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Saudi Arabia's private non-oil sector growth accelerates in August-PMI
A survey on Wednesday showed that Saudi Arabia's private non-oil sector growth was stable during August. Business activity expanded at a faster pace than it did in July as new orders rose. The Riyad Bank Saudi Arabia Purchasing Managers' Index grew to 56.4 from 56.3 in August, and remained above the 50 mark indicating growth. Naif Al Ghaith is the chief economist at Riyad Bank. He said that "the slight increase was a sign of another month's steady growth driven by improved demand conditions, modest growth in output, and continued gains in employment." "Although the growth in activity has slowed from the highs of earlier this year, there is still a positive trend." The growth of new orders was accelerated by the improved economic conditions. New export orders were also boosted by marketing and collaborations in the Gulf Cooperation Council Region, which marked the fastest increase in four months. The subindex of new orders increased to 60.1 from 59.7 points in July. The number of employees continued to increase, although at a slower rate than previous months. Companies expanded their sales teams and launched new projects. In response to increasing orders, inventory growth reached its highest level in four months. The survey revealed that companies raised their prices for the third month in a row, and faced a steep rise in input costs due to higher purchasing costs as well as global inflationary pressures. The business confidence index rose from its 12-month low reached in July, and the outlook for output increased. This indicates a positive mood among non-oil private sector companies. (Reporting and Editing by Hugh Lawson).
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PMI data shows that slowing sales in August weighed on the growth of UAE's non-oil private sectors.
A survey on Wednesday showed that the growth in the non-oil sector of the United Arab Emirates grew slightly in August, thanks to a faster increase in production, but sales grew at their slowest rate in over four years. The S&P Global UAE Purchasing Managers' Index, seasonally adjusted (PMI), rose to 53.3 from a 49 month low of 52.9 at the end of July. It remained above the 50 mark which signals growth. The slowdown in sales growth was attributed to supply chain issues and competition. The New Orders subindex fell from 54.2 in July to 53.1 in August. This is the lowest reading recorded since June 2021. David Owen, Senior Economic Analyst at S&P Global Market Intelligence, said that "the sales growth in the UAE's non-oil sector weakened again for the fourth consecutive month in August." The slowdown was a further concern about fading momentum in the economy and made output more dependent on work backlogs. The output growth rate improved to a six-month peak, with companies reporting increased activity as a result of ongoing projects and the growth of local markets. Purchases fell for the first four-year period, due to reduced stock levels and a weaker demand. The cost pressures increased, with wage inflation at a 15-month peak, and selling prices rising at the fastest rate in five month as firms passed higher costs on to consumers. The overall business climate improved in comparison to the previous month. Firms expressed optimism for future growth, citing stable domestic conditions and solid client relationships. The survey revealed that Dubai's non oil sector continued to grow strongly. Its headline PMI was 53.6 in august, up from 53.5 in the previous month, and supported by the fastest rate of output growth in seven months. Hugh Lawson, Editor and Reporter (Reporting)
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Cadeler Sets Up New Taipei Office as it Targets Asia-Pacific Market
Danish offshore wind installation firm Cadeler has opened new, expanded offices in Taiwan's capital Taipei, underscoring the company’s focus on strengthening client collaboration and long-term growth in the Asia-Pacific region.With the opening of this new office, Cadeler has reinforced its position to pursue and deliver offshore wind projects across the many growing markets in the region, from Taiwan’s well-developed offshore wind sector to emerging hubs such as Vietnam, the Philippines, South Korea, Australia, and beyond.Following its merger with Seajacks/Eneti in 2023, Cadeler has built on a solid regional foundation in Taiwan.The company has established a strong project track record including Taiwan’s first commercial scale offshore wind farm, the Formosa 1. Currently, Cadeler has two vessels actively operating in Taiwanese waters, with Wind Maker installing 14 MW turbines at Ørsted’s Greater Changhua 2b & 4 Offshore Wind Farm and Wind Zaratan active on a long-term service agreement with Vestas.Looking ahead, Cadeler’s vessels have secured a regional pipeline that runs through the end of the decade. In 2027, Wind Maker and her crew are contracted to install turbines at Copenhagen Infrastructure Partners’ Fengmiao 1 project. And in 2028, Cadeler will install Siemens Gamesa 14 MW turbines at the Formosa 4 Offshore Wind Farm in Taiwan developed by Synera Renewable Energy (SRE). “Cadeler’s new Taipei office becomes the hub for expanding our regional footprint – supporting local teams, anchoring client relationships, and coordinating cross-border opportunities as we build momentum for the clean energy future across Asia-Pacific,” said Mikkel Gleerup, Cadeler CEO.
