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Japan's first fusion energy company achieves key milestone towards commercial reactor
Helical Fusion, a Japanese start-up company, announced on Monday that it had completed a crucial performance test of a superconducting coil at high temperatures. This marks a significant milestone in the commercialisation of nuclear fusion. Nuclear fusion is the process of smashing together atoms at high temperatures to produce heat, similar to the sun. It could, one day, generate enormous amounts clean energy with minimal radioactive waste compared to the fission reactors we use today. Despite 70 years of global research, there has yet to be a commercially viable fusion reactor. Helical Fusion announced that the HTS coil it tested, which is a key component in commercial fusion reactors replicated the magnetic field inside the device. It also achieved a stable flow of current under superconducting condition, marking a first for the world. The company can now proceed to build and manufacture its integrated demonstration device Helix HARUKA. This device is designed to demonstrate the feasibility of continuous and stable fusion reactions. Helical Fusion CEO Takaya Taguchi stated at a press conference that "this means the possibility of achieving the fusion power generation before the rest of world has been demonstrated." The company, as the sole inheritors of the helical fusion technologies developed by the National Institute for Fusion Science(NIFS), is developing the Helical stellarator. It aims to become the first commercially viable fusion plant based on the design in the 2030s. Sanae Takaichi has been appointed as Japan's prime minister. She has shown strong support for nuclear fusion, and this has led to increased expectations in the sector. Taguchi said that while the United States, China, and other countries have spent over one trillion dollars ($6.6 billion) to speed up fusion research, Japan has only spent about 100 billion dollars. Taguchi stated that he hoped the Takaichi Administration would bridge the gap between the U.S.A. and China or even surpass them through increased funding and policies support. According to a group representing the industry, global fusion energy investments have grown by $2.64 billion since July last year. However, companies say that more capital is required to make the industry commercial. Helical Fusion claims that out of the 50 fusion projects in the world, they aim to be the first to achieve all three key requirements of commercial viability: produce stable power, produce more energy than the system consumes and demonstrate the ability to maintain regular component maintenance. Commonwealth Fusion Systems (a spin-off of the Massachusetts Institute of Technology) plans to build what it calls "the world's very first grid-scaled fusion power plant" in Virginia. The power plant is expected to be operational by early 2030s.
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Copper jumps 16 months high on optimism about trade deals
The copper price rose to a 16 month high on Monday as optimism grew over a possible U.S. China trade agreement. This was after the two world's largest economies outlined their framework for negotiation ahead of the leaders' meetings. The Shanghai Futures Exchange's most traded copper contract closed the daytime trading at 88,370 Yuan ($12,406.29) a metric ton. This is a rise of 1.73%. It reached 88,700 Yuan per ton during the session. This was the highest level since May 2024. As of 0725 GMT, the benchmark three-month price for copper at the London Metal Exchange increased by 0.76% to $10,046 per ton. London futures reached a 16-month-high of $11,094 per ton during the session. This was a significant decrease from the previous all-time record high of $11,104.5 per ton. On Sunday, Chinese and American negotiators reached an agreement on a framework of a new trade deal. On Thursday, Donald Trump, the U.S. president and Xi Jinping, the Chinese president will meet in South Korea. U.S. Treasury secretary Scott Bessent stated that the framework would pause steep American duties on Chinese goods. He also said he expected Beijing to delay by a year its rare-earth export controls regime and resume purchases of U.S. soy beans. Li Chenggang, China's top trade negotiator, confirmed to reporters the "preliminary agreement". After the announcement of the framework, most other base metals gained as well. Other base metals in the SHFE rose by 0.61%. Zinc and nickel grew 0.34%. Tin jumped 1.15%. Lead was barely moved. The LME's other metals saw a slight increase in aluminium, with a gain of 0.84%. Zinc was up by 0.41%. Tin was up by 1.01%. Nickel was down 0.10%. Lead was not affected. $1 = 7.1230 Chinese Yuan Renminbi (Reporting and editing by Harikrishnan Nair, Ronojoy Mazumdar and Lewis Jackson)
