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Dollar pause, gold rises by more than 1% in risk-off mood
Gold prices rose more than 1% in Wednesday's trading, driven by a slightly lower dollar and a wider risk-off mood. At 1203 GMT, spot gold was up 0.8% to $3,963.03 an ounce. U.S. Gold Futures for December Delivery were up 0.3% at $3,971.90 an ounce. Gold prices are up 52% in the past year and reached a record high of $4,381.21 per ounce on October 20, 2010. Carsten Menke, Julius Baer's analyst, said that the recent shift in financial markets to a more risk-off mindset due to concerns over equity market valuations has helped gold stabilize after its decline from record highs. DOLLAR PAUSE SUPPORTS European shares fell to their lowest level in two weeks as investors around the world became increasingly nervous due to the inflated equity valuations. Gold became less expensive to other currency holders after the dollar index eased by 0.1%. Investors are looking for clues about the U.S. rate path as the U.S. shutdown approaches the record-breaking length. The ADP National Employment Report, due on Wednesday, is one of the non-official reports that investors will be focusing on. Last week, the U.S. Federal Reserve lowered rates and Chairman Jerome Powell hinted that it could be the final reduction in borrowing costs this year. CME's FedWatch Tool shows that market participants see only a 72% probability of a December rate cut, down from 90% prior to Powell's comments. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Menke, Julius Baer's Menke, said: "We continue to see a strong demand for gold from those seeking a safe haven. This is also the case with emerging market central bankers." Silver spot gained 0.9%, to $47.53 an ounce. Platinum fell 0.3%, to $1.531.69, and palladium rose 0.5%, to $1.397.93. (Reporting by Brijesh Patel in Bengaluru. (Editing by Ros Russel and Mark Potter).
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Raw sugar prices fall to their lowest level in five years, and cocoa is also falling.
Raw sugar futures fell to their lowest level in five years on Wednesday, with the possibility of a large global surplus for the 2025/26 crop season pushing prices down. Dealers say that the expected increase in sugar production in India, which is the second largest producer in the world, has added to the concerns about excess supplies. Forecasts are beginning to rise for the anticipated size of a global surplus during the 2025/26 harvest season. Raw sugar futures fell 0.1% to 14.21 cents a lb at 1147 GMT, after hitting a low of 14.05cents. This year's monsoon rainfall has contributed to the increase in production. However, it appears that less cane is being diverted for ethanol production than expected. In a recent note, broker Czarnikow stated that "we now think India will produce more than sugar in 2025/26 with 32.8 million tonnes due to less sucrose going to ethanol." India produced approximately 26.1 million metric tonnes in 2024/25. Czarnikow increased its forecast of the global sugar surplus in 2025/26 by 1.2 millions tons to 8.7million tons. White sugar increased 0.4%, to $415.10 per ton. Futures cocoa prices eased due to concerns over a weakening demand after the price surge of last year. Barry Callebaut announced on Wednesday that the company expects a decline of a single-digit percentage in sales for its next financial year due to high cocoa prices. New York cocoa dropped 0.1%, to $6,594 per ton. London cocoa, however, was down 0.25%, at 4,837 pounds. The price of Robusta coffee increased by 0.2%, to $4,689 per ton. The market is closely watching the progress and impact of Typhoon Kalmaegi, which could cause more rain in Vietnam's coffee growing regions, resulting in a slower harvest, or even quality problems. Arabica coffee increased 0.7%, to $4.08 a lb. (Reporting and editing by Nigel Hunt)
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UK stock prices flatten as energy and financials gains are offset by losses in the financial sector
The UK's FTSE 100 remained flat on Wednesday, as the losses of heavyweight banks were countered by gains in energy shares. Investors are now focusing on a Bank of England rate decision this week and on more corporate earnings. The blue-chip FTSE 100 index remained flat at 9712.2 by 1126 GMT. The rise in crude oil prices led to a 0.3% increase for heavyweight oil and gas companies. Standard Chartered, Barclays and other banks trimmed gains in the broader index. Personal goods were the leading gainers with a 1.6% increase. Precious metal miner's fell 2%. The Bank of England will likely hold its rates at the same level on Thursday, despite recent data showing a decrease in inflation and wages. According to a recent survey, the output and new orders of the British services industry increased last month. The expectations for the activity over the next twelve months are the highest they have been since October 2024. The pound was stable against the dollar, after it had fallen by 0.9% in the previous session. Gilt yields were also mixed. Barratt Redrow, the largest British homebuilder, maintained its annual completions goal. Marks & Spencer, a retailer, said that it would have recovered fully from the cyber-hack of April by March 2019. It forecast second half profits "at least" on par with last year. Last week, its shares rose 1.7%. Investors will also be watching earnings this week from British Airways' parent company IAG, drugmaker AstraZeneca, and spirits manufacturer Diageo. Reporting by Utkarsh T. Hathi in Bengaluru and Shashwat C. Chauhan; editing by Sahal M. Muhammed