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Gold hits record high on fiscal concerns as long bond yields increase
On Wednesday, the global decline in long-dated bond prices extended into Asia. Meanwhile, gold reached a new high as worries about government debt and economic expansion grew. After overnight gains in gilts and Treasuries with similar maturities, the 30-year Japanese government bonds (JGBs) yield reached an unprecedented 3,255%. Japan's Nikkei index of shares opened lower following Wall Street declines after data showed continued contractions in U.S. Manufacturing. The data from the European services sector will provide an indication of how the countries are coping with the unpredictable tariff regime imposed by U.S. president Donald Trump. On Friday, the Federal Reserve will release key U.S. labor data that could indicate a rate cut. Skye Masters of National Australia Bank's markets research said on a podcast that the rise in bond rates is affecting your U.S. tech sector. It's all about the government's budget deficit and its implications for bond issuance. Trump said on Tuesday that his administration would ask the Supreme Court to expedite a ruling on tariffs, which an appeals court ruled illegal last week. The court allowed tariffs to remain in place until October 14, Data released on Tuesday showed that U.S. manufacturers contracted for the sixth consecutive month in August, as they struggled to cope with import tariffs. The euro zone and Britain's purchasing managers indexes are scheduled to be released on Wednesday. The U.S. nonfarm employment figures on Friday will include data on private payrolls and job openings. This information will provide clarity on the labour markets that have become the focal point of the Fed's policy debate. The Fed is widely expected to cut interest rates in the next few weeks. Markets are pricing in a 89% chance that they will do so. Bond yields are inversely related to bond prices. In recent years, investors have become increasingly concerned with the debt levels in many countries, from Japan to America. As markets prepare for the sale of debt on Thursday, the 30-year JGB's yield has risen 8 basis points to a new record of 3.28%. The yield of the benchmark 10-year Treasury note in the United States rose by 0.4 basis points, to 4,281%. The 30-year Treasury yield rose 0.7 basis point to 4.978%. This is the highest it has been since mid-July. The broadest MSCI index of Asia-Pacific stocks outside Japan rose 0.1% while Japan's Nikkei fell 0.5%. After the release of second-quarter Gross Domestic Product data, Australia's S&P/ASX 200 Index fell 0.9%. The dollar's winning streak continued, with a 0.3% increase to 148.79 Japanese yen. The dollar index (which tracks the greenback versus a basket currencies) was flat at 98.431 following a 0.7% rise on Tuesday. Sterling is currently trading at $1.33716, down 0.2% on the day. The pound fell by 1.1% during the previous session, and 30-year gilt rates reached their highest level since 1998. This was after the British government issued 10-year bonds at the highest rate in 17 years. In Europe, French Premier Francois Bayrou is likely to lose his confidence vote after opposition parties protested against the cuts he made to government spending. Meanwhile, British Finance Minister Rachel Reeves will raise taxes to meet her fiscal targets in her Autumn Budget. U.S. crude oil ticked upwards by 0.2%, to $65.69 per barrel. Gold spot reached $3,546.99 - a new record. Futures indicated a strong opening in Europe. The Euro Stoxx 50 futures rose 0.6% across the region, while German DAX futures gained 0.5%, and FTSE futures gained 0.3%. The S&P 500 E-minis (U.S. Stock Futures) were up by 0.1% to 6,430.5.
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Goldman Sachs raises its fourth-quarter forecast for iron ore prices.
Goldman Sachs increased its average forecast price for the fourth quarter to $95 per metric ton, up from $90 previously. By 0151 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange rose by 0.78% to 777.50 yuan ($108.70). As of 0141 GMT, the benchmark October iron ore traded on Singapore Exchange was up by 0.63% to $103.1 per ton. Goldman Sachs has maintained its forecast for the end of 2026 at $80 per ton. First Futures analysts warned that while prices have recovered, ore demand is not showing signs of improvement. This week, iron ore demand was suppressed as steelmakers at the top Chinese production hub Tangshan had to reduce production in order to improve air quality in Beijing for a military celebration of the end to World War Two. Analysts expect the consumption of the key ingredient in steelmaking to increase after the production restrictions are lifted on September 4. Coke and coking coal, the other ingredients used in steelmaking, have a loss of 0.4% and 0.09% respectively. The benchmarks for steel on the Shanghai Futures Exchange are mixed. The benchmarks for steel on the Shanghai Futures Exchange were mixed.
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Gold's record run continues on the back of strong inflows into safe-haven assets
Gold prices continued their record run Wednesday as investors grew more confident that the U.S. Federal Reserve would cut interest rates in the next few months due to persistent market uncertainty. As of 0145 GMT spot gold was up by 0.1%, at $3,537 an ounce. It had previously reached a record high of $3,546.99. U.S. Gold Futures for December Delivery gained 0.3% at $3,602.50. The U.S. administration of President Donald Trump said that it would ask the Supreme Court to issue a ruling quickly on tariffs which a U.S. court of appeals found illegal last Thursday. Ilya Spirak, global macro manager at Tastylive said: "The Supreme Court's decision seems to have introduced a lot more uncertainty in the market. They could drastically change the macro-scape if the decisions do not go the President's way." "The attempt to compromise Fed independence in some way, that is also a big deal." Gold is clearly the preferred metal, and momentum seems to be one-sided. Trump has publicly discussed the firing of Fed chair Jerome Powell and has consistently pressed the Fed to lower interest rates. Trump's attempt to fire Fed Governor Lisa Cook last month was a major legal test of the Fed’s ability to operate without political interference. According to CME Group’s FedWatch tool, U.S. rate-futures are pricing in 92% of a rate-cut of 25 basis points by the Fed at the conclusion of its two-day meeting on September 17. Gold that does not yield is usually a good investment in an environment with low interest rates. SPDR Gold Trust is the largest gold-backed ETF in the world. Its holdings grew 1.32% on Tuesday to 990.56 tonnes, their highest level since August 2022. Investors now await the U.S. Non-Farm Payrolls Data, due Friday, in order to determine the size and potential of the Fed rate cut this month. Silver spot fell 0.2%, to $40.82 an ounce. It had previously reached its highest level since September 2011. Palladium increased 0.7% and platinum gained 0.4%, respectively, to $1142.77.
