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India's markets receive a tariff reduction but no buy yet
Investors say that the U.S. India trade deal will likely be enough to stop foreign stock selling. However, they insist that earnings growth and fundamentals must improve before sustained?buying can occur. The long-awaited agreement sparked an increase in the stock markets and rupee's strongest rally in seven year on?Tuesday as it?signalled improved diplomatic and trade relationships with the U.S. This was only one of many factors that hung over the currency and stock market, which has underperformed by a large margin regional and global counterparts since the start of last year, and seen the foreign allocations shrink to a 2-decade-low. Indian stocks are at record highs, but they're vulnerable to disruption by artificial intelligence. And, with no companies in this sector, the race to AI has left them behind. The details of the deal are also sparse even though they allow companies to start planning capital expenditure. Michael Bourke, M&G Investments' head of global emerging market equities, said: "I am not convinced that tariffs have an immediate effect, but they certainly affect sentiment. That's the best way to look at it." Do you see a sudden increase in earnings just because tariffs have been lowered? He said, "I'm not sure that's the line I'd draw." Naomi Waistell is a fund manager at Carmignac's emerging equities group, which manages assets worth $48.5 billion. She said that the deal was significant for markets but more for sentiment and valuation than for near-term earnings?uplift. The deal doesn't resolve recent issues regarding Indian equities, such as still-elevated prices... lower forward earnings growth compared to EM peers and a shortage of globally scalable AI beneficiary businesses. Since the beginning of 2025, foreign investors have pulled out roughly $23 billion from Indian stocks. However, they invested $580 million in Indian stocks on Tuesday. Vikas Jain of Bank of America's Mumbai branch, who is the head of India fixed income trading, currencies, and commodities, says that foreign investment should see a revival in the near future. The underweight investors will immediately return to neutral. The government's policies and growth will determine whether or not investors go overweight. RUPEE RELIEF Analysts and traders believe that the deal will also provide relief to India's currency, which has been battered. The rupee was the worst performing Asian currencies in the last 12 months. It required the central bank to constantly defend it as it fell from near 88 dollars per dollar at the time the tariffs were implemented to a low record of almost 92 dollars in January. The traders believe that the increased appetite of firms to hedge against rupee weakness, and the central banks' desire to increase FX reserves could be factors that prevent a sustained rally in the currency. Tariffs on Indian products had contributed to the depreciation of INR. This trade deal breaks the loop, encouraging foreign investors to assess Indian stocks more objectively. India's benchmark stock index rose a respectable 10 percent in the last 12 months, but pales in comparison with South Korea's Kospi which soared 118% and Taiwan's stocks that gained 42% in the same time period. On Wednesday, the risks of not having obvious AI winners were also at play. Indian IT stocks fell over 6% as AI firm 'Anthropic' launched tools for workplace productivity, raising fears of disruption in the entire sector. Some investors are still bullish about India, and consider it a "compelling" trade. Sam Konrad is the investment manager at Jupiter Asset Management for Asian Equities. He was underweight India throughout most of 2025, but he has increased his fund's investments in recent weeks. Bourke, of M&G, has been a recent buyer of Indian financials. However, he remains underweight. It may take a little longer to make larger allocations. The profit growth of Indian companies has been in the high single digits over six consecutive quarters. This is well below the 15-25% growth that was recorded between 2020-21 to 2023-24. Goldman Sachs has raised its earnings per share forecasts for Indian stocks to 16% this year from 15%. They are expecting a return of 12% dollars from Indian stocks in the next year, compared to 20% for Chinese stocks.
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Dalian iron ore production rises as hot metal output falls amid weak demand
Dalian iron ore contracts struggled to find direction on Wednesday. They?ultimately? slid downwards amid weaker sentiments as the end-use?demand?slows. The May Iron Ore contract most traded on the Dalian Commodity Exchange in China ended daytime trading 0.32% lower, at 781.5 Yuan ($112.67) per metric ton. As of 0714 GMT, the benchmark March iron ore traded on Singapore Exchange was $0.59 per ton higher. Shanghai Metals Market stated in a report that while hot?metal production is expected to increase week-on-week the restocking of steel mills has temporarily stopped. Galaxy Futures, a Chinese broker, said that production of hot-rolled coil and rebar, as well as other finished steel products, increased last week. This pushed inventories up as steel'mills continued stocking up. Everbright Futures, a Chinese broker, says that as the 'Lunar New Year' approaches, construction has ceased on most sites and demand for end products is waning. Galaxy Futures said that a lack of fundamental drivers, combined with a dampened mood, would continue to put pressure on the ore and steel price. Coking coal and coke both increased by 3.6% and 2.85% respectively. Galaxy Futures said that prices of?coking coke and coal are expected to become more volatile, and less driven by fundamentals as liquidity is thinned ahead of the holiday season. According to 'Everbright Futures, the supply of 'both coking coal, and coke, is stable, but a number of private mines have stopped production in advance, causing a tightening, according to the report. The benchmarks for steel on the Shanghai Futures Exchange have advanced. Rebar increased by 0.13%. Hot-rolled coils gained 0.18%. Wire rod grew 0.09%. Stainless steel also increased 0.09%. $1 = 6.9359 Yuan (Reporting and editing by Eileen Soreng, Ronojoy Mazumdar).
