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Shanghai copper continues to fall as supply concerns and weakening China demand weigh
Shanghai copper prices fell for the fourth consecutive session on Wednesday. Futures hit a record low of more than a week, despite a downward revision in Codelco’s output target for 2025, which still indicated a higher supply next season. The market was also affected by a weakening Chinese demand, and the strong dollar. As of 0250 GMT, the most active copper contract at the Shanghai Futures Exchange had fallen 1.25%, to 85,350 Yuan ($11,982.31) a metric ton. Shanghai copper fell as low as 84.900 yuan per ton in the first session of this week, marking a two-week high since October 22, when it reached 84.500 yuan per ton. The benchmark copper three-month futures on the London Metal Exchange fell 0.32%, to $10629.5 per ton. Codelco in Chile, the largest copper producer in the world, has cut its output forecast for 2025, but the new target still exceeds 2024. The first nine months of this year saw an increase in output compared to the same period the previous year. Analysts at Sucden Financial stated that the forecast was higher than 2024 despite it being adjusted down. This helped ease concerns about a near-term budget deficit "that has been underpinning prices since September". Copper demand in China remained weak, due to high copper prices. The Yangshan Copper Premium The, which measures China's appetite to import copper, was at $35 per ton on Monday, down from the $58 it had been in late September, and a significant drop from over $100 in May. The U.S. Dollar remained strong and weighed on the copper price, although it did ease slightly on Wednesday. The strong dollar makes commodities that are traded in dollars more expensive to investors who use other currencies. Aluminium fell 0.98% among the SHFE base metals. Zinc dropped 0.55%. Nickel tumbled 0.96%. Tin shed 1.24%. Lead was the only one to gain 0.32%. Wednesday, November 5 DATA/EVENTS (GMT) 0700 Germany Industrial Orders MM Sep 0700 Germany Manufacturing O/P Cur Price SA Sep 0700 German Consumer Goods SA Sep 0850 France HCOB Services, Composite Final PMI Oct 0855 Germany HCOB Services, Composite Final PMI Oct 0900 EU HCOB Services, Composite Final PMI Oct 0930 UK S&P GLOBALPMI: COMPOSITE - OUTPUT Oct 0930 UK Reserve Assets Total October 1400 Wednesday, November 5, DATA/EVENTS, GMT 0700 Germany Industrial orders MM Sep 0700 Germany Manufacturers O/P Cur Price SA Sept 0700 Germany Consumer Goods SA September 0850 France HCOB Services Composite Final PMI October 0855 Germany HCOB Services Composite Final pmI Oct 0900 EU HCOB Services Composite Final pmI Oct 0930 UK S&P GLOBALPMI: COMPOSITE OUTPUT Oct 930 UK Reserve Assets total Oct 1400 US S&P Global Comp
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Dalian iron ore falls further on China's demand concerns
Dalian iron ore prices fell for the fourth consecutive session on Wednesday due to concerns over demand in China, the top consumer. This is because of a persistently low manufacturing sector. By 0258 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange(DCE) had fallen 0.9% to 771 Yuan ($108.24) per metric ton. The benchmark December Iron Ore at the Singapore Exchange fell 0.43% to $103.15 per ton. A private sector survey revealed on Monday that China's factory activities in October expanded at slower pace due to a decline in new orders and production as a result of tariff worries. Official data released last week showed that China's manufacturing activity declined for the seventh consecutive month in October. The factory activity fell to 49.0 from 49.8 in August and remained below 50, which separates growth from contraction, due to a decline in new orders. Galaxy Futures, a Chinese broker, predicted that iron ore prices would remain low due to a weakening of steel demand and an increase in domestic inventories since the third quarter. Analysts at ANZ stated that although Hebei, a large steelmaking province in China has reissued a environmental protection alert, these measures are still focused on sintering activities and have not yet affected blast furnace activity. This limits the impact of iron ore on demand. Yet, in a report by Chinese consultancy Mysteel, "China's leading property developers increased their land acquisitions during the first 10 month of 2025. This indicates a cautious recovery in the real estate industry as some developers increase investments amid continuing financial pressures." Coking coal and coke, which are both steelmaking ingredients, have also lost ground. They fell by 0.82% each and 0.34% respectively. All steel benchmarks at the Shanghai Futures Exchange declined. Rebar fell 1.4%, while hot-rolled coils dropped 1.16%. Wire rod fell by 0.12%, and stainless steel declined 0.4%. ($1 = 7.1230 Chinese yuan) (Reporting by Lucas Liew; Editing by Subhranshu Sahu)
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Oil prices drop amid wider market decline, gains in US crude stocks
