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Iron ore prices rangebound due to Sino-US trade issues, but firm demand in the near term offsets this.
Iron ore futures ranged on Wednesday as worries about the worsening Sino US trade dispute and China's low inflation data, its largest consumer, offset optimism regarding remaining strong near-term demand. Donald Trump, the U.S. president, said that Washington is considering ending some trade relations with China. The U.S., China and other countries began to charge additional port fees for ocean shipping companies on Tuesday. This is another sign of the tensions that exist between the two world's largest economies. These tensions could impact the market sentiment and put pressure on commodity prices. As of 0303 GMT on Wednesday, the most-traded contract for January iron ore on China's Dalian Commodity Exchange dropped 0.32%, to 785.5 Yuan ($110.22), per metric ton. This was after Tuesday's record lows, which were more than a month old. As of 0253 GMT, the benchmark November iron ore traded on Singapore Exchange was $0.36% higher. Official data released on Wednesday showed that China's Consumer Price Index (CPI), which measures consumer prices, fell 0.3% on an annual basis in September, compared to a 0.2% drop in a survey. This was due to the fact that domestic weakness continued and trade tensions increased, while consumer confidence also suffered. Analysts at Everbright Futures said in a report that "the strong ore demand continued to support prices", halting any potential downside. The data released by the China Iron and Steel Association, a state-backed organization, showed that the daily crude steel production among members steelmakers increased by 7.5% compared to the same 10-day period in September. Coke and coking coal, which are used to make steel, both rose by 1.62% and 0.7 percent, respectively. The benchmarks for steel on the Shanghai Futures Exchange are mixed. The Shanghai Futures Exchange saw a mixed performance in steel benchmarks.
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Asia shares recover as dollar eases, Fed reduces bets and reclaims spotlight
The Asian stock market staged a modest rebound on Wednesday. This was helped by the dovish remarks of Federal Reserve chair Jerome Powell, and positive bank earnings in Wall Street. However, simmering U.S. - China trade tensions kept risk appetite at bay. Powell said that the possibility of further rate reductions was still open on Tuesday, and that the long-term effort of the central banks to reduce the size of their holdings could be nearing its end. Some viewed his comments as dovish. They lifted the markets slightly, and reinforced expectations for more easing in this year. By December, roughly 48 basis point worth of cuts will be priced into the market. Tom Kenny is a senior international economist with ANZ. He said that the Fed could announce its intention to end quantitative tightening at the upcoming FOMC meeting in October. We expect the Fed will cut 25bp in both October and December FOMC Meetings. The market was also supported by the strong earnings of U.S. banks and the upward revision to the IMF's global growth forecast for 2025. This came after the market had fallen on signs of renewed tension in U.S. China trade relations. The Nikkei gained 0.8%, after falling 2.6% the previous session. Nasdaq and S&P futures both rose by about 0.1%. Even so, the sentiment was fragile. On Tuesday, U.S. president Donald Trump said that Washington would consider terminating certain trade ties with China. This included in relation to cooking oils. Both the U.S.A. and China have begun charging extra port fees to ocean shipping companies that transport everything from holiday toys, to crude oil. The markets have been thrown into turmoil in recent sessions due to a rapid escalation of the U.S./China trade war. Trump announced an additional 100% duty on Chinese goods as retaliation against Beijing's dramatic expansion of export controls on rare Earths. It does indicate that a lasting ceasefire is unlikely to be achieved easily. It's a reminder to the market that they are shooting these arrows, and then walking them back," said Tony Sycamore. U.S. trade representative Jamieson Greer said separately on Tuesday that the timing of additional tariffs of 100% on China's exports to America depends on whether they kick in November 1, or earlier, but acknowledged that Beijing might find it difficult to find a way out. POLITICAL UNCERTAINTY Sebastien Lecornu, the French Prime Minister, promised to delay a historic pension reform until 2027, a measure that would provide some relief for investors. EUROSTOXX50 futures gained 0.8% in Asia. FTSE and DAX Futures also rose by roughly 0.3%. Juan Perez is the director of trading for Monex USA. He said: "I believe that anything that can bring relief to the squabbles within the French Parliament is an absolute victory." The euro last traded at $1.1611 despite being largely insulated from France's political turmoil. The Fed's cut bets weighed on the currency market as the dollar fell 0.25% to 151.42 yen and 0.06% to 0.8009 Swiss Franc. The fragile risk sentiment also supported the safe-haven yen as well as the Swissie. Spot gold, meanwhile, continued its record-breaking run, and last rose 0.9% to $4,179.80 per ounce. This was helped by the geopolitical, economic, and expectations of a U.S. interest rate cut. Brent crude futures fell 0.1% to $62.33 per barrel while U.S. crude dipped 0.07% to $58.66.
