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REalloys joins forces with Canada's Rare Earths Council
REalloys, a U.S. startup that produces heavy rare-earth magnets, announced on Monday that it will partner with Saskatchewan Research Council (Canada's unit for technology innovation) to expand a processing plant for heavy rare earths, which is expected to begin operating in 2027. REalloys said it would invest around $21 million to expand the production of heavy rare Earths in exchange for a long term offtake agreement that covers 80% of its annual production. The announcement is made as the U.S. Government seeks to diversify the risk away from China, the top supplier of magnets, by developing an alternative supply line for the materials used in wind power and defense industries. REalloys of Ohio, formed in 2023 plans to convert rare earths into metal in Saskatchewan, either from mined ore, or recycled electronics. It signed an earlier agreement to source ore for a Greenland-based project that Critical Metals Corp hopes to develop. The Saskatchewan facility initially will produce 30 tons of dysprosium, 15 tons terbium, and 400 tons neodymium (NdPr). This will increase to 600 tonnes per year once the expansion is completed. REalloys is developing a mining project in Saskatchewan that will support the magnet rare-earths supply chain. In September, the U.S. Export-Import Bank sent a letter of intent for a loan up to $200,000,000 to fund processing and magnetic facilities. (Reporting by Melanie Burton in Melbourne; Editing by Jamie Freed)
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Gold prices rise on Fed rate cuts and a weaker dollar
Gold prices increased on Monday due to growing expectations that the U.S. will cut interest rates, which pushed up the dollar ahead of this week's Federal Reserve policy meeting. By 1127 GMT, spot gold had risen 0.2% to $4206.36 an ounce. U.S. Gold Futures for February Delivery fell 0.2% to $4235.60 an ounce. Dollar-priced Gold is now more affordable to overseas buyers thanks to the dollar index, which has been trending lower since December 4. The gold price is rising due to a lower dollar, and the market expects that the Fed will cut rates this week. This was stated by UBS analyst Giovanni Staunovo. Last week, data showed that U.S. consumers spent more in September. This reflected a slowdown of the economic momentum, despite rising costs and weakness on the labour market. Private payrolls in November saw their biggest decline in more than two-and a half years. CME's FedWatch tool shows that markets have priced in a 87% chance of a rate cut of 25 basis points at the Fed meeting on December 9-10, after the release of weak data and the dovish comments of several Fed officials. Gold is a non-yielding asset that tends to be in high demand when interest rates are low. Staunovo added, "We are still looking for rate cuts in the coming year. This should push gold up to $4,500/oz." Silver rose 0.3% to $58.43 an ounce after reaching a record-high of $59.32 per ounce on Friday. Silver is also benefiting from this factor. Staunovo added that the expectation of improved industrial demand due to monetary and fiscal stimuli helped silver outperform gold over recent weeks. White metal prices have doubled this year due to supply shortages and the designation of the mineral as a critical one by the U.S. Palladium rose by 1.2% and platinum was up 0.9% at $1,656.61. (Reporting and editing by Susan Fenton, Louise Heavens and Pablo Sinha from Bengaluru)
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Copper reaches record high on supply concerns ahead of Fed decision
Prices of copper reached record levels on Monday, as the lower dollar in anticipation of the Federal Reserve meeting this week led to a rush of purchases. Concerns about future shortages also fueled optimism. Benchmark copper at the London Metal Exchange rose 0.3% to $11,657 per metric ton by 1057 GMT, from a previous peak of $11,771 per ton. This represents a gain in excess of 30% for this year. The U.S. Central Bank is expected to reduce rates. The U.S. dollar will be affected, and when it falls the price of metals priced in dollars becomes cheaper for holders other currencies. This relationship is used by funds as a way to generate buy-and-sell signals based on numerical models. The mine supply disruptions of recent years, such as the accident at Freeport-McMoRan's giant Grasbery Mine in Indonesia, are partially responsible for the expected deficits. The rest of the world has also seen a tightening of supplies as traders have shipped copper to the United States due to higher Comex prices ahead of U.S. president Donald Trump's proposed import tariffs. The U.S. tariffs on metals used in construction and power remain under review. An update is due by June. The copper inventories at the Comex-approved warehouses are now a record 436,853 metric tons or short tons. On Friday, the number of people who attended church has increased by more than 300% compared to March. Macquarie analysts estimate that there are roughly 335,000 additional tons of metals sitting in storage in the U.S. Macquarie stated that the metal had been transferred into Comex warehouses, and November imports were lower than usual before Section 232. The market surplus is 400,000 to 600,000 tonnes per year, if you allow for the transfer of stocks. It's a problem that the majority of this stock is in America, causing artificial shortages elsewhere. Other metals saw aluminium slip 0.1%, to $2.895 per ton. Zinc gained 0.4%, to $3.110. Lead added 0.4%, to $2.011, while tin rose 0.3%, to $40.175. Nickel slipped by 0.1%, to $14.930. (Reporting and editing by Leroy Leo; Pratima Dasai)
