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Amazon stocks rise, dollar gains after Fed remarks
The dollar rose after some Federal Reserve officials made hawkish remarks. Global stocks are on track for their third consecutive week of gains, and seventh consecutive month. Earnings from Apple and Amazon megacaps eased concerns about high valuations. Amazon soared by about 11% following the announcement that cloud revenue grew at the fastest rate in almost three years. This allowed the company to forecast quarter sales above expectations. Apple shares climbed to $271.76 after paring gains from an intraday high of $277.32. The company reported quarterly earnings, forecast holiday-quarter iPhone and overall revenue which exceeded Wall Street expectations due to strong demand for iPhone 17 models. The results are the culmination of a week of earnings from several megacap firms, including the Magnificent Seven Group of Stocks, which made it clear that the massive infrastructure around artificial intelligence is not slowing down. Wall Street saw the Dow Jones Industrial Average rise 24.36, or 0.5%, to 47.548.73. The S&P 500 rose 20.36, or 0.3%, to 6,842.70, and the Nasdaq Composite advanced 163.40, or 1.6%, to 23,744.50. The stock market was well below its previous highs as several Fed officials echoed the comments made by Chair Jerome Powell in earlier this week. Powell had denied expectations that the central bank will cut rates during its December meeting after a 25 basis-point cut on Wednesday. The market will have to repricing because it also priced in another two rate cuts, said Ken Polcari of Slatestone Wealth, Jupiter, Florida. The market will have to adjust because you may not get the product. This is only going to put pressure on price. Federal Reserve Bank of Atlanta president Raphael Bostic has said that a rate cut in December is not a certainty, while Federal Reserve Bank of Cleveland president Beth Hammack is open to changing the interest rate targets used by the Fed for implementing monetary policy. According to CME's FedWatch Tool, the markets are pricing in only a 63% probability of a 25 basis-point cut at the December meeting. This is down from 92% just a week earlier. The Nasdaq is on course for its seventh consecutive monthly gain, the longest streak since Jan 2018. The MSCI index of global stocks rose 0.77 points, or 0.08% to 1,005.95. This is the longest streak since August 2021. The pan-European STOXX 600 index closed down by 0.51% following a mixed quarter of earnings and a benign inflation report for the euro zone that confirmed that price pressures are contained. However, it notched up its fourth consecutive month of gains. Earlier comments by Fed officials in support of the dollar were also made. Kansas City Fed President Jeffrey Schmid dissented from cutting interest rates in this week, citing concerns that high inflation would continue and that signs of inflation spreading throughout the economy might raise doubts as to the central bank's commitment towards its 2% target. Dallas Federal Reserve President Lorie Log said that the Fed shouldn't have cut rates this week, and they shouldn't do it again in December. The dollar index (which measures the greenback versus a basket currencies) rose by 0.34%, to 99.82. Meanwhile, the euro fell by 0.36%, to $1.1523. The dollar index is on track for a second consecutive weekly gain, and a month-to-month increase of around 2%. The Japanese yen rose 0.03% against the dollar to 154.08. Satsuki Katayama, the Japanese Finance Minister, said that the government was monitoring the foreign exchange market with an urgent sense of urgency since the yen dropped to around 154 dollars. The data revealed that core inflation in Japan’s capital city accelerated in October, and remained above the central banks 2% target. This kept market expectations of a Bank of Japan rate hike intact. The Bank of Japan kept interest rates unchanged this week despite predictions of a rate hike by many economists. The yield on the benchmark U.S. 10 year notes fell by 0.2 basis points to 4.091%, while the yield on the 2-year note, which is typically in line with the rate expectations of the Fed, dropped by 1.2 basis to 3.602%. U.S. crude climbed 0.53% to 60.89 per barrel. Brent was up to $65.04 a barrel, a 0.06% increase on the day.
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Energy Minister: Canada will accelerate vital mineral projects worth $4.6 Billion, Canada will accelerate critical mineral project
Tim Hodgson, Minister of Energy and Natural Resources, announced on Friday that Canada would accelerate mining projects totaling C$6.4 billion ($4.6billion) as part the Critical Minerals Production Alliance. The announcement was made at the conclusion of a two-day meeting of energy ministers and environmental ministers of the Group of Seven in Toronto. Hodgson stated that Canada, along with its G7 partners, will mobilize both public and private capital in order to accelerate the production of graphite and rare earth elements. Canada has announced that as part of its alliance with Australia's Rio Tinto and Quebec-based Nouveau Monde Graphite, it signed an offtake contract for graphite and scandium. Offtake agreements are deals where a buyer commits to purchasing a producer's future output at a set price. Hodgson stated in an interview earlier this week that Canada aimed to become a leader when it came to securing supply chain for its key allies to reduce dependence on China. Canada is a producer of several important metals, including nickel, cobalt, and copper. Except for Japan, all G7 countries are heavily or solely reliant on China to supply a wide range of materials, from rare earth magnets and battery metals.
