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Iron ore gains for the third week in a row on Infrastructure Demand
The iron ore futures price was little changed on the Friday but is headed to a third weekly gain in a row on recent infrastructure demand. As of 0301 GMT, the most-traded contract for January iron ore on China's Dalian Commodity Exchange was trading 0.06% higher. It was 796 yuan (US$112.48) per metric ton. This week, the contract has risen by 1.14%. The benchmark December Iron Ore at the Singapore Exchange fell 0.56% to $106.1 per ton. Galaxy Futures, a Chinese broker, says that recent infrastructure demand is increasing, resulting in a continued improvement in apparent steel demand. Prices are expected to follow fundamentals on the short-term. Data from Chinese consultancy Mysteel shows that inventories of five major carbon steel products held in Chinese steel mills fell for the seventh consecutive week by 2.5%, to 3.9 millions tons on Thursday, the lowest level since late January. Steelhome data shows that the total stockpiles in China of iron ore dropped by 0.42% on a week-to-week basis to around 139 millions tons as of November 28. According to Chinese broker Everbright Futures, on the supply side, the top two producers, Australia and Brazil, both saw a decline in shipments, while the total number of ships at port fell by 8 months. Iron ore futures have been softening recently due to concerns over China's real estate sector. However, losses were capped when Bloomberg reported that policymakers could introduce new support measures. Coking coal and coke, which are both steelmaking ingredients, have also lost ground. They fell by 0.84% and 2.244% respectively. Galaxy said in the same report that increased coal supply, as well as continued stock accumulation in coal mines, has led to an acceleration in recent coking coal prices. The benchmarks for steel on the Shanghai Futures Exchange are mostly in positive territory. Rebar gained 0.42%. Hot-rolled coils grew 0.18%. Wire rod increased 0.18%. Stainless steel fell 0.44%. ($1 = 7.0769 Chinese yuan). (Reporting and editing by Rashmi Liew)
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Petrobras reduces dividend and makes investment projections in its new five-year plan
Petrobras, the state-run Brazilian oil company, has cut its dividend forecast by almost 2% and reduced expected investments by nearly 2% as part of a five-year plan released on Thursday. The firm is struggling with lower crude prices. Petrobras plans to distribute between $45 billion - $50 billion in ordinary dividends during the period 2026-2030, according to a filing. The firm's previous five-year plan, which was released last year, had the company expecting to pay up to $55billion to shareholders. The new plan does not mention extraordinary dividends, whereas the old one suggested that up to $10 billion in dividends could be paid out between 2025 and 2029. Petrobras has cut its investments from $109 billion to $109 billion as it faces lower Brent oil price, which it expects to hover at $63 per barrel next year. This is below the $77 it estimated for 2026, in the previous plan. The state-owned firm has seen its investments drop for the first time under the current government of President Luiz inacio Lula Da Silva. Under former President Jair Bolsonaro, the last time investments were cut was in 2021-2025, during a period of Petrobras divestments. According to sources, the report on Wednesday stated that Petrobras expected investments would drop to $109 billion under the new plan. Lula, since he took office, has encouraged the oil company to invest more to help boost the economy of the country. The leftist leader will seek to run for a non-consecutive fourth term next year. Petrobras increased its investments in exploration and production by around $1 billion, bringing the total to $78 billion, but kept refining, transport and marketing at about $20 billion. Petrobras said that it also expects to achieve peak oil production in 2028, within a period of 2.7million barrels per daily (bpd). The plan's peak production would be 3.4 millions barrels of oil equivalent per day in 2028 or 2029. This is based on projections for each year with a plus or minus 4 percent margin. Reporting by Fabio Téixeira and Rodrigo Viga Gaier, Rio de Janeiro. Editing by Natalia Siniawski & Kevin Buckland.
