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Copper continues to lose value as the dollar gains strength
The dollar strengthened on Tuesday as the U.S. Federal Reserve was divided over a rate cut in December. In addition, the delayed September payrolls were the main focus. By 0243 GMT, the most traded copper contract at the Shanghai Futures Exchange had dropped to 12 084 yuan per metric tonne. The benchmark copper for three months on the London Metal Exchange fell 0.37%, to $10 739 per ton. Dollar benefited from a decline in expectations that the Fed will cut rates next month. The dollar's strength makes commodities traded in greenbacks more expensive for investors who use other currencies. The official September employment data will be released Thursday, after the government shutdown in the United States delayed its release. Investors are more sensitive to the labour market signals, as they reassess near-term Federal Reserve path. Nickel, among other SHFE base materials, led the selloff Tuesday, falling 1.79% to an average of 114,700 Yuan per ton. Metal used in stainless steel and batteries fell by as much as 1.8% to 114.68 yuan per ton. This is the lowest price since July 2022. The London Metal Exchange's three-month nickel fell 0.58%, to $14,565 per ton. This is the lowest price since April. Traders said that nickel fundamentals have been showing signs of weakness in the past two weeks. Nickel pig iron Nickel, a raw material used to make stainless steel, traded at just over 900 yuan a unit. This is down from 950 yuan at the end of October. Nickel sulfate is used as a battery feedstock Also showed signs of weakness entering November. LME nickel stocks Nickel stocks rose to 252,090 tonnes on November 17 while the corresponding gold stocks decreased On Friday, the SHFE sheds reached 35 826 tons. Shanghai aluminium fell by 1.01%. Zinc dropped 0.56%. Lead lost 0.75%. Tin declined 0.19%. Aluminium fell 0.75% on the LME, while zinc dropped 0.45%. Tin was down 0.34% and lead only 0.05%.
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Dalian iron ore continues to rise but profit-taking limits gain
Dalian iron ore prices rose on Tuesday, adding to the gains of the previous session, but profit-booking and a shrinking basis were responsible for the modest increase. As of 0201 GMT on China's Dalian Commodity Exchange, the most traded January iron ore contract was up 0.45% to 784.5 Yuan ($110.38), after gaining nearly 2% Monday. As of 0151 GMT the benchmark December iron ore price on the Singapore Exchange had fallen by 0.42% to $103.95 per ton. This was after a day-long gain of over 1%. A Singaporean trader, who spoke on condition of anonymity because he was not authorized to speak with the media, said: "Spot liquidity is quite lukewarm. It weighs on sentiment." Mysteel, a consultancy, reported that the volume of seaborne and portside cargoes fell by 25,8% and 24,3%, respectively, from Monday's previous session. A Shanghai-based analyst said that higher prices have reduced mills' purchasing appetite. Industrial participants remain bearish on the price trend due to rising inventories and seasonal weakening of steel demand. The trader from Singapore said that the upward momentum also slowed down due to the narrowing of the basis, which is the difference between the spot and futures price. The futures market prices were supported by the need for basis convergence and the narrowing of the gap between spot prices and futures. This was despite spot prices falling faster than futures earlier in this month. Coke and other steelmaking materials, such as coking coal, fell by 3.48% and 2.68 percent, respectively. The benchmark steel prices on the Shanghai Futures Exchange are mixed. The Shanghai Futures Exchange saw a mixed performance in steel benchmarks. Rebar gained 0.26%; hot-rolled coil remained unchanged; wire rod increased by 0.3% while stainless steel fell 0.24%. ($1 = 7,1075 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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The Information reports that Databricks is in discussions to raise capital valued at more than $130 billion.
The Information reported Monday that Databricks, a data analytics company, is in discussions to raise money at a valuation exceeding $130 billion. This is about 30% more than the last round of financing two months ago. The company refused to comment on the article. The report stated that Databricks had not signed any term sheets with investment firms. Could not confirm immediately the report. In September, the San Francisco company closed a $1 billion funding round, which valued it at 100 billion dollars, making it the most valuable private company in the world. Databricks announced at the time that it was on course to reach $4 billion in annualized revenues, driven by a booming demand for their artificial intelligence products. The proceeds would be used to accelerate the company's AI strategy, expand its products, launch a operational database category, and pursue AI research and acquisitions. Databricks was founded in 2013 and offers a platform to help users ingest data, analyze it, and create AI applications. The company is viewed by many as the leading candidate for going public, and it has received many investor inquiries. Databricks serves about 15,000 clients, including Block, a payments company, Shell, and Rivan, a maker of electric vehicles.