The oil prices dropped on Wednesday, amid a global sell-off that reflected concerns over economic growth and fuel demand. A stronger dollar and reports about rising U.S. crude stocks added to the worry. Brent crude futures dropped 36 cents or 0.56% to $64.08 per barrel at 0221 GMT. U.S. West Texas Intermediate Crude was down by 40 cents or 0.66% at $60.16. Both contracts continued to lose money from Tuesday. Oil markets fell as part of an overall slump in equity markets. Asian stock markets added on Wednesday to a drop overnight on Wall Street due to concerns that stock valuations were stretched, especially for companies linked to artificial intelligence. The U.S. Dollar rose against its peers due to the risk-off mood. The stronger dollar makes oil priced in dollars more expensive for holders other currencies. This can affect demand. Tony Sycamore, IG's market analyst, said that crude oil was trading lower as the risk sentiment shifted to a negative direction, boosting the U.S. Dollar, a safe haven currency. Both factors weighed on the price of crude oil. The American Petroleum Institute reported that U.S. crude stocks rose by 6,52 million barrels during the week ending October 31, according market sources who cited the API figures Tuesday. Prices are still being affected by supply-side concerns. OPEC+ (Organisation of Petroleum Exporting Countries) and its allies, also known as OPEC, agreed to raise output by 137,000 barges per day in December. The group decided that it would halt further increases during the first quarter 2026. The pause, however, was "unlikely" to provide meaningful support for November and December prices. LSEG analysts stated in a report. OPEC's own production increased by only 30,000 bpd in October compared to the previous month, as previously agreed OPEC+ increase were offset due to declines in Nigeria Libya and Venezuela.
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Commodities pull Australian shares down on lower prices
Australian shares fell on Wednesday as weak performances by gold and iron ore mining companies weighed down on commodity stocks. However, positive financials helped to limit the downward trend. As of 2340 GMT, the S&P/ASX 200 was down by 0.2% to 8,798. The benchmark index closed the previous session at its lowest level in over a month. After the dollar strengthened overnight, investors quickly sold their gold stocks. Gold prices have risen 78% this year. On Wednesday, the gold sub-index fell as much as 4,7% to its lowest level for more than a week. Northern Star Resources, Evolution Mining and other gold miners have declined by 2.9% and 4.6% respectively. The mining stocks continued to lose ground, reaching a new low of one month amid the continuing weakness in iron ore due to weak demand from China. The sub-index dropped 2.5%. Mining giants BHP Group, Rio Tinto, and BHP Group fell 1.2% and 2.0%, respectively. The mining sub-index was also affected by the weak copper and gold prices. Australian energy stocks fell nearly 1% following the fall in oil prices, as weaker manufacturing data and a stronger dollar weighed down on demand. The technology stocks fell more than 2%. They took their cues from Wall Street which had closed sharply lower over night after the big banks warned of a possible drawdown in equity markets. The benchmark index was able to recover from its losses thanks to the 0.8% rise in heavyweight financial stocks. The "Big Four' banks rose between 0.4% to 1.4%. CBA, the largest lender, led the way with a 1.4% increase. Reserve Bank of Australia, which had kept rates unchanged as expected, took a cautious stance on further easing of monetary policy on Tuesday. Increased interest rates could potentially boost bank margins. The benchmark S&P/NZX50 index in New Zealand fell by 0.3%, to 13,562.94.
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Budget plan: Canada could remove oil and gas emission cap
The government revealed in its budget plan for the first budget of Prime Minister Mark Carney that Canada may scrap the cap on oil-and-gas emissions and replace it with other measures, such as industrial carbon pricing or the deployment of technology to capture and store carbon. In the climate plan that was part of the first budget of Prime Minister Mark Carney, it said the cap would be no longer needed because its value would be marginal. The Canada's emission cap is not being enforced by legislation, and it will not take effect before 2030. Canadian oil and natural gas companies have condemned it, claiming that this would lead to a reduction in production. Carney has been criticized for renouncing the Liberals' environmental focus. He has focused on trade wars between Canada and the U.S. In the budget, it was also announced that the government would amend greenwashing laws which had caused investment uncertainty. The legislation was passed during the former Trudeau government's tenure last year. Oil companies had criticized it. "PAN-CANADIAN AGREEMENT" The Carney government has said that it is committed to reducing greenhouse gas emissions, and will work with the provincial governments to improve Canada's industrial carbon pricing system. In the budget, it is stated that a "pan Canadian agreement" on carbon pricing would help to increase investor confidence. The government will also apply the federal industrial price of carbon dioxide (CO2) to emitters from any province whose efforts at carbon-pricing do not meet federal standards. Alberta, a province that produces oil and natural gas, has, for instance, frozen its industrial carbon price, while Saskatchewan does not currently have one. Mike Holden is the chief economist of the Business Council of Alberta. The council's members include Canada's biggest energy companies. He said that the industry had "universally condemned" the cap on emissions. Holden stated that "if you have to choose between this and a stronger industrial carbon price I would prefer the latter." Analysts say that large-scale corporate investment in decarbonization, such as the C$16 billion ($11.47billion) carbon capture project proposed by Pathways Alliance, Canada's six biggest oil sands firms -- does not make financial sense without a price for emissions. The budget refers to the Pathways Project as "potentially transformational" for the country and extends the existing investment tax credit available for carbon capture project by five years.