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Asian shares finish November with a strong performance, helped by Fed cuts
Asian shares will end a difficult November on a more stable footing as renewed hopes of a U.S. interest rate cut have helped calm valuation fears and Treasuries are rallying for the fourth consecutive month. The U.S. market, which was closed for Thanksgiving overnight, is due to have a shorter session on Friday. This means that activity will be more muted across all major asset classes than usual. The majority of European stocks were higher while currencies were more calm. MSCI's broadest Asia-Pacific share index outside Japan was flat Friday. It is now on track to gain 3% in the coming week, its first weekly increase in four weeks. It was down 2.7% for the month. Nikkei, the Japanese stock index, was not much moved either. It was on track for a rise of 3,2% per week. It was down 4.3% for the month. South Korean shares fell 1%, but the central bank of the country held rates at the same level and announced the end of the easing cycle. The index has still gained 2.5% this week. The global equity markets were unusually volatile in November, as fears about the sky-high valuations of tech stocks shook markets. Meanwhile, a U.S. shutdown lasted a record 43 consecutive days. Bitcoin, the risk-barometer, fell 17% in November. Federal Reserve officials are cautious due to the lack of data from the shutdown, but Fed Governor Christopher Waller, and New York Fed president John Williams, have expressed support for a cut in rates next month. This has helped stabilize the sentiment. CME FedWatch shows that Fed funds futures indicate an 85% probability of a rate reduction next month. This is a dramatic change from the 30% chance a week ago. Vincenzo Vedda is the chief investment officer of DWS. He said: "If I combine everything, and compare valuations to past bubbles, for example, then I don't think we are there yet." "We think that the inflation is generally under control... In general, we expect a decent growth in the coming 12 months... You have a favourable environment for risky assets. The Hang Seng Index in Hong Kong rose 0.3%, while the blue-chip index in China fell 0.1%. BOJ HIKE IS IN VIEW The data showed that Tokyo's core consumer prices rose by 2.8% from November of last year, which was above the forecasted 2.7% increase. This is just one of a number of data points that has kept the bets on a Bank of Japan rate hike alive. Markets are now pricing in a rate hike as early as next month. As the yen fell and political pressure to keep rates low waned, more BOJ board members have signalled a rate hike. The yen was unchanged at 156.37 to the dollar after rebounding from a 10-month-low of 157.9, which was hit last week. Investors await the Japanese authorities' intervention after weeks of verbal browbeating to stop the currency's steady decline. The dollar's performance on the currency market was stable against its major counterparts, but it was expected to suffer a loss of 0.7% per week, the largest since July. Markets bet on the end of policy easing cycles for both the Aussie and Kiwi. The minutes of the European Central Bank meeting show that policymakers were also not in a hurry to lower rates. The prospect of Fed policy easing in December boosted the rally for Treasuries. Benchmark 10-year Treasury Yields were at 4.0094%, and set to drop by 10 basis points each month for the fourth consecutive month. Oil prices were essentially unchanged on Friday, but they were headed for a fourth consecutive month of losses due to the U.S. pushing for the peace plan in the Ukraine-Russian war. Brent crude futures for the front-month, which expires on Friday, remained unchanged at $63.34 per barrel. The spot gold price rose 0.7%, to $4,186 an ounce. This brings the monthly gain up to 4.6%. However, they are still a long way from the record high $4,381.
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ASIA COPPER WORRID-China's crackdown on overcapacity reaches copper but market impact is unlikely
Plans to build a series of new smelters have been shelved The industry still expects to gain new capacity through projects in construction The move is seen as a sign of more to come Amy Lv. Lewis Jackson, and Dylan Duan Industry insiders say that the decision by China to suspend a number of planned copper smelters will not have a significant impact on historically tight copper markets, unless more measures are taken to reduce output. Due to the disruption of mines, copper concentrate supplies are becoming scarcer and more expensive. The growth in smelting capacity in China has increased competition globally for this feedstock. The fees paid for processing copper (also known as treatment and refinement charges) have dropped to negative historic levels. China announced on Wednesday that it had suspended the construction of 2 million metric tonnes of new smelting capacities. This was a gesture to the difficulties faced by Chinese smelters during annual negotiations over copper concentrate supplies. Eight analysts and three traders who spoke to us on the sidelines the World Copper Conference Asia, held in Shanghai, this week, stated that there would be no immediate impact on copper prices, as the projects currently under construction will be completed. Helen Amos is a commodities analyst with BMO Capital Markets. She said: "I don't believe the decision will change anything over the next two years because we are still seeing new smelting capacities coming online." Unidentified Chinese analyst said that the announcement which didn't name any projects only raised questions. This included how the 2 million ton figure was calculated. The Chinese government is redoubling its efforts to reverse the rampant industrial overcapacity. Policies to reduce production have been implemented for coal, lithium and polysilicon (the raw material used in solar panels). Uncertainty remains, however, as to how far Beijing is willing to go in order to curb a sector that helps China offset its reliance on refined copper imports, which it would like to reduce. The industry figures warned that if Wednesday's announcement signals Beijing is planning or considering more drastic measures, such as forced capacity reductions or a cap on production, then it could have a greater impact. Amos stated, "For me it's symbolic of the industry being affected by policy changes like we have seen in steel and aluminum in the past." (Amy Lv in Shanghai, Lewis Jackson and Dylan Duan; editing by Joe Bavier).
