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Russia unveils monument for Ukraine war dead near St Petersburg
On Friday, hundreds of people, including Russian soldiers' relatives, gathered in front of St Petersburg to unveil a memorial for those killed in Ukraine. It was the first time such a memorial had been erected so close to one of Russia’s two largest cities. "A monument is one way to immortalize history." "Now we have a brand new history," Anna Krasnova said, after seeing the statue of two soldiers with guns unveiled at Kudrovo in a commuter city of 60,000. She said that her husband is fighting there and that her brother's name is missing in action. The memorial is unique in its proximity to Moscow and St Petersburg. Similar monuments were erected throughout Russia in the provinces. At the dedication ceremony, Alexander Drozdenko said, "The memory of our people is the most valuable asset we have." "Our cause will prevail, our enemy will be defeated, and we will win." The inscription on the monument, which is located above the figures, does not mention a date nor the location of the battles it honors. The inscription reads: "To the Heroes of the SMO", which is an acronym for Special Military Operation (the official term used by the Kremlin for this conflict). Kirill Drantsov, another spectator, stated that the monument would remind young people how to serve their country. We will not have to explain to anyone why and how we love and defend the Motherland. (Reporting in Kudrovo, writing by Lucy Papachristou).
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Gold nears all-time high as markets eye Fed rate reduction
Gold prices increased on Friday and remained close to the record highs set earlier in the week. Signs of a weakening U.S. labour market reinforced expectations that the Federal Reserve would deliver its first rate reduction of the year, next week. As of 9:19 am EDT (1319 GMT), spot gold was up by 0.4% to $3,649.54 an ounce. This is still close to the all-time high set on Tuesday of $3,673.95. This week, the metal is up 1.8% and on track for a fourth straight weekly gain. U.S. Gold Futures for December Delivery were up 0.4% to $3,688.10. Daniel Pavilonis is a senior market analyst at RJO Futures. He said that metals are rising because of the longer-term risk of inflation. The recent data that showed a surge in jobless claims last week, while consumer prices rose at their fastest rate in seven months, in August, have shifted expectations in the direction of higher rates. Investors are prioritizing signs that the labor market is weaker than inflation when determining rate expectations. Fed fund futures fully reflect a 25 basis-point cut during the Fed's meeting on September 17, though expectations of a 50-bps increase have eased. UBS analyst Giovanni Staunovo said: "Given the tailwinds, and after the recent increase in ETF flows (exchange-traded funds), we expect gold to reach $3,900/oz mid next year." Investors value the yellow metal as a hedge to inflation and uncertainty. It has increased 39% this year. China's central banks has asked the public for feedback on its plans to streamline gold import and export regulations by streamlining licensing. Other metals rose as well. Spot silver rose by 1.3%, to $42.08 an ounce. This is a record high for the 14 years. Platinum was up 1.4%, to $1,396.71, and palladium jumped 2.2%, to $1,214.70. All three metals are set to gain weekly. (Reporting and editing by Krishna Chandra Eluri, Sherin Elizabeth Varighese and Sarah Qureshi in Bengaluru).
