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The dollar is cooled by Trump's Arctic pantomime in the morning bid for Europe
Tom Westbrook gives us a look at what the future holds for European and global markets. The Bank of Japan only did enough to keep the yen stable in the Asia session. They also boosted inflation forecasts, but this didn't deter the market from expecting two rate hikes for the year. Dollar was also under pressure in general as investors may have anticipated that the Greenland drama of the past week will make the U.S. less attractive as an investment destination. The world's net long U.S. positions total $27,6 trillion. This leaves a lot of room to trim. After retracting tariff threats, President Donald Trump claimed that he had secured permanent and total U.S. access in Greenland through a deal reached with?NATO. The head of the alliance said that allies must increase their commitment to Arctic security. The European Union leaders breathed a huge sigh and said that they wanted a trade agreement between the EU and USA to get back on track. However, they warned that they would be ready to take action if Trump threatened them again. In a major speech delivered at Davos, Canadian Prime Minister Mark Carney criticized powerful nations for using tariffs and economic integration as weapons. The stock market in Asia was up, but a 'after-hours plunge in Intel shares indicated a brewing strain in the chip supply chains. The company claimed it was unable to meet the demand for its server chips used in data centres, and its stock fell 13%. China raised its official yuan guide to the higher side of?7 per dollar for the first since 2023. This is lower than the market's expectations, but it is seen as a tacit endorsement. The following are key developments that may influence the markets on Friday. - PMIs for Europe and the U.S. - U.S. consumer sentiment
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Gold, silver and Platinum extend record-breaking rally
Gold reached another record-high on Friday. Silver and platinum also extended their gains to reach all-time highs, fueled by a?diminishing? confidence in U.S. investments due to geopolitical tensions, and economic uncertainty. As of 0358 GMT spot gold was up by 0.3% to $4,951.91 an ounce after reaching a record high earlier in the day. U.S. Gold Futures for February Delivery increased by 0.8% to $4.952.80 an ounce. "Faith In The?U.S. Its assets are shaken and may be permanently. This is causing money to flow into precious metals. The word rupture is being thrown about. "I don't believe that's an overstatement,"? said Kyle Rodda a senior analyst at Capital.com. Dollar index fell to a two-week-low on Friday after falling 1% during the week. This made metals priced in greenbacks more affordable for overseas buyers. The EU leaders breathed a huge sigh after Donald Trump reversed his position on Greenland. They met in Brussels for an emergency meeting late Thursday night and warned that they were ready to take action if Trump threatened them again. According to the U.S. President, he has secured a permanent and total?U.S. A deal between NATO and Greenland allows access to the island. Details of any agreement remain unclear, and Denmark has insisted that its sovereignty over the Island is not up for discussion. Silver spot jumped 2.6%, to $98.71 per?ounce after reaching a record high earlier of $99.20. Rodda said that the silver story is a tale of outperformance compared to gold, and its industrial applications. Markets expect?the Fed to deliver two quarter-percentage-point rate cuts in 2026's second half, increasing the appeal of non-yielding Gold. Palladium fell 0.9%, to $1,903.10, after reaching a record high of $2,684.43 per ounce earlier. Spot platinum rose 0.4%, to $2,639.40 an ounce, following a record-high $2,684.43 per ounce. (Reporting by Ishaan Arora in Bengaluru; Editing by Subhranshu Sahu and Ronojoy Mazumdar)
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Asia stocks soar after Bank of Japan holds rates