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Shanghai copper surges as China plans to expand strategic reserves
Shanghai copper rose Wednesday as investors responded to China's plans to increase its strategic reserves. The most active copper contract at the Shanghai Futures Exchange jumped 3.47% in daytime trading to close at $15,159.29 per metric ton. The benchmark 'three-month' copper on the London Metal Exchange fell 0.1% to $13,464.50 per ton at 0700 GMT. It held on to its Tuesday gains, which were its highest daily percentage gain since April 2022. Copper's previous session gain was after it joined a two sessions plunge in metals, led by gold and Silver to lose up to 15% from its record established?on Friday at $14,527.50 per ton. An official from the state-backed China Nonferrous Metals Industry Association announced on Tuesday that China would expand its strategic copper reserves. The association also said it will explore creating a system of commercial stockpiling led by state owned enterprises. Antaike - a state-funded research institute – has cautioned investors. In a WeChat post on Wednesday, it stated that "the exploration of a commercial stockpiling system?and the research into the feasibility and availability of copper concentrates are still preliminary ideas being discussed by relevant companies. Analysts and traders warned against interpreting the announcement in a way that was not accurate. They suggested it could be a longer-term plan rather than an immediate intention to enter the market. The traders and analysts spoke under condition of anonymity due to the sensitive nature of stockpiling. London tin fell 1.09% to $49,575, despite previously reclaiming $50,000. Nickel has also increased. Shanghai nickel rose 3.78%, to 137.680 yuan per ton. The?London nickel benchmark contract rose 0.91%, to $17.605. Goldman Sachs & Macquarie both raised their 2026 average nickel price forecasts above $17,000 on Tuesday. They cited tightened supply coming from the top producer, Indonesia. Aluminium, zinc and lead were all down 0.30%. On the LME, zinc climbed 0.37% and lead dipped 0.13%.
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MORNING BID EUROPE - Euro zone faces inflation hurdle in front of ECB
Rae Wee gives us a look at what the markets will be like in Europe and the world today. The European Central Bank will announce its rate decision on Thursday, but the markets will be able to gauge the market's mood based on the preliminary Eurozone inflation data released on Wednesday. Consumer prices are expected to have eased to 1.7% on an annual basis last month. This is comfortably below the ECB’s 2% goal as the price pressures have dissipated. The central bank has reason to'stay on hold'. The latest data shows that German inflation rose unexpectedly slightly in January. However, France's was lower than expected. A major miss could alarm ECB policymakers. Last month, they expressed 'growing concerns about the rapid appreciation of the euro against the dollar. Its potential to drive inflation even lower if the currency continues to'strengthen. The euro, despite its recent decline from the highs of $1.20 reached in January, is still'sensitive' to Donald Trump and his chaotic policies. This risk will continue to put pressure on the dollar, which means that the euro has more upside potential. It will be interesting to see if the current downturn in software, data analytics and professional services companies continues. Anthropic launched plug-ins on Friday for its Claude Cowork Agent, sparking fears of AI-driven?disruption in these industries. The selling pressure in Asia has abated due to the historical dominance of hardware manufacturing in that region, and European and U.S. futures indicate a more stable opening. This latest development shows the disruption that AI is bringing to industries once thought of as winners. Analysts have noted this new line between winners and losers in a rally which has been largely broad. Alphabet, the parent company of Google, is also expected to release its results later on Wednesday. It's expected to show a 15.5% increase in revenue at $111.37 billion. Investors are interested in the company's plans for spending for 2026, cloud service demand, and AI capacity constraints. The following are key developments that may influence the markets on Wednesday. - Flash euro zone inflation (January) - Euro zone producer prices (December) - Alphabet Earnings - U.S. ISM Services PMI (January). Report on private payrolls in the U.S. by ADP (January).