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Stocks drop after recent rally, dollar hits 4-month-high vs Euro
The major stock indexes fell on Tuesday. Chip stocks were also lower. Goldman Sachs' and Morgan Stanley's CEOs warned that the market could be headed for a correction. Meanwhile, the dollar rose to a 4-month high against euro. U.S. Treasuries increased, pushing yields down, amid a flight of safety that also supported the dollar. Bitcoin, the cryptocurrency, fell by more than 6 percent and dropped below $100,000 for first time since last June. At an investment summit held in Hong Kong, bank CEOs warned of the possibility of a stock-market correction of over 10% within the next two year. These comments raised concerns about inflated valuations and potential market bubbles. Nvidia shares fell 4% while a semiconductor index also dropped 4%. Palantir Technologies shares fell more than 8%, despite its strong quarterly results. The company's value has more than doubled this year. It forecasts fourth-quarter results that are above market expectations, as rapid adoption of AI is driving demand for its products. Michael Burry (known for his successful bets in 2008 against the U.S. Housing Market) has placed bearish wagers on Nvidia, and Palantir. This was revealed by a Monday regulatory filing. The Nasdaq fell more than 2 percent, while the S&P 500 dropped more than 1 percent. The Nasdaq has still gained about 21% this year. Greg Faranello is the head of U.S. Rates Strategy at AmeriVet Securities, New York. The Dow Jones Industrial Average dropped 251.44 points or 0.53% to 47,085.24, while the S&P 500 declined 80.42 points or 1.17% to 6,771.55; and the Nasdaq Composite was down 486.09 points or 2.04% to 23,348.64. Shares of Advanced Micro Devices fell more than 2% after the closing bell. This was despite the fact that the company had forecast revenue for the fourth quarter above analyst estimates. The stock closed the regular session at a loss of 3.7%. The MSCI index of global stocks fell 11.51 points or 1.14% to 996.34. The STOXX 600 Index fell by 0.3%. Stocks have been helped by optimism about AI deals. Stocks rose on Monday following Amazon.com’s $38 billion cloud service deal with ChatGPT creator OpenAI. Reduced bets on Federal Reserve rate cuts in the near term boosted the U.S. Dollar, as divisions within the Fed raised doubts about another rate cut for this year. Jerome Powell, the Fed's Chairperson, said that a rate cut in December was not predetermined. CME FedWatch shows that traders are now betting on a 66% chance of a December rate cut, down from 94% one week ago. The euro dropped for the fifth consecutive session and was down by 0.3% to $1.1483, which is its lowest level since August 1. The dollar fell 0.4% against the yen to 153.60yen. However, the Japanese currency was still near its recent 8-1/2 month low. Sterling fell after UK Finance Minister pointed out "hard choices" for her upcoming budget. Sterling dropped 0.9% to $1.3015. The yields on U.S. Treasury bonds fell amid a general risk-off mood in the financial markets. Due to the U.S. government shutdown, the Bureau of Labor Statistics' closely-watched monthly jobs report will not be released on Friday as originally scheduled. In the afternoon, the 10-year benchmark yield sat at 4,089%. This was 1.8 basis points below the previous day. The dollar rose, and oil prices dropped. U.S. crude oil fell by 49 cents, settling at $60.56 per barrel. Brent crude dropped 45 cents, settling at $64.44. Spot gold dropped 1.69%, to $3.933.67 per ounce.
