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Australian shares fall to a two-week low amid economic data
Investors kept their distance from the market ahead of important economic data to get a sense of the Reserve Bank of Australia’s monetary policy. As of 0024 GMT, the S&P/ASX 200 was down by 0.5% to 8,854.20. The benchmark index ended Tuesday 0.3% lower. If the current momentum continues, the benchmark index is on course to record its fourth consecutive day of losses. The benchmark index has fallen 1.3% this month as traders lock in profits after its strongest August performance since 2009 The economic data for Australia's second quarter GDP is due to be released later today. Investors will be watching this data because they are "wary" of the weak growth in the future and that there may need to be more aggressive RBA reductions. Kyle Rodda is a senior financial analyst at Capital.Com. The market swaps currently price over 80% of the probability that RBA will keep rates unchanged later this month. On the stock exchange, financials that are sensitive to rates fell by nearly 1% and reached their lowest level since 20 August. The "Big Four' lenders lost between 0.6% to 1.4%. In tandem with their American counterparts, Australian technology stocks fell as much as 2 percent, reaching their lowest level since mid-July. Xero, a New Zealand-based accounting program giant, fell by more than 3%. WiseTech Global dropped by 1.4%. Santos fell 0.4%, while energy stocks lost 0.2% of their early gains. Miners bucked the trend of gloomy sentiment by advancing 0.3%, thanks to higher iron ore and Copper prices. They are now on course for their fourth session in a row of gains. BHP Group, Rio Tinto and other global miners each gained 0.3%. As of 0024 GMT, the benchmark S&P/NZX 50 Index in New Zealand was largely unchanged at 13,143.22.
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US sanctions on oil prices have not affected the price of crude oil
In Asian trading, oil prices were unchanged on Wednesday as they held onto gains made in the previous session due to sanctions. The market was looking ahead to the OPEC+ summit over the weekend. Brent crude fell 1 cent or 0.01% to $69.13 per barrel at 0032 GMT. U.S. West Texas Intermediate Crude rose by 4 cents, or 0.06%, to $65.63 per barrel. Oil settled higher than 1% the previous trading day after the U.S. imposed sanctions on a group of shipping companies and vessels headed by an Iraqi/Kittitian businessman accused of smuggling Iranian crude oil under the guise Iraqi oil. A preliminary poll on Tuesday showed that the U.S. crude stockpiles, as well as distillate and gasoline stocks, were also expected to have decreased last week. Three analysts polled ahead of the weekly inventory data, estimated that crude inventories had fallen by an average of 3.4 million barrels during the week ending August 29. Prices were held in check by soft economic data. U.S. Manufacturing contracted for the sixth consecutive month, as President Donald Trump’s tariffs hit economic activity and business confidence. This weighed on demand for oil. Market participants were waiting for the outcome of the meeting of eight countries of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, which took place on September 7. Analysts believe that the group will not make any further changes in production until later. Beijing will also hold its biggest-ever military display on Wednesday morning to mark 80 years of Japan's defeat in World War Two. Xi Jinping, the Chinese leader, will be at the forefront, flanked by Vladimir Putin, Russia's president, and Kim Jong Un, North Korea's leader. The event comes after the Shanghai Cooperation Organisation Summit from August 31-September 1, where China presented its vision of a new international security and economic order as a direct challenge against the U.S. Analysts believe that this could lead Trump to respond with secondary sanctions. (Reporting and Editing by Shri Navaratnam.)
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Trump administration to sell coal leases in Alabama, Montana and Utah
The Trump administration announced on Tuesday plans for competitive coal leasing sales in Alabama, Montana and Utah this year as part of an overall government effort to boost domestic coal production. Why it's Important The sales are part President Donald Trump’s effort to revitalize U.S. Coal Mining despite global efforts for a transition to cleaner energy sources in order to reduce planet-warming CO2 emissions. KEY QUOTE In a press release, Interior Secretary Doug Burgum stated that coal has been the foundation of America's industrial and energy strength for many years. By moving forward with lease sales, "we are creating good paying jobs, supporting local community, and securing resources that keep America Strong." By the numbers: In Tuscaloosa county, Alabama, Interior Department's Bureau of Land Management is offering two leases that cover 14,050 acres (5.685.83 ha) and are estimated to contain up to 53 million tons of metallurgical coke used in steelmaking. The sale is scheduled for September 30. The Little Eccles Tract in Emery County is 120 acres and contains an estimated 1,29 million tons recoverable coal. Canyon Fuel Company submitted a request for the sale and it will be held on October 1st. BLM in Montana will sell 1,262 acres of estimated 167.5 millions tons of coal on October 6. The sale may extend the life of Spring Creek Mine until 2051. The mine's operator, Navajo Transitional Energy Company, applied for the lease. CONTEXT Trump signed executive orders to boost coal production. One of these executive orders included the designation of metallurgical coking coal as an essential mineral. Trump has claimed that while coal-burning power plants generate less than 20 percent of the electricity in the United States, deregulation can revive this industry and help to support energy security. However, critics have cited coal's decreasing competitiveness and its environmental impact. Rod Nickel, Nichola Groom and Nichola Broom contributed to the reporting.
