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Gold reaches near 2-week highs on US rate-cut bets
Gold reached a two-week high Wednesday after the Federal Reserve cut interest rates in December, bolstering expectations. The dollar also fell. As of 0241 GMT the spot gold price rose by 0.8%, to $4,161.10 an ounce. This is its highest level since November 14. U.S. Gold Futures for December Delivery fell 0.5%, to $4.159.00 per ounce. Tim Waterer, Chief Market Analyst at KCM Trade, said: "Expectations have shifted more in favor of a rate cut for December...the case has been strengthened by the chorus of dovish comments from Fed officials as well as benign economic data that is driving gold up from a yield standpoint." Data released Tuesday showed that U.S. Retail Sales increased less than anticipated in September. In the 12-month period ending in September, the Producer Price Index rose 2.7%, after increasing by the same margin last August. Recent dovish remarks by Fed policymakers preceded the release of these data. Investors bet that the top candidate for the Fed chair could guide policy in a dovish manner, making greenback priced bullion cheaper for other currency holders. The benchmark 10-year Treasury rates held close to the one-month lows reached in the previous session. Scott Bessent, U.S. Treasury secretary, said that the Fed's interest rate management system is in trouble and must be simplified. According to CME FedWatch data, the markets are pricing in a 84% chance that the Fed will cut rates in December. This is up from 50% last week. In low-interest rate environments, gold, which is a non-yielding investment, performs well. The U.S. Weekly Jobless Claims Report is due to be released later on Wednesday. In October, net gold imports from Hong Kong to China, the top consumer, fell by 64% compared to September. (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich) (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich)
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ASIA COPPER WOMAN-China suspends some new copper smelters and warns about negative processing fees
The vice president of China's nonferrous Metals Association said that the country has suspended plans to construct some new copper smelters. He also took steps to reverse the processing fees which have fallen below zero. Due to the rapid expansion of China's metal smelting industry, and the tight supply of copper ore globally, processing fees have fallen to negative levels. This means that smelters pay miners to mine ore rather than miners paying smelters fees to convert ore into metallic form. Capacity gluts have forced some countries to protest and cut production. China's Nonferrous Metals Industry Association Vice President Chen Xuesen announced at the World Copper Conference Asia 2025 that China had stopped working on 2 million metric tonnes of planned smelter capacities. He said that the growth of fixed asset investments in the industry has fallen to 0.4% compared to 23% at the beginning of the year. He said that the overheated investments in the industry are under control. In the future, China's new copper smelting capacities will be strictly limited. China's copper refinement and copper processing won't be pursuing the goal of volume." Chen warned that processing fees for the next year's supply contract should not be zero as negotiations between Chinese smelters, Antofagasta and copper mining giant Antofagasta begin. These talks established a benchmark for Chinese treatment and refinement charges (TC/RCs), also known as processing fees. These are traditional payments made by miners to the smelters. Chen stated that the China Nonferrous Metals Industry Association is against any negative or free processing of copper concentrate. We call on the global industry of copper to confront this unsustainable structural contradiction. The demand for COPPER substitutes is growing. Chen stated that the copper prices in China reached a record high of $11,200 a metric ton last October. While they have since dipped slightly, this elevated level is driving re-use of aluminium throughout the industry. He said that there was a lot of uncertainty about whether the market share and intensity of copper's use will grow over time. He said that copper consumption in electric cars has fallen from 60 to 80 kilograms per car in 2020 to between 50 and 70 kilograms (110-154 pounds) today. Copper in air conditioners has fallen by 67% from 2020 to 4 kg per unit. Reporting by Amy Lv and Lewis Jackson; editing by Himani Sarkar, Sonali Paul
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Oil prices stabilize after Ukraine peace talks drive them to a one-month low
