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Copper reaches highest level since May
On Wednesday, copper prices reached their highest level since mid-May, as lower oil prices eased inflation worries for the metal that is vital to growth. Aluminium prices remained 'near 4-year highs' amid concerns about reduced supply in the gulf region. The price of three-month copper at the London Metal Exchange dropped 0.2% in open-outcry official trading to $13,597 per metric ton after reaching $13,746, which was its highest level since May 15. Aluminium fell 0.3% to $3.663, after reaching its four-year peak of $3.707.50, on Tuesday. The Iran War has hampered deliveries in the Middle East. September alumina contracts in China have reached a month-high due to concerns about Guinea's feedstock. Base metals in China, the world's largest metals consumer, were supported by data that showed industrial profits grew at their fastest rate since November 2023. A stronger yuan currency also made dollar-priced goods more appealing to Chinese buyers. Ole Hansen is the head of commodity strategy for Saxo Bank. He said: "With the current global equity rally led by AI and semiconductor stocks the prospects of a strong and sustained demand, especially copper and aluminum, remain firmly intact." The current price action appears to be more of a pause in an established trend. Hansen stated that the technical support for copper and aluminum is around $13,400 each and $3,600 respectively. The short-term resistance level for aluminium is $3,700 where attempts to "break higher" have so far been met with profit-taking. Copper stocks in LME registered warehouses are depleted COMEX copper stock levels continue to rise, with an additional 2,500 tons cancelled in Taiwan. Further inflows were seen. The LME's on-warrant stocks of copper are now at 271,575 tonnes, the lowest since mid-March. LME stocks of aluminium are also available Data?showed that the number of tonnes fell to 259,625 after Malaysian authorities?cancelled 4,275 tons. Nickel fell 0.1% from $18,950 to $18,950 after hitting $19,170 - the highest price since May 14. (Reporting and editing by Eileen Soreng, Janane Venkatraman, and Polina Devlin)
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Newcleo, a nuclear firm, will list on Nasdaq with a valuation of $2.4 billion.
The?nuclear energy?company Newcleo entered into an agreement with NewHold Investment Corp III to?list?on the Nasdaq stock exchange through a merger. Newcleo develops advanced modular lead-cooled reactors, and nuclear fuel from reprocessed material. It will collaborate with its partner Oklo Inc. to launch a program by the U.S. Department of Energy is looking at using the nation's Cold War plutonium as fuel for nuclear reactors. The company stated that "Oklo will lead the utilisation of excess plutonium while Newcleo brings relevant fuel-cycle expertise." Nuclear energy is considered a promising option in the United States to meet the increasing demand for power from data centres and artificial intelligent. Newcleo announced that the merger with NewHold will be valued at $2.4 billion. The transaction is expected to close in the second half of 2026. Since its founding in 2021, the company has raised about $780m from private investors including the Agnelli Family's Exor Seeds Venture Capital Fund.
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Turkey restricts Russian Urals imports due to rising prices and Asian demand
Turkey will cut its imports of Urals crude from Baltic and Black Sea port this month to the lowest level for almost a year and a half, according to LSEG, Kpler, and trading'sources. Turkey is the third largest importer in the world of seaborne Russian crude after India and China. It mostly buys Urals, and occasionally other grades. Kpler data indicates that Turkey's Urals exports will average 161,000 barrels per day in this month. This is down from an average of 189,000 barrels per day in January-April, and 302,000 barrels per day in May 2025. This is despite the fact that global oil prices have risen due to a reduction in crude supply from Gulf countries. "Turkey has become accustomed to Russian crude being sold at a substantial discount. A trader at a major Western firm said that they were not "prepared" to pay such high prices for the grade. According to two other sources, the decline in Urals shipments into Turkey in April or May was due to a stronger demand for Urals in Asia and particularly India. One trader stated that there was "not much on the market". LSEG data show that seaborne Urals imports to Turkey will?fall to their lowest level since at least January 20,25. This decline is partially offset by increased Turkish imports of CPC Blend, which comes from either Russia or Kazakhstan depending on cargo. After the Iran War, the premium on Urals delivered ex-ship in Indian ports jumped to as high as $8 per barrel compared to Brent before dropping to $2 to $4. This is still a significant increase over levels seen before the conflict. In the first half, Russia's western ports increased their?crude loadings by about 9%. They were averaging 2.2 million bpd in April. Reporting by. Mark Potter (Editing by Mark Potter).
