Latest News
-
Investors pare back over-extended gains as copper prices fall this week
The market was expected to post a weekly decline on Friday as it pared gains that had been over-extended in the last few weeks, which were backed by concerns about supply. During the morning of trading, investors were searching for direction in the absence of macroeconomic and fundamental data. As of 0301 GMT the most traded copper contract at the Shanghai Futures Exchange rose 0.01% to 85,980 Yuan ($12,070.76) a metric ton, and was set for a weekly decline of 1.41%. The benchmark three-month price of copper at the London Metal Exchange rose 0.34% to $10,719 per ton. It is expected to finish the week with a 1.54% decline. Analysts at Sucden Financial wrote in a report that markets are struggling to establish a clear trend because there have been few fundamental updates. They said that this was particularly true for the copper market, which after falling from record highs faces contradictory signals: a tight supply on the basis but a weak fundamental demand. The October PMI manufacturing reading for China's top consumer missed expectations on Friday. Investors rolled back their overbought bets on Thursday, ending a four-day loss streak. Investors are looking for clues to the Federal Reserve's interest rate decision in December. Some Fed officials advocated for support of another rate cut. However, investors were unsure due to the lack of reliable data during the shutdown. Aluminium gained 0.60% among other SHFE base materials, while zinc increased by 0.53% and tin added by 0.31%. Lead and nickel did not change much. Aluminium, zinc, and lead all rose in price, but nickel and tin remained unchanged. Friday, November 7, DATA/EVENTS - (GMT) 0700 UK Halifax House Price MM,YY Oct 0745 France Total Reserve Assets Oct 1330 US Non Farm Payrolls Oct 1300 US Unemployment Rate October 1330 US Average Earnings Year Oct 1500 US U Mich sentiment Prelim Nov (1 = 7.1230 Chinese Yuan Renminbi). (Reporting and Editing by Harikrishnan Nair; Reporting by Dylan Duan, Lewis Jackson)
-
China's production cuts and soft steel demand will cause a weekly decline in iron ore.
The price of iron ore futures fell on Friday, and was set to fall for the week as a result of a weakening steel market and production cuts in China. By 0202 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange fell 1.16%. It was 766 Yuan ($107.54) per metric ton. The contract was expected to finish the week at a loss of 3.95%. On Friday, the benchmark December iron ore at the Singapore Exchange fell 1.79% to $102,05 per ton. The contract has fallen 3.9% this week. Analysts from ANZ said that in order to control deflation in China, the country has been focusing on eliminating overcapacity. The steel industry is a particular focus, as rapid capacity growth in this sector has impacted profitability. SteelHome data showed that blast furnace production was cut in North China, the region with the largest steelmaking industry. This led to a drop in steel production. Galaxy Futures, a Chinese broker, says that ore prices will remain low, as steel demand is expected to continue declining, due to the decline in consumption of real estate, infrastructure and manufacturing in the third quarter. The fourth quarter should not show any significant improvement, because the consumption of these sectors has declined on an annual basis. After the European Commission proposed last month that tariff-free import quotas for steel be cut by almost half, while the duty on steel imported outside of the quota be doubled to 50%, German Chancellor Friedrich Merz called on European patriotism in order to protect the EU’s steel industry. ArcelorMittal is the second largest steelmaker in the world. It beat earnings estimates for the third quarter, and provided a positive outlook to 2026. However, it noted that the overall demand was weak during the quarter, and there were few signs of restocking. Coking coal and coke, which are used to make steel, have gained 0.16% and 0.1% respectively. The Shanghai Futures Exchange saw a rise in most steel benchmarks. Rebar rose 0.43%; wire rod grew 0.06%; stainless steel grew 0.08%. Hot-rolled coils fell 0.06%. ($1 = 7.1230 Chinese yuan) (Reporting by Lucas Liew; Editing by Subhranshu Sahu)
-
Supply concerns weigh on oil heads as they suffer a second consecutive loss of production.