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Oil prices drop as investors consider a surplus supply outlook and US-China tensions
The oil prices dropped in the early trading on Wednesday. This was a continuation of the losses made in the previous session. Investors weighed the warning from the International Energy Agency about a surplus supply in 2026, and the trade tensions between the U.S. and China that could affect demand. Brent crude futures dropped 12 cents or 0.19% to $62.27 a bar by 0021 GMT. U.S. West Texas intermediate futures also fell by 10 cents or 0.17% to $58.60. The previous trading session saw both contracts close at lows of five months. The International Energy Agency (IEA) said that the global oil market may face a surplus of up to 4 million barrels a day next year, a larger glut than they had anticipated, as OPEC+ and its rivals increase production and demand remains sluggish. In response to the outlook for demand, the United States, China, and other countries have begun imposing port fees on ocean carriers. Beijing has also announced sanctions on five U.S. linked subsidiaries of South Korean shipbuilder Hanwha Ocean. Last week, tensions in trade between the two world's largest economies grew after China announced an expansion of its rare earth export controls. President Donald Trump also threatened to increase tariffs on Chinese products to 100% and tighten export restrictions for software starting Nov. 1. Yang An, an analyst at Haitong Futures, said that the current oil price is largely determined by the level of global oversupply as reflected in the changes in inventories. The weekly inventory report will give traders a good idea of the demand in the United States. A preliminary poll indicated that U.S. crude stockpiles were likely to have increased last week while gasoline and distillate stocks are expected to be down. Six analysts surveyed by estimated that on average crude inventories increased by around 200,000 barrels during the week ending October 10. The American Petroleum Institute's weekly industry report is due at 4:30 pm EDT (2030 GMT), and the U.S. Energy Information Administration will release its data at 10:30 am EDT (1430 GMT), on Thursday. The delay is due to Monday's Columbus Day/Indigenous Peoples' Day. (Reporting and editing by Sonali Paul; Sam Li, Jeslyn Lerh)
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Climate advisers warn that Britain must prepare urgently for higher temperatures
Climate advisers warned that Britain is not prepared for the extreme weather conditions already taking place. This year, Britain experienced the warmest summer in recorded history, which affected health, agriculture, and infrastructure. Droughts were declared in many regions. Climate Change Committee responded to an environmental minister's request for advice by writing to the government: "It is evident that we are not yet prepared for the weather and climate changes that we live with today. Let alone those expected in the coming decades." The CCC identified six key areas for action: public health and food security, resilience of infrastructure, protection of cities from extreme weather disruptions, maintenance of public service and climate-resilient growth. The majority of governments committed to the 2015 Paris Agreement that they would try to limit the global average temperature increase to 1.5 degrees Celsius over pre-industrial levels. Scientists have been shocked by the rapidity of change. According to data from U.N., and EU science agencies, global temperatures are already 1.3-1.4°C above pre-industrial levels. Julia King, Chair of the CCC Adaptation Committee, said at a CCC press conference: "We still believe (limiting the increase to) 1.5 degrees as a long term goal is achievable, but the risk that this will not be accomplished is increasing." The group warned that a global warming of four degrees Celsius by the end of this century cannot be ruled-out and suggested that it should be taken into account when planning homes and infrastructure to ensure they can withstand 75 to 100 more years. (Reporting and Editing by Ros Russel)
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Blackouts caused by network overload in Kyiv and other Ukrainian regions
