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Stocks rally after Fed Governor Waller's comments on bond yields
Bond yields fell on Thursday, as Federal Reserve Governor Christopher Waller's comments signaled a willingness for the Fed to be patient in raising interest rates. Waller said in remarks at a NEXT Newsmaker event that if upcoming data?confirmed?inflation pressures were cooling off, he was inclined to argue for keeping interest rates steady at the next policy meeting of the U.S. central bank. In remarks for a NEXT Newsmaker, Waller said that if upcoming data 'confirmed' a cooling of inflation pressures, he would be inclined to advocate keeping interest rates constant at the next meeting of the U.S. Central Bank. After the comments, the expectations for an increase in rates at the Fed’s mid-September meetings dropped. According to CME FedWatch, the market is now pricing in roughly a 50% chance of a hike compared to 63.2% the previous session. The global bond yields jumped this week, as inflation fears grew with the U.S. - Iran war's biggest flare-up since the summer and the rise in oil price. Bruce Zaro is the managing director of Granite Wealth Management, Plymouth, Massachusetts. In the absence of (Fed chair Kevin) Warsh's forward guidance, you have the governors expressing their opinions. You have hedge fund managers saying that, contrary to what you might think, this is a good time to buy bonds because the total amount of debt does not seem like a problem. The yield on the 10-year Treasury note benchmark fell 3.6 basis point, on track for its biggest drop since August 25 to?4.758%. The yield of the 10-year Treasury note reached 4.818% on Wednesday, its highest level since November 1, 2023. The yield on the 10-year German note was down by 2 basis points at 3.353%. The Yen jumps on rate hike bets As traders increased their bets that the Bank of Japan would raise interest rates, the Japanese yen rose by 2% against U.S. dollars. Following Waller's remarks, the dollar continued to lose value. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen and euro) fell by 0.72%, reaching 98.88. The sudden, sharp rise of the yen in relation to the dollar on Tuesday sparked speculation that Japanese officials were intervening to support the currency. However, analysts pointed out BOJ data which showed no official intervention. Investors are eagerly awaiting Friday's U.S. jobs report to get more information. The Dow Jones Industrial Average rose by 613.15 or 1.16% to 53,675.10; the S&P 500 gained 75.23 or 0.98% to 7,741.83?and the Nasdaq Composite jumped 336.84 or 1.29% to 26,555.54. The MSCI index of global stocks?rose 11,82 points or 1.03% to 1,154.69. The pan-European STOXX 600 Index rose by 0.49%. John Williams, the New York Fed president, said that on Wednesday he still needed to collect information before he made his next monetary policy decision. Brent crude reached $95.75 a barrel, an increase of 0.13% for the day. U.S. Crude rose by 0.74%, to $91.69 per barrel. The U.S. strike on Iran and the renewed Israeli threat against Tehran have fueled fears about disruptions.
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UK pledges $541 Million to Brazil's Tropical Forest Fund
The United Kingdom announced on Thursday that it would invest PS400,000,000 ($541,000,000) in the Tropical 'Forever Facility' (TFFF), a Brazil initiative designed to?finance?the protection of endangered forest. Brazil's announcement of the TFFF was a major project at the COP30 talks on climate change last year. The United Kingdom's refusal to?contribute to the fund was met with criticism because the UK helped design the fund. The TFFF aims at raising $125 billion from governments, public institutions and other sources, including $25 billion. This money will be used to compensate countries based on how well they preserve forests. In a press statement, the UK government announced that the commitment would be structured as a loan, signaling its climate finance strategy of acting as "an investor instead of a donator." The statement stated that the investment is subject to due diligence and the UK's role in overseeing the fund. Mauricio?Voivodic, executive -director of WWF Brazil, described the UK's pledge as "very significant,"?adding it "reinforces a needed change in the way the world recognizes?and finances the conservation of tropical forests." Two sources say that Brazilian officials expect to reach their goal by the end of this year.
