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Oil prices drop as Asia shares rise on hopes of US-China trade
Asian shares rose on Friday, as Wall Street earnings boosted investor confidence and signs of a thaw between the United States and China. Oil prices also eased after new U.S. sanctions against Russian suppliers. Intel's results, released after New York closed, exceeded expectations. This is the latest in a string of positive earnings reports from the United States. Nikkei shares in Japan soared before the new Japanese prime minister's speech, where he is expected to discuss stimulus. Crude futures have trimmed their weekly gains spurred by the new U.S. restrictions on Russia's largest oil companies. The U.S. shutdown has largely obscured most economic data. Friday's consumer prices figures will provide important clues about the Federal Reserve's next-week's policy meeting. The mood was boosted after the White House confirmed that U.S. president Donald Trump would meet Chinese President Xi Jinping during a tour of Asia next week as a deadline for tariffs loomed. The White House's statement was interpreted by senior market analyst Kyle Rodda as "an indication that the trade talks between high-level delegates to be held in Malaysia in the next few days will likely yield positive results." It's unlikely that either side would deliberately set up their leader for a failure. MSCI's broadest Asia-Pacific share index outside Japan rose 0.5% at the opening of trading. Japan's Nikkei stock index rose 1.2%. The U.S. Dollar Index, which measures greenbacks against a basket currencies, increased by 0.1% to 99. The euro fell 0.1% to $1.161, while the yen dropped 0.2% to 152.85 against the dollar. US SET TO PUBLISH CPI DATA AMID GOVERNMENT SHUTDOWN Trump will leave for Malaysia on Friday evening. He will also travel to Japan and South Korea where he is scheduled to meet Xi the following Thursday. The trade tensions between Washington and Beijing have been increasing, and a summit between the two leaders will come before an Nov. 1 deadline when the U.S. is expected to impose a 100% additional tariff on Chinese imports. The U.S. Calendar expects the core consumer price index to remain at 3.1% on Friday. This is a key input into Fed policy. The U.S. Bureau of Labor Statistics announced last week that it would release the report, despite the 23rd-day government shutdown. This was to help the Social Security Administration adjust its annual cost of living. Data released on Friday showed that core consumer prices in Japan rose 2.9% over the past year, exceeding the central bank's target of 2% and maintaining market expectations for a rate hike soon. Sanae Takaichi, the new Japanese Prime Minister, will give a speech that is highly anticipated in the afternoon. Her government is reportedly considering a large spending package. OIL PRICES SOAR AFTER SANCTIONS Against Russian Suppliers Intel's shares soared in after-hours trade after the company exceeded expectations for its September-quarter profits. Early European trades saw the Euro Stoxx 50 futures up 0.16% to 5,689; German DAX futures up 0.14% to 24,345, and FTSE futures up 0.04% to 9,623.5. The S&P 500 E-minis futures rose by 0.12% to 6,783. Bitcoin rose 0.8%, to $110,512.30. Ether rose 1.2%, to $3,878.01. Spot gold rose 0.3% to $4,138.52 an ounce but is still on course for its worst weekly performance since May. The oil prices soared after Washington announced new sanctions late Wednesday on major Russian suppliers Rosneft, and Lukoil. This increased pressure on the Kremlin for it to end its war in Ukraine. U.S. crude fell 0.7% to $61.38 per barrel while Brent dropped to $65.55 a barrel, down by 0.7% for the day.
