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Copper drops for a third day amid fears of tech valuation
Copper fell for the third consecutive session on Tuesday. It hit its lowest level in almost two months, as industrial metals slid along with a wide sell-off of risky investments sparked off by fears about an overvalued technology sector and faded hopes of a U.S. interest rate cut. As of 1026 GMT, the benchmark three-month copper price on the London Metal Exchange had fallen 0.7% to $10,702.50 a metric tonne. The metal, which is used for construction and power, and was expected to be a beneficiary of the AI boom, fell by as much as 1.1% earlier to $10,660.50. Its lowest price since November 5. Copper has fallen by around 4.5% since the peak of 11,200 dollars it reached on October 29. One trader, however, attributed the recent drop in copper to a "correction", rather than to an AI bubble burst. He added that "the AI trend will continue". LME Copper Stocks The highest level since October 1 was reached by an increase of 4,450 tons. Cash LME contracts were trading at a discount of $36.50 per ton to the forward three-month contract There is no shortage of metal in the near future. The government shutdown delayed the release of September U.S. jobs data. Investors are more sensitive to the labour market signals, as they re-evaluate the Federal Reserve's near-term course. Aluminium, another LME metal, fell by 0.8%, to $2,792.50 per ton. It also lost ground for the third consecutive day, and reached its lowest level since October 21. Tin fell 0.4% to $35,665, and lead was unchanged at $2 037.50. Zinc fell 0.6% to 2,977 dollars, its lowest level since October 20. Nickel dropped 0.3% to $14,595 after reaching a new seven-month low. LME nickel stocks The 257,832 tonnes are the highest since May 20,21. (Reporting and editing by Subhranshu Sahu, Shreyan Biswas and Subhranshu Sahu; Additional reporting by Dylan Duan & Lewis Jackson)
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German Finance Minister in China: EU will protect its markets if necessary
German Finance Minister Lars Klingbeil spoke about overcapacity on China during his Tuesday visit to Beijing. He also stressed that if no solution is found, the European Union will act. Klingbeil stated: "I made it very clear that, in the event of a need, decisions would be taken at the European level, to better protect our market." "I would like to avoid this, but at the end of the day, Europeans - and we Germans - must not be left behind." Klingbeil's second day in China saw him attend the Party Dialogue, where he discussed the war in Ukraine, German-Chinese co-operation in multilateral organisations, and overcapacity. Klingbeil, when asked about EU divisions regarding relations with China said that coordination among European countries was crucial, and he had coordinated with his colleagues before his trip. Klingbeil stated that it was important for Europe to not present different voices or positions in China, as we share a lot in common. The relationship between these two industrial giants has been strained in recent years, mainly due to Chinese export restrictions on rare earths and chips that have led to major disruptions for German companies. He said that Germany should diversify its supply chain to prevent disruptions in the sourcing for rare earth minerals. However, the Chinese side had given him clear assurances regarding reliable access. Monday Klingbeil said, "I want to emphasize that we need to do our homework here in Germany." Reporting by Maria Martinez Editing Madeline Chambers
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Palm oil gains more than 1% due to stronger Chicago soyoil
The price of palm oil in Malaysia rose by more than 1% Tuesday, marking the fourth consecutive session that prices have risen. This was largely due to the higher Chicago soyoil after China bought American soybeans. The benchmark contract for palm oil delivery in January on the Bursa Derivatives exchange ended 59 ringgit or 1.42% higher, at $4210 ringgit (1,012.02) per metric ton. David Ng, a proprietary trading at Kuala Lumpur's Iceberg X Sdn. Bhd., explained that the contract tracked gains on the Chicago soyoil markets today. Two traders who were familiar with the transactions said that China purchased at least 14 cargoes (cartons) of U.S. soya beans on Monday. This was its largest purchase at least since January, and the biggest since the October summit between President Donald Trump, and President Xi Jinping. Dalian's palm oil contract rose 0.39%, while the most active soyoil contract in Dalian increased by 0.6%. Chicago Board of Trade soyoil prices were up by 1.37%. As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils. The ringgit (palm's trade currency) has weakened by 0.29% in relation to the dollar. This makes the commodity more affordable for buyers who hold foreign currencies. According to a circular posted on the Malaysian Palm Oil Board's website, Malaysia has reduced its crude palm oil price reference for December at a level which maintains the 10% export duty.
