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Copper prices are impacted by profit-taking and lack of interest from China
The price of copper fell on Tuesday, as traders reported that a lack of interest from China's leading consumer led to profit-taking. Prices had risen 15 months earlier. At 1105 GMT, the benchmark copper price on London Metal Exchange had fallen by 0.5% to $10,134 per metric tonne. It reached $10,192.50 per ton on Monday, the highest level since June of last year. The rapid rise of copper to $10,000 per ton this month has pushed Chinese buyers away, traders have said. The Federal Reserve will meet on Tuesday and Wednesday to decide the interest rate in the United States. The expectation of a rate cut has weighed heavily on the U.S. dollar, which will make metals priced in dollars cheaper for holders of other currencies. This could increase demand. Analysts at Benchmark Mineral Intelligence said that given the high level of market consensus regarding the likelihood of a rate reduction, it's likely that investors and traders have been positioning themselves well in advance. This will dampen the immediate impact of any such mechanism. Traders reported that funds were placing bets ahead of the Fed's decision on higher copper prices and that there was a pickup in the amount of copper in storage warehouses monitored by Shanghai Futures Exchange. The Chinese demand for goods has heightened concerns. The focus is also on the zinc stocks in LME-approved warehouses The LME's total tonnage, 48,975 tonnes, has dropped by 60% since mid-July. Metal marked for delivery or cancelled warrants at 36% indicates another 17,600 tons are due to leave the LME. Low zinc stocks have fueled concerns about zinc availability on the LME and created a premium for the forward cash contract of three months. . The premium reached its highest level since October of last year. On Monday, it closed at around $27 per ton. After earlier reaching a six-month record of $2,985, three-month zinc fell 0.2% to $2,974 per ton. Other metals saw a 0.1% increase in aluminium at $2704 per ton. Lead was unchanged at $2002, while tin rose 0.5% to $34,825. Nickel retreated by 0.2% at $15,400.
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The Azerbaijani finance ministry expects GDP to grow by 2.9% in 2026.
The Finance Ministry predicted that Azerbaijan’s Gross Domestic Product (GDP) will grow by 2.9% between 2026 and 2027, a slight drop from the growth of 3% expected for this year. If the rate of GDP growth continues at this pace, it will also be below the Finance Ministry’s forecasted average annual growth of 3.5% over 2026-2029. Azerbaijan expects a budget gap of 2,3% of GDP or approximately 3,125 billion manats next year. Revenues are forecast to increase by 0.2% compared to 2025 forecasts and expenditures by 0.3% to 41.548 trillion manats. According to the ministry, this slight decline comes at a time when the oil and gas industry is expected to shrink by 2.4% by 2026. This will be an acceleration from the 0.2% drop set for 2025. This will be offset by a 4.9% increase in the non-oil & gas sector. Azerbaijan is a major oil and gas exporter. It has set the projected price of oil for its 2026 budget at $65 a barrel. This is down from $70 in 2025. The Finance Ministry said that by 2025 the total debt of the state is expected to reach 25.4 billion manats or 19.6% GDP. $1 = 1.7 manats (Reporting and writing by Nailia bagirova, Robert Harvey and Gleb Stolyarov; editing by Mark Trevelyan).
