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India supports clean energy projects in states as federal agencies struggle to sell power
A top official in India said that the federal government of India cannot stop state governments from constructing clean energy projects, even though federal agencies are struggling with almost 50 gigawatts of renewable power not sold. The federal clean energy projects were not sold due to legal and regulatory delays as well as unfinished transmission lines. This had been reported earlier, which led state power utilities to delay signing purchase agreements. Some industry representatives have urged the federal government to use the power that has not been sold by federal agencies in place of the tenders issued by the states. Santosh Kumar Sarangi said that the introduction of clean energy in India will not be limited to federal agencies. He was speaking at an event organized by Confederation of Indian Industry. He said that state tenders will be the primary instrument in the future, and added that these tenders were tailored to their needs. The comments indicate a change from the previous model, where federal agencies acted as intermediaries to come up with tenders and sell power to state utility companies. State utilities, however, have been reluctant in purchasing projects proposed by federal agencies. They cite higher landed costs, when procuring power from states with a high renewable energy content, such as Rajasthan and Gujarat, along with concerns about transmission delays. Transmission problems are also a concern for the states, as India's capacity to transmit power has lagged behind the additions of renewable energy. Sarangi, citing the rise of data centers, said that while there are still many clean energy projects unsold in the country, the long-term growth of the economy will drive an increase in electricity demand, and clean energy is going to play a crucial role. India added a record 31.5 GW clean energy this year as of October and aims to double its non-fossil-fuel-based power output to 500 GW by 2030. Reporting by Sethuraman NR, Editing by Harikrishnan Nair
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Russian attacks have cut off power and heating for tens thousands of people in southern Ukraine
Local authorities and the energy firm said that tens of thousands were left without heat and power in southern Ukraine following Russian nighttime attacks against the frontline city Kherson and Ukraine’s largest seaport Odesa. As winter approaches, Russia is increasing the intensity and number of attacks against Ukraine's utilities and energy sector. This has plunged entire cities and areas into darkness. DTEK, a Ukrainian energy company, said that Russia had attacked its energy plant in southern Odesa overnight, leaving 51 800 households without electricity. Kherson, a city in southern Ukraine, has a regional governor who said that after a series Russian attacks the operations of a heat-and-power plant were suspended, leaving 40 500 customers without heat. Governor OleksandrProkudin stated on Telegram that "this entirely civilian facility which provided heat for the city's citizens has suffered severe damage. The station's premises as well as equipment have been damaged." He added: "Once more, terrorists wage war on civilians." Kherson, a city on the frontline of a war zone, is almost constantly subjected by Russian artillery and missile attacks. Ukraine's Energy Ministry said that Russian attacks also left 60,000 Donetsk residents without power, but did not provide any further details. (Reporting and editing by Alex Richardson, Ed Osmond and Pavel Polityuk)
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Oil prices in the Gulf are up, and US rates may be cut.
The major Gulf stock markets rose early on Thursday. This was due to rising oil prices, and the anticipation of the U.S. Federal Reserve's meeting next week. Investors are looking for more information on the direction the central bank will take with interest rates. The oil prices rose after Ukrainian attacks on Russia’s oil infrastructure indicated potential supply constraints. Stalled peace talks dampened expectations that a deal would restore Russian oil to global markets. However, weak fundamentals limited gains. Saudi Arabia's benchmark Index gained 0.5%. Saudi Arabian Mining Company rose 1%, while oil giant Saudi Aramco increased 0.4%. A survey released on Wednesday showed that the non-oil sector of the private sector in Saudi Arabia expanded at its highest rate in 10 month in November. This was driven by increased hiring and robust demand, but new orders grew slower than in previous months. Dubai's main stock index grew 0.3%. This was largely due to a 1.9% increase in the blue-chip developer Emaar Properties, and a 1% rise in top lender Emirates NBD. In Abu Dhabi the index increased by 0.4%. ADP's report on Wednesday showed that private payrolls in the United States fell by 32,000, which was the largest decline in over two and a half years. The still low layoff rates suggest that this may not be a true reflection of the strength of the labour market. CME FedWatch predicts that there will be an easing of interest rates at the December 9-10 Meeting. Major brokerages also expect this. AlRayan Bank's gains of 1.6% and 0.2% on the Qatari index are notable.