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Barry Dunning Jr. and Pitt shooters to a one-sided victory over Bucknell
Barry Dunning Jr. scored 23 points and sank 7 3-pointers to lead Pitt to a 84-50 win over Bucknell in a non-conference game on Monday. South Alabama transfer, Dunning, shot 7 of 11 in the 3-point range and 8 of 13 on the floor. Dunning grabbed seven rebounds to help the Panthers (4-1), who improved their home record to 4-0, improve. All four Pitt players - Cameron Corhen (11 points), Omari Witherspoon (11 points), Branden Cummings (11) and Nojus Idrusaitis (11) - finished the game with 11 total. Ruot Bijeek led Bucknell (2-3), scoring 11 points. In the second half, the Panthers scored 46 points to 25 for the Bison. Bucknell shot 27.7% of its shots (13 out of 47). Pitt, on the other hand, shot 50.8% of their shots (31 out of 61). Papa Amadou Kante led the Panthers with 11 points. Dunning scored 14 points to help the Panthers lead 38-25 at the half. Dunning scored on 5 of his 7 floor attempts before the half, including 4 out of 5 3-point tries. Bijiek leads the Bison in scoring with seven. In the first half, the Panthers had a 12-0 lead. Witherspoon began the surge by tying the game with a layup, before Damarco Major's 3-pointer at 11:16 in the second half gave Pitt the lead for good. Witherspoon then made a layup, followed by Dunning. Dunning finished the run off with a 3-pointer to give them a 21-11 lead. Bison, on the other hand, fought back. Amon Dorries ended the streak by making a free-throw with 8:01 remaining, and Bijiek punished the Panthers for a mistake with a three-pointer. The Panthers quickly restored the deficit to double digits. Dunning made a 3-pointer, and Corhen added a jumper for a 28-17 score. Witherspoon gave Panthers a lead of 13 points at halftime by hitting a 3 pointer at the buzzer. With a run of 22-2 to begin the second half, the Panthers extended their lead to 30. Cummings began the run with a jumper and Witherspoon sank a 3-pointer. Cummings hit two free throws, Corhen one and Brandon McCreesh a layup for Bucknell. Cummings responded with another 3-pointer. Rom Siulepa's dunk made it 51-27. Dunning's fifth and sixth three-pointers gave Pitt a 57-24 lead with 14:23 remaining. Field Level Media
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Gold continues to fall as dollar remains firm, easing Fed rate cut bets
Gold dropped for the fourth consecutive session on Tuesday. The dollar was strong and there were fewer prospects for an interest rate reduction in the United States next month. As of 0131 GMT, spot gold was down by 0.1%, at $4,039.19 an ounce. U.S. Gold Futures for December Delivery fell by 0.9%, to $4.038.60 an ounce. "The dollar has been a little stronger today, and some of the speculation lengths have also been reduced in this last week. "The gold market will consolidate for the time being," said Marex analyst Edward Meir. After a steep rise in the session before, the dollar remained stable against its competitors. Gold becomes more expensive when the dollar is stronger. Last week, Congress reached an agreement on the end of the longest U.S. Government shutdown in history. The absence of official data about the economy dampened expectations that the Federal Reserve would cut rates again in December. Fed Vice-Chair Philip Jefferson said Monday that the U.S. Central Bank needed to "proceed gradually" with additional rate cuts. This has dented expectations of a reduction next month. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. This week, the focus will be on U.S. economic data, such as the nonfarm payrolls September report, which is released on Thursday. These releases can provide clues about the health of the largest economy in the world. "Expectations that the Fed would cut again next months dropped from a peak of almost 100% shortly after the September announcement to just 42% over night. This has weighed down on the appetite of investors for gold," ANZ stated in a report. The medium-term investment demand is expected to be supported by structural tailwinds such as geopolitical uncertainties, concerns over U.S. debt sustainability and de-dollarisation. Other than that, silver spot fell by 0.4%, to $50 an ounce. Platinum rose by 0.3%, to $1.538,74. Palladium dropped 0.5%, to $1.386.01. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)