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Draft document shows that EU will delay proposals on carbon border tax for auto industry
By Kate Abnett and Philip Blenkinsop BRUSSELS - According to a draft agenda of the European Commission, seen by, the European Union intends to delay until December 16 legal proposals for expanding its carbon border levy, and possibly weakening a ban on new CO2-emitting vehicles in 2035. Carmakers and governments are closely watching the plans, including Germany, Italy and others, who have asked that the EU revise their 2035 auto CO2 emission policy, as it currently stands, would effectively ban new combustion engine vehicles. The original publication date for the proposals was Wednesday. On Monday, officials from the Commission were still negotiating timings and the draft agenda may still change before publication. Some EU officials have suggested that the proposals for autos could be further delayed, possibly into 2026. The spokesperson for the Commission declined to comment on a draft agenda that was seen by. Brussels is working on proposals to extend its carbon border tariff, which will be implemented in the near future, to include more downstream products like washing machines. This would prevent foreign companies from avoiding this world-first measure. The proposals for autos are being developed amid lobbying by European carmakers to allow greater flexibility in the 2035 policy. This includes allowing plug-in hybrids and combustion engine vehicles that run on so called CO2-neutral gasolines, continue sales beyond this deadline. The European auto industry needs flexibility to deal with the slower-than-expected electric vehicle sales and the fierce competition from China. The EU's climate goals could be compromised if the policy is weakened. This would result in more CO2-emitting vehicles on the roads of Europe by 2050 when it has committed to achieving net zero emissions for its entire economy. Reporting by Kate Abnett and Philip Blenkinsop. Editing by Louise Heavens.
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Sudan's RSF paramilitary RSF claims it has taken control of the strategic Heglig Oilfield
The Sudanese paramilitary Rapid Support Forces, or RSF, announced on Monday that they had taken over the strategic Heglig Oilfield in South Kordofan Province. Heglig is the largest processing plant for South Sudanese crude oil. This makes up a large part of the government's revenue. Sources from the government said that the workers and the government forces at Heglig oilfield retreated on Sunday in order to avoid any clashes which could have damaged oil facilities. Sources at the Heglig Oil Field said that oil workers and the army had left the oil field for South Sudan. The Greater Nile Pipeline System transports oil to Port Sudan at the Red Sea, where it is exported. This makes the Heglig site crucial for both Sudan's hard currency earnings and South Sudan which is landlocked, and relies on pipelines mostly through Sudan. The conflict that broke out in April 2023, between the Sudanese Army and the RSF, has disrupted South Sudan’s oil flow. Before the conflict, South Sudan exported between 100,000 and 150.000 barrels of crude oil per day via Sudan. (Reporting and editing by Bernadettebaum)
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Howery, the US envoy to Greenland, meets with officials in Greenland amid Trump's interest for the island
PayPal co-founder Kenneth Howery will meet with officials from Greenland, Denmark and Nuuk in Nuuk, this week, on his first trip to the Arctic Island. This comes amid tensions surrounding President Donald Trump's desire to acquire the semi-autonomous area. The relationship between Denmark and the United States has been strained ever since Trump revived talks of taking Greenland from Denmark. The U.S. Embassy posted a photo on Instagram of Howery and Greenland Foreign Minister Vivian Motzfeldt. Greenland’s government announced on Saturday that the meetings of the Joint Committee (also known as the Permanent Committee) and the Joint Committee (also known as the Joint Committee), which alternately take place in Greenland and with the U.S.A., are a forum to discuss civilian and military co-operation, including the American presence on this strategically located island. Motzfeldt stated in a press release that "these committee meetings are intended to promote direct dialog and cooperation with the United States regarding several areas of civilian and military importance." Washington claims that Greenland is a Danish territory and vital to the U.S. for its security, especially the early-warning ballistic missile system. The shortest route between Europe and North America passes through the island. Motzfeldt said that trust and respect were the foundations of any partnership. It is no secret, however, that the last year was challenging. The Danish foreign ministry refused to comment on the participation of Denmark. The Danish and Greenland government have both ruled out a cession of the island's resource-rich resources to the United States, although Denmark admitted neglecting its military capabilities. (Reporting and editing by Jacob GronholtPedersen, Soren SirichJeppesen; additional reporting by Stine Jacobsen)
