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Iron ore prices continue to fall as China's deflation persists
Iron ore futures prices fell on Monday as investors' sentiment was dampened by weak data from China, the top consumer. However, hopes for progress in trade negotiations between the two world's largest economies helped to limit losses. As of 0215 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading little changed. It was 707.5 yuan (98.45 dollars) per metric ton. The benchmark July Iron Ore at the Singapore Exchange fell 0.22% to $95.3 per ton. China's consumer price fell for the fourth consecutive month in May, and producer deflation reached its highest level in nearly two years. The economy is facing headwinds due to trade tensions and an extended housing downturn. Three top U.S. aides to President Donald Trump will meet their Chinese counterparts on Monday in London for talks that aim to resolve a trade conflict between the two superpowers, which has been causing global markets to be on edge. The temporary agreement reached by both countries on 12 May in Geneva did not address the broader issues straining bilateral relations. The market is therefore eager to know if a final agreement will be reached, which would ease pressure on global growth. Coking coal and coke were both mixed on the DCE. The benchmark steel prices on the Shanghai Futures Exchange are rangebound. The price of rebar, hot-rolled coil and wire rod were unchanged. Stainless steel was down by 0.47%. $1 = 7.1862 Chinese Yuan (Reporting and editing by Amy Lv, Lewis Jackson)
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Gold prices drop as US-China trade hopes ease demand for safe-havens
Gold prices declined on Monday as optimism over easing U.S.-China trade tensions dampened safe-haven demand, while a stronger-than-expected U.S. jobs report tempered expectations of interest rate cuts by the Federal Reserve. As of 0214 GMT, spot gold was down 0.4% at $3,298.12 per ounce. U.S. Gold Futures fell 0.9% to $3317.40. Three top aides to U.S. president Donald Trump will be meeting with their Chinese counterparts later that day in London to discuss the resolution of the trade dispute, which has been a source of tension for global markets. Short-term traders are not interested in taking aggressive long positions at this time, pending the outcome of U.S. China talks, said Kelvin Woong, a senior analyst for Asia Pacific, OANDA. Wong added that tariffs will not disappear but that talks could lower the baseline. The cost of doing business in America would remain high and the growing U.S. deficit could lead to a double-feedback loop, which would exacerbate inflationary pressures. Labor Department reported that the U.S. economy created 139,000 new jobs in May, exceeding analysts' expectations. The unemployment rate remained unchanged at 4.2%. The wage growth was higher than expected, reducing the chances of rate cuts. Investors have lowered their bets for rate cuts, and expect one in October. They are also waiting to see the U.S. CPI numbers due on Wednesday. Trump also said that the Fed would announce its decision soon on who would become the next chair. He added that a good Fed chair would lower interest rates. On Monday, Trump's ban on citizens from 12 countries entering the U.S. will take effect. In a low interest rate environment, non-yielding gold bullion is often seen as a safe haven during times of economic and geopolitical uncertainty. The price of palladium remained unchanged at $1,046.18. Platinum fell 0.5%, to $1,163.64, and spot silver remained at $35.97. (Reporting and editing by Sumana Nandy, Harikrishnan Nair and Anmol Choubey from Bengaluru)
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London copper prices little changed before US-China trade negotiations
London copper prices were largely unchanged Monday. The market was watching the U.S. - China trade talks that will be held later in the day in London. The U.S. Dollar held steady on Monday against all major currencies, as optimism over a positive U.S. jobs report was replaced by caution in advance of the discussions between the world's biggest economies. Three of Donald Trump's top advisers from the United States will meet their Chinese counterparts on Monday in London to settle a trade conflict that has been causing global markets to be on edge. By 0108 GMT, the three-month contract for copper on the LME had traded up $2 to $9,695 a metric ton. The Shanghai Futures Exchange's most traded copper contract fell 0.2%, to 78.630 yuan per ton ($10.9939.67). Yangshan copper premium is in high demand. Last Friday, the price of, which measures China's desire to import copper, dropped to $41 per ton, its lowest level in three months. Early May saw a peak of $103, the highest level since mid-December, 2023. Other London metals rose by 0.2%, with aluminium rising to $2.456.5 per ton. Lead gained 0.2%, to $1.982, while zinc climbed 0.2%, to $2.670. Nickel was up 0.3% at 122,460 Yuan. Lead gained 0.3% at 16,730 Yuan. Zinc fell 0.3% at 22,250 Yuan. Click or to see the top stories on metals, and other news. (Reporting is by Hongmei Li. Editing is by Harikrishnan Nair.)