The oil prices rose slightly on Wednesday after falling to a one-month low in the previous session. This was due to signs that Ukraine and Russia are close to a deal that will likely result in the lifting of the international sanctions against Russian supplies. Brent crude futures increased 19 cents or 0.3% to $62.67 a barrel as of 0114 GMT. U.S. West Texas intermediate crude futures increased 14 cents or 0.24% to $58.09 a barrel. The two contracts were settled at 89 cents each on Tuesday, after Ukrainian President Volodymyr Zelenskiy said in a speech to European leaders that he is ready to promote a U.S. backed framework for ending Russia's war and that there are only a few remaining points of disagreement. In a note to clients, Tony Sycamore, an IG analyst said that if the deal is finalized it could quickly dismantle Western energy sanctions against Russia. This would potentially drive WTI prices up to $55. The market is waiting for clarity. However, if the talks fail, it appears that prices will fall. U.S. president Donald Trump has said that he has instructed his representatives to separately meet with Russian President Vladimir Putin, and Ukrainian officials. A Ukrainian official stated Zelenskiy may visit the U.S. within the next few weeks to finalise an agreement with Trump. In a recent stepped up pressure campaign, Britain, Europe, and the United States tightened sanctions against Russia. And in December, India, a key oil buyer, is expected to reach its lowest level for three years. Expectations have increased for a possible interest rate reduction by the U.S. Federal Reserve in December, following economic data that showed lower retail sales and lower inflation. Lower rates will stimulate economic growth, which in turn will boost demand for oil. (Reporting and editing by Kevin Buckland; Colleen howe)
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Trump does not set a deadline for Ukraine and Russia to reach a peace agreement
On Tuesday, U.S. president Donald Trump backed off a deadline of Thursday for Ukraine to accept a U.S. peace plan. He said "the deadline is when this is over." Trump told reporters aboard Air Force One, as he was flying to Florida to celebrate Thanksgiving, that U.S. negotiators had made progress in their discussions with Russia and Ukraine and that Moscow had accepted some concessions. He did not specify them. The first report of a U.S. framework for ending the conflict, which was made last week, has prompted new concerns that the Trump Administration might be willing and able to pressure Ukraine to sign a deal heavily tilted towards Moscow. Trump announced that his envoy Steve Witkoff will be visiting Moscow to meet Russian President Vladimir Putin soon, and that Jared Kushner was also involved in the Gaza deal, which led to a tense ceasefire between Israel and Hamas. In recent days, Trump had designated Thanksgiving Day on Thursday as the date when he hoped to see Ukraine reach a deal with Russia to end the war in Ukraine. He and his advisers have now backed off from setting a deadline, and say that they want to reach an agreement as quickly as possible. Trump stated that Russia appeared to have the upper hand and that it was in Ukraine's interest to reach an accord. He said that Russia "might get some Ukraine territory anyway" in the coming months. Trump said that security guarantees were being discussed with Europeans. (Reporting and editing by Jeff Mason, Andrea Shalal and Cynthia Osterman).
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Two climbers, including an American, have died after falling from New Zealand's highest peak
Police said that the bodies of two climbers - including one American - were recovered on Wednesday after they fell to their death from New Zealand's tallest mountain during a summit bid. The four men, two New Zealand guides and two clients, were climbing Mount Cook or Aoraki (3,724 m/12,218 ft), when they fell off a ridge on the west side of Mount Cook late Monday. Police have not named any of the men. The authorities were alerted at 11:20 pm (1020 GMT) Monday. A search and rescue team found two uninjured members of the group in the early morning hours of Tuesday. Helicopters searched through the night, and found the bodies of the two climbers who had gone missing at 7 am on Tuesday. The bodies of the two climbers were found around midday. In a press release, Canterbury Aoraki area commander Inspector Vicki Walk said: "We can begin the process of reuniting these men with their families." "I would like to thank everyone involved in the recovery and rescue." It's been a tough time, especially for the families and wider community of the two climbers. Walker confirmed that one of the climbers is a U.S. citizen. In a press release, the New Zealand Mountain Safety Council stated that one of those who died was a mountain guide with international qualifications who was "respected as a valued member of guiding community". One of the men who died was a mountain guide with international qualifications. He was a "respected and valued member of the guiding community". Search and Rescue pilot Nigel Gee said to local news outlet 1News the two climbers were connected by a cord when they fell off the ridge. He said, "They both fell and may have gone about 1,500 feet down." Over the last century, Mount Cook has seen dozens of climbers die, as rockfalls and avalanches are frequent at higher elevations. Many more climbers have been killed in the nearby national park which is famous for its mountains, glaciers and avalanches.