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As tensions in Venezuela rise, US Senators are seeking answers about the 'anti-drug strategy'
The Republican and Democratic leaders in the U.S. Senate Armed Services Committee stated on Friday that they have asked the administration of President Donald Trump for information and legal reasoning about operations against drug cartels, but still have not received it. Since early September, U.S. airstrikes on suspected drug-trafficking boats in the Caribbean and Pacific have resulted in the deaths of dozens of people. This has heightened tensions between Washington DC and Caracas. In a rare instance of bipartisanship in relation to the strikes Republican Senator Roger Wicker, and Democrat Jack Reed stated that they did not receive information from the administration regarding its strategy to combat drug cartels. Reed of Rhode Island is the top Democrat in the committee that oversees the U.S. Military. Wicker of Mississippi is its chairman. Trump's administration has insisted that the vessels targeted were carrying drugs without providing any evidence, or explaining publicly the legal basis for their decision to attack them rather than arrest the people on board. Trump has also ordered a major buildup of military forces in the Caribbean. In a letter from September 23, Wicker and Reed stated that they had requested "Execute Orders", relating to anti-drug trafficking activities. In a letter dated October 6, they requested any written opinion on the legal basis of these operations. The legislators said that they did not receive the requested information before Friday. The Pentagon didn't immediately respond to an inquiry for comment. Trump on Friday denied he was considering strikes inside Venezuela, appearing to contradict his own comments from last week amid intensifying expectations that Washington may soon expand drug-trafficking-related operations. (Reporting and editing by Daniel Wallis; Patricia Zengerle)
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Sources: World Bank arbitral body rejects Barrick Expedition request in Mali case
Two people with knowledge of the situation said on Friday that Barrick Mining's request to expedite their international arbitration case against Mali was rejected. Since 2023, the West African government has been involved in difficult negotiations with Barrick over the implementation of new mining codes that increase taxes and give the government a larger share of the gold mines. Barrick initiated arbitration proceedings against the World Bank arbitration court (ICSID) in December 2024. The company wanted ICSID urgently to address several issues, including the continued detention of four staff members, the appointment a provisional administrator for the Loulo Gounkoto Complex after Barrick suspended operations due to the dispute, as well as the expiration in 2026 of the Loulo Mine's license. Two sources confirmed that the request was denied this week. ICSID announced on its website on Wednesday that it issued an order regarding "provisional Measures" without providing any further details. Barrick refused to comment. ICSID, as well as the Malian Mines Ministry, did not respond when asked for comments. Reporting by Portia Crowe and Divyarajagopal, Editing by Alexander Smith
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Gold drops 1% due to uncertainty over rate cuts, but is set for a third monthly increase
Gold prices fell 1% on the Friday due to uncertainty about another interest rate cut by the U.S. Federal Reserve this year. However, gold is still poised to gain for a third consecutive month. At 1:49 pm, spot gold dropped 0.6% to $4.001.74 an ounce. ET (1749 GMT), and was on course for a 3.7% increase this month. U.S. Gold Futures for December Delivery settled 0.5% lower, at $3.996.5 per ounce. Dollar index was near its three-month-high, making bullion priced in greenbacks more expensive for holders of other currencies. Beth Hammack, President of the Federal Reserve Bank of Cleveland, said that she was against the central bank lowering interest rates this coming week. She added that the Fed must maintain some restrictions to reduce inflation. Hammack is crushing gold, as she is the third Fed regional president to publicly oppose rate cuts given high inflation. Hammack is a FOMC member in 2026, and this shows that the market overestimated lower rates. Tai Wong said. CME FedWatch showed that while the Fed reduced interest rates on December 3, hawkish comments from Chairman Jerome Powell have led to markets pricing in a 63% probability of a rate cut for the month. This is down from 90% earlier in this week. When interest rates rise, gold loses its appeal as it is not a yielding asset. This metal is up 53% in the past year and reached a new record high on October 20, reaching $4,381.21. Morgan Stanley stated on Friday that it still sees gold as a positive investment due to interest rate reductions, ETF flows, central bank purchases, and the ongoing uncertainty in the economy. The bank predicts that gold will average $4,300 during the first half 2026. Donald Trump, the U.S. president, said that he would reduce tariffs against China from 57% to 47% in exchange for Beijing crackingdown on illegal fentanyl trafficking. He also promised to resume U.S. purchases of soybeans and keep rare earths exports flowing. Silver fell by 0.4%, to $48.73 an ounce. Platinum fell 1.7%, to $1.583.41, while palladium dropped 0.4%, to $1.440.02. (Reporting and editing by Deepababington, Vijay Kishore, and Alexander Smith in Bengaluru. Reporting by Noel John, Pablo Sinha, and Alexander Smith, Bengaluru)
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Dominance in contract negotiations for 47 gigawatts new data centers is up 17% year-on-year
