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The planned Indonesian commodity exchange is likely to include palm oil, nickel and coal
A presidential spokesperson revealed that the planned Indonesian exchange for "minerals and strategic 'commodities'" would likely include palm oil and coal. The government is preparing to launch the bourse on January 1. The plan was announced by President Prabowo in his budget speech for 2027 on Friday. He said that Indonesia aimed to establish its own benchmark price for many?of its key commodities. This was his latest attempt to use?the vast reserves of natural resource to boost the country's growth. Southeast Asia's largest economy is the world’s biggest exporter of thermal coal, nickel, and palm oil products. It's also a major producer of coffee beans, copper, tin, and bauxite. On Monday, the presidential spokesperson Prasetyo hadi informed reporters that the government was currently working out the details of the plan. This includes the commodities to be traded at the exchange. He said: "Certainly, it will cover commodities such as CPO, nickel, and coal, which are our primary products." Friderica Widyasari dewi, the chief of OJK's Financial Services Authority, told reporters that rules would be introduced for the new bourse on September?17. She said that the OJK will have rules for a phased transition to the new bourse. A separate presidential decree will list the commodities which will trade at the bourse.
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Gold falls on higher oil and Treasury yields; Fed minutes are in focus
The gold price was 'under pressure' on Tuesday due to a rise in oil prices and higher treasury yields. Traders were also waiting for the minutes of the U.S. Federal Reserve policy meeting held in July for any clues about the future interest rate outlook. As of 0423 GMT spot gold fell 0.5% to $4,391.14 an ounce. U.S. futures for December delivery were down 0.6% at $4,446.70. The yields on the benchmark U.S. Treasury 10-year note increased, increasing?the cost of non-yielding gold. The oil prices rose after Iran announced that it would "shift to a fully offensive" military position following the failure of negotiations to reach a permanent settlement to the war with the United States. Washington also ruled out the extension of a temporary ceasefire. Soni Kumari, an ANZ analyst, said that oil?prices would continue to be one of 'the main factors' keeping gold under pressure if the Middle East situation continues to remain uncertain. The expectations of traders around the Fed's policy rates will be crucial for gold. Kumari also said that technical levels would be important. Energy prices that are higher tend to increase inflationary fears and expectations for higher interest rates from the Fed. Gold is often seen as a hedge to inflation but higher interest rates tend to reduce its appeal. Market pricing for a quarter-point hike in September has flipped from a 65% chance to "hold" due to unexpected job losses, lower than expected consumer price inflation, and weaker retails sales. Investors are also waiting for the minutes of the Fed's latest policy meeting, which is scheduled to be released on Wednesday. According to technical analyst Wang Tao, spot gold could test support at $4381. A break below this level?could lead to the $4320 to $4351 range. Silver fell 1% per ounce to $65.11, platinum dropped 1.2% to 1,748.56, and palladium was down 1.2% at $1,317.01.
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Copper prices fall as China's disappointing data and the Mideast crisis weigh.
The market was digesting a string of disappointing economic reports from China and the U.S., as well as the fact that a truce between Iran and the U.S. had expired with no longer-term agreement. Benchmark 'three-month' copper on the London Metal Exchange fell 0.39% to $14,102 per metric ton at 0300 GMT. Shanghai Futures Exchange's most traded copper contract fell 1.19%, to 107 690 yuan (15,971.58) per ton. After copper prices reached a six-month peak on Monday, disappointing economic indicators in China drew attention to the demand outlook. "Weaker-than-expected economic ?data in China weighed on sentiment across the base metals sector," Daniel Hynes, senior commodity ?strategist at ANZ, said in a note. Data from the National Bureau of Statistics revealed on Monday that China's factory production grew by 4.5% from a year earlier in July, a decline from June, and below expectations. Fixed asset investment, which includes investments in copper-consuming industries like real estate and infrastructure in China, declined 6.7% during the first seven-month period of 2026 compared to an expected 6% drop. China's import demand has been affected by the higher prices of copper. The Yangshan Copper Premium On Monday, the price of a ton fell to $85; its lowest level since July 10. However, the premium was still?nearly double what it was at the beginning of the year. Brent crude also increased as the U.S. Iran ceasefire expired and the negotiations to end the conflict remained in a deadlock. The high price of?crude may increase inflationary pressures and lead to higher interest rates, affecting economic activity. Among LME metals, aluminium dipped 0.2%, ?zinc lost 0.74%, lead dipped 0.11%, ?nickel dipped 0.17% and tin dipped ?0.3%. Aluminium, Zinc, Nickel, Lead and Tin all dropped in price.
