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Australian shares fall after Q3 inflation data points to RBA rate holding next week
Australian shares fell on Wednesday, as banks continued to lose money and real estate stocks reversed their course. Local investors also sharply reduced bets that the central bank would cut rates next week following higher-than-expected third quarter inflation. By 0047 GMT the S&P/ASX 200 Index had fallen 0.6%, to 8,958.50 - below the psychologically important 9,000 point level. Early trade saw little change in the benchmark. The Australian Bureau of Statistics consumer price index (CPI), which measures prices for goods and services, rose by 1.3% during the third quarter. This was higher than expected at 1.1% due to rising housing and travel expenses. After the release of the data, the odds of a policy easing were significantly reduced. Investors now price in a 90% chance of the Reserve Bank of Australia holding the cash rate at 3.60%. Next week, on November 4, the RBA will decide on interest rates. The local stock exchange saw a drop of 1,1% in the banks, while the "Big Four' banks were down between 0,6% and 1,7%. Stockland Corporation, which is a peer company in the real estate sector, fell 2% and caused a 0.8% fall. The healthcare stocks dropped 2.6%. This was due to a drop of 4.8% in CSL shares, which fell for the second day running after the company announced on Tuesday that it would delay the U.S. separation of its Seqirus division. Iron ore prices rose following China's recent proposal to limit steelmaking capacity. BHP Mining rose by 0.7%. Woolworths shares rose 1.6% in the wake of an increase in sales for its first quarter, which exceeded market expectations. The benchmark S&P/NZX 50 Index in New Zealand rose 0.4%, to 13,462.37. (Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan Barona)
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Lynas, an Australian company, invests in a new Malaysian facility to produce heavy rare earths to meet the rising demand
Lynas Rare Earths, a company based in Australia, announced on Wednesday a new separation plant in Malaysia. The announcement came as the company noted a growing demand for rare earth oxides that are sourced from outside China. Lynas is the largest rare-earth manufacturer outside of China. The project will cost approximately A$180,000,000 ($116.96,000,000) and have the capability to separate up 5,000 tonnes of heavy rare earth feedstock per year. Amanda Lacaze, CEO of Lynas, said, "Market demand is high for heavy rare Earths and we can be selective about where and at what price we sell them." Lynas Mt Weld in Western Australia and other sources will provide feedstock. The company stated that the timeline for construction of the project is subject to approval by regulatory agencies. Lynas is in talks with a number of partners to ensure that it can offer a wider range of products for fair prices. The shares of the company continued to decline for the fourth session in a row, falling more than 1% at A$15.63 by 2345 GMT following reports of a potential delay in Chinese restrictions on rare earths.
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Australian shares fall as healthcare stocks drag down; inflation data is in focus
Australian shares fell on Wednesday as healthcare stocks lost ground to miners. Local traders were cautious in advance of the third-quarter consumer prices data due later that day. By 2330 GMT, the S&P/ASX 200 index had fallen 0.1% to 9,002.10 point. The benchmark index ended Tuesday 0.48% lower. Michele Bullock, Reserve Bank of Australia Governor, said after the bell Tuesday that an increase of more than 0.9% in core inflation for the third quarter would be a strong argument against a rate reduction at the Reserve Bank of Australia’s next meeting. Investors are now pricing in a 45.4% probability of a 25 basis-point rate reduction at RBA's next week meeting, before the release of inflation figures later on Wednesday. CSL shares fell 3.8% on the local exchange, for the second day in a row, after the company announced Tuesday that it would delay the U.S. separation of its Seqirus division. Banks fell 0.1%, with two of the "Big Four lenders" falling by around 0.4%. Commonwealth Bank of Australia (CBA) and ANZ Group, however, rose 0.3% and ANZ Group, respectively, 0.4%. Iron ore prices rose after China's recent proposal to limit steelmaking capacity. Rio Tinto (BHP) and Rio Tinto (Rio Tinto) both rose by 0.7%. Woolworths shares fell 0.3% in the company news after the firm reported a slight increase in its first quarter sales. Analysts at Jefferies noted that "the last six weeks of the Q1 weren't better than the first 8 weeks." The benchmark S&P/NZX 50 Index in New Zealand rose 0.4%, to 13,454.95 index points. (Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan Barona)