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Shanghai copper reaches record high due to tight supply
Shanghai copper reached a record-high on Thursday. This was boosted by an increase in the cancellation of metal from warehouses registered at the London Metal Exchange as well as increasing bets that the Federal Reserve will cut rates this month. After hitting a high of 91450 yuan, the most active copper contract traded at the Shanghai Futures Exchange for the day, the price jumped 2.26%, to 90,980 ($12,873.01), per metric ton. The rally was triggered by the record-breaking high reached on Wednesday for LME three-month copper benchmark. London copper was 0.10% higher at $11,476 per ton by 0700 GMT. LME data showed that on Wednesday, 50,725 tonnes of copper were cancelled in South Korea and Taiwan warehouses 0#MCUSTX -LOC>. This brought the amount of copper on warrant in LME sheds down to its lowest level since July, at 105.275 tons. Analysts at Chinese broker Jinrui stated in a report that the sharp increase in LME warrants cancelled suggested that expectations for tightening of supply on markets outside of the United States were starting to materialise. Glencore reduced its copper production forecast for 2026 on Wednesday but still expects a rise by 2035. Goldman Sachs has raised its average LME Copper Price Forecast for the first half 2026 from $10,415 to $10,710. The dollar fell on Thursday as a result of mediocre economic data that bolstered the argument for a Fed rate reduction next week. Tin prices have risen to their highest levels in over three and a half years. Shanghai tin ended the day 2.23% higher, at 316230 yuan per ton. It had earlier reached its highest level since April 20, 2022, at 323,700. London tin fell 1.40%, to $40,210 per ton. It had previously reached $41,010, the highest level since April 2022. Aluminium, zinc, lead, and nickel all rose in price. Lead added 0.30% in London. Nickel edged up 0.11%, zinc fell 0.15% and tin dropped 1.40%. Aluminium was not changed.
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Japan dominates Asian markets following strong JGB sales
Japanese stocks led gains on Asian markets Thursday, as investors bid heavily for government bonds at an auction. Meanwhile, the U.S. Dollar recovered from its five-week low. The Nikkei rose by 2.2%, led largely by the industrial robot maker Fanuc Corp. MSCI's broadest Asia-Pacific index outside Japan traded flat due to declines in Korea, New Zealand and Australia. Early European trading saw pan-regional futures up 0.6%. German DAX Futures also rose 0.6%. FTSE Futures increased 0.31%. Tokyo's most recent debt sale attracted the highest demand in over six years. This helped calm investor nerves following a selloff which pushed yields for super-long-dated bond to record highs, and spread to global fixed income markets this week. Bond yields increase when bond prices drop. Shoki Omori is the chief desk strategist at Mizuho, Tokyo. He said that "the 30-year JGB was unexpectedly strong." The extent of previous selling seems to have created a feeling of cheap valuation, which in turn encouraged demand. He added that the sentiment would need to be improved by multiple auctions. The yield of the 30-year Japanese Government Bond was down by 4.0 basis points to 3.38%. The dollar last rose 0.1% to 155.32 yens. The Japanese currency recovered some ground following reports that the Bank of Japan was likely to increase interest rates in December, and the government would tolerate such a move, according to three government sources who are familiar with deliberations. S&P 500 futures are little changed after the overnight momentum in U.S. markets has waned in Asia. Weaker-than-expected data on economic growth reinforced expectations that the Federal Reserve would cut interest rates next week. Wall Street stocks advanced on Wednesday, led by small cap companies. The Russell 2000 index rose 1.9% while the benchmark S&P 500 gained for the second consecutive day. Gains were made after the U.S. private employment data showed their largest drop in over two-and-a half years. A separate survey by the Institute for Supply Management revealed that its measure of employment in the services sector contracted in November. The subindex of prices received fell to a 7-month low. Henry Russell, an economist at ANZ, said on a podcast that this move is in line with his view that recent supercore inflation will subside and pave the way for a resumption in disinflation by 2026. "We still believe that the Fed should continue to reduce interest rates in response to the downside risks of the labour market," he added, adding that the bank anticipates a 25 basis-point reduction at the meeting next week and further easing for next year. Fed funds futures indicate an 89% implied probability that the U.S. Central Bank will cut interest rates by 25 basis points at its next meeting, on December 10. This is compared to an 83.4% implied probability a week earlier. The U.S. Dollar Index, which measures the strength of the greenback against a basket six currencies, last rose 0.1% to 98.99. This ended a nine-day loss streak, after it had reached its lowest level since November 29. The yield on the U.S. Treasury 10-year bond last increased 2.7 basis points to 4.083%. This was after the Financial Times reported that bond investors expressed concern to the U.S. Treasury on Wednesday, citing people familiar with these conversations, that Kevin Hassett - a candidate for the next Federal Reserve Chair next year - could aggressively reduce interest rates in order to align himself with President Donald Trump’s preferences. In Hong Kong, the Chinese yuan fell 0.1% to 7.64 yuan per dollar after reaching its highest level in over a year against the greenback on Wednesday. The Australian dollar gained 0.1% following official data showing that Australian household expenditure surged to the highest level in nearly two years in October. Meanwhile, the goods trade surplus of the country widened more than expected due to a rise in gold exports for the second consecutive month. After a recent run of hot metals, precious metals have cooled. Last week, gold was down 0.6% to $4,179.91 an ounce. Silver was 2.2% lower, at $57.28 an ounce. Brent crude rose 0.4% to $62.94. (Reporting and editing by Gregor Stuart Hunter, Lincoln Feast, and Sonali Paul).
