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Oil prices jump after Russian sanctions; stocks and US yields inch up
The oil prices rose by about 5% after Washington imposed new sanctions against major Russian companies for the war in Ukraine. Major stock indexes also edged up as gains from U.S. energy stocks and European energy shares offset some disappointing earnings reports. The sanctions were announced late on Wednesday and targeted major Russian suppliers Rosneft, Lukoil. The U.S. announced it was ready to take additional action, as it urged Moscow to immediately agree to a ceasefire. Energy was the leading sector to gain on Wall Street, according to the S&P 500 index. Energy was the last sector to gain 1.2%. Stocks were also supported by a number of positive earnings reports. International Business Machines' shares dropped 3.7% as the company reported a slowdown of growth in its cloud software segment. Tesla shares were also down 2.5%, after the electric car maker extended its streak in which it missed profits to a fourth-quarter late on Wednesday. "In general the (stock market) is responding to earnings which are for the most part continuing to be good. The market is also applauding Trump's severe sanctions against major Russian oil companies. "You can see it in the energy industry," said Peter Cardillo. Chief market economist at Spartan Capital Securities, New York. The Dow Jones Industrial Average increased 15.86 points or 0.03% to 46,606.27. The S&P 500 rose 20.19 points or 0.30% to 6,719.59, and the Nasdaq Composite gained 111.44 or 0.49% to 22,851.83. The MSCI index of global stocks rose by 2.24 points or 0.23% to 993.01. The pan-European STOXX 600 rose by 0.35%. Chinese stocks ended up 0.3% after recovering from a drop of 1.1%. Sources said that the White House is considering a plan of reducing software exports to China as a retaliation to Beijing's recent round of export restrictions. After the latest Russia sanctions, oil futures became a hot topic. The European Union approved the 19th set of sanctions against Moscow, which included a ban on Russian gas liquefied imports. Last week, Britain imposed sanctions on Rosneft & Lukoil. Brent crude rose 4.89% to $65.65 a barrel. U.S. crude gained 5.2% on the day. U.S. Treasury Yields rose as well following the news of sanctions, and investors prepared for Friday's key inflation reading in the United States. The benchmark 10-year Treasury yield in the United States rose 3.3 basis point to 3.986%, after reaching a session-high of 3.997%. Geopolitical risks have renewed the demand for safe-havens After its recent strong rally, spot gold rose 1.28% to $4,146.01 an ounce. Spot gold increased 1.28%, to $4146.01 per ounce. Investors' firm belief that the Federal Reserve is going to continue cutting U.S. rates of interest helps to ease some of the tensions over geopolitical hotspots and trade conflicts. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) rose by 0.05%, to 98.98. In recent months, the index has been moving higher as investors are more confident that the Fed will protect the economy.
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Gold prices rise on renewed geopolitical risk; US inflation data is in focus
After two sessions of declines, gold prices jumped over 1% Thursday as investors awaited Friday's key U.S. Inflation data. As of 11:05 am, spot gold was up by 1.4% to $4,149.39 an ounce. ET (1505 GMT), following a fall to a nearly two-week low during the previous session. U.S. Gold Futures for December Delivery climbed 2.5%, to $4.165.80 an ounce. The prices reached a record-high of $4,381.21 in the first session, but then experienced their steepest fall in five years during the second. This year, the value of gold has soared. All the fundamentals that drove gold higher in this year are still very much present. "There was some opportunistic purchasing on the dip, and perhaps an uptick in geopolitical and trade tensions which are driving today's bid," Peter Grant said. The gold price has risen by 57% in the past year. This is due to geopolitical tensions and economic uncertainty as well as central bank purchases. U.S. president Donald Trump imposed sanctions against Russia on Wednesday, the first in his second term. The oil companies Lukoil & Rosneft were targeted. In response to Beijing’s recent restrictions on rare-earth-exports, the administration is also examining a plan that would restrict a wide range of software exports to China. The Federal Reserve is now focusing on the U.S. Consumer Price Index report due out Friday, which could be its clearest inflation signal before next week's policy meetings. Data is expected to indicate that core inflation remained at 3.1% in the month of September. The markets have already priced a rate cut of 25 basis points, and another in December. In low-interest rate environments, gold, which is a non-yielding investment, tends benefit. JP Morgan predicted that gold prices would average $5,055/oz in the fourth quarter 2026. This was based on an assumption that central bank purchases and investor demand will average 566 tonnes each quarter. Silver spot rose by 1.5%, to $49.25 an ounce. Platinum gained 0.1%, to $1.623.99. Palladium increased 0.8%, to $1.470.71.