After three days of declining prices, oil prices rose on Friday on concerns about an excess of supply and a slowing of demand in the U.S. Prices appeared headed for another week of losses. Brent crude futures were up 21 cents or 0.33% to $63.59 per barrel at 0149 GMT. U.S. West Texas Intermediate Crude was up 22 cents or 0.37% at $59.65 per barrel. Brent and WTI will fall by about 2% in the coming week. This is a second consecutive week of declines as major producers around the world increase their output. Tony Sycamore, IG Markets' analyst, said that the price drop was primarily due to a sudden 5.2 million barrel U.S. stock buildup which reignited fears of oversupply. He added that "risk-aversion flows have boosted the dollar, and the U.S. Government Shutdown continues to cloud the economic activity." The Energy Information Administration reported on Wednesday that U.S. crude stock levels rose more than anticipated due to higher imports, reduced refining, and a decline in gasoline and distillate stocks. The oil prices were also influenced by the concerns over the economic impact of the longest shutdown of government in US history. Private reports indicate a weaker U.S. labour market in October, according to the Trump administration. Sycamore stated that WTI prices will be settled between $58 and $62 per barrel in the short term. The U.S. Government reopening in a week is a potential catalyst for the rally, but persistent buildups and weak demand will limit it. The Organisation of the Petroleum Exporting Countries (OPEC+) and its allies decided Sunday to slightly increase production in December. The group has also decided to pause further increases in the first quarter next year due to concerns about a glut of supply. Saudi Arabia, the world's largest exporter, has responded to OPEC+ by announcing its decision. Sharply reduced In December, the company set lower prices for crude oil for Asian buyers due to an oversupplied market. The sanctions imposed by the European Union and the United States on Russia and Iran also affect supplies to China and India, which are amongst the largest global importers. This provides some support for international markets. Gunvor, a Swiss commodity trader, announced on Thursday that it had withdrawn a proposal to purchase foreign assets from Russian energy company Lukoil. The U.S. Treasury had called Gunvor "Russia's puppet" and indicated Washington was opposed to the deal.
-
Tech stocks drop on a weekly basis due to a sour mood
Investors are uneasy with the pace of the artificial intelligence stock rally, and have shifted their focus to safer assets like bonds and the Japanese yen. S&P 500 and Nasdaq futures firmed up a bit in Asia's morning. However, overnight the Nasdaq fell 1.9%. The world's largest tech index has fallen 2.8% this week. If that trend continues, it would be the biggest drop in a single week since March. This is a shock for an juggernaut which had gained more than half its value from the lows reached when tariffs were first announced in April. In morning trading, Japan's Nikkei dropped 1.8%, resulting in a loss of 4.7% for the week, the biggest since late march. Meanwhile, in Seoul, the Kospi declined 1.4%, resulting in a fall of 3.3% for the week, its worst weekly drop since late mars. Softbank Group Corp, a tech investor, fell more than 20 percent this week. Chip and cable manufacturers were also among the worst performers. Bitcoin, which is sometimes used as a barometer for tech sentiments, has fallen 8% this week to $101,092. MOOD SHIFT The pullback of AI-related shares has not been triggered by any obvious event, but the reaction to recent results reveals that some fears are beginning to surface about the possibility of a bubble and profitability questions. Meta's stock plunged late last month after it revealed large capital expenditures as the company builds data centres to support its AI push. Palantir Technologies, a data and AI company, has also seen its shares fall despite exceeding earnings expectations. Herald van der Linde is the head of equity strategies for Asia Pacific, HSBC. "And another one says it. Then a third. A fourth person says that these three are all selling. It's possible that I am selling, too. It's just a change in market sentiment. This could be happening now." Overnight, the S&P 500 index closed down 1.1% and the Philadelphia SE Semiconductor Index fell 2.4%. BONDS, YEN HIGHER Bond markets rose on the back of a demand for safety, and as second-tier U.S. data indicated a wave layoffs which could support future rate cuts in the U.S. The benchmark 10-year U.S. Treasury rates fell 6.4 basis point overnight to 4.09%, after Challenger, Gray & Christmas, an outplacement firm, said that there was a spike in job cuts announced in October. These private surveys have attracted attention on the market, while the prolonged U.S. shutdown has stopped official U.S. data publishing. The dollar fell overnight by nearly 0.5% to $1.1546 a euro. The dollar was last, at 153.17 Japanese yens and 0.8069 Swiss francs. The pound soared after the Bank of England held interest rates, but the possibility of a rate cut in December limited gains. It traded at a slight discount to $1.3128 on the Asian market. Gold held steady at just under $4,000 per ounce. Brent crude remained at $63.64 per barrel. (Editing by Shri Navaratnam).