Dominion Energy is the U.S. utility that powers "data center alley", in Northern Virginia. It said Tuesday that it was at some stage in contracting for data centers to have 47 gigawatts, which is more than Virginia needs. As artificial intelligence and cloud computing have grown, so has the number of data centers that consume a lot of power. This is driving up U.S. electricity demand to new records. Dominion, the largest electric utility in the world that serves data centers, has connected about 450 of them in Virginia's data center crossroads. Data center pipeline has grown by 17% in the last year. Dominion's CEO Robert Blue told investors on a conference call that "we continue to see robust data center demand." He was referring to earlier speculation about the Virginia data centre market being oversaturated. Dominion is investing $50 billion in its capital investment plan for 2025-2029 to expand its power infrastructure. Blue, who was on the call to discuss the company's third-quarter results, said: "We are developing resources across transmission, distribution and generation in order to meet this critical requirement on a timely manner." Dominion exceeded its quarterly profit expectations, thanks to increased demand for power in its Virginian and South Carolina segments. The adjusted operating earnings of Dominion's Virginia division rose by 2.5% in the third quarter to $679 millions, while those from South Carolina rose by over 14% to $109 million. Revenue for the quarter was $4.53 Billion, up from $3.94 Billion a year earlier. The company's interest costs rose by over 30%, to $527 millions in the third quarter. Dominion has narrowed the range for its operating earnings forecasts to $3.33 to $3.48 a share. This is down from the previous range of $3.28 to $3.52 a share. The company expects to achieve results at or above this midpoint if the weather conditions remain normal throughout the remainder of the year. According to LSEG, the utility's adjusted operating earnings for the three-month period ended September 30 were $1.06 per common share. This compares with an average analyst estimate of 95c per share. Sumit Saha reported from Bengaluru, Sahal Muhammed edited the story and David Gregorio provided translations.
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White House: US won't send any officials to COP30 Climate talks
A White House official confirmed that the U.S. would not be sending any high-level officials for the upcoming COP30 Climate Summit in Brazil. This will ease some concerns among world leaders who were worried Washington might send a team of negotiators to sabotage the talks. Brazil will host the high-level leaders summit in Belem, Amazonian City next week. The UN climate talks begin there two weeks later. Earlier this week, the U.S. warned that it would use visa restrictions and sanction to retaliate to nations who voted in favor of a UN shipping agency plan, the International Maritime Organization (IMO), to reduce greenhouse gas emissions by ocean shipping. Those tactics led a large majority of countries to vote at the IMO in favor of delaying by a full year a decision regarding a global price for carbon emissions on international shipping. According to the White House official, President Donald Trump made clear his views on multilateral climate actions in his speech last month at the United Nations General Assembly. He called climate change "the world's greatest con job" and criticised countries for setting up climate policies which "have cost them fortunes." The White House official said in an email that "the President is directly engaging leaders around the globe on energy issues. You can see this from the historic peace and trade deals, all of which have a strong focus on energy partnership." In its trade negotiations, the Trump administration has sought bilateral energy agreements to increase U.S. LNG exports. Chris Wright, the U.S. Energy secretary, said on Friday that there was "room for a great deal of energy trade between China & the United States," given China's demand for natural gas during the tariff negotiations. Trump announced his decision to withdraw from the Paris Climate Agreement, which has been in place for 10 years. This will take effect in January 2026. The State Department is reviewing the U.S. engagement in multilateral agreements. The U.S. pressured other countries involved in a global agreement to reduce plastic pollution earlier this year to not support an agreement which would limit plastic production. The White House official said that "the tide has turned" in terms of prioritizing climate changes, pointing out a memo that was circulated by Bill Gates this week, a billionaire investor and climate philanthropist who stated that it is now time to shift away from meeting global temperature targets and that climate will not "lead to humanity's destruction." (Reporting and editing by David Gregorio; Valerie Volcovici)
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Trump denies he would consider a strike in Venezuela
President Donald Trump on Friday denied he was considering strikes inside Venezuela, appearing to contradict his own comments from last week and amid intensifying expectations that Washington may soon expand drug-trafficking-related operations. In recent months the United States has established a significant military presence in Caribbean, including fighter jets, ships and thousands of soldiers. This presence will grow significantly in the next few weeks, with the arrival the Gerald Ford aircraft carriers strike group. When asked on Friday by reporters aboard Air Force One whether media reports claiming that Trump was considering strikes in Venezuela were true or not, Trump replied: "No." It wasn't immediately clear whether Trump was excluding future strikes in Venezuela or just saying that no final decision has been made. At least 14 boats have already been targeted Trump has said publicly