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Australian shares fall to a two-week low after inflation spikes sink rate-cutting hopes
Australian shares closed on Wednesday at their lowest levels in two weeks as a spike of core inflation dashed any hopes for a rate cut in the near future, prompting a sale-off in real estate and banking stocks. The S&P/ASX 200 Index fell by 0.96%, to 8,926.20. It is the first time that the index has fallen below the important 9,000-point mark since October 15. Data released on Wednesday showed that the core inflation rate rose at the fastest pace in two years in the third quarter of the year. This dampened expectations of a cut in rates next week, and forced markets to reduce their bets about the Reserve Bank of Australia (RBA)'s broader easing cycles. The odds of a rate reduction in December have fallen below 22%, from 47% before the data. Citi, Goldman Sachs and Standard Chartered are all Australian 'Big Four banks' that expect the RBA's key interest rate to remain at 3.60% in this year. The top lender CBA's economists have abandoned their calls for another rate cut in February next year and expect that the cash rate will remain unchanged for an extended period. Financials, the largest sector, fell by 1.9%, after two consecutive days of gains. All four of the "Big Four" banks closed in the red. National Australia Bank, the top lender in Australia, lost 2.6%. The cash rate is the basis for the valuation of defensive assets, which are an alternative to bonds. As a result, we see those stocks being sold as the expectation of a rate reduction next week has now been removed, said Luke Winchester. Goodman Group, a sector leader, fell 1.4%. CSL, the healthcare sector's main stock, fell by 4% on Tuesday. The benchmark S&P/NZX 50 Index in New Zealand closed at 13,409.21, a slight increase. Atharva Singh, Bengaluru (reporting); Sonia Cheema, editing)
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Gold falls ahead of Fed decision; dollar strength and trade optimism weigh
Gold prices were unchanged on Wednesday ahead of a Federal Reserve interest rate cut that was widely expected. However, expectations of a possible U.S. China trade deal, and a stronger Dollar, kept bullion at a three-week-low. As of 0513 GMT spot gold was unchanged at $3,951.59 an ounce after Tuesday's drop to its lowest level since October 7. U.S. Gold Futures for December Delivery fell 0.4% to $ 3,965.20 an ounce. Gold is now more expensive to other currency holders due to the 0.2% rise in the dollar index. Kelvin Wong, senior market analyst at OANDA, said: "The fuel behind this short-term gold correction is the readjustment from safe-haven instruments to more responsive instruments like global equities because of trade optimism." Gold is under pressure to fall due to short-term leverage and technical levels being breached. The fundamentals of gold are still positive. Over the weekend, top Chinese and U.S. economists hammered out the framework for a trade agreement between U.S. president Donald Trump and his Chinese equivalent Xi Jinping. The deal would halt steeper American tariffs as well as Chinese controls on rare-earth exports. Trump and Xi will meet in South Korea Thursday. The progress in U.S. China trade talks has continued to erode demand for safe-haven assets like gold. This pullback extended as tensions eased. The recent falls may offer central banks an opportunity to increase purchases, ANZ stated in a report. Investors are also watching for any language that Jerome Powell uses to express a forward-looking outlook. At its Thursday policy meeting, the European Central Bank will likely leave interest rates unchanged. Gold that does not yield is a good investment in low interest rate environments and economic uncertainty. The gold price has risen by 52% in the past year, with a peak of $4381.21 reached on October 20. This was boosted by economic and geopolitical uncertainty, bets to lower rates, and central bank purchases. Spot silver rose 0.8% per ounce to $47.38, platinum dropped 0.8% at $1,572.70, and palladium slipped 0.1% to $1.392.28.
