East Asia

Chinese refiners are increasing their purchases of Brazilian crude and West African crude to reorganise their sourcing in response to tariffs and sanctions, as well as after the prices of Middle Eastern grades soared. The U.S.'s tougher sanctions against Russia and Iran, as well as China's new tariffs on U.S. crude oil imports in response to the duties imposed by Donald Trump have disrupted trading patterns and increased costs for world's largest crude importer. According to Vortexa analyst Emma Li, China's crude oil imports from Brazil could reach 3 million metric tonnes, or 800,000. barrels per day. This would be...

European futures reached record highs on Tuesday, as defence stocks soared amid expectations of a boost in spending. Meanwhile, Hong Kong shares were nearing three-year highs after investors celebrated the business leaders' meetings with President Xi Jinping. As expected, Australia's central banks began their rate-cutting cycle. The Australian dollar was supported at $0.6350, with a cautious approach to further easing. S&P 500 Futures rose 0.2%, while European futures gained 0.1%. Japan's Nikkei gained 0.5%, with shares in defence and bank stocks following Europe's rally. The pan-European STOXX 600 closed Monday 0.5% higher, as a gauge for defence and aerospace stocks...

European shares reached record highs on Monday, with defence stocks leading the way, as regional leaders demanded an urgent summit to discuss the Ukraine conflict amid increasing U.S. demands to increase military spending to ensure security. The pan-European STOXX 600 Index was up last 0.4% as a gauge for defence and aerospace stocks soared almost 4% in value to lifetime highs, after having more than doubled since Russia invaded Ukraine 3 years ago. Analysts have called this "supercycle" in the sector. It is expected that earnings will continue to grow in the defence industry due to the significant increase in...

European shares reached record highs on Monday, with defence stocks leading the way, as top leaders in the region called for an urgent summit to discuss the Ukraine conflict amid increasing U.S. demands to increase military spending to ensure security. The pan-European STOXX 600 Index jumped up to 0.4%. A gauge of defence stocks and aerospace stocks surged above 3%, reaching lifetime highs, after having more than doubled their value since Russia invaded Ukraine in 2013. Analysts have called this "supercycle" in the sector. It is expected that earnings will continue to grow in the defence industry due to the...

Wayne Cole gives us a look at what the future holds for European and global markets. The Asian share market has started the week on a positive note, despite a holiday that has reduced liquidity in U.S. stock markets. Hong Kong again led the charge, adding another 1.4% to last week's 7.5% jump amid optimism over potential low-cost AI application following the DeepSeek announcement. Goldman Sachs raised its outlook for Chinese growth and stocks. The firm argues that widespread AI adoption could increase earnings per share in China by 2.5% annually over the next decade. This would increase the fair...

Wall Street futures held steady on Friday. The U.S. Dollar fell, and global stock markets remained close to recent record highs as traders awaited developments on Ukraine and tariffs. Investors keep an eye on the news coming out of the Munich Security Conference. U.S. Vice-President JD Vance warned Russia to be prepared for sanctions from Washington if Moscow does not reach a peace agreement with Ukraine. He also urged Europe to increase its defence spending. Vance is Due to meet Ukrainian President Volodymyr Zelenskiy. The directive was issued by Donald Trump, who asked his team to devise plans for reciprocal...

Kojiro Higachi, the president of Tohoku Electric Power in Japan, said that Tohoku Electric Power should review its LNG procurement strategy if it is to stop buying from Russia. Under a contract that runs for 20 years, the utility will import 420,000 metric tonnes of LNG per year from Russia's Sakhalin-2 Project. Higuchi stated that this accounted for approximately 10% of the LNG produced by his company. He said at a press conference that "we must think about (our future procurement plans) assuming we will eventually stop purchasing from Russia." Later, the company stated that no decision had been made...

Asia's crude markets are quickly adjusting to the new sanctions imposed against Russia, grabbing cargoes as they come and looking for alternatives to deliver in the coming months. According to LSEG Oil Research, the top oil-importing continent Asia is expected to receive approximately 3.23 million barrels of Russian crude per day in February. India and China both bought less, but this is a decrease of 7.4% compared to January's 3,49 million bpd. In Asia, there are only two major buyers of Russian crude oil by sea, namely India and China. Myanmar does also take a small amount. LSEG expects India's...

