Latest News
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REalloys joins forces with Canada's Rare Earths Council
REalloys, a U.S. startup that produces heavy rare-earth magnets, announced on Monday that it will partner with Saskatchewan Research Council (Canada's unit for technology innovation) to expand a processing plant for heavy rare earths, which is expected to begin operating in 2027. REalloys said it would invest around $21 million to expand the production of heavy rare Earths in exchange for a long term offtake agreement that covers 80% of its annual production. The announcement is made as the U.S. Government seeks to diversify the risk away from China, the top supplier of magnets, by developing an alternative supply line for the materials used in wind power and defense industries. REalloys of Ohio, formed in 2023 plans to convert rare earths into metal in Saskatchewan, either from mined ore, or recycled electronics. It signed an earlier agreement to source ore for a Greenland-based project that Critical Metals Corp hopes to develop. The Saskatchewan facility initially will produce 30 tons of dysprosium, 15 tons terbium, and 400 tons neodymium (NdPr). This will increase to 600 tonnes per year once the expansion is completed. REalloys is developing a mining project in Saskatchewan that will support the magnet rare-earths supply chain. In September, the U.S. Export-Import Bank sent a letter of intent for a loan up to $200,000,000 to fund processing and magnetic facilities. (Reporting by Melanie Burton in Melbourne; Editing by Jamie Freed)
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Gold prices rise on Fed rate cuts and a weaker dollar
Gold prices increased on Monday due to growing expectations that the U.S. will cut interest rates, which pushed up the dollar ahead of this week's Federal Reserve policy meeting. By 1127 GMT, spot gold had risen 0.2% to $4206.36 an ounce. U.S. Gold Futures for February Delivery fell 0.2% to $4235.60 an ounce. Dollar-priced Gold is now more affordable to overseas buyers thanks to the dollar index, which has been trending lower since December 4. The gold price is rising due to a lower dollar, and the market expects that the Fed will cut rates this week. This was stated by UBS analyst Giovanni Staunovo. Last week, data showed that U.S. consumers spent more in September. This reflected a slowdown of the economic momentum, despite rising costs and weakness on the labour market. Private payrolls in November saw their biggest decline in more than two-and a half years. CME's FedWatch tool shows that markets have priced in a 87% chance of a rate cut of 25 basis points at the Fed meeting on December 9-10, after the release of weak data and the dovish comments of several Fed officials. Gold is a non-yielding asset that tends to be in high demand when interest rates are low. Staunovo added, "We are still looking for rate cuts in the coming year. This should push gold up to $4,500/oz." Silver rose 0.3% to $58.43 an ounce after reaching a record-high of $59.32 per ounce on Friday. Silver is also benefiting from this factor. Staunovo added that the expectation of improved industrial demand due to monetary and fiscal stimuli helped silver outperform gold over recent weeks. White metal prices have doubled this year due to supply shortages and the designation of the mineral as a critical one by the U.S. Palladium rose by 1.2% and platinum was up 0.9% at $1,656.61. (Reporting and editing by Susan Fenton, Louise Heavens and Pablo Sinha from Bengaluru)
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Copper reaches record high on supply concerns ahead of Fed decision
Prices of copper reached record levels on Monday, as the lower dollar in anticipation of the Federal Reserve meeting this week led to a rush of purchases. Concerns about future shortages also fueled optimism. Benchmark copper at the London Metal Exchange rose 0.3% to $11,657 per metric ton by 1057 GMT, from a previous peak of $11,771 per ton. This represents a gain in excess of 30% for this year. The U.S. Central Bank is expected to reduce rates. The U.S. dollar will be affected, and when it falls the price of metals priced in dollars becomes cheaper for holders other currencies. This relationship is used by funds as a way to generate buy-and-sell signals based on numerical models. The mine supply disruptions of recent years, such as the accident at Freeport-McMoRan's giant Grasbery Mine in Indonesia, are partially responsible for the expected deficits. The rest of the world has also seen a tightening of supplies as traders have shipped copper to the United States due to higher Comex prices ahead of U.S. president Donald Trump's proposed import tariffs. The U.S. tariffs on metals used in construction and power remain under review. An update is due by June. The copper inventories at the Comex-approved warehouses are now a record 436,853 metric tons or short tons. On Friday, the number of people who attended church has increased by more than 300% compared to March. Macquarie analysts estimate that there are roughly 335,000 additional tons of metals sitting in storage in the U.S. Macquarie stated that the metal had been transferred into Comex warehouses, and November imports were lower than usual before Section 232. The market surplus is 400,000 to 600,000 tonnes per year, if you allow for the transfer of stocks. It's a problem that the majority of this stock is in America, causing artificial shortages elsewhere. Other metals saw aluminium slip 0.1%, to $2.895 per ton. Zinc gained 0.4%, to $3.110. Lead added 0.4%, to $2.011, while tin rose 0.3%, to $40.175. Nickel slipped by 0.1%, to $14.930. (Reporting and editing by Leroy Leo; Pratima Dasai)
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Draft document shows that EU will delay proposals on carbon border tax for auto industry