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Oil prices continue to rise as US-Iran ceasefire ends
The bond yields rose on Tuesday to their highest level in decades. Oil prices also increased for the third day. Stocks in Asia gave up gains made in early trades as a U.S. - Iran truce ended and Tehran warned of a "fully offensive military posture". The 30-year Treasury bond yield rose 1.1 basis points intraday to 5.321%. This is the highest it has been in nearly 20 years. The 10-year counterpart rose 0.4 basis points to 4.724%. "In the past, when the 10-year Treasury bond rate rose above 4,65 percent, the Trump administration would follow up with some comforting words, usually centered around an imminent end to the Iran war," ING analysts noted in a recent note. They added, "This time we are not hearing the same thing." "In fact the latest indications point to no imminent resolution, as the fragile 60-day truce has come to an end." S&P 500's e-mini futures fell 0.2%, as MSCI’s broadest Asia-Pacific index outside Japan dropped 0.3%. This reversed early gains as stocks from Taiwan and China weighed on the benchmark. The KOSPI, the South Korean stock index, erased a gain of over 3% after the Seoul market returned from a long holiday. It traded flat while the Nikkei fell by 1.6%. Brent crude futures rose 0.4% to $91.20 per barrel, as the rally in oil prices continued for a third day straight in Asian trade. In a recent research report, MUFG analysts noted that "the big focus of global macro is on the increase?and stickinginess in longer-end yields in developed markets and in particular a persistent sell-off in U.S. Treasuries." The yield on the 10-year Japanese Government Bond rose by 2 basis points, to 2.94%. This is a three-decade high. The S&P 500 fell 0.5% overnight on Wall Street while the Nasdaq Composite dropped 0.3%. This was due to soft U.S. data including an unexpected decline in retail sales. This led traders reduce their bets that the Fed would soon increase interest rates. Westpac analysts stated in a research note that "Markets adopted a risk-off tone after President Trump reiterated he wasn't interested in extending his truce with Iran." The U.S. Dollar Index, which measures the strength of the dollar against a basket of six currencies, rose 0.1% to 99.60. It has recovered from a recent low. Gold fell 0.3% to $4,402,89, ending a two-day streak of gains. Bitcoin and ether, the two most popular cryptocurrencies, were down 0.3%, at $64,159.76 each and $1,899.34, respectively. (Reporting and editing by Sonali Fernandez, Clarence Fernandez and Gregor Stuart Hunter)
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Markets await Fed minutes as gold extends its gains amid easing fears of rate hikes
On Tuesday, gold rose for a 'third straight session' as investors looked forward to the minutes of the Federal Reserve meeting. They were hoping for new clues about the direction the Federal Reserve will take with its monetary policy. Spot gold rose 0.2% to $4,424.28 an ounce at 0130 GMT. U.S. gold futures for December delivery also edged up 0.2% to $4480.90. The U.S. Dollar remained near multi-month lows against most major currencies. Dollar-priced precious metals become cheaper for holders of other currencies when the U.S. dollar weakens. Gold's gains are continuing "after last weeks soft U.S. data, which raised hopes that the?"Fed" will hold rates this year," IG Market Analyst Tony?Sycamore stated. Bullion is likely to perform well in an environment of low interest rates, as it reduces your opportunity costs for holding non-yielding investments. According to a survey, most economists believe that the U.S. Central Bank will maintain its key interest rate next month and until year's end. After unexpected job losses, lower than expected consumer price inflation, and weaker retail sales in August, the market pricing for a quarter-point increase in September has shifted to a near-65% chance that it will be held. The focus of Wednesday's market will be on the minutes from the Fed’s latest policy meeting. Sycamore stated that "additionally, gold seems to be regaining a safe-haven position as the hawkish rhetoric of Iran has helped gold 'brush off higher returns. A senior Iranian official said that Iran would shift to a more "fully offensive" military posture as efforts to negotiate an end to the U.S. war have stalled. Washington has also ruled out the extension of a temporary ceasefire. Silver spot rose by 0.9%, to $66.40 an ounce. The platinum price rose 0.2% to $1,772.75, and palladium fell 0.3% to $1,330.05. Reporting by Ashitha shivaprasad from Bengaluru, editing by Subhranshu sahu
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Russian ESPO blend crude oil returns to premium vs Brent due to China's demand, traders claim
Four traders reported that the price of Russia's ESPO blend crude oil for October delivery to China can be up to $1 per barrel higher than ICE Brent. This is due to the strong Chinese demand as well as uncertainty about Middle East and Iranian oil supplies. The traders reported that Asian buyers were looking for alternatives to Middle Eastern crude oil due to concerns about the disruption of shipments across the Strait of Hormuz. Oil prices rose Monday, despite the lack of progress in diplomatic efforts to resolve the Middle East conflict. One of the traders stated that they were unsure how long the Mideast Crisis would last, and how much oil from Iran will be shipped out. Therefore, the Russian supply was the most reliable. The traders reported that ESPO blend cargoes delivered in October have been actively traded. Nearly all volumes were sold at a premium of around $1 per barrel to ICE Brent, based on the price paid by buyers for the cargoes to be delivered into Chinese ports. This compares?with cargoes for September delivery, which traded last month from a $1 per barrel discount to parity against ICE Brent. Last time ESPO Blend traded at a higher price than Brent was June. Two traders said that the strong?demand for Russian oil from Chinese refiners had pushed India out of the market. Two traders said that Indian refiners could not secure October ESPO allocations due to Chinese buyers snatching up all the available cargoes. According to traders, both China's independent oil refiners and major state-owned oil firms have been active buyers of ESPO blend cargoes. Reporting by Siyi Liu in SINGAPORE and Aizhu in MOSCOW. Additional reporting by Nidhh Verma in NEW DELHI. Mark Potter edited the article.