The dollar and U.S. stocks rose after the data showed that consumer inflation increased more than expected in January, supporting Jerome Powell's statement that interest rates are not being cut. The Bureau of Labor Statistics of the Labor Department reported that its consumer price index increased at an annual rate of 3.3% in January. This was above expectations for a 2.9% increase. Market watchers and households alike are preparing for an increase in inflation as a result the U.S. President Donald Trump’s tariffs. After being mostly stable all day, futures on the S&P 500 index and Nasdaq fell sharply by...

Trade sources reported on Tuesday that Saudi Arabia's crude supply to China will decline in March compared to the previous month after the kingdom raised its prices to their highest level in over two years. A tally of Saudi Aramco's allocations to Chinese refiners revealed that the company will ship around 41 million barrels in March. This is down from 43.5 million barrels in February. This is the second consecutive month that Aramco has seen its allocation to China drop. The sources stated that Sinopec, a joint venture between Aramco and the Chinese state-owned company, and Aramco’s joint venture Fujian...

The dollar rose slightly after U.S. president Donald Trump warned about additional tariffs including those on steel and aluminum. Meanwhile, a global stock index shook off worries over more duties to advance. Trump told reporters aboard Air Force One that he will announce 25% tariffs on steel and aluminum imports to the U.S. on Monday, and other reciprocal tariffs shortly thereafter. China's retaliatory duties on certain U.S. imports will take effect Monday. There are no signs of progress in a new agreement between Beijing and Washington. The dollar index (which measures the greenback in relation to a basket of currency)...

Wayne Cole gives us a look at what the future holds for European and global markets. The week began with the now-common bang of President Trump using a scrum in front of the media on Air Force One, to announce 25% tariffs for steel and aluminum imports into America. He also promised more reciprocal tariffs by Tuesday or Wednesday. The new Chinese retaliatory duties on the U.S. also came into force at the same time. German Chancellor Scholz stated that the EU would be ready to respond "within one hour" to any levies. Investors have sold the usual suspects, with...

The industry ministry announced on Friday that South Korean officials had requested an exemption from the reciprocal U.S. steel and aluminum tariffs when they visited Washington this week. Park Jong-won led the first large South Korean delegation to visit Washington after U.S. president Donald Trump announced the sweeping tariffs. He argued that most tariffs have been eliminated between the two nations under their free trade agreements. South Korea, a major exporter in the world and a top trading partner of the United States has been increasingly concerned by Trump's actions. The ministry reported that Park praised South Korean investments in...

London copper prices eased on Tuesday, after U.S. president Donald Trump threatened to impose 25% duties on automobiles and semi-conductors, which could impact the metal's supply. The price of three-month copper at the London Metal Exchange slipped 0.3%, to $9.446 per metric ton as of 0156 GMT. Trump announced on Tuesday that he plans to impose auto import tariffs of "around 25%" as well as similar duties on pharmaceuticals and semiconductors. This is the latest of a series measures that threaten to disrupt international trade. Trump also said that tariffs for pharmaceuticals and semiconductors would start at "25% and higher"...

The copper price fell on Tuesday due to a stronger dollar and the uncertainty around talks to end Ukraine's war. The London Metal Exchange's (LME) three-month copper contract fell 0.1% at 1100 GMT to $9,389 per metric ton. On Friday, the contract reached its highest level in three months at $9.684.50. Tom Price, Panmure Liberum's head of commodities strategy, said that Trump policy is the dominant theme right now. U.S. officials and Russian officials held their first meeting in Riyadh on Tuesday to discuss ending the conflict in Ukraine. "The end of the war in Ukraine is more about energy...

Iron ore futures rose on Tuesday as expectations of a stronger stimulus package from China, the world's largest consumer, and improved downstream steel demand boosted sentiment. The May contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 2.51% higher, at 818 Yuan ($112.34) per metric ton. As of 0718 GMT, the benchmark March iron ore traded on Singapore Exchange recovered an earlier loss and jumped 1.18% to $106,95 per ton. Analysts in Shanghai and Singapore said that the volume of transactions for steel products in Hangzhou, east China, exceeded expectations. This boosted sentiment and sent ore...

