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Oil prices slightly rise after US announces new strikes against Iran
Early trading on Wednesday saw oil prices rise as concerns about further supply disruptions increased after U.S. forces said they began attacking Iranian military targets for an 11th night in a row and Kuwait reported attacks by Iranian drones. Brent 'crude 'futures increased 0.55% or 50 cents to $91.51 as markets opened on the third day of trading. U.S. West Texas Intermediate Crude rose 0.36% or 30 cents to $84.64 during low volume trades. The oil price settled at its highest level in five weeks on Tuesday, after U.S. forces struck targets in western and southern Iran. Iran also attacked U.S. installations in Kuwait, Jordan, and Bahrain. U.S. forces said they began their latest attacks on Iran either late Tuesday or early Wednesday morning in Iran. The U.S. attack came just a few hours after the Kuwaiti military said that its air defences intercepted?Iranian swarms of drones on Wednesday. Constant?trading? of strikes has raised concerns about further disruptions in global energy supplies. Yemen's Iran-aligned Houthis have opened a new front to the Iran War by threatening to attack vessels carrying Saudi Oil in the Bab el-Mandeb Strait, and announcing a maritime blockade of Saudi Arabia. Bab el-Mandeb, the waterway that runs through the southern entrance of the Red Sea to the Red Sea, has become a more important route for Saudi crude 'exports' as the traffic in the Strait of Hormuz is down sharply since a ceasefire agreement between the United States of America and Iran fell apart earlier this month. Pete Hegseth said that the U.S. war against Iran had cost the country $37.5 billion so far. This is an increase of almost $8 billion from the previous estimate. Market sources reported that data from the American Petroleum Institute showed that U.S. crude oil and distillate inventories increased last week while gasoline stocks fell. The data is released ahead of the official figures that will be released by the U.S. Energy Information Administration Wednesday. (Reporting and editing by Lincoln Feast in New York, Siddharth Cavale in New York.)
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New Zealand's climate goals are at risk because emissions progress is stalling, a report states
The 'Climate Change Commission' said on Wednesday that New Zealand greenhouse gas emissions have fallen too slowly to meet national climate goals. Progress has stalled in 2024, and the key goals for the coming decade are now at risk. The independent advisory body, in its annual report on emissions monitoring, said that the country would have to double the rate of emission reductions over the next several years to "get back on track". "This is a warning sign," said Jo?Hendy, the commission's chief executive. "Emissions have been falling, but the progress has stalled by 2024. Current policy settings do not deliver at the required pace." The report stated that government decisions in the next 12 to 24 months will be crucial. The report found that New Zealand's second, and third,?emissions budgets are at risk. Meanwhile the 2030 biogenic methane target -- which is largely produced by livestock-- will not be met. New Zealand has set up a budget for emissions as part of a plan to achieve net zero long-lasting greenhouse gas?emissions before 2050. It also plans to reduce methane emissions from waste and agriculture. The commission stated that a faster adoption of existing low-emissions technology could lower costs for businesses and households, as well as reduce their exposure to volatile fossil fuel price fluctuations. The commission cited rooftop solar, industrial heat pumps, and batteries as technologies that have already become cheaper over time. Hendy stated that barriers like upfront costs are slowing down adoption, even when long-term savings are available. The commission called on the government to use targeted financing, clearer investment signal and better information in order to assist households and businesses to switch from fossil fuels. (Reporting and editing by Chris Reese; Lucy Craymer, Lucy Craymer)
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Vale reports largest iron ore production in the second quarter since 2018.
