Latest News
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ConocoPhillips Begins Drilling Offshore Eastern Australia
U.S. independent ConocoPhillips began drilling its first exploration well as part of larger campaign searching for natural gas offshore eastern Australia, 3D Energi, its junior partner in the project, said on Monday.Work began over the weekend on the Essington-1 well, which will take 32 days to drill down to 2,650 metres (8,694 feet), 3D Energi said in a filing to the ASX.The well is the first in the Otway Exploration Drilling Program to develop new gas for Australia’s eastern domestic market, the company said.Eastern and southern Australia is facing supply shortfalls before the end of the decade, causing tension between gas exporters and domestic manufacturers.The campaign represents one of the first major offshore exploration campaigns in East Coast waters in almost seven years as the old fields in the Bass Strait offshore the state of Victoria run dry.Under the Otway program, Conoco will drill two wells this year, out of a total of six planned, and an option for four additional wells if needed.The tight domestic eastern gas market has been a source of political tension for many years.An "Australian Domestic Gas Mechanism" trigger was introduced in late 2017, limiting the export of spot cargoes when gas was tight from the three liquefied natural gas consortia in Queensland fed by the state’s onshore coal seam gas fields, with backup from Victorian gas supplies. ConocoPhillips is operator of one, Australia Pacific LNG.The current Labor government has considered expanding export controls since its first term in 2022. Japan has argued against controls as it is Australia’s largest LNG buyer.(Reuters - Reporting by Helen Clark; Editing by Christian Schmollinger)
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Oil prices fall amid market declines and strong dollar pressure
The oil prices fell on Wednesday as investors assessed the outlook for supply, amid a wider financial market slump and a stronger U.S. Dollar. Brent crude futures fell by 6 cents or 0.1% to $64.38 per barrel at 0408 GMT. They had previously hit a two-week low. U.S. West Texas Intermediate Crude was down 10 cents or 0.17% at $60.46. In a client note published on Wednesday, ANZ analysts noted that investors had left the energy market due to a risk-off mood across all markets. After an overnight sell-off led by tech on Wall Street, the market volatility in Asia reached levels last seen in April. The U.S. Dollar Index - which measures currency against euro, sterling, the yen, and three other counterparts - was stable at a 3-month high. This was boosted by divisions within the Federal Reserve Board, and indicates low odds of an interest rate reduction at the next policy meetings in December. The demand for oil can be affected by a stronger dollar. Demand is typically boosted by a U.S. rate cut. Tony Sycamore, IG's market analyst, said that crude oil was trading lower as the risk sentiment shifted to a negative direction, boosting the U.S. Dollar, a safe haven currency. Both factors weighed on crude oil prices. The API data on Tuesday showed that U.S. crude stocks rose during the week ending October 31. This put pressure on prices. Prices were still being affected by supply-side concerns. OPEC+ (Organisation of Petroleum Exporting Countries) and its allies, also known as OPEC, agreed to increase production by 137,000 barrels a day in December. The group decided that it would halt further increases during the first quarter 2026. The pause, however, was "unlikely" to provide meaningful support for November and December prices. LSEG analysts stated in a report. OPEC only increased its production by 30,000 bpd compared to 330,000 bpd the month before as OPEC+ agreed increases were offset due to declines in Nigeria. Libya, and Venezuela. Reporting by Colleen Liu and Siyi Liu from Singapore and Beijing; Editing by Christian Schmollinger, Christopher Cushing
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PMI data shows that growth in the UAE's non-oil sectors slowed slightly in October.
