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Trump approves coal mine expansion for Asia exports
The U.S. The U.S. The Montana-based company can now recover 22.8 million metric tonnes of federal coal, 34.5 millions of adjacent nonfederal coal as well as extend the life of its Bull Mountains mine for nine years. Interior Secretary Doug Burgum is also the co-chairman of Trump's Energy Dominance Council. He said that by unlocking more federally owned coal, it allows the U.S. a chance to strengthen ties with U.S. ally abroad. He said that President Trump's declaration of a national emergency in the energy sector allowed us to act quickly, reduce bureaucratic delays, and secure America’s future by ensuring energy independence and strategic trade. Signal Peak sent its initial plan to expand their mining operations to Office of Surface Mining Reclamation and Enforcement (OSMRAE) in 2020, but it is currently under federal review and subject to litigation. The Interior Department has completed the environmental impact assessment for the mine expansion in accordance with its new policy, which speeds up such reviews by a maximum 28 days. Burgum joined Energy Secretary Chris Wright, Environmental Protection Agency Administrator Lee Zeldin and Japanese and Korean officials in Alaska this week to promote an LNG and other energy exports destined for Asian market. The Bull Mountains Mine, located in Musselshell County and Yellowstone County, employs more than 250 workers, and supplies primarily Japan and South Korea. Environmental groups have attempted to block the expansion due to concerns over water consumption and greenhouse gas emissions. (Reporting and editing by Barbara Lewis; Valerie Volcovici)
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Gold drops as US job data clouds prospects for rate cuts
Gold prices slipped on Friday after a stronger-than-expected U.S. jobs report dampened hopes for imminent Federal Reserve rate cuts this year, while silver soared to its highest level since 2012. As of 10:45 am, spot gold was down 0.6%, at $3,333.69 per ounce. ET (1445 GMT), and has risen 1.2% in the past week. U.S. Gold Futures fell 0.6% to $3356.50. According to a report by the Labor Department, non-farm payrolls rose 139,000 in may, as opposed to estimates of a 130,000 increase, according economists polled. The unemployment rate was 4.2% in line with expectations. The data came in line with expectations, which is negative for gold, as it suggests that the Fed will stay on hold for some time, said Marex analyst Edward Meir. Based on the trading of short-term interest rate futures, traders are hesitant to make bets on a Fed third rate reduction by year's-end. Gold is a hedge for inflation and geopolitical unrest. Gold is less attractive as a result of higher interest rates, since it does not yield any return. There was little clarity on trade policy after the call between U.S. president Donald Trump and Chinese leaders Xi Jinping, which took place on Thursday. These are difficult negotiations that won't be resolved over the phone. Meir said that if the headlines on tariffs turn negative, it's good for gold. After hitting a record high of more than 13 years, spot silver dropped 0.3% to 36.04. Silver's gains "appear to have been driven by speculative flow, who saw it as way too cheap in comparison with gold. The break above the 35/oz mark amplify the move," Giovanni Staunovo said, an analyst at UBS. Palladium, meanwhile, rose 3.4%, to $1,039.78, the highest level since March 20, 22. Platinum also rose 3.4%, to $1168.72. Both metals are expected to see weekly gains.