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EU brings forward review of 2035 Vehicle Emissions Targets
EU sources confirmed on Friday that the European Commission would review its CO2 emissions targets for 2035 by the end of the year, instead of 2026. This was after the EU's chief executive met with auto executives to discuss their future. The EU set a goal of a reduction of 100% in CO2 emissions by new cars and vans, but auto industry groups said that this was no longer possible. This target is interpreted as the end of internal combustion engines in new vehicles. A member of the team led by Executive Vice President Stephane Sejourne said that the review would focus on vans. Electric vans only account for 8.5% of new vans in the EU. This is about half of the market share for electric vehicles. Details of the new proposal for 2035 are not yet clear. However, it could include biofuels that would be CO2 neutral and could power internal combustion engines as well as plug-in hybrids and range extenders. The Commission will present a proposal for a new category of small electric vehicles that could benefit from a lower tax treatment, and help to meet CO2 reduction targets. (Reporting and Editing by Benoit VanOverstraeten, Joe Bavier, and Charlotte Van Campenhout)
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Copper prices reach five-month high on hope for US rate cuts
Investors' expectations of U.S. rate cuts and concerns over possible shortages have fueled copper prices to their highest levels in five months. The price of three-month copper at the London Metal Exchange rose 0.2% in open-outcry official trading to $10,068 a metric ton. This is its highest level since march 26. The price of copper has increased by around 15% in the past year, but it has been unable to break through the $10,000 psychological barrier. Base metals rallied along with other markets after U.S. jobless claims surged on Thursday, confirming the belief that Federal Reserve would cut interest rates. "I thought the consensus was for a quarter point cut, but I now think that it could be more." "I think the market has been lifted by this, and the bullish mood helped copper," Robert Montefusco of broker Sucden Financial said. CTAs bought dips below $10,000 and pushed it higher. The Chinese came in overnight and that got us started. Commodity Trade Advisor investment funds (CTAs) are driven primarily by computer programs that use technical signals. The Shanghai Futures Exchange's most-traded copper contract gained 1.22%, to 81.060 yuan (11,384.67) per ton. Supply concerns also supported prices. The massive Grasberg Copper Mine in Indonesia, one of the largest copper mines in the world, remained closed on Friday while the search for trapped workers continued. In July, copper production in Peru, which is the third largest copper producer in the world, dropped 2% on an annual basis to 228,007 tons. Nickel was the biggest gainer on LME. It climbed 1.3% to $15,340 per ton in official activity after a taskforce in Indonesia, the world's top nickel producer, seized large plots of land from miners as part of a crackdown against illegal exploitation. Lead was up by 0.1% to $1,998 while tin increased 0.2% to $34,750. Click here to see the latest news in metals.
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Stocks rise on Fed rate-cut bets; gold is on a tear
The global stock market was on course for a weekly increase on Friday, as the expectation of rapid U.S. interest rate cuts led to a reduction in borrowing costs worldwide. This would be a relief for stressed bond markets and drag on dollar. After Wall Street indexes reached new peaks over night, European shares fell 0.1%. Nasdaq futures and S&P500 futures were both flat or down by 0.1%. The MSCI All Country World Index is on track to achieve a weekly gain of 1.8%. Gold was also on course for its fourth consecutive weekly gain and traded at near-record levels as investor concerns over global economic uncertainty persist. Stock markets in Asia made significant gains earlier. Chinese stocks reached a three-and-a half year high due to expectations of AI related earnings growth. While the U.S. Consumer Price Report showed an increase, the markets were still focused on the weak job numbers from the previous week. Amelie Derambure is a senior portfolio manager of Amundi. She said, "Even though we may have weaker job numbers, the markets really focus on the Fed's impact, which will give growth a boost in the future." Veronica Clark, an economic at Citi, stated that the bank continues to expect 125 basis point Fed rate reductions over the next five meeting. The futures market shows a 95% probability of a quarter point cut next week to 4.00%-4.25 % and a 5% likelihood of a half point cut. The yield on the benchmark 10-year Treasury note rose by 2.5 basis points to 4,035%. It had fallen below 4% on Thursday for the first since April. ECB - "IN A GOOD PLACE" The dollar index, which measures the greenback versus six other currencies, was essentially unchanged at 97.635. The dollar rose 0.3% against the yen, to 147.68. This was after Japanese and U.S. Finance Ministers released a joint statement on Friday reaffirming their commitment not to target currency levels. The euro was largely flat at $1.17305 after receiving a modest boost on Thursday, when the European Central Bank left rates unchanged and indicated that it was "in a good place" with policy. Greg Fuzesi is an economist with JPMorgan. He said, "This indicates the Governing council is not inclined towards easing in the absence a significant growth shock." "We have therefore pushed back our call for the final rate cut to December from October." After the meeting, ECB source told us that the December meeting was the best time to discuss whether another cut is needed to cushion the economy. The markets indicate that there is only a 1 in 6 chance of an easing in December. The British economy registered zero growth for the month of July. This was in line with expectations, but a sharp decline in factory production weighed on sterling, which fell 0.1% to $1.35586. Gold prices rose 0.5% in commodity markets to $3651, just below the record high of $3673.95 that was set earlier this week. The oil prices rose despite predictions by the International Energy Agency that OPEC will continue to pump out more oil next year, resulting in an even greater record surplus. Brent crude oil was up 1.4% to $67.28 per barrel. U.S. crude rose 1.2% to $63.09 a barrel.