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Iron ore prices fall as China's demand falls
The price of iron ore futures fell on Friday after a three-session streak of gains, as the demand for steel in China, the world's largest consumer, slowed. The most traded January iron ore contract at China's Dalian Commodity Exchange has fallen 0.26%, to 773.5 Yuan ($108.59), a metric tonne, after a 0.3% rise so far this week. The benchmark iron ore for November on the Singapore Exchange is 0.57% lower, at $104,05 per ton. This represents a 0.1% increase so far this week. Ying Cao is an analyst based in Beijing at SDIC Futures. She said that lower hot metal production, a measure of iron ore consumption, dragged prices down for the main steelmaking ingredient. The average daily hot metal production has declined for four weeks in a row by 0.4% compared to the previous week, and is now at its lowest level since September 5, with 2.4 million tonnes of output per week on October 23. Cao said that he expects hot metal production to continue to decline in the next few weeks, as higher coal prices have forced some mills into reducing output. Analysts at GF Futures reported that coke and other steelmaking components, such as coking coal, continued to gain, with gains of 1.83% and 2.31% respectively. This was boosted by a falling supply due to the halting of mining operations in certain coal production hubs. The price decline was limited by the hope that tensions between traders in the two world's largest economies would ease. Next week, U.S. president Donald Trump will visit Asia and meet Chinese president Xi Jinping. He Lifeng, Vice-Premier of China, will be holding trade talks with U.S. officials in Malaysia between October 24 and 27. The benchmarks for steel on the Shanghai Futures Exchange have been moving sideways. Hot-rolled coils gained 0.31%, while rebar and wire rod fell 0.46%. Stainless steel also rose 0.86%. ($1 = 7.1230 Chinese yuan). (Reporting and editing by Rashmi aich; Amy Lv, Colleen Howe)
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Hamilton mourns his beloved bulldog Roscoe before Mexico's Day of the Dead
Lewis Hamilton spoke out about the loss of his pet bulldog Roscoe, on Thursday. He revealed that the grief brought him closer with fans all over the world, particularly ahead of Mexico’s Day of the Dead. Mexican Grand Prix fans, race organizers and Roscoe have all created tributes to the Autodromo Hermanos Rodriguez for the 2nd of November celebration. Hamilton, a seven-time world champion, said: "I felt that I connected with people much more during this type of grief period." "Fans sent me drawings and paintings of Roscoe even though my house is very quiet." The Ferrari driver smiled when he was told the Mexican legend about dogs helping souls to cross the river into the afterlife. He said, "Yeah he will ask me to carry him across the river because he has never liked water." Hamilton spoke about the importance of the support shown during these turbulent times. He said, "It's really encouraging for me to see that in a world where it feels so dark and there are such great divisions, especially when you look at those who run these countries, they seem to lack empathy." Hamilton explained that his love of animals had influenced his decision for a plant-based lifestyle. He also revealed how he defied his family's skepticism regarding getting his own pet due to his busy travel schedule. You learn a lot about empathy. You can't get that kind of love anywhere else. "They bring you such joy, they are the happiest beings on earth," he said. Hamilton still keeps Roscoe’s memory alive in his home, despite the loss. He said, "I have his bed and toys all over the house. So he is still a big part of our furniture." Reporting by Angelica Medina, Mexico City. Editing by Peter Rutherford
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The spot crude premium increases as US sanctions against Russian producers increase demand from China and India
Trade sources and analysts reported that spot premiums on crude markets rose on Thursday, as traders and analysts expected the U.S. sanctions against top Russian producers to spur China and India’s demand for supplies coming from the Middle East and Africa, and South America. Washington imposed sanctions on major oil suppliers Lukoil and Rosneft over the Ukraine conflict, causing concern over a tighter supply from Russia. Russia is the largest supplier of crude oil to China and India. Brent oil futures, the global benchmark for crude oil, rose more than 4% Thursday. Sources said that Indian refiners, as well as some Chinese companies who are among the top buyers of oil in the world, will curtail their Russian oil imports, to comply with new sanctions. They'll turn to alternative suppliers. This triggered a surge in spot premiums Thursday for the key Middle Eastern benchmarks after they had fallen earlier this month due to an abundance of supply, as the Organization of the Petroleum Exporting Countries (OPEC) and its allies were increasing production. Data showed that Cash Dubai's premium reached a high of $2.71 a barrel for the third consecutive session. This is more than twice the $1.26 compared to the previous session. On October 2, it hit a low of 22 months. The data also showed that spot premiums for benchmark grades GME Oman, IFAD Murban, and IFAD Murban, both rose to new one-month highs of $3.12 a barrel and $2.86 a barrel, respectively. Two sources who have direct knowledge of this matter confirmed on Thursday that Reliance Industries, a privately-owned company, will cease importing crude oil as part of a long-term agreement to purchase nearly 500,000 barrels of crude oil per day from Rosneft. Sources with direct knowledge said that Indian state refiners, including Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp., are also reviewing their Russian trade documents in order to ensure that no oil will come directly from Rosneft or Lukoil following the U.S. sanctions against the oil companies. Reliance purchased crude oil cargoes in recent days from Brazil and Middle East. These included Qatari al-Shaheen, Land grades