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Copper prices are affected by the dollar's strength and concerns about China's demand
The copper price fell on Wednesday. It was the fifth session in a row that it had fallen. This was due to the strong dollar and concerns about China, which is a major metals consumer. At 1049 GMT, the benchmark copper price on London Metal Exchange had fallen by 0.2% to $10640.50 per metric ton. Metal, which is used for power and construction, has fallen 5% from its record high of 11,200 dollars a week earlier, when fears about a tightening global supply drove it up. The metal fell below the 21-day average, which was the level of resistance around $10,779. Analysts at Sucden Financial stated that "the pullback in the copper market appears to be a healthy consolidation with excess momentum being unwound, potentially providing some room for modest rebound when positioning is stabilized." FIRMER DOLLAR WEIGHS Copper has risen 22% this year so far, and is on track to be the biggest yearly increase since 2021. Standard Chartered analyst Sudakshina Unnikrishnan said that the metal will likely trade between $10,000 and $11,000 in the short term, as risk sentiment deteriorates. Macroeconomic drivers are also weighing on the metal, while last week's disappointing official Chinese manufacturing PMI data is adding to worries. On Wednesday, the Chinese yuan weakened to its lowest level in two weeks against the U.S. dollar. This made metals priced in dollars more expensive for Chinese buyers. Beijing will release data on trade Friday. Next week, credit lending and activity indicators will be released. Signs of trade tensions easing between Washington and Beijing were encouraging. China announced that it would remove export controls against 15 U.S. companies and continue to pause these measures for 16 other entities for one year, starting November 10. Other LME metals saw aluminium fall 0.2% to 2,852 per ton. Zinc fell 1.2% to 3,051.50. Lead was unchanged at $2,022.50. Tin dropped 0.6% to 35,550. Nickel has remained relatively unchanged at $15.075 after reaching $15.015, its lowest level since August 22. Polina Devitt (Reporting). Dylan Duan contributed additional reporting. Mark Potter (Editor)
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Dollar pause, gold rises by more than 1% in risk-off mood
Gold prices rose more than 1% in Wednesday's trading, driven by a slightly lower dollar and broader risk-off sentiment. By 1044 GMT, spot gold had risen 0.8% to $3,966.54 an ounce. U.S. gold contracts for December delivery increased 0.4% to $3.976.10 an ounce. Gold prices are up 52% in the past year and reached a record high of $4,381.21 per ounce on October 20, 2010. Carsten Menke, Julius Baer's analyst, said that the recent shift in financial markets to a more risk-off mindset due to concerns over equity market valuations has helped gold stabilize after its decline from record highs. European shares fell to their lowest level in two weeks as investors around the world continued to be nervous about equity valuations. Gold became less expensive to other currency holders after the dollar index eased by 0.1%, after reaching a three-month high. Investors are looking for clues about the U.S. rate path as the U.S. shutdown approaches the record-breaking length. The ADP National Employment Report, due on Wednesday, is one of the non-official reports that investors will be examining. Last week, the U.S. Federal Reserve lowered interest rates and Chairman Jerome Powell hinted that it could be the final reduction of borrowing costs this year. CME's FedWatch Tool shows that market participants see only a 72% probability of a December rate cut, compared to over 90% prior to Powell's comments. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Menke, Julius Baer's Menke, said: "We continue to see a strong demand for gold from those seeking a safe haven. This is also the case with emerging market central bankers." Silver spot gained 1.3%, to $47.69 an ounce. Platinum fell 0.1%, to $1.533.91; palladium rose 0.4%, to $1.397.46. (Reporting and editing by Alexander Smith, Ros Russell, and Brijesh Patel in Bengaluru)
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Brazil's most deadly police raid places Lula in political trouble
