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After US extended ceasefire with Iran, gold rises and oil falls
Gold prices rose?on?Wednesday as lower oil prices, following a U.S. extension of a?ceasefire with Iran?, eased concerns about inflation and high interest rates. As of 0225 GMT spot gold increased 0.9% to $4.755.11 an ounce after Tuesday's fall to its lowest level since the 13th April. U.S. Gold Futures for June Delivery gained 1.1% to $ 4,772.90. Hours before the ceasefire was due to expire, U.S. president Donald Trump said he would extend it indefinitely to allow for future peace talks. Trump's unilateral announcement was confusing, as it wasn't immediately clear whether Iran or Israel, the U.S. ally, would agree to extend a ceasefire that began two weeks earlier. According to Marex analyst Edward Meir, "the markets perceive that the crisis has de-escalated with this extension of the ceasefire." If the ceasefire is broken and hostilities are resumed, the dollar will strengthen and oil and interest rates will rise, which should put pressure on gold prices. After the ceasefire extension, stocks rose, the dollar weakened and oil prices fell. Inflation can be fueled by higher crude oil prices, which increase transportation and production costs. Gold is considered a hedge against inflation, but high interest rates make yielding assets more appealing, which reduces the appeal of bullion. Standard Chartered stated in a report that "price action is still at the mercy Middle East ceasefire headlines, and liquidity requirements." We continue to expect that (precious-metals) prices will recover, and in particular gold to retest records highs. Kevin Warsh, the Federal Reserve nominee to lead the central banking system, said that he made no promises about interest rate cuts to Trump. He was trying to reassure U.S. Senators who were weighing his nomination to the position of head of the central bank, that he would act independently from the White House and pursue broad reforms. Silver spot rose by 1.5%, to $77.84 an ounce. Platinum gained 1.5%, to $2,067.25, while palladium increased 1.8%, to $1,560.31. (Reporting and editing by Eileen Soreng in Bengaluru, Noel John)
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BHP completes its supply agreements with China and is now able to deliver iron ore.
The iron ore price ranged on Wednesday as the steelmakers restocked in a frenzy of activity before the holidays. BHP, 'the?world’s?third-largest supplier of iron ore, announced that it had completed iron ore contract negotiations with China Mineral Resources Group (CMRG), a state buyer. Last week, it was reported that CMRG lifted its ban on the procurement of the key ingredient for steelmaking from BHP following a visit by BHP's top executives. As of 0214 GMT, the most traded iron ore contract at China's Dalian Commodity Exchange was up 0.38% to 787 yuan (US$115.37) per metric ton. As of 0204 GMT, the benchmark May 'iron ore' on the Singapore Exchange had fallen 0.14% to $106.75 per ton. Analysts at Yongan Futures wrote in a report that "the term contract negotiations (between BHP & CMRG) have been finalised and bearish factors are largely priced in." Prices will stabilize in the near term as demand for the holidays is strong. Chinese steelmakers usually restock their feedstock before the May Day holiday, which is May 1-5. BHP expects seaborne iron ore demand to plateau over the next few decades, with a slight decrease in China being offset by growth in emerging markets and a recovery in Europe. Coke and other steelmaking materials, such as coking coal, have gained respectively 1.23% & 1%. The Shanghai Futures Exchange steel benchmarks moved sideways. Rebar gained 0.16%. Hot-rolled coils advanced by 0.3%. Wire rod grew by 0.03%. Stainless steel fell 0.33%. ($1 = 6.8218 Chinese Yuan) (Reporting and editing by Amy Lv, Tony Munroe)
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Term sheet shows that a Sinopec unit sold CATL shares worth $770 million.