A survey on Wednesday showed that the growth in non-oil activity in the United Arab Emirates in October was less robust, and business confidence had fallen to its lowest level in almost three years. The S&P Global UAE Purchasing Managers' Index, which is adjusted for season, fell to 53.8 from 54.2 in Septembre but remained well above 50.0, the mark that indicates expansion. The growth was driven by an increase in new orders and improved economic conditions, as well as increased marketing efforts. The pace of growth in new business slowed compared to September and orders from foreign clients only increased marginally. The subindex for new orders fell from 57.2 in September to 56.0 readings in October. The employment growth rate has nearly stagnated. It is the lowest it has been since March. This partly reflected the relatively low level of confidence in business. David Owen, Senior Economist at S&P Global Market Intelligence, said that the most recent survey showed the firms to be the least optimistic for nearly three years. "Although many companies continue to expect that the economic climate will remain favorable and that orders will support activity, concerns about market competition and their potential impact on margins remained." Input costs increased modestly in July, the slowest rate of increase since June. This helped to keep output charges steady for a second month. Dubai, the business and tourism center of the UAE, saw its headline PMI reach a high of 54.5 in nine months, driven by a stronger output and robust consumer demand. Input prices rose at the fastest rate in six months. This led firms to increase their selling prices. Hugh Lawson, Hugh Lawson (Reporting)
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Shanghai copper continues to fall as supply concerns and weakening China demand weigh
Shanghai copper prices fell for the fourth consecutive session on Wednesday. Futures hit a record low of more than a week, despite a downward revision in Codelco’s output target for 2025, which still indicated a higher supply next season. The market was also affected by a weakening Chinese demand, and the strong dollar. As of 0250 GMT, the most active copper contract at the Shanghai Futures Exchange had fallen 1.25%, to 85,350 Yuan ($11,982.31) a metric ton. Shanghai copper fell as low as 84.900 yuan per ton in the first session of this week, marking a two-week high since October 22, when it reached 84.500 yuan per ton. The benchmark copper three-month futures on the London Metal Exchange fell 0.32%, to $10629.5 per ton. Codelco in Chile, the largest copper producer in the world, has cut its output forecast for 2025, but the new target still exceeds 2024. The first nine months of this year saw an increase in output compared to the same period the previous year. Analysts at Sucden Financial stated that the forecast was higher than 2024 despite it being adjusted down. This helped ease concerns about a near-term budget deficit "that has been underpinning prices since September". Copper demand in China remained weak, due to high copper prices. The Yangshan Copper Premium The, which measures China's appetite to import copper, was at $35 per ton on Monday, down from the $58 it had been in late September, and a significant drop from over $100 in May. The U.S. Dollar remained strong and weighed on the copper price, although it did ease slightly on Wednesday. The strong dollar makes commodities that are traded in dollars more expensive to investors who use other currencies. Aluminium fell 0.98% among the SHFE base metals. Zinc dropped 0.55%. Nickel tumbled 0.96%. Tin shed 1.24%. Lead was the only one to gain 0.32%. Wednesday, November 5 DATA/EVENTS (GMT) 0700 Germany Industrial Orders MM Sep 0700 Germany Manufacturing O/P Cur Price SA Sep 0700 German Consumer Goods SA Sep 0850 France HCOB Services, Composite Final PMI Oct 0855 Germany HCOB Services, Composite Final PMI Oct 0900 EU HCOB Services, Composite Final PMI Oct 0930 UK S&P GLOBALPMI: COMPOSITE - OUTPUT Oct 0930 UK Reserve Assets Total October 1400 Wednesday, November 5, DATA/EVENTS, GMT 0700 Germany Industrial orders MM Sep 0700 Germany Manufacturers O/P Cur Price SA Sept 0700 Germany Consumer Goods SA September 0850 France HCOB Services Composite Final PMI October 0855 Germany HCOB Services Composite Final pmI Oct 0900 EU HCOB Services Composite Final pmI Oct 0930 UK S&P GLOBALPMI: COMPOSITE OUTPUT Oct 930 UK Reserve Assets total Oct 1400 US S&P Global Comp