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The new database of gold bars for listed refineries will be mandatory from 2027
The London Bullion Market Association's chief said that gold refineries will have to submit data to an online platform by 2027 in order to improve transparency. The LBMA oversees London’s over-the counter gold trading hub which is the largest in the world. Gold prices have risen by 55% this past year and reached a record of $4,381 a tonne on October 20. Added to the overall turmoil are concerns about U.S. Tariffs. Ruth Crowell, CEO of the LBMA, told the precious metals conference held in Kyoto, Japan, that "we will have voluntary period reporting from January next, and then moving to mandatory in 2020." In January, the association launched its Gold Bar Integrity Database to collect and process data faster from refiners on its "good deliveries" list. The "good delivery list" allows refineries access to the London Market, but it also requires them to source metal responsibly. Currently, refineries are required to report the country of origin for the metals they source once a calendar year to the LBMA. Crowell, a reporter, said: "We'd like to have a dialogue with refineries about this, but also to ensure that the solution is practical and that we don't create an unnecessary burden for them." The LBMA "good delivery list" includes 66 gold and 83 sliver refiners from around the world. The LBMA’s monthly data, which is publicly available and dates back to 2016, on the amount gold stored in London vaults was a vital source of information to the market in early 2018, when U.S. metal exports to the United States were sparked by tariff fears, causing concerns about remaining liquidity in London. Crowell stated that "we need to build upon this data, and Gold Bar Integrity's infrastructure and ecosystem are just that." "Markets are becoming increasingly complex." When you begin to source from other jurisdictions, we need to engage in dialogue with refineries. "We need to have faith in the gold underpinning this market." (Reporting and editing by Susan Fenton; Polina Devtt, Polina)
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Take Five: Make or Break
The week will be dominated by trade talks between Washington and Beijing, and Canada, as well as central bank decisions from the United States, Canada, and Europe. Meanwhile, Argentina's stock markets are digesting the results of a decisive election for President Javier Milei. Dhara Ranasinghe, Alden B. Bentley, Lewis Krauskopf, and Rodrigo Campos in New York and Kevin Buckland, in Tokyo, give you all the information about what to expect in the world markets this week. 1/ A MIDTERM DRAMA Argentina’s bonds and shares are expected to rise on Monday, after President Javier Milei’s party won a decisive victory in the crucial midterm elections on Sunday. This is a requirement to keep economic reforms in motion and a U.S. backstop has been put in place. The right-wing president Javier Milei is now expected to consolidate his minority position, after his economic reform program that has crushed inflation and his deepening of ties with Washington delivered some the best returns in emerging markets since he assumed office in December 2023. But despite the unprecedented support of U.S. president Donald Trump, which included direct intervention in the FX market, a central bank swap line worth $20 billion and the prospect for another $20 billion loan, the peso has continued to fall to record lows. Since mid-April, when the foreign exchange controls were partially lifted, the peso's value has fallen by about 25%. It is also down close to 30% from the beginning of the year. IT'S AI, STUPID The earnings of megacap tech companies and growth companies are the highlight of a week full of corporate results in the United States that may shed light on how the "AI trade" is doing. Microsoft, Apple Alphabet Amazon Meta Platforms and Amazon are all "Magnificent 7" megacaps that dominate equity indices. They report earnings. This week, one-third of the S&P 500 companies will report earnings, including oil giants Exxon, Chevron, and Visa and Mastercard. Investors will also examine data to determine the cost and impact of a shift in U.S. Trade Policy. According to LSEG data, S&P 500 companies have reported a 9.2% increase in