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CEO of Australian miner says it expects to provide US critical minerals stockpile
The CEO of the company said that an Australian scandium project, backed by mining billionaire Robert Friedland, will contribute to the 'planned 12?billion U.S. stockpile of critical minerals. Donald Trump, the U.S. president, announced on Monday plans to build a strategic stockpile for critical minerals backed up by $10 billion of seed funding from U.S. Export-Import Bank. A further $2 billion of private capital will be used to fund the project. Sam Riggall is the CEO of Sunrise Energy Metals which is developing the Syerston scannerdium mine in Australia's New South Wales. He said the company would likely contribute to U.S. strategic stockpile, underlining that the U.S. will be expected to meet its strategic needs by sourcing from overseas. Riggall said, "We expect to be a part of this stockpile." He said that Sunrise had secured enough funding in the last six months to start early construction works. He said that in September, the company received a letter from the U.S. EXIM Bank for $67m, which gave equity market investors confidence. Scandium alloys are used in aerospace, defense and automotive industries to harden metals such as aluminium. Friedland is the billionaire founder and co-chairman of Sunrise, as well as the cofounder of 'Ivanhoe Mines. He attended the Oval Office announcement Monday. Trump's announcement previewed a meeting planned for Wednesday in Washington, which will bring together ministers from more than 50 countries to discuss ways to improve global supply chains of metals. The meeting will be hosted by U.S. Secretary Marco Rubio as the U.S. seeks to advance critical mineral agreements with nations other than Australia and Japan. The U.S. stockpile and the meeting are part of measures designed to ensure a Western supply chain for minerals critical to industries such as high-tech materials and aerospace, which are susceptible to disruptions due to China's dominance in production. Madeleine King from Australia, the Resources Minister, is currently in Washington, D.C. for a?roundtable. She told the media that she expected Australia to play a major role in the supply of resources. For this, she sought?international financing for almost 80 projects. She said, "The Australian government stands ready to work with our partners in the U.S. to develop this industry for our national interests but also to?the benefit of our partners all over the world." SYERSTON MINING Sunrise's Syerston Mine is well positioned to help Australians and Americans increase their mineral stocks. Riggall stated that the mine's initial capacity will be 60 metric tonnes of scandium dioxide per year. The mine is expected to begin production in 2028, with expansion studies already underway. Riggall stated that Australia had already announced its intention to build a critical mineral reserve. He also expected other jurisdictions would follow suit. He added, "Absolutely there will be multiple stockspiles around the world." China, Japan, and Korea have such reserves with plans to expand them, while the EU announced that it would implement a stockpiling program this year. (Reporting and editing by Stephen Coates, Christian Schmollinger and Melanie Burton)
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Tianqi Lithium plans to sell SQM shares and raise $750 Million in equity-linked financing
Tianqi Lithium Corp announced on Wednesday that it would raise approximately HK$5,86 billion ($750m)?via a convertible bond and share placement, and hoped to sell a?small stake?in Chilean'miner SQM?to bolster liquidity. The Chinese lithium producer listed on the Shenzhen-Hong Kong stock exchange announced that it had struck a deal with the Hong Kong Stock Exchange to issue 65,000,000 new H shares for HK$45.05 per share, or a discount equivalent to 9% of Tuesday's closing HK$49.50. This is worth approximately HK$2.9billion. Tianqi has also entered into a'subscription agreement' for 2.6 billion yuan ($375m) in zero-coupon convertible bonds due February 9, 2027. These bonds are issued at 100% of the principal, and are initially convertible HK$49.56 a share. The proceeds will be used to develop the lithium sector, including spending on projects and optimising them, and possible acquisitions of high quality lithium mine assets. They will also go towards working capital, and corporate purposes. The company stated that it had agreed to a lock-up of 90 days after the closing date for placings, which is February 11. Goldman Sachs is the placing agent and manager for these deals. In a separate statement, Tianqi stated that it planned to sell within one year up to 3.6 million Class A shares of?SQM. This is equivalent to 1.25 percent of the total number of shares. Since December 26, 2025, it has sold 748.490 SQM Class B?shares. It added that it now owns 62.6 million SQM Class A shares or a stake in SQM of 21.9%. $1 = $HK7.8153 ($1=6.9354 Chinese Yuan Renminbi)
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PMI: UAE's non-oil private sectors growth is boosted by a jump in demand for January.