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Dalian iron ore falls further on China's demand concerns
Dalian iron ore prices fell for the fourth consecutive session on Wednesday due to concerns over demand in China, the top consumer. This is because of a persistently low manufacturing sector. By 0258 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange(DCE) had fallen 0.9% to 771 Yuan ($108.24) per metric ton. The benchmark December Iron Ore at the Singapore Exchange fell 0.43% to $103.15 per ton. A private sector survey revealed on Monday that China's factory activities in October expanded at slower pace due to a decline in new orders and production as a result of tariff worries. Official data released last week showed that China's manufacturing activity declined for the seventh consecutive month in October. The factory activity fell to 49.0 from 49.8 in August and remained below 50, which separates growth from contraction, due to a decline in new orders. Galaxy Futures, a Chinese broker, predicted that iron ore prices would remain low due to a weakening of steel demand and an increase in domestic inventories since the third quarter. Analysts at ANZ stated that although Hebei, a large steelmaking province in China has reissued a environmental protection alert, these measures are still focused on sintering activities and have not yet affected blast furnace activity. This limits the impact of iron ore on demand. Yet, in a report by Chinese consultancy Mysteel, "China's leading property developers increased their land acquisitions during the first 10 month of 2025. This indicates a cautious recovery in the real estate industry as some developers increase investments amid continuing financial pressures." Coking coal and coke, which are both steelmaking ingredients, have also lost ground. They fell by 0.82% each and 0.34% respectively. All steel benchmarks at the Shanghai Futures Exchange declined. Rebar fell 1.4%, while hot-rolled coils dropped 1.16%. Wire rod fell by 0.12%, and stainless steel declined 0.4%. ($1 = 7.1230 Chinese yuan) (Reporting by Lucas Liew; Editing by Subhranshu Sahu)
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Oil prices drop amid wider market decline, gains in US crude stocks
The oil prices dropped on Wednesday, amid a global sell-off that reflected concerns over economic growth and fuel demand. A stronger dollar and reports about rising U.S. crude stocks added to the worry. Brent crude futures dropped 36 cents or 0.56% to $64.08 per barrel at 0221 GMT. U.S. West Texas Intermediate Crude was down by 40 cents or 0.66% at $60.16. Both contracts continued to lose money from Tuesday. Oil markets fell as part of an overall slump in equity markets. Asian stock markets added on Wednesday to a drop overnight on Wall Street due to concerns that stock valuations were stretched, especially for companies linked to artificial intelligence. The U.S. Dollar rose against its peers due to the risk-off mood. The stronger dollar makes oil priced in dollars more expensive for holders other currencies. This can affect demand. Tony Sycamore, IG's market analyst, said that crude oil was trading lower as the risk sentiment shifted to a negative direction, boosting the U.S. Dollar, a safe haven currency. Both factors weighed on the price of crude oil. The American Petroleum Institute reported that U.S. crude stocks rose by 6,52 million barrels during the week ending October 31, according market sources who cited the API figures Tuesday. Prices are still being affected by supply-side concerns. OPEC+ (Organisation of Petroleum Exporting Countries) and its allies, also known as OPEC, agreed to raise output by 137,000 barges per day in December. The group decided that it would halt further increases during the first quarter 2026. The pause, however, was "unlikely" to provide meaningful support for November and December prices. LSEG analysts stated in a report. OPEC's own production increased by only 30,000 bpd in October compared to the previous month, as previously agreed OPEC+ increase were offset due to declines in Nigeria Libya and Venezuela.