A term sheet showed that a unit of Sinopec had sold 8.5 millions Hong -Kong listed shares of CATL on Wednesday for $770 million. The company was able to cash in on the soaring stock performance of the Chinese electric vehicle -battery manufacturer. The term sheet examined by revealed that Sinopec (Hong Kong), in an accelerated stockbuild, sold shares at HK$708 (US$90.41), a discount of approximately 3.8% from the closing price on Tuesday for Contemporary Amperex Technology Co Ltd (CATL). According to the term sheet, Sinopec also agreed to a 90 day lock-up period on its remaining CATL stake. According to the term sheet, Goldman Sachs is the only placing agent. Sinopec and CATL did no immediately respond to comments. The 8.5 millions shares sold represent approximately 5.5% of the Hong Kong shares issued by CATL. LSEG data revealed that Sinopec (Hong Kong), held a 9.45% share in CATL’s?Hong Kong shares. CATL shares listed in Hong Kong nearly tripled their price from HK$263 to HK$736 since May 2025. Its market capitalisation is now $304 billion after a 46.9% increase year-to date, according to LSEG data. CATL is the largest battery manufacturer in the world and supplies many automakers, including Tesla, BMW and Volkswagen. The?company raised $4.6 billion during its Hong Kong listing in that year. It was the largest listing in the world. Most of the proceeds were used to finance a battery factory in?Hungary, as part of their overseas expansion. In March, CATL announced a fourth-quarter profit and a full-year net profit for 2025 that exceeded market expectations. The timing, size, and structure of the deal are still being reviewed. ($1 = $7.8308 Hong Kong Dollars) (Reporting and editing by Christian Schmollinger, Muralikumar Aantharaman).
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Trump's Iran ceasefire extends to stocks, but the dollar is still in a shaky state
The dollar weakened on Wednesday after President Donald Trump announced that he would "indefinitely" extend the Iran ceasefire. This kept the mood upbeat, even though the Strait of Hormuz was still closed. Oil held onto its recent gains. Trump's unilateral announcement was confusing, as it wasn't immediately clear if Iran or the U.S. ally Israel would agree to extend a ceasefire that began two weeks earlier. The markets, however, remained steadfast in their risk-adjusted momentum. S&P Futures rose by 0.5%, while Nasdaq Futures gained 0.6% in early Asian hours. MSCI's broadest Asia-Pacific share index outside Japan slipped 0.14%, after hitting a seven-week-high in the previous session. Japan's Nikkei fell 0.2%, as traders tried to consolidate their recent gains. The markets have quickly recovered this month after a steep selloff due to the?war? in the Middle East. They are now back at their pre-war levels, as the prospect for a ceasefire and a peace agreement has helped boost risk sentiment. Matt Simpson, senior analyst at StoneX, said: "It seems markets were right in assuming that peak war uncertainty was behind us." The risk seems to be buoyant, and equity bulls are favourable towards dips. "The closure of the Strait of Hormuz has already been priced in." Trump stated that he would continue to blockade Iran's ports, shore and coast with the U.S. Navy. Tehran has closed the Strait of Hormuz, through which a fifth of the world's energy supply normally flows. This has caused a global shock. U.S. West Texas Intermediate Crude Futures rose 0.44% to $90.12 per barrel. The benchmark contract rose 2.8% Tuesday. The euro was last trading at $1.1748 during early trading. The dollar was slightly stronger at 159.26 yen, while sterling rose to $1.35195. (Reporting from Ankur Banerjee, Singapore; Editing and proofreading by Christopher Cushing).
