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Stocks in the UK rise after Reeves' tax raising budget calms nerves
The UK stock market rose on Wednesday as financials and mining stocks gained, after Finance Minister Rachel Reeves unveiled a large tax-raising budget. The blue-chip FTSE 100 posted its best day for two weeks, closing 0.9% higher. The domestically-focused FTSE 250 rose 1.2%. It was its best day for more than a week. Reeves' budget will increase the tax burden on workers, pensioners and investors in order to meet her borrowing target. Release First reported by The Office for Budget Responsibility reported that the remaining headroom in five years would be approximately 22 billion pounds (28,9 billion dollars). UK 30-year gilt rates, which are more sensitive to fiscal long-term concerns, fell by 10.5 basis points to 5.21% in the biggest one-day decline since April. This suggests that investors were generally satisfied with the budget plan. Fiona Cincotta is a senior market analyst with City Index. She said, "The market is reacting very strongly to the fact that she has increased her fiscal cushion... She has almost doubled it. This is something that market really latches onto and is calming the bonds market." Standard Chartered and Barclays both gained 2.1% after the budget exempted banks from new targeted taxes. Gold prices rose to their highest level in over a week as a result of positive U.S. data that reinforced expectations for a Federal Reserve rate cut next month. Hochschild gained 6 percent, Endeavour Mining rose 4.8% and Fresnillo gained 5.2%. The rise in copper prices led to a gain of about 1.5 percent for industrial miners. Anglo American and Antofagasta both rose by 3.2% and 2.1% respectively. Homebuilders fell 1% following the budget increase on Wednesday. Berkeley group fell 2.9%. The renewed discussion of a Russia/Ukraine peace agreement was also in the spotlight after Ukrainian President Volodymyr Zelenskiy indicated his willingness to move forward with a framework backed by the United States to end this war. Aerospace and Defence stocks rose, with BAE Systems rising 1.4%. Diageo, for example, lost 1%.
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Canada: Teck-Anglo merger subject to national security review
Melanie Joly, Minister of Industry for Canada, announced on Wednesday that the merger between Anglo American Resources and Teck Resources would be subject to a review by Canada's national security agency. Joly said Ottawa will also make a final decision within the next few months. She told reporters via a teleconference that "the national security review of any transaction is always a part of the procedure... we are following the process." Teck shares were up 1% at midday in Toronto. Anglo American's shares closed Wednesday with a 2.4% gain at the London Stock Exchange. A proposed deal worth $53 billion, which is one of the largest in the mining sector, would create an industry giant. The deal is huge and requires approval from several regulators including Canada. Top management of both companies proposed moving the combined headquarters to Vancouver, while maintaining a dual listing. Ottawa, however, has demanded more. They want investment into the country, and job security. According to the Investment Canada Act the national security review would examine the impact that the transaction could have on critical minerals and their supply chains. Canada considers copper to be a critical metal. Teck produces germanium which is on the list of critical minerals. Canada amended the ICA by 2024 in order to tighten the rules surrounding any large foreign acquisitions of its domestic firms and their potential impact on national safety. Teck is the owner of the Highland Valley Copper Mine in Canada. The Anglo-Teck merge combines mainly the copper assets of the two companies in Chile. Teck shareholders will vote on the merger in December. The proxy advisory firm ISS advised Anglo American shareholders to vote for the merger on Wednesday. Reporting by David Ljunggren, Ottawa; Divyarajagopal, Toronto; editing by Bill Berkrot
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Gold reaches a new high after a week-long peak amid hopes for lowered Fed rates