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Utility AES reports a rise in profit for the quarter on higher electricity prices
AES, a U.S. utility company, reported on Tuesday a higher profit for the third quarter due to increased electricity rates and booming demand. Utilities are pushing to increase customer bills in order to fund upgrades to critical infrastructure, such as electrical grids or power lines. This is to support a surge in electricity consumption that has never been seen before. The main reason for this is the rapid expansion of data centers devoted to artificial intelligence (AI) and cryptocurrency. AES's renewables unit has seen significant growth since last year. This is due to a global push towards cleaner power sources, as the U.S. electricity consumption is predicted to reach record levels. Andres Glski, CEO of Gluski Energy, said: "We have a backlog of 11.1 gigawatts of power purchase agreements signed, including 4 GW from hyperscalers, with the majority coming online in the next three to four years." Utility reported revenue of $3.35billion for the third quarter. This is up from $3.29billion a year earlier. The Virginia-based firm reported a net income of $634 million attributable shareholders, up from $504 million the year before. (Reporting and editing by Shilpi Mahumdar in Bengaluru, Vallari Srivastava from Bengaluru)
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Eversource Energy exceeds profit expectations for the third quarter on higher power rates
Eversource Energy, aided by its higher service rates, beat Wall Street's expectations for the third quarter profit on Tuesday. After the bell, shares of the company grew 2%. U.S. utilities are seeking rate increases to upgrade their grids in the face of extreme weather conditions and a growing demand for industrial electrification, data centers and industrial electrification. Rate-case proceedings are used by utilities to determine the amount customers pay for services such as electricity, gas, steam, and private water. Eversource's profit in its electric transmission unit rose by 6% during the third quarter to $185.5 millions, while that of its electric distribution business increased by nearly 9% to a total of $221.6 millions. According to LSEG, Eversource has lowered its profit forecast for 2025 to $4.72 - $4.80 per common share. The midpoint of this range was higher than the average analyst estimate of $4.73. The third-quarter results have been partially offset by a charge of $75 million or 20 cents per common share due to an increase in liability on two wind projects that were sold to Global Infrastructure Partners. Eversource sold to GIP its stakes in the South Fork Wind and Revolution Wind Projects last year. The adjusted gross proceeds were $745 million. This was down from $1.12billion due to reduced capital expenditure and a delayed commercial operation for Revolution Wind. According to data compiled and analyzed by LSEG, the Massachusetts-based firm posted an adjusted profit per share of $1.19 in the quarter July-September, compared to the analysts' estimated average of $1.15. (Reporting by Dharna Bafna in Bengaluru; Editing by Alan Barona and Tasim Zahid)
Wall St. shaken by fears of stretched valuations, Asian markets retreat
Investors' concerns over stretched valuations eroded confidence in the early trading of Wednesday, as Asian stocks continued to fall overnight on Wall Street.
MSCI's broadest Asia-Pacific share index outside Japan fell by 0.8%. South Korean shares were the biggest losers, with a drop of 4.1%. U.S. E-mini Futures fell 0.4% after the S&P500 dropped 1.2% overnight.
Chris Weston is the head of research for Pepperstone Group, based in Melbourne. There aren't a lot of reasons to buy, and the market is lacking a catalyst until Nvidia announces its earnings on November 19.
The stock market is retreating after reaching record highs, amid fears that equity markets have become stretched. This comes as CEOs from Wall Street giants Morgan Stanley and Goldman Sachs asked whether such valuations could be sustained.
Jamie Dimon, CEO of JPMorgan Chase, warned last month of the increased risk of a major correction of the U.S. Stock Market within the next 6 months to 2 years. The warnings coincide with a global surge of enthusiasm for generative AI that has affected stock markets around the world this year.
SoftBank Group shares plunged 10%, while Japan's Nikkei index fell 2.5%.
After the Bank of Japan released the minutes of its September policy meeting, the U.S. Dollar fell 0.2% to 153.41 yen.
The dollar index (which tracks the greenback versus a basket other major trading partners) briefly reached a five-month peak of 100.25.
The yield on 10-year Treasury Notes benchmark edged down to 4.0697% from its U.S. closing of 4.091% Tuesday.
Bitcoin dropped below $100,000 for first time since last June but recovered and closed the day up 0.2%, at $100,499.70. Gold was up 0.1% at $3,936.48 an ounce after three days of consecutive losses.
Early trading saw the euro single currency at $1.1484, after it hit a three-month-low following five consecutive days of declines.
Brent crude remained unchanged at $64.44 a barrel. Reporting by Gregor Stuart Hunter Editing done by Shri Navaratnam
(source: Reuters)