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The victim of the Valencia floods is found buried in mud
Authorities said that the body of a 56 year-old man was found buried under mud, a full year after he had been swept away by deadly flash floods. On October 29, last year, floodwaters inundated homes, underground parking lots and vehicles near Valencia, Spain's 3rd largest city. A local court in Catarroja, one of the worst-hit towns by the flooding, confirmed that the man was among three unaccounted for people who had been declared dead. The man was found on Tuesday, during earth-moving activities in the town Manises. This is about 40 km (25miles) downstream of Pedralba where he had gone missing. In Spain, when a body is discovered, a judge will be called. The same court is conducting a judicial inquiry, under the supervision of Judge NuriaRuiz, into the delays in responding to the flooding, which ranks among the worst natural disasters Spain has ever experienced. The Valencia regional government sent a text message warning people to seek shelter when many buildings had already been submerged and people were drowning. The court summoned on Thursday a journalist from Valencia who had lunch that day with the conservative regional leader of Valencia, Carlos Mazon. (Reporting and editing by David Latona, Andrew Heavens and Emma Pinedo)
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Kuwaiti Minister: OPEC is ready to increase oil production if necessary after US sanctions against Russia
Kuwait's Oil Minister said that OPEC was ready to increase production by rolling back further its oil output reductions if necessary to address the market shortages following new US sanctions against Russian oil majors. In a dramatic policy shift, U.S. president Donald Trump has targeted Russia's two largest oil companies: Lukoil and Rosneft. This is the most aggressive action Washington has taken against Russian business since Moscow invaded Ukraine. The news that India was considering reducing its Russian imports also caused the global oil price to rise by 5%. In response to a query, Kuwaiti Minister Tariq al-Roumi stated: "I anticipate that any decision to implement sanctions will have a positive effect on prices." Al-Roumi said that the sanctions will likely lead to a shift of demand from the Gulf region and Middle East. "We're seeing signs," he said. Kuwait is one of seven OPEC+ members that has gradually increased oil production after years of cutting to support the market, under an agreement between the group consisting of the Organization of the Petroleum Exporting Countries (OPEC) plus Russia and other smaller producers. The group that pumps half the oil in the world has changed its course to regain market shares this year. Trump also demanded OPEC to pump more oil to keep gasoline prices down. This year, it increased its oil production targets by over 2.7 million barrels per day (bpd), which is equivalent to 2.5% of the global demand. OPEC+ announced at its October 5th meeting that it would increase oil production from November by 137,000 barrels a day (bpd).
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Valero Energy's profit beats expectations for the third quarter on higher margins
Valero Energy, a U.S. refiner, beat Wall Street's expectations for the third quarter profit on Thursday. This was due to a rebound in refinery margins as well as record refinery output in the Gulf Coast region and North Atlantic. In premarket trading, shares of the company rose by 3% to $166.51, kicking off the earnings season in the United States. After two years of record profits, the refining margins recovered in 2024 from their multi-year lows, as supply shortages linked to geopolitical tensions with Ukraine supported higher pricing. U.S. refinery profit margins measured by the 3-2-1 Crack Spread In the third quarter, grew by an average of nearly 29% from a year ago, mainly due to strong margins for diesel and gasoline amid low inventories. Valero CEO Lane Riggs stated that the company achieved refinery utilization of 97%. Refineries in the Gulf Coast region and North Atlantic region set all-time records. Wall Street analysts stated that Valero exceeded expectations in its refining operations. They also said the company is well positioned to profit from widening crude differentials and strong margins, as product markets are expected to remain tight. The average volume of barrels produced by the company increased to 3.1 millions barrels per day during the third quarter from 2.9million bpd one year ago. Valero’s refining profit per barrel throughput increased by over 44% in the third quarter to $13.14, compared with $9.09 one year ago. The operating income of Valero’s ethanol division increased by over 19%, reaching $183 million in the third quarter. The renewable diesel segment reported a loss of 28 millions compared to a profit a year ago. According to LSEG, the company reported an adjusted profit per share of $3.66 for the three-month period ended September 30. Analysts had expected $3.05. Reporting by Vallari Shrivastava from Bengaluru, and editing by Krishna Chandra Eluri