On Wednesday, gold prices were near a one-week-high after the expectation that the U.S. Federal Reserve would lower interest rates in January kept non-yielding metals a favourite asset. At 10:50 am, spot gold was up by 0.8% to $4,161.42 an ounce. ET (1550 GMT), having reached its highest level since November 14, earlier in the session. U.S. Gold Futures for December Delivery rose by 0.4% to $4158.80 an ounce. Edward Meir of Marex, a Marex analyst, said that the focus had shifted from the dollar to a reduction in interest rates for December. He noted gold's increase despite the dollar index remaining steady. Rate-cut bets are "helping gold a little, as is the talk they might nominate a Fed Chairman soon and the front runner Kevin Hassett of the Economic Advisory Committee of the President." Hassett has stated, along with U.S. president Donald Trump, that interest rates should lower than what they are now under Fed chair Jerome Powell. This news gave a boost to gold, which is a non-yielding investment that thrives in an environment of low interest rates. The CME FedWatch tool revealed that traders see 83% of the chance of a Fed cut in rates next month compared to just 30% a week earlier. The number of Americans who filed new claims for unemployment benefits dropped last week. This indicates that layoffs are still low, but the labor market struggles to create enough jobs to accommodate those without a job amid the lingering uncertainty of the economy. The U.S. consumer's confidence also declined in November, as consumers became more worried about their jobs and financial prospects. These data were released in response to a recent series of dovish remarks from Fed policymakers. Most research banks expect gold to exceed $4,000 an ounce by 2026. Deutsche Bank raised its gold forecast for 2026 to $4,450 per ounce, up from $4,000 citing stable investor flows and persistent demand by central banks. Silver spot rose by 2.2%, to $52.52, platinum gained 0.8%, to $1,565.20 and palladium increased 0.6%, to $1,405.76. (Reporting and editing by Sahal Muhammad and Krishna Chandra Eluri in Bengaluru, and Anjana Anil from Bengaluru)
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ASIA COPPER WOEEK-Codelco’s record China copper deal sparks threats of walking away, sources say
The relevance of the benchmark to Chinese buyers is being questioned Three Chinese customers have said they are willing to walk out. Amy Lv, Tom Daly and Lewis Jackson SHANGHAI/LONDON - Codelco, the Chilean copper giant that offers record-high prices to Chinese copper buyers is leading some to announce they will not sign the term contracts for next year as concerns grow over the relevance of this benchmark to Chinese buyers. Codelco's premium is often used to reference global copper supply contracts. Codelco is by far the largest copper producer in the world, and China is its largest consumer. According to three sources with knowledge of the situation, Codelco only offered Chinese buyers a premium of $350 per ton over London Metal Exchange rates. This is a significant increase from the $89 per ton that was agreed upon during negotiations last year. One source said that the offers were on a "take it or leave it" basis. Decisions are expected to begin next week. Sources with knowledge on the subject say that at least three Chinese customers of Codelco have indicated they are willing to opt out of term contracts and instead opt for spot deals this year. When asked about the premium, a fourth customer who has not yet received an offer said: "Who would buy at this price?" Codelco didn't immediately reply to questions emailed about the offers. The willingness of delegates to forgo the closely-watched term deals highlights growing questions among delegates gathered at the World Copper Conference Asia in Shanghai about the benchmark's relevancy for China. Three traders said that the high premium is partly due to how easily Codelco's cargoes are delivered to the U.S. Comex, where the forward prices for the next year are hundreds more than the LME. Three traders said that the trades were difficult for Chinese buyers and suggested that the premium was instead aimed at large trading houses. A fourth source, however, said that lower offers will only encourage Chinese buyers who are interested in exporting their cargo to the U.S. to sell to traders. The commercial nature of the issue made it necessary for all sources to remain anonymous. Chinese customs data show that China's imports from Chile of refined copper have been steadily declining since 2023, both in absolute value and as a percentage of total imports. Fears of a copper shortage next year led to a spike in LME copper prices to an all-time high of $11,200 per ton at the end of October. As of 0703 GMT, the metal was trading at $10 868 per ton. Codelco is the largest copper miner in the world. It has offered to pay its European customers a record premium of $325 per ton for 2026. This represents a 39% increase year-over-year.