Q3 earnings compared to the previous year. A greater than usual number of companies has exceeded profit expectations so far. 3/COUNTING on a CUT The markets are almost certain that the U.S. Federal Reserve is going to cut interest rates a quarter point when they conclude their meeting on Wednesday. They are also confident about another reduction in December. This year-end cut could be less obvious if the shutdown continues, as data-driven policymakers will have no official economic indicators. Trump will meet Chinese President Xi Jinping Thursday, as part of a visit to Asia. The meeting is scheduled to take place on the sidelines the Asia-Pacific Economic Cooperation CEO Summit. Trump on Monday The U.S. will "come away" with a trade agreement. Recent trade tensions have escalated and there is a dispute over China's export restrictions for rare earths. U.S. curbs The Fed will continue to be concerned about the impact of Trump's threats to impose tariffs on all technology exports. It's not all about the FED. That's correct, the Bank of Canada will also cut rates on Wednesday, despite Trump's announcement to terminate all trade negotiations with Canada. The European Central Bank will meet on Thursday. It appears to be "nothing new to see" as a poll of economics predicts that it will likely leave rates at 2% for the third consecutive meeting and remain on hold through the end of the calendar year. The downside risks of the economy are causing traders to predict a 65% chance that a quarter point cut will be made by mid-2026. However, headwinds are on the horizon. Aside from the trade tensions, France is also experiencing political turmoil and there will be an election on Wednesday in The Netherlands that is dominated by populist currents. ECB head Christine Lagarde could be asked if the bloc is still in a good place. 5/HIKE HOLDED? Bank of Japan will likely hold off on a rate increase next Thursday, opting instead for a hike in December or early January. This is not because of pressure from Japan's new dovish premier. Sanae Takaichi - the new fiscal and monetary dovish premier - is expected to continue tightening monetary policy, according to two-thirds polled. However, she has repeatedly stated that the central banks should align with government policies. Analysts and traders instead point to BOJ governor Kazuo Ueda’s consistently cautious tone. This is especially true on the potential fallout from tariffs, despite his board making a conspicuously aggressive pivot last month. Most analysts are looking at a December increase as soon as possible, based on his desire to have more data. This includes U.S. holiday shopping trends.
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Iron ore nears a two-week high due to optimism about US-China trade deals
Iron ore prices rose on Monday, reaching their highest level in almost two weeks. This was due to optimism about easing trade tensions in the world's largest economies, China and the United States. On Sunday, top Chinese and U.S. economists hammered out the framework for a trade agreement that U.S. president Donald Trump and Chinese president Xi Jinping will decide on this week. Trump claimed that the U.S.A. and China will "come out with" a deal on trade. The January contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 1.94% higher, at 786.5 Yuan ($110.42), its highest level since October 15. By 0702 GMT the benchmark iron ore for November on the Singapore Exchange had risen 1.3% to $105.55 per ton, its highest level since October 15. The production curtailment in the northern China region, which includes Tangshan, a top steelmaking hub, has raised concerns over demand, and thereby limited further price increases. On Sunday night, the city of Tangshan announced that it would launch a Level-2 Emergency Response on Monday due to a forecast for worsening air quality. Local steel mills must reduce production in such an emergency. Beijing's proposal to implement a more strict steel capacity swap plan, which would reduce current capacity and rebalance the supply and demand 14 months after it had paused its old programme, cast a shadow over the demand outlook. Coke and other steelmaking materials, such as coking coal, have risen by 0.96% each and 0.79% respectively. The Shanghai Futures Exchange has benefited from a reduced supply of steel due to production restrictions in northern China. Rebar climbed 1.54%. Hot-rolled coil grew 1.45%. Stainless steel slipped 0.08%. Wire rod fell 0.27%. $1 = 7.1230 Chinese Yuan (Reporting and editing by Amy Lv, Lewis Jackson and Harikrishnan Nair).