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Exports from Japan grew 11.7% in March, thanks to a brisk market and higher prices
Data showed that Japan's exports increased for the seventh consecutive?month. This was boosted by a solid global demand, rising prices, and the fact that the Middle East conflict had no major impact on the country. Data showed that total exports by value increased 11.7% on an annual basis in March. This was higher than the median market expectation of 11%. The data revealed that exports to the United States increased by 3.4% from the previous year, and those to China rose 17.7%. Imports increased 10.9% from a year earlier in March, while the market expected a 7.1% rise. In March, Japan had a trade surplus of 667 bn yen, which is $4.18 billion, as opposed to the expected surplus of 1.1 trillion?yen. The closure of the Strait of Hormuz slowed down Gulf energy shipments and disrupted global supply chains. However, the higher export prices in Japan have helped the country's trade. Manufacturers are increasingly concerned about the rising energy prices, disruptions in oil supplies and other materials that could eventually drag down Japanese exports. In recent weeks, shortages of naphtha - a vital feedstock for petrochemicals - and other materials forced dozens companies to halt orders, despite assurances from the government that there were sufficient stocks. The Japanese economy continues to show signs that it is undergoing a modest recovery. This is supported by a firm business investment climate and robust exports. However, the growth momentum remains uneven due to external headwinds. Analysts warn of the impact that Middle East tensions and rising oil prices could have on the economy. They say they will increase import costs, and reduce household purchasing power. Bank of Japan will likely maintain its current interest rate stance at the next policy meeting, scheduled for next week, as a weaker yen, higher energy prices and a weaker yen adds to inflationary pressures, making it difficult for the central bank to strike a balance between price stability and economic growth. ($1 = 159.54110 yen)
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BHP says iron ore production in the third quarter rose, but maintains full-year forecast
BHP Group said on Wednesday that its iron ore production in the third quarter rose by 3%. The miner's outlook for the year was unchanged. In February and March, two tropical cyclones disrupted Port Hedland's operations, which is the largest iron ore hub in the world. This affected shipments of this key steel-making material. The largest listed mining company in the world said that iron ore production from its Western Australia mine operations was 69.8 metric tons on a 100 percent basis for the?quarter ending March 31. This is higher than Visible Alpha's estimate of 68.9 metric tons. Last year, 67.8 millions tons of?tonnes were produced. The price of the wet metric tonnage steelmaking ingredient has fallen by 2%, from $85.35 per metric ton for the last three months. The company stated that the 100% iron ore production guidance for fiscal 2026 from Western Australia operations remains at 284 to 296 millions tons. The quarterly copper production fell 7%, to 476.800 tons. This was due to a weaker performance by the Escondida? and Pampa Norte?operations. BHP has announced that it has completed iron ore contract negotiations with China Mineral Resources Group. Earlier this month, it was reported that CMRG (the state iron ore purchaser) had lifted the bans on the procurement of the?key ingredient for steelmaking from BHP. This ended a long-running dispute following a visit by BHP's top executives. Mike Henry, the outgoing Chief Executive Officer of GE Energy, said: "Our centralised purchasing capability and our low-cost operation have placed us in an advantageous position in the face of industry-wide pressures on the cost energy and consumables due to the conflict in the Middle East." BHP appointed senior executive Brandon Craig as its new CEO in March, ending Henry’s six-year tenure. Craig will take over the role on July 1. (Reporting by Sneha Kumar in Bengaluru; Editing by Maju Samuel)
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South32 reduces Australia's manganese forecast after wet season and cyclone impacts
South32 cut its full-year predictions for Australia's manganese after heavy rains during the wet season and Tropical Cyclone Narelle disrupted operations. Narelle forced the company in March to temporarily stop operations at its Gemco'manganese mining site in the Northern Territory, and evacuate all non-essential personnel from the mine. The diversified mining company now expects the fiscal '2026 production guidance to be 3 million metric tons of 'wet weight (wmt), a drop of over 6% from its previously announced guidance. Australia Manganese produced 589,00 wmt in the March quarter. This compares to no production a year ago, when the primary concentrater was paused because of?stockpiles built before the wet seasons. South Africa's production of manganese was 500,000 wmt in the third quarter, up from the 476,000 wmt that had been recorded the previous year, despite the fact that the operation underwent scheduled maintenance during the period. The combined'manganese production from its Australian and South African operations in the March quarter was 1.09 million Wmt, up from 476,000 Wmt?a year ago?but still missing Visible Alpha's consensus estimate of 1.25 Million wmt. (Reporting by Kumar Tanishk in Bengaluru; Editing by Maju Samuel)
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London military planners discuss the reopening of Hormuz
The British government announced that military planners from over 30 countries will meet in London for two days starting on Wednesday. They will discuss a mission to reopen the Strait of Hormuz, and develop detailed plans. Last week, more than a dozen nations said they would join an international mission led by Britain and France to protect shipping along the Strait of Hormuz, if conditions permitted. This commitment was made after 50 countries from Europe and Asia, as well as the Middle East, joined a videoconference to send a message to Washington following Donald Trump's statement that he didn't need any help. The British Ministry of Defence stated in a press release that the meeting scheduled for Wednesday would build upon progress made during last week's discussions. John Healey, UK's?defence Minister, said: "Today and tomorrow we must?translate diplomatic consensus into a plan that will safeguard freedom of movement in the?Strait, and promote a ceasefire lasting." I am confident that real progress will be made in the next two working days." The British government said that the talks would advance military plans for reopening the Strait of Hormuz when conditions allow, after a sustained ceasefire. Participants are expected to discuss military capabilities, control and command arrangements, and the deployment of forces in the region. (Reporting and editing by Andrew Cawthorne; Catarina demony)
Shell obstacle upsets Nigeria's quest to tempt financial investment
Nigeria's choice today to block Shell's $2.4 billion sale of its onshore properties has actually sent out a negative signal to financiers the nation urgently needs to strengthen its allimportant oil sector, analysts said.