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Sweden grants green steel startup Stegra $41 million in funding
Sweden announced on Wednesday that it has granted 390 million crowns (41 million dollars) to green steel startup Stegra, as the Swedish firm gathers new funding to complete its facility in the north. The Swedish Energy Agency stated that the project had the potential to accelerate the transformation in the iron-and-steel industry. The authority stated that the support will increase Stegra’s chances to secure the additional capital needed. Stegra, who last year announced it had secured loans worth 6.5 billion euro ($7.5 billion) and equity, announced in October it was raising $1.1 billion to complete a plant which will use hydrogen produced on site from renewable electricity for its production. The energy agency said that "the support for Stegra is contingent on the company being in a position to demonstrate by spring 2026, at the very latest, that it has managed to secure enough capital to complete the Project." Sweden is leading Europe in its efforts to transition from fossil fuels to non-polluting electricity. But, the green shift also faces challenges, including the bankruptcy of Northvolt, a battery manufacturer. Henrik Henriksson, CEO of Stegra, said that his company has secured about half the money it needs. He expects the banks to provide the remaining funds within six months. He added that extra cash from the Swedish government would send an important signal to investors and banks that Sweden supported the project. STEGRA SAYS NOW IT CAN TAKE "NEXT STEP" Stegra received 1,2 billion crowns in a package of financial support that was agreed upon between Sweden and the European Union. A further 1.6 billion crowns of the package were withheld. Stegra has applied to the agency for this money again, but only part of it was received. Stegra wrote in written comments on Wednesday that "despite the gap between what the government asked for and what EU approved, we can take the next steps together with the financiers." This project is a leveler in comparison to other projects in Sweden or Europe.
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Apple sued by US group over Congo conflict minerals
Apple has denied the allegations, but a U.S. advocacy group filed a suit in Washington. The lawsuit accuses Apple of using minerals that are linked to human rights violations and conflict in the Democratic Republic of Congo (DRC) and Rwanda. International Rights Advocates, a group based in the United States, has sued Apple, Tesla and other tech companies over cobalt sourcing. However, U.S. court dismissed this case last year. In December, French prosecutors dropped Congo's conflict mineral case against Apple subsidiaries citing a lack of evidence. An investigation is ongoing in Belgium into a criminal complaint related to this issue. Apple has denied all wrongdoing as a response to Congo's suits, saying that it had ordered its suppliers to stop sourcing material from Congo and Rwanda. Apple did not respond immediately to requests for comments on the latest complaint. In a complaint filed Tuesday at the Superior Court of the District of Columbia, IRAdvocates - a Washington nonprofit that uses litigation to curb rights abuses - said that Apple's supplier chain still contains cobalt and tantalum, which are linked to forced and child labour, as well as to armed groups from Congo and Rwanda. CONGO IS a major source of COBALT and TIN The lawsuit asks the court to determine that Apple's conduct is in violation of consumer protection laws, an order stopping alleged deceptive advertising, and reimbursement for legal costs. It does not request monetary damages, or class certification. The lawsuit claims that three Chinese smelters - Ningxia Orient JiuJiang and Jiujiang Tanbre - processed coltan, which U.N. investigators and Global Witness claim was smuggled via Rwanda after armed group seized mines on the eastern Congo. This material is then linked to Apple's supply chains. The lawsuit claims that a study by the University of Nottingham published in 2025 revealed forced and child labor at Congolese sites connected to Apple suppliers. Requests for comment from Ningxia Orient JiuJiang JinXin, and Jiujiang Tanbre were not immediately responded to. Congo, which provides about 70% of world cobalt, and significant quantities of tin tantalum, and tungsten (used in computers, phones, and batteries), did not respond immediately to a comment request. Rwanda did not respond immediately to a comment request. 'NO REASONABLE BASE FOR LINKS WITH ARMED GROUPS.' Apple has denied using minerals from conflict zones and forced labour repeatedly, citing audits as well as its code of conduct for suppliers. In December, Apple said that "no reasonable base" could be found to conclude that any refiners or smelters in its supply chain funded armed groups in Congo and neighbouring countries. Authorities in Congo claim that armed groups are using mineral profits from eastern Congo to fund the conflict, which has resulted in thousands of deaths and hundreds of thousands being displaced. They tightened controls over minerals to choke funding and squeeze global supplies. Apple claims that 76% of the cobalt used in its devices will be recycled by 2024. However, IRAdvocates alleges that its accounting method includes ore from conflict areas.