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HIGHLIGHTS-Tennis-French Open day four
Highlights from the French Open's fourth day on Wednesday (times GMT). 1040 BENCIC THRU?THIRD RUND Belinda Bencic, the 11th seed from Switzerland, was the first woman to reach 'the third round' after she defeated American Caty McNally 6-4 6-0. Play Under Way 0909 The temperatures at Roland Garros were hot, and are expected to reach 32 degrees Celsius in Paris. Iga Swiatek will face Sara Bejlek on Court Philippe Chatrier, a Czech player who is ranked third. Novak Djokovic, a 24-time Grand Slam winner, will play Valentin Royer in the afternoon. READ MORE Svitolina plays down title talk, Zverev aims for a strong performance against Machac at the French Open Sabalenka and Osaka bring style to Paris, but Medvedev is undone Sinner breezes through to the second round of French Open Pegula fails to make it past the first round of French Open Osaka embraces role of entertainer following another grand walk-on Boisson's injury-ravaged performance at Roland Garros disappoints the French women Kouame, a teenager, becomes the youngest male Grand Slam winner in 17 years. Medvedev shocked by wildcard Walton at French Open first round FRENCH OPEN ORDER OF ?PLAY ON WEDNESDAY (prefix number denotes seeding): COURT PHILIPPE CHARTIER (play starts at?1000 GMT). Sara Bejlek (Czech ?Republic) v 3-Iga Swiatek (Poland) 7-Elina Svitolina (Ukraine) v Kaitlin Quevedo (Spain) Valentin Royer (France) v 3-Novak Djokovic (Serbia) Tomas Machac, (Czech Republic), vs.?2-Alexander Zverev, (Germany). COURT SUZANNE LEENGLEN (play starts at 0900 GMT). 8-Alex ?De Minaur (Australia) v Alexander Blockx (Belgium) Yuliia Starodubtseva (Ukraine) v 2-Elena Rybakina (Kazakhstan) 13-Jasmine Paolini (Italy) v Solana Sierra (Argentina) 15-Casper Ruud v?Hamad Mejdovic (Serbia). COURT SIMONNE MATHIE (play starts at?09:00 GMT) Caty McNally, U.S. vs.?11-Belinda Bencic, Switzerland Camilo Ugo Carabelli (Argentina) v 11-Andrey Rublev 32-Ugo Humbert (France) v Quentin Halys (France) 8-Mirra andreeva v Marina Bassols Ribera, Spain (Reporting from Suramya Kaushik in Bengaluru and Rohith Nirra in Bengaluru. Editing by Christian Radnedge).
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China's PDD misses quarterly revenue estimates on softer demand
PDD Holdings, the Chinese ecommerce giant, missed Wednesday's market expectations?for its quarterly revenue, as persistent economic weakness slowed demand for?the company’s domestic discount marketplace, Pinduoduo. In premarket trading in the United States, shares of the company that operates Temu, an international e-commerce platform, dropped more than 5%. Chinese retailers are struggling to attract customers as the prolonged property crisis and worries about wage growth and jobs have reduced consumer spending power. This has impacted demand for companies like PDD. PDD faces stiff competition from JD.com, Alibaba and other rivals who are offering steep discounts and promotions to attract customers. Temu has emerged as a popular platform for consumers to purchase everything from homeware to shoes at affordable prices. This is capturing the demand of lower-income households worldwide. Temu's model of delivering cheap goods directly to customers from China, while generating strong growth in some markets, is facing increasing regulatory scrutiny. According to LSEG data, PDD reported total revenue of 106.23 bn yuan (15.67 bn) for the first quarter ended in March. This compares with an average analyst estimate of 109.33 bn yuan. The net income attributable to ordinary shareholders was 12.5 billion yuan. This is down 15% from the previous year due to higher?research and development?expenses, as well as increased order fulfillment and payment-processing fees.
