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Copper prices rise on the back of falling inventories
Copper prices reached their highest level in over a week Monday, as lower oil costs eased concerns about economic growth and demand. The market was also focusing on dwindling stocks. Benchmark copper prices on the London Metal Exchange were up 0.6% to $13,876 per metric ton at 0903 GMT, after reaching $13,900. This was their highest price since July 22. The drop in oil after U.S. president Donald Trump called off his 'fresh attack' on Iran to seek a deal that would curb Tehran’s nuclear ambitions eased concerns about price pressures, according to traders. Britannia Global Markets stated in a report that "the markets are still headline driven as we begin the week. Energy markets remain the main focus." The underlying fundamental picture for copper appears to be supportive. The inventories in the London Metal Exchange and China Metal Exchange are in a depletion state. The copper stocks registered at the LME have dropped by nearly 40% since May, to 244,025 tonnes. This is their lowest level since February. Since February of last year, producers and traders have shipped copper to the United States, after President Donald Trump threatened to impose import tariffs. This created a premium in U.S. Copper over LME Prices. The U.S. Commerce Department had to finish a review on the copper market before?June 30 but Trump hasn't yet announced any decision regarding tariffs. Nickel prices fell in other parts of the world after Indonesia resumed its exports. This eased supply concerns for the near future. The contract for three months was down by 1.2% at $17,040 per ton. Indonesia's Chief of Staff Dudung Abdurachman said the ban only applied when rare earths was the primary product. The clarification has reportedly reduced the 'fear of prolonged disruptions to Indonesian nickel shipments. Officials have yet to finalise testing procedures and concentration limits. Other metals saw a 1% gain in aluminium to $3.215 per ton. Zinc rose 1.1% to $3.682 and tin remained unchanged at $55,295.
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Oil prices fall on hopes for a peace agreement with Iran and yen firms following intervention
On Monday, oil prices plunged sharply and European stock markets rose as hopes grew of a peace agreement in the Middle East. Meanwhile, the yen strengthened?to an all-time high after the U.S. confirmed a joint intervention to?support a weak currency. Brent crude futures fell $4.50 or more than 5% to $83.40 per barrel after U.S. president Donald Trump announced that talks with Iran would take place on Monday. He had previously called off an assault on Iran in order to pursue a plan to reopen Strait of Hormuz. European stocks rose 0.4% on Monday, kicking off August in a positive note. The German DAX set an intra-day high and closed the day up 1.3%. Bruno Schneller is the managing partner of multi-family office Erlen Capital Management. He said that "for equity markets, fundamentally, the picture remains positive". Companies with resilient business models and strong pricing power continue to outperform. S&P futures increased by 0.5%, while Nasdaq Futures gained 0.6%. Florian Ielpo's research, Monday, as head of macro for Lombard Odier Investment Managers noted, showed that 86% of companies had surpassed earnings expectations. Asian stocks suffered as the new month began, following a turbulent and wild July that saw investors worry about massive investments in AI. Japan's Nikkei fell 1% while South Korea's KOSPI dropped more than 5%. The MSCI world stock index was flat as a result. YEN BEAR COWER FOLLOWING JOINT INTERVENTION The Japanese yen gained over 0.5% to 156.70 US dollars after a sudden movement earlier in the day, when it reached its highest since early May at 155.2. This put traders on high alert for further intervention. Japan's Finance Ministry confirmed on Monday that the U.S. and Japan conducted a coordinated yen buying intervention, and they will not hesitate to continue, as a rare bilateral measure to stop the yen from falling to its lowest level in 40 years. U.S. Treasury Sec. Scott Bessent said that the United States will also consider in the coming months increasing the size of Federal Reserve's Repurchase Facility providing temporary dollar liquidity, calling this tool an "important backup". Matt Simpson, senior market analyst at StoneX, said that Besent's comments carry more weight than his intervention. It feels like the Japanese yen is at its lowest level for the year. "Joint Intervention" is a phrase that has a lot weight on these markets, and it's rarely used." Trump said that the United States helped Japan to 'prop up the yen' as a show of friendship and in order to help the global economy. Tokyo's unilateral intervention between late April to early May caused only a short?yen recovery, whereas a rate increase in June by the Bank of Japan gave little support, underlining the challenges policymakers face due to rising oil prices and an interest-rate gap with other major economies. Before the recent interventions, the yen was rooted at a 40-year low of 163.99 dollars per yen, and net short positions were around $12.5 billion. This is the largest amount of money that has been held in the yen in the past two years. Masahiko loo, senior fixed-income strategist at State Street Investment Management, said that 155 is the next level to watch. Bessent's?actions and comments, in which he repeated his call for further interest rate hikes from the BOJ, have brought monetary policy into focus. Elsewhere, ?U.S. Treasury yields fell as oil prices dropped. The 30-year bond yield fell 4.5 basis point to around 5.23%. This is a slight decline from the 19-year high reached last week. Investors were confused by the Iran War and the Federal Reserve's policy outlook in July. Reporting by Nell Mackenzie and Ankur Banerjee, both in London; editing by Muralikumar Anantharaman and Jacqueline Wong.