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NexGen Energy, a Canadian miner NexGen RPT, holds talks with BHP to seek $1 billion for its uranium project
Leigh Curyer, the CEO of NexGen Energy, said that it was "talking" and sharing information with BHP about its Rook I project in Saskatchewan. NexGen Energy, a Canadian uranium mining company, has started construction on what will be the largest uranium mine in the world. The company is looking to raise $1 billion of capital over the next nine-month period. The miner will consider financing options such as prepayment agreements with utilities, debt finance, and direct equity in the project. Curyer, when asked if NexGen was in contact with BHP regarding a possible equity partnership in Athabasca Basin, said that NexGen had an open dialogue. He also noted BHP's purchase of a large piece of land close to the Rook Project. "We always talk to them." Curyer said that they have a "very open" dialogue when it comes to technical information. He said BHP wanted to give their portfolio more weight in countries with stable political systems. Let's see what the future holds. Two sources with knowledge of the matter said that BHP's Business Development team dominated NexGen in the last year under the previous CEO Mike Henry. According to an investor, who refused to be identified due to BHP policy, Brandon Craig will also take a "really close look" at the uranium market. However he acknowledged that the "scale of the project was difficult". BHP declined comment. The demand for AI has risen dramatically, resulting in a huge expansion of data centres that are power hungry. This in turn increases the need for more generation capacity including nuclear plants. BHP produces around 5% of the global uranium as a by-product from its Olympic Dam Copper operations in South Australia. BHP had previously said that it would not expand further. At least two other miners, such as Denison or Paladin, are also advancing uranium mining in the Athabasca area. BHP is gaining a foothold in this region. BHP is currently building the largest potash mine in the world. According to Canada's Natural Resources Ministry, the Athabasca Basin has the largest and highest-grade uranium deposits in the world. The majority of uranium is exported by companies like Orano Mining and Cameco. NexGen's Rook Mine is expected to be in production by 2030. The market capitalisation of BHP has increased by C$9.68billion in the last year. Some investors have suggested that it now looks too expensive. Rook I is located in the heart of Athabasca,?and surrounds the Patterson Lake. It aims to become one?of?the world's biggest uranium producers. Kevin O'Leary, a Canadian actor and investor who hosted the ground-breaking on Thursday called the project "a great energy story." Canaccord, a broker, said that it expected the demand for uranium in 2035 to triple from its current level of 2025. (Divyarajagopal is in Athabasca Saskatchewan and Melanie Burton is in Australia. Caroline Stauffer, Chizu Nomiyama and Caroline Stauffer edited the article.