-
Australian shares flat as financials counter energy, real estate strength
Australian shares were little altered on Friday as gloomy performances in the financial sector following a disappointing profit half-year from Macquarie, a top investment bank, partially offset gains in local stocks in energy, real estate and healthcare. As of 2349 GMT the S&P/ASX 200 was flat at 8,826.80, and is on course for its second consecutive weekly loss if current momentum continues. Macquarie Group shares fell 5.5%, their lowest level in over five months. The lender missed expectations on its half-year profits due to a lacklustre commodity division. CBA, the top lender in Australia, lost 0.8% and ended a winning streak of two sessions during which they had gained 2.5%. Westpac shares also dropped 0.8%, after reaching a record-high on Wednesday. The broad financial index fell 0.6% on the Friday, but it was still on track to achieve its best performance for a week since late September. The benchmark index fell 1.4% following a poor close on Wall Street over night amid a sell-off in the tech sector. The shares of WiseTech Global, Xero and each other fell more than 1%. Rio Tinto, Fortescue and BHP all fell more than 1%. Rio Tinto was down by 0.2%, Fortescue by 0.5%, and BHP 0.5%. Gold miners recovered some of their losses by rising 1.1% on the back of a falling dollar, a surge in safe-haven demand and concerns about a long U.S. shutdown and the legality and legitimacy of tariffs. The shares of Northern Star Resources and Evolution Mining rose by 1.1% and 2.2%, respectively. The energy subindex rose by nearly 1%. Woodside Energy and Santos gained 1.6% and 0.6% respectively. The healthcare sub-index rose 0.6% while the real estate index climbed 0.4%. Qantas shares fell 4.1%, their lowest since mid-May. The Australian airline lowered its domestic unit revenue projection for the first half 2026. It also flagged an increase in fuel prices. The benchmark S&P/NZX50 index in New Zealand rose 0.4% to 13,625.29.
-
China's Vice Premier urges the end of trade barriers that are holding back green transformation
Ding Xuexiang, vice premier of China, called on fellow leaders to show "true multiculturalism" at the climate summit held in Brazil. Ding, via a translation, said: "We must strengthen international collaboration in green technology and the industry, remove trade obstacles, and ensure free flow of high-quality green products, to better meet global sustainable development needs." Ding told the official Xinhua News Agency on Friday that the developed countries must fulfill their obligation "to lead in emission reduction and honour their funding commitments", as well as provide more assistance to developing countries. He said that China was willing to work with other parties to "persistently encourage green and low-carbon development". In September, Chinese President Xi Jinping stated that China aimed to reduce its economy-wide greenhouse gases emissions by 7% - 10% by 2035 compared to their peak. He said that as part of China's national determined contribution targets by 2035, the country's consumption of non-fossil fuels will represent more than 30%. (Reporting from William James in Belem, and Farah Masters in Hong Kong. Editing by Brad Haynes & Michael Perry).
-
Safety fears hinder rescue efforts in South Korea after power plant collapse.
Fire and rescue officials reported that a worker died and six others remain trapped after a large structure collapsed at a South Korean power station being prepared for demolition. On Thursday afternoon, workers were removing parts of a massive steel structure that was a decommissioned heating system when it collapsed. The footage from the scene shows the structure toppled and mangled, surrounded by other structures. Kim Jung-shik, a fire official, told reporters that two people were rescued quickly and then another two were found under the rubble. He said that one worker died early Friday morning and another's condition was still unknown. Rescuers used heat sensors, remote scoping and search dogs to help locate other trapped workers. However, their efforts were hampered by a risk of further collapse, said he. The South Korean president Lee Jae Myung has called for a full-scale effort to rescue the trapped workers. (Reporting and editing by Ed Davies.)
-
France launches $2.5 billion initiative for Congo forest protection
A document seen by revealed that European nations have thrown their weight behind a plan worth $2.5 billion to save the Congo forest. This conservation scheme could steal some of the thunder from Brazil's flagship initiative for the COP30. The U.N. Climate talks are being held this year in the Brazilian Amazon to draw attention to the issue of emissions caused by rampant deforestation. The initiative, led by France, is called "The Belem Call to the Forests of the Congo Basin". It has the backing of Germany, Norway and Britain. The initiative's supporters hope to mobilize resources in order to protect the second largest rainforest on earth. Five European nations signed the document in French dated 6 November. The document stated that "the donors are... committing themselves to mobilize over $2.5 billion in the next five year period, on top of the domestic resources which will be mobilized for the protection and management of forests of the Congo Basin by Central African countries." Signatories also said that they aimed to assist African nations in reducing deforestation by using technology, training and partnership. The Congo, the Amazon, the world's biggest rainforest, and the Borneo-Mekong-Southeast Asia basin, the third-largest, all face threats from expanding farm frontiers, logging, mining, and other industries. The Congo's protection has attracted attention, as it absorbs more greenhouse gases net than any other forest. However, the timing was not in sync with Brazil's priority of a global fund for forests that is central to its COP30 agenda. The Brazilian President Luiz inacio Lula da So has hailed the Tropical Forests Forever Facility as the future of climate financing because it replaces grants by a more scalable model. A diplomat who is familiar with both initiatives said that "in theory, they are both very different." He noted that the TFFF offers annual payments without strings to rainforest nations. The source said that the two rainforest funds competing with each other may not be helpful. Norway The TFFF has pledged $3 billion On Thursday, the largest contribution to date was made. France has said that it will contribute up to 500 millions euros to the Brazilian initiative. Reporting by Lisandra paraguassu from Belem, and Simon Jessop from Sao Paulo. Editing by Brad Hayes and Diane Craft.