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UK bond yields drop as oil prices fall on renewed hope for a peace agreement with Iran
British government bond yields fell 'on Monday, as oil prices dropped by $4 per barrel after U.S. president Donald 'Trump announced that he would be resuming talks with Iran and calling off military strikes. At 0715 GMT, the yields on two-year gilts, which are sensitive to interest rate forecasts in the short-term, fell by?around nine basis points to 4.325%. This was a greater fall than that of German or U.S. government bonds. The 10-year gilt yields fell?below 5 percent, falling by?8 basis points to 4.975%. Meanwhile, the 30-year gilt rates were also 8 basis points lower at 5.702%. Michiel Tukker is ING's senior UK and Euro zone rates strategist. The relationship between rates and oil prices is not easing. Tukker said that the longer oil prices are elevated, the greater the chance of a second-round inflation effect. Suban Abdulla reported; David Milliken edited.
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South Korean stocks plunge over 5% in August, as chipmakers are the main culprits
South Korean shares closed more than 5% down on Monday. The start of August was a rough one as investors sold off the heavyweight chipmakers after a record rally in the previous session. The benchmark KOSPI index fell 5.1% to 6,257.45 after surging by 18% in the previous session. The gauge, however, fell 22.2% during July for its biggest monthly decline since October 2008. The stock market in Seoul has been slashed due to a rapid winding down of leveraged bets on heavyweight chipmakers, and concerns about the durability of capital expenditures by AI hyperscalers. The record Friday rally was followed by fresh selling on the Monday after, highlighting the fragile sentiment surrounding AI investments and the outsized impact of leveraged retail betting on the heavyweight chipmakers. Samsung Electronics, and its rival SK Hynix, which together account for over half of the KOSPI Index, have shed 9% and 8,7% respectively. "Today's drop is better interpreted as a rebalancing of positions rather than a fundamental change." Billy Leung is an investment strategist with Global X ETFs Australia. He said that Korean equities are now a "high beta proxy" for global AI sentiment. The near-term path will remain volatile, given the amount of leverage in the system. However, the demand background underneath the volatility remains strong. William Bratton of BNP Paribas' Cash Equity Research in APAC says that the KOSPI volatility can be seen by the sharp swings this year. 32 of 42 daily movements of over 5% during the last decade occurred this year, as of July 31. Regulators introduced measures to limit the impact of highly volatile financial instruments. Investors remain unsure whether these measures will be enough to survive the current market slump. Bratton noted that "our discussions with investors indicate a high level of frustration" because the current market volatility is overshadowing the fundamental story. Data showed that 'July exports exceeded market expectations due to a 179% increase in semiconductor shipments. A purchasing managers survey conducted by S&P Global also revealed that factory activity was expanding at a faster pace in July, based on the export demand. Other automakers in the KOSPI were?Hyundai Motor, and Kia Corp, which is a sister company, both rose 1.3%, and fell 1.7%. According to exchange data, foreigners sold shares worth $2,826.2 billion ($1.98 billion), after selling a total amount of $9.86 trillion in July. According to a source, the won strengthened to 1,426.20 against the U.S. Dollar, but it remained below its 1,418-level reached last Thursday, after foreign exchange authorities made a rare dollar selling intervention.