Luiz inacio Lula da Sol was left stunned by the most deadly police operation Brazil has ever seen. He is now trying to deal with the political fallout as he tries to reconcile growing international concern over human rights violations and public support for an aggressive crackdown on crime. This divide highlights a broader problem facing Lula. He is hoping to be re-elected next year, and has devoted much of his political capital towards an "ecological transform" of Brazil's economic system, capped off by the U.N. Climate Conference COP30, which starts this week. However, most Brazilians seem more concerned with public security. At least 121 people, including four officers of the Rio de Janeiro police force, died in the raid on October 28. United Nations officials condemned the level of violence and called for independent investigations to be conducted into any possible illegal killings. Since then, activists have staged protests as more bodies are identified. Lula called the raid "disastrous" during his appearance at COP30 on Tuesday in Belem. He said that the judge had ordered arrest warrants, and not mass murders. "And yet, there was a massive killing." Lula was on his way back from Malaysia in a plane without internet when the raid occurred. According to a source in the presidential palace, Lula has kept a low-profile since then. His administration is "walking on eggs" according one source. A second source stated that "the government cannot take responsibility for this but it can't also support the massacre." In a report submitted to the Supreme Court by the Rio State government, it defended the operation claiming that the security forces had used "proportional" force and "no deaths have been reported outside of the narco terrorist organization," suggesting that police actions were targeted. Support for Police Killings New polls suggest that despite the brutality of the operation, there is widespread support in the country for the police action. AtlasIntel's survey of Brazilians, published on Friday, showed that 55% supported the operation. Residents of Rio State were even more supportive at 62%. The results highlighted the political difficulties facing the leftist President, whose administration is struggling to meet voter demands for stricter security policies. Adeilton da Silva, 65, a Rio resident who works as a security guard in Copacabana, said, "A good criminal will be dead." "If it happened every week, criminals would be terrified." Brazil's political left has seized the opportunity to capitalize on this incident. Claudio Castro, the conservative ally who had ordered the operation and was a close ally to former President Jair Bolsonaro, has gained 10 points of approval following the incident, according to a separate Genial/Quaest survey conducted on Sunday. Ibaneis, the governor of the Federal District also supports Castro. In an interview he stated that it was astonishing that the organized crime had not only seized Rio de Janeiro, but also other major cities and capitals of state across Brazil. This is despite Brazil producing very little drugs and not manufacturing heavy weapons. Right-wing politicians and political analysts draw parallels between the popularity of President Nayib Bukele's anti-gang policy curtailing due processes in El Salvador, as well as that of his anti-gang policy. In an interview on Monday, Romeu ZEMA, the conservative governor from Minas Gerais said that "El Salvador's experiences demonstrate that meaningful changes are possible, but they depend on having a willing government to take action." Zema and five other governors congratulated Castro and the Rio de Janeiro police force two days after the raid. They said that the slain had the opportunity to surrender and give themselves up. Only those who did not want to did so. Fear of more violence The Genial/Quaest survey found that despite Castro's portrayal of the raid, it did not do much to reassure the Rio public. A majority of Rio residents reported feeling less safe. The result is more violence, said Paulo Henrique Machado Cruz, a 54-year old parking attendant from Rio. "You do not solve the problem; you only make it worse." You scare children and destroy families. The Supreme Court of Brazil may give in to the demands made by left-wing politicians for an investigation into police violence in Rio, which would also lead to a federal probe of this deadly operation. Sources close Lula are concerned that the incident could undermine his recent gains ahead of the elections in 2026. The fallout is likely to continue, as the investigations unfold. According to the most recent Datafolha survey, Lula's approval rating increased to 33%, its highest level this year. Meanwhile, disapproval dropped to 38%. The Supreme Court Justice Alexandre de Moraes led a high-level police operation meeting in Rio on Monday. He was joined by the Governor Castro, officials from law enforcement, and representatives of the public prosecutors and defenders offices. Moraes oversees a landmark case at Brazil's Supreme Federal Court that challenges the use of force by Rio police in Brazil's informal shantytowns, known as favelas. Luciana de Janiero in Rio de Janiero; Lisandra Paraguassu, Brasilia; and Lucinda Elliot in Montevideo. Additional reporting by Ricardo Brito in Brasilia. Brad Haynes, Michael Learmonth and Brad Haynes edited the story.