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Aluminium reaches a three-week high due to tight supply and a weaker dollar
Aluminium prices rose for the fifth consecutive session on Thursday. They reached their highest price in over three weeks due to tight supply and a weaker dollar. As of 1600 GMT, the benchmark three-month aluminum?on London Metal Exchange was up 0.8% to $3,308.50 per metric tonne. Metal prices had risen to $3,328.50 earlier today. This was the highest since August 12. EwaManthey, commodities analyst at ING, said: "Aluminium's price is being supported by tightening physical markets and the expectation of stronger seasonal demand in China." LME aluminium stocks The Shanghai Futures Exchange inventories of metals in China are at the lowest since 1990. Shanghai Futures Exchange stocks in China, the top metals consumer, are at their lowest level since 1990. Since June 12, the number of tons has fallen by 11 weeks, dropping from 528,885 to 391,498. Analysts predict that the aluminium market will remain deficient this year, despite the hopes of a return in supply from Middle East smelters which account for about 9% global capacity. The LME complex also gained 0.8%, to $14.327.50 per ton. This was due to a weaker dollar and the diminishing expectations of a 'U.S. The Federal Reserve is expected to raise interest rates in this month. Dollar-denominated commodities are more affordable to holders of currencies other than the U.S. dollar when it is weaker. Data showed that U.S. imports of copper reached a record monthly high of 225,000 tons around July. The LME curve for copper remained in reverse, which indicates near-term tightness. However, the premium of cash contracts over three-month forwards was higher. As stocks became available, the price of a ton has dropped to $68 from over $500 on August 17. The average has risen. Backwardation is when the price of prompt delivery is greater than future contracts. Zinc, on the other hand, rose?1.1%, to $3,904.50, after hitting a high of four years near the $4,000 level on Tuesday. Zinc backwardation for three months The price of zinc at the LME was $138 despite 9,975 tonnes of deliveries to LME warehouses Wednesday, which eased some?the shortage. LME zinc stocks that are available, or those on warrant Now stand at 80.225 tons. Exchange data shows that one entity controls more than half of the LME zinc warrants, cash contracts and exchange rates. This gives it a significant degree of control over physical supply. Nickel fell 0.7% and lead rose 0.5%, to $1,903.50 per ton. Tin increased 1.1%, to $54,840, while tin gained 1.1%, to $54,840.
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Libya's NOC reports drone attempt at fuel depot
The National Oil Corporation (NOC), a state-owned company, said in a press release that a remote-controlled 'drone' attack on a fuel depot in Tripoli, Libya, caused?minor damages. As a precaution, the NOC stated that teams of technical experts had started removing fuel from tanks. No one has claimed responsibility for the attack and the authorities have not revealed who they believe was behind it. The attack caused minor damage to tanks and pipelines no. Ahmed Al-Masallati is the?spokesperson of Brega Petroleum Marketing, who are responsible for Libya's fuel supply. The incident had no impact on supply operations and there were no casualties reported. Since the 2011 uprising, which toppled Muammar Gaddafi after a long period of chaos and turmoil, Libyan oil installations have been repeatedly attacked and?closed for various technical and political reasons. In August, several explosive-laden drone strikes targeted fuel tanks in the western part of 'Tripoli. One tank was completely destroyed. The NOC stated that attempts to target oil facilities represent "a direct threat to the supply system".
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Colombia repeals 10 Resolutions that restrict mining in certain areas
Mining Minister Maria Nohemi Arboleda stated that the Colombian government repealed 10 resolutions on Thursday which restricted the exploration and exploitation of natural resources in certain parts of the country. The previous leftist government had established the resolutions. Abelardo De La Espriella, the new right-wing president of Ecuador, has "promised" to reverse policies that limit oil and mining in an effort to boost the country's economy. Abelardo De La Espriella, the new right-wing president, has 'promised to roll back policies limiting oil and mining?in a bid to boost the economy. "Mining districts were intended to bring order to land use and to support mining regions. They were, however, used to replace mining and were poorly designed. As a result, they discouraged exploration and investment, which dealt a blow to the small-scale mining and efforts to formalize this sector," Arboleda stated during a mining confrence in the city of Cartagena. She added, "We will eliminate a large number of procedures and we'll be flexible because we want to see results." Juan Camilo?Narino President of the Colombian?Mining Association told? In August, Juan Camilo?Narino, president of the Colombian?Mining Association, told?odatăzeug?? The association claims that the South American nation has significant copper, gold, nickel, and coal potential.