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Gold falls to a one-week low after traders reduce US rate cuts bets
The price of gold fell to its lowest level in over a week Tuesday, as faded bets that the Federal Reserve would cut interest rates next month weakened demand before delayed U.S. Economic Data releases this week. As of 1027 GMT spot gold was down by 0.1%, at $4,041.54 an ounce. It had hit its lowest level since November 10, earlier in the session. U.S. Gold Futures for December Delivery fell by 0.8% to $4.040.30 an ounce. Market participants are pricing in interest rate reductions for the United States following hawkish remarks from Fed officials, said UBS analyst Giovanni Staunovo. Gold prices are expected to drop soon as the Fed is still cutting rates multiple times in the next quarters and central banks continue to diversify into gold. The CME FedWatch tool revealed that the markets have reduced their bets on a rate reduction next month from 67% to just under 46%. Last week's end of the longest U.S. shutdown resulted in a stoppage of official economic data. This left policymakers and traders blind before next month’s Fed policy meeting. The traders had hoped that the return of official data could make a case for a rate cut in December, but these hopes have faded since more Fed officials signaled caution last week. Fed Vice Chairman Philip Jefferson said that on Monday, the central bank must "proceed gradually" with further rate reductions. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Investors are likely to be watching for more clues in the release of the minutes from Wednesday's Fed meeting, as well as September's non-farm payrolls on Thursday. "We continue to see a long-term positive fundamental backdrop for the gold market." "The U.S. economic climate continues to cool. U.S. rates will fall, and the U.S. currency should weaken in response," said Julius Baer's Carsten Menke. Palladium rose 0.6%, to $1400.69, while platinum was up 0.3%, at $1,537.55. (Reporting and editing by Alexander Smith, Emelia Sithole Matarise, and Noel John from Bengaluru)
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The Kremlin has said that Russia will not take part in the Ukraine talks taking place in Turkey this coming week
The Kremlin announced on Tuesday that Russian representatives would not be taking part in the talks about Ukraine to be held in Turkey on 19 November. The Ukrainian president Volodymyr Zelenskiy announced earlier that he will travel to Turkey on Tuesday to try to restart negotiations with Russia to end the war. According to a Turkish source, Steve Witkoff, the U.S. Special Envoy for Syria and Iraq, will be attending these planned talks. Dmitry Peskov, Kremlin spokesperson, told reporters that "no, tomorrow there won't be any Russian representatives in Turkey." These contacts are currently taking place without Russian involvement. Peskov stated that Vladimir Putin is open to a conversation with the U.S. or Turkey about the outcome of the talks. A source close to Dmitriev said on Tuesday that Putin's special representative Kirill Dmitriev would not attend the Istanbul meetings either. The source said that "Dmitriev had a very productive conversation with U.S. Special Envoy Steve Witkoff from October 24 to 26 in the United States." Since 2022, the principal venue for peace talks has been Turkey, a NATO-member state that maintains good relations with both Russia, and Ukraine. The diplomatic process has been largely stagnant in recent weeks. Last month, U.S. president Donald Trump sanctioned Russian oil giants Lukoil & Rosneft to punish what he said was Moscow's obstruction of talks. Reporting by Felix Light, Editing by Mark Trevelyan and Gleb Brynski
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EU to restrict exports of aluminum scrap
Maros Séfcovic, EU Trade chief, said that the European Commission intends to limit EU exports for scrap aluminum to prevent the metal from flooding the EU and leaving the industry without an input needed to decarbonise. According to the industry group European Aluminium, EU exports of scrap aluminium will reach a record 1,26 million metric tonnes in 2024. This is an increase of about 50% compared to five years ago. The majority of these exports are headed for Asia. The EU industry claims that the situation has gotten worse since President Donald Trump imposed import tariffs on aluminium of 50% but only 15% for scrap. The levies increased scrap imports to the United States, and decreased exports. This pushed Asian buyers to concentrate more on EU supplies. The EU executive started monitoring exports in early July and stated that it would determine if any action is necessary. "Today... we launch the preparatory works on a new initiative to address the problem of aluminium scrap leaked," European Trade Commissar Sefcovic said at a conference in Brussels hosted by European Aluminium. He added that the measure would be "balanced" and take into consideration the interests of downstream sectors, producers, and recyclers. Scrap is not only a valuable resource for local producers but also plays a crucial role in decarbonising the sector, as recycling aluminium requires 95% less energy to produce metal than mining bauxite. The recycling industry group EuRIC opposes the restrictions and says that scrap exports result from low domestic demand, as well as insufficient EU capacity for mixed scrap such shredded vehicle scrap. (Reporting and editing by Charlotte Van Campenhout, Clarence Fernandez, and Philip Blenkinsop)
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TotalEnergies accused of war crimes in Mozambique by a rights group