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Gold prices rise as oil prices fall after Trump delays Iran attack
Gold prices rose on Monday as oil prices dropped after U.S. President Donald Trump waited to launch a new attack on Iran, hoping for a quick deal. This helped ease concerns about inflation and rising interest rates. As of 0655 GMT, spot gold was up 0.6% to $4,063.35 an ounce. U.S. Gold Futures rose 0.1% to $4,053.70. After authorities intervened on the foreign exchange market to support yen prices, the U.S. Dollar was under pressure. Tim Waterer is the chief market analyst for 'KCM Trade. He said that gold has had a relatively positive start to the week, but the gains are still limited due to the uncertainty surrounding the oil markets and the Middle East. Trump stated that talks with Iran would take place on Monday, but he declined to give a deadline. Brent crude dropped nearly 6%. Since the beginning of the U.S. - Iran conflict, gold has been under pressure as a rise in inflation caused by war could lead central banks to increase interest rates. While bullion has traditionally been viewed as an inflation hedge, its appeal is diminished in a high interest rate environment since it doesn't yield any interest. Participants in the market will also be focusing on the U.S. employment reports that are due this week. These include the ADP Employment Report, weekly claims for joblessness, and the nonfarm Payrolls report. Waterer stated that "any renewed escalation of the Middle East, which?pushes the oil higher, or a strong NFP that reinforces the September rate-hike chances, could cap the downside." Three U.S. Federal Reserve members who dissented from the meeting last week and favored a rate increase expressed concern on Friday about the inflation remaining stuck above the Fed's target of 2% without an immediate rise in short-term borrowing rates. In a recent note, Standard Chartered analysts said that they continue to expect the gold price to recover on seasonal buying. Spot silver rose 0.9% to $58.17; platinum increased 0.2% to 1,645.89; and palladium grew 1.1% to $1.287.19.
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Oil prices fall on hope of Iran Deal, but yen firms are still active after intervention
The oil prices fell and the?U.S. Stock futures in Europe and the U.S. rose Monday amid growing hopes for a Middle East peace agreement, while the yen strengthened to a high of three months after the U.S. Japan and the United States confirmed a joint intervention in order to support the fragile?currency. Brent crude futures fell more than 4%, to $83.88 per barrel, after U.S. president Donald Trump announced that talks with Iran would take place on Monday. He had previously called off an imminent strike on Iran in order to reach a agreement to reopen Strait of Hormuz, and resolve the impasse regarding Tehran's nuke capabilities. S&P futures increased by 0.6%, while Nasdaq Futures rose by 0.8%. European futures rose 0.8%. Asian stocks were down at the beginning of the week following a turbulent month that saw wild swings in the AI market. Investors worried about massive capital expenditure and whether they would provide returns quickly. Japan's Nikkei fell 1% while South Korea's KOSPI dropped more than 5%. MSCI's broadest?Asia-Pacific share index outside Japan fell 1%. YEN BEAR COWER FOLLOWING JOINT INTERVENTION The Japanese yen rose 0.5% to 156.49 US dollars after an abrupt move earlier in day that saw it reach its highest level since early May (155.2), putting traders on high alert for another round of intervention. Japan's Finance Ministry confirmed on Monday that the U.S. and Japan conducted a coordinated yen buying intervention, and they will not hesitate to continue. This is a rare bilateral action taken to stop the yen from falling to new 40-year-lows. Scott Bessent, U.S. Treasury secretary, said that the United States will also consider increasing the size of Federal Reserve's repurchase facility in the coming months to provide temporary dollar liquidity. He called the tool "important backstop". Matt Simpson, senior analyst at StoneX, said that Besent's remarks carry more weight than his intervention. It feels like the Japanese yen is at its lowest level for the year. "The term 'joint interventions' is rarely used in these markets, but it carries a great deal of weight." Trump said that the United States helped Japan support the yen on Sunday as a gesture of friendship and in order to aid the global economy. Tokyo's unilateral intervention between late April to early