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Gold prices rise ahead of Fed rate-cut decision and key US employment data
Gold rose on Tuesday as traders were optimistic about the U.S. Federal Reserve's rate decision scheduled for Wednesday. They also looked forward to the U.S. Job Openings Report, which will provide further insight into the strength of the labor market. Gold spot rose by 0.1%, to $4.193.14 an ounce at 0922 am. ET (14.22 GMT), having fallen to its lowest levels since December 2. U.S. gold futures for delivery in February also increased by 0.1%, to $4,222.20 an ounce. Gold is expected to rise by a further?25 basis-points, which is generally a bullish sign. Bob Haberkorn, senior market strategist at RJO Futures, said that the market is still strong and could reach new highs following the Fed's announcement. Today, the Fed begins its two-day meeting on policy. The Fed will make a final decision by Wednesday. New data shows that inflation is stubbornly above the Fed's target of 2%, and secondary indicators suggest the once-red hot labor market has cooled in certain sectors. The traders now expect a cut of 25 basis points this week. Investors will also be watching for the release of the October JOLTS report at 10 a.m. ET on Tuesday to gauge?labour market conditions. The October JOLTS Report will be released at 10 a.m. ET on Tuesday to assess the?labour markets conditions. If the job openings report is softer-than-expected, gold could rally, Haberkorn said. Silver rose 1.1% to $58,78 an ounce, nearing the record high of $59.32. Historically, we have gone lower than 40 ounces. Maria Smirnova is the chief investment officer and senior portfolio manager at Sprott Asset Management. In order to purchase an ounce gold, you need 71 ounces silver. The October figure was 82 ounces. Smirnova continued, "Metals have a volatile nature. But unless we address the deficit, there is only one direction for silver, which is up." Palladium increased 0.6%, to $1474.28/oz. Platinum rose 0.1%, to $1646.03/oz. (Reporting and editing by Vijay Kishore in Bengaluru, with Sarah Qureshi reporting from Bengaluru.
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Tinubu approved Tinubu's troops deployment to Benin Republic following coup attempt
The Senate of Nigeria approved President Bola Tinubu’s deployment of troops to Benin Republic on Tuesday after Benin’s government asked for assistance from its larger neighbour on Sunday. Tinubu wrote to legislators that Benin had requested "exceptional and urgent air support" from Nigerian armed forces following a report of an "attempted unconstitutional seizure and disruption of democratic institution." According to Nigerian law?the president is required to seek Senate approval before deploying troops into a foreign country. Benin's Government said on Monday that Nigerian fighter jets carried out airstrikes in order to?thwart an attempted coup by mutinying troops who tried to seize President Patrice Talon. Tinubu emphasized Nigeria's commitment towards regional security, its "close ties of friendship and brotherhood" with Benin as well as the principles upheld by Economic Community of West African States. Tinubu urged legislators to act "immediately"?to support stability in Benin. Benin shares a 700-kilometer border with Nigeria, Africa's most populous nation. Omar Alieu Touray, the President of ECOWAS Commission, said that the bloc was facing a number of problems, such as coups and jihadist attacks. Touray said at a meeting of the ECOWAS Mediation and Security Council?in Abuja that it was safe to declare a'state of emergency' in our community. ECOWAS has deployed its standby force to Benin after it condemned the attempted takeover of power in the West African nation. (Reporting and writing by Camillus Eboh, Chijioke Ahuocha, Editing by Hugh Lawson).