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Oil prices drop as Russian hub resumes loading; markets consider sanctions impact
The oil prices fell on Tuesday, as traders assessed the impact of Western sanctions against Russian flows, and supply concerns waned after the loading of cargo at a Russian hub was resumed following a drone strike in Ukraine. Brent crude futures fell 28 cents or 0.4% to $63.92 per barrel as of 1100 GMT. U.S. West Texas Intermediate crude futures (WTI) were down 26 cents or 0.4% at $59.65 per barrel. According to two industry sources, and LSEG data, the Russian port of Novorossiysk resumed oil loadings Sunday following a two-day suspension triggered a Ukrainian drone and missile attack. In a note, IG analyst Tony Sycamore noted that crude oil prices are marginally lower as "reports indicate that loadings at Novorossiysk have resumed earlier than expected," he wrote. The exports of crude oil from Novorossiysk, and the nearby Caspian pipeline consortium terminal, which together represent about 2.2 millions barrels per day, or roughly 2%, were stopped on Friday. Crude prices rose by more than 2%. Now, traders are focusing more on the long-term effects of Western sanctions on Russian crude oil flows. The U.S. Treasury reported that sanctions imposed on Rosneft in October and Lukoil in November are already cutting into Moscow's oil revenue and will eventually reduce Russian export volumes. ANZ stated in a report that "Moscow crude oil has started trading at a substantial discount to global benchmarks." According to a senior White House official, President Donald Trump will sign legislation imposing sanctions on Russia as long as the final decision is in his hands. Trump said that Republicans were drafting legislation to sanction any country that does business with Russia. He added that Iran may also be included. Goldman Sachs predicted that oil prices would decline until 2026. The company cited a large supply wave which keeps the market in excess. Goldman Sachs said that Brent oil prices could reach $70 per barrel by 2026/2027, if Russian production drops more dramatically.
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China and Russia to increase cooperation in energy, agriculture
China is prepared to intensify cooperation with Russia on energy, agriculture, and other investments. Premier Li Qiang made this statement during a Monday meeting in Moscow with Russian Prime Minster Mikhail Mishustin. Li told Mishustin, the Russian official news agency Xinhua reported that China welcomed more agricultural and food product from Russia. Xinhua reported, citing Li, that China hopes Russia will also make it easier for Chinese companies to invest and operate in Russia. Mishustin said to Li that the bilateral cooperation has proven resilient in the face of external challenges. According to a transcription of the meeting posted on the Russian government's website, Mishustin said that their cooperation was "special and strategic" and covered the oil, coal, and nuclear sectors. Russia, which is fighting NATO-supplied Ukrainian troops, and China, who are under pressure by the United States to counter their growing economic and military strength, have found a common geopolitical purpose. Beijing and Moscow announced their "no-limits" strategic partnership only days before Putin sent thousands of Russian soldiers into Ukraine in 2022. Xi met Putin over 40 times in the last decade. In recent months, Putin has publicly referred China as an ally.