Officials said that a network overload and residual effects from previous Russian attacks caused blackouts to occur in Kyiv, and other Ukrainian regions, late Tuesday. In some parts of the capital, water pressure is also low. In a Telegram message, the Kyiv City State Administration said that the overload caused a problem at one of the energy sites in the capital. Three central Kyiv districts were without power on the west side of the Dnipro River that runs through the city. Kyiv Metro was temporarily forced into relying on reserve power in order to continue operating. Later, the administration said that emergency crews restored power in affected areas. However, outages continued to be reported. The administration said that water pressure levels would return to normal within two to three hour. Ukrenergo operates Ukraine's high voltage lines. The company said that lingering problems caused by Russian attacks on Ukraine's energy system have led to outages across the country, including in northern, central, and southeastern Ukraine. Ukrenergo announced on Telegram that "the aftermath of Russian attacks against energy facilities continue to be addressed" in all the regions affected by shelling. In recent weeks, Russian attacks have focused on energy targets. Last week, a wave of strikes in Kyiv and surrounding areas left over a million homes and businesses without electricity. (Reporting and editing by Richard Chang; Ron Popeski)
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Ukrainian PM talks about attacks on energy during US talks
In Washington, Ukraine's Prime Minister said that she would focus on Russian attacks against her country's power grid during talks with President Volodymyr Zelenskiy later this week. "At each meeting in Washington, we raise the subject of defending Ukrainian Energy and supporting our resilience during the winter as well as ways to defend this," Prime Minister Yulia svyrydenko posted on Telegram. She said that the priority of her visit was "energy, sanctions, and new ways of cooperating with the USA to strengthen both of our countries". Zelenskiy met with Donald Trump, the U.S. president on Friday, to discuss Ukraine’s air defence capabilities and long-range strikes. Both leaders met twice over the weekend to intensify discussions regarding the possible provision of long-range Tomahawks missiles to Kyiv. Treasury Secretary Scott Bessent, during his talks with Svyrydenko "reaffirmed United States unwavering support of Ukrainian sovereignty" and stressed the United States commitment to securing an lasting, durable peace, according to U.S. Treasury. Svyrydenko was also thanked for his support of the U.S. Ukraine Reconstruction Investment Fund that the Ukrainian Prime Minister helped to establish earlier this year. In September, Ukraine and the U.S. held their first joint board meeting. The fund was created as part of an agreement to grant Washington access to Ukrainian mineral deposits in exchange for investments. Svyrydenko was accompanied by Rustem Umerov, Secretary of Ukraine’s National Security and Defence Council and a group of officials from government, central banks and other institutions. (Reporting and editing by Stephen Coates, Jasper Ward and Ron Popeski)
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Doctors without Borders closes Haiti's emergency clinic as a 'last-resort'
Doctors without Borders announced on Tuesday that it will close an emergency clinic located in Port-au-Prince, Haiti's capital city. The closure is due to the violent clashes which have been ongoing in the area and are a threat to the safety of both staff and patients. MSF has been suspending operations at the Turgeau health clinic, which is located near an high school and several government ministries, ever since March. MSF reported that its vehicles, which were clearly marked, were targeted by gunfire 15 times during the evacuation. Why it's important Haiti has been in a conflict for years with armed groups that have taken control of much of its capital. This has limited the supply of goods, services, and the safe movement of three million residents of the metropolitan area. Many aid groups have left or suspended operations in Haiti due to the violence, limiting their options at a time when the healthcare system is on the verge of collapse. KEY QUOTE MSF's Chief of Mission in Haiti Jean-Marc Biquet stated in a press release that the area around the Port-au-Prince center has been a scene of regular violence for several weeks. The clinic's building was also hit by bullets several times. "MSF regrets the difficult decision that was made as a final resort. The closure will have a major impact on the access to healthcare of a population that is already suffering from violence, insecurity and precarious living situations. CONTEXT MSF stated that it was waiting for the signing of the memorandum-of-understanding which would establish a humanitarian corridor between Carrefour and the capital before it resumed medical activities between Port-au-Prince's suburb and the downtown. The Turgeau clinic's staff has reported several attacks. One incident occurred in November last year when an ambulance stopped and its staff was threatened. Patients were also killed. Another involved a patient being forcibly taken out of an ambulance, then shot, just a few feet away from the Turgeau Clinic. By the Numbers According to the World Health Organization and the United Nations, only 13% of 254 Haitian hospitals assessed in June were fully operational. Just 5% of 93 systems assessed in the Port-au-Prince metropolis were fully functional.