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Gold reaches a new high after a week-long peak amid hopes for lowered Fed rates
On Wednesday, gold prices were near a one-week-high after investors expected that the U.S. Federal Reserve would lower interest rates in January. At 9:25 am, spot gold was up by 0.3% to $4,144.06 an ounce. ET (1425 GMT), having reached its highest level since November 14, earlier in the day. U.S. Gold Futures for December Delivery were unchanged at $4,140.30 an ounce. Edward Meir of Marex, a Marex analyst, noted that gold was rising despite the dollar index increasing by 0.2%. Rate-cut bets are "helping gold a little, as is the discussion that they might nominate a Fed Chairman soon and the front runner Kevin Hassett of the Economic Advisory Committee of the President." Hassett has stated, along with U.S. president Donald Trump, that interest rates should lower than what they are now under Fed chair Jerome Powell. This news has given a boost to gold, a non yielding asset that thrives in an environment of low interest rates. The CME FedWatch tool revealed that traders see 83% of the chance of a Fed cut in rates next month, as opposed to 30% one week earlier. The number of Americans who filed new claims for unemployment benefits dropped last week. This indicates that layoffs are still low, but the labor market struggles to create enough jobs to accommodate those without a job amid the lingering uncertainty of the economy. The U.S. consumer's confidence fell in November, as consumers became more worried about their jobs and financial prospects. These data were released in response to a recent series of dovish remarks from Fed policymakers. Most research banks expect gold to exceed $4,000 an ounce by 2026. Deutsche Bank raised its gold forecast for 2026 to $4,450 per ounce, up from $4,000 citing stable investor flows and persistent demand by central banks. Silver spot rose 1.5%, to $52.19 an ounce. Platinum was up 0.6%, at $1,562.96, and palladium gained 0.7%, to $1,407.50. (Reporting and editing by Anjana Anil in Bengaluru, Noel John at the New York Times)
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Mamdani's reaction to the NYC comptroller's decision to drop BlackRock is a test for Mamdani
Brad Lander, New York City Comptroller, is urging pension fund officials in the city to rebid $42.3 billion to BlackRock due to climate concerns. This is the first major step taken by a Democrat against pressure from Republican allies who support the fossil fuel industry. Lander's tenure in office ends Dec. 31. But his recommendation announced on Wednesday could put Mayor elect Zohran Mamdani under pressure when he assumes office in five weeks. BlackRock has indicated that it will try to retain the business. Mamdani’s appointees are in key positions and will have some influence over the pension boards, which decide where to invest retirement money for 800,000. Lander, in a memo he sent to other trustees of pension funds on Nov. 25, urged them to reevaluate their contracts with New York's BlackRock. BlackRock is the largest asset manager in the world and also the largest manager of retirement assets for the city. Lander pointed to what he described as "BlackRock’s restrictive approach to engaging" with approximately 2,800 U.S. firms in which the company owns more than 5 percent of shares. 'Abdication of Financial Duty' BlackRock, under pressure from the Trump Administration in February, said that it would not try to control businesses through its discussions with executives. This was contrary to Lander's and other investors who were environmentally conscious, as they wanted to pressure executives to disclose emissions. Lander stated in an interview that the change is "an abdication from financial duty" and makes them incapable of meeting our expectations regarding responsible investing. The pension boards, which traditionally follow the lead of the comptroller’s office, must still approve his recommendation. Mamdani's representatives did not answer any questions. Mark Levine, Lander's successor, was represented by a representative who said that he would review the recommendations. Lander, who was a rival of Mamdani's during the mayoral race, but became an ally, recommended to the pension plans that BlackRock continue managing non-U.S. index mandates, and other products. Lander recommended that the three systems continue to use State Street for managing $8 billion of equity index assets and drop their deals with Fidelity Investments or PanAgora. He said they also did not push companies enough on environmental issues like decarbonization. Armando Senra is the Head of Americas Institutional Business at BlackRock. In a letter sent to Lander by a BlackRock spokesperson, Senra said that Lander's claim that BlackRock had abdicated their financial responsibility and placed pensions in danger due to climate change was "another instance of the politization of public pension funds which undermines retirement security for hardworking New Yorkers." Senra stated that if the pension officials accept Lander's recommendations, "we are looking forward to demonstrating our breadth and depth and the tremendous value" we provide to the city and public servants. Other fund managers didn't immediately comment. WASHINGTON PRESSURE A number of Republicans, some from fossil-fuel-producing states, have withdrawn money from BlackRock and other money managers, accusing them of basing investment decisions on social or environmental issues. New York City funds are the first major asset owners with a liberal or Democratic lean to do so. Lander confirmed earlier reports that he was "seriously" considering a run for Congress in the next election year. He said, however, that his recommendation about BlackRock had "nothing to do" his future plans. Lander noted that 46 out of 49 fund managers in the city had decarbonization plans that met his expectations. Richard Brooks, director of the climate finance program for environmental advocacy group Stand.earth via email on Wednesday, praised Lander’s plan to drop BlackRock. Brooks stated that it was important for the pension trustees to take action, including those appointed by the mayor.