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Gold's record rally: Who's keeping it moving?
Gold prices reached a record of $3,532 an ounce on February 2, extending the rally that has seen them rise by more than 90% since 2022. The demand is expected to be robust for a while due to various factors. The main drivers are central bank purchases, strong investment demand visible in the inflows of physical gold exchange traded funds and the upending of Western Security Policy by U.S. president Donald Trump, as well as his trade wars and concerns over the independence of the U.S. Federal Reserve. Will central banks continue to buy more? Metals Focus estimates that central banks will buy 900 tonnes of gold this year, double the average annual purchase of 457 tons between 2016-2021. After Western sanctions frozen half of Russia's foreign currency reserves by 2022, developing countries are looking to diversify away from the dollar. According to World Gold Council, a trade body, the official numbers reported to the International Monetary Fund represent only 34% the total central bank gold consumption estimate for 2024. In 2022-2025 they will account for 23% of the total annual demand for gold, which is double the share in the 2010s. Will the drop in the jewellery sector continue? According to the WGC, demand for gold jewellery, which is the primary source of physical consumption, dropped 14% in the second quarter 2025 to 341 tonnes, its lowest level since the pandemic-ravaged third quarter of 2010. High prices discouraged buyers. WGC estimates that high prices were the main cause of the decline. The majority came from China and India, whose combined share of the market fell below 50% only for the third time in five years. Metals Focus estimates that gold jewellery production will fall 9% in 2024 to 2,011 tonnes and experience a 16% decline this year. DO PEOPLE STILL PURCHASE SMALL GOLD COINS AND BARS? The retail investment market has seen a significant shift in consumer preferences, but overall purchases remain strong. According to the WGC's report, investment demand for gold bars increased 10% by 2024 while coin purchases fell 31%. This trend is expected to continue into this year. Metals Focus anticipates a 2% increase in net physical investment this year, to 1,218 tonnes. The demand for metals remains strong in Asia amid positive expectations about prices. Can gold ETFs attract more inflows? According to the WGC, gold ETFs are now a major source of demand. They recorded inflows of 397 tonnes in the period between January and June, which is their biggest first-half inflow since 2020. The total gold ETF holdings at the end June reached 3,615,9 tons, the highest since August 2022. Five years ago, their record was 3,915 tonnes. Metals Focus anticipates a net investment of 500 tons in ETPs by 2025, after seven tons inflows in the year 2024.
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Rosatom and EDF promote large nuclear reactors for India's energy future
The Russian nuclear company Rosatom and France’s EDF have positioned large nuclear power plants as the cornerstone for their engagement with India. They are also exploring small modular reactors to be used in targeted applications. India wants to increase its nuclear power production capacity from the current 8 gigawatts to 100 gigawatts in 2047. Reports from April indicated that India was easing rules for foreign entities to be able to own minority stakes nuclear power projects. Rosatom and Indian partners are discussing a range of energy solutions, including large-scale NPPs as well as small modular reactors. Katerina Astashina (South Asia Lead), Rosatom, said in a panel at the Powergen event in New Delhi on Tuesday that large NPPs represent the most promising and strategic avenue for the further development of this dialogue. EDF, who is proposing to build six 1,650MW reactors at the Jaitapur Site in Maharashtra has stressed the importance of maximising the available sites. Kalirajan S., managing director of EDF Nuclear Projects India said that when there are fewer suitable sites, it's always best to choose larger capacity reactors so we can make the most of these sites. "SMRs are also going to be used in captive power plants by small players that want to create a power system supporting data centers. "SMRs will also play a part in captive power plants for small players who want to set up a supporting power system for data centers..." India's nuclear energy generation, which is just over 8 gigawatts in size, represents about 3% its total installed capacity. NTPC, India's largest coal power plant operator, will also look to bring multiple technologies from around the world in order to deliver energy at the lowest cost, according Prasenjit Pala, executive director for nuclear at NTPC. NTPC plans to build nuclear power capacity of 30 GW over the next 20 years. Sethuraman N.R., William Maclean (Editing)
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Gold price explosion fuelled by Fed rate cut looming
Gold's latest rally, triggered by expectations for U.S. interest rate cuts, fears about the independence of the Federal Reserve and healthy investor demand and central bank demand will likely propel prices to record levels in coming weeks. Analysts expect spot gold to be in a range of $3,600 to $3,900 in the short to medium term. It could even reach $4,000 in 2026, if geopolitical and economic uncertainties continue. According to polls, gold has gained over 33% this year. Analysts have raised their average price forecast for 2025 from $2,756 per ounce in January to $3065 in April and to $3220 most recently in July. Financial markets have been betting on a rate cut in September after Fed Chair Jerome Powell acknowledged the rising risks of employment. Ricardo Evangelista is a senior analyst at ActivTrades. He said that the dollar's bearish outlook, based on expectations of Fed cutbacks, investors' distancing themselves from U.S. investments, and tariff-related uncertainty, supports gold. Since Donald Trump's return to the White House, in January, the dollar has dropped by nearly 11%. The dollar's weakness makes gold priced in greenbacks less expensive for those who hold other currencies. Trump's criticisms of Powell, and his attempts to remove Lisa Cook as Governor have raised concerns about the Fed's independent and led to further gold purchases. Carsten Menke, Julius Baer's analyst, said: "The wildcard that is most likely to cause a bullish move in the market... could be the potential interference of the U.S. Federal Reserve or concerns over the dollar as a safe haven." Gold's appeal is also boosted by security concerns from the Middle East, between Russia and Ukraine, and demand from central banks in developing countries. This includes China's central banks adding gold to their reserves for the ninth consecutive monthly in July. World Gold Council data indicates that central banks are planning to increase their gold holdings in proportion to their reserves while reducing dollars reserves over the next 5 years. Michael Hsueh is a precious metals analyst at Deutsche Bank. He said that the combination of rising gold prices and central bank accumulation has led to a sharp rise in gold reserves for some central banks. Inflows into gold-backed ETFs are also significant. SPDR Gold Trust is the largest gold ETF in the world. Its holdings have risen to 977.68 tonnes, a 12% rise so far this season and their highest level since August 2022.