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Copper prices rise in the near future due to falling LME stocks
Due to concerns about the near-term supply of copper at the London Metal Exchange, due to the falling stock levels in LME registered warehouses, contracts with shorter maturities have been priced higher than those with longer maturity. A month ago, the discounts on nearby LME copper against forwards with longer dates were converted into premiums as COMEX prices continued to be higher than those of the LME. The premium of cash LME copper over benchmark 3-month futures The price of a ton was $75 on Thursday, but it jumped to $93 at the close. This is the highest level in over two years. The discount was $63 back in early April. The backwardation is a sign of some sort of shortage. "Normally, it's in contango," explained Dan Smith of Commodity Market Analytics. The total copper stock in the LME's warehouse system has been reduced by half since mid-February, to 132.400 tons. This is the lowest level in nearly a year. The 54,600 tonnes of available stocks (those not marked for shipment) are the lowest level since July 2023. Alastair Muuro, Senior Base Metals Strategist EMEA at Marex, explained that the sharp movement in the spread was due to new cancellations of LME stocks. He said that the premium was lower on Friday because there were no new major cancellations of title documents, such as warrants. Stocks continued to leave LME registered warehouses. Recent mine supply disruptions, traders diverting metals to the U.S. and Washington's investigation into the possibility of tariffs on imports of copper are fueling fears. Despite the fact that there is not a dominant holder of LME copper warrants (0#LMEWHL>) ahead of expiration of contracts on Wednesday the third of each month, one party had more than 90% of cash copper contracts as of June 4, helping to maintain the premium. 0#LMEWHC> (Reporting and editing by David Evans; Polina Devitt)
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Fuego volcano in Guatemala spewing ash has forced more than 700 people to evacuate
Guatemala's Fuego Volcano emitted ash miles high into the sky on Friday, as authorities evacuated 700 people as a precaution. Seismology agency INSIVUMEH reported that a lava flow was forming around the crater, which is located about 18 km away from Antigua Guatemala. It added that some ash plumes could reach up to 5 km in the air. Authorities have warned of an increase in activity around the active volcanic cone this week. "We evacuated more than 700 people who spent the night in shelters." "We evacuated them out of caution," said disaster agency CONRED on Friday. It added that people had been relocated from nearby Escuintla and Sacatepequez, as well as Chimaltenango. In a Friday evening report, INSIVUMEH reported that a lava stream could be seen stretching for 1.2 kilometers. It said that "this continues to accumulate in a unstable manner around crater, and in the higher parts of the ravines which could collapse and lead to more pyroclastic flow". Fuego is well-known for its regular activity. Fuego's most violent eruption, in June 2018, killed over 200 people. The Central American nation has 37 volcanoes. Many of these are dormant, or even extinct. Reporting by Sofia Menchu; Writing by Aida Pelaez-Fernandez, Editing by Sarah Morland & Andrew Heavens
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Sinomine, China's copper smelter in Namibia is halted due to a global shortage of concentrates.
Sinomine Resource Group, China, announced on Friday that it had temporarily suspended copper smelting at its Tsumeb facility in Namibia. The group cited a shortage in concentrate due to a rapid expansion of smelter capacities worldwide. Sinomine acquired Dundee Precious Metals' Tsumeb Smelter in 2024, which is one of only a few facilities worldwide that can treat copper concentrates containing arsenic or lead. The smelter has the capacity to process up to 240,000 tons of copper concentrate per year. It previously processed metal from Chile, Peru, and Bulgaria. The global copper smelting industry has grown rapidly in the last few years. This has led to a rapid increase in production, which has outpaced demand for the metal, whose use has been boosted in recent times by its use in technologies that generate renewable energy, such as electric vehicles. Sinomine Tsumeb Smelter's CEO Loggan Lou stated in a press release that the increased smelting capacities in major copper producing regions have "resulted a substantial overcapacity". Lou stated that "this has caused a shortage in copper concentrate and placed pressure on smelters around the world, including Tsumeb." Sinomine plans on upgrading the smelter in order to commercially produce multiple metals and minerals. Sinomine announced in September that the Tsumeb Smelter contained 746 metric tonnes of germanium. This mineral is essential for chipmaking and other applications such as solar cells, infrared technologies, fibre optic cables and infrared technology. The smelter also explores the addition of germanium or zinc smelting to the smelter.