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Asia stocks surge as Fed rate-cut betting boosts weak US data
The Asian stock market rose on Wednesday as it followed Wall Street's gains. Weaker-than-expected data on the economy fueled expectations that Federal Reserve would cut interest rates during its next policy meeting. MSCI's broadest Asia-Pacific share index outside Japan rose 1% after U.S. shares ended the previous session mildly up. Japan's Nikkei index gained 1.8% while U.S. futures stocks edged up by 0.2%. U.S. stock prices recovered lost ground following a selloff at the beginning of the month. The S&P 500 index and the Nasdaq Composite Index rose for the third day in a row on Tuesday, after data revealed that retail sales were lower than expected, and consumer confidence was down, which reinforced expectations that the Fed would ease its policy soon. Analysts from Westpac stated in a report that there was "a sea of green" across the major equity markets, with futures pointing towards a strong start for today's session on the local market. Analysts said that "Sentiment was boosted by the increasing odds the U.S. Fed will cut rates again in December following the decline in U.S. Consumer Confidence and the soft retail trade figures," Fed funds futures now price an implied 80.7% chance of a 25 basis-point cut during the next U.S. Central Bank meeting on December 10. This is compared to odds of even a week earlier, according to CME Group’s FedWatch tool. The yield on the benchmark 10-year Treasury note rose to 4.0037%, and last traded slightly higher than U.S. closing of 4.002%. This was after briefly falling below the 4% threshold for the first time in this month on Tuesday. Oil prices stabilized on Wednesday after a steep drop on Tuesday, as President Volodymyr Zelenskiy announced that Ukraine was prepared to move forward with a U.S. peace plan. This could pave the way for the lifting of Western sanctions against Moscow's energy market and the addition of more supply on the market. Brent crude futures increased 0.3% to $62.68, stabilizing after falling to a 5-week low on February 2, while European energy prices fell to their lowest level in an year and a half. Three OPEC+ sources stated that OPEC+ will meet on Sunday, and it is likely to keep output levels the same. The euro currency, which has gained 0.3% over the last month, was unchanged at $1.1564. The dollar increased 0.2% to 156.33 yen, and the dollar index (which tracks the greenback's value against other major trading partners) remained unchanged at 99.833. The sterling last traded at $1.3166, after four days' gains in anticipation of the UK budget due on Wednesday. The Finance Minister Rachel Reeves is likely to announce new tax hikes in order to maintain confidence on the financial markets, despite an expected downgrade of Britain’s economic prospects. The New Zealand Dollar surged by 0.9% to $0.5669, after the Reserve Bank of New Zealand reduced benchmark interest rates to 2.25% from 25 basis points and tempered its previous dovish guidance. Australian shares rose 0.7%, and the Australian Dollar strengthened by 0.2%. Consumer prices increased at a faster pace than expected in October, confirming bets on the end of the central bank’s easing cycle. Bitcoin rose 0.5%, to $87,438.53, while spot gold traded up 0.2%, at $4,131.78 an ounce. (Reporting and editing by Jacqueline Wong; Reporting by Gregor Stuart Hunter)
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Stocks rise, US yields fall on increased Fed expectations
On Tuesday, global stocks rose and were on track for their third consecutive session of gains. Investors remained confident that the Federal Reserve will cut U.S. rates at its meeting in December, while U.S. Treasury Yields fell. Alphabet, Meta Platforms and other gains on Wall Street helped U.S. stock prices close higher. Google's parent company closed at $323.44, a record high. It is now close to $4 trillion market capitalization. This would make Google the fourth company in history to achieve this milestone. The Information reported Meta Platforms' 3.78% gain as the largest lift for the S&P 500. The company is in negotiations with Google about spending billions on chips from Alphabet to be used in data centers beginning in 2027. Investors also parsed an avalanche of economic data. Some of it was delayed because of the 43-day U.S. shutdown. The Commerce Department reported that retail sales in September rose by 0.2% after an unrevised gain of 0.6% in August. This was below the 0.4% increase expected by economists surveyed by the. Labor Department reports that the Producer Price Index (PPI) for final demand rose 0.3% from an unrevised drop of 0.1% in August. This was expected, since energy costs increased and producers passed some tariffs on. ADP released more recent data Tuesday, indicating that private employers in the United States shed an average 13,500 jobs over the last four weeks. The Dow Jones Industrial Average climbed 664.18, or 1.4%, to 47,112,45. The S&P 500 gained 60.76, or 0.9%, to 6,765.88. And the Nasdaq Composite rose 153.59, or 0.6%, to 23,025.59. Since Friday, stocks have been rising after New York Fed president John Williams stated that interest rates could fall in the short term. Other policymakers however insisted on borrowing costs remaining steady. This boosted market expectations of a rate reduction. These expectations were further boosted on Monday by comments made by San Francisco Federal Reserve Bank president Mary Daly and Fed governor Christopher Waller, who both supported a December rate cut. Bill Merz is the head of capital markets research at U.S. Bank Wealth Management, Minneapolis. "We have data this morning with slightly softer employment markets. That should be a major consideration for Fed voting member, and I believe it is." These slightly softer labor markets confirm that this wasn't a one-off blip. Small-cap stocks also saw a boost from the increased expectations of rate cuts. The Russell 2000 closed up 2.14% for its third consecutive session. The trading volume will likely decrease as Thanksgiving Day approaches in the United States on Thursday. Markets will be closed on that day, and Friday's session will be abbreviated. MSCI's global stock index rose 9 points or 0.92% to 991.31; it was on course for its largest three-day percentage increase in over six months. The pan-European STOXX 600 closed up 0.91% on the back of the prospect of Fed rate cuts and optimism about a possible ceasefire in Ukraine. U.S. yields dropped after the influx of data. The benchmark 10-year U.S. note yield fell 3.4 basis points to 4.002%, after falling to 3.988%. This was its first time below 4% since the 29th of October. According to CME's FedWatch Tool, the markets are pricing in a 82.7% probability of a Fed 25 basis point cut at its meeting in December, a far higher percentage than the 50.1% they were predicting a week earlier. Fed Governor Stephen Miran stated in a TV interview that the state of the job market is deteriorating due to the Fed's short-term rate target. The dollar index (which measures the greenback versus a basket currencies) declined by 0.37%, to 99.83. Meanwhile, the euro rose 0.4%, at $1.15667. The pound strengthened by 0.47%, to $1.3164, ahead of the UK's budget announcement scheduled for Wednesday. Traders also piled into options markets in order to protect themselves from increased volatility. The traders have been watching closely for any signs of possible Japanese interventions in the yen. It has strengthened 0.53% to 156.09 dollars per yen but is down by 1.3% this month. U.S. crude oil settled down by 1.11% at $57.95 per barrel and Brent settled for $62.48 a barrel, down by 1.4%. This was after Ukraine indicated support for an American-backed framework to end the war with Russia.