Stocks rose?in Asian trade on Friday, after the Bank of Japan held the benchmark interest rate. Gold and silver also surged to new highs as the U.S. Dollar came under renewed pressure. The Nikkei gained 0.3%, while MSCI's broadest Asia-Pacific share index outside of Japan was up 0.5%. S&P 500 futures traded between gains and losses. They were up 0.2%. After the BOJ decision, the yen fell 0.1% to the dollar. It was last trading at 158.61 per dollar. David Chao is the global market strategist at Invesco Singapore. He said that "the tone appears hawkish." The BOJ raised four out of six inflation forecasts, and said that if the forecasts come true, further rate increases are likely. The statement did not comment on the recent volatility of Japanese government bonds. Chao said that it is "clear" that the Takaichi government is closely monitoring the bond markets and is worried about the recent meltdown. It would be comforting to see BOJ show the same level of attention. At 3:30 pm local time (0630 GMT), BOJ Governor Kazuo Ueda is scheduled to hold a press conference in order to explain his decision. In the early trading session, data from the government showed that Japan's consumer prices increased?2.4% over a year ago in December, which was in line with analyst's estimates. Wall Street stocks extended their recovery for a second consecutive day on Thursday after U.S. president Donald Trump backed down from earlier threats to impose tariffs on European goods and denied the possibility of taking over Greenland militarily. The S&P 500 rose 0.5%, and the Nasdaq Composite gained 0.9%. In a report, analysts at Societe Generale stated that "markets have welcomed this shift with a rebound of risk assets as well as a flattening?of yield curves for government bonds." However, policy uncertainty is still high. "There are more twists and turn to come." The U.S. Dollar Index, which measures the strength of the greenback against a basket six currencies, last rose 0.1% to 98.38. It was hovering around its lowest levels for the year, after Thursday's biggest one-day drop in six weeks. Fed funds futures indicate a 96% implied probability that the U.S. Federal Reserve is likely to keep rates unchanged at its next 2-day meeting, scheduled for January 28. This was little changed from one day prior. The yield of the 10-year Treasury Bond in the United States was down 1.2 basis point at 4.237%. The dollar sank to its lowest levels of the year, and precious metals markets broke new records. Silver was up 2.8% to $98.88 an ounce. Gold rose for a fifth consecutive day, climbing by 0.1%?to $4943.43 an ounce. Platinum also reached new heights. Kyle Rodda, senior analyst at Capital.com Melbourne, said that the dollar's weakness was due to a decline in U.S. prestige and credibility. He added that the rise in gold was the opposite of the decline in U.S. prestige. There are many factors that drive gold. The main reason for the gold price this week was the decline in?trust' in the U.S. South Korean stocks led Asia's gains, with the KOSPI rising 0.9% for the third consecutive day. Thursday marked the first time that the?index had crossed the 5,000-mark, a landmark President Lee Jae Myung promised to achieve through market reforms as well as tax measures in order to close the "Korea Discount". The gains in the tech-heavy index were attributed to Intel's Thursday announcement that its quarterly revenue and profits would be below expectations. The U.S. Chipmaker has been struggling to meet demand for server processors used in AI data centers, which caused its shares to drop 11% after-hours. Brent crude futures last rose 0.9% to $64.61 per barrel. This was after Trump's more lenient tone toward Greenland, Iran, and other geopolitical threats eased concerns about disruptions in supply. Bitcoin rose 0.7% to $89 817.64 while Ether was up 0.6% last at $2 961.52. (Reporting and editing by Christian Schmollinger, Jacqueline Wong and Gregor Stuart Hunter)
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Copper rises after Chilean mine strike
Copper prices rose on Friday as supply concerns grew after Capstone Copper, a miner in Chile and a local trade union reported that a strike had forced the company to halt production at its Mantoverde Mine. As of 0330 GMT, the most traded copper on the Shanghai Futures Exchange had risen?0.32%, to 101,020 Yuan ($14,507.49), a metric tonne, but was expected to end the week with a loss of 1.15%. The benchmark copper for three months on the London Metal Exchange rose 1.01%, to $12.884.50 per ton. The strike was triggered after Capstone and the largest union at the mine failed to reach an agreement on collective bargaining. Production stopped, with the mine expected to produce between 29,000.00?and 32,000.00 