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Russia asks UN agency for help in solving the question of US fuel at Ukraine's nuclear plant
The U.N. nuclear watchdog was asked by Russia on Friday to mediate in the dispute between Moscow and Washington over the fate of U.S. fuel that is stored at an Ukrainian power station controlled by Russian forces. Russia wants to restart Zaporizhzhia, a nuclear power plant that was idled for many years. It is located near the front line of the Ukraine war and produced a fifth or more of Ukraine's electrical output. Fuel is just one of many issues that are preventing the restart. Rafael Grossi of the International Atomic Energy Agency said this week that it is currently impossible to restart the reactor due to the lack of stable electricity and water cooling. After meeting Grossi, Alexei Likhachev, the Russian chief of nuclear energy, said that Russia would be willing to either use the fuel supplied by the U.S. firm Westinghouse or remove it completely and return it back to the United States. In a televised comment, he stated that Westinghouse and U.S. Energy officials had raised intellectual property concerns in relation to the fuel issue with Russia. Grossi was quoted by the state news agency RIA as saying that the IAEA is willing to mediate. Both Russia and Ukraine accuse the other of bombarding Europe's biggest nuclear power plant, Zaporizhzhia, increasing the risk of an accident. Likhachev stated that Russia had prepared "a comprehensive plan" for a phased commissioning. However, it could only take place if all threats to the military were removed. In March 2022, Russia occupied the facility shortly after its troops invaded Ukraine to start the war. The facility has six reactors. The last one stopped producing electricity in September 2022. (Reporting and writing by Mark Trevelyan, Gleb Stolyarov and Maxim Rodionov)
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Copper edges lower on firmer dollar
Copper prices dropped on Friday, as the dollar strengthened against the yuan and continued withdrawals from warehouses registered at the LME, along with concerns over short-term supplies, capped the losses. As of 1058 GMT, the three-month contract for copper on the LME dropped 0.6% to $9685.5 per ton. The metal, which is used in construction and power, reached $9,809.5 on Thursday, its highest level in over two months. Nitesh Sha, a commodity strategist at WisdomTree, said that the U.S. Dollar is down a little bit today and this has pushed most base metals prices lower. Dollar index rose 0.3% making metals in U.S. dollars more expensive for holders other currencies. The yuan has fallen to a 2-year low in the world's largest metal consumer, China. Donald Trump, the U.S. president and Xi Jinping, the Chinese leader took part in a rare phone call between leaders on Thursday. Trump said later on social media that they had made a progress in matters relating to rare earth minerals. However, neither leader confirmed that the issue was resolved. Trump increased tariffs on imported aluminum and steel to 50% earlier this week. This is double the previous rate, which was 25%. After the announcement, the market's attention has been drawn to an investigation underway in Washington regarding copper imports. Shah stated that "the restart of trade talks between Trump and Xi on yesterday will likely take the edge off friction between the leaders and allow for lower copper tariffs when they are announced." The investigation led to an increase in the copper inventory at Comex's warehouses Since late February, stocks in LME-registered warehouses have dropped by 49%. Stocks in LME registered warehouses, on the other hand, have fallen by 49% over the same time period . Teck Resources, a copper miner in Chile, reported this week that production had been affected at two of its operations. Other metals include LME aluminium, which fell 1.2% to 2,448.5 per ton. Zinc slipped 0.8% to 2,662.5, lead rose 0.1% to 1,980, and nickel dropped 0.2% to 15,495. (Reporting from Ashitha Shivaprasad and Polina Devitt in London; editing by Barbara Lewis.
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Germany's Merz claims that some US legislators have 'no clue' about the scale of Russia's nuclear rearmament
The German Chancellor Friedrich Merz stated on Friday that some U.S. legislators do not understand Russia's rearmament program. This was a day following his meeting with U.S. president Donald Trump at the White House. Merz said at a Berlin business conference: "I spoke with senators from Capitol Hill, and I told them that they should look into the rearmament Russia has been doing." He said that the senators "clearly have no idea" what was happening in South Africa at this moment. Russia has moved defence factories to Round-the-clock Production Since the beginning of its full scale invasion of Ukraine in Febuary 2022, Russia has signed weapons deals with North Korea. This prompted European officials to warn Moscow could be soon in a position where it can attack NATO territory. Russia denies such an intention, and claims to be conducting a "special operation" (military action) in Ukraine for its own protection against what they portray as a hostile, aggressive West. Merz, the conservative leader who came to power in May, was the latest European leader visiting Trump to try to convince him that Ukraine must be defended against Russia's invasion, and NATO should continue to support Europe's security. Merz stated that he was reassured by Trump's words during their public meeting in the Oval Office. He cited the "resounding" no to the question of whether the United States planned to withdraw from NATO. Since the beginning of Russia's full scale invasion of Ukraine in the continent's most bloody conflict since World War Two, European countries have increased their defence spending. Merz has supported Trump's call for NATO to commit to an objective of more than double defence spending in the future to 5%. Trump welcomed this commitment on Thursday, and told Merz U.S. troops would remain in Germany. Merz stated on Friday that "whether we like it or no, we will be dependent on the United States...for a very long time." (Reporting and writing by Friederike Rinke and Andreas Rinke; Editing by Gareth Jones).