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China wants feedback on its plans to streamline gold import regulations
China's central bank announced on Friday that it is looking for public feedback on its proposal to streamline the licensing system to make it easier to export and import gold and gold-based products. The world's top gold consumer intends to expand the number of customs authorities that are eligible to manage the "Non-one-batch-one-licence" for gold products to 15 from 10 previously, People's Bank of China said in a statement. "Non-one-batch-one-licence" means that the same licence can be used for more than one customs clearance as long as this does not exceed the prescribed quantity, the central bank said. The document stated that the validity period for the permit was extended. There is also no limit to the number of licenses which can be used during the effective period. The "Non-one-batch-one-licence" will be valid for nine months, according to the document. These licences usually expire after six months. The gold price has staged an unprecedented rally this week, driven by geopolitical uncertainties, expectations that the U.S. will cut interest rates this month and central bank purchases. Gold prices have risen by 33% this year. The new proposal will simplify certain procedures for gold imports to make them more convenient, but that does not mean imports will increase. An industry expert spoke on condition of anonymity because the subject is sensitive. The central bank is the one who has the final word on import volumes. Reporting by Beijing Newsroom. (Editing by Jane Merriman).
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Stocks rise on Fed rate-cut bets; gold is on a tear
The global stock market was on course for a weekly increase on Friday, as the expectation of rapid U.S. interest rate cuts led to a reduction in borrowing costs worldwide. This would be a relief for stressed bond markets, and drag on dollar. European shares fell 0.2% at the opening of trading, while Nasdaq futures and S&P500 futures dropped 0.1-0.2% after hitting new highs overnight. The MSCI All Country World Index remained on course for a weekly gain of 1.7%. Gold was also on course for its fourth consecutive weekly gain and traded at near-record levels as investor concerns over global economic uncertainty persist. Stock markets in Asia have made significant gains. Chinese stocks reached a three-and-a half year high due to expectations of AI related earnings growth. While the U.S. Consumer Price Report showed a rise in prices, the markets were still focused on the weak job numbers from the previous week. Amelie Derambure is a senior portfolio manager of Amundi. She said, "Even though we may have weaker job numbers, the markets really focus on the Fed's impact, which will give growth a boost in the future." Veronica Clark, a Citi economist, said that the bank continues to expect 125 basis point Fed rate cuts in the next five meetings. The futures market shows a 93% probability of a quarter point cut to 4.00%-4.25 next week and a 77% likelihood of a half point cut. The yield on the benchmark 10-year Treasury note rose by 3 basis points to 4,043%. It had fallen below 4% on Thursday for the first since April. ECB - "IN A GOOD PLACE" The dollar index, which measures the greenback versus six other currencies, edged up 0.2% to 97.757. The dollar rose 0.5% against the yen, to 147.89. This was after Japanese and U.S. Finance Ministers released a joint statement on Friday reaffirming their commitment not to target currency levels. The euro fell 0.1%, to $1.171725. It had received a modest boost on Thursday after the European Central Bank left rates unchanged and indicated that it was "in a good place" with its policy. Greg Fuzesi is an economist with JPMorgan. He said, "This indicates the Governing council is not inclined towards easing in the absence a significant growth shock." "We have therefore pushed back our call for the final rate cut to December from October." ECB sources said that the December meeting was the most realistic date to discuss whether another cut is needed to cushion the economy. The markets indicate that there is only a 1 in 6 chance of an easing in December. Britain's economy records Zero monthly growth In July, the data was in line with expectations, but showed a sharp decline in factory production, which weighed on sterling, which fell 0.3% to $1.3536. Gold prices rose 0.3% on the commodity markets to $3,644 per ounce. This is just a little bit below the previous record high of 3,673.95 set early in the week. The International Energy Agency forecast a record oil surplus for next year, as OPEC pumps more product. Brent crude was essentially flat at $66.38 per barrel. U.S. crude fell 0.1% to a price of $62.31 a barrel.
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Norway sovereign wealth fund excludes Eramet on ethical grounds
A spokesperson from Norges Bank Investment Management, the fund's operator said that Eramet, a French mining company, was excluded from its portfolio due to ethical reasons. According to data from the fund, as of 30 June, it held a stake in Eramet valued at $6.8 millions. Eramet didn't immediately respond to a comment request. The Council on Ethics of the fund, which is its ethics watchdog, recommended the divestment due to Eramet’s participation in Indonesia’s PT Weda Bay Nickel, where Eramet is the operator of mine. The Council on Ethics recommended that Eramet SA should be excluded. "There is an unacceptable risk the company may contribute to or be responsible for severe environmental damage, and serious violations of human rights by uncontacted indigenous people," it said in a press release. Separately, Indonesian authorities said that on Friday a special task force had seized hundreds of acres of land from the miner PT Weda Bay Nickel due to a lack of relevant forestry licenses. Indonesia has been cracking down against illegal mining in the country. Last week, President Prabowo said that over 1,000 such operations had already been identified. (Reporting and editing by Louise Rasmussen. Additional reporting by Guz Trmpiz, in Paris.