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Three people are charged in Kosovo for a canal explosion that threatened power plants
Kosovo's state prosecutor announced on Tuesday that three suspects were charged over a?explosion? last year in a water 'canal' supplying the 'two main' 'power plants of the country. In a press release, the statement said that the suspects had allegedly detonated TNT in the canal. This caused damage to the concrete structure of the canal and cut off drinking water. It also disrupted the cooling system for coal-fired plants. Fears of a possible power outage were raised. The three men were identified by their initials: J.V. D.V. and I.D. They face charges including endangering constitutional order, terroristism, and espionage. Sources at the prosecutor’s office said that all three men were ethnic Serbs, and had already been arrested. The prosecutor said that J.V. is a suspect who 'works for Serbia Military Intelligence Service. Belgrade has denied the claim that Serbia orchestrated the explosion. The blast occurred in Kosovo's volatile north, where the majority of residents are ethnic Serbs, who reject Kosovo's 2008 independence declaration. The Kosovo Police have increased patrols near the canal. (Reporting and editing by Ros Russell, Fatos Bytyci)
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Argentina will lower its grain export taxes and boost the farm sector's support for Milei
The economy minister announced on Tuesday that Argentina would lower export taxes for grains, including soybeans and corn. This move will be welcomed by the farming sector, which has been one of Javier Milei's strongest supporters. Milei, who is running for president, has promised Argentine exporters he will cut?taxes. However, he warned him that he would have to do this in stages in order to avoid a sudden?decrease in tax revenue. In a blog post, Economy Minister Luis Caputo announced that the levy on exports of soybeans would be reduced to 24%, from 26%. Byproducts of soybeans will now be taxed 22.5% instead, compared to?24.5%. Export levies on soybeans and byproducts of soybeans were 33% at the start of Milei's tenure, around two years ago. Argentina is one of the largest soybean oil and meal exporters in the world. It's also the third-largest exporter for corn and a major global supplier of wheat. Export taxes for wheat, barley and corn will be cut from 9.5% to 7.5%. Caputo stated that "today, we are taking a step forward in the direction of tax relief for agriculture. We will be moving ahead on a permanent reduction of export duties on grain and byproduct chains." A source in the Argentine govt. said that the measure would take effect once it was published in the Official Gazette of the country in the next few days. Gustavo Idigoras of CIARA, the chamber of grain exporters and 'processors, said that the agricultural sector "valued" the decision. He said that it was important to keep making progress in reducing tariffs. The local farmer's confederation CRA also welcomed the measure. Carlos Castagnani, its president, said that it was "a first step to restore profitability in the sector". Reporting by Aida Pelaez-Fernandez, Maximilian Heath and Mark Potter; editing by Gabriel Araujo and Jan Harvey
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Standard Lithium JV attracts over $1 billion of funding interest for Arkansas Project
Smackover Lithium, the joint venture between Standard Lithium and Equinor announced on Tuesday that it had attracted more than $1 billion of financing interest for its southwest Arkansas Lithium project. Three export credit agencies including EXIM, Export Finance Norway and Export Finance Sweden have expressed interest in providing debt financing to the project. Standard Lithium's U.S. listed shares rose 5% during premarket trading. The joint venture seeks up to $1.1billion in senior secured debt for the majority of the $1.45billion cost of constructing the first phase of the project. Export credit agencies would provide loans and guarantees, while commercial banks would also add debt. Standard Lithium was awarded a grant of $225 million by the United States earlier this year. Department of Energy has given Standard Lithium a boost in its competition with Exxon Mobil for the title of first lithium producer in Arkansas, where one of North America’s largest deposits of battery metal is located. The?joint-venture, formed in May 2024 is developing direct lithium extraction projects, in which Standard Lithium holds 55% of the shares and operates the projects, and Equinor the remaining 45%. (Reporting and editing by Sriraj Kalluvila in Bengaluru)
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Tusk: EU approves state aid to Poland's first nucleus plant
Donald Tusk, the Polish Prime Minister, said that the European Commission had agreed to allow Poland to provide state aid for the construction a?country's?first nuclear power plant. In a press release, the European Commission confirmed that it had approved state aid. Westinghouse Electric was chosen by Poland to build its first nuclear plant on the Baltic Sea Coast. Poland plans to start construction on the first unit in 2028, and complete it by 2036. Tusk stated that "we will have a confirmation soon" from the European Commission that it is willing to provide state aids for the construction in Poland of a nuclear plant. We have received the entire amount of funding, which is 60 billion zlotys (16.51 billion dollars). The first 4.6 billion zlotys of treasury bonds will be delivered to the interested party in December, i.e. this year. Tusk said that the European Commission’s approval was necessary for the launch of?the Polish nuclear programme. He said: "We'll?indeed? be able? to begin construction? with enough momentum so that?electricity? from the first nuclear plant in Poland? can flow as soon as possible?."
