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Shanghai copper prices fall as caution tempers US/China trade optimism
The copper prices fell on Tuesday. The most traded contract on the Shanghai Futures Exchange dipped lower as caution continued to linger, tempered by the relief of a U.S. - China tariff truce. As of 0432 GMT the SHFE contract fell 0.3% to 77,790 Yuan ($10,818.89), while the London Metal Exchange's benchmark contract for copper rose 0.1% to $9.526 per ton. Industrial metals saw a surge in demand on Monday following the Sino-U.S. agreement to temporarily reduce tariffs. Chinese duties on U.S. imported goods will fall to 10%, from 125%. U.S. duty on Chinese imports will drop to 30%, from 145%. Copper prices reflected the fear that further negotiations would be a long and tedious process. "78,000 Yuan is not a low amount, and the remaining U.S. Tariffs on China's Exports are still high, even though they are better than the 145% tariffs that were previously in place," said a Beijing based metals analyst. He also mentioned the slower decline in SHFE copper inventory last week. SHFE copper stock fell 10% between the end of April and last week. This is less than the declines that were 23.5% in the previous two weekends. Other London metals include aluminium, which fell by 0.1% on Tuesday to $2477.5 per ton, zinc, which fell by 0.1%, and lead, up 0.3% at $1982.5, while nickel dropped 0.7% to 15520. Tin fell 1.2% to $22,200. The SHFE Nickel fell by 2%, to 123230 Yuan. Aluminium gained 1.1%, to 19,980 Yuan. Zinc eased by 0.6%, to 22,185 Yuan. Lead gained 0.2%, to 16,950 Yuan. Tin was unchanged at 261,030 Yan. Hongmei Li (Reporting and Editing)
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Delays in Store for Two Wells at Shell’s Perdido Development
Shell, the top U.S. offshore producer, said this week that two of its wells to boost production at the Perdido offshore development were delayed to the end of the year, while one was brought online in March.All three wells, part of Perdido's Great White unit, were originally expected to be online in April and set to produce up to 22,000 barrels of oil equivalent per day (boepd) at peak rates, expanding output from the platform.Perdido, which began production in 2010, has an output capacity of 125,000 boepd at peak rates. Shell is the operator of the field with a 35% working interest, while Chevron CVX.N and others hold the remaining stake.Shell in December had also announced plans to bring online two additional wells as a part of the Silvertip unit to boost Perdido's output. These wells are expected to collectively produce up to 6,000 boepd at peak rates, with first oil expected in 2026.(Reuters - Reporting by Arathy Somasekhar in Houston)
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Shanghai copper prices rise as caution tempers US/China trade optimism
The copper price ranged on Tuesday. The most traded contract on the Shanghai Futures Exchange - SHFE - was slightly lower as lingering caution tempered the relief of a U.S. - China tariff truce aimed to ease trade tensions. As of 0242 GMT, the SHFE contract had fallen 0.4% to 77,750 Yuan ($10,810.17) a metric ton. The London Metal Exchange's benchmark copper was unchanged at $9,521 per metric ton despite the trade agreement signed between Beijing and Washington. Industrial metals rose on Monday after the joint U.S. and China statement promising to reduce tit for tat tariffs over 90 days, as well as work towards ending their trade conflict. U.S. president Donald Trump has increased tariffs on Chinese imports to 145%. This is in addition to the duties imposed by the Biden administration and those he had imposed during his first term. Other London metals include aluminium, which fell by 0.1% on Tuesday to $2477 per ton, zinc, up 0.4% at $2691, and lead, up 0.2% at $1980. Nickel, however, dropped 0.4%, to $15,570. Tin fell 0.5% to $22,420. SHFE nickel dropped nearly 2%, to 123460 yuan. Aluminium gained 1.1%, to 19,975 Yuan per ton. Zinc was flat, at 22,235 Yuan. Lead gained 0.1%, to 16,940 Yuan. Tin fell 0.1%, to 260080 Yuan.