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Dollar falls as Asian shares rise ahead of US-China discussions
The dollar lost some of its recent gains as Asian markets responded to the better than expected U.S. employment data, ahead of the London talks aimed at mending the trade rift between China and the United States. Wall Street stocks closed strongly higher on Friday, after the jobs data eased fears about the damage that President Donald Trump's unpredictable tax regime could cause to the world's largest economy. Gold and other safe-haven assets fell after steep sales. MSCI's broadest Asia-Pacific share index outside Japan rose 0.5% at the opening of trading on Monday. Hong Kong's Hang Seng Index soared by 1.3% and reached the 24,000 point level for the very first time since March 21, 2009. Japan's Nikkei stock index rose 0.9%. A standoff in Los Angeles, which led Trump to call in the California National Guard in order to quell protests against his immigration policies, also weighed on the sentiment. The dollar fell 0.3% to 144.39 yen, reducing its 0.9% rise on Friday. The euro was up by 0.2% at $1.1422. Washington and Beijing's top trade representatives are expected to meet to discuss critical minerals whose production is dominated largely by China. The talks follow a rare phone call between Trump and Chinese president Xi Jinping last week. Kyle Rodda is a senior analyst of Capital.com and he said that trade policy would remain the biggest macro-uncertainty. "Signs that the talks are moving forward could give the markets a boost to start the week." Trump announced in a post on social media that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, as well as Trade Representative Jamieson Greer, will represent Washington at talks with China. China's Foreign Ministry announced Vice Premier He Lifeng would be in Britain to attend the first meeting of China-U.S. Economic and Trade Consultative Mechanism. Data released on Friday showed that U.S. employers created 139,000 new jobs in May. This is less than the 147,000 added in April but more than the 130,000 predicted by an economist poll. The focus now shifts to Wednesday's inflation data, which will influence expectations about the timing of rate cuts from the Federal Reserve. Jeff Ng of SMBC, the Head of Asia Macro Strategy, stated that the markets are experiencing "mixed fortunes". They must balance the optimism about trade and the U.S. economic situation against the possibility of social unrest in California. Ng added that markets might not have priced in much of a breakthrough from the trade talks. In the meantime, Ng said, "We are aware that there are protests taking place in L.A. in the U.S., and the National Guard has also been sent in. So we also have to keep an eye on event risk." Spot gold dropped 0.2% to $3.303.19 per ounce. U.S. crude oil was barely changed at $64.56 per barrel following a two-day rise.
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China and Hong Kong stock prices rise ahead of Sino-US Trade Talks
China and Hong Kong shares edged up on Monday as rare-earths and technology sectors led gains, while investors awaited high-level U.S. China trade negotiations to be held in London. China's blue chip CSI300 Index rose 0.3% in the early trades while the Shanghai Composite Index gained 0.4 percent. Hong Kong's benchmark Hang Seng rose more than 1%, and it regained the critical 24,000 level for the first time since March 21, 2009. The mood was cautiously optimistic, as the U.S. will resume their trade talks with China later that day. The top U.S. officials, including Treasury Secretary Scott Bessent, and China's Vice Premier He Lifeng are meeting in London to discuss a trade dispute. The meeting comes after a rare call between U.S. president Donald Trump and Chinese leader Xi Jinping on Thursday. This was in response to weeks of brewing tensions over trade and a dispute about critical minerals. Analysts at China Securities wrote in a report that they believe there could be positive outcomes as Trump has shown some positive signs. They added that any progress would offer some relief to the markets. The strategically-important rare earth sector, which is expected to be a key focus of the talks, led onshore gains on Monday, up 0.8%. Hong Kong's Hang Seng Tech Index rose 2%, reaching a three-week high. Since the "Liberation Day" of April 2, when Trump announced massive reciprocal tariffs, which threatened to upset the global trading order, Chinese stocks have struggled for direction. The blue-chip CSI300 Index has barely moved from its April 2 level. Hong Kong's Hang Seng Index, the benchmark index, gained about 2% in the same period. Both markets are lagging behind the global recovery. China's consumer price fell for the fourth consecutive month in May, while deflation among producers grew, as trade tensions and an extended housing slump weighed on the economy. (Reporting and editing by Rashmi aich in Hong Kong)