in recent weeks that his administration will conduct strikes against drug-related target inside Venezuela. Trump said to reporters last week that "the land will be next". The U.S. has targeted 14 boats in the Caribbean and the eastern Pacific that Washington claims are involved in illegal drug trafficking, killing at least 61 people. Trump confirmed in the past that he had authorized the CIA conduct covert operations against Venezuela. Officials close to Trump have suggested that a land strike could happen soon, although the timing is not yet known. On Sunday, Senator Lindsey Graham (a senior Republican legislator) said that Trump told him the Administration planned to brief members of Congress on military operations against Venezuela, Colombia and other countries when he returned to the United States from his Asia trip. Trump returned to Washington, D.C. on Thursday. An anonymous U.S. official said that the military has provided several options including attacks against military installations in Venezuela such as runways. Allergy of drug ties Venezuelan opposition groups, watchdogs and Latin American neighbors accuse the Venezuelan military, especially in the west of the country, near the border with Colombia, of being involved in the drug trade. The government of President Nicolas Maduro has always denied criminal connections. Maduro claims that the U.S. wants to remove him from power. Politicians and analysts claim that the two main leaders of Venezuela’s opposition are becoming increasingly divided on the looming U.S. action targeting Venezuela, even though a crackdown continues against opposition figures. Washington doubled the reward in August for information that leads to Maduro’s arrest, to $50 million. It accused him of being linked to drug trafficking groups and criminal organizations. Some Democratic lawmakers are concerned about the ongoing strikes against the alleged drugs boats. They question if they follow the laws of war. Reporting by Nandita BOSE,Steve Holland, and Idrees ALI in Washington Editing Humeyra Pamuk Franklin Paul, Rod Nickel
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What Mike Dolan, the ROI team and I are looking forward to reading, watching and listening to this weekend.
Hello Morning Bid readers! Wall Street was spooked Thursday as Microsoft and Meta saw their shares fall due to concerns over the AI capex spree. The big news this week was that chip giant Nvidia became the first company whose market cap exceeded $5 trillion after only hitting $4 trillion three months earlier. It looks like Halloween will be more of a "treat" rather than a "trick," with U.S. equity prices rising before Friday's bell. We began the week with the news that there would be a likely agreement between U.S. president Donald Trump and his Chinese equivalent Xi Jinping. We saw that happen on Thursday, after a meeting that the U.S. President described as "12 out 10". They reached a deal which included a reduction of U.S. duties on Chinese products and a postponement of China's restrictions on rare earths. Jamie McGeever of ROI Markets warns not to get too excited. The U.S. China story is nothing new. The Federal Reserve Chair Jay Powell was the source of another big story this week. The Fed's Wednesday decision to reduce interest rates by 25 basis point was widely anticipated, but the Chair indicated that a cut in December was not a foregone conclusion. The Fed may have been recognizing that interest rates cuts are not the best way to help an economy with labor shortages. Mike Dolan, editor-at-large at ROI magazine, believes that the Fed's hawkish stance has given the U.S. Dollar a boost. It is expected to gain 2% this month. This will not go over well with Trump's administration. OPEC is meeting this Sunday, and it's expected that they will announce another increase in output. Saudi Arabia, OPEC’s de facto leader appears to be stuck between Donald Trump and a rock, argues ROI's Ron Bousso. The U.S. President's latest oil sanction against Russia forces Riyadh's to weigh competing geopolitical priorities and economic priorities. How effective have sanctions against Russia been? Clyde Russell, Asia Commodities columnist for ROI Asia, addressed this question in a recent article. He argued that the answer depends on how you measure success. Gavin Maguire, ROI Energy Transition columnist this week, discussed China's electric car output and exports after a major policy pivot. In the metals market, copper was again in the spotlight as the London Metal Exchange hit a nominal high of 11,200 dollars per metric tonne on Wednesday.
Check out what the ROI team recommends you read, watch, and listen to as we enter the weekend. Stay informed and prepared for the coming week. Please contact me via
This weekend we are reading...
Here's how a New Zealand-based small insurer is an important link in the dark network responsible for shipping Iranian oil and Russian oil.
Anne Krueger, former IMF and World Bank official, wrote a column this week for Project Syndicate that makes a strong case for - replacing the weakened WTO. She supports the Canadian Prime Minister Mark Carney's push.
The latest report by the shows how China, India, and Indonesia -- three of the largest coal consumers in the world -- could all reach peak power sector emission levels by 2030.
This week the copper prices in London reached a new high. Here's an overview of the current market. Here's everything you always wanted to know but were afraid to ask about copper.
Listening to...
I recommend it in general but particularly the most recent episode where the Russian Bureau Chief and commodities editor discuss how the energy war between Russia and Ukraine has intensified. They talk about its impact on both the Russian economy and the global energy markets.
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(source: Reuters)