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Critical Metals and Romania's FPCU partner to establish rare earth processing facility
Critical Metals announced on Tuesday that it would form a joint-venture with FPCU, a Romanian company. The two companies will set up a facility to process 'rare earth minerals' from the Tanbreez mine of Critical Metals. In premarket trading, shares of the company increased by 4%. The company has said that it will supply half of the Tanbreez Project's?rare-earth concentrates to the Romanian joint venture for the entire?lifespan?of the mine, at "mutually agreeable competitive market terms". Tanbreez is a critical project as it provides an alternative source for heavy rare earths, which are vital to the production of electric vehicles, windmills, and defense. Western nations are working to reduce their dependence on China to obtain these essential resources. The Romanian facility will help create a supply chain focused on Europe for rare earths. This will reduce the region's dependence on China, who dominates more than 80% global processing. Tony Sage, CEO of Critical Metals, said: "We are not simply building a facility - we are dismantling China's stranglehold over rare earths. We will empower Europe with secure supplies." The company said that the plant would produce aerospace and military magnets. The company announced in October that it would raise $50m through a private investment in public equity deal (PIPE) with an institutional investor in order to develop its Tanbreez Rare Earth Deposit in Greenland. (Reporting and editing by Katha Kaalia in Bengaluru)
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Russell: China's steel exports are up, but its aluminium shipments are down.
Exports of Chinese steel products are surging this year as the domestic market, particularly in property development, is slumping. However, those of aluminum have fallen due to increased activity in the manufacturing and energy sectors. China is the largest producer of steel and aluminum in the world. Beijing has set informal ceilings for production in both sectors in order to'rein in the overcapacity. Informally, steel production is limited to no more than 1.005 billion tons of previous year. Given that production for the first ten months of this year was 817.87 millions tons, 2025 production will likely dip below 1 billion tonnes, which would be the first time since 2019. Steel mills are trying to compensate for the soft demand by increasing exports. Customs data released Monday shows that China's steel exports rose 6.7% in the first eleven months of this year, to 107.72 millions tons. If December exports are on par with the average of the year, then China's steel shipment will be around 117 million tons. This would be a record, surpassing the 112,39 million tons in 2015. Steel mills are currently able to benefit from exports as domestic prices have been near their lowest levels in five years. On Monday, Shanghai exchange rebar ended?at $312 yuan (about $442.43) a ton, after trading mostly sideways, since the low of 3012 yuan that was hit early June. Chinese steel is priced competitively against other benchmarks. LME contracts for?Turkish Rebar ended at $560.50 per ton last Thursday. China has been able to increase steel exports, despite the fact that several countries have placed tariffs on imports to protect domestic producers. Buying cheaper Chinese steel is a good idea, as much of China's production goes to other Asian nations, particularly those with limited steel production. ALUMINIUM SLUMP China's exports of refined aluminum and its products, which have fallen by 9.2% in the first 11 month of the year, totalled 5.59 million tonnes. China's aluminum production is expected to be very close to its 45 million ton limit, with more metal needed for the country's manufacturing sector and energy sector. Loss of Chinese aluminum on global markets pushed benchmark London prices to $2,920 per ton in December 5th. This was the highest price since May 2022. The contract has increased by 27% from its early April 2025 low price of $2,300. The rising prices of energy have helped Western smelters who have been struggling to stay competitive over the past few years. This is especially true for those based in Europe and Australia. Beijing's annual aluminum output cap of?45million tons will likely tighten the global supply in 2026. It is a question of whether China's steel industry will follow the footsteps of aluminium. It will depend on the speed of recovery in domestic demand if Beijing limits annual steel production at a maximum 1 billion tons. So long as the construction industry is a drag on China's economy, steel mills are likely to continue trying to export their way into profitability or reduce capacity by retiring old furnaces. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
The global government bond market is stable after the recent selloff. A major Fed meeting looms.