By Kate Abnett and Philip Blenkinsop BRUSSELS - According to a draft agenda of the European Commission, seen by, the European Union intends to delay until December 16 legal proposals for expanding its carbon border levy, and possibly weakening a ban on new CO2-emitting vehicles in 2035. Carmakers and governments are closely watching the plans, including Germany, Italy and others, who have asked that the EU revise their 2035 auto CO2 emission policy, as it currently stands, would effectively ban new combustion engine vehicles. The original publication date for the proposals was Wednesday. On Monday, officials from the Commission were still negotiating timings and the draft agenda may still change before publication. Some EU officials have suggested that the proposals for autos could be further delayed, possibly into 2026. The spokesperson for the Commission declined to comment on a draft agenda that was seen by. Brussels is working on proposals to extend its carbon border tariff, which will be implemented in the near future, to include more downstream products like washing machines. This would prevent foreign companies from avoiding this world-first measure. The proposals for autos are being developed amid lobbying by European carmakers to allow greater flexibility in the 2035 policy. This includes allowing plug-in hybrids and combustion engine vehicles that run on so called CO2-neutral gasolines, continue sales beyond this deadline. The European auto industry needs flexibility to deal with the slower-than-expected electric vehicle sales and the fierce competition from China. The EU's climate goals could be compromised if the policy is weakened. This would result in more CO2-emitting vehicles on the roads of Europe by 2050 when it has committed to achieving net zero emissions for its entire economy. Reporting by Kate Abnett and Philip Blenkinsop. Editing by Louise Heavens.
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Sudan's RSF paramilitary RSF claims it has taken control of the strategic Heglig Oilfield
The Sudanese paramilitary Rapid Support Forces, or RSF, announced on Monday that they had taken over the strategic Heglig Oilfield in South Kordofan Province. Heglig is the largest processing plant for South Sudanese crude oil. This makes up a large part of the government's revenue. Sources from the government said that the workers and the government forces at Heglig oilfield retreated on Sunday in order to avoid any clashes which could have damaged oil facilities. Sources at the Heglig Oil Field said that oil workers and the army had left the oil field for South Sudan. The Greater Nile Pipeline System transports oil to Port Sudan at the Red Sea, where it is exported. This makes the Heglig site crucial for both Sudan's hard currency earnings and South Sudan which is landlocked, and relies on pipelines mostly through Sudan. The conflict that broke out in April 2023, between the Sudanese Army and the RSF, has disrupted South Sudan’s oil flow. Before the conflict, South Sudan exported between 100,000 and 150.000 barrels of crude oil per day via Sudan. (Reporting and editing by Bernadettebaum)
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Howery, the US envoy to Greenland, meets with officials in Greenland amid Trump's interest for the island
PayPal co-founder Kenneth Howery will meet with officials from Greenland, Denmark and Nuuk in Nuuk, this week, on his first trip to the Arctic Island. This comes amid tensions surrounding President Donald Trump's desire to acquire the semi-autonomous area. The relationship between Denmark and the United States has been strained ever since Trump revived talks of taking Greenland from Denmark. The U.S. Embassy posted a photo on Instagram of Howery and Greenland Foreign Minister Vivian Motzfeldt. Greenland’s government announced on Saturday that the meetings of the Joint Committee (also known as the Permanent Committee) and the Joint Committee (also known as the Joint Committee), which alternately take place in Greenland and with the U.S.A., are a forum to discuss civilian and military co-operation, including the American presence on this strategically located island. Motzfeldt stated in a press release that "these committee meetings are intended to promote direct dialog and cooperation with the United States regarding several areas of civilian and military importance." Washington claims that Greenland is a Danish territory and vital to the U.S. for its security, especially the early-warning ballistic missile system. The shortest route between Europe and North America passes through the island. Motzfeldt said that trust and respect were the foundations of any partnership. It is no secret, however, that the last year was challenging. The Danish foreign ministry refused to comment on the participation of Denmark. The Danish and Greenland government have both ruled out a cession of the island's resource-rich resources to the United States, although Denmark admitted neglecting its military capabilities. (Reporting and editing by Jacob GronholtPedersen, Soren SirichJeppesen; additional reporting by Stine Jacobsen)
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Turkey's gold price spread shrinks as demand increases