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South Korea's benchmark stock index tops 4,000 marks for the first time due to APEC optimism
The benchmark KOSPI index in South Korea rose above 4,000 for the first time. This was boosted by optimism surrounding trade talks between China and the U.S., two of the country's biggest trading partners. The benchmark KOSPI closed Monday at 4,042.83, a record high, up 101.24 or 2.57% points. Chinese and U.S. official on Sunday hashed the framework of a deal that U.S. president Donald Trump and Chinese president Xi Jinping will decide on Thursday on the sidelines an Asia-Pacific Summit in South Korea, boosting the risk appetite. Scott Bessent, the U.S. Treasury Secretary, also stated that a deal on trade with South Korea was "very close", but details are still to be worked out. Unofficially, a South Korean official said that it was unlikely that a deal would be reached when Trump and South Korean President Lee Jae Myung meet on Wednesday. Analyst Lee Kyoung-min at Daishin Securities said that positive issues were raising hopes for a APEC summit. Among the index's heavyweights Samsung Electronics gained 3.24%, while SK Hynix, a peer company, reached record highs with 4.90%. The net foreign buyers of local shares were worth 647.2 billion Won ($455.3 millions). The KOSPI rallied this year on the back of President Lee's "KOSPI-5,000" initiative, and the positive outlook for the semiconductor industry on the global artificial intelligence boom. The KOSPI is up 68% in 2025. It has outperformed major Wall Street indexes, as well as Asian counterparts in Japan, China Hong Kong, and Taiwan. Electric & Electronics sector, which includes chip heavyweights has seen a rise of more than 100 percent this year. Securities firms' value has more than doubled. The dollar was quoted at 1.433.5 won on the settlement platform onshore, which is 0.41% more than its previous closing price of 1,439.4. $1 = 1,421.4800 Won (Reporting and editing by Kim Coghill and Subhranshu Sahu; Sonia Cheema and Kim Coghill)
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Costa, EU's Costa, expressed concern to Li of China about expanding mineral export curbs
Antonio Costa, President of the European Council, said that he had expressed his deep concern to Premier Li Qiang in China about Beijing's increased export controls for critical raw materials. Costa expressed that the European Union expects China to help end Russia's war on Ukraine in a press release following his meeting with Li in Malaysia, at the ASEAN summit. Li stated that China was willing to extend and deepen "optimised" and "balanced" trade cooperation with European Union. This statement came from a Chinese readout of the discussion, which was released by Xinhua, the official news agency. Beijing and Brussels are embroiled in several disputes. trade disputes In recent years, Washington has been trying to avoid trade uncertainty by working together on issues such as European pork and dairy and Chinese electric vehicles. Beijing's export controls on rare earths and the perception that China was inactive regarding Russia's attack on Ukraine has The person who stood in the way was Further consensus building Li said that bilateral relations had both challenges and opportunities. He called on the EU for a non-discriminatory and fair business environment. Li said that both sides should "promote resolution of existing issues in China-EU Economic and Trade Cooperation through dialogue, consultations, mutual understanding, and accommodation", Li. Last week, China’s Commerce Minister spoke with the EU’s trade commissioner Then, there is the Dutch Economy Minister Discussions will include, among others, the standoff over China's chipmaker Nexperia. Dutch authorities Nexperia seized control Last month, Wingtech, the Chinese company that owns the company, expressed concern about its technology being stolen. China, where the majority of Nexperia chips are packaged and exported, has responded by blocking exports, alarming European automakers who rely on these chips. (Reporting and editing by Martin Petty, Thomas Derpinghaus and Beijing Newsroom)
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Gold drops on stronger dollar and US-China trade hopes
Gold prices fell Monday as investors waited for the monetary policy signals from major central bank meetings scheduled later this week. As of 0655 GMT, spot gold was down by 0.8%, at $4,077.11 an ounce. U.S. Gold Futures for December Delivery fell 1.1% to $4.090.90. The U.S. Dollar rose to its highest level in more than a two-week period against the Japanese yen. This made gold more expensive for holders of other currencies. On Sunday, the top Chinese and U.S. economists hammered out the framework for a trade agreement that U.S. president Donald Trump and Chinese president Xi Jinping will decide on this week. This potential trade agreement between the U.S.and China came as a complete surprise and was a positive for the markets in general. The developments are also negative for gold, according to Capital.com analyst Kyle Rodda. The market is now calmer and the sentiment has cooled. Gold is gaining support because of the prospects for loose fiscal and monetary policies in the future. If that is the case, then gold's upward trend should continue." Federal Reserve officials are widely expected to lower interest rates at their meeting on Wednesday by a quarter of a percentage point. This view is supported by Friday's inflation report, which was softer than expected. The markets will be looking for any comments from Fed chair Jerome Powell that are forward-looking. In a low-interest rate environment, gold that does not yield tends to be more profitable. SPDR Gold Trust is the largest gold-backed ETF in the world. Its holdings dropped 0.52% on Friday to 1,046.93 tons from 1,052.37 tonnes on Thursday. Other metals include spot silver, which fell 0.6% per ounce to $48.31, platinum, which rose 0.7% to 1,616.30, and palladium, up 0.5% at $1,435.75.