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Singapore firms target South Africa amid global trade shake-up
This week, a delegation of Singaporean firms is visiting South Africa to explore partnership opportunities in manufacturing, logistics and consumer goods. Trade between the two countries has almost doubled in the last four years. Enterprise Singapore, Singapore's agency for trade and enterprise, stated that this mission was part of the Scale-Up Programme and aimed to link participating firms with South African counterparts, and potential partners, in a variety of sectors including agriprocessing and industrial supplies. "South Africa is already a close partner of Singapore, and there are many Singaporean firms operating in South Africa," Rahul Ghosh said on Thursday. He was the director for Enterprise Singapore Middle East and Africa. "In the longer term, this will lead to Singaporean businesses unlocking opportunities for South African business for win-win results, which is particularly important at this critical junction of global trade uncertainty and investment." REDRAWING GLOBAL TRADE ROUTES The visit coincides with the redrawing of global trade routes due to shifting tariff regimes, supply-chain disruptions and other factors. Countries are now forging new partnerships or strengthening existing ones to gain access to markets and raw materials. The delegation is made up of steel infrastructure specialist Mlion Corporation as well as car leasing firm Lumens and snack manufacturer Cocoba. Meetings with local and regional major players are being planned, including Tolaram Group, Denmark-based FLSmidth and Tolaram Group, to discuss possible collaboration and investment. Ghosh stated that manufacturing, agriprocessing and logistics were identified as priority industries. Official data show that the trade in goods between Singapore, South Africa and other countries reached $1.4 billion by 2024. This is almost twice as much as what was recorded in 2010. Colleen Goko is the reporter. (Editing by Anathi madubela and Mark Potter.
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Gold prices rise on renewed geopolitical risk; US inflation data is in focus
After two sessions of declines, gold prices rose by over 1% Thursday as investors awaited Friday's key U.S. Inflation data. As of 09:21 am, spot gold was up by 1.2% to $4,143.80 an ounce. ET (1321 GMT) after falling to near a two-week low during the previous session. U.S. Gold Futures for December Delivery climbed 2.3%, to $4.160.50 an ounce. The prices reached a record-high of $4,381.21 in the first session, but then experienced their steepest fall in five years during the second. This year, the value of gold has soared. All the fundamentals that drove gold higher in this year are still very much present. "There was some opportunistic purchasing on the dip, and perhaps an uptick today in trade and geopolitical conflicts fostering that," Peter Grant said. The gold price has risen by 57% in the last year due to geopolitical tensions and economic uncertainty. Central bank purchases have also been sustained. U.S. president Donald Trump imposed sanctions against Russia on Wednesday for the first times in his second term. The sanctions targeted oil companies Lukoil, and Rosneft. In response to Beijing’s recent restrictions on rare-earth-exports, the administration is also considering a proposal to limit a wide range of software exports to China. The Federal Reserve is now focusing on the U.S. Consumer Price Index report due out Friday, which could be its clearest inflation signal before next week's policy meetings. Data is expected to show core inflation at 3.1% for September. The markets have already priced a rate cut of 25 basis points, and another one is expected in December. In low-interest rate environments, gold, which is a non-yielding investment, tends be to gain. JP Morgan has forecast that gold prices will reach $5,055/oz on average by the fourth quarter 2026. This is based on an assumption that central bank and investor demand will be around 566 tonnes each quarter. Other metals rose in price: spot silver increased 1.6% to $49,29 an ounce; platinum increased 1.2% to $1640.61 while palladium dropped 0.1% to $1457.08.