A survey released on Wednesday showed that the non-oil sector of the United Arab Emirates experienced its fastest growth in business in nearly two years, in January. This was due to a'sharp increase in new orders. The S&P Global UAE Purchasing Managers' Index, which is adjusted for season, rose from 54.2 to 54.9 in the month of January. This was the highest reading in 11 months. A reading of more than 50 indicates an increase in activity. Below 50, it is a contraction. The sharp acceleration of new orders in January, from 57.2 in December to 60.0 in January, was the strongest pace in 22 month. David Owen, Senior Economist at S&P Global Market Intelligence, said that the UAE's non-oil economy began the year with a strong footing. "New orders increased sharply, prompting companies to increase their output and dramatically expand their purchases." Due to increased competition, firms have tightened their margins despite the rapid sales growth. This has resulted in a marginal increase in average selling price. The input prices rose at the fastest rate in over a year and a half, mainly due to higher costs of raw materials and wages. Owen said that "Cost inflation in the industry?has reached an 18-month peak, with companies facing higher charges for a variety of materials." In January, business expectations were at a 15-month peak. Firms are optimistic about the future and their expansion plans. In Dubai, the business and tourism hub of the country, the headline PMI increased to 55.9 from 54.3 in January, as the new business growth reached a 22-month peak, leading to faster employment growth, and stockpiling. (Reporting and Editing by Joe Bavier).
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Shanghai copper rises as China plans to expand strategic reserves
Shanghai copper rose on Wednesday, as investors responded to China's plans to increase its strategic reserves. As of 0330 GMT, the most active copper contract at the Shanghai Futures Exchange had risen 2.45% to 103120 yuan (US$14,864.57) per metric ton. The benchmark three-month copper price on the London Metal Exchange fell 1.11% to $13,328.50 per tonne. An official of the China Nonferrous Metals Industry Association, a state-backed organization, said Tuesday that China would expand its strategic copper reserves. The association also added that it will explore creating a system for commercial stockpiling led by state owned enterprises. According to an official, the top copper consumer is also considering adding copper concentrate to their reserves. Red metal was supported by the Reserve Expansion Plan. The Shanghai contract rose to 105,810 Yuan per ton overnight, its highest level since January 30, when the copper correction began. On Tuesday, the London benchmark hit $13,526. Antaike, a state-backed research firm, urged caution in investors. It said that the exploration of "a commercial stockpiling system" and the research into the feasibility for copper concentrate reserves are still preliminary ideas being discussed by relevant companies. In a WeChat post on Wednesday. A number of traders and analysts warned against a misunderstanding the announcement. They suggested that it could be a longer-term plan rather than an immediate plan to enter into the market. The traders and analysts spoke under condition of anonymity due to the sensitive nature of stockpiling. London tin fell 1.60%, to $49.320, after previously reclaiming $50,000. Nickel has also increased. Shanghai nickel rose 2.94%, to 136,570?yuan per ton. The London benchmark nickel contract also gained 0.39%, to $17 515. Goldman Sachs & Macquarie both raised their 2026 average nickel price forecasts above $17,000 on Tuesday. They cited tightened supply coming from the top producer Indonesia. Aluminium, zinc, and lead were all lower. Aluminium, zinc, and lead were all little changed on the LME. Wednesday, February 4, DATA/EVENTS - (GMT) 0850 France HCOB - Composite, Services PMI 01 0855 Germany HCOB - Services PMI 01 0855 Germany HCOB Composite PMI final Jan 0900 EU HCOB Composite, Services Final PMI - Jan 0930 UK S&P global PMI: Composite – Output Jan 930 UK Reserve Assets - Total Jan 1000 EU HCIP - Flash YY - Jan 1000 EU HCIP
Britain launches framework for boosting advanced nuclear reactor technology
Britain announced a framework for accelerating the development of advanced nuclear reactors on Wednesday, with a goal to become a global leader in next-generation technology.
The 'Labour -government has stated that nuclear plants will be an important part of helping Britain achieve its climate targets. They will also provide clean energy for the growing AI industry and create jobs.
During President Donald Trump's trip to Britain in 2017, a number of U.S. firms announced plans to build advanced nucleic projects?in Britain, including X-Energy and Holtec, as well as TerraPower, backed by Bill Gates.
Nuclear reactors that are advanced use fuels and coolants which allow them to operate at higher temperatures. This means they can provide both industrial heat and electricity for the AI sector.
In a recent press release, Nuclear Minister Patrick Vallance stated that "advanced nuclear technologies could revolutionise the way we power industry as well as propel AI data centres boom."
The framework will allow the government to 'create a pipeline of project that meet the criteria for readiness, and offer developers a streamlined route through planning, regulation, and approval.
The government stated that the projects would need to be funded by 'private' financing, but they will also 'be able to discuss' government support and could seek investment from Britain’s National Wealth Fund. This fund was established in 2024 as a way to support net zero transition and drive economic growth. (Reporting By Susanna Twidale. Mark Potter (Editing by Mark Potter).
(source: Reuters)