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Steel company Kloeckner Bets on Defence Growth amid Rising Demand
After reporting its third-quarter results, German steel processor Kloeckner & Co stated that it would be focusing its efforts on expanding its defense footprint on its domestic market. In March, Germany relaxed its strict debt rules to allow for an exemption on defence spending. It plans to increase this to 3.5% by 2029 - above the NATO target 2%, which was only achieved in 2024. Guido Kerkhoff, the CEO of Kloeckner, said that the company has experienced an increase in demand for its products from the defense industry. Kloeckner is also active in Germany and in the U.S.A., particularly in the shipbuilding sector. Kerkhoff stated that the defence industry would play a larger role in the future. He added that, while the demand for the sector was not as high as other industries, such as the automotive, orders were increasing. In the first half of this year, Kloeckner expanded its defence portfolio with the acquisition by Cologne-based Ambo-Stahl. This company specializes in high-tensile, wear-resistant special steels and ballistic steels. Kerkhoff stated that "Defence is a good niche because we excel at metalworking, and can expand it beyond the current small batch production." The company announced that it received official certification to process armour materials for German Federal Armed Forces on its Kassel site and was preparing large-scale orders for defence from all over Europe. The metals and steels processor reported that its third-quarter shipments increased by 1.9%, to 1,144 million metric tons. This was primarily due to growth in the Kloeckner Metals Americas division. The company reported an adjusted core profit (EBITDA), which was 50 million dollars, for the quarter that ended September 30. This is a double-digit increase from the previous year. Kloeckner Metals Europe reported in a earnings presentation that it had made the first positive contribution to EBITDA for the market since 2023.
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India's Grasim reports higher profit on chemical strength; Paint unit CEO resigns
India's Grasim Industries announced a higher profit for the second quarter on Wednesday. This was due to a greater demand for its chemical products. The Aditya Birla Group company posted an 8.05 billion rupee ($91.59 millions) profit for the period July-September, up from 7.21 milliards rupees the previous year. Revenue rose by 23% to 96.10 trillion rupees. Grasim’s chemicals business, which accounts for about a quarter, grew to 23,99 billion rupees in revenue, an increase of 17% from a previous year. The company's standalone numbers do not include earnings from its subsidiaries UltraTech Cement or Aditya Birla Capital. Grasim has seen its margins squeezed by its investments in "Birla Opus" - the paints brand it launched last year - as well as increased competition. Grasim’s earnings before interest tax, depreciation, and amortization margins dropped to 4.06%, from 4.52% a few years ago, as its total expenses grew by 26.5%. RakshitHargave who was the CEO of the paints division and left the company in December 5 will also resign from his position as CEO. The company said that while Grasim searches for Hargave’s successor, Himanshu Kapania, an insider, will be overseeing the business until a new leader is found. ($1 = 87.8950 Indian Rupees) (Reporting and editing by Krishna Chandra Eluri in Bengaluru, Hritam Mukherjee from Bengaluru)
Can Africa benefit from the critical mineral wave?
Africa is home to 30% of the world's minerals
Africa is looking for more profits as global demand surges
African leaders want to drive value for money at the COP30
Clar Ni Chonghaile & Kim Harrisberg
To capitalize on this burgeoning market, the continent needs to address the power shortages and skills gaps. It also has to tackle trade barriers, industrial capacity limitations, and the lack of skilled workers.