Asian stocks reach record high on optimism about trade deals
Asian stocks rose on Monday, while gold and bonds declined. Signs of easing tensions in trade between China and the U.S. boosted risk appetite. This was a positive start to a busy week which will include central bank meetings and earnings from megacap companies.
On Sunday, top Chinese and U.S. economists hammered out the framework for a trade agreement that U.S. president Donald Trump and his Chinese equivalent Xi Jinping will decide on this week at their eagerly awaited meeting in South Korea.
The trade agreement would stop the steeper American tariffs, and Chinese export controls on rare earths. This would help calm investor nerves frayed by escalating tensions in trade between the two largest economies.
Stocks soared, with South Korea’s KOSPI, Taiwan stocks, and Japan’s Nikkei each adding more than 2 percent and breaking landmarks. MSCI's broadest Asia-Pacific share index rose 1.3%, reaching a new record high.
Investors will be looking for confirmation that the current trade truce is still in place and that China’s reform and stimulus signals are translating into tangible growth momentum, said Charu Chanana. Chief investment strategist at Saxo.
Nasdaq Futures rose 1%. European futures rose 0.5%. The Nikkei broke 50,000 for the very first time, while the Kospi climbed above 4,000.
George Boubouras said that the market was satisfied with the recent momentum between the U.S. and China. Over the past few weeks, the market has watched global tariff negotiations with the understanding that some of the commentary could be theatre and noise.
The Australian dollar (often seen as a proxy for China and a risky currency) rose 0.42%, to $0.6541. This is near its two-week high. The Hang Seng in Hong Kong rose 0.78%, while blue-chip Chinese stocks gained 0.84%.
Safe-haven Gold fell 1%, while U.S. Treasuries fell. The benchmark 10-year bond rate increased 3.8 basis points. Commodities such as soybeans, corn, and wheat rose due to trade deal prospects.
CENTRAL BANK RESULTS ARE AWAIT
This week, investors will also focus on the central bank meetings taking place in Japan, Canada and Europe.
Federal Reserve rates are expected to be cut by 25 basis points, after September data showed that U.S. consumer price increases were slightly lower than expected. However, the impact of the government shutdown on data is still a concern.
The dollar was slightly up at 151.13yen and hovering around a two-week peak. Last time, the euro bought $1.16215. The dollar index is flat at 98.982.
Both the European Central Bank (ECB) and Bank of Japan (BoJ) are expected to keep rates unchanged this week.
The BOJ will likely debate whether the conditions are right to resume rate increases as concerns about a recession caused by tariffs ease. However, political complications could keep them on hold.
Focus on Megacap Earnings
This week, the U.S. earnings reporting season will be at its busiest. Megacaps like Microsoft, Apple and Alphabet, as well as Amazon and Meta Platforms, are all expected to release results.
The "Magnificent 7", a grouping of companies with large market capitalisations and whose shares dominate equity indices, are expected to continue posting stronger results this quarter, even though the margin of profit between them and the rest of index has narrowed.
Stock market performance has been driven by the enthusiasm of a number of megacap companies in the artificial-intelligence industry.
Chanana, from Saxo, said that the U.S. earnings and guidance provided by big tech companies will be crucial in gauging whether corporate profits are resilient enough to survive a slowing economic environment.
The coming week will determine whether the optimism has lasted.
(source: Reuters)