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The morning bid is EUROPE: Fed, Big Tech, and Trump pageantry are the order of the day
Rae Wee gives us a look at what the future holds for European and global markets. The markets are busy today with the Federal Reserve's key policy announcement, and earnings from Wall Street tech giants and Europe. Microsoft, Alphabet, and Meta will release their results after the bell. It is important that they deliver strong numbers to justify their high valuations. Asia stocks rose on Wednesday, thanks to a spillover effect from Wall Street. This optimism was fueled by Nvidia's announcement that it would build seven new supercomputers for U.S. Department of Energy. Microsoft has reached an agreement with OpenAI that allows it to restructure as a public benefit company while also giving Microsoft a 27% stake in ChatGPT. The AI boom is looking good for the moment, but there's still a big question: Is it headed towards a bubble? If there are any signs that demand has slowed or that massive spending has not paid off as expected, it could cause a rush to sell crowded stocks in Big Tech. Investors will be watching for further Fed easing in December. The ongoing U.S. shutdown has prevented the release of important economic data, at a time when there is uncertainty over the state of the U.S. employment market. However, signs of a cooling in labour conditions and softer-than-expected inflation could give policymakers the confidence to lower interest rates. The central bank will also be focusing on whether it finally ends its long-running program of balance sheet reduction, also known as quantitative tightening. The yen gained strength on other markets after U.S. Treasury Sec. Scott Bessent warned Tokyo to not keep the yen weak by allowing its central bank to raise rates. The Australian dollar climbed after data revealed that domestic consumer prices rose by the largest amount in two-and-a half years during the third quarter of 2009. A shockingly large increase in core inflation appeared to rule out any interest rate cuts in the near future. The U.S. president Donald Trump has a golf club to a golden crown. He landed in South Korea Wednesday, the last leg of his Asia tour. In bilateral talks, he will discuss trade and investment with South Korean president Lee Jae Myung. The presidential office announced that Lee would present Trump with a replica of a gold crown, and will also award him the "Grand Order of Mugunghwa", which is the highest decoration in the country. Trump arrived in South Korea after a visit to Tokyo where he praised Japan's first woman prime minister, Sanae Takayichi. He lauded her commitment to accelerating a military buildup, and welcomed the signing of deals on rare earths and trade. Takaichi gave Trump a putter that Shinzo Abe used, Trump's golfing partner and Japan's former leader. This was one of many references to Trump's relationship with Abe which anchored ties between both countries during Trump's first presidential term. The following are key developments that may influence the markets on Wednesday. Federal Reserve and Bank of Canada Rate Decisions Microsoft, Alphabet and Meta earnings - Mercedes-Benz, UBS, Adidas, GSK, Airbus earnings
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Russia claims that Ukraine has targeted Moscow for the third night in a row with drones.
Russian authorities reported that Ukraine had sent drones to Moscow for a third night in a row and also targeted other Russian regions. The drones disrupted air traffic across the country, and threatened an industrial plant located in the south of Russia, they said. The Russian Defence Ministry announced on Telegram that Russian air defence units had destroyed 100 Ukrainian drones over the course of the night, including six in Moscow and thirteen over the bordering areas. Kyiv continued to launch long-range drone attacks on Moscow and other Russian regions over the past few months. The aim, according to Kyiv, was "to hit Russia's military and industrial assets and sap its war economy, and show Russians that the conflict is not far away." Sergei Sobyanin said that the attacks on Moscow were in waves. Rosaviatsiya, the Russian aviation watchdog, said that three of Moscow's airports and others in other parts of the country were temporarily closed for safety. Vladimir Vladimirov said that the governor of the Stavropol Region in Russia, Vladimir Vladimirov also reported on Telegram that Ukraine launched drones against the Budyonnovsk Industrial Zone. The Russian Defence Ministry said that its units shot down two drones in the area, which is located in the south of the country. Vladimirov, a Telegram user, said that the attack did not cause "significant" damages and there were also no casualties. Ukrainian media outlets, such as RBK Ukraine, claim that Kyiv has attacked the Stavrolen Chemical Plant in Budyonnovsk, a Russian Lukoil-owned plant. Stavrolen, according to Russian and Ukrainian press, is one of Russia’s largest producers of polyethylene (polypropylene) and polyethylene. Stavrolen's governor did not disclose what was attacked in Budyonnovsk. Stavropol Governor did not reveal what happened in Budyonnovsk. Russia usually does not provide much information about the impact of Ukrainian attacks on its territory, unless there are civilians or infrastructures that have been hit. The Russian Defence Ministry confirmed that 35 Ukrainian drones were destroyed by Russian units in the Moscow area over the two previous nights. No damage was reported.