Stocks rise on expectations of Fed cuts, but sterling is choppy due to budget surprises
The global stock market rose for the fourth consecutive day on Wednesday, as expectations of a Federal Reserve interest rate cut were unchanged. Sterling was also affected by Britain's fiscal regulator accidentally publishing new forecasts ahead of a UK Budget release.
Wall Street stocks are higher at the start of trading. Nvidia, the AI heavyweight, is leading the way, after it recovered from a drop of 2.6% in the previous session, and three consecutive declines.
The stock market has rallied since last Friday when the expectation of a Federal Reserve rate cut in December soared after New York Fed president John Williams stated that interest rates could fall in the short term, even though other policymakers insist borrowing costs should stay the same for the time being.
These expectations were reinforced by comments made by San Francisco Federal Reserve Bank president Mary Daly, and Fed Governor Christopher Waller supporting a December reduction.
The economic data released on Wednesday revealed that weekly initial claims for unemployment benefits dropped by 6,000, to 216,000 seasonally-adjusted claims in the week ending November 22. This is the lowest level of jobless claims since April. It also falls below the estimate of 225,000 economists polled.
The economy is not in recession but it is weak enough for the Fed to make another cut. The Fed has the headroom to make more cuts because there are still many people on unemployment.
The Dow Jones Industrial Average increased by 236.67 points or 0.50% to 47,349.12; the S&P 500 gained 35.19 points or 0.52% to 6,801.07; and the Nasdaq Composite advanced 128.11 points or 0.56% to 23,154.97.
According to CME's FedWatch Tool the expectation of a 25 basis-point cut by the Fed is at 82.9%. This is down from 85.2% the previous session, but still well above the 30% from last week.
The U.S. market will be closed Thursday, November 22, for Thanksgiving. On Friday there will be a reduced session.
The MSCI index of global stocks rose 7.76 points or 0.78% to 998.82, and was on track for its fourth consecutive session of gains. This is its longest streak of gains in a month. The pan-European STOXX 600 rose by 0.97%, and is on pace for its largest daily percentage gain since two weeks.
The dollar index (which measures the greenback in relation to a basket) fell by 0.2%, reaching 99.65. Meanwhile, the euro rose 0.17%, hitting $1.159.
The sterling strengthened by 0.43%, to $1.3223. Currency fluctuated between 0.5% and 0.11% in response to the UK budget confusion, as the Office for Budget Responsibility released its Economic and Fiscal Outlook early.
The British Finance Minister Rachel Reeves announced an ambitious tax hike budget, which will raise more money from employees, pensioners and investors in order to achieve her deficit reduction targets.
The yield on ten-year gilts was last down by 7.1 basis points to 4.424%.
The Japanese yen fell 0.27% to 156.48 dollars per dollar, even though sources said the Bank of Japan was preparing the markets for an interest rate hike that could happen as early as next month. It may be necessary to adopt a more consistent path of rate hikes to change the currency's trajectory.
After four sessions of declines, the yield on U.S. benchmark 10-year notes increased by 1.5 basis points at 4,017%. This was after data showed that new orders of key capital goods manufactured in the United States surged and that shipments of this goods also increased. Data had been delayed because of the prolonged government shutdown.
(source: Reuters)