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Oil prices rise, bond yields increase as US-Iran ceasefire expires
Oil prices rose and bond yields increased, reducing the gains in stocks as Asian trading began on Tuesday. A truce between Iran and the United States expired and Tehran announced it would shift to a more "fully offensive" military posture. MSCI's broadest?Asia-Pacific?shares index outside Japan rose 0.8%. The South Korean KOSPI rose more than 3%, as Seoul's market returned from a holiday. The Nikkei fell by 0.3% while S&P500 e-minis futures were flat. The yield of the 10-year Treasury bond in the United States was up by 0.8 basis points at?4.728%. The 30-year counterpart was up 0.6 basis points at 5.3146%. This is the highest it has been in over a decade. Analysts at ING wrote that "typically, moves over 4.65% in the 10-year bond rate for the U.S. are followed by soothing words from the Trump administration. These usually focus on an imminent end to the Iran war." This time we are not hearing the same," they said. "In fact the latest indications point to no imminent resolution, as 'the shaky sixty-day truce? came to an end." The yield on the 10-year Japanese Government Bond rose by 2.5 basis points, to 2.945%. This is a record high for the past three decades. The S&P 500 fell 0.5% overnight on Wall Street while the Nasdaq Composite fell 0.3% as weak U.S. data, such as an unexpected decline in retail sales, led markets to reduce their bets that the Federal Reserve would soon increase interest rates. Westpac analysts said in a research report that "markets adopted a risk-off attitude as President Trump reaffirmed his disinterest in extending the ceasefire with Iran. With renewed 'tensions' in the Middle East, oil prices are rising and this is complicating sentiment." The U.S. Dollar Index, which measures the strength of the greenback against a basket six currencies, was trading?around a low of 99.527% for two months. The stalemate over Iran has refocused traders on global supply concerns. Oil prices rose by more than $2 Monday. Brent crude futures rose 0.2% to $91.06 per barrel as trading resumed in Asia. Gold rose 0.1% to $4,420.07 and extended recent gains for a third day in a row. Bitcoin was up by 0.1% to $64,398.48 while ether rose 0.3% to $1911.40. (Reporting and editing by Sonali Paul; Gregor Stuart Hunter)
Stocks and dollar drop after weak data, yields rise
U.S. stock prices ended lower on Monday, and the dollar hit a two month low against the Euro, as weak U.S. data, such as an unexpected decline in retail sales, led markets to reduce their bets about a Federal Reserve rate hike.
Thirty-year Treasury Yields, on the other hand, have risen to their highest level since 2007. This is due to concerns about the U.S. Fiscal Pathway combined with heavy AI related corporate debt issuance.
Investors waited anxiously for the quarterly reports of large retailers, including Home Depot, which is due to be released on Tuesday, as well as retail giant Walmart, which will be released on Thursday, in order to get information on the state of the U.S. consumers.
Phil Blancato is the chief market strategist of Osaic Wealth. He said that recent concerns about softer data had caused the market to be a little tepid.
Blancato said that August is a time when volume tends to be low, as many traders are on vacation.
Blancato stated that there is a combination of the summer doldrums and waiting for consumer data.
The Dow Jones Industrial Average dropped 0.51%. The S&P 500 fell 0.52%. And the Nasdaq Composite declined 0.31%.
The MSCI index of global stocks fell by 0.35% while the pan-European STOXX 600 Index declined by 0.22%. Stocks were also affected by uncertainty over the economic impact the Iran War, which began in early February.
Investors were telling themselves that wars will always end. David Morrison is a senior market analyst at Trade Nation. He said that no one had priced in the possibility of this war continuing as we near the end of the summer. The oil prices rose by over $2 on Monday, mainly due to investor concerns about global supply. This was fueled by the pessimism of investors regarding diplomatic efforts to end the war.
Brent crude rose 2.59% to $90.81 a barrel. U.S. crude gained 2.74% on the day. Dollar fell as traders delayed their expectations of the Fed's next moves. Last week's benign consumer and producer price data, which showed a slight increase in inflation, gave traders hope that the worst price pressures had passed, even though the uncertainty surrounding the war continues. Unexpectedly, retail sales dropped last month. This has led to concern that the U.S. may not be as resilient than previously believed.
The dollar index (which measures the greenback's value against a basket of currencies, including the yen, the euro and others) was down by 0.06% to 99.6. The euro rose 0.09% from $1.1579 to $1.1614. This is the highest since June 17.
The markets are now pricing in 35% of the chance that a Fed decision will be made next month. This is down from 55% about a week ago, and 69% of the odds for a Fed action by December.
Treasury yields gained, however, after the U.S. Government had to pay its highest rates ever for the sale of 30-year bond at an auction last week.
The yield on the benchmark 10-year U.S. notes increased by 2.79 basis points, to 4.724%. The yield on 30-year bonds rose 4.43 basis points, to 5.3103%. This is the highest level since 2007.
Three soft economic releases should have driven long-end yields down. The 30y bond auctions were held at the highest yields since 2001. And now, yields have risen even more. Anshul Pradoshan, Barclays Capital's analyst, wrote in a Monday note that the reason for this was a worsening fiscal forecast, AI-driven supply of corporate duration, and an increasingly price-sensitive customer base.
Spot gold increased 1.02%, to $4420.41 per ounce.
(source: Reuters)