and Iraqi Basra Medium. The cargoes could be used as a partial replacement for Russian supplies. Reliance was seen Thursday in the market scouting out supplies, according to a Middle Eastern merchant approached by Reliance. We expect that most of the substitute crudes will come from the Middle East. Richard Jones, an Energy Aspects crude analyst, said that the urgent need for sour-barrels will allow the current Basra surplus to be cleared faster than previously expected. The Brent-Dubai swap has fallen further into negative territory as a result of today's rally, which supports Atlantic basin arbs. Brent's premium to Dubai quotes LSEG data show that the price of a barrel was 1 cent on Thursday. It had been negative since this week's start. Brent-linked grades of oil from the Atlantic Basin are more attractive to buyers in Asia as the price difference narrows. Last week, Britain also sanctioned Rosneft (Russian oil company) and Lukoil (Russian oil company). Reporting by Florence Tan in Singapore and Siyi Luu in New Delhi, with additional reporting by Nidhi verma; editing by Harikrishnan Nair
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Nikkei's Nikkei-listed Fujikura, a century-old Japanese company, rides the AI data centres boom to become a Nikkei standout
Fujikura, a Japanese wire manufacturer that has been in business for over a century, is a notable stock in the Nikkei gauge. This is because investors expect the company to benefit from an increase in investment in artificial-intelligence data centres using its optical fibers. This week, the firm gained another 6% in value after Sanae Taichi was elected Prime Minister following her pledges to invest heavily in AI and key industries. Fujikura shares have risen 160% since the beginning of 2025. This is a far greater increase than the Nikkei, which has only risen 22%. The company's $33 billion market value is now comparable to that of other well-known Japanese companies such as Daikin, which makes air conditioners, and Komatsu, which manufactures construction equipment. The fortunes of "Magnificent 7" U.S. tech companies, such as Nvidia and Amazon, at the forefront in AI development, are increasingly linked to global equity markets. This euphoria in Japan has spread to the major AI suppliers and investors, including Advantest Tokyo Electron, and SoftBank Group. These firms are responsible for the majority of Nikkei gains since early September. Fujikura was founded in Japan during the Meiji Era (1885-1912) of modernisation. Investors have been searching the AI supply chain for the next winners. Kazuaki Shimada is the chief strategist of IwaiCosmo Securities. "Generative AI has become a major theme for the Japanese stock market," he said. Investors are now looking at new targets which could be the next Fujikura. Mitsui Kinzoku is another AI-related company that has soared 192% in 2025. JX Advanced Metals, another supplier, has seen its stock rise fourfold since March's market debut. Fujikura began as a manufacturer of silk and insulated cables, but in 1959 it produced the first optical fiber. These fibres are essential for AI data centres. About 75% of Fujikura's production is sold to foreign customers such as Alphabet, the owner of Google. Fujikura's spokesperson confirmed that the company had increased its fibre production capacity at its existing facility by a third in February and announced in August that it would invest 45 billion yen (US$298.45 Million) in order to build a second factory. ($1 = 150.7800 yen)
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Oil prices drop after surge but remain on course for weekly gains amid supply concerns
U.S. Crude Futures slowed in early trading on Friday. They trimmed part of the previous days' surge, but remained on track to achieve a weekly gain. This was due to supply concerns fueled by new U.S. Sanctions on Russia's largest oil companies for the conflict in Ukraine. Brent crude futures were down 17 cents or 0.3% to $65.82 at 0024 GMT. U.S. West Texas Intermediate Crude Futures rose 17 cents or 0.3% to $61.62. Both benchmarks rose more than 5% Thursday, and are set to gain about 7% a week. This is the largest weekly increase since mid-June. Russian President Vladimir Putin was defiant Thursday, after U.S. president Donald Trump imposed sanctions on Russia's Rosneft & Lukoil to press the Kremlin to end the Ukraine war. Rosneft, Lukoil and their combined output account for over 5% of the global oil production. Trade sources said that the U.S. sanctioned prompted Chinese oil companies to temporarily suspend their purchases of Russian oil. According to sources in the industry, refiners in India, which is the biggest buyer of Russian oil by sea, will drastically cut their crude imports. Satoru Yoshida is a commodity analyst at Rakuten Securities. He said that the buying prompted by concerns about supply due to U.S. Sanctions on Russia, has subsided. He said that a one-sided rise is unlikely because OPEC has spare capacity. He predicted that WTI will trade between $65.95 and $70.00. Kuwait's oil ministry said the Organization of the Petroleum Exporting Countries (OPEC) would be prepared to counter any shortage on the market by rolling out production cuts. The U.S. announced that it is prepared to take additional action. Putin, on the other hand, referred to the sanctions as unfriendly and said they wouldn't have a significant impact on the Russian economy. He also emphasized the importance of Russia to the global marketplace. The European Union also approved the 19th package on sanctions against Moscow, which included a ban on Russian gas liquefied imports. Last week, Britain imposed sanctions on Rosneft & Lukoil. According to U.S. Energy data, Russia will be the second largest crude oil producer on the planet in 2024. Investors also focus on a meeting between Trump's and Xi Jinping's scheduled for next week. The trade tensions between Washington, DC and Beijing are escalating. Both sides have announced retaliatory actions. The confirmation that the two leaders will meet next week seemed to have eased tensions. (Reporting and editing by Stephen Coates; Yuka Obayashi)