On Tuesday, the global bond sale paused a bit and stocks began to drift as traders focused on the Federal Reserve meeting that was to be held next week. They also considered the potential implications of the U.S. permitting Nvidia’s second-best chip to be exported to China.
The Reserve Bank of Australia also?held? rates steady on Tuesday as expected, but it was more notable that they ruled out any further policy easing, and warned that the next step could be upwards if inflation pressures are stubborn.
The Australian dollar was just a few cents shy of its near three-month peak.
Bank of Canada, Swiss National Bank and both are expected to keep rates unchanged when they meet respectively on Wednesday and Thursday. However, comments made by Isabel Schnabel, a member of the European Central Bank's board of directors, have caused a stir, despite ECB not deciding policy until next Monday.
She warned that if rates are left unchanged too long, it could lead to a passive easing in monetary policy.
These remarks caused yields for German government bonds of all maturities to rise on Monday by the most in recent months. They also increased yields for U.S. Treasury Bonds.
The 10-year German benchmark rate was around a 9-month high at 2.84%. Meanwhile, the 10-year Treasury Rate fell by a similar amount to 4.15%.
Stocks also appeared to be?fairly calm. European and U.S. stock futures both rose a little bit on the day. Asian stocks, however, fell.
FED IN FOCUS
The Fed's meeting on Wednesday will be interesting because of the impact that worries about Japan's fiscal situation have had on Japanese government bond rates.
Investors should be aware of more than just the 25 basis point rate reduction.
"I think the markets could be shocked by the Fed chair Powell's tone and the summary of the economic projections," said Erica Camilleri, senior macro global analyst at Manulife Investment Management.
They will also reveal whether the next Fed chairman will be a nervous body about future rate cuts or happy to follow President Trump's wish for looser policies.
Kevin Hassett, White House Economic Advisor and top candidate for the Fed chair role, stated in an interview that interest rates should be continued to fall.
This raises questions about the Fed's future operations.
What happens when we consider 2027 and '2028? Does this Federal Reserve raise rates when we see an acceleration in growth? Is this a Federal Reserve with an easing bias? "Even if we have a reacceleration of growth and inflation, they will stay at the same rate?" said Camilleri.
NVIDIA RISES ON CHINA SALES NEWS
Investors also tried to understand the implications of U.S. president Donald Trump's statement that Washington would?allow Nvidia H200 processors, Nvidia’s second-best artificial Intelligence chips, to export to China, and collect a 25 percent fee on sales.
Nvidia shares rose around 2% during premarket trading, but Chinese tech stocks fell both onshore and in Hong Kong. Hong Kong's Hang Seng Tech Index lost almost 2%.
The currencies were also fairly stable. The euro was last worth $1.1649 and little has changed. Higher European yields are being matched by higher U.S. yields, while sterling is 0.22% higher, at $1.3347.
The yen remained flat at $156.1 per dollar, after initially weakening in the aftermath of a powerful earthquake which rocked Japan.
Oil prices in commodities stabilized after a 2% drop in the previous session, as participants in the market kept an eye on talks to end Russia’s war in Ukraine.
Brent crude futures fell 0.2% to $62.3 per barrel. U.S. West Texas Intermediate Crude was down 0.3% at $58.69. Reporting by Ankur banerjee from Singapore and Alun john in London. Editing by Shri Navaratnam, Saad Sayeed
(source: Reuters)