MORNING BID AMERICAS-Japan returns from upside-down world, AI fizzes
A take a look at the day ahead in U.S. and international markets from Mike Dolan
If simply 2 years earlier, you 'd thought of the day the Bank of Japan ended its unfavorable rate of interest period, you 'd probably not have put the yen near 34-year lows through 150 per dollar or the Nikkei stock index within 2% of record highs.
Here they are - and Bank of Japan policy rates are favorable again for the very first time since 2016 after the BOJ provided its very first rate hike in 17 years at Tuesday's meeting.
And it went huge in its taking apart of its extraordinarily easy money program - eliminating formal bond yield caps and purchases of stock funds.
Of course the relocation had actually been telegraphed for weeks, if not months, and just the timing was at concern.
And possibly the marketplace's eventual takeaway from the meeting was an emphasis on policy remaining accommodative with rates stayed zero as a fragile economic recovery maintains big rate gaps with other G7 countries.
The BOJ stated it will continue its JGB purchases at broadly the very same quantity as before - which pushed yields lower on the day - although it will downsize the maximum limitation of its purchases.
Still the possibility of additional walkings were left on the table. If trend inflation heightens a bit more, that might result in an increase in short-term rates, said BOJ Guv Kazuo Ueda said, without elaborating on the likely pace and timing of further moves.
And business invited the relocation, with the chair of Japan's. greatest company lobby Keidanren describing it as the. suitable policy choice at the appropriate time.
However with the long-awaited hike now out of the method,. dollar/yen rose to 150.62 - within 1% of 2022's peaks. And the Nikkei acquired 0.6% - about 1% from its record. high set previously in the month.
In the background, Australia's dollar compromised and. shares there ended greater as the Australian reserve bank. indicated greater confidence in inflation returning to its. target variety after leaving policy rates the same at 12-year. highs of 4.35%.
And naturally all now spins into the Federal Reserve's. two-day meeting, which kicks off later on Tuesday.
The rates and currency market state of mind is hawkish entering into the. Fed meeting, although there was some relief on Treasury yields. early Tuesday and spiky oil prices lessened a bit.
Thanks mainly to the yen swoon, the dollar was. greater across the board, hitting its greatest in practically three. weeks.
But despite the cloudy U.S. rates of interest image, the buzz. about expert system kept stock indexes buoyed.
Google's parent Alphabet jumped on a media report. that Apple remains in talk with build Google's Gemini AI. engine into the iPhone.
Nvidia shares added almost 1% as it started its. annual designer conference as investors waited on brand-new chip. statements from President Jensen Huang.
However Super Micro Computer, which joined the S&P 500. on Monday, quit earlier gains to close down 6.4%, making it. the greatest percentage decliner on Monday. The stock, which has. rallied furiously just recently on bets it would take advantage of AI, is. still up more than 252% for the year-to-date.
And in an excellent day for mega caps, even Tesla climbed up. 6%, leading S&P 500 percentage gains, after the electric. carmaker said it would soon increase the cost of its Design Y. EVs in parts of Europe.
The tech and megacap flurry disguised a bad session for. small caps, with the Russell 2000 ending down 0.7%. Key journal products that may provide instructions to U.S. markets later. on Tuesday:. - U.S. Feb real estate starts, Jan TIC data on foreign holding of. Treasuries; Canada Feb consumer price information. - U.S. Federal Reserve's Federal Open Market Committee starts. two-day policy conference, choice Wednesday. - United States Treasury auctions 20-year bonds, 12 month expenses
(source: Reuters)