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Canada retail sales in August grew by 1.0%, but declined 0.7% from September
Data from Canada's National Statistics Agency showed that retail sales in Canada rebounded during August, as consumers increased their spending on new cars, supermarkets, and clothing, among other things. Statista Canada reported that retail sales increased by 1% in August to C$70.40 Billion ($50.20 Billion) from a downwardly revised 0.7% drop in July. A preliminary estimate of September sales showed a likely decline of 0.7%. Analysts polled had predicted retail sales growth of 1.3% in August, excluding automotive and part sales. StatsCan's data shows that sales increased by 0.7% excluding the automotive category which accounts for as much as 28% of total retail sales. It said that the volume of retail sales for each month also saw a similar gain of 1%. Retail sales, including domestic sales of furniture, food and gasoline, and many other items are considered a early indicator of gross national product growth, and contribute approximately 40% of total consumer spending. Retail sales are closely monitored by economists and analysts to determine the state of the economy. In August, the largest boost in retail sales came from the automotive sector, which includes new and used cars, parts, accessories, and tires. The category saw a robust 1.8% growth, led by new car sales which increased by 2.3%. Clothing and accessories also saw a solid increase of 3.2%. Almost 6% of retail sales are accounted for by this sector. The second largest contributor to retail sales was food and beverages. This category saw a 0.3% increase, mainly due to purchases made at grocery stores and supermarkets. Fuel station sales and building material sales have both dropped.
Asia and Europe stocks get on United States lead while dollar dips
European and Asian stocks rallied on Tuesday after tech business stimulated Wall Street to tape-record highs overnight, while the dollar steadied after leaping the previous day.
Europe's Stoxx 600 index increased 0.42% and Britain's. FTSE 100 climbed up 0.62%. France's CAC 40 was up 0.38%. after failing to rise along with other European indexes on. Monday as the federal government there teetered on the edge of. collapse.
Japan's tech-heavy Nikkei stock index rose 1.91% and. the MSCI Asia index, which excludes Japan, climbed up 1.16% . Australia's stocks benchmark touched an. all-time high and was last up 0.56%.
Both the S&P 500 and Nasdaq futures were. approximately flat after the cash indexes struck new records on Monday,. helped by tech stocks including a 3% rally in both Facebook. parent Meta Platforms and Tesla.
There's still actually excellent companies who have really strong. balance sheets, who have a lot of ability to produce cash,. stated Timothy Graf, head of macro method for EMEA at State. Street.
I think a lot of the trades that have actually been working quite. well the last two months are still performing, he stated. The. ones that haven't worked well over the last week or more, things. like crypto have actually come off, they do not have those more resilient. qualities to them.
The dollar index, which tracks the U.S. currency. against six others, was last down 0.1%. The euro. climbed 0.21% to $1.0519 after dropping 0.74% on Monday, while. the pound increased 0.11% to $1.2672.
The dollar gained more than 0.5% on Monday as the euro slid. on the back of France's political crisis, and was likewise improved. by tariff dangers from President-elect Donald Trump and. better-than-expected U.S. manufacturing data.
However, the greenback came under some pressure as Federal. Reserve main Christopher Waller said he is favoring. a rate cut on Dec. 18.
We concur with (Waller's) remarks and remain in the. December cut camp, said Mohit Kumar, economist at Jefferies. Post December, we expect the pace of rate cuts to decrease to. when a quarter, with the following cut most likely in March.
The Chinese yuan faces its own difficulties from the. growing danger of more U.S. tariffs on China and it struck a. 13-month trough of 7.3145 per dollar in the offshore market.
Trump required at the weekend that BRICS member nations -. which include China - devote to not creating a new currency or. supporting another currency to change the dollar. He stated they. would otherwise deal with 100% tariffs.
The Fed-sensitive two-year U.S. Treasury yield. dipped to 4.1836% on Tuesday, heading back towards Friday's. four-week low.
Traders currently see about a 75% chance of a quarter-point. cut at this month's Fed meeting, up from 66% a day earlier and. 52% a week earlier, CME's FedWatch Tool revealed.
Shocks job openings information - a favored gauge of Fed officials. - is due in the future Tuesday, ahead of the regular monthly payrolls figures. on Friday.
Tesla shares dipped around 1% in post-market trading after a. Delaware judge ruled on Monday that Elon Musk is still not. entitled to get a $56 billion compensation bundle in spite of. shareholders electing it.
Gold ticked up to $2,643, following its retreat from. an all-time high of $2,790.15 on Oct. 1.
Oil costs increased as traders awaited the outcome of an OPEC+. meeting later on this week. Brent crude futures climbed. 0.88% to $72.45 per barrel.
(source: Reuters)