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Israeli forces kill two Palestinians who appear to be surrendering in West Bank
Two Palestinian men were shot by Israeli security forces on Thursday, who appeared to surrender and be unarmed in a raid conducted in Israel-occupied West Bank. The men can be seen in the video exiting the building in Jenin in the northern West Bank, removing their shirts, and lying down on the ground as if they were surrendering. The men were then directed back into the building by the forces before they opened fire. After hearing shots, a journalist near the scene saw Israeli forces standing next to what appeared to a dead body. In a press release, the Palestinian Health Ministry said that two men had been killed by the shooting. They were identified as Montasir Asasa and Yusuf Abdullah. Israel Police and the Israeli Military issued a joint press release announcing they had launched an investigation following the firing of forces on suspects exiting a building. The statement didn't give any reasons for the shooting, nor did it say that two men were lying on the floor before being directed inside the building to be shot. Jenin Governor Kamal Abu al-Rub accused Israeli forces, in a phone conversation, of carrying out "cold-blooded" executions of two young men, who, he claimed, were unarmed and surrendered. He said that those who fired should be held accountable, but he expressed doubts about the Israeli authorities' ability to conduct an honest investigation. In a joint statement, the Israeli police and military said that Israeli forces were conducting an operation in Jenin to apprehend people wanted for "terrorist activities", including throwing explosives at security forces and shooting them. The statement stated that the two men who had been shot were wanted people who were associated with a "terrorist network in the Jenin area". The statement did not say what the men were accused or provide any proof of their alleged connection with a terrorist network. According to military and police sources, security forces surrounded the building in which the men were found before launching a "surrender process" lasting several hours. The statement stated that "fire was directed at the suspects after their exit," adding that "the shooting is under review by the commanding officers on the ground and will be sent to the relevant professional body." Itamar Bin-Gvir, Israel's National Security Minister of the far-right party, issued a later statement in which he gave his "full support" to both the military and police unit involved in the shooting. He wrote: "The fighters acted as they were expected to - terrorists must die!" The Jenin raid is the latest in a campaign that Israel has been waging for months across cities of northern West Bank. Israeli forces launched an operation in the nearby city Tubas on Wednesday. Hamas, the Palestinian militant group that agreed to a Gaza ceasefire last month, has condemned the killings of men in Jenin and called on the international community intervene in order to stop Israel's "escalating executions in the field." The group has not claimed the two men. Reporting by Mohamad Tookman, Ali Sawafta, Steven Scheer, Alexander Cornwell, and Steven Scheer, in Jerusalem. Editing by Rosalba o'Brien.