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Cyclone Montha strikes India's East coast, killing one
Officials said that one person died on India's east coast when Cyclone Montha hit around midnight. Heavy rains and gusty wind also damaged crops and utility poles. The Indian weather service has predicted extremely heavy rains for coastal states Andhra Pradesh and Odisha on Wednesday, with gusts up to 90 km/h. The cyclone will likely weaken into a deep depression by the end of the day. Local officials reported that a 48-year old woman died in Andhra Pradesh’s Konaseema District after a palm fell on her. The government reported that as of Tuesday evening, more than 38,000 acres of crops were damaged, along with several power lines and utility posts in Andhra Pradesh. There are efforts underway to restore electricity in areas that have been affected by outages. A video from ANI in which we have a minor stake showed rescue workers in the state clearing uprooted trees and cleaning streets as rain continued. A notice revealed that the Tibet side of Mount Everest has stopped visitor access due to unseasonably heavy snowfall, caused by weather changes brought about by the cyclone. Reporting by Jatindra dash in Bhubaneswar and Rishika sadam in Hyderabad. Writing by Tanvi mehta. Editing by Edwina gibbs.
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Floods in Central Vietnam kill 9 and leave 5 others missing
The government reported on Wednesday that floods in central Vietnam caused by heavy rainfall records have resulted in the deaths of at least nine people. Five others are still missing. The government released a statement stating that six of the deaths occurred in Danang, which is home to the most popular beach in the country, and in the ancient town Hoi An. In a separate report, the government disaster agency stated that the floods had also inundated over 103,000 homes, mainly in the top tourist destinations of Hue, and Hoi An. Vietnam is susceptible to violent storms, which can be deadly. Flooding and storms are also common in Vietnam. This causes widespread damage to property. The former imperial capital Hue, listed by UNESCO, and the ancient city of Hoi An continue to be pounded with heavy rains, according to the agency. This comes after the rainfall in this area reached a record-high in a 24-hour period that ended late Monday night, surpassing 1,000 millimetres. Images circulated on state media showing that Hoi An was still inundated with floodwater, and several houses were submerged to the roofs. Hue was hit by flooding of up to 1-2 meters in 32 of the 40 communes. The government reported that water levels have continued to rise in the rivers and reservoirs of Danang. It said that "widespread flooding" continued in low-lying river banks and urban areas. There was also a high risk of flash floods, landslides and other natural disasters in the mountainous regions of Danang. The disaster agency reported that landslides had occurred in several places, blocking traffic and destroying power grids. It also said the state-run railway company has not yet been able resume services between the capital Hanoi, and the business hub Ho Chi Minh City, following a Tuesday suspension. According to the weather agency of the government, heavy rains will continue over central Vietnam for the next two weeks. Some areas are expected to receive rainfall above 400 millimetres between early Wednesday and late Thursday.
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Valaris Adds $190M in New Offshore Drilling and Wind Contracts
Offshore drilling contractor Valaris has secured a series of new contracts and extensions worth about $190 million in the North Sea and Middle East regions, lifting its total contract backlog to $4.5 billion.The latest awards include a mix of deepwater drilling and jack-up projects across Egypt and the UK North Sea, underscoring continued demand from both oil and gas and offshore wind clients.Valaris’s drillship VALARIS DS-12 was awarded a five-well contract by BP Exploration Delta Limited in Egypt, scheduled to begin in the second quarter of 2026. The work is expected to last around 350 days, with a total estimated value of $140 million, including a mobilization fee. The contract also provides three optional wells.In the UK North Sea, the company secured a series of jack-up rig extensions and new assignments. VALARIS 121 received a 194-day extension from Shell, beginning in February 2026 in direct continuation of its current work, adding over $25 million to the backlog.VALARIS Norway was granted a 150-day extension by Ithaca Energy, commencing in August 2026, with an estimated value of around $18 million.The company also expanded into the offshore wind segment, with VALARIS 248 contracted by GE Vernova to provide accommodation support services for a North Sea offshore wind project.The 120-day contract, starting November 2025, is valued at over $8 million and includes six priced options totaling 104 additional days.Separately, VALARIS 122 obtained two 28-day extensions from Shell for accommodation support, starting January 2026, with a combined value exceeding $6 million and one priced option remaining.Valaris said it also sold the jackup VALARIS 247 in August 2025 for cash proceeds of approximately $108 million.
