce refined production by eroding profits. The warning was issued to intensify concerns about the refined copper supply, due to falling TC/RCs. This has given some support to red metal. Investors also pay attention to the latest developments in trade tensions between the United States and China. The top U.S. officials including Trade Representative Jamieson Grer and Treasury Sec. Scott Bessent warned that China's controls on rare earth exports were a threat to supply chains. They urged Beijing not to continue with its current course and warned of further decoupling. Beijing, on the other hand, defended its measure by saying that it did not constitute an export prohibition. The remarks were the latest development in the lead-up to a possible meeting between U.S. president Donald Trump and Chinese president Xi Jinping later this month, although the recent flare up of tensions has raised questions about whether or not the meeting will actually take place. Aluminium, lead, tin, and zinc all posted increases of 0.37%. Zinc, however, only showed a slight decrease of 0.2%. Nickel was not affected. Aluminium, zinc, nickel, and lead all rose in price on the LME. Tin also increased by 0.51%.
-
Van Oord Receives Hydraulic Engineering Accolades for Offshore Wind Work
Dutch offshore installation firm Van Oord has been awarded the prestigious Jan Agema Award 2025 for its contribution to the offshore wind project Borssele III, IV and V.The jury praised the project for its technical innovation, societal relevance, and future-proof design, highlighting it as a powerful response to the urgent energy transition in the North Sea.The Jan Agema Award, established by the Dutch Association of Hydraulic Engineers in honor of Jan Agema, encourages innovation in hydraulic engineering.The award is presented every five years to the most innovative project of the preceding period.For the first time, an offshore wind project was submitted and selected, marking a milestone in recognizing sustainable energy solutions within the hydraulic engineering sector.Van Oord has now received the Jan Agema Award twice, having previously won in 2015 for the Second Maasvlakte project.The Borssele wind energy area (1,400 MW), located off the coast of Zeeland, comprises five sites. Borssele V features several scalable and reusable innovations, including the slip-joint technique for fast, safe and maintenance-free foundation installation in deep waters. Oyster reefs have been integrated into the scour protection around the turbines to enhance seabed biodiversity.“This project brings together everything the sector stands for: technical innovation, societal relevance and future resilience. The jury sees this wind farm as a powerful response to a pressing societal challenge: the transition to sustainable energy in the North Sea. At the same time, the project demonstrates that this transition offers opportunities for technical breakthroughs and international impact,” said the Jury of the Jan Agema Award:Van Oord played a pivotal role as Balance of Plant contractor, with early involvement in both design and execution. Thanks to close collaboration with clients, research institutes and industry partners, the project was successfully delivered. Borssele illustrates how trust and integrated supply chain cooperation lead to sustainable innovation.“Offshore wind is vital for the future of sustainable energy. Strong collaboration and open communication between all parties are essential to realise these projects. It’s also crucial to actively involve young people in these developments, as their insights and ideas are of great value. After all, it’s their future we’re building,” added Jan Willem Elleswijk, Project Director, Van Oord.In addition, the Afsluitdijk dyke reinforcement project, carried out by construction consortium Levvel (Van Oord, BAM, Rebel and Invesis) on behalf of Rijkswaterstaat, was awarded second place.