May only caused a short yen recovery, and the Bank of Japan rate hike in the month of June provided little support, underlining the challenges facing policymakers due to rising oil prices and an interest rate differential with other major economies. Data from an American regulator showed that the yen was at a 40-year low of 163.99 dollars per yen in the recent weeks, and had net short positions of approximately $12.5 billion. This is the highest amount in the past two years. Masahiko LOO, senior fixed income analyst at State Street Investment Management, said that 155 is the level to watch in the near term. It has effectively served as a market floor/resistance since the May intervention of this year. Bessent's repeated calls for the BOJ to increase interest rates and his actions have brought monetary policy into sharp focus. On Monday, the 2-year JGB rate, which is most sensitive to short-term monetary policy changes, briefly reached 1.545%, its highest level since 1995 as markets priced in an early rate increase. "Intervention could shape the next few weeks. The next few years will be shaped by BOJ normalisation and hedging flows. Loo stated that the next major move of the yen could be upwards, not downwards. Oil prices dropped, which led to lower yields on U.S. Treasury bonds. The 30-year bond yield fell 3.7 basis point to 5.238%. This is a slight decrease from the 19-year high that was reached last week. Investors were confused by the Iran War and the Federal Reserve's policy outlook in July, which caused the yield to jump 372 basis points. Reporting by Ankur banerjee from Singapore, Editing by Muralikumar Anantharaman & Jacqueline Wong
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South Korean shares fall over 5% following record rally, as chipmakers are leading the sell-off
South Korean shares fell more than 5% Monday, kicking off the month of August in a rough?note. Investors sold off heavyweight chips makers?after a record rally during the previous session. As of 0420 GMT, the?benchmark?KOSPI Index fell as much as 5.5%. It had soared by an unprecedented 18% on Friday. The gauge, however, fell 22.2% during July and was the steepest drop in a month since October 2008. The stock market in Seoul has been slashed due to a rapid winding down of leveraged bets on heavyweight chipmakers, and concerns about the durability of capital expenditures by AI hyperscalers. The record Friday rally was followed by fresh selling on monday, which underscored the fragile sentiment surrounding AI investments and the outsized impact of leveraged retail betting on heavyweight chipmakers. Samsung Electronics, and its rival SK Hynix, which together account for more than half the KOSPI Index, both fell by 8.4% and 7.6% respectively. "Today's drop is better interpreted as a rebalancing of positions rather than a fundamental change." Billy Leung is an investment strategist at Global X ETFs Australia. He said that Korean equities are a good proxy for the global AI sentiment. The near-term path is likely to remain volatile, given the amount of leverage remaining in the system. However, the demand background underneath the volatility remains strong. William Bratton of BNP Paribas' Cash Equity Research in APAC says that the KOSPI is volatile. This year, 32 of 42 daily movements of more than 5 percent over the last decade occurred. Regulators introduced measures to limit the impact of high-volatility financial products. Investors remain skeptical that these measures will be enough to survive the current market slump. Bratton noted that "our discussions with investors indicate a high level of frustration" because the current volatility in the market is overshadowing the fundamental story. Data showed that July exports exceeded market expectations, thanks to a 179% increase in semiconductor shipments. A purchasing managers survey conducted by S&P Global also revealed that factory activity expanded at a faster pace in July due to export demand. Hyundai Motor, the sister company of Kia Corp, and other automakers were also up or down in the KOSPI. According to exchange data, foreigners sold shares worth 2,16 trillion won ($1.51billion) on Monday after selling a total of 9.86 trillion won last month. According to a source, the won strengthened to 1,429.40 against the U.S. Dollar, but it remained below its 1,418-level reached last Thursday, after foreign exchange authorities made a rare dollar selling intervention.
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Swiss stocks: Factors to be on the lookout for on August 3.