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Wall St. shaken by fears of stretched valuations, Asian markets retreat
Investors' concerns over stretched valuations eroded confidence in the early trading of Wednesday, as Asian stocks continued to fall overnight on Wall Street. MSCI's broadest Asia-Pacific share index outside Japan fell by 0.8%. South Korean shares were the biggest losers, with a drop of 4.1%. U.S. E-mini Futures fell 0.4% after the S&P500 dropped 1.2% overnight. Chris Weston is the head of research for Pepperstone Group, based in Melbourne. There aren't a lot of reasons to buy, and the market is lacking a catalyst until Nvidia announces its earnings on November 19. The stock market is retreating after reaching record highs, amid fears that equity markets have become stretched. This comes as CEOs from Wall Street giants Morgan Stanley and Goldman Sachs asked whether such valuations could be sustained. Jamie Dimon, CEO of JPMorgan Chase, warned last month of the increased risk of a major correction of the U.S. Stock Market within the next 6 months to 2 years. The warnings coincide with a global surge of enthusiasm for generative AI that has affected stock markets around the world this year. SoftBank Group shares plunged 10%, while Japan's Nikkei index fell 2.5%. After the Bank of Japan released the minutes of its September policy meeting, the U.S. Dollar fell 0.2% to 153.41 yen. The dollar index (which tracks the greenback versus a basket other major trading partners) briefly reached a five-month peak of 100.25. The yield on 10-year Treasury Notes benchmark edged down to 4.0697% from its U.S. closing of 4.091% Tuesday. Bitcoin dropped below $100,000 for first time since last June but recovered and closed the day up 0.2%, at $100,499.70. Gold was up 0.1% at $3,936.48 an ounce after three days of consecutive losses. Early trading saw the euro single currency at $1.1484, after it hit a three-month-low following five consecutive days of declines. Brent crude remained unchanged at $64.44 a barrel. Reporting by Gregor Stuart Hunter Editing done by Shri Navaratnam
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Commodities pull Australian shares down on lower prices
Australian shares fell on Wednesday as weak performances by gold and iron ore mining companies weighed down on commodity stocks. However, positive financials helped to limit the downward trend. As of 2340 GMT, the S&P/ASX 200 was down by 0.2% to 8,798. The benchmark index closed the previous session at its lowest level in over a month. After the dollar strengthened overnight, investors quickly sold their gold stocks. Gold prices have risen 78% this year. On Wednesday, the gold sub-index fell as much as 4,7% to its lowest level for more than a week. Northern Star Resources, Evolution Mining and other gold miners have declined by 2.9% and 4.6% respectively. The mining stocks continued to lose ground, reaching a new low of one month amid the continuing weakness in iron ore due to weak demand from China. The sub-index dropped 2.5%. Mining giants BHP Group, Rio Tinto, and BHP Group fell 1.2% and 2.0%, respectively. The mining sub-index was also affected by the weak copper and gold prices. Australian energy stocks fell nearly 1% following the fall in oil prices, as weaker manufacturing data and a stronger dollar weighed down on demand. The technology stocks fell more than 2%. They took their cues from Wall Street which had closed sharply lower over night after the big banks warned of a possible drawdown in equity markets. The benchmark index was able to recover from its losses thanks to the 0.8% rise in heavyweight financial stocks. The "Big Four' banks rose between 0.4% to 1.4%. CBA, the largest lender, led the way with a 1.4% increase. Reserve Bank of Australia, which had kept rates unchanged as expected, took a cautious stance on further easing of monetary policy on Tuesday. Increased interest rates could potentially boost bank margins. The benchmark S&P/NZX50 index in New Zealand fell by 0.3%, to 13,562.94.
Mexico constitutional reforms more likely with super-majority in sight
Mexican Presidentelect Claudia Sheinbaum's ruling coalition is close to protecting a. twothirds bulk in both chambers of Congress, which would. pave the way to passing questionable constitutional reforms on. its own.
Preliminary arise from Sunday's election program Sheinbaum's. leftist Morena celebration and its allies will have the super-majority. in the lower house, but likely came up short in the Senate when. brand-new legislators are seated in September.
Sheinbaum will take workplace one month later on in October.
Below are possible reforms that have markets and investors. concerned, and resulted in a sharp decline in Mexican possession prices on. Monday.
LAST-DITCH EFFORT
Sheinbaum's coach, outgoing President Andres Manuel Lopez. Obrador, proposed a series of constitutional reforms in. February, some of which critics argue would remove essential. oversight bodies, wear down judicial self-reliance and concentrate. more power in the executive branch.