-
Gold reaches record levels on the back of trade anxiety, as Asia stocks rally with Wall Street
The stock market rose in most of Asia, and the chip sector was buoyant after a strong overnight rally by U.S. counterparts. Wall Street's strong start to earnings season also lifted the mood. The simmering trade tensions between Beijing, Washington and Tokyo increased the appeal of safe-havens such as gold (which reached a new record high) and the Japanese yen while undercutting dollar. Crude oil prices rose after U.S. president Donald Trump announced that Indian Prime minister Narendra Modi had promised to stop purchasing oil from Russia. This country supplies around one-third its imports. Nikkei gained 0.8% in Japan, as shares related to chip technology and artificial intelligence boosted the index. All three equity benchmarks reached new highs. The KOSPI in South Korea jumped by 1.8%, while Australia's equity index climbed by 1.1%. Taiwan's TSMC will report earnings in the afternoon, following Dutch chip-making tools manufacturer ASML, which reported third-quarter orders, operating income and profits above market expectations. Hong Kong and mainland Chinese stocks were also higher, after an initial wobble. This was despite the drag of trade tensions. The U.S. Stock Futures are flat after overnight gains of 0.4% for the S&P500 and 0.6% for the tech-heavy Nasdaq. The Philadelphia SE Semiconductor Index soared 3%. Stock investors were captivated by the AI narrative, and the signs of economic strength in the form of robust U.S. Bank earnings. This was despite Trump's announcement late Wednesday that "the U.S. has entered a trade conflict with China", which the markets already concluded based on recent comments made by both sides. Gold reached a record $4,234.41 an ounce in the last session. The dollar fell for the third consecutive session, falling 0.2% against a basket major counterparts. It fell as much as 0.4%, to 150.51yen. This brought the psychologically important 150-yen line into focus. The Swiss franc also fell 0.4%, another haven currency. The euro increased by 0.2% to $1.1667. Scott Bessent, the U.S. Treasury secretary, said that an extension of current tariff relief was possible and that Trump expected to meet Chinese Leader Xi Jinping later this month in South Korea. The brinkmanship that exists between the U.S.A. and China is still present, according to Kyle Rodda. Senior financial analyst at Capital.com. It will only calm down when China backs off its threat to restrict rare earth exports, and the U.S. reverses the tariff increase scheduled for November 1 to 100%. Markets will be trembling until then." Trump's trade maneuvers have also helped oil prices rise from five-month lows. Brent crude futures are up 0.9%, trading at $62.48 per barrel. U.S. West Texas Intermediate futures are also up 0.9%, trading at $58.81. The U.S. President said on Wednesday that India will stop buying oil from Russia, its largest supplier. Washington would then try to convince China to follow suit as it intensifies its efforts to cut Moscow's revenue and to pressure it to negotiate an agreement in Ukraine.
-
Dalian iron ore reaches a six-week low due to accumulating stocks of steel
Dalian iron-ore futures continued to decline on Thursday and hit a six-week low, as steel inventories in the world's largest consumer China cast doubt on demand prospects. As of 0330 GMT, the most-traded contract for January iron ore on China's Dalian Commodity Exchange fell 0.83% to $774 yuan (US$108.65) per metric ton after hitting its lowest level since September 2, at 769.5 Yuan. As of 0320 GMT on the Singapore Exchange benchmark November iron ore had fallen by 0.11%, to $105 per ton. This was due to hopes for further rate cuts from the U.S. Federal Reserve, which helped to curb some losses. On Wednesday, the contract reached a low of $103.6 per ton. This was the lowest price in nearly a week. A weaker dollar makes commodities priced in dollars cheaper for buyers who use other currencies. Steven Yu, senior analyst at Mysteel, says that the market is now focusing on the stock accumulation in the steel sector, amid signs of a de-escalation in trade tensions between China and the U.S. Yu said that "steel inventories have piled up as a result of the fact that demand is less elastic than supply." The disappointing credit data from China has also raised concerns about the outlook for demand. China's new loans to banks in September were lower than expected, as policymakers struggled to reverse the prolonged property slump and curb overcapacity. The renewed U.S. - China trade war worries, despite the tit for tat port charges, weighed down on sentiment and drove ore prices and steel costs lower. The benchmark steel prices on the Shanghai Futures Exchange have fallen further. The Shanghai Futures Exchange saw a further decline in steel benchmarks. Coking coal, coke and other steelmaking ingredients added respectively 1.22% and 0.67 percent. $1 = 7.1440 Chinese Yuan (Reporting and editing by Amy Lv, Colleen Waye)
-
Bessent: US expects Japan not to buy Russian energy
U.S. Treasury secretary Scott Bessent told Japanese Finance Minister Katsunobu Kato on Wednesday that the Trump administration expected Japan to stop importing Russian oil. Bessent, who spoke on X after the meeting on Wednesday, said: "Minister Kato & I discussed important issues pertaining the U.S. - Japan economic relationship as well as the Administration's expectations that Japan cease importing Russian Energy." Bessent met with Kato on the sidelines this week of the G7, G20 and annual meeting of the International Monetary Fund. When asked if Japan had been urged to stop buying Russian energy from Bessent, Kato replied that Japan would do its best to follow the principle of coordination with G7 nations to achieve peace in Ukraine. The Group of Seven nations (G7) - the U.S.A., Japan Canada, Britain France Germany and Italy -- agreed this month to coordinate, intensify and target sanctions against Moscow for its war in Ukraine. They will do so by targeting countries who buy Russian oil, thereby enabling sanctions circumvention.