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Turkey's gold price spread shrinks as demand increases
After a period when the global gold price surged in the fall, the spread between the physical gold prices in Turkey, and the global market level has shrunk sharply, traders reported. The spread between gold prices in Turkey denominated in TL and their global equivalents peaked at over 5%. The spread between the TL-denominated price of physical gold in Turkey and the TL equivalent of global prices peaked at more than 5%. Traders said that the wide spread had affected the lira during the fall as the surge in gold demand was met by imports. Retail flows in Turkey have seen a decrease in demand for gold and foreign currency, but an increase of gold supply. In recent weeks, this shift has relieved pressure on Turkey’s external balances as well as the lira. The reversal is due to a number of factors, including a drop in FX protected deposit (KKM), the end of soaring global gold prices and the decline in local demand, which was strong in the summer months. The value of KKM deposit has dropped to $600m from its peak of $140billion in August 2023. The FX and Gold supply for client-based transactions has also increased significantly over the last week, especially in Istanbul's Grand Bazaar. The dollar/TL rate remained steady at around 42,5 during this time. One FX trader stated that the local sharp demand for Gold has stopped. He added that gold supply has been increasing since late November. Turkey's central bank estimates the country's gold reserves - stored in metal at home or "under-the mattress" - to be almost $500 billion. In Turkey, physical gold has been the preferred investment to combat high inflation. Gold spot prices have risen from $3,500 per ounce in early September, to $4,378 an ounce in October, a 25% increase, before dropping to $4,200 currently. (Reporting and editing by Jonathan Spicer, Daren Butler and Nevzat Dvranoglu)
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Finmin: Indonesia will impose a coal export tax up to 5% in the next year
Purbaya Yudhi Sadewa, Indonesia's Finance Minister, said that the country plans to tax coal exports between 1% to 5% in 2019. This is part of a drive to increase revenue for the state. According to data from the mining ministry, Indonesia was a major thermal coal exporter in 2013, with shipments of 555 millions metric tons. This is two-thirds of the total 836 million tonnes of production. Purbaya did not provide any further details on the implementation. He had said that coal export taxes could generate 20 trillion rupiah ($1.2billion) in revenue next year. Gita Mahayarani, executive director of the Indonesia Coal Miners Association, said that they hope there will be a threshold price for duties. She said: "We believe that this approach will allow the government to achieve its goal of increasing revenue while also ensuring the industry is not burdened with excessive costs, thereby maintaining operational sustainability." Exports of coal have been affected by the slower demand in China, a major buyer. Exports between January and October were down by 4% on an annual basis at 320.47 millions tons.
The morning bid for Europe continues to be successful, and rate reductions are in the near future.
Tom Westbrook gives us a look at what the future holds for European and global markets.
The longest U.S. Government shutdown in history appears to be nearing an end. Traders are riding a wave that started late last week.
The Senate has approved a compromise which would restore funding to the U.S. Government. The bill now heads to the House where Speaker Mike Johnson said he wanted to pass it by Wednesday.
The Nasdaq and gold have both posted their best gains for months. Gold is trying to regain the momentum it had in October, when it reached record highs. Bets on future U.S. rate cuts are also helping to boost the price of gold.
The Asian stock markets were largely steady or slightly higher on Tuesday, and the risk-on sentiment pushed the safe haven yen down to its lowest level in nine months.
The U.S. Bond Market is closed for the holiday on Tuesday, but there has been a shift away from riskier assets and a steadying of shorter bonds. This reflects a move out of riskier investments as well as a belief that the resumed publication of U.S. statistics will support a rate cut.
SoftBank Group, a Japanese tech investor, is set to announce its second-quarter results amid a frenzy of investment in artificial intelligence which has sent the share price of this company soaring.
Sony has raised its operating profit projection for the year ending in March 2026, by 8%. It cited a lower impact of U.S. Tariffs and the strength and growth of its music and chip businesses.
Commonwealth Bank shares fell by nearly 5% in Australia after the largest lender of the country said that competition was reducing margins.
Tuesday marks Singles Day in China and is the culmination to what has become a shopping spree lasting for weeks. In the past, 1,44 trillion yuan (202 billion dollars) worth of goods were purchased during this period. This is almost five times what U.S. consumers spent during Cyber Week last year, which was the period between Black Friday and Cyber Monday.
The following are the key developments that may influence Tuesday's markets:
Earnings of SoftBank, Vodafone, and Munich Re
- German ZEW Survey, British Weekly Employment Data
(source: Reuters)