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Two people are killed and two homes are set on fire in Russian attacks against Ukraine
The regional governor reported that Russian forces launched an attack on Zaporizhzhia in Ukraine's southeast city early Tuesday morning. A 41-year old man was killed, and at least 18 others were injured. Ivan Fedorov confirmed that two children had been injured. The governor posted pictures online showing firefighters fighting fires in homes and other structures. Ukraine's emergency services reported that in Zaporizhzhia a fire had spread to three residential buildings as well as a service station, covering a total area of 350 sq. m. (4,000 sq. ft). Fedorov stated that preliminary reports indicated that Russian forces have carried out 10 attacks using multiple rocket launchers, causing damage to 10 apartment buildings and twelve private homes. I heard distant explosions very far away so we went to bed. Oleksii 35, a Zaporizhzhia local, said that a powerful explosion blew our windows out. I immediately ran outside to my neighbors to put out the fire. I was worried about them." Volodymyr Zelenskiy, the president of Ukraine, said that other Ukrainian cities were also attacked by Russian troops overnight. They launched over 100 drones and 150 glide bombs. Zelenskiy reported that one person died in the southern Mykolaiv Region. According to officials in the region, two people were injured in Kharkiv city in the northeast. The Russians attacked a large retail logistics centre in central Kyiv, causing thick columns of smoke to rise into the air and firefighter's to battle the fire. Zelenskiy wrote in a blog post on the X-platform: "This is exactly the type of aerial terror that Ukraine calls for a joint defense ...,". "Now is time to implement a multilayered air defence system for the protection of the skies in Europe." Zelenskiy reported that Russia had launched over 3,500 drones in different types this month. It also fired nearly 190 missiles and more than 2,525 aerial bombs. Reporting by Sergiy Chalia in Zaporizhzhia, and Anastasiia Mlenko in Kyiv. Writing by Olena Harmasch Editing by Gareth Jones
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Dollar falls as traders bet on Fed rate cuts
Investors bought U.S. stocks futures, assuming that the Federal Reserve will likely lower rates this week. They sold equities, however, in Europe where it is less likely that borrowing costs will fall further. The MSCI all-country index rose 0.15% and reached new record highs. Meanwhile, the pan-European STOXX 600 fell 0.15%. This was mainly due to the decline of rate-sensitive insurers and banks, who will lose if the European Central Bank doesn't cut euro zone interest rates any further. James Rossiter is the head of global macro-strategy at TD Securities, London. He said that markets are realizing there won't be any more cuts from the ECB. This has a negative impact on expectations for Fed to resume its easing policy. The markets are now pricing just a 40% probability of an ECB cut by 25 bps in June 2026, down from 50% last week. STOCKS SCALE NEW HEIGHTS Stocks have reached new highs in Wall Street due to the expectation of an imminent Fed rate cut. S&P 500 and Nasdaq Futures are both unchanged after both indices reached all-time highs during Monday's trading. Futures have already priced in 127 bps of Fed cut by July 2026. This means that policymakers will need to work hard to maintain investor confidence. There do appear to be quite some rate cuts already priced in. "On balance, that might suggest that the bar for an unexpected hawkish move is lower than for one that's dovish," said Thomas Mathews. The Fed is likely to stick to its cautious approach in communicating and will not reveal much. The markets reacted little to the news that Stephen Miran was narrowly confirmed to the Board of Governors of the U.S. central bank by the U.S. Senate, and a U.S. court of appeals denied President Donald Trump the right to dismiss Fed Governor Lisa Cook. Both moves are unlikely to have a significant impact on the Fed's Wednesday decision, as a 25 basis-point reduction is already fully priced. The Bank of Canada, in an eventful week, is expected to also cut rates this week by a quarter-point, while both the Bank of Japan, and the Bank of England, are expected to keep rates the same. U.S. officials and Chinese officials announced on Monday that they had reached a framework deal to transfer the short-video app TikTok under U.S. control. This agreement will be confirmed during a call between Trump's and Xi Jinping's Friday. The MSCI broadest Asia-Pacific share index outside Japan, which is the most widely followed index in Asia, rose to its highest level for more than four years on Tuesday. Its last trade was 0.03% higher. Japan's Nikkei index and Topix index also set new records. The Dollar: Pressure on the Dollar Fed's decision to cut bets has kept the pressure on the dollar which, on Tuesday, fell to its lowest level since July 4, against a basket currency. The euro, which has been at its highest level since July 2, also reached its highest point at $1.1795. The yields on U.S. Treasury bonds were relatively unchanged after falling the previous session. The two-year yield was the last to be at 3,5345%. The benchmark 10-year rate was nearly unchanged at 4.0317%. Oil prices in commodities reversed their course after having increased from the previous session as investors assessed impact of Ukrainian drone strikes on Russian refineries. Brent crude futures dropped 0.37%, to $67.19 a barrel. U.S. crude was 0.23% less at $63.07 per barrel. The spot gold price reached a record high of $3697.05 per ounce. This was boosted by the weaker dollar, and by expectations of a Fed rate reduction.