-
Oil prices rise 1% after Trump claims India has promised to stop purchasing Russian oil
The oil prices increased by about 1% on Thursday morning after U.S. president Donald Trump announced that Indian Prime Minister Narendra modi had promised to stop purchasing oil from Russia. Russia supplies around one-third the country's imports. Brent crude futures increased 57 cents or 0.9% to $62.48 per barrel at 0046 GMT. U.S. West Texas Intermediate futures (WTI) also gained 0.9% or 54 cents to trade at $58,81. The two contracts reached their lowest levels since early May, in the previous session due to the U.S.-China tensions. Also, the International Energy Agency had warned that a large surplus would be expected next year because OPEC+ producers will increase output amid low demand. Trump announced on Wednesday that India will stop buying oil from Russia, its largest supplier. The U.S. will then try to convince China to follow suit as Washington intensifies its efforts to cut Moscow's revenue and to pressure it to negotiate an agreement in Ukraine. India and China are two of the top buyers for Russian crude oil exports by sea, which is sanctioned both by the U.S.A. and the European Union. Modi has resisted U.S. demands to stop purchasing Russian oil for months. Indian officials have defended the purchases, claiming they are vital to India's energy security. Tony Sycamore is a market analyst with IG. He said, "At a margin, this would be a positive development as it would remove a major buyer of Russian oil (India)." Investors will be looking for the U.S. Energy Information Administration's (EIA's) weekly U.S. Inventory Statistics release on Thursday after the mixed data released by the American Petroleum Institute trade group. Market sources cited API figures to say that U.S. crude, gasoline, and distillate stocks increased last week while inventories decreased. The sources reported that crude stocks increased by 7.36 millions barrels during the week ending October 10. Gasoline inventories also rose by 2.99 million barrels. Distillate inventories, however, fell by 4.79million barrels compared to a previous week. The U.S. remains the world's largest oil consumer. While the distillate stockpiles are down, they indicate a stronger demand for diesel. Analysts predict that U.S. crude stocks rose by approximately 0.3 million barrels in the past week. (Reporting and editing by Jacqueline Wong, Jamie Freed, and Katya Glubkova from Tokyo)
Climate non-profits prepare for a fight with Trump on tax status
Non-profits in the United States that are focused on climate change prepare to fight against a possible action by the Trump Administration to revoke tax exemptions this week.
Climate change groups have circulated memos in the last few weeks outlining the rumored executive action they expect from Donald Trump. This includes a change to IRS regulations to remove climate changes from the list of charitable topics that qualify and blocking the use U.S. grant funding to fund overseas projects.
Concerns were raised after Trump made comments criticizing the charitable status granted to Harvard University. This was seen as an initial shot at other so-called "501(c3)" organizations, which are named after the section of the tax code exempting charities from income taxes.
According to three non-profit leaders who participated, the American Civil Liberties Union (ACLU) and Public Citizen hosted a Zoom call Friday to discuss ways charities can prepare themselves for a potential executive action. After the maximum of 5,000 people had signed up, the call was oversubscribed.
Sandler Reiff, a political law firm, sent a memo on Friday to its clients in the non-profit sector and philanthropy to tell them to not panic if they are threatened with losing their tax exemption status or having international work frozen by the government.
The memo said that the President cannot unilaterally revoke the tax-exempt status of any organization. It also stated that any executive orders that attempt to do this "doesn't have legal validity".
Trump has been adamant about his antisemitism-free policy since his January inauguration. He has also moved swiftly to sidestep or undo environmental regulations, eliminate climate science research, and stop federal support for renewable energy.
In a post on social media last week, Trump said he was weighing whether he should seek to end Harvard’s tax-exempt designation.
The Trump administration has been threatening to halt climate change work by environmental groups and grant-making charities.
The foundations that donate to charities have said they will fight any attempts to limit the amount of money they give. The MacArthur Foundation has committed to spending an additional $150 millions in charitable donations over the next two year.
John Palfrey, the Foundation's president, told delegates in Britain that "we have more strength and protection than we realize" at a recent meeting of philanthropic organizations. Drop any restrictions that we believe we can. "Give gifts wherever you can."
Lawrence Lessig is a Harvard Law School professor who said that any order to change the tax status of non-profits would be legally questionable.
He said that there was no way a court could conclude that Trump had the authority to change the tax status for any organization without an investigation that began before Trump targeted that organization and determined that the organization violated the laws. (Reporting and editing by Peter Graff, Virginia Furness and Valerie Volcovici)
(source: Reuters)