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AMERICAS MORNING BID- Out of the blue chip
What's important in the U.S. and Global Markets Today By Mike Dolan. Editor-at-Large for Finance and Markets The chips are blue. The scramble to buy AI stocks seems to have no limits. Micron Technology, a memory chip manufacturer, briefly joined the $1 trillion club in Wall Street on Wednesday. Memory chips are in high demand and there is a shortage. Both companies have seen their shares increase by about 10 times over the past year. Below, I'll go into more detail. Check out my most recent column about why rising bond rates could have a negative impact on stocks in the near future. Listen to the most recent episode of Morning Bid's daily podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. The race for chips continues unabated, as Micron's and SK Hynix shares both surged by 20 percent this week. SK Hynix has now reached the same milestone as fellow South Korean chip company Samsung. Samsung also hit $1 trillion earlier this month. The?shares of both companies rose again on Wednesday following a landmark agreement on bonuses for Samsung employees. This deal avoids a damaging strike and certain memory-chip workers are 'in line' for bonuses exceeding $400,000. Samsung will set aside an important portion of its chip division's profits to pay for the bonuses. South Korea's KOSPI Index soared by over 3% Wednesday, led primarily by SK Hynix and Samsung. On Wall Street, optimism about the stock market continued as the S&P 500 closed at record highs on Tuesday. Goldman Sachs, meanwhile, has raised its year-end estimate for the S&P 500 to 8,000 compared with 7,600. This is a 6% increase based on continued corporate earnings. U.S. stocks futures rose before the bell Wednesday while European shares rose after the opening. The Conference Board's index of U.S. Consumer Confidence eased less than expected this month, a stark contrast to the University of Michigan's survey last week. The Iran standoff was largely unchanged, but hopes of a diplomatic breakthrough continued, despite Tehran's description of recent U.S. attacks as a?gross violation?of the two sides' ceasefire. Early on Wednesday morning, oil prices dropped by about 3%. This reversed some of the 4% increase from Tuesday. Isabel Schnabel, a member of the European Central Bank's board, said that rates should be raised next month - even if a U.S./Iran peace plan was agreed. Schnabel said that "looking through" was not an option because of the magnitude of the energy crisis. Chart of the Day SK Hynix surpassed $1 trillion for the first-time on Wednesday. Micron Technology, a U.S. listed company, briefly surpassed that threshold on Tuesday. Samsung Electronics also reached this milestone on May 6th. Samsung's shares rose 3%, SK Hynix shares closed 9% higher and SK Hynix shares closed 9% higher. Samsung avoided a strike by avoiding a 9% increase in its stock price. Micron stock has risen more than 1,200% in price since April of last year. Watch today's events * U.S. 5-year note auction (1 p.m. EDT), 2-year floating rate note auction (11:30 a.m. EDT) * ?U.S. All three speakers: Governor Lisa Cook, Fed Vice-Chair Philip Jefferson and Dallas Fed President Lorie?Logan Want to receive "the Morning Bid" in your email every morning? Subscribe to the newsletter. Follow us on LinkedIn, X and ROI. The opinions expressed here are the author's. These opinions do not represent the views of News. News is committed to the Trust Principles and a commitment to independence, integrity, and neutrality.
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German power prices rise as heatwave and lower wind supply demand increases
German power prices for the day ahead jumped by 29% on Wednesday as a heatwave across Europe increased cooling needs, and lower wind generation meant more expensive electricity sources such as coal-fired plants and gas-fired ones would be required to meet demand. This week has seen temperatures in Europe that are higher than normal, increasing the demand for air conditioners and cooling systems. Engie's EnergyScan cited exceptionally warm weather over the period as a?dominant factor. It noted that cooling degree days - a measure for demand for air conditioners - were at their highest levels in decades. The warm weather pattern is also expected to continue through the weekend. This will keep demand high, and the strong solar output will ease the pressure on the grid at midday. The data from LSEG showed that the German wind power production was 'forecast' to drop by 9.7 gigawatts per day, to 4.4 GW by Thursday. Residual load, which includes non-renewable power generation sources, is expected to rise by 8.2 GW up to 23.5 GW. Forecasters DWD and MeteoFrance have predicted temperatures in Germany to reach 30 degrees Celsius (86deg F) on Thursday. In France, they predict temperatures to rise above 30C at midday.