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Trump wants to relax US regulations on coal-fired power stations
The Trump administration asked a federal judge to overturn the 2024 limits on soot for factories and power plants. It also delayed by three-years a deadline set for coal plants to remove coal waste. Critics have called these moves a clear retreat from public health protections. Soot is linked to cardiovascular disease and asthma. The EPA of President Joe Biden said that the stricter standard of 9 micrograms of CO2 per cubic meter last year would prevent more than 800,000. This included 2,000 hospitalizations and 4,500 premature death. Trump has pushed for the revival of coal. In a Monday filing, the EPA sided up with 24 states, led by Kentucky, and industry groups, including the National Association of Manufacturers, who had sued the regulator for reversing the 2024 standard regarding soot or fine particulate material, also known as PM2.5. Nearly 91% coal plants currently in operation already meet the new standard. The EPA announced a proposal on Tuesday to extend the deadline by three years for a few large coal plants that have coal-fired boilers to stop operation and to close coal ash impoundments without linings. The new deadline is October 2031, "to improve the reliability of the electric grid." The EPA is seeking comments until January 7th on the extension. In a statement, the EPA stated that the 2024 rule would cost "hundreds of million dollars if not billions" to American citizens if it were to be implemented. The EPA also said that this was not based upon a thorough review of science. In a press release, a spokesperson stated that "EPA will carry out a thorough examination as required by Clean Air Act". In March, the Trump administration targeted soot among dozens of other regulations that it intended to repeal. The agency announced in a series of press releases that it had taken more than 30 deregulation measures. Rolling back soot limitations would benefit the country's dirtiest power plants. The EPA claims that the only coal plant in the United States without pollution controls is the Colstrip Power Plant, located in Montana. Environmental groups criticized the decision to abandon the stricter EPA standard for soot. Hayden Hashimoto is an attorney with the Clean Air Task Force. He said, "EPA's move is a blatant effort to avoid legal requirements of a rollback. In this case, it was for one the most significant actions taken by the agency in recent years to safeguard public health." (Reporting and editing by Howard Goller, David Gregorio and Valerie Volcovici)
South Korea's HD Hyundai and Lotte Chemical present plan to restructure their petrochemical business
In separate regulatory filings, HD Hyundai and Lotte Chemical of South Korea have both submitted to the Industry Ministry a plan on restructuring their petrochemical business.
The companies stated that the plan will allow Lotte to spin off their business in Daesan, South Korea and merge it into HD Hyundai Chemical in order to reduce the overcapacity in nathpha cracking centres.
The plan is part of an industry-wide initiative to alleviate a glut in South Korea’s petrochemicals sector. In August, President Lee Jae Myung administration
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The sector is in a "crisis", and firms are being forced to reduce capacity by up to 25%. They claim that they need to increase efficiency and margins.
The goal was set by ten petrochemical companies at the time. They were then asked to develop their own plans.
Lotte stated that the merger would increase the efficiency and stability of their operations at the naphtha cracking centres. They did not elaborate. Both companies have said that they will adjust their business portfolios in order to concentrate on core businesses.
Lotte's facilities for cracking naphtha in Daesan can produce 1.1 million tonnes, while HD Hyundai has a capacity of 850,000.
HD Hyundai Chemical was created in 2014 as a joint venture between HD Hyundai Oilbank, Lotte Chemical and HD Hyundai Oilbank. (Reporting and editing by Ed Davies. Heejin KIM)
(source: Reuters)