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Gold nears a more than one-week low following US-China trade truce
The gold price on Tuesday was hovering around a low of more than a week, which had been hit the previous session. A U.S. China agreement to temporarily halt tariffs reciprocally boosted risk appetite and diminished gold's appeal as a safe haven. As of 0309 GMT, spot gold remained unchanged at $3,230.99 per ounce. Bullion prices fell by 2.7% in the previous session. U.S. Gold Futures rose 0.2% to $3.235.20. After two days in Geneva of negotiations, the U.S. announced that it would reduce its tariffs on Chinese imports from 145% down to 30%, and China's duties on U.S. imported goods from 125% down to 10%. This led to an increase in global share prices. Last month, the U.S. imposed tariffs of equal value on China. This triggered a trade conflict. Tim Waterer, Chief Market Analyst at KCM Trade, said that the prospect of improved trade relations between two of the largest economies in the world has led to a rise in risk appetite as well as a decline in demand for safe havens. Waterer stated that "the dollar's consolidation has allowed gold to make a slight push higher". Federal Reserve Governor Adriana Kugler stated that the pause in import levies will reduce the chances of the U.S. Central Bank needing to lower interest rates as a response to a slowdown in the economy. Traders are waiting for the U.S. Consumer Price Index, which is due later today, to provide fresh information on the Fed's monetary policies. Markets expect a Fed rate cut of 55 basis points this year, beginning in September. In a low interest rate environment, gold, which is traditionally considered to be a safe haven during periods of economic and political uncertainty, thrives. Waterer stated, "I think that buyers will still be attracted to pullbacks on gold as economic and geopolitical risk haven't been completely eliminated." Citi forecasted a continuation of the short-term consolidation between $3,000 and $3,300, while downgrading the price target for the next 0 to 3 months to $3150. Silver spot rose 0.6%, to $32.78 per ounce. Platinum rose 0.8%, to $982.70. Palladium fell by 0.4% to $942.19. (Reporting and editing by Sherry Phillips in Bengaluru, Anmol Choubey from Bengaluru)
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Iron ore reaches 2-week high after China-US truce on trade, but caution limits gains
Iron ore futures prices reached a two-week high Tuesday, supported in part by a temporary U.S. China trade agreement. However, caution about a final agreement and a possible slowdown in near-term demand curbed gains. As of 0245 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 1.56% higher. It was 718 yuan (US$99.82) per metric ton. The contract reached its highest level since April 24, at 727 Yuan, earlier in the session. Iron ore benchmark June on the Singapore Exchange fell 0.45%, to $99.55 per ton after reaching its highest level since April 24, at $100.35. On Monday, the U.S. agreed to reduce tariffs on Chinese imports by 30% over a 90-day period of negotiation. China agreed to lower its duties from 125% down to 10%. This improved investor sentiment, which led to an increase in the number of investors. Price rally across commodities The initial excitement faded as the uncertainty of a final agreement between the two countries and the seasonal slowdown in demand led to concerns about a possible slowdown in ore demand over the next few weeks. Analysts at Shengda Futures wrote in a report that they expect the hot metal production to show signs of a slowdown in mid-to late May. Analysts at CICC say that the lower hot metal production is expected to coincide when miners increase shipments in order to meet quarterly targets. This will add downward pressure to prices. The hot metal product is usually used to gauge the demand for iron ore. On Tuesday, steel benchmarks at the Shanghai Futures Exchange increased. Rebar, hot-rolled coil, wire rod, and stainless steel all gained. Coking coal and coke, which are both steelmaking ingredients, fell by 0.74% and 0.622% respectively.
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Oil prices fall as rising supply concerns outweigh US-China trade relief
The oil price dropped on Tuesday, despite optimism about the pause in U.S.-China's trade war, after both countries temporarily reduced tariffs. Brent crude futures fell 22 cents or 0.3% to $64.74 a barrel at 0248 GMT. U.S. West Texas Intermediate crude (WTI), which is a blend of U.S. West Texas Intermediate and Brent crude, fell 18 cents or 0.3% to $61.77 per barrel. The benchmarks for both closed Monday with a 1.5% gain, their highest settlement since April 28. These gains are coming at a time when the global oil market is experiencing turmoil. Monday saw Wall Street stocks, crude oil prices and the U.S. Dollar surge sharply after the U.S.-China agreement to reduce steep tariffs. While a thawing of trade tensions between China & the US is beneficial, there is still a lot of uncertainty about what will happen in 90 days. In an email sent to clients, ING analysts warned that this uncertainty could continue to create headwinds for the oil demand. The dispute is not over, but the underlying issues that caused it remain. These include the U.S.-China trade deficit and U.S. president Donald Trump's demands for Beijing to take more action to combat the U.S. crisis of fentanyl. The markets also cited rising oil supplies as the main reason for the decline in oil prices. "Although demand has been a major concern for the oil markets, the supply increases from OPEC+ means that the market will be well-supplied through the rest of the year," ING analyst said. They added that the level of supply will depend on how long OPEC+ will stick to its plans for aggressive supply increases in May and Juni. Since April, the Organization of Petroleum Exporting Countries has increased oil production by more than expected. The May output is likely to be up by 411,000 barrels a day. Analysts' opinions on crude oil inventories are mixed. Walt Chancellor, Macquarie's energy strategist, expects U.S. oil inventories to increase by 7,6 million barrels. Reporting by Stephanie Kelly, Trixie Yap and Jamie Freed; Editing by Jacqueline Wong & Jamie Freed