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Oil prices rise ahead of US-China Trade Talks
Investors waited in London for the U.S. China trade talks scheduled later that day. Oil prices were able to hold onto their gains from last week. Brent crude futures were unchanged at $66.47 per barrel at 0008 GMT. U.S. West Texas Intermediate Crude was trading at $64.59. Prices rose as the prospect of a U.S. China trade deal was raised. Three of Donald Trump's most senior aides will meet their counterparts on Monday in London for the first U.S. China economic and trade consultative mechanism meeting. The announcement came after a rare phone call on Thursday between top leaders of the two countries. Both were under pressure to calm down tensions, as China's export restrictions on rare earths are disrupting global supply chains. The news prompted oil prices to post their first weekly increase in three weeks. The fact that the unemployment rate in the United States remained unchanged in May seemed to increase the chances of a Federal Reserve cut. This would support last week's gains. On Monday, China's inflation data will provide a read on the domestic demand of the world's biggest crude importer. After OPEC+ announced a major increase in production for July, on May 31, the economic data and prospects of a potential trade agreement that could boost economic growth and demand for oil overshadowed concerns about an increased OPEC+ output. HSBC's research note published on Friday said that it expects OPEC+ will accelerate its supply increases in August and Septembre, raising downside risks for the bank's forecast of $65 per barrel Brent from the fourth quarter 2025. Capital Economics' researchers believe that this "new, faster pace (of OPEC+) rise in production is here to remain". (Reporting and editing by Colleen Waye; Himani Sarkar, Himani Sarkar).
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UK wants to extend the ban on bottom-trawling in English waters
The British government announced on Monday that it would extend the ban on bottom-trawling in order to protect marine life. This comes amid calls by acclaimed naturalist David Attenborough, and Prince William to take urgent measures to safeguard the oceans. The government announced that the plan would be subject to consultations with the marine and fishing sector. It will ban bottom trawling, or dragging large nets across the seabed, in 41 Marine Protected Areas spanning 30,000 square kilometers (11,600 miles). The move will protect marine habitats vital to species like lobster, clams soft corals, and langoustines. There is currently a ban on English seabeds covering 18,000 square kilometers. Steve Reed, Environment Minister, said that bottom trawling damages our marine habitats and wildlife. "Our oceans are irreversibly damaged if we don't take urgent action." The proposal coincides this week with the United Nations Ocean Conference, held in France. This conference is looking to reach agreement on a treaty that will protect oceans and seabeds around the world from overfishing. At an event in Monaco on Sunday, Prince William, the older son of King Charles, and heir apparent to the throne called for politicians and business leaders to "act while we still have the opportunity" at the UN conference. Attenborough's latest documentary "Ocean", which was released on this issue last month, expressed his disgust at what humans have done to the "deep ocean floor", calling it "unspeakably horrible". In an interview released on Saturday by the Prince's Office, Attenborough said to William: "If you were to do anything like that on land, everyone would be in uproar." (Reporting and editing by Alexandra Hudson.)
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Staffing crunch in national parks: From restrooms to research, Trump's cuts have affected everything from summer staffing to research.