The price of copper traded within a narrow range on Tuesday, as traders moved forward their positions in anticipation of a contract that expires this week. Meanwhile, the market's attention was shifted to U.S. efforts aimed at ending Russia's almost three-year long war in Ukraine. The London Metal Exchange's (LME) three-month copper traded flat at $9 398 per metric ton as of 0716 GMT. On Friday, the contract reached its highest level in three months at $9.684.50. A trader stated that "if the talks between the U.S.A. and Russia progress favorably, there will be an increase in the likelihood of...

The copper price fell on Tuesday, as traders moved forward positions in anticipation of expiry. Meanwhile, attention was focused on the U.S. effort to end Moscow's almost three-year conflict with Ukraine. The London Metal Exchange's (LME) CMCU3 three-month copper contract eased by 0.1% at $9,382 per metric ton as of 0140 GMT. On Friday, the contract reached its highest level in three months at $9.684.50. A trader stated that "if the discussions between the U.S.A. and Russia progress favorably, there will be an increase in the likelihood of lifting of the ban on metals from Russia, which would lead to...

BHP Group announced a 23% drop in its first-half profit underlying on Tuesday, as lower iron ore prices due to a slowdown in the Chinese real estate sector offset higher contributions by copper operations. Visible Alpha's consensus estimate was $5.01 billion. The largest listed miner in the world posted a profit attributable of $5.08 for the six-month period ending December 2024. The $6.57 reported last year was less. Iron ore, the company's biggest source of profit, saw its operating earnings fall 26%, to $7.2 billion, as prices fell from $103.7 per wet metric tonne (wmt), to $81.11 today. Copper operations'...

China's massive investment in mining in the Democratic Republic of Congo is paying off in the form of a surge in physical copper imports. In 2024, the Congo will increase its exports of refined copper by 71% per annum to 1,48 million metric tonnes. The Congo is the largest metal refiner in the world. Chinese operators dominate Congo’s copper belt, and the metal flow between the two nations is emerging as a structural change in the global marketplace. It is a risky one, however, as it could reduce the usefulness in reading China's pulse on copper imports to gauge Chinese...

Analysts predict that iron ore imports for China's top consumer in the first two months 2025 will decline due to tropical cyclones, bad weather and other factors affecting shipments from Australia, a major producer. Analysts said that imports of the main steelmaking ingredient are expected to be 10% lower in January and Febraury than the 209,45 million metric tonnes imported during the same period last. Kpler, a ship tracking service, estimates that Chinese iron ore exports in January and February were 191.7 million metric tons. This is a 10.4% drop year-over-year. In the first two months 2025, cyclones and bad...

Base metals prices rose on Friday, as investors expected that U.S. president Donald Trump's plans to impose reciprocal tariffs on global goods would not be implemented until April. Copper prices reached three-month highs. The price of three-month copper at the London Metal Exchange increased 1.3% by 813 GMT to $9,609 per metric ton, its highest level since November 8. The Shanghai Futures Exchange's most active copper contract gained 0.9%, to 78.090 yuan per ton ($10,719.97), the highest level since November 6. The premium of U.S. Comex Copper Futures over LME Contracts reached a new record earlier this week. The treatment...

Singapore iron ore prices rose on the Friday, and are on course for a weekly increase. This is due to increased concerns about supply disruptions caused by cyclones in Australia, a major producer. As of 0738 GMT the benchmark March iron ore traded on the Singapore Exchange had gained 0.46% to $106.95 per metric tonne, resulting in a 0.6% weekly gain. The contract reached a four-month peak at $108.8 per ton during the morning session. The world's biggest iron ore hub, Australia, prepared on Friday to face a powerful tropical storm, which forced the closure of major ports in the...

The demand for gold in India fell this week as prices reached a record-high, causing retailers to reduce their retail sales and force dealers to offer discounts. Meanwhile, the demand in China, the world's largest consumer, also declined after Lunar New Year. The consumer is not ready to pay prices that are unprecedented. "They need time to adjust to this price rally," Ashok Jain said, owner of Mumbai-based wholesaler Chenaji Narsinghji. This week, the domestic gold price reached a new record of 86 360 rupees per 10 grams. The price of gold has risen by over 12% in 2025, after...