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Aurubis reports a 14% decline in profit before tax as copper production slows
Aurubis, Europe's biggest copper producer, reported earnings that were below expectations on Thursday. This was due to lower concentrate output at reduced treatment and refinement charges. Operating earnings before taxes fell by 14% in 2024/25 to 355 millions euros ($414million), which was slightly less than the 359 million euro expected by analysts in a poll conducted by the company. Aurubis stated that the result was a result of high contributions from precious Metals, sulfuric Acid and high demand for Copper products. It added that this was partly offset by a decline in recycling revenue and higher ramp up costs and depreciation due to strategic projects, such as the expansion of its Pirdop plant in Bulgaria. The operating core profit (EBITDA), which analysts expected to be 604 million euro, fell by 5.3%. Revenue increased to 18.17 billion euro from 17.14 billion last year, but fell short of the consensus estimate of 18,37 billion euros. The Hamburg-based producer said that it would raise its annual dividend by 10 cents per share to 1.60 euro.
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Gold falls as investors become cautious ahead of Fed meeting
Gold prices fell on Thursday, as investors took profits and became cautious in advance of the U.S. Federal Reserve's meeting next week. They are awaiting data to get a better idea about interest rates. As of 0617 GMT, spot gold was down 0.5% to $4,179.71 an ounce. U.S. Gold Futures for December Delivery were down 0.5% to $4,210.20 an ounce. Soni Kumari, ANZ's commodity strategist, said that "with investors a little cautious ahead of the FOMC meeting (Federal Open Market Committee), the market is pricing in a Fed cut by 25 basis point... The market now needs a new trigger to push (gold) higher." Kumari said that a decline to $4,000 will likely attract new buyers due to gold's solid fundamental support. According to ADP's employment report released on Wednesday, U.S. payrolls fell by 32,000 last month, the largest drop in over two-and-a-half years. However, the low number of layoffs suggests that the decline may not be indicative of the true state the labor market. According to CME's FedWatch, the markets now expect an 89% probability of a rate reduction next week. Major brokerages are also expecting easing during the December 9-10 meetings. Gold is a non-yielding asset that tends to be favoured by lower interest rates. The Fed's preferred inflation indicator, the Personal Consumption Expenditures Index (PCE), due Friday, is the focus of attention. Silver fell 2.1%, to $57.22, after reaching a record-high of $58.98 last Wednesday. Silver prices have risen by 101% this year, mainly due to the concerns over market liquidity following outflows from U.S. stocks and its inclusion on the U.S. Critical Minerals list. Ajay Kedia of Mumbai-based Kedia Commodities said that since mid-November, Shanghai's silver inventories had fallen to a low level of 531 tons. This is the lowest level since 2015, as China's exports have increased significantly. Palladium fell 1.4% to 1,439.91, while platinum dropped 0.9% to $1640.30. (Reporting and editing by Rashmi aich in Bengaluru, Sherin Elizabeth Varghese from Bengaluru)
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Rio Tinto lifts 2025 copper production forecast on Oyu Tolgoi ramp-up
Rio Tinto raised its copper production forecast for 2025 on Thursday. The company cited a ramp up of operations at the Oyu Tolgoi Project in Mongolia. Rio expects to produce between 860,000-875,000 metric tonnes of copper on a combined basis in 2025, up from its previous estimate of 780,000-850,000 tons. The miner anticipates copper production of between 800,000 to 870,000 tonnes in 2026. Rio Tinto makes its profits from iron ore. However, it is now shifting their focus to copper. They aim to produce 1 million tons of copper annually by 2030. The copper price has reached a record level and is expected to remain in high demand as we transition to more environmentally friendly forms of energy. Rio has said that it is on track to increase copper production at Oyu Tolgoi this year by over 50% and by 15% by 2026. The miner stated that it would reduce unit costs by 4% between 2024-2030. It said that capital discipline, increasing prices for its commodities, and a 20% increase in copper production would help to boost its earnings up to half within the next decade. (Reporting by Himanshi Akhand & Rajasik Mukherjee in Bengaluru; Editing by Subhranshu Sahu)
As investors expect Fed rate cuts, stocks rise and the dollar is set to lose 10 days in a row.