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South Sudan clashes kill 14 in renewed violence north
The military announced on Tuesday that at least four soldiers as well as 10 militia members had been killed during fighting in a South Sudanese area where previous clashes resulted in the arrest of the First Vice President Riek Machar. Machar, a long-time rival of Salva Kiir, was arrested in March. This sparked international calls for restraint. It also sparked fears that a civil war could break out between Kiir Dinka forces loyal to Machar and Nuer fighters loyal Kiir. Garang Ateny, South Sudan's military spokesperson, said that fighters from the White Army, a group Machar's critics claim is affiliated with the SPLM-IO, the party he leads in Upper Nile, attacked the South Sudanese military on Monday near Nasir, in Upper Nile State. Early this year, violence erupted in the northeastern town that led to Machar’s arrest. Ateny stated that the White Army had launched three attacks against the position of the army, and added that the army lost four soldiers during the conflict while 10 attackers died. It was not possible to reach the spokespeople of SPLM-IO or White Army. Machar and his group deny that they have any links with the White Army. Since a 2018 agreement that ended a civil war rife with ethnic tensions between the two men, which resulted in hundreds of thousands deaths, Kiir has been a Dinka who shares power with Machar. Machar's arrest for allegedly trying to incite a revolt through his supposed support of the White Army militia has sparked fears that ethnic conflict will erupt again. (Written by Elias Biryabarema, edited by William Maclean).
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Ivory Coast secures Africa's first sustainability-linked loan with World Bank guarantee scheme
Ivory Coast has raised 433 million euros ($507 million) with Africa's first sustainability-linked foreign currency loan in a transaction that also comes with guarantees from the World Bank, arrangers of the deal said on Tuesday. In recent years, the West African nation has turned to sustainable financing to increase its resilience to climate shocks as well as diversify their funding sources. In July, it raised $337m in an ESG certified Japanese samurai Bond. The structure of the sustainability-linked loan helped Ivory Coast to "attract significant appetite from international investors and secure favourable financial terms," said Rothschild and Co, which advised the Ivorian government in the deal. The World Bank Group’s International Bank for Reconstruction and Development, or IBRD, offered a guarantee for the first loss while its Multilateral Investment Guarantee Agency provided a guarantee for the second. Hiroshi Mattano, MIGA's executive vice president, said in a press release that "we are helping Ivory Coast to secure financing at better terms, accelerate climate commitments and build resilience in key sectors." The terms of the loan, which are more favorable than standard financing, are tied to performance targets for renewable energy, prevention of deforestation as well as reforestation. Standard Chartered acted both as sole lender and lead arranger. The World Bank announced in December that it would support Ivory Coast with a debt for education swap. This was a first-ever transaction for this Washington-based lender.
Nigeria partners with S&P Global to develop West African Petroleum Price Index
Nigeria's downstream regulator announced on Tuesday that it has partnered with S&P Global Commodity Insights in order to create a regional benchmark price for refined petroleum products across West Africa.
The initiative was launched in Nigeria's capital Abuja at the West African Refined Fuel Conference. It aims to create locally-specific indices for petrol, diesel and aviation fuel.
West Africa is an important oil and gas producing region, as well as a refining center that's growing. Farouk Ahmad, the head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority, explained that it depends on posted prices from global benchmark markets.
Ahmed stated that "although these benchmarks may be globally accepted, they often do not reflect the unique characteristics of supply chains, market dynamics, and economic realities on the African continent."
He added that the partnership would improve price transparency and support investment decisions, as well as enhance energy security in the region.
OPEC's Nigeria, Africa’s largest crude oil producer, has implemented reforms in its downstream sector to position itself as a regional trade hub.
Last year, the Dangote refinery, which has a refining capacity up to 650,000 barrels a day, began operations in Lagos. Since then, it has increased production and sought new markets.
Nigeria produces about 31% of all refined fuels traded in West Africa. This share is expected to increase as more refineries come on line. (Reporting and editing by Joe Bavier; Isaac Anyaogu)
(source: Reuters)