TotalEnergies was accused by a European human rights organization of complicity with war crimes, torture, and enforced disappearances in Mozambique. The complaint was filed to the French prosecutor's office on Tuesday. Four years after an Islamist militant attack that halted construction, the French oil giant, together with its project partners lifted force majeure for their $20 billion Mozambique gas project. The complaint seeks a link between Total and alleged mozambican torture on its evacuated site of the gas project from July to September 2020, after the oil firm exfiltrated their employees and gave the land to government on the basis that TotalEnergies paid soldiers' salaries in a security agreement with the state. TotalEnergies didn't immediately respond to email or telephone requests for comments. It claimed last year that it was unaware of any allegations of torture at the evacuated site and that employees had left in April 2021. They did not return to their jobs until November 2021. In a statement, the European Center for Constitutional and Human Rights, which filed the criminal complaint said that companies and their executives were not neutral actors in conflict zones. If they enabled or fuelled crimes, then they could be complicit and held accountable, the ECCHR stated. The French prosecutor for anti-terrorism (PNAT) investigated both domestic and international crimes. The PNAT did not respond to a request for comment. Since then, the Mozambican Government has opened an investigation. TotalEnergies, meanwhile, is still being investigated by French prosecutors over alleged failures to help people in danger when the 2021 islamist attack occurred and they evacuated. Total has not yet filed any charges and Total denies wrongdoing. The oil giant is planning to restart Mozambican Liquefied Natural Gas in "containment" mode, with only security-related workers being allowed to enter the site by air or water. It expects that project to be operational in 2029. (Reporting and editing by Alessandro Parodi)
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Gold falls to a one-week low after traders reduce US rate cuts bets
The price of gold fell to its lowest level in over a week Tuesday, as faded bets that the Federal Reserve would cut interest rates next month weakened demand before delayed U.S. Economic Data releases this week. As of 0909 GMT spot gold was down 0.3%, at $4,033.29 an ounce. It had earlier hit its lowest level since November 10. U.S. Gold Futures for December Delivery fell 1% to $ 4,032.60 an ounce. Market participants are pricing in interest rate reductions for the United States following more hawkish remarks from Fed officials, said UBS analyst Giovanni Staunovo. Gold prices are expected to drop soon as the Fed is still cutting rates in the next quarters and central banks' diversification into gold continues to be strong. The CME FedWatch tool revealed that the markets have reduced their bets on a rate reduction next month from 67% to just over 46%. Last week's end of the longest U.S. shutdown resulted in a stoppage of official economic data. This left policymakers and traders blind before next month’s Fed policy meeting. The traders had hoped that the return of official data could make the case for an interest rate cut in December, but their hopes have faded since more Fed officials signaled caution last week. Fed Vice Chairman Philip Jefferson said that on Monday, the central bank must "proceed gradually" with further rate reductions. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. The markets will be waiting for delayed U.S. economic data this week. Minutes from the Fed’s last meeting are due on Wednesday, and nonfarm payrolls for September on Thursday. "We continue to see a long-term positive fundamental backdrop for the gold market." "The U.S. economic climate continues to cool. U.S. rates will fall, and the U.S. currency should weaken in response," said Julius Baer's Carsten Menke. Other than that, silver spot was unchanged at $50.2 an ounce. Platinum was up 0.1% to $1,534.29 and palladium was stable at $1393.57. (Reporting and editing by Alexander Smith in Bengaluru, Noel John)
Philippines braces for hurricane Man-yi as Usagi deteriorates
Hurricane Usagi damaged sharply on Friday after bearing down on the Philippines' northern towns, blowing away homes in its course as authorities brace for another storm that might hit the capital Manila over the weekend.
Usagi, known locally as Ofel, magnified into an extremely tropical cyclone as it made landfall in the town of Baggao in Cagayan province on Thursday afternoon.
Philippine meteorological firm Pag-asa stated that Usagi has because weakened and is now headed towards Taiwan.
Usagi is the 15th cyclone to hit the Philippines this year. Authorities are currently bracing for another typhoon, Man-yi, which might strike eastern towns and the capital area over the weekend as it continues to intensify in the western Pacific.
Man-yi could become a supertyphoon on early Sunday, Pag-asa said.
No casualties have actually yet been reported from Usagi, even as countless households living in vulnerable communities fled ahead of its arrival.
Rueli Rapsing, head of the Cagayan disaster relief office, said town authorities are still penetrating the extent of the damage from the storm.
There were more homes that were partly or totally blown after Marce (Tropical Storm Yinxing). Presently, we're moving around evaluating the damage, Rapsing said on Friday.
Preemptive evacuations of vulnerable residents in Hurricane Man-yi's course will start on Friday.
Pag-asa stated Man-yi's center was last estimated around 795km ( 494 miles) east of the central town of Guian in Eastern Samar province, and alerted of a storm surge of up to 3 metres (10. feet) in seaside towns of the central provinces.
The Philippines is dealing with its sixth storm in a month,. primarily striking the main island of Luzon.
Tropical Storm Trami and Typhoon Kong-rey brought heavy. flooding and triggered landslides, killing 162 people with 22. still missing out on, according to federal government information.
Four storms churned in the western Pacific ocean at the exact same. time this month, the first time it has taken place given that records. began in 1951, the Japan Meteorological Company said.
About 20 hurricanes strike the Philippines each year on. average, bringing heavy rains, strong winds and deadly. landslides.
(source: Reuters)