The dollar dropped for the tenth consecutive day against a basket, extending its longest losing streak since over 50 years.
After an auction, Japanese stocks rose sharply.
Government Bonds
Investors showed a strong interest in the stock, setting the tone for the entire equity market. STOXX 600 in Europe was up by 0.1%, and is still on track for a modest gain each week.
U.S. Stock Futures were flat for the day. This suggests a steady trading start later in the session.
Wall Street stocks rallied Wednesday, led by small cap companies. The Russell 2000 index rose 1.9% while the benchmark S&P 500 gained for the second consecutive day. The gains were made after the U.S. private employment data showed their largest drop in over two-and-a half years, and after a survey in the services sector revealed that activity was stable in November while hiring slowed. FedWatch, a tool of the CME Group, shows that Fed funds futures indicate an implied 89% chance for a 25 basis-point cut during the next U.S. central banks meeting on December 10. This is compared to an 83.4% probability a week earlier. According to LSEG, the U.S. Dollar Index, which measures the performance of the U.S. Currency against six other currencies, fell 0.05% last day. This is the longest loss streak since at least 1970. The yield on the 10-year Treasury bond in the United States was last up by 2.7 basis points to 4.083%. This is after the Financial Times reported that bond investors expressed concern to the U.S. Treasury on Wednesday about Kevin Hassett's potential to aggressively reduce interest rates so as to align with Donald Trump’s preferences.
Hassett would likely face the same problem as Governor Miran does today if he advocated for any ultra-dovish rate reductions on jumbo bonds. Michael Brown, Senior Research Strategist at Pepperstone, explained that without a convincing economic argument, Hassett will not be able garner enough votes to support such a policy.
The government debt sale in Japan attracted the highest demand for more than six year, helping to calm investor nerves over the long-term financial health of the country, which has caused similar concerns about other economies.
Shoki Omori is the chief desk strategist at Mizuho, Tokyo. He said that "the 30-year JGB was unexpectedly strong." The extent of previous selling seems to have created a feeling of cheap valuation, which in turn encouraged demand.
He added that the sentiment would need to be improved by multiple auctions. The yield of the 30-year Japanese Government Bond was down by 4.0 basis points to 3.38%.
Dollar was down 0.3% last week at 154.825 yen, heading to its biggest weekly gain in two months. The yen was given a boost by a report that the Bank of Japan will likely raise interest rates next month. Three government sources who are familiar with these discussions said the government would tolerate this decision.
In Hong Kong, offshore trading, the yuan weakened a bit, and the dollar rose 0.1% to 7.0664 yuan. On Wednesday, the Chinese currency reached its highest level in over a year against the dollar. After a recent run of hot metals, precious metals have cooled. The last time gold was down by 0.2%, at $4,199 per ounce. Silver fell by 1.8$, at $57.4 an ounce after reaching a record high on Wednesday of $58.98.
Brent crude rose 0.2% to $62.79 per barrel. (Reporting and editing by Gregor Stuart Hunter, SonaliPaul and Andrew Heavens).
(source: Reuters)