President Bola Tinubu has actually been seeking with some success to charm foreign financial investment as Africa's most populous country grapples with a fiscal crisis.
However today the upstream regulator amazed many in the market by declining to approve Shell's $2.4 billion handle the Renaissance consortium, dominated by regional companies.
It did not offer reasons for its choice and Shell has yet to comment. The business has ties that extend back more than half a century and is among the most significant investors in Nigeria's. oil, which is the foundation of its economy and biggest foreign. currency earner.
A similar offer by Exxon Mobil to offer onshore assets to. Seplat Energy was approved this week, but just after a wait of. more than 2 and half years.
Clementine Wallop, director for sub-Saharan Africa at. political threat consultancy Horizon Engage stated the problem of. getting regulative approval encountered the president's mission. to win outside investment.
On the one hand, you have a government that states we're open. for service. We wish to improve the ease of doing business. We. want to engage with the world's biggest energy financiers, and on. the other hand, there have been these long hold-ups to the. approvals, Wallop stated.
The hold-ups have actually been an impediment to the success of the. Tinubu program's huge investment push. It has had an effect. outside the energy market too.
DOWN PATTERN
As Nigeria's economy has actually failed to recuperate from the shock of. the pandemic and its effect on oil demand, total foreign. financial investment inflows was up to $3.9 billion in 2015 from $5.3. billion in 2022, data from the National Bureau of Data. showed. That continued a downward trend that began five years. back when investors pumped in $24 billion.
The oil possessions Shell is offering are either producing below. capacity or not producing at all, however would be improved by. investment.
The federal government says boosting oil production - which stays. below 1.35 million barrels of oil daily (bpd) against a target. of 2 million bpd - would assist to reduce dollar scarcities.
The absence of foreign currency and plunge in the value of the. naira has led multinational companies beyond oil, including. Procter & & Gamble, GSK Plc and Bayer AG, to either leave Nigeria. or designate third parties to distribute their items.
MTN, Africa's greatest telecoms operator, and soap maker PZ. Cussons, on the other hand, have actually attributed losses to Nigeria's currency. crisis.
To get the much-needed investment, swifter regulatory. approval would help, experts state, although they also cite other. concerns, including power lacks and corruption that could be. more complicated to deal with.
I believe that the country requires to do more to draw in. financial investments in the (oil and gas) sector. One of such is. enhancing the speed at which regulative approvals are granted,. Ayodele Oni, energy legal representative and partner at Lagos-based Bloomfield. Law Practice stated.
Some financiers, nevertheless, are encouraged.
Kola Karim, CEO of power and energy group Coastline Energy. International, which has operations in Nigeria, said the possessions. purchased by Seplat were low hanging fruit which could rapidly be. turned around to enhance production.
He also stated executive orders, including one last month that. raised to $10 million the quantity oil firms can spend without. going to tender, would assist cut down timelines for projects.
For the first time in a very long time, there's a huge positioning. from government and the oil companies, Kola said.
(source: Reuters)