metric tons copper cathodes by 2025. Freeport-McMoRan, a copper miner, said that they expect?about 85%? of their flagship Grasberg Mine, the second largest copper mine in the world, to come back online 'by the second half this year. In October 2025 a deadly mudslide killed several miners and closed the mine, causing?supply concerns and triggering a rally in copper. The weakened?U.S. dollar. The dollar index registered ?its biggest one-day fall in six weeks on Thursday, making greenback-denominated commodities cheaper for investors using other currencies. Greenland anxiety also diminished after U.S. president Donald Trump withdrew tariff threats against European products and denied taking Greenland over by force. Tin and nickel were the top gainers on the London and Shanghai stock exchanges. Indonesia's recent move to reduce nickel ore mining quotas for 2026, as well a military-backed crackdown against illegal mining activities continue to unnerve industry. The Shanghai nickel rose 3.17% to 146,840 Yuan, while the most active tin on SHFE increased by 4.22%. London benchmark tin increased by 3.50%, to $53,695 per ton. Nickel rose by 2.86%, to $18,510. Aluminium, among other SHFE base-metals, rose by?0.85%. Zinc gained 0.92%, and lead suffered a 0.15% loss. LME Aluminium added?0.21%. Zinc rose 0.73%. Lead was up by 0.25%. Friday, January 23, DATA/EVENTS - (GMT) 0700 Retail Sales UK MM, YY Dec 200745 France Business climate Mfg Overall Jan 0815 France HCOB Mfg Svcs Comp Flash pmIs 01 0830 Germany HCOB Mfg Svcs Comp Flash pmIs 0900 EU HCOB Mfg Svcs Comp Flash - PMIs 0930 UK HCOB Svcs Comp Flash - PMIs 0930 Flash Jan: Japan JP BOJ rate decision 23 Jan
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Iron ore prices drop to six-day lows as feedstock prices fall.
The price of steelmaking ingredients, which have been consistently low, has allowed steel mills to purchase more feedstock. The May contract for iron ore most traded on China's Dalian Commodity Exchange ended the morning trading 1.02% higher, at 793.5 Yuan ($113.95). The contract is set to lose 2.64% this week. As of 0330 GMT, the benchmark February iron ore traded on Singapore Exchange was up 0.93% at $104.6 per ton. The contract has been set to a weekly decline of 1.65%. According to a report from the Shanghai Metals Market, the continuous decline in iron ore price helped to alleviate the market's pessimism. This allowed steel mills more time to purchase iron ore while maintaining their profit margins before the Chinese Lunar New Year. A trader with knowledge of the issue said that steel profit margins were still acceptable due to low prices for coking coal, coke and other ingredients used in steelmaking. He added that hot metal production is expected to continue to rise, while the inventory of steel mills still has some room for growth. According to a Mysteel note, several short-process mills in Guangxi & Guangdong are planning to suspend production by late January, before the Chinese Lunar New Year holiday. Production will resume in March. According to ANZ Research's commodity report, released on January 23, despite the fact that China's property market is expected to remain in a slump, fixed-asset investment in infrastructure?should mitigate the fall in construction demand in 2026. The report said that energy-related investments will likely increase as funding pressures ease. This will allow for an increased pick-up of infrastructure investment. Coking coal and coke, which are used to make steel, also gained on the DCE. They rose by 1.11% and 1.5% respectively. The benchmarks for steel on the Shanghai Futures Exchange have strengthened. Rebar climbed 0.38%. Hot-rolled coils climbed 0.3%. Wire rod increased 0.2%. Stainless steel grew 0.98%. ($1 = 6.9633 Yuan) (Reporting and editing by Janane Venkatraman; Reporting by Ruth Chai)
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After Trump's comments about an 'armada moving to Iran', supply concerns have prompted a rebound in oil prices