According to two sources familiar with the situation, Yosemite National Park, in California, is one of the most popular and oldest natural preserves in the United States. The staff there has been stretched so thin that this season, nearly all employees, including scientists, have to clean campground toilets. One source said that the staff hydrologist, as well as an expert in invasive species, have been posted to entry gates, where they will be processing visitors. This is a task normally performed by seasonal workers or junior staff who are paid less. The shortage of workers in national parks is a result of the understaffing and budget cuts made by the Department of Government Efficiency, led by Elon Musk, the tech billionaire, and President Donald Trump. In an email, the NPS stated that staff members may be asked to perform additional duties to ensure parks remain open and safe. The NPS stated that "at times, team members can step in to a variety of responsibilities beyond their normal scope to ensure continued access, security, and stewardship throughout the park system." The park encouraged visitors to plan ahead by checking park alerts, understanding site guidelines and planning in advance. Kevin Heatley, the former park superintendent who quit in May due to staff shortages, explained that workers in Crater Lake, Oregon, 800 km (500 miles) north of Portland, are so overworked they would be unable to clear snow and ice from the roads in time for the return of tourists in large numbers in the next few weeks. Conservationists point out that extremes like these could be signs of a busy, but uncertain, summer season for the National Park Service. Already stretched by the growing number of visitors, and years of low funding, it may face a busy, but uncertain, summer. According to the National Parks Conservation Association (NPCA), a watchdog and advocacy group, the NPS has lost 13 percent of its 20,000 strong workforce since Trump's inauguration in January. The group attributes much of this drop to staff accepting buyouts from DOGE. The Trump administration did not provide its own numbers. It is possible that Trump could face a backlash from the public if the conditions in national parks are not pleasant for tourists this summer. While Americans are increasingly divided over a number of key issues the majority view the parks as beloved and affordable vacation destinations. They are also visiting in record numbers. In 2018, national parks welcomed 331 million visitors. This is a record high and an increase of 6 million since 2023. Anna Kelly, Trump’s deputy White House Press Secretary, said that the parks would be in perfect condition for visitors. Kelly stated that President Trump ensures agencies in the United States run more efficiently, while maintaining great services for Americans. "A REALLY TOUGH Summer" Kristen Brengel is a senior executive at the NPCA. She said that some parks are having difficulty hiring and retaining enough park rangers, search and rescue personnel, and other staff. This could pose a risk to the safety of visitors. It could take longer for emergency personnel to reach hikers who are suffering from heat exhaustion and injuries. Brengel stated that a smaller ranger force means more visitors will venture into the backcountry, near geysers, steep ledges and wild bison. Brengel stated that this summer will be tough for many parks. The NPS didn't respond to a question about the NPCA’s concerns regarding potential safety issues. Yellowstone's superintendent Cam Sholly insists that staffing in the geothermal wonderland - the oldest national park of the United States and one of its most popular - "is higher than at any time over the past five years, going into summer." He said, "Our critical posts are filled" last month, at a season-opening event in Cody Wyoming, the gateway city on the eastern edge of Yellowstone National Park. PARK LEADER QUITS Some park managers had to deal with tough times even before the summer. Heatley left his position just five months after he became Crater Lake Superintendent. He said the park had been understaffed for many years. However, recent DOGE demands, including telling federal employees to send an email every week justifying their job, has caused low morale. He said that he had resigned as he no longer felt able to protect the safety and health of his employees or visitors. It is essential to clear the roads before the tourist season in order to avoid the park's cobalt lake, which has the largest depth in the United States. This year, it received over 36 feet (11 metres) of snow. He said, "Crater Lake has reached a point in which we cannot afford to lose one staff member." The park has 45 permanent staff, but 18 positions are vacant due to Trump's hiring ban. "Crater Lake lies on a precipice." You are like a man who is starving and taking another half of his food. Low Staffing Before Trump Some are more optimistic. Jonathan Farrington, CEO, Yosemite Mariposa County Tourism Bureau said that he was told only 13 NPS jobs had been cut in Yosemite and that none of them involved law enforcement positions or positions with the public. He said that the visitor experience at Yosemite this year will be outstanding. The National Park Service is a federal agency under the U.S. Interior Department. It manages 85 million acres of land set aside for conservation and recreation within America's scenic natural wonders and historic landmarks. Interior Department manages 85,000,000 acres of land set aside for conservation, recreation and historical landmarks. Yellowstone National Park was created by Congress in 1872. The park system continued to expand, and President Woodrow Wilson signed the National Park Service Act in 1916. Today, its portfolio includes 433 park units. These range from smaller sites, such as Independence Hall in Philadelphia, and Ford's Theatre, in Washington, to 63 national parks of varying sizes, including Yosemite National Park, Yellowstone National Park, Grand Canyon, and Great Smoky Mountains. The NPCA reported that even before Trump's second tenure began, staffing in parks had decreased by 20% between 2010 and 2015, despite an increase of 16% for admissions during the same time period. This put more pressure on the infrastructure. In February, Trump's administration ordered the firing of 1,000 newly hired workers from the NPS. Although the decision was reversed later, parks are now racing against time to rehire these workers even though summer has already started. In April, perhaps aware of the potential political fallout that could result from this order, Interior Secretary Doug Burgum issued an order requiring "all national parks remain open and accessible", and "to provide the best customer service for all visitors." Brengel noted that despite Burgum's public promise to hire 7,700 seasonal park rangers this summer, NPCA data shows only 3,300 were hired by May 13. Former Yellowstone Superintendent Dan Wenk said park managers could make due with short-term research, wildlife and habitat projects and nature tours to keep the roads open and clean. Wenk stated that "if the expectation is that the parks will provide the same service level this year as last year, then that cannot be met." Reporting by Ruffin Prvost in Cody and Steve Gorman in Los Angeles, and Tim Reid, in Washington. Editing by Ross Colvin, Aurora Ellis, and Ross Colvin.