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Mount Gibson, Australia, slashes its annual sales forecast after rockfall shuts down the Koolan Island Mine
Mount Gibson Iron retracted its fiscal 2026 guidance on Friday, after determining that it was not viable to resume its mining operations at Koolan Island in Western Australia following a large rockfall earlier in the month. Iron ore miner estimated sales between 3 and 3.2 million wet-metric tons (WMT), at A$80 - A$85 FOB for each WMT shipped. The firm's shares fell by 27.7%, to A$0.34, and are set for the weakest trading session they have experienced since December 2014. Stocks fell to their lowest level since July. The company stated that it has decided not to remediate the affected pit area because of safety risks, the possibility of further instability, and the mine's remaining limited life. Since the rockfall on October 16, mining has been suspended, but no one was injured. The company stated that "resuming mining was not feasible due to the safety risks associated with potential future instability, and the time and investments required to mitigate these risks in light of the limited remaining life of the mine." The processing will continue with existing ore stocks, and 75 employees will be retained on site for rehabilitation work. The transition costs are estimated to be between A$30 and A$40 Million ($19.49 to $25.99 millions). The incident will not affect the company's plan to purchase a 50% stake in Central Tanami Gold Project before March 2026. Some Koolan Island staff and equipment will be relocated there. ($1 = 1.5389 Australian dollars) (Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Alan Barona)
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Sunrise Energy, Australia, signs five-year option on scandium with Lockheed Martin; shares jump
Sunrise Energy Metals, an Australian company, announced on Friday that it had granted Lockheed Martin the option to buy up to 15 tons of scandium oxide over a five-year period from its Syerston Scandium Project. Sunrise shares were up 15.6% at A$5.49 as of 2333 GMT. This is their best trading session since the beginning of October. The agreement stipulates that the Australian diversified mining company will only be able to exercise the option if both parties have signed binding agreements for the offtake of their project. NioCorp, a rare earths mining company, had earlier announced that it was working with Lockheed on a scandium-alluminum alloy to be used in military equipment. The program is funded by the Pentagon. Scandium has been widely used in defence, aerospace, and energy applications. However, the majority of its supply comes from China. The U.S. stopped mining scandium in 1969. Robert Friedland is the co-chairman of Sunrise Energy Metals. He said, "We're pleased to work with Lockheed Martin on such an important initiative. It underscores the importance the U.S. - Australia critical minerals pact signed by Prime Minister Albanese and President Trump at the White House just a few short days ago." Sunrise said in a statement that testing and qualification will be undertaken to speed up the adoption of components containing scandium in Lockheed Martin products. (Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan Barona)
Credit risk is still alive at MORNING BID AMERICAS
What Mike Dolan, the ROI team and I are looking forward to reading, watching and listening to this weekend.
Hello Morning Bid readers! The weakness of U.S. banks stocks is weighing down global equities this morning. Credit risks are on the rise following recent bankruptcies and negative announcements by two regional banks. Gold is on course for its best 17-year week, with an early Friday rise above $4,300. Mike Dolan, editor-at-large at ROI, asks if gold's incredible rise is the bubble that investors should worry about. The dollar index has moved in the opposite direction. Expectations of further Federal Reserve easing will cause the greenback to suffer its worst weekly decline in nearly three months. Jamie McGeever, a columnist for ROI markets, argues that despite what you may think, the dollar bull case is more compelling than it appears. Washington DC and Beijing are once again at odds in global news after a dispute over export controls for rare earth minerals. Clyde Russell, a columnist for ROI Asia Commodities, argues that China is at risk of overplaying their hand by imposing restrictions on minerals and metals vital to global energy transition. Oil prices are expected to drop this week on energy markets as forecasts continue to indicate a glut of supply in the next year. Ron Bousso, ROI Energy's Columnist, points out however that the uncertainty surrounding the location of nearly 1.5 million barrels of crude oil per day is putting this projection in doubt. Oil prices are also rising in response to the unexpected announcement that Russian President Valdimir Pugh and President Donald Trump have agreed to meet again to discuss the conflict in Ukraine. This time, the summit will be held in Budapest. The recent attacks by Russia and Ukraine on each other’s energy infrastructure could mark a new phase in this conflict. Ron Bousso says that the recent strikes by Ukraine and Russia on each other's energy infrastructure should serve as a warning to Europe regarding its own vulnerabilities. Gavin Maguire, ROI Energy Transition's Columnist, highlighted seven "magnificent", clean energy stocks which have seen a surge in value this year despite Trump's rollback on clean energy policies.
Check out what the ROI team recommends you read, watch, listen to to prepare for the week. Please contact me at
This weekend we are reading...
Gold and digital assets are often seen as binary choices: gold is for those looking for something tangible and not fiat money, and Bitcoin is for those who believe digital assets will be the future. The World Gold Council recently published a piece that raises some interesting questions. While the authors clearly act in the best interests of their members the article does raise some important issues.
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(source: Reuters)