The oil prices rose on Friday, after U.S. president Donald Trump renewed his threats against a major Middle Eastern producer in?Iran. This sparked fears of military action which could disrupt supply. Brent crude futures for the month of March increased by 35 cents or 0.55% to $64.41 per barrel. U.S. West Texas Intermediate Crude rose 33 cents or 0.56% to $59.69 per barrel at 0243 GMT. Both contracts fell by about 2% Thursday. After Trump informed reporters on Air Force One that the U.S. had an "armada", heading towards Iran, he hoped not to have to use this weapon. He also warned Tehran against resuming its nuclear program or killing protesters. A U.S. official announced that warships, including an aircraft carrier as well as guided missile destroyers, will be arriving in the Middle East within the next few days. Iran is the fourth-largest producer of oil in the Organization of Petroleum Exporting Countries. It also exports a lot of oil to China, the world's second largest consumer of petroleum. Brent and WTI will gain 0.6% in the coming week after the prices rose earlier this week due to Trump's threats of invasion Greenland. This could destabilize the trans-Atlantic Alliance. However, they dropped on Thursday when he backed off any military action. Trump has retracted his statement that Denmark, which controls Greenland, NATO, and the U.S. have reached an agreement to allow "total acces" to Greenland. Prices also'softened' on Thursday after bearish government data showed that stockpiles of oil in the U.S. - the world’s largest?oil consumer - grew last week due to a slowdown in fuel demand. U.S. Energy Information Administration released data on Thursday that said "crude inventories increased by 3.6 millions barrels during the week ending January 16". This was more than the analysts' polled prediction of a 1.1 million-barrel increase. The API trade group, according to market sources, reported a 3-million barrel build on Wednesday. The U.S. Martin Luther King Jr. holiday fell on Monday, so both agencies released their reports one day later than normal. Helen Clark (Reporting; Christian Schmollinger, Editing)
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Six people are confirmed missing following a landslide on a New Zealand campsite
Authorities confirmed on Friday that six people were missing after a landslide ripped through a campground in New Zealand's North Island. Emergency crews continue to search the rubble. The landslide was caused by heavy rains on Mount Maunganui, on the east coast of the island. It happened at 9:30 am (2030 GMT Wednesday) and brought soil and rubble to the campsite where families were spending their summer holidays in Tauranga. Tim Anderson, the Police District Commander for Tim Anderson's district, said at a press conference that authorities are working to locate three additional people to add to the six who have been confirmed as missing. "We don’t believe they are?here, but we still have to do this inquiry," he said. New Zealand officials did not report any deaths in the camp. Police said that two?people were killed in a landslide on Thursday, in the nearby suburb of Papamoa. In an X-post, Chinese Ambassador Wang Xiaolong stated that one of the victims was a Chinese national. Mahe Drysdale, the Mayor of Tauranga, told Radio New Zealand the search and rescue teams had remained at the campsite all night but had not made any progress in locating missing persons. Images show a campsite with a number of structures and recreational vehicles crushed. Drysdale explained, "We are here with the families. As you can imagine just the uncertainty of where they might be and when we may have a final result is very hard." Drysdale stated that the area was still unstable. Emergency Management and Recover Minister Mark Mitchell told Radio New Zealand that the environment was challenging. He said that police were examining whether some campers had left the area without notifying authorities. New Zealand Police Commissioner Richard Chambers told the New Zealand Herald that the size of the disaster, and the dangers at the site may delay rescue efforts. Chambers stated that it could take days to get answers. "We understand everyone is anxiously waiting for their loved one and for answers, but we must also be very careful," Chambers added. Heavy rains this week flooded the east coast of North Island and caused extensive damage. Some of the most severely affected areas remained closed, rendering some North Island towns unreachable by land. Civil defence in Tairawhiti District warned people against walking on landslides in order to get water and food at welfare hubs. They feared that more landslides could occur. (Reporting from Lucy Craymer, Wellington; Christine Chen, Sydney; Editing done by Cynthia Osterman and Tom Hogue).