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US appeals Court revives $2.5 Billion opioid lawsuit in West Virginia
The largest drug companies in the U.S. won a trial in 2022, but the U.S. Court of Appeals reversed that decision. The 4th U.S. The 4th U.S. The 4th Circuit has reopened the case and said that the lower court must re-evaluate if the three drug companies are responsible for paying for addiction treatment and prevention in the city and the county, on the basis of their alleged failures to stop "suspicious", large orders from pharmacies. Cencora's spokesperson stated that the company is disappointed with the ruling, and they are considering their next steps. This could include a second appeal. Cencora says drug companies have to "walk a tightrope" between providing necessary medication and preventing diversion of controlled drugs. Cardinal Health declined comment. McKesson has not responded to comments immediately. Huntington Mayor Patrick Farrell stated that the city is looking forward to a chance to hold drug distributors responsible for "the devastating damage that they have done to our city and to far too many families". Distributors had agreed to pay as much as $21 billion in order to settle the thousands of lawsuits filed against them by local and state governments across the nation. Communities in West Virginia, which was hard hit by the opioid crisis, chose not to join the national settlement and instead sought a larger recovery. In 2022, U.S. district judge David Faber ruled in favor the three drug companies, concluding that West Virginia's law on "public nuisances" did not create any liability for companies who sold prescription drugs and that the companies had met their obligation to report suspicious orders of drug to U.S. regulatory agencies. The 4th Circuit reversed those findings. The appeals court determined that the three drug manufacturers shipped opioids to pharmacies repeatedly in quantities exceeding the distributors thresholds for "suspicious orders" without reporting to the U.S. Drug Enforcement Administration. According to the 4th Circuit, Cencora (formerly AmerisourceBergen) supplied 775 potentially suspect orders over a period of five years from a single Cabell County pharmacy, but only reported 16 orders to the DEA. Dietrich Knauth reported from New York, and Nate Raymond from Boston. Richard Chang and Aurora Ellis edited the story.
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Sources say that US officials meet with mining executives in Brazil to talk about rare earths.
The U.S. The U.S. According to anonymous sources, the meetings took place on the sidelines an event that was taking place in Salvador in the state of Bahia in the northeastern part of Brazil. Rare earths are expected to come up in the negotiations between Brazil and the U.S. aimed at removing the tariffs placed by President Donald Trump against Brazilian products. One source said that the discussions also show how the U.S. seeks alternative suppliers in the face of trade disputes with China which dominates rare earths markets. This source who was present at the meeting said that Escobar talked about partnerships between U.S. mining companies and Brazilian miners to explore rare Earths. Brazil is a country with vast mineral reserves, despite its small production. These minerals are vital for the manufacture of high-tech equipment. A second source confirmed that St George Mining of Australia, which operates a rare-earths project in Minas Gerais, was present at the meeting. Julio Nery of the mining lobby group Ibram confirmed that Escobar had met with representatives in the sector but refused to provide any details. "He has already met with Ibram at least three or four occasions and requested to meet with Raul Jungmann," Nery said, referring Ibram president Raul Jungmann. Reporting by Lisandra paraguassu from Brasilia, and Marta Nogueira from Rio de Janeiro. Fernando Cardoso wrote the article. Natalia Siniawski edited it.
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The long-stalled campaign to make daylight savings time in the US permanent has failed.
The U.S. Senate took up a long-stalled attempt on Tuesday to end daylight saving time and make it permanent, but failed to reach a consensus. Senator Rick Scott (a Republican) and other senators took the floor Tuesday to urge passage of the first unanimously-approved bill in March 2022. Senator Tom Cotton, however, said that he would be opposed to any attempt to speed up the bill. Congress has been debating the issue for many years. The issue was discussed in a hearing held earlier this year, and President Donald Trump supported the change. However, it does not seem to be any closer to an agreement. In the United States, standard time returns on Sunday.