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James Wood and the Nationals aim for a 3-game sweep at Cleveland
James Wood has been on fire and the Washington Nationals have had their best start to a season since 2021. The Cleveland Guardians have felt the pain first-hand at their ballpark. Washington can complete a?three-game road sweep on Wednesday, when Nationals righty Miles Mikolas (0-3, 6.17 ERA), faces Guardians' righty Gavin Williams (7-3 3.25). Wood has pounded Cleveland pitching for their first two interleague games, going 7-for-9, with two homers, three RBIs and four runs. Wood, 23, will return to the top of the lineup in the afternoon's finale. Blake Butera, Washington's manager, said: "His ability to work walks and lay off pitches is incredible." "He's a lot of fun to watch." Wood is the leading major leaguer with 49 runs. He also leads the National League in on-base percentage (.413) and walks (46). He has been batting.369 in his last 17 games and is 24-for-65. The Nationals are two games above.500, matching their previous season's high. Washington has not?been over the break-even point this late into a calendar year since July 1, 2020, when the team was 40-39 and lost 58 of the final 83 games before finishing last in the NL East. Butera stated that "winning baseball games is fun." The Nationals rotation has also been impressive in recent times, with a 1.00 ERA - over the last six games - and 39 strikeouts compared to seven walks. Mikolas pitched five scoreless innings in his last outing on May 22, against the Atlanta Braves. In his three career appearances, he has a 1.01 ERA and a 1-1 record against Cleveland. The Guardians are comfortably leading the American League Central. However, their starting pitching has been a mess. Tanner Bibee, Joe Cantillo, and others have combined to throw just five innings over the last two days. They were hammered for six home runs and 11 total runs. Cantillo's two-inning outing on Tuesday was the shortest of his career. He lost?6-3. In the second inning, he gave up two runs to KeibertRuiz. He also allowed Wood to hit a home run for two runs. Bibee set a franchise record on Monday by dishing out five home runs in a 10-2 win. "I didn’t do my work and that can’t happen," said a?Cantillo whose 18 walks in May were the most allowed by a major leaguer. "Especially after Monday, I didn't allow us to win the match." Williams was brilliant in his two previous?starts. He struck out 18 batters without walking and allowed only two runs to be scored over 14 innings. This will be his first game against the Nationals. In 20 interleague appearances, he is 7-7 and has a 3.98 ERA. Williams, also known as "Big Rig", loves the sun and has the sixth best career ERA of all active starters in the daylight (minimum '30 starts). Williams' 2.83 is only behind?Jacob deGrom (2.02), Drew Rasmussen (2.14), Paul Skenes (2.55) Garrett Crochet (2.73), and Tarik Skubal (2.82). Stephen Vogt, the Guardians' manager, said: "It has been two hard losses but we are back to it on Wednesday." Washington's lineup makes you work. You can't get the other team to chase if you don't pound on their zone. Field Level Media
China's rising hydro and solar set to cap coal usage in 2024: Kemp
China's electrical energy usage increased by 209 billion kilowatthours, or 10%, in the first three months of 2024 compared with the same period in 2023, when the country was emerging from the exit wave of the coronavirus.
Consumption development was focused in production (+112. billion kWh) as factories returned to normal operations after. widespread disturbances caused by lockdowns in 2022 and 2023.
However there was also substantial development from services companies. ( +53 billion kWh), domestic users (+41 billion kWh) and. main markets such as farming and mining (+3 billion. kWh), according to the National Energy Administration.