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US stocks finish mixed; gold surges amid positive IMF forecast and trade tensions
Wall Street ended Tuesday with mixed results and gold reached a new record high, as investors took into account the positive economic outlook from the International Monetary Fund Jerome Powell, Federal Reserve Chair, against a resurgence of U.S.-China Trade Tensions The stock market lost momentum in the late session following U.S. president Donald Trump He posted on social media about his decision. Trade ties can be cut off The Dow recovered from an early sell-off and managed to make modest gains. Crude prices dropped, and the benchmark U.S. Treasury Yields eased. The S&P and Nasdaq ended the session in the negative. Powell stated in a Tuesday speech that the U.S. overall economy "may have a firmer trajectory than anticipated." He also warned that there is no "risk-free policy path as we navigate between the tensions between our employment goals and inflation targets." This echoes an IMF report that raised its global outlook for growth as the shocks from tariffs and financial conditions were less severe than expected. The IMF, however, warned that a trade war between two of the largest economies in the world could have a significant impact on output. Peter Cardillo is the chief market economist of Spartan Capital Securities, based in New York. Tuesday, the U.S. began charging China tit-fortat port charges. The bilateral trade tensions that have roiled the world markets in this year erupted late last week when China tightened its controls on rare earth exports. Trump responded by threatening to raise tariffs on Chinese imports up to triple digits. Bank Earnings Kick Off Earnings Season Upbeat quarterly results by high-profile financial companies including JPMorgan Chase and Goldman Sachs as well as Citigroup, Wells Fargo, and Citigroup kicked off the third-quarter earning season. Cardillo said that if the banks are any guide, this will likely be a good earning season. Cardillo added, "That is another factor that supports the recent highs in the market." The Dow Jones Industrial Average rose 202.88, or 0.44% to 46,270.46. Meanwhile, the S&P 500 dropped 10.41, or 0.16% to 6,644.31, and the Nasdaq Composite declined 172.91, or 0.76% to 22,521.70. Investors watched developments in France where the Prime Minister appeared to be holding off on a major pension overhaul. MSCI's global stock index fell by 2.45 points or 0.25 percent to 978.64. The pan-European STOXX 600 fell 0.37% while Europe's broad FTSEurofirst 300 fell 7.41 points or 0.33%. Treasury yields fell but were still off their lows after Powell's remarks and the IMF revised its growth outlook. The yield of the benchmark 10-year U.S. notes dropped 2.3 basis points from Friday's 4.051% to 4.028%. The yield on 30-year bonds fell 1.1 basis point to 4.6234%, from 4.634% at the end of Friday. The oil prices dropped on the back of trade war fears and a report by the International Energy Agency that raised the prospect for increased supplies while dampening the demand. U.S. crude oil fell 1.33% on the day to settle at 58.70 dollars per barrel. Brent settled at $62.39 dollars per barrel. Due to increased trade-driven risks, the dollar declined while the Swiss Franc and Japanese yen strengthened. The dollar index (which measures the greenback versus a basket including the yen, euro and Swiss franc) fell by 0.26% at 99.04 while the euro rose by 0.31% to $1.1604. The dollar fell 0.37% against the Japanese yen to 151.71. The latest salvo of the Washington-Beijing Trade Spat boosted demand for gold to surpass $4,100. Spot gold increased by 0.75%, to $4140.97 per ounce. U.S. Gold Futures increased 0.77% to $4140.20 per ounce.
Glass Lewis, proxy advisor, ends benchmark recommendations under pressure
Glass Lewis, a major proxy adviser, will stop offering its "benchmark voting" recommendations in 2027. Instead they will provide a new set of options to clients.
Glass Lewis sent a paper stating that there is a growing divide between the U.S. investors and Europeans in regards to issues such as fiduciary duties and sustainability.
A spokesperson for the company said that the change in policy was also indirectly the result of criticisms the firm received from Republican politicians in the United States. The spokesperson stated that "the whole geopolitical climate is connected to this."
Glass Lewis, and its rival Institutional Shareholder Services (ISS), have come under pressure by politicians who are aligned with corporate management, as topics such as executive pay and climate politics have gained more attention at annual corporate meetings.
In Texas, for example, two firms are under investigation by the Republican Attorney General of the state over whether or not they have violated consumer protection laws, including rules about disclosing important facts. The two companies deny any wrongdoing and have won separate preliminary injunctions that block a new state statute that would have forced them to inform clients of their advice regarding environmental, social, and governance issues, which does not only serve the financial interests of shareholders.
Glass Lewis announced in its paper published on Tuesday that it will use AI to "move away from a one size fits all approach to a highly customizable, client-centric Framework." Glass Lewis will allow clients to create their own voting frameworks and will provide research that supports various voting perspectives, including those focused management views, governance, or sustainability priorities.
A spokesperson for ISS said that it will continue to adhere to its benchmark policy, but also noted that it has introduced new products and services for investors. These include research which does not contain voting recommendations.
Aaron Bertinetti is the CEO of Investor Engagement in North America at Computershare. This business includes shareholder outreach as well as investor relations. He expects that both functions will be more important, especially when proxy advisor recommendations are smaller.
In the past, companies were able to easily identify investors that they should be trying to influence. Bertinetti stated that "now the influence has become dispersed, and is much more difficult to track."
(source: Reuters)