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Stocks reach record highs on tech boost as Fed and earnings are in focus
The global shares rose to a record intraday on Tuesday, helped by signs that trade tensions have cooled between the U.S. The U.S. Federal Reserve will announce its policy on Wednesday, kicking off a week of announcements by central banks around the world, including those in Japan, Canada, and Europe. According to CME's FedWatch Tool, the Fed is widely expected at this meeting to reduce interest rates. Markets are pricing in a 99.9% probability of a 25 basis point rate cut. The markets have been boosted by expectations of a lower interest rate path from the central banks, as well as recent signs of an easing of trade tensions between China and the U.S. This has sent stocks higher, and kept the yield on the 10-year U.S. Treasury anchored near multi-month lows. The ongoing U.S. shutdown has also led to an absence of economic data that investors can parse. Investors have turned to other sources for information on the state of the economy due to the lack of official data. The ADP National Employment Report released its first weekly estimate on Tuesday. It showed that private payrolls in the United States increased by 14,250 jobs per week over the last four weeks. Subadra Rajappa is the head of U.S. Rates Strategy at Societe Generale, New York. She said: "Volatility was extraordinarily low, which in some ways, surprised me, but it appears to be very stable and you are seeing a continued rally in risky asset classes." "It's been difficult to read the economy, particularly for the Fed meeting. You have lower yields, a more favourable financial environment, a drop in inflation, and a somewhat stable job market." At their meetings, the European Central Bank (ECB) and Bank of Japan will likely keep rates largely unchanged. DOW LEADS GAIN AMONG MAJOR INDEXES Wall Street closed with another record. This was boosted by a 2% gain in Microsoft following a deal it made that allowed OpenAI to restructure as a public benefit company while giving the megacap a 27% share in ChatGPT. Also providing a boost was a 5% jump in Nvidia after CEO Jensen Huang said the artificial-intelligence chip leader will build seven new supercomputers for the U.S. Department of Energy, and the company has $500 billion in bookings for its AI chips. The Dow Jones Industrial Average rose by 161.78 points or 0.34% to 47,706.37. The S&P 500 gained 15.73 points or 0.23% to 6,890.89, and the Nasdaq Composite gained 190.04 or 0.80% to 23,827.49. Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage. He added that "enthusiasm" about Trump's Asian visit has also been expressed. Stocks have been rising as U.S. president Donald Trump and Chinese counterpart Xi Jinping meet to discuss a framework to halt the tougher U.S. trade tariffs and China’s export restrictions on rare earths. This could ease market concerns about escalating a trade war. This week, Microsoft, Alphabet Apple, Amazon, and Meta Platforms will report their earnings. Investors will be watching closely to see if the results justify high valuations. More than four out of five S&P companies beat expectations LSEG data shows that 86.7% of the 180 S&P companies who have announced earnings up to Tuesday morning have surpassed analyst expectations. MSCI's global stock index rose 21.18 points or 0.12% to 1,013.68. It had previously reached a record high of 1,015.73, while the pan-European STOXX 600 closed down 0.22%. The yield on the benchmark 10-year U.S. notes dropped 2.1 basis points, to 3.976%. The dollar index (which measures the greenback versus a basket currencies) fell 0.07% at 98.70. Meanwhile, the euro rose 0.11% to $1.1656. The dollar fell 0.52% against the Japanese yen to 152.07, after comments from a Japanese Minister and U.S. Treasury Sec. Scott Bessent helped ease some concerns over a more expansive fiscal policy and monetary policies in Japan. The value of the pound fell by 0.45%, to $1.3275. U.S. crude oil settled at $60.15 a barrel, down 1.89%, while Brent settled at $64.40 a barrel, down 1.86%. Investors weighed the impact of U.S. sanction on Russia's largest oil companies, along with a possible OPEC+ production plan.
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Utility Edison exceeds profits estimates with higher electricity rates
Edison International announced a higher-than-expected third-quarter profit on Tuesday as it benefited from increased rates for its service. Utilities can raise electricity rates by using general rate cases (GRC). Regulation utilities initiate the proceedings to request a rate hike based on their total costs of providing services and claim a revenue shortage. The U.S. power companies are looking to increase their customers' electricity bills in order to meet the rising demand for AI-focused datacenters, domestic manufacturing, and extreme weather conditions like wildfires. Southern California Edison (a subsidiary of Edison International) posted an increase in adjusted third-quarter profit, due primarily to the higher revenue generated by the 2025 General Rate Case Final Decision. Edison said that the Eaton Fire was confirmed by the Wildfire Fund Administrator as a "covered fire", making it eligible to receive financial assistance through the state-backed funds. The wildfires that have ravaged Los Angeles are expected to be one of the most expensive natural disasters in U.S. History. This has put the electric utilities in the area under increasing scrutiny. Southern California Edison reached an agreement with several intervenors in September to recover approximately $2 billion from the $5.6 billion losses attributed to 2017-2018 wildfires, mudslides and other natural disasters. Edison expects its full-year adjusted profit in 2025 to be between $5.95 to $6.20 a share. This is a significant change from the previous view, which was $5.94 to $5.34 a share. According to data compiled and analyzed by LSEG, the Rosemead-based utility reported an adjusted profit per share of $2.34 for the quarter that ended on September 30. This compares with analysts' estimates of $2.18. Sumit Saha, Bengaluru. Shilpa Majumdar, editing.