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Asia stocks surge ahead of Bank of Japan's rate decision
Early Asian trading on Friday saw tepid gains ahead of the Bank of Japan meeting. It is widely expected that it will?keep rates at current levels. The Nikkei was 0.2% higher, and MSCI's broadest Asia-Pacific share index outside Japan gained 0.4%. S&P 500 futures traded in a range of gains and losses. They last moved up by 0.1%. The Wall Street stocks extended their recovery for the second day on Thursday after U.S. president Donald Trump backed down from earlier threats to impose tariffs on European products and denied that he would take?control of Greenland through force. The S&P 500 rose 0.5%, and the Nasdaq Composite rose 0.9%. Analysts from Societe Generale stated in a report that "markets have welcomed this shift with a'rebound in risk assets, and a flattening government bond yields." However, policy uncertainty is still high. "There are more twists and changes likely." The yen fell 0.1% against the dollar before the BOJ meeting. This was after the government released data earlier in the day that showed Japan's core prices for consumer goods rose 2.4% from December of last year, as expected by analysts. The U.S. Dollar Index, which measures the strength of the greenback against a basket six currencies, has remained at 98.329 after Thursday's biggest one-day drop in six weeks. Fed funds futures indicate a 96% implied probability that the U.S. Federal Reserve is likely to keep rates unchanged at its next 2-day meeting, scheduled for January 28. This was little changed compared to a day before. The yield of the 10-year Treasury Bond in the United States was up by 0.2 basis points at 4.247%. The dollar sank to its lowest levels of the year, and precious metals markets broke records. Gold rallied for the fifth consecutive day, rising 0.3% to $4.951.47 an ounce. Silver was up 1.7%, at $97.85. Korean stocks led gains in Asia. The Kospi rose for a third consecutive day by 1,1%, after it crossed the 5,000-mark for the first time. This was a landmark that President Lee Jae Myung promised to achieve through market reforms, and tax measures, to close the so-called 'Korea Discount. Intel, which struggles to meet demand for AI data centres' server chips, forecast revenue and profits below market expectations on Thursday. Shares fell 11% after hours trading. Brent crude futures last rose 0.4% to $64.30 per barrel. This was after Trump's more lenient tone toward Greenland, Iran, and other geopolitical issues eased concerns about supply disruptions. Bitcoin rose 0.3% to $89,499.47 while Ether climbed 0.2% to $2,948.14. (Reporting and editing by Christian Schmollinger; Gregor Stuart Hunter)
Australia eyes US climate policy shift for green energy increase
Any relocation by the Trump administration to change U.S. environment policy could benefit Australia's aspirations to bring in higher financial investment to its crucial minerals and green energy market, Prime Minister Anthony Albanese said on Friday.
Australia has rich deposits of copper, vanadium, cobalt and lithium utilized in electrical automobile batteries. It is contending for global investment to build its clean energy sector, including crucial minerals processing.
Trump has actually guaranteed to rescind President Joe Biden's landmark environment legislation, the Inflation Reduction Act, which offers billions of dollars in subsidies for clean energy.
There are possible advantages if there are changes in U.S. policy. We'll wait and see what happens, Albanese told reporters in Peru, where he is attending the APEC top.
Australia sees climate action as an excellent financial chance, he stated.
The Inflation Decrease Act, for example, has seen substantial capital circulation to the United States. If those incentives aren't there, then that has implications for the nature of the international economy, he stated.
Australia was not pre-empting changes, he included.
We have all of the resources under the ground that will drive the worldwide economy in the 21st century. Copper, vanadium, cobalt, lithium, and so on. We have a terrific chance to produce green hydrogen through use of the renewables, he said.
Albanese met Indonesia's President Prabowo Subianto on Thursday, and informed press reporters the impact of a Trump presidency on the world was part of the background of APEC, and was being gone over by leaders.
Albanese included his call with Trump last week was really. positive.
(source: Reuters)