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China stocks fall, Hong Kong falls as tariff optimism fades
China shares were flat on Monday, while Hong Kong stocks fell, as initial euphoria about a U.S. China trade agreement that would delay and reduce tariffs was replaced by growing caution due to the long negotiations to come. The agreement reached between U.S. officials and Chinese officials following weekend talks in Geneva exceeded market expectations, and led to overnight a strong rally on global markets. Investors are still concerned about the prospect of a lengthy negotiation process. Early morning trading saw the Shanghai Composite Index rise 0.2% and China's blue chip CSI 300 Index gain less than 0.1%. Hong Kong's Hang Seng China Enterprises Index fell 1.1% while the Hang Seng Index benchmark slid 1% from its six-week high. It might only be the beginning of an inevitable collision between the two biggest economies. "After enjoying a recovery, the markets may need to consider medium- to long-term risk," Ting Lu said in a Nomura note. After talks with Chinese officials at the Geneva International Conference, U.S. Treasury secretary Scott Bessent said that both sides agreed to a 90-day suspension of their tit for tat policies. Both sides announced on Monday that the U.S. would reduce its extra tariffs imposed on Chinese imports in April to 30%, from 145%. Chinese duties on U.S. imported goods will also fall to 10%, from 125%. Tariff relief has led to a 0.3% increase in the consumer electronics sector. Energy sector grew by 0.8%, and banking sub-index rose 0.7%. These are the main drivers of onshore markets. The rare-earths industry, which is strategically important but was not discussed in the trade negotiations, fell by 0.4%. China's stocks have recovered fully from the sharp drop last month that was caused by President Donald Trump's punitive measures regarding tariffs on "Liberation Day". The blue-chip CSI300 Index now trades 0.3% higher than its April 2, 2016 level - when Trump announced reciprocal duties. Kamil Dimmich is a partner and portfolio manager of North of South Capital's EM fund. He said: "We added to China in recent months, with the belief that the current tariffs will be reduced significantly over time." We are not in a hurry to add, but we remain satisfied with our exposures to China. There will likely be more ups and downsides in the weeks and months to come, so it may be a better time to add."
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Asian markets rejoice as US-China trade dispute pause boosts risk appetite
On Tuesday, Asian stocks joined a global rally. The U.S. Dollar held onto most of its gains as investors breathed a huge sigh after a temporary stop in the U.S.-China trade war eased fears of a worldwide recession. The Nikkei index in Japan rose by 2% to its highest level since 25 February. Taiwan, a country with a high tech component, also gained 2%. Chinese stocks were slightly higher at the start of trading. The broadest MSCI index of Asia-Pacific stocks outside Japan is now at its highest level in six months. After the U.S.-China agreement to reduce tariffs for 90 days, Nasdaq rose 4.3% and S&P 500 over 3%. The real victory here was the change in tone by both the U.S. The markets have reacted positively to words like "mutual respect" and "dignity", which are a departure from recent confrontational rhetoric. The U.S. announced it will reduce tariffs on Chinese imports from 145% to 30%, while China said that it would lower duties on U.S. imported goods from 125% to 10%, providing relief for the markets. However, concerns remain about the potential harm of tariffs on the global economy. After the announcement of the agreement, the U.S. Dollar surged against the Japanese Yen, Euro and Swiss Franc. However, on Tuesday morning, it was slightly weaker but still held on to its gains. Analysts have highlighted the uncertainty that is caused by tariffs still in place. Christopher Hodge is the chief U.S. economics at Natixis. He said that a de-escalation of tensions was inevitable. The tariffs are still going to be much higher than they were before and this will have a negative impact on the U.S. growth." The ratings agency Fitch estimates that the U.S. tariff rate has dropped to 13.1% from 22.8% before the agreement, but is still higher than 2.3% at the end 2024. U.S. INFLATION TESTS Investors will now focus on the details of the agreement, and what will happen after 90 days. But before then, the focus will be on U.S. Inflation data that will be released later on Tuesday. Matt Simpson, City Index's senior market analyst, said that if we were to receive another set of soft CPI numbers, traders could refocus their attention on Fed policy, including the possibility of cuts, and this would take some steam off the dollar's recovery. As a result of the shift in U.S. China trade relations, traders have reduced their bets on Federal Reserve rate reductions. They believe that policymakers will be less under pressure to lower interest rates in order to boost economic growth. The traders are now pricing in 57-basis-point cuts for this year. This is down from the over 100-basis-point reductions they were expecting during the peak of tariff-induced anxiety mid-April. The yields on U.S. Treasury bonds rose to an all-time high of one month on Monday, and they were still hovering around that level during early trading on February 2. The yield on the two-year bond was at 3.9873% while that of the benchmark 10-year bond was at 4.4512%. Bitcoin, the most popular cryptocurrency, fell 0.5% on Tuesday to $102,146 but still remained well above the $100,000 threshold it broke last week. Gold prices were stable on Tuesday, after falling 2% the day before as investors fled some safe havens. Oil prices also eased on Tuesday.