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Gold prices rise ahead of Fed's decision; however, trade optimism limits the upside.
Gold prices rose a little on Wednesday ahead of a Federal Reserve interest rate cut that was widely expected, but easing U.S. China trade tensions held bullion in check. As of 0257 GMT spot gold rose 0.2% to $3,957.42 an ounce after falling to its lowest level since October 7 on Monday. U.S. Gold Futures for December Delivery eased 0.3%, to $3.971.20 an ounce. Kelvin Wong, senior market analyst at OANDA, said: "The fuel behind this short-term gold correction is the readjustment from safe-haven instruments to more responsive instruments like global equities because of trade optimism." In the short term, gold is under pressure from both short-term leverage and technical levels being breached. The fundamentals of gold are still positive. Over the weekend, top Chinese and U.S. economists hammered out the framework for a trade agreement between U.S. president Donald Trump and his Chinese equivalent Xi Jinping. The deal would halt steeper American tariffs as well as Chinese controls on rare-earth exports. Trump and Xi will meet in South Korea Thursday. The progress in U.S. China trade talks has continued to sap the demand for safe-haven assets like gold. This pullback extended as tensions eased. The recent falls may offer central banks an opportunity to increase purchases," ANZ stated in a report. The Fed is widely anticipated to reduce interest rates by a quarter percentile point at its policy meeting that will take place on Wednesday. Investors are also watching for any future-oriented language from Fed chair Jerome Powell. At its Thursday policy meeting, the European Central Bank will likely leave interest rates unchanged. Gold that does not yield is a good investment in low interest rate environments and economic uncertainty. The gold price has risen by 52% in the past year, with a peak of $4381.21 reached on October 20. This was boosted by economic and geopolitical uncertainty, bets to lower rates, and central bank purchases. Other metals, such as platinum, palladium, and silver, also saw gains. Platinum rose 0.7% per ounce to $1.574.25 while palladium fell 0.7% at $1.391.07.
What will the UN agenda be and who will speak?
The 80th session of the United Nations General Assembly begins on Tuesday.
Who speaks when?
The United Nations, which was founded in 1945, has grown from 51 members to 193 today. The leaders of the Holy See, State of Palestine, and two non-member observers states, known as the United Nations' State of Palestine and the Holy See, may also speak.
Brazil is the first to speak in every meeting. U.N. officials say that Brazil was the first to speak in the early days of the world organization, when other countries resisted.
The United States, which hosts the U.N. HQ in New York City, is the second nation to address the General Assembly. The list is then ordered by hierarchy, and in general the first-come, first-served principle. The heads of state are the first to speak, followed by their deputy and crown princes. Next come heads of government and ministers, and then lower-ranking leaders of a delegaiton.
How long will they speak?
Leaders should adhere to a 15-minute voluntary time limit.
According to U.N. Records, Fidel Castro of Cuba spoke for approximately 4-1/2 hours during the 1960 opening of the General Assembly. Libyan leader Muammar Gadhafi spoke more than 1 1/2 hours in 2009.
WHAT WILL THEY TALK ABOUT?
Every session of the General Assembly begins with a specific theme. Leaders may briefly mention the theme before moving onto any topic.
The theme for this year is "Better Together: 80 Years and More for Peace, Development and Human Rights." Leaders are also likely to discuss:
GAZA. As the Gaza Strip war between Israel's Hamas militants and the Palestinian enclave approaches its second anniversary, leaders are gathering. A humanitarian crisis is worsening in the Palestinian enclave.