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Gold records record highs as Dollar drops ahead of Fed meeting
Gold reached a new record high on Tuesday. This was helped by the weaker dollar, which is expected to be a factor in the Federal Reserve meeting that will take place later in the afternoon. The monetary authority has been widely predicted to lower interest rates. As of 0748 GMT the spot gold price rose by 0.3%, to $3688.41 an ounce. It had earlier reached a session high of $3697.05 per ounce. U.S. Gold Futures for December Delivery rose 0.2% to $ 3,726.70. The dollar has fallen to its lowest level in over two months against other currencies. The Fed is expected to cut rates next week, according to UBS analyst Giovanni Staunovo. CME FedWatch shows that traders are pricing in an almost certain 25 basis-point cut to the rate at the end the two-day session on September 17. There is a slight chance of a reduction of 50 bp. In a post on social media, U.S. president Donald Trump called for Fed chair Powell to implement a "bigger rate cut" in a Monday's post. Carlo Alberto De Casa is an external analyst with Swissquote. He said that traders are betting on the Fed continuing to reduce interest rates in 2019. This will also support gold. In a low interest rate environment, non-yielding gold bullion is likely to perform well. "We should expect higher volatility around the Fed's statement, especially if the market perceives the rate reduction to be accompanied by a hawkish comment. Staunovo said that Trump's desire for lower rates will likely lead to gold moving higher in the months to come. A U.S. court of appeals refused to let Trump fire Fed Governor Lisa Cook on Monday. This is the latest in a long-running legal battle which threatens the Fed’s independence. Gold's spectacular rally to successive records highs is expected to continue for the remainder of 2025. However, a healthy correction will be needed before it reaches $4,000/oz by 2026, according traders and industry analysts on the sidelines the India Gold Conference held in New Delhi. Silver spot was unchanged at $42.70 an ounce. Platinum was stable at $1400.58, and palladium was up 0.3% at $1187.94.
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Copper prices fall from multi-month highs on profit-taking
The copper price fell on Tuesday, from its multi-month highs. Profit-taking by traders overshadowed the support of cemented bets that a U.S. interest rate cut would occur and trade talks between China and the United States could progress. The Shanghai Futures Exchange's most traded copper contract, which had been trading at 81,530 yuan per metric tonne, lost some of its earlier gains and ended the daytime trade up 0.06%. The contract had reached its highest level since March 28, at 81.530 yuan, earlier in the day. The benchmark three-month copper price on the London Metal Exchange fell 0.61% by 839 GMT to $10,124.5 per ton. On Monday, the contract reached a 15-month high of $10,192.5. The traders are trying to cash out their profits in advance of the Fed's final rate decision. Two other traders claim that the rapid rise in prices has been met with resistance by downstream consumers. This has led to a limited increase for them. A Chinese copper smelter who requested anonymity said that downstream buying had slowed down after prices rose over 80,000 Yuan. U.S. officials and Chinese officials came to a framework agreement Monday on the short-video app TikTok. This sparked hopes of a close trade deal, which lifted sentiments and limited price drops. Analysts at Everbright Future noted that the prices were also supported by increased bets on a rate reduction by the U.S. Federal Reserve. Analysts at Benchmark Minerals Intelligence wrote in a report that rate cuts increase copper prices by combining a weaker US dollar with the expectation of higher demand. Nickel, among other SHFE metals rose 0.36%. Aluminium fell 0.33%. Tin dropped 0.42%. Zinc lost 0.22%. Lead fell 0.38%. Aluminium was largely unchanged, while nickel, lead, and zinc all declined. Tin, however, rose 0.23%. Click here to see the latest news in metals.