The Brazilian miner Vale announced?on?Tuesday its highest second-quarter production figure since 2018. Production?of steelmaking _material increased?0.8% compared to a year ago and came above analysts' expectations. Vale, a world-leading iron ore producer, reported an iron ore production of 84.3 millions metric tons in the April-June period, which is above the Visible Alpha consensus estimate of 82.2million tons. The miner said iron ore production was supported in the period by a'record-breaking second quarter performance in its S11D Complex, and added volumes from Capanema, and 'VGR1 Projects, located all in Brazil. Vale has maintained its projections of producing between 335 and 345 millions tons of iron ore in this year. Its other estimates for yearly production have also remained unchanged. ?Vale reported that iron ore sales in the third quarter included fines, pellets, and run-of mine. This represents a 3.1% increase due to higher production and stock sale. According to a?estimate compiled by Visible Alpha, analysts expected 78.2 millions tons. According to Vale’s report on output and sales, the average realized price of iron ore fines increased 11.6% from last year to $95 per ton. However, it fell by 0.8% in comparison to?the first-quarter due to "negative impact" of pricing mechanisms. Vale will?release its second-quarter financial results? on July 30. Reporting by Andre Romani from Sao Paulo, and Marta Nogueira from Rio de Janeiro. Editing by Chris Reese, Natalia Siniawski and Natalia Siniawski
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Groupo Mexico's quarterly profit increases 79% due to higher copper prices
The mining?and transport conglomerate Grupo México announced on Tuesday that its second-quarter net profit had risen?nearly 79 percent compared to a year ago, thanks primarily to higher prices. According to a filing, the net profit of the group, which is a major copper producer, was $2.20 billion on revenues that rose 35% to $5.71 Billion. Analysts polled by LSEG predicted a net profit of $1.66 billion, but revenues came in slightly higher than the $5.65 estimate. The company produced 257.537 metric tons of copper in the first quarter. This is down 3.7% compared to the same period last year. Asarco unit. The increase in Mexico operations was partially offset. The price of the red metal also increased by 30.5% from $4.72 to $6.16 a pound. Sales at the key mining division increased 41.3% compared to a year ago. The mining unit has maintained its guidance for 2026 to produce 1.034 millions tons of copper. Grupo Mexico also raised $1.25bn through a 10-year senior secured?bond issuance?last month and plans to use these funds for the Tia Maria Copper Project in?Peru. By the end of the second quarter the project was 42 percent complete. The goal is to begin operating by the second half of this year. Grupo Mexico is a copper producer in the world that is largely controlled by German?Larrea. Conglomerate runs transport and infrastructure units. (Reporting and editing by Daina Beth Sool)
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New York City and US states sue EPA over climate regulation regarding hydrofluorocarbons
On Tuesday, the Trump administration was sued by 18 'Democratic-led States, Washington D.C., and New York City, over a federal?rule? they say will harm climate change by giving companies a longer time to stop using hydrofluorocarbons as dangerous chemicals in commercial refrigeration equipment. The petition filed in the federal appeals courts of Washington, D.C., challenges a decision by the Environmental Protection Agency to delay deadlines for companies that want to replace hydrofluorocarbons, also known as HFCs, with climate-friendly refrigerants. The rule, according to opponents, would increase harmful greenhouse gas emission?and undo a part of the American Innovation and Manufacturing Act that called for a 85% reduction in the HFCs before 2036. In December 2020, President Donald Trump signed this law less than a month before the end of his first White House tenure. The "Phasedown?of Hydrofluorocarbons' rule is set to go into effect on July 27, 2019. In a press release, the EPA stated that it has a long-standing policy of not commenting on pending litigation. The petition also names EPA Administrator Lee Zeldin. The Trump administration has'scaled back' a number of environmental initiatives and standards. This includes reducing the support for clean energy, and repealing a scientific finding from the Obama administration that climate change is a threat to public health. HFCs can be found in many products, including air conditioners, refrigerators, freezers, large supermarkets, and equipment for manufacturing semiconductors. A RULE IS SAID TO BECOME A THREATEN TO CLIMATE PROGRESS States stated that one provision in the EPA rule allows supermarkets, convenience shops and bakeries to continue using remote condensing system whose refrigerants have more than nine-times the global warming potential previously allowed. In a webcast announcing the lawsuit, California Attorney General Rob Bonta stated that "the EPA's rule would undo our progress and penalize businesses that?have complied" with the law. Bonta accused Trump of "again putting the profit of the industry over the health of the American people and our future." The petition is led by the attorneys general from California, Massachusetts and Washington state. Attorneys general from Colorado, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, Vermont, Wisconsin, Washington, D.C., and New York City also joined them. The EPA stated in a regulatory filing that the rule would help it achieve its goal of reducing the cost-of-living for American families and not forcing companies to use technology which increases the price of food and semiconductors. The deregulation drive would also further Trump's executive order of January 31, 2025, which calls for "unleashing the prosperity through deregulation." Jonathan Stempel, New York reporter