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Hungary creates watchdog to supervise EV battery factories, increases fines for pollution
Hungary's Prime Minister Peter Magyar announced on Thursday that the maximum fine for large manufacturers, including battery manufacturers, will be raised to $5 billion forints. This is a change from his predecessors efforts to attract EV battery plants. Former premier?Viktor Orban who was ousted from power by Magyars in April after 16 years of rule, made a big bet on EV batteries. He attracted foreign investment, mostly from South Korean and Chinese companies, and turned Hungary into a major hub for Europe. Magyar stated that a new environmental authority, announced by the government earlier this summer will monitor strictly battery manufacturing, recycling and decommissioning. He said: "We won't compromise the health and security of the Hungarians for the sake of a single investment, or a single investor." Magyar?said that the government would also increase sanctions and fines for environmental infractions to create a deterrent effect. The government will introduce a "three strikes" principle for the most serious environmental violations. He said that if a company violates the environmental regulations a third or more time in five years, it will face a fine of at least a half percent of its annual net revenues. The Prime Minister cited as an example the Samsung SDI battery plant located in God, a northern town. This plant was fined multiple times between 2022 and 2023 for violating emission standards. Magyar?said that a minimum half-percent fine for Samsung's factory would be approximately 5 billion forints. He called it "a significant fine." Before the election, Samsung said that its Hungarian plant, which had temporarily suspended its environmental license, strictly adhered to environmental and safety regulations. In June, the government's?office suspended the production licence of Chinese battery parts manufacturer?Semcorp after authorities discovered large-scale aluminum pollution in water samples collected from monitoring wells surrounding the plant. Semcorp confirmed that it was conducting an investigation.
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IEA chief: Nigerian energy investment could double in five years
Fatih Birol, the chief of the International Energy Agency (IEA), said that Nigeria would be able to double its investment in the energy sector within five years, after joining. This is because nations are looking for partners they can trust after the supply disruptions caused by the wars with Iran and Ukraine. Birol said that during his visit to Abuja he believed Nigeria's membership as an associate of the Paris-based watchdog on energy would help attract investments, deepening technical cooperation, and giving Africa's biggest oil producer a greater voice in global discussions about energy policy. Birol stated that his goal was to double the amount of energy investment Nigeria receives in five years. Nigeria, Africa’s largest oil producer, needs substantial capital in order to unlock the opportunities that exist across oil, renewable energy and gas, especially solar power. Birol stated that Nigeria's natural resource base and the?shifting global patterns of energy trade could help to attract capital from government and private investors looking for reliable energy partners. "The most precious commodity is not oil or gas, uranium or lithium. "Trust," he said. "Countries look for partners that they can trust." He called Nigeria a "credible energy provider" and noted that exports from the Dangote refinery (which processes 700,000 barrels per day of crude oil) had helped to ease fuel supply pressures in Europe over recent months. EXPANSION PLANS Nigeria wants to double its oil production by 2030 to 3 million barrels a day. It is relying on the energy sector reform and infrastructure upgrades to stop oil theft. Birol stated that Nigeria became an Associate Member of the IEA on July 1 after the member countries of the agency, including the United States Germany Italy and Japan unanimously approved the application. The IEA is expected to sign a work program with Nigeria in Abuja that outlines cooperation?in such areas as natural gas, electrification and clean cooking. Nigeria will collaborate with the IEA on improving energy data collection systems and reporting, an area that investors and market players have long cited for its lack, especially in terms of oil production, export, and consumption statistics. Energy and Security Risks Birol stated that geopolitical tensions, and disruptions in major energy supply routes are reshaping the global trade flows and posing risks to consumers. He said that countries have reassessed their energy supply chains and partnerships following the market disruptions brought about by Russia's invasion of Ukraine on a large scale and instabilities along key shipping routes. Birol stated that if the Strait of Hormuz does not open soon, there may be problems with crude oil and products like diesel and jet fuel. He said that the next few weeks and months will be crucial for maintaining a balanced global oil supply-demand.