Wall Street holds Trump trade gains with stocks steady, Bitcoin at record high
Wall Street traders kicked off a busy week on Monday by holding on to gains from recently's stock rally, while oil prices decreased and bitcoin raced to a new record high. In U.S. equity markets, the Dow Jones Industrial Average rose 0.69%, to 44,293, the S&P 500 was little bit changed at 5,992 and the Nasdaq Composite fell 0.37%, to 19,215. Among the winners: Tesla acquired around 5.5% after touching $1 trillion in market value on Friday; crypto stocks such as Coinbase Global COIN.O, MARA Holdings MARA.O and Riot Platforms RIOT.O all rose up 20% or more; and huge banks Goldman Sachs and JPMorgan Chase included around 1.4%. Stocks head toward yearend on a solid footing, with the benchmark S&P 500 index up about 26% yeartodate as AI interest and the start of Fed rate cuts support an upbeat outlook.
Focus will be on U.S. customer price inflation information on Wednesday in addition to a raft of other data today for more indicators on the health of the economy and the outlook for interest rates.
The dollar traded not far from last week's four-month peak versus other major currencies, with a parade of Federal Reserve speakers likewise due to speak today, consisting of Chair Jerome Powell on Thursday. Republicans are edging closer to sweeping both chambers of Congress, taking the Senate on election night and with Edison Research forecasting it so far to have 214 seats of 218 needed for control of the House, compared to 205 for Democrats. Investors anticipate Trump's 2nd four-year term in office will bring equities-boosting tax cuts and looser policies. Scott Bessent, a hedge fund supervisor, Trump advocate and top competitor to be Treasury Secretary, wrote in an opinion piece on Sunday that rising markets were signaling expectations of greater growth, lower volatility and inflation, and a rejuvenated economy for all Americans. Trump's triumph and pro-crypto candidates being voted to Congress has pushed bitcoin to the brand-new all-time high above $ 84,000 stimulated on by expectations of a lighter regulatory environment. Europe's primary stock index logged its finest day in six weeks on Monday as the STOXX 600 added 1.13%. Defense stocks born down potential customers of greater military spending in Europe under a Trump U.S. presidency, with investors likewise awaiting secret economic information this week. The euro dropped to its most affordable level in 6-1/2 months versus the dollar on Monday as financiers fretted about possible U.S. tariffs that would harm the euro location's economy. The single currency was down 0.6% at $1.0651.
Lisa Shalett, chief financial investment officer for Morgan Stanley Wealth Management, wrote in a note on Monday that while equity investors have actually been bullish on the brand-new Trump administration, it's been less joyous for bond investors, with yields backing up sharply midweek over concerns around unfunded tax cuts and the inflationary effect of proposed tariff and migration policies.
U.S. bond markets were closed on Monday for Veterans Day.
DIVERGING FORTUNES
MSCI's gauge of stocks around the world was little bit changed. Hong Kong shares slipped to a three-week low as China's regional government debt-relief bundle fell short of investors' expectations for economic support, while a rally in semiconductor stocks pulled Chinese markets slightly higher. China's blue-chip CSI300 Index closed up 0.6%, led by a 6.8% jump in semiconductor stocks after Reuters reported the U.S. had ordered chipmaking huge TSMC to halt shipments of sophisticated chips to Chinese customers.
Financiers figured that would encourage authorities to support China's market and bought shares in local makers, sending Semiconductor Production International Corp. stock up 4.7% to a record high. Japan's Nikkei closed up 0.08% as gains were topped by. domestic firms' weak outlook projections.
China's National People's Congress Standing Committee. unveiled a 10 trillion yuan ($ 1.39 trillion) financial obligation package on. Friday to alleviate city government funding stress and support. flagging economic growth.
However, the stimulus steps did not have the direct injection of. cash into the economy that some financiers had actually wished to see,. especially in the middle of the hazard of enormous tariffs under the. incoming Trump administration.
Gold fell 2.65% to $2,611 an ounce, hanging back. from last month's record high of $2,790.15. Oil costs continued to fall on the expectation that Trump's. pro-drilling rhetoric will increase world supplies.
U.S. crude fell 3.18% to $68.14 a barrel and Brent. was up to $71.80 per barrel, down 2.8% on the day.
(source: Reuters)