Here are a few of the main factors that could affect Swiss stocks on Monday. BUSINESS STATEMENTS HOLCIM - AG Swiss building materials'supplier HOLCIM said?on a Sunday that it planned to sell its Philippines business in a deal worth at least $807 millions to China Huaxin Building Materials. NOVARTIS FDA approves 'pluvicto' for PSMA+ metastatic prostate cancer with hormone-sensitive metastatic (MHSPC). This could be a?new standard in metastatic disease. Analysts' Views COMET HOLDING AG: Berenberg increases target price from CHF 480 to CHF 490- COMET?HOLDINGAG: JP Morgan increases?target to?CHF565 from?CHF500 BUCHER INDUSTRIESAG: Berenberg reduces target to CHF360 from CHF366 ECONOMY Swiss July CPI is due at 0630 GMT. Swiss July Manufacturing PMI is due at 0730 GMT. SNB sight deposits due at 0800 GMT. (Reporting by ?Zurich newsroom and Gdansk newsroom) |1|For Top ?News in ?a multimedia Web format on Eikon visit: https://bit.ly/2NDFd6g FOR RELATED PRICES, ?NEWS AND OTHER TOPICS, ?DOUBLE-CLICK ON: Daily Swiss stock market report in German All SMI ?constituent stocks DJ STOXX index Top ?10 STOXX sectors Top ?10 EUROSTOXX sectors Swiss mid-cap index Swiss all-share index Swiss market digest Sector overview All Swiss news Swiss research news All equity news SPEED GUIDES: |1|
Houthis say they can reassess Red Sea attacks if Israeli 'hostility' stops
Yemen's Houthis said on Tuesday they could only reconsider their rocket and drone attacks on international shipping in the Red Sea as soon as Israel ends its hostility in the Gaza Strip.
Asked if they would stop the attacks if a ceasefire deal is reached, Houthi representative Mohammed Abdulsalam informed the scenario would be reassessed if the siege of Gaza ended and humanitarian aid was complimentary to go into.
There will be no halt to any operations that help Palestinian individuals other than when the Israeli aggression on Gaza and the siege stop, he stated, ahead of new reports of another thought attack.
A Marshall Islands-flagged, Greek-owned bulk provider on Tuesday reported that a rocket struck the water 3 nautical miles from the ship, which lay 63 nautical miles northwest of Hodeidah, Yemen, British maritime security firm Ambrey stated in an advisory note.
The United Kingdom Maritime Trade Operations (UKMTO). likewise sent an alert on the event, including that the team and. vessel were reported safe and continuing to next port of call.
There was a Panama-flagged, UAE-owned chemical/products. tanker around 2 nautical miles away at the time the. missile was spotted, Ambrey stated.
In what appears to be a related occasion, the Houthi's. Al-Masira television stated late on Tuesday that the U.S and UK. together introduced two airstrikes over Hodeidah, Yemen's oldest. port city.
Delivering risks have intensified due to duplicated Houthi strikes. in the Red Sea and Bab al-Mandab Strait considering that November in what. they refer to as acts of uniformity with Palestinians versus. Israel in the Gaza war.
Leading worldwide container line Maersk on Tuesday. recommended customers to prepare for disruptions in the Red Sea to. last into the 2nd half of the year and to develop longer. transit times into their supply chain preparation.
Seafarers stay in the firing line and have signed. arrangements to receive double pay when entering the high-risk. zones and have the right to refuse to sail on ships passing. through the Red Sea.
Galaxy Maritime Ltd, the UK-registered owner of automobile provider. Galaxy Leader which was hijacked by the Houthis on Nov. 19 with. its 25 crew members, said on Tuesday that the mariners from. Bulgaria, Ukraine, Mexico, Romania and the Philippines had. absolutely nothing whatsoever to do with the conflict in the Middle East.
Families of those being apprehended are now contacting the. international community to do something about it to protect the immediate. release of the team, Galaxy Maritime said in an update.
Arsenio Dominguez, secretary-general of the U.N.'s. International Maritime Organization (IMO), at a meeting called. for cumulative action to strengthen the security of those at sea. and for the release of the Galaxy Leader.
The Houthis, who control Yemen's most populated areas, have. sent shipping officials and insurance companies formal notification of what they. described a ban on vessels linked to Israel, the U.S. and Britain. from sailing in surrounding seas.
Yemen's formally acknowledged federal government said in a letter. distributed on Feb. 15 to IMO member countries that it had. alerted of the risk of the Houthi militia adding that the. group had continued to arbitrarily plant sea mines, while likewise. utilizing drone boats and rockets.
The fate of the abandoned freight vessel Rubymar was uncertain. after it was struck by a Houthi rocket on Feb. 18 in the southern. Red Sea and was dripping fuel. The vessel stayed immersed. If. it goes down, it would be the very first sinking linked to the. continuous Houthi campaign.
The ship's chartering broker told on Monday that it. was aiming to bring a work ship to close a hole caused by the. Houthi missile. There was no additional update on Tuesday.
(source: Reuters)