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Oil prices rise on escalation in Middle East
The price of oil rose Thursday following a?U.S. The strikes against Iran and the renewed threats by?Israeli?against Tehran have rekindled concerns over disruptions in Middle East supply. Brent crude futures were up 59c, or 0.62% at $96.22 a bar by 1327 GMT, while U.S. West Texas Intermediate futures rose 78c, or 0.86% to $91.79. Both contracts were on track to reach their fourth consecutive day of gains. They also hit six-week highs in the earlier session. Iran's health minister reported that 18 people died and 108 were injured in the U.S. airstrikes across Iran on Tuesday night. According to the 'Iranian Red Crescent, four people died and 67 were injured at a wedding near the coast of?Strait of Hormuz. The semi-official Tasnim News Agency reported that three Iranian Army pilots had been killed by the U.S. strike. These attacks marked the largest?fire exchange between the U.S.A. and Iran in the last seven months. The seven-month war began at the end?February with U.S. and Israeli?strikes. Israel Katz, the Israeli Minister of Defence, has warned that Israel will "cripple", Iran's civilian and military infrastructure, including its energy facilities, should Tehran attack it. Ole Hansen, an analyst at Saxo Bank, said Katz's remarks had helped push up oil prices. Fewer vessels are crossing the Strait Preliminary shipping data on Thursday showed that six commodity vessels crossed the Strait of Hormuz in the morning of Wednesday. This is down from the 11 vessel transit the day before and below the 10-day-average of 13 vessels. Oil inventories are still falling globally, which is translating into higher oil prices. "Some support may have also come from the ongoing tensions in Middle East," said UBS Energy Analyst?Giovanni Staunovo. Iran has added ships to its list of non-compliant vessels that are subject to confiscation, fines or detention should they attempt to cross the Strait. Iran has permitted Iraqi vessels to pass through Hormuz. Two Iraqi energy officials said on Wednesday that Iraq's oil exports increased to 2.34 million barrels a day in August, up from 1.35 million in July. September exports are also expected to rise, as buyers were encouraged by the heavy discounts, and approvals granted by Iran for Iraqi tankers. The impact of higher oil prices on inflation has led to an increase in bets this month.
UK loans $541 Million to Brazil's Tropical Forest Fund
The British government will lend PS400 million ($541.04million) to the Tropical Forests Forever Facility. This initiative, led by Brazil, is designed to fund?the conservation of endangered forest.
Brazil launched the initiative at the COP30 U.N. Climate Summit last?year? with the ambition of raising $10 billion in public money within its first year. It has already raised almost three quarters of this target.
The TFFF is an innovative model that manages the fund 'like an endowment' and pays eligible countries an annual stipend based on their tropical forest remaining standing.
Britain supported the concept at the summit, but didn't make an initial taxpayer-funded contribution. The then-Prime minister Keir starmer's government was under pressure to balance the books "at home".
Andy Burnham has said that some of Britain's climate contributions abroad should take the form of loans and not grants.
The UK Department for Energy Security and Net Zero in Britain said that the UK's investment as a loan and not a grant ensures value for British taxpayers.
Burnham stated in July that the money saved from converting climate project contributions into?loans' would be used to fund a bus fare cap.
Mauricio?Voivodic, executive -director of?WWF Brazil, described the UK's "very significant" commitment, adding that "it reinforces a needed change in the way the world recognizes?the conservation?of tropical forests and finances it."
Two sources said that they expect to reach the $10 billion target by year's end. If this happens, further funding from the United States could be made available.
The TFFF aims at raising $125 billion in total, including $25 billion from public institutions and governments.
(source: Reuters)