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Gold falls from near 2-week-high as traders consider US rate cuts
Gold prices fell on Thursday after hitting a two-week high in the previous session. Investors also assessed the probability of a U.S. rate cut in December. As of 1601 GMT, spot gold was down by 0.2%, at $4,157.29 an ounce. U.S. Gold Futures for December Delivery fell 0.2% to $4154.30 an ounce. Carsten Menke, analyst at Julius Baer, said: "We expect that the consolidation process that began with the October setback will continue because the dust from that setback is still not completely settled." Bullion is down 5% from its record high of $4381.21 reached on October 20. However, it has traded broadly above the $4,000 per ounce key level. Menke said, "The factors that we see favoring the gold market remain largely unchanged. These include slowing U.S. economic growth, which has led to lower interest rates, a weaker U.S. Dollar, and sustained demand for safe havens, as well as continued central bank purchases." Federal Reserve signals contradictory on timing and magnitude of U.S. rate cuts has accelerated hedge flows into swaptions, and derivatives linked to overnight rates. Kevin Hassett has aligned himself with Donald Trump, the frontrunner for Jerome Powell to be the next Fed chair, in urging a rate reduction. The comments made this week by San Francisco Federal Reserve Bank president Mary Daly, and Fed Governor Christopher Waller boosted expectations for a reduction. CME FedWatch shows that traders now price in an 85% probability of a rate reduction next month, compared to just 30% one week ago. Gold that does not yield tends to do well in an environment of low interest rates. The U.S. market will be closed for Thanksgiving on Thursday and operate with a reduced schedule on Friday. Silver spot fell by 0.3%, to $53.17 an ounce. Platinum rose 1%, to $1.604.72, while palladium increased 0.5%, to $1.430.40. (Reporting from Noel John, Bengaluru. Editing by Alexander Smith and Ed Osmond. Nia Williams.
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Gold falls from near 2-week-high as traders consider US rate cuts
Gold prices fell on Thursday after hitting a two-week high in the previous session. Investors also assessed the probability of a U.S. rate cut in December. As of 1423 GMT, spot gold was down by 0.1% to $4,159.31 an ounce. U.S. Gold Futures for December Delivery fell 0.3% to $4156.30 an ounce. Carsten Menke, analyst at Julius Baer, said: "We expect that the consolidation process that began with the October setback will continue because the dust from that setback is still not completely settled." Bullion is down 5% from its record high of $4381.21 reached on October 20. However, it has traded well above the important 4,000 per ounce mark. Menke said, "The factors that we see favoring the gold market remain largely unchanged. These include slowing U.S. economic growth, which has led to lower interest rates, a weaker U.S. Dollar, and sustained demand for safe havens, as well as continued central bank purchases." Federal Reserve signals contradictory on timing and magnitude of U.S. rate cuts has accelerated hedge flows into swaptions, and derivatives linked to overnight rates. Kevin Hassett has aligned himself with Donald Trump, the frontrunner for Jerome Powell to be the next Fed chair, in urging a rate reduction. The comments made this week by San Francisco Federal Reserve Bank president Mary Daly, and Fed Governor Christopher Waller have also raised expectations for a rate cut. CME FedWatch shows that traders now price in a 85% chance for a rate reduction next month, compared to just 30% one week ago. Gold that does not yield tends to do well in an environment of low interest rates. The U.S. market will be closed for Thanksgiving on Thursday and operate with a reduced schedule on Friday. Silver spot rose by 0.2%, to $53.24 an ounce. Platinum gained 0.7%, to $1.599.10 and palladium rose by 0.2%, to $1.425.79. (Reporting and editing by Alexander Smith, Ed Osmond and Noel John from Bengaluru)
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OPEC+ is expected to maintain oil production policy for Q1 according to sources
Two delegates and a source with knowledge of OPEC+ meetings said that OPEC+ will likely leave oil production levels unchanged during its Sunday meeting and agree on a method to measure members' maximum capacity to produce. Two delegates stated that the eight OPEC+ nations who have gradually increased output in 2025 will keep their policy of halting hikes in the 1st quarter of 2026. OPEC+, a grouping of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia and pumping about half the oil in the world, has been discussing production capacity figures for years, against which the members' targets are set. Sources who spoke under condition of anonymity said that the full OPEC+ will likely agree to the capacity mechanism at a separate gathering on Sunday. OPEC announced in May that this capacity assessment will be used as a reference for the 2027 baseline output. OPEC, Saudi Arabia and Russian authorities didn't immediately respond to a comment request. The two delegates stated that four online meetings are planned for Sunday, starting at 1300 GMT with OPEC Ministers alone. The Joint Ministerial Monitoring Committee will then meet, followed by all OPEC+ Ministers. Finally, the eight members of the Joint Ministerial Monitoring Committee will convene. OPEC+ met in September to discuss the issue of capacity on a technical basis. Baseline discussions in the past have been fraught with tension as they determine how much each member will cut production. Angola left the group in 2024 due to a disagreement over its production target. OPEC+ cut supplies for many years, until the eight members started to increase production in April to regain market share. The cutbacks peaked in march, when they reached 5.85 million barrels a day. This is almost 6% of the world's total production. Saudi Arabia, Russia and the UAE have all raised their output targets from April to December by around 2.9 millions bpd. They also agreed on a first-quarter break at their last meeting. The sources also said that OPEC+ ministers will not be making any changes to the group's production targets for 2026. These include a cut of 2 million bpd, which is shared by all members until the end next year. (Reporting and editing by Alexander Smith)
Nasdaq's worst week since April due to AI rally worries, US yields slide
Investors worried about the sustainability and growth of artificial intelligence stocks, while U.S. Treasury rates dipped.