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Oil prices increase after recent US-Iran strikes and Houthi blockade, FOREX Dollar advances
The?U.S. The dollar rose on Tuesday, and was set to gain for a fourth consecutive session as the latest attacks in the Middle East drove oil prices higher and raised concerns about persistent inflation. After 'threats' from Yemen's Iran aligned Houthis two oil tankers transporting Saudi crude to Asia reversed their course in the Red Sea. A widening Middle East war has disrupted the'shipping' through two of the most important energy chokepoints. U.S. Military said Monday that they had completed their latest round of Iran strikes, marking the 10th night in a row of attacks. U.S. crude climbed 2.09% to $84.97 per barrel. Brent rose to $90.90 a barrel, up 1.88 % on the day, after reaching $91.99 - its highest level since June 11. The optimism that a lasting peace agreement could be reached between Iran and the U.S. helped to spark a decline in crude prices at the beginning of May. Recent subdued U.S. data on inflation also cooled expectations for a rate increase by its policy meeting next week. Oil prices have fallen in recent days due to tensions in the Middle East. Several Fed officials have expressed concern about inflation, including Kevin Warsh. The dollar index, which measures greenbacks against a basket currencies, rose by 0.17%, to 101.16. Meanwhile, the euro fell 0.11%, to $1.1402. The dollar was set to record its longest daily gain streak since mid-May. Erik Bregar is the director of FX risk management and precious metals at Silver Gold Bull, Toronto. "The Fed is hawkish. I don't believe the marketplace fully understands that yet. And the longer this conflict continues in the Middle East the greater the risk of the Fed sounding more hawkish." Even though the conflict continues, diplomatic efforts to find a solution continue. On Monday, a senior Iranian official said that Tehran received a mediator's proposal for a 10-day truce. U.S. president Donald Trump warned that there would be consequences if Yemen's Houthi movement, which is aligned with Iran, follows through on their threat to impose an economic blockade in the Red Sea. CME FedWatch reports that expectations for the Fed to raise rates by at least 25 basis point at its next meeting have risen to 21,9%. This is up from 11% the previous week, but still well below the 38.5% of a month earlier. Markets are pricing a 68.2% hike for the September meeting. The Canadian dollar fell 0.27% against the greenback, to C$1.411, from the one-month high reached on Monday. This was after the U.S. imposed new tariffs of 50% on many Canadian products, in response to Ottawa’s “discriminatory” treatment of American cars, alcohol, and dairy products. BURNHAM GOVERNMENT BEGINS WITH POUND FALLING Sterling?declined 0.39%, to $1.3376. This was its fourth consecutive session of declines as investors weighed up the prospect of increased government spending, and how John Healey, the new finance minister, will?finance this. Andy Burnham, Britain's 7th?prime Minister in the last decade, was sworn in as Prime Minister on Monday. He reiterated his commitment of sticking to fiscal rules set by previous governments. John Healey was named the new Finance Minister. He is the former Defence Secretary. The data on the labor market showed that Britain's job market appeared to have stabilised at low levels. Official data showed wage growth and unemployment were stable in the three-month period to May, and payrolled employment was little changed in June despite recent political turmoil. Jack Meaning, UK Chief Economist at Barclays said in a note that the data today point to a labor market with low wage pressure. However, it is not deteriorating significantly at this time. The focus will be on the European Central Bank's meeting, which is due to take place later this week. The economists polled expect the central to keep?interest rates stable this time but will still raise them at least one more time later in the year. The Japanese yen fell 0.41% to 163.14 dollars, the lowest level since December 1986. Traders continue to be on the lookout for any signs of government intervention.
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Gold profits on the hope of a de-escalation of Middle East conflict
Gold rose more than 1%?Tuesday? on hopes of a diplomatic break between the U.S. Spot gold rose 1.6% by 2:00 pm EDT (1800 GMT) to $4,068.29 an ounce, while U.S. Gold Futures for August Delivery settled at $4,076.40, a?1.5% increase. Edward Meir, Marex analyst, said that commodities were higher on the expectation of a possible cease-fire being negotiated in the Middle East. He added that technical buying is likely to continue in the short term. Prices are also expected to remain range-bound. On Monday, a senior Iranian official said that Tehran received a mediator's proposal for a 10-day truce in an effort to salvage the interim agreement. The increased oil prices caused by the Gulf supply disruptions are putting pressure on gold prices, as they fuel inflation fears and increase bets for higher interest rates. Gold is often viewed as a hedge against inflation. However, the high interest rate increases the cost of owning the metal. Investors are now awaiting?the U.S. Federal Reserve interest rate decision, and Chairman Kevin Warsh's remarks?following a two-day meeting of the central bank next week. According to the CME FedWatch Tool, traders are pricing in a 68% probability of a rate increase?in September. The psychologically important $4,000?mark seems to be holding on the gold markets... Commerzbank stated that interest rate concerns are likely to slow down a stronger recovery in the U.S. Silver spot rose by 4.1%, to 58.72 dollars per ounce. Platinum gained 1.9%, at $1.623.63, and palladium jumped 2.4%, at $1.282.25 (Reporting from Noel John, Bengaluru. Editing by Sahal Muhammad and Jonathan Ananda.)
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Oil reaches 5-week high; shares of chipmakers gain.