China stocks extend stimulus rally as rest of Asia has a hard time
Chinese stocks made vigorous gains on Wednesday, extending their stimulusfueled rally to a. second day, even as equities in the rest of the region had a hard time. and crude oil pulled back from a multiweek high.
The dollar dipped to a fresh one-month low versus the euro. and a 2 1/2- year trough to sterling after weak U.S. macroeconomic information over night enhanced the case for a 2nd. super-sized rate of interest cut at the Federal Reserve's next. conference. Gold restored an all-time peak.
Mainland Chinese blue chips advanced 2.4% as of. 0511 GMT, following a 4.3% dive in the prior session. Hong. Kong's Hang Seng climbed up 2%, contributing to Tuesday's 4.1%. surge.
The strong start for Chinese stocks quickly revitalized. other regional indexes, however those gains soon fizzled, with. Australia's criteria last flat and South Korea's Kospi. decreasing 0.1%.
MSCI's broadest index of Asia-Pacific shares outside Japan. was 0.9% greater.
Japan's Nikkei got rid of early weak point to increase. 0.4%, buoyed mainly by a stabilisation in the yen currency exchange rate. and Wall Street's rise to brand-new record highs over night.
S&P 500 futures pointed 0.14% lower, nevertheless.
Pan-European STOXX 50 futures sank 0.4%.
The People's Bank of China followed its statement of. wide-ranging policy relieving on Tuesday with a cut to medium-term. loaning rates to rely on Wednesday. Beijing's broad-based. stimulus - the greatest given that the pandemic - also consists of actions. to boost China's stock market and assistance for the ailing. property sector.
The debate remains intense on whether there are legs to. this rally, though the desk is seeing investors choosing to. buy/short cover initially and ask questions later on, UBS experts. wrote in a note to customers.
China's yuan enhanced to a fresh 16-month high, briefly. crossing the key 7-per-dollar level in overseas trading, in the past. pulling back to be flat at 7.0126 per dollar.
The yen was stable at 143.23 per dollar, after. earlier turning between moderate gains and losses.
Overall, the dollar remained on the back foot. The euro. added 0.14% to $1.11945 after earlier pressing as far. as $1.1199 for the first time considering that Aug. 26.
Sterling edged as much as $1.34165, and previously reached. a fresh high considering that March 2022 at $1.3430.
Overnight, data showed U.S. consumer confidence unexpectedly. fell to 98.7 this month from an upwardly modified 105.6 in. August. The decrease was the biggest considering that August 2021.
The odds on another 50-basis point Fed rate cut at the. November meeting jumped to 60.4% from 53% a day previously,. according to CME Group's FedWatch Tool.
On the other hand, Australia's dollar at first scaled its. highest because February of last year at $0.6908 but then slipped. back to sit at $0.68935 after inflation figures revealed some. cooling, potentially establishing an earlier rate cut by the. reserve bank.
The fall in the underlying steps of inflation is an. unanticipated and welcomed surprise, stated Tony Sycamore, an. analyst at IG.
Offered the cooling is duplicated in quarterly rate information. next month, it establishes a dovish pivot from the RBA, that will. result in a quarter-point rate cut in December, Sycamore said.
Gold increased 0.08% to $2,658.80 per ounce, and previously. marked a brand-new record peak at $2,670.43.
Brent crude futures slipped 13 cents to $75.04 a. barrel, however stayed near Tuesday's high of $75.87, a level. formerly not seen considering that Sept. 3.
U.S. West Texas Intermediate crude lost 19 cents to. $ 71.37 per barrel.
(source: Reuters)