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US Treasury: sanctions against Rosneft and Lukoil reduce Russia's oil revenue
The U.S. Treasury announced on Monday that U.S. sanction against Russian oil giants Rosneft, and Lukoil have already reduced Russian oil revenues. They are also likely to reduce Russian oil sales in the future. In a press release, the Treasury's Office of Foreign Assets Control stated that their analysis of the first market impact of sanctions announced on the 22nd of October showed they were "having their intended effect of dampening Russian revenue by lowering Russian oil prices and therefore the ability of the country to fund its war against Ukraine." The Treasury's action was one of the strongest U.S. sanction since Russia invaded Ukraine on a large scale in February 2022. It is also the first direct sanction imposed by Donald Trump since he took office in January. The deadline set by the sanctions is November 21, when companies must end their business with Rosneft or Lukoil. Violators could be disconnected from the dollar-based system of financial transactions. It was not clear how Treasury would enforce the sanctions. China and India are the two biggest buyers of Russian crude oil. OFAC's analysis found that prices for several grades of Russian crude oil were at an all-time low. It also noted that a dozen of the largest Indian and Chinese buyers of Russian crude had announced their intention to stop buying Russian crude for December deliveries. LSEG Workspace showed Monday that benchmark Urals crude was loaded in Russia's Black Sea oil port of Novorossiysk On November 12, oil traded at $45.35 a barrel, the lowest price since March 2023. The Russians were just starting to build a "shadow" fleet of tankers at that time to avoid the G7-led $60 per barrel price cap imposed in December 202023. Brent crude futures traded at $64.03 Monday, up from $62.71 the previous day. Urals Novorossiysk climbed to $47.01 Monday. After a drone and missile attack by Ukraine, loadings at the Black Sea Port have resumed. Reports earlier in the month indicated that Russian oil discount to Brent had increased as Indian and Chinese refiners reduced purchases due to U.S. sanction. A Treasury spokesperson stated that the sanctions "starved Putin's war-machine" and the Department "is ready to take additional action if needed to stop the senseless killing in Ukraine". (Reporting and editing by Cynthia Osterman; David Lawder)
Stocks fall as markets focus on US data barrage and Japan PM's meeting with BOJ chief
Asian stocks fell in the early trading on Tuesday as investors reduced their bets on a Federal Reserve rate reduction next month. The government shutdown had delayed a flurry of important U.S. economic data.
The closely-watched September nonfarm payrolls data is due on Thursday.
The focus in the region also centered on the meeting between Japan's new prime minister Sanae Takaichi and Bank of Japan Governor Kazuo Ueda, which took place at 0630 GMT. This was the first time the two had met since the new leader's inauguration last month.
In a Tuesday research note, JBWere analysts stated that "there will be interest in Takaichi’s meeting given his reputation as an advocate for easy monetary and fiscal policies and the market's uncertainty about when or if the BOJ would tighten its policy in the coming months."
Ueda hinted at the possibility of an interest rate increase as early as next month. Takaichi, and her finance Minister, Satsuki Catayama, both want rates to stay low until inflation reaches the BOJ's target of 2%.
The broadest MSCI index of Asia-Pacific stocks outside Japan fell 0.7%, while Japan's Nikkei dropped more than 2%.
Early weakness in regional shares tracked a prolonged selloff overnight on Wall Street as benchmark Treasury yields dipped lower and markets prepared for a flood economic data releases.
Investors are eagerly awaiting the quarterly earnings of Nvidia on Wednesday, as they look for any signs of weakness in a sector which has been driving much of recent stock market rally.
The traders had to decide whether or not the Federal Reserve will cut rates at its next meeting, which is scheduled for the month of April.
Besa deda, chief economic advisor at William Buck in Sydney, said that global equity markets had adopted a cautiously conservative tone before the U.S. payrolls for non-farmers and the key corporate earnings.
The payrolls report should provide the Fed with much-needed information about the strength of the U.S. economic foundation and help to shape the expectations surrounding the Fed's future move. "A Fed rate cut is not guaranteed in December."
November has seen a greater level of volatility in global equity markets. "Unlike October, the majority of major indices are stalling, and have not been able to reach new record highs."
Investors have reduced expectations of a Fed rate cut in December, despite recent data showing further weakness of the U.S. Economy. The markets now price in a closer 40% chance of a Fed rate reduction by 25 basis points in December. This is down from over 60% earlier in the month.
The dollar remained stable on the foreign exchange markets. The dollar index (a measure of U.S. currency compared to major rivals) was last up by 0.2%, at 99.545, ending a four-day loss streak and reclaiming a one week high.
The dollar rose by 0.1% against the yen, to 155.29. This is the lowest level of the Japanese currency since February 4, this year.
At a regular press conference held on Tuesday, Japanese Finance Minister Satsuki Catayama expressed her "alarm" over the volatility of the currency.
Brent crude futures fell almost 0.5% to $63.91 per barrel in the morning Asian session.
Bitcoin rose 0.3%, after hitting a low of $91,174.66 in the previous session. This was a drop of almost 22% within three months. (Editing by Shri Navaratnam).
(source: Reuters)