Stocks extend gains after sell-off amid favorable data, Fed's rate signals
Worldwide shares extended gains on Friday, recuperating further from their current huge sell-off and increased by favorable economic data and signals from Fed policymakers that they might cut rates as early as September.
A trio of Federal Reserve policymakers showed on Thursday that they were more confident that inflation is cooling enough to cut rates, and this - in addition to a bigger-than-expected fall in U.S. unemployed claims data - helped to underpin the healing.
The MSCI All Country stock index, was up 0.40% to 784.92 points, recuperating much of the ground lost throughout the week.
On Wall Street, all 3 indexes pared early session losses and were trading greater led by gains in innovation, consumer discretionary, health care and monetary stocks.
The Dow Jones Industrial Average increased 0.11% to 39,490.53, the S&P 500 got 0.33% to 5,336.68 and the Nasdaq Composite acquired 0.29% to 16,709.13.
In Europe, the STOXX index of 600 companies was up 0.55%, with the loss for the week all but eliminated. In an indication of calmer nerves, the VIX index, likewise called Wall Street's. ' fear gauge', tumbled nearly 2%, a far cry from its record. one-day spike on Monday.
Divergent central bank rates of interest relocations, a repricing of. recession probability in the United States, thinner liquidity in. August accentuating volatility, and Middle East tensions had all. combined a week ago to activate the sharp sell-off in stocks. after their months-long winning streak.
Some analysts prompted caution in spite of this week's strong. recovery.
We are still in the month of August, so we can still have. some volatility, stated Marie de Leyssac, portfolio supervisor at. Edmond de Rothschild Possession Management.
Investors will continue to study work information, keep an. eye on the Bank of Japan, and particularly on the annual meeting. of worldwide central lenders hosted by the Kansas City Fed in. Jackson Hole later on this month, she stated.
This year I think it is a truly essential conference since. we will have more insight into what (Federal Reserve Chair). Jerome Powell sees for the future, and perhaps more insight on the. course to lower rates, de Leyssac said.
Before then, financiers will scrutinise next week's U.S. customer prices and retail sales figures for fresh proof on. possibilities of the economy getting away a hard landing.
NIKKEI RECOVERS
Japan's Nikkei stocks standard closed 0.6% greater,. eliminating most of the losses because a 12.4% crash on Monday.
The Nikkei has handled to claw back most of those losses,. which were triggered by fears of economic downturn and the relaxing of. investments moneyed by a soft yen, completing the week with a. relatively tame 2.5% decline.
The yen likewise diverted from unfavorable to favorable. through Friday's session, last trading at 147.060 per dollar.
MSCI's broadest index of Asia-Pacific shares outside Japan. climbed up 1.66%, more than reversing the drop from. Thursday. For the week, it has actually reversed earlier losses to be. largely flat.
The possibility of better-than-feared U.S. development and a weaker. yen constrain the basic and technical dangers that motivated. the extreme volatility experienced at the start of the week,. said Kyle Rodda, a senior financial market expert at. Capital.com.
Oil costs were headed for weekly gains of around 3%. as fears of a broadening Middle East dispute persisted, with. Brent unrefined futures up 0.35%, at $79.44 a barrel while. U.S. West Texas Intermediate unrefined futures included 0.45% to. $ 76.53.
The U.S. dollar index, which measures the greenback. against a basket of currencies consisting of the yen and the euro,. fell as markets gave up bets on an emergency rate cut from the. Fed. It fell 0.2% at 103.07, with the euro up 0.05% at. $ 1.0923.
Bond yields have climbed today with safe-havens in less. demand, however started reducing as self-confidence returned to markets. The. yield on benchmark U.S. 10-year notes fell 5.7 basis. indicate 3.94%.
Gold costs were a touch firmer, with spot gold. including 0.09% to $2,428.96 an ounce. U.S. gold futures. fell 0.09% to $2,420.10 an ounce.
(source: Reuters)