Oil prices drop as China retaliates against Trump tariffs
Oil prices and global stock markets fell again on Friday, as China retaliated against U.S. president Donald Trump's new tariffs. Worries about a long-term trade war increased.
The Nasdaq composite was heading toward a bear-market, and the pan-European STOXX 600 confirmed that it was in correction mode as the trade conflict fanned concerns about a global recession.
S&P 500 Companies have lost more than $4 trillion since Trump announced his tariffs on late Wednesday. This is a record-breaking two-day drop for the benchmark. It surpasses a two day loss of $3.3 trillion that occurred in March 2020 when the pandemic ravaged global markets.
While the dollar recovered on Thursday, some investors turned to government bonds for safety.
China responded to Trump's new tariffs by imposing additional 34% levies on American goods on Friday, which confirmed investor fears of a global trade war.
Trump imposed a tariff of 10% on the majority of U.S. imports, and much higher rates on dozens more countries. This is the highest trade barrier in over 100 years.
Rick Meckler is a partner at Cherry Lane Investments in New Vernon, New Jersey, a family-owned investment firm.
"For investors who thought it was just a simple negotiation, while this may still be true to some extent, it is getting incredibly deeper and more dangerous for businesses."
The fact that the U.S. economy created far more jobs in March than was expected did not brighten the mood.
Jerome Powell, Federal Reserve Chair, said at a Business Journalists' Conference in Arlington, Virginia that Trump's tariffs were "larger than anticipated" and that the economic fallout would be similar, with higher inflation and slower GDP.
He said that the U.S. Central Bank does not predict a decline in its outlook, but acknowledged private sector forecasters are changing their views on this front.
Peter Cardillo is the chief market economist of Spartan Capital Securities, a New York-based brokerage.
Companies that have exposure to China fell as well. Apple, Nvidia, and Amazon.com all fell sharply.
Globally, bank shares fell as concerns about a recession grew. S&P 500 Financial Index was down 6.8% while Energy was down over 8% due to falling oil prices.
The Dow Jones Industrial Average dropped 1,953.69, or 4.78% to 38,601.34, while the S&P 500 fell 288.97, or 5.35% to 5,107.55, and the Nasdaq Composite declined 871.79, or 5.25% to 15,678.81.
The MSCI index of global stocks dropped by 41.22 points or 5.1% to 766.4.
The pan-European STOXX closed 5.1% lower. This was its largest daily loss since COVID-19-driven selloffs in 2020. The index dropped nearly 12% since its all-time March 3 closing high, which confirmed it was in correction.
Japan's Nikkei 225 fell 2.8% overnight for a second session running.
Brent crude futures dropped 6.5% and settled at $65.58. U.S. Crude Futures fell 7.4% and settled at $61.99, their lowest level since April 2021.
Powell's cautious tone about future easing helped the dollar recover against the yen and euro. The dollar index rose 0.9% last after Thursday's biggest drop since November 2022.
The euro fell 0.81% to $1.096. The dollar gained 0.58% against the Japanese yen to reach 146.9.
Investors are unsure where to invest their money after years of massive flows into U.S. stock markets and an booming American economy.
This helped to drive a strong rush towards the government bond markets. The yield of the 10-year Treasury bill, which is considered to be the benchmark in the U.S., fell by 12.2 basis points from 3.86% to 3.933%. Prices and yields are inversely related.
The benchmark yield for the Eurozone, which is the German 10-year bond, dropped as much as 17 basis points during the day.
Money market futures are pricing in a Fed rate cut of 110 basis points by the end this year. This is compared to 75 bps about a week ago.
The traders also increased their bets for Bank of England and European Central Bank decreases.
Meckler stated that "a lot of investors who I have spoken to said, in this type of environment, we should just go cash and wait,"
(source: Reuters)