The Nasdaq, chipmaker shares and major stock indexes all rose on Tuesday amid the rising tensions over the Iran conflict. Oil prices also reached a five-week high. Benchmark 10-year U.S. Treasury Yields hit a two-month peak as traders pondered whether the new spike in oil prices would affect consumer prices, and increase the likelihood of Federal Reserve rate hikes. Two oil tankers transporting Saudi crude from the Red Sea to Asia have reversed their course after being threatened by Yemen's Iran aligned Houthis. U.S. Crude?rose by 2.32%, to $85.16, and Brent rose by 2.08% to $91.08 a barrel. Bruce Zaro of Granite Wealth Management, Plymouth, Massachusetts said that investors aren't necessarily expecting the war to end any time soon, but they may think its impact on oil prices is overdone. Investors also awaited corporate earnings, as Alphabet, Intel and other companies were due to report. Market watchers are interested to see if the AI trade can continue to grow, especially with high profit expectations for the second quarter. Zaro stated that earnings are "really key" to how the market will perform in the short-term. The semiconductor index was up over 5%. The index closed Friday at a level that was more than 20 percent below the record high set in late June. The Dow Jones Industrial Average rose by 395.97 or 0.76% to 52,235.23. The S&P 500 gained 63.60 or 0.85% to 7,506.88. And the Nasdaq Composite advanced by 342.90 or 1.34% to 25,850.97. European stocks are up, and technology and mining shares have gained. The pan-European STOXX 600 Index was up by 0.56%. MSCI's global stock index rose by 11.29 points or 1.02% to 1,116.79. The yield of the benchmark 10-year U.S. notes increased by 3.62 basis points to 4.634%, and then reached 4.640%. This is the highest level since May 20. Money markets indicate that traders are pricing at least one rate hike by the Fed this year. The trade was also in focus. The Canadian dollar fell 0.15% against the greenback, to C$1.409, as the U.S. imposed a 50% tariff on a range of Canadian goods in response to Ottawa's?discriminatory?treatment of American cars, alcohol, and dairy products. U.S. trade negotiators and Mexican counterparts will hold a third round bilateral talks in order to?move forward with the revision of the North American trade agreement. The dollar index (which measures the greenback against a basket including the yen, the euro and other currencies) rose by 0.17% at 101.12 while the euro fell 0.05% to $1.1408.
Oil reaches 5-week high; stocks jump with chipmakers
The Nasdaq, chipmaker stocks and oil prices all rose on Tuesday amid rising tensions over the Iran conflict. The Japanese yen fell 0.41% against the greenback, to 163.14 dollars. This was the first time the yen has breached the 163 dollar mark since December 1986. Traders were bracing for a possible intervention by the Japanese government. Two oil tankers transporting Saudi crude from the Middle East to Asia have reversed their course in Red Sea following threats by Yemen's Iran aligned Houthis. Brent futures gained $1.79 or 2.0% to settle at $91.01 per barrel. U.S. West Texas intermediate crude added $1.68 or 2.0% to settle at $84.91. Brent closed at its highest level since June 10 and WTI reached its highest since June 11.
Bruce Zaro is the managing director of Granite Wealth Management, a Plymouth, Massachusetts-based firm. He said that investors may not think the war will end soon, but the impact the conflict has had on oil prices could be overstated. Investors will also be focusing on the earnings of corporations this week. Alphabet, Intel and other companies are still expected to release their results. Market watchers want to know if the AI trade can continue to grow, especially with the high profit expectations for second quarter. Investors are now looking at earnings in order to determine if the market's surge in Q2 was justified, said Adam Sarhan, CEO of 50 Park Investments in New York.
He noted that tech stocks, in particular semiconductors, had consolidated, and are now bouncing back off the support. A semiconductor index ended 5.2% higher. The index closed Friday at a level that was more than 20 percent below the record high set in late June. The Dow Jones Industrial Average increased 385.38, or 0.74 percent, to 52224.64. The S&P 500 gained 65.92, or 0.89 percent, to 7,509.20. And the Nasdaq Composite grew 329.13, or 1.29 percent, to 25,837.21.
European stocks grew, led by technology and mining shares. The pan-European STOXX 600 Index was up by 0.56%. MSCI's index of global stocks rose 11.58 points or 1.05% to 1,117.08. The benchmark 10-year U.S. Treasury rate reached a new two-month high, as traders increased their bets on the Federal Reserve raising interest rates in 2018. The yield on the benchmark 10-year U.S. notes rose 3.41 basis points, to 4.632%. It reached 4.640% at its highest level since May 20. The Fed kept interest rates unchanged at its June meeting. However, policymakers indicated that they expect to increase borrowing costs later in the year due to growing concerns about inflation remaining above the central banks' 2% target.
The trade was also in focus. The Canadian dollar fell 0.27% against the US dollar to C$1.411 after U.S. president Donald Trump announced plans on Monday for 50% tariffs for a range of Canadian imports in response to what he called discriminatory treatment for American-made dairy products, cars and alcohol. Mark Carney, the Canadian Prime Minister, said that Trump had agreed to intensify negotiations on trade after his?speaking Tuesday. However he warned he will consider all options if tariffs Trump threatened Monday are implemented. The dollar index, which measures greenbacks against a basket currencies, rose by 0.17% at 101.16. However, the euro fell by 0.11% to $1.1402. The dollar was set to record its longest daily gain streak since mid-May.
(source: Reuters)