The 128-member upper home will have at least 82 senators. from Morena and its junior partners in the Green Celebration and Labor. Celebration, simply except a two-thirds majority, according to a. government presentation utilizing initial election results. In. the 500-member lower house, meanwhile, Morena and its allies. will have at least 365 members, or 73% of the body.
Lopez Obrador will overlap with the newly-elected lawmakers. in his last month in workplace in September, and on Monday he. suggested he will make a desperate effort to enact the reforms. before handing the baton to Sheinbaum.
I'm going to talk it over with Claudia ... to see which of. those efforts we can push for and get authorized, said Lopez. Obrador.
Issue about the shakeup sent stocks falling over 6%. and the peso as much as 4.3% lower.
INDEPENDENT OVERSIGHT BODIES
Amongst his propositions to eliminate what he has referred to as. ineffectiveness and inefficient costs, Lopez Obrador has proposed. to scrap the constitutionally-enshrined flexibility of information. body INAI, federal anti-trust company COFECE, advancement. examination firm Coneval and telecoms regulator IFT.
It would also put the energy ministry in charge of energy. regulators CRE and CNH, both of which are now independent.
Sometimes, he has implicated some of the agencies of promoting. corruption.
OVERHAULING THE ELECTIONS AUTHORITY
Throughout his administration, Lopez Obrador frequently berated. the agencies, also including the national electoral authority. INE, which he is seeking to totally revamp.
As lots of as 700,000 individuals filled the streets of Mexico City. in February to protest the proposed taking apart of the INE.
The reforms are a method of instituting electoral reform to. cement Morena's political hegemony, said Nicholas Watson,. handling director of consulting firm Teneo.
Lopez Obrador likewise proposes reducing the minimum required. level of voter participation for binding citizen referendums, a. method he utilized in the past when just a small portion of the. public got involved, and require they be scheduled on same day. as elections.
JUDICIAL, LEGISLATIVE MODIFICATIONS
Lopez Obrador also desires big changes in the judicial system,. consisting of the popular election of Supreme Court judges, other. magistrates, plus electoral authorities. Critics argue such. chosen roles would erode their current self-reliance.
The number of Supreme Court judges would even more be cut to. 9, from 11, and all judges would require to be renewed in an. remarkable election to happen in 2025, which has likewise. been slammed as a struck on an independent court system.
Lopez Obrador has actually argued the modifications are required because the. current judiciary serves a minority and sometimes arranged. crime at the expense of society.
Regarding the legal branch, the reforms would also cut. the variety of members of the lower house of Congress to 300,. from 500, and slash the number of senators to 64 from 128.
S&P Global Scores stated while higher centralization of. political decision-making and mixed political signals under. Lopez Obrador had actually decreased the independence of numerous firms,. essential checks and balances stayed.
Steps that deteriorate checks and balances could affect. private-investor self-confidence by producing perceptions of higher. risk, potentially affecting economic growth and sovereign. credit reliability, it alerted.
LAUNDRY LIST
Lopez Obrador may need to be narrow his list of reforms. provided the tight window between the last legislative session. under him and Sheinbaum's October inauguration. Still more. proposed constitutional reforms include:
-- Expanded retirement advantages for senior citizens 65 years. or older and disabled individuals, which some specialists alert might include. to long-lasting pressures on public finances
-- Paid occupation training for youths in between the age. of 18 and 29
-- a restriction on genetically modified corn that critics. state could deepen a present corn disagreement with the United States
-- a ban on water rights in locations dealing with drought
-- a ban on open pit mining and fracking
If enacted, a few of the reforms might intensify a spending plan. deficit which analysts say is likely to be a significant concern for. Sheinbaum when she takes office.
Investors are not just concerned that these constitutional. amendments will now be passed, but perhaps that Sheinbaum, Lopez. Obrador and MORENA may try to more entrench their brand name of. politics and economics into the constitution, said Jason Tuvey,. deputy chief emerging markets economic expert at Capital Economics.
(source: Reuters)