'The Corrupt Solar Job': Adani embroiled in United States findings of bribery scheme
Indian billionaire Gautam Adani has been indicted by U.S. prosecutors for conspiring with executives of a previously New york city noted company to develop a. $ 265 million plan to pay off Indian officials to increase their. solar power organization.
Adani and his executives have actually likewise been accused of making. false and deceptive declarations to investors and lenders in the. United States regarding the business's anti-bribery dedications. and practices while raising money from them.
Adani Group rejected the accusations as baseless, while. Indian government authorities haven't commented up until now.
Here is a summary of the examination and accusations. exposed in the U.S. indictment:
WHAT ARE THE MAIN ACCUSATIONS? U.S. prosecutors charged Gautam Adani, his nephew Sagar Adani. who is director at Adani Green, and six others in running an. declared bribery scheme related to renewable resource tasks in. India that benefitted the magnate's company and India's Azure. Power, which was noted on the NYSE until late 2023. In 2020, the indictment shows, executives of Adani Green and. Azure knowingly and wilfully conspired and accepted. corruptly deal, authorise and pay kickbacks to government. officials in India to obtain or retain business benefits.
Gautam S. Adani and seven other service executives. supposedly paid off the Indian government to fund rewarding. agreements, said FBI Assistant Director in Charge James E. Dennehy.
Adani Green on Nov. 27 stated Gautam Adani has been charged. on three counts in the criminal indictment for declared. securities fraud conspiracy, wire fraud conspiracy and. securities scams, however not the U.S. Foreign Corrupt Practices. Act.
In between 2021 and 2024, Adani raised more than $3 billion in. loans and bonds, consisting of from financiers in the United States. Gautam and Sagar Adani were taken part in the bribery plan. during a September 2021 note offering by Adani Green that raised. $ 750 million, consisting of around $175 million from U.S. financiers, the U.S. Securities and Exchange Commission said.
The Adanis previously this year made misleading declarations to. the general public, the Indian stock market and financiers regardless of. being warned of the U.S. examination in 2023, the. prosecutors declared.
HOW WERE ALLUREMENTS TRACKED, PAID?
Sagar Adani, executive director of Adani Green and nephew of. Gautam Adani, utilized his smart phone to track details of the. allurements offered to Indian officials, U.S. authorities declared.
In a meeting in between some Adani and Azure executives in. 2022, Gautam Adani comprehensive aspects of the bribery scheme. including steps he personally took to provide cash to federal government. officials, the U.S. authorities said.
Executives from Azure also prepared an analysis utilizing Excel. and PowerPoint to summarise the various methods which it could. repay Adani Green for the bribes it had paid to benefit both. business. For one of the projects of 2.3 gigawatts of power,. the kickback was computed at around $30,000 per megawatt.
One method discussed was to explain the payment internally at. Azure as a development charge, but it rather used another option. of getting Azure to transfer one of its projects to Adani in. lieu of part of the payment, U.S. authorities declared.
Azure in a declaration stated former officers of the company. referenced in the U.S. indictment were no longer connected with. the business, and the business continued to comply with U.S. authorities.
WHAT WERE THE POWER PROJECTS IN QUESTION?
U.S. authorities called the negotiations in their indictment. The Corrupt Solar Task.
In between 2019 and 2020, Adani Green and Azure were awarded. renewable energy tenders by Solar power Corporation of India. ( SECI), a federal government-owned entity.
U.S. authorities alleged Adani and others designed a plan. to pay off Indian state officials to enter into contracts with. SECI, which would benefit Adani subsidiaries and Azure.
Adani facilities in Rajasthan and Gujarat states in India. provided the power contracted in the Adani deals. One of those. marquee projects is the
Adani energy park in Khavda
, which the company states is the world's biggest renewable. energy project.
HOW DID U.S. FEDERAL AGENTS EXAMINE, SEIZE EVIDENCE?
In March 2023, FBI special representatives approached Sagar Adani. with information of the grand jury's ongoing examination into the. group and other entities. They took custody of electronic. devices in Sagar's belongings and served him with a search. warrant and grand jury subpoena.
The search warrant determined offenses, people and. entities under examination by the U.S. for offenses of the. Foreign Corrupt Practices Act, securities fraud, and wire scams.
WHAT'S NEXT FOR THE ADANI GROUP?
Adani Group in a statement said it would look for all possible. legal recourse. The grand jury in its order stated if any of the. executives were condemned of the charges they would have to. surrender any property or earnings obtained directly or indirectly. as a result of the offences.
Federal prosecutors have actually also released arrest warrants for. Gautam and Sagar Adani. The U.S. Securities and Exchange. Commission has
released summons
to Gautam Adani and his nephew Sagar to address the. accusations.
Gautam and Sagar have actually not been arrested and their. whereabouts are unknown, though they are thought to be in. India.
(source: Reuters)