After a period when the global gold price surged in the fall, the spread between the physical gold prices in Turkey, and the global market level has shrunk sharply, traders reported. The spread between gold prices in Turkey denominated in TL and their global equivalents peaked at over 5%. The spread between the TL-denominated price of physical gold in Turkey and the TL equivalent of global prices peaked at more than 5%. Traders said that the wide spread had affected the lira during the fall as the surge in gold demand was met by imports. Retail flows in Turkey have seen a decrease in demand for gold and foreign currency, but an increase of gold supply. In recent weeks, this shift has relieved pressure on Turkey’s external balances as well as the lira. The reversal is due to a number of factors, including a drop in FX protected deposit (KKM), the end of soaring global gold prices and the decline in local demand, which was strong in the summer months. The value of KKM deposit has dropped to $600m from its peak of $140billion in August 2023. The FX and Gold supply for client-based transactions has also increased significantly over the last week, especially in Istanbul's Grand Bazaar. The dollar/TL rate remained steady at around 42,5 during this time. One FX trader stated that the local sharp demand for Gold has stopped. He added that gold supply has been increasing since late November. Turkey's central bank estimates the country's gold reserves - stored in metal at home or "under-the mattress" - to be almost $500 billion. In Turkey, physical gold has been the preferred investment to combat high inflation. Gold spot prices have risen from $3,500 per ounce in early September, to $4,378 an ounce in October, a 25% increase, before dropping to $4,200 currently. (Reporting and editing by Jonathan Spicer, Daren Butler and Nevzat Dvranoglu)
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Finmin: Indonesia will impose a coal export tax up to 5% in the next year
Purbaya Yudhi Sadewa, Indonesia's Finance Minister, said that the country plans to tax coal exports between 1% to 5% in 2019. This is part of a drive to increase revenue for the state. According to data from the mining ministry, Indonesia was a major thermal coal exporter in 2013, with shipments of 555 millions metric tons. This is two-thirds of the total 836 million tonnes of production. Purbaya did not provide any further details on the implementation. He had said that coal export taxes could generate 20 trillion rupiah ($1.2billion) in revenue next year. Gita Mahayarani, executive director of the Indonesia Coal Miners Association, said that they hope there will be a threshold price for duties. She said: "We believe that this approach will allow the government to achieve its goal of increasing revenue while also ensuring the industry is not burdened with excessive costs, thereby maintaining operational sustainability." Exports of coal have been affected by the slower demand in China, a major buyer. Exports between January and October were down by 4% on an annual basis at 320.47 millions tons.
Stocks increase as US shutdown ends; tech niggles persist
The dollar held steady on Tuesday as global shares rose, boosted by the relief that the U.S. shutdown will soon be over. However, gains were moderated by persistent concerns about the valuations of the technology sector.
European shares rose early in trading. The gains were led by London's FTSE 100 which reached record highs. This was due to the pound falling after British employment data gave investors greater confidence that the Bank of England would cut rates next month in order to boost growth.
On Monday, the U.S. Senate approved a deal that will restore funding to the U.S. government after its longest-ever shutdown. The U.S. Senate will release an array of economic data on everything from jobs to industrial output, which could cause some volatility in the markets.
DATA DELUGE IS COMING
"Obviously, there's still a lot to be done about the shutdown." "The House must pass it, and given the arithmetic of that House, this seems pretty certain," Investec Chief Economist Philip Shaw said. He was referring to Republican majority in House of Representatives.
"The data flood is going to be an enormous market event." He said that one question to ask is whether data and analysis from the Fed are in line with each other.
Jerome Powell, the chair of the Federal Reserve, warned against making assumptions about a possible rate cut in December, not least due to uncertainty regarding key employment and inflation data.
STOXX 600 rose 0.6%, despite a 0.1% decline in S&P and Nasdaq Futures. This was against the backdrop of a weaker session in Asia.
SHUTDOWN COMPROMISE CLEARS SENATE
The agreement on the shutdown is now headed to the House. Speaker Mike Johnson said that he would pass it by Wednesday, and then send it to President Donald Trump for him to sign.
Prediction markets such as online Polymarket have almost fully priced-in for the end week.
According to UBP economist Carlos Casanova, the shutdown of nearly six weeks will likely have already reduced fourth-quarter GDP by between 0.4-1%.
The market, I believe, is repricing the rebound one quarter in advance.
The Nasdaq closed the day with its biggest daily gain since the middle of October, while the S&P 500 posted its biggest percentage gain in a single day since mid-October.
A basket of U.S. tech companies with AI links rose 2.8% on Monday, the largest one-day gain since May. SoftBank Group in Japan, which released its quarterly results on Monday, revealed that it sold its entire stake of Nvidia in October for $5.83billion.
STERLING WILT
The pound had the worst performance on the currency market against the dollar. The pound fell nearly 0.4%, to $1.3128. Data showed that British wage growth had slowed, and unemployment increased in the three-month period ending September. Separate data also showed that consumer spending in October had slowed.
The figures strengthen the argument for the BoE cutting rates next month. But they also reveal the uncertainty that is weighing down on British households, businesses, and the economy ahead of the annual budget due from Finance Minister Rachel Reeves on November 26. It is widely expected that the budget will contain even more tax increases.
The Japanese yen reached its lowest level since February at 154.49 per dollar before paring back some of this loss to trade at 154.355 during European hours.
Gold was comfortably above $4100 per ounce. Copper futures rose by 0.5% to $10.851 a ton, and Brent crude futures fell by 0.25% to $63.99 a barrel.
Veterans Day was a day when the U.S. Treasury Market was closed. (Additional reporting in Singapore by Tom Westbrook; editing by Kim Coghill, Alex Richardson and Alex Richardson).
(source: Reuters)