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Australian shares fall to a two-week low amid economic data
Investors kept their distance from the market ahead of important economic data to get a sense of the Reserve Bank of Australia’s monetary policy. As of 0024 GMT, the S&P/ASX 200 was down by 0.5% to 8,854.20. The benchmark index ended Tuesday 0.3% lower. If the current momentum continues, the benchmark index is on course to record its fourth consecutive day of losses. The benchmark index has fallen 1.3% this month as traders lock in profits after its strongest August performance since 2009 The economic data for Australia's second quarter GDP is due to be released later today. Investors will be watching this data because they are "wary" of the weak growth in the future and that there may need to be more aggressive RBA reductions. Kyle Rodda is a senior financial analyst at Capital.Com. The market swaps currently price over 80% of the probability that RBA will keep rates unchanged later this month. On the stock exchange, financials that are sensitive to rates fell by nearly 1% and reached their lowest level since 20 August. The "Big Four' lenders lost between 0.6% to 1.4%. In tandem with their American counterparts, Australian technology stocks fell as much as 2 percent, reaching their lowest level since mid-July. Xero, a New Zealand-based accounting program giant, fell by more than 3%. WiseTech Global dropped by 1.4%. Santos fell 0.4%, while energy stocks lost 0.2% of their early gains. Miners bucked the trend of gloomy sentiment by advancing 0.3%, thanks to higher iron ore and Copper prices. They are now on course for their fourth session in a row of gains. BHP Group, Rio Tinto and other global miners each gained 0.3%. As of 0024 GMT, the benchmark S&P/NZX 50 Index in New Zealand was largely unchanged at 13,143.22.
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US sanctions on oil prices have not affected the price of crude oil
In Asian trading, oil prices were unchanged on Wednesday as they held onto gains made in the previous session due to sanctions. The market was looking ahead to the OPEC+ summit over the weekend. Brent crude fell 1 cent or 0.01% to $69.13 per barrel at 0032 GMT. U.S. West Texas Intermediate Crude rose by 4 cents, or 0.06%, to $65.63 per barrel. Oil settled higher than 1% the previous trading day after the U.S. imposed sanctions on a group of shipping companies and vessels headed by an Iraqi/Kittitian businessman accused of smuggling Iranian crude oil under the guise Iraqi oil. A preliminary poll on Tuesday showed that the U.S. crude stockpiles, as well as distillate and gasoline stocks, were also expected to have decreased last week. Three analysts polled ahead of the weekly inventory data, estimated that crude inventories had fallen by an average of 3.4 million barrels during the week ending August 29. Prices were held in check by soft economic data. U.S. Manufacturing contracted for the sixth consecutive month, as President Donald Trump’s tariffs hit economic activity and business confidence. This weighed on demand for oil. Market participants were waiting for the outcome of the meeting of eight countries of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, which took place on September 7. Analysts believe that the group will not make any further changes in production until later. Beijing will also hold its biggest-ever military display on Wednesday morning to mark 80 years of Japan's defeat in World War Two. Xi Jinping, the Chinese leader, will be at the forefront, flanked by Vladimir Putin, Russia's president, and Kim Jong Un, North Korea's leader. The event comes after the Shanghai Cooperation Organisation Summit from August 31-September 1, where China presented its vision of a new international security and economic order as a direct challenge against the U.S. Analysts believe that this could lead Trump to respond with secondary sanctions. (Reporting and Editing by Shri Navaratnam.)
Chile's Copec beats third-quarter expectations on forestry arm
Chilean commercial corporation Empresas Copec published a betterthanexpected thirdquarter net earnings on Thursday, backed by more powerful outcomes from its forestry arm.
Copec's net profit landed at $404.3 million, above the $ 346.59 million predicted by experts surveyed by LSEG and reversing a net loss of $30.96 million in the exact same period last year.
Incomes stood at $7.12 billion for the quarter, also beating the LSEG quote of $6.95 billion and somewhat above the $7.09 billion reported in 2015.
Copec's forestry arm Arauco benefited as pulp volumes rose 21% and rates rose 13%.
Production likewise rose from a year-ago quarter that was struck by an arranged shutdown, Copec stated in its earnings report, noting the Valdivia plant was halted from April to August last year.
Arauco accounts for the bulk of Copec's profits, though the company also runs a large fuel-distribution business, holds stakes in mining and runs a fleet of fishing ships and factories.
Copec's core profits, or profits before interest, taxes, depreciation, and amortization
(source: Reuters)