Benjamin Netanyahu, Israeli Prime Minister, is scheduled to speak at the General Assembly next Friday. Israel has denied the allegations of war crimes and crimes against humanity that the International Criminal Court made against it in Gaza. Israel launched an assault on Gaza City Tuesday.
The U.S. has refused to grant him a Visa. He is likely to appear via video.
UKRAINE. Volodymyr Zelenskiy, the Ukrainian president, will seek to bolster global support for Kyiv while U.S. Donald Trump attempts to broker a ceasefire more than three years since Russia invaded their neighbor. He will address the assembly this Wednesday, while Sergei Lavrov, Russia's foreign minister, will speak Saturday.
Next week, the U.N. Security Council will hold a meeting at a high level on Ukraine. The U.S. will be watched closely, both at the U.N. Security Council and during Trump's General Assembly address, to see if Washington announces measures such as sanctions to try to convince Russian President Vladimir Putin that he should negotiate with Zelenskiy.
IRAN. In New York, expect last-minute diplomacy over Iran's nuclear program. Tehran is trying to avoid the return of all U.N. Security Council Sanctions on the Islamic Republic by September 28. Both the Iranian president Masoud Pezeshkian, and foreign minister Abbas Araqchi will be attending the United Nations.
SYRIA. This year, the Syrian President Ahmed al-Sharaa will make a notable debut at the U.N. General Assembly. Hay'at Tahrir al-Sham, the group that he leads, led the revolt in December to topple President Bashar al-Assad. This ended 13 years of civil conflict.
HTS was the former al-Qaeda branch in Syria, formerly known as al-Nusra Front. It broke ties with al-Qaeda in 2016. The group, Sharaa and its leader remain under U.N. sanction. However, Sharaa was granted a travel waiver to New York between September 21-25.
CLIMATE. Leaders of small island nations and other states that are most affected by climate change will be expected to urge further action as the world struggles to limit global warming to 1.5 degrees Celsius.
WOMEN. Leaders will gather on Monday to celebrate the 30th anniversary a historic women's rights convention. Beijing's 1995 Fourth World Conference on Women is best remembered for the slogan "women’s rights are human right."
Leaders are likely to be disappointed by the lack of progress made and the growing attacks against women's rights. The theme of Monday's meeting is to recommit to, accelerate and resource the implementation of the 1995 declaration. At the Beijing Conference, 189 countries signed a declaration calling for "full participation and equality of women in the political, civil, economical, social, and cultural life".
SUDAN. Next week, some leaders are likely to discuss the war that has lasted for two and a half years in Sudan. The United Nations has called the war between the paramilitary Rapid Support Forces (RSF) and the Sudanese Army, which is a conflict between the Rapid Support Forces, and the Sudanese Army, the worst humanitarian crisis in the world. There are pockets of famine all over the country, including al-Fashir the capital of North Darfur State.
The United States, Saudi Arabia, Egypt, and the United Arab Emirates have all called for a humanitarian truce lasting three months, followed by a ceasefire permanent. According to many, the "Quad", or four countries, have the greatest influence on the warring parties.
U.S.-VENEZUELA TENSIONS. Venezuela complained about the United States' naval build-up in the Southern Caribbean waters and the nearby waters at the end of last month. The U.S. military launched two deadly attacks on suspected Venezuelan drug-cartel vessels in international waters since then.
Venezuelan Foreign Minister Yvan Yli is likely to raise the increased tensions when he addresses the General Assembly this Saturday. Venezuelan President Nicolas Maduro claims that the U.S. wants to remove him from power.
RACE TO APPOINT A NEW U.N. SECRETARY-GENERAL. The United Nations will select a new Secretary-General next year. Guterres' second five-year tenure will end on December 31, 2026. On the sidelines next week of the General Assembly, there will be much talk about who might be the candidate to succeed him.
The U.N. Security Council, composed of 15 members, must agree on a candidate that will be recommended to the 193 member General Assembly. This means that the five veto-powers - Britain China France Russia and the U.S. have to agree. (Reporting and editing by Howard Goller; Michelle Nichols)
(source: Reuters)