The Nasdaq has fallen about 3% this week. Chip stocks and other tech-related shares have also been among the worst performers.
As optimism about AI drove markets to new highs, the Nasdaq gained more than half since April when U.S. president Donald Trump announced tariffs.
The Financial Times, however, reported earlier this week that Nvidia CEO Jensen Huang warned the U.S. to be prepared for China's victory in the AI race.
We're still seeing the AI selloff after our comments... about China winning in the AI race. "You're seeing multiples being re-calibrated in the space. That's where most of the weakness lies," said Michael O'Rourke. Chief market strategist at JonesTrading, Stamford in Connecticut.
You could also see it as profit taking. O'Rourke stated that this has been a great year for stocks, particularly in the group.
Bitcoin was also down for the last week but was up 2.9% on the day, at $103,197.07.
The S&P 500, Dow, and NASDAQ all ended the day higher after reports that progress was being made in the congressional impasse, which is the cause of the longest government shutdown in U.S. History.
The Dow Jones Industrial Average rose by 74.80, or 0.16 percent, to 46,987.10. The S&P 500 gained 8.49, or 0.13 percent, to 6,728.81. And the Nasdaq Composite dropped by 49.45, or 0.22 percent, to 23,004.54.
The MSCI index of global stocks fell by 0.68 points or 0.07% to 913.22. The pan-European STOXX 600 fell by 0.55%.
The trade data from China was weaker than expected, demonstrating the impact of Trump's tariffs.
Data showed that China's exports fell by 1.1% in October. This was the lowest performance since February. The data chills Asian markets, reminding them of China's dependence on American consumers.
U.S. Treasury Yields edged down after new surveys showed deteriorating consumer confidence, partially due to the U.S. Government Shutdown, and investors weighed concerns about debt supply.
University of Michigan preliminary consumer sentiment index showed that sentiment dropped to 50.3, its lowest level since 2022. This was due to concerns about the impact of the shutdown on the economy. The drop was primarily due to a dramatic deterioration of respondents' perceptions of the current situation, which fell to its lowest level ever.
The yield on the benchmark U.S. 10 year notes dropped 0.2 basis points to 4,091% from 4,093% at late Thursday.
The U.S. Dollar fell against the major currencies. Since last week, when Federal Reserve Chairman Jerome Powell admitted the risks of further easing measures, it had mostly firmed.
The shutdown prevented the release key economic data. Data signals from surveys indicate a resilience which could support the argument for not cutting interest rates at the Federal Reserve meeting in December.
The dollar index fell 0.11% on the day to 99.57. The euro rose 0.14% to $1.1563. The dollar gained 0.25% against the Japanese yen to reach 153.45.
Prices recovered after a dip in the middle of the day on hopes that Hungary could use Russian crude oil. Trump also met Hungary's Premier Viktor Orban, at The White House. U.S. crude oil rose by 32 cents, settling at $59.75 per barrel. Brent gained 25 cents, settling at $63.63 per barrel. Gold prices were also higher.
(source: Reuters)