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Iron ore prices rise amid recovery of Chinese steel production
The iron ore futures price rebounded Tuesday due to the improvement in China's steel production. Meanwhile, gains in steel benchmarks reflect a positive sentiment despite weak housing statistics. The January contract for iron ore on China's Dalian Commodity Exchange was up 0.82% at 803.5 Yuan ($112.94) per metric ton. As of 0730 GMT, the benchmark September iron ore traded on Singapore Exchange was $0.24 per ton higher. According to Chinese broker Galaxy Futures, in early September, the key steel companies produced an average daily production of 2.087 millions tons. This represents a 7.2% increase from one month to another. The news comes as China's crude-steel output fell for the third month in a row in August, when steelmakers in Tangshan - China's largest steelmaking center – curtailed operations to prepare for a major Beijing military parade. Brazil's raw steel production fell by 4.6% on an annual basis in August. Chinese consulting firm Mysteel said that after weeks of declines in production, iron ore concentrats were produced by Chinese mining firms last week. This is a sign of the gradual restarting of operations of domestic miners, according to Chinese consultancy Mysteel. As the property market continues to be weak, China's new homes prices dropped 0.3% month-on-month in August. On Thursday, the China Iron and Steel Association (a state-backed organization) will host a meeting for the heads of the iron ore purchasing at steelmakers. Coking coal and coke both increased in the DCE, by 5.84% each. China's coal production fell by 3% in August compared to the same month last year, its lowest level in more than a year. Production restrictions continued to be a factor. The Shanghai Futures Exchange steel benchmarks gained a majority of ground. Wire rod and hot-rolled coil increased by 0.09% and 1.25% respectively, while stainless steel dropped by 0.27%.
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Top executives of KPI Green Energy say that SBI will raise $363 Million from KPI Green Energy.
Top KPI executives said on Tuesday that India's KPI green energy is planning to borrow 32 billion rupees (363,39 million dollars) from the largest lender in the country to expand production at its renewable power plant. Analysts say that the loan approval is one of the largest deals in recent history. It comes as the Indian government targets 500 gigawatts non-fossil energy capacity by 2030. KPI Green Energy is a renewable energy company that develops, builds and manages solar, wind, and hybrid power solutions. Sahil Yahya, chief financial officer, said that the company will raise the funds through a 20-year State Bank of India loan with an interest rate of 8,45%. The money will be distributed in stages over the next 1,5 years. Faruk G. Patel said that by 2027 the company will have completed all its projects, which will generate revenue of about 10 billion rupees. The company issued its first green bonds on Tuesday. It plans to raise 6.7 bn rupees with a coupon rate of 8.5%. The rating of the rupee-denominated 5-year bond has been boosted by a 65% GuarantCo guarantee, a company from the Private Infrastructure Development Group. Patel explained that without the guarantee they would have been forced to pay a coupon of 14-15% to raise money via equity or quasi-equity instruments. Yahoo reported that the guarantee raised the instrument's rating from A+ up to AA+ by CRISIL. Yahoo reported that Aseem Infrastructure Finance had purchased the majority of bonds while Jio Finance, SBI Capital Markets and SBI Capital Markets bought the remainder. The executives stated that SBI Capital Markets is the only arranger of the issue.
MercadoLibre, Latam's Amazon.com competitor, rides high with AI, loans, drones
When Wagner Dias and his other half Mariana needed a loan to grow their children's clothing organization, the Brazilian entrepreneurs turned to Argentina's MercadoLibre Inc, the online platform they use to offer their items.
MercadoLibre, which is making a push into a progressively congested regional fintech and credit market, currently had the data it required to green-light the loan. The Amazon.com of Latin America has actually used developments like that to cement its status as the area's most important company with a market capitalization exceeding $100 billion.
Because they had access to all my app history as a seller and buyer, there was no bureaucracy. The money was transferred instantly, stated Dias, who obtained in total some $30,000 to construct the couple's business in Sao Paulo.
I can request credit with one click, said Dias, explaining that the very first $11,000 tranche of the loan had actually boosted sales by 40% within six months.