Hany Besada is a senior fellow and professor at Wits School of Governance, as well as a senior fellow at London School of Economics' Firoz Lalji Institute for Africa.
Africa's mineral resources, which include cobalt and lithium, are around 30% of those in the world.
The International Energy Agency predicts that the demand for lithium will grow fivefold between 2040 and 2050, and graphite and Nickel demand will double. Demand for cobalt and other rare earth elements is expected to rise by 50-60% by 2040.
Besada stated that Africa must "build local value chain integrations of mining, refining, manufacturing and innovation" to help the continent achieve a greener economy.
Zimbabwe, Africa's largest lithium producer, is encouraging mining companies to process minerals in its country to boost its economy.
Zhejiang Cobalt, a Chinese company with a $400 million investment in Zimbabwe, announced in October that it would begin producing lithium sulphate in the first quarter 2026 at its new plant.
African countries are hoping to gain support from the Global South at the United Nations COP30 Climate Talks in Brazil, in November. They want to make sure that the demand for minerals to fuel the digital economy, and the clean energy transition, translates to growth, jobs, and development.
Ibrahima Aidara is the deputy Africa director of the National Resource Governance Institute. He said that Africa wants to be an active participant in the green economy and a beneficiary.
"This means an industrial strategy that creates jobs and protects rights, and allows countries to climb up the value chain instead of being stuck at the bottom."
What is blocking the way?
Aidara cited the Democratic Republic of Congo as an example of where mineral wealth led to child labor, displacement, and armed conflict.
In Africa, the barriers to mineral processing, also known as beneficiation, include a lack electricity, high tariffs among African countries, infrastructure problems and cumbersome procedures.
"Removing trade barriers is crucial... Besada stated that if you don't, your efforts to (mineral) beneficiation industrialisation and industrialisation will remain aspirational.
Regional cooperation, such as the African Continental Free Trade Area(AfCFTA), is essential. It aims to unite all 1.4 billion citizens in over 50 countries into one market.
The AfCFTA could gain momentum with the imposition of tariffs by Donald Trump, the U.S. president. It was launched in 2021 and has less than 50% of its members actively trading within the framework.
The African Union’s Green Minerals strategy, launched in this year, as well as the Lobito Corridor Railway, which connects Zambia’s copper belt with Angola’s Atlantic Coast, are both examples of how cooperation can make Africa more than just a supplier.
The minerals boom in West Africa has led to a revival of resource nationalism. Countries, and particularly military regimes such as the one that governs Guinea's bauxite rich Guinea, have imposed conditions on foreign mining firms, forcing them to add value.
Aidara, however, said that this approach may not bring lasting benefits to local communities.
"This problem is bigger than any one country." We think that at the national level, we need well-defined and evidenced-based strategies in order to leverage minerals and create economic and industrialisation possibilities.
Listening to Gen Z
Africa's streets are also calling for a better use of the resources.
In the last year, protests by so-called Gen Z from Kenya to Madagascar saw young Africans express frustration about everything from corruption and power cuts. In October, protests in Madagascar led the country's president to resign.
"There is a hunger for change among civil society groups, large populations and young people alike. "With the digital proliferation, people see how much things have changed in neighboring countries," Besada stated.
Even dictatorial governments are aware that this engaged populace may not accept that only wealthy elites, foreign or local, can benefit from the national resources.
The growing middle class in Africa also plays a part.
They pay taxes and have a greater interest in the way economies are run. "They have more to loose if things don't go well, and governments know this," Besada added.
The COP30 agenda will include a discussion on how to make sure that the energy transition is beneficial for local communities.
Amnesty International, as well as rights groups from Brazil to Indonesia and more than 100 civil societies groups want the government to place transition minerals and communities affected by mining at the forefront of climate action.
They called on the United Nations, governments, and indigenous peoples to work together with civil society and other stakeholders to improve governance in the sector.
(source: Reuters)