Chartbook: China electrical energy generation
Generation from large-scaled grid-connected power plants. increased by 166 billion kWh (+8%) in the first 3 months of. 2024, according to separate data published by the National. Bureau of Stats.
Most of the extra generation was provided by thermal power. plants (+108 billion kWh) mainly fired by coal with a small. percentage burning gas.
There were smaller contributions from wind farms (+34. billion kWh), grid-connected solar generators (+17 billion kWh). and hydroelectric generators (+7 billion kWh).
Thermal generation increased 7% from the previous year to a. seasonal record of 1,603 billion kWh and accounted for 72% of. all grid-connected output.
By contrast, hydro generation increased by just 3% to 210. billion kWh and was well listed below the seasonal record of 221. billion kWh set in the very first quarter of 2022.
Hydro has actually been depressed by the relentless drought throughout. southern China that began in 2022 and lasted through 2023.
But southern areas have been struck by abnormally early and. heavy rains considering that early in April which must recharge water. resources and increase hydro output from May onwards.
SPRING RAINS
China's rainfall and hydro generation are concentrated in. the southern part of the nation, where spring rains are. followed by heavier precipitation during the damp phase of the. East Asian Monsoon from June to September.
South China represents 36% of the nation's acreage but. 81% of its total water resources, according to data assembled by. the central federal government's Ministry of Water Resources.
Four massive drain basins in the south (covering the. Yangtze River, Pearl River, Southeast Rivers and Southwest. Rivers) represent more than 80% of the country's hydro. generation.
South China experienced abnormally low rains during the. wet stage of the East Asian Monsoon in 2022 and precipitation. remained second-rate throughout 2023, curtailing river levels. and generation.
In 2024, nevertheless, the spring rains arrived abnormally early. and have actually been heavy, reaching records in some locations, which. should improve hydro generation.
Guangdong province experienced its very first significant flood this. year on April 7, the earliest given that at least 1998, according to. the water ministry.
Rainfall up until now in April in the city of Yibin at the. confluence of the Minutes and Yangtze rivers, and on the border. between Sichuan and Yunnan, the two enormous hydro manufacturers in. the southwest, has actually been the greatest since 2022 and, before that,. 2016.
Like rains, hydro generation follows a pronounced. seasonal pattern - most affordable in the very first quarter before rising. dramatically in the second and third quarters with the spring and. monsoon rains, then tapering in the fourth quarter.
Relatively heavy spring rains should bring a huge boost in. hydro generation during the 2nd quarter this year, which will. continue throughout the 3rd quarter if the monsoon goes back to. typical.
COAL RELIEF
China relied heavily on coal-fired generators during the. winter season of 2023/2024, running existing generators for more hours. and starting up a number of brand-new power plants to meet electrical power. demand.
But record amounts of solar generation were set up in. 2023 and the huge deployment has actually continued in the first three. months of 2024. Solar generation capacity has actually doubled since 2021. and quadrupled considering that 2018.
The mix of quick development in solar with a post-drought. healing in hydro generation need to limit the need for a lot. coal combustion in the second and 3rd quarters of 2024.
Provided the monsoon rains are near-normal, coal-fired. generation will grow more gradually over the rest of the year.
China's underlying growth in electricity usage is so. substantial the federal government has no option however to pursue an. all-of-the-above strategy embracing a mix of coal and. renewables.
The scale of the usage growth means that coal-fired. generation could continue to rise in 2024 and for a few more. years.
But the massive release of renewables is already flexing. the coal consumption curve lower and emissions are likely to. peak before completion of the decade in line with the federal government's. revealed target.
Associated columns:
- China's hydro generators await the rains to come (March. 24, 2024)
- China's renewables rollout signals future peak in coal. ( January 19, 2024)
- China braces for record winter season electrical power need. ( November 24, 2023)
- China's rainfall is in the wrong place for hydropower. ( August 22, 2023)
John Kemp is a market expert. The views expressed. are his own. Follow his commentary on X https://twitter.com/JKempEnergy.
(source: Reuters)