MercadoLibre, which has overtaken Brazilian state energy giant Petrobras this year as Latin America's most important business, is discovering brand-new methods to serve Dias and others in its online ecosystem to secure shoppers and sellers. Its brand-new offerings, ranging from credit to movies, have actually helped fuel its quick growth.
The company is growing digital marketing incomes toward $ 1 billion this year with tie-ups for material with companies like Disney. It has added warehouse to support sellers, and is using expert system to increase its loan business and enhance administrative expenses.
We believe that we have a tremendous competitive advantage in the reality that we have an ecosystem, the firm's CEO Marcos Galperin told Reuters in an interview in Buenos Aires, including that the financing and commerce company spurred each other.
When you have more funding, e-commerce grows. And vice versa.
MercadoLibre is the dominant e-commerce gamer in Latin America, weathering aggressive presses by Amazon and others. However on fintech it still lags behind pure digital financing rivals such as Brazil's Nubank or Argentina's Uala. It wishes to duplicate the crossover success of Chinese online market Alibaba, whose Alipay wallet is amongst the top players in the world's second biggest economy.
Galperin stated growth of the fintech business was strong thinking about the hard local competition. Fintech incomes increased nearly a 3rd over the in 2015, second quarter data revealed, though it declined a little as a portion of overall sales. Its credit system grew at a quicker rate, near 50%.
Galperin stated MercadoLibre wanted to be a major alternative for Latin Americans as they quickly move far from money as the standard type of payment and savings.
Generally the concept is to give each user a private banker of their own, he said. He downplayed concerns some analysts have revealed about non-performing loans, saying the wide variety of data the firm had on its users minimized that risk.
We utilize expert system, we utilize machine learning, we have a great deal of information between MercadoLibre and Mercado Pago that we can utilize ... We have a lot info on these individuals that we feel very comfortable providing them loans.
BUYING NEW SHOES, WHAT ABOUT A LOAN?
Investors are bullish on the business's outlook. The stock is currently at $2,100, and in September, Morgan Stanley treked its target price on the shares to $2,500 from $2,175. Also in September, JPMorgan signed a $250 million funding offer to expand MercadoLibre's fintech business in Mexico.
Growing use of smart devices in Latin America is opening up online conserving and spending options to millions in an area where around a quarter of the population has little or no access to bank accounts or relies solely on cash.
We're actually just scratching the surface of all that we can do, stated Galperin, describing that e-commerce and digital payment use was far higher in Asia, Europe and The United States And Canada. He was targeting tripling active users to 300 million.
However MercadoLibre faces strong competition from local fintech competitors like Nubank or Uala, which secured a banking license in 2015 in Mexico and is also using AI to help credit scoring systems, a company representative stated.
It's still smaller than big rivals, however it has been calling attention in the area, said Maria Clara Infantozzi at Itau bank in Sao Paulo.
Argentine confectionary entrepreneur Silvina Riveros was growing tired of conventional banks but decided to get a loan from Uala to buy home appliances mainly due to the less expensive commissions for the service and the speed of crediting money into your account, she stated.
I have actually quit on high street banks, there's too much documentation and administration.
MercadoLibre's prospective ace card, nevertheless, stays its mix of commerce and finance. The firm is improving areas like food, apparel, beauty and electronic devices, and has actually opened more warehousing and distribution centers to accelerate shipment.
It is also try out an electric delivery fleet and drones to get products to hard-to-reach consumers in separated areas of Brazil. While drone innovation stayed specific niche, Galperin stated those geographies take place a fair bit in Latin America.
On the other hand, countless clients like 24-year-old Irlanda Zermeno from Mexico City, are securing smaller sized loans from the platform to help them purchase more items at check out.
Zermeno informed Reuters she was shopping on the MercadoLibre app for a set of new shoes, when a message turned up offering her credit to make the purchase in installments.
I didn't try to find (a credit line), they suddenly simply asked me: do you want one? said Zermeno, who works in public relations. Ever since then I utilize it regularly. If you pay back on time, the credit quantity you can take increases.
(source: Reuters)