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Iron ore prices steady after four-day drop amid concerns about oversupply
Dalian iron ore prices held steady after a four-day decline, but lingering fears about an oversupply weighed on the market sentiment. As of 0318 GMT, the most-traded contract for January iron ore on China's Dalian Commodity Exchange was trading 0.39% higher. It was 775.5 Yuan ($108.87). The benchmark December Iron Ore at the Singapore Exchange fell 0.16% to $103.35 per ton. Atilla WIDNEL, Navigate Commodities' managing director in Singapore, says that the rally and optimism following the Fourth Plenum are now diminishing. The markets have few concrete details about "anti-involutionary" measures or long term steel capacity reforms. The anti-involution campaign is a Chinese initiative to curb overcapacity, and unsustainable low prices in many industries. Mills have not been motivated to permanently close down their plants. This has led to concerns about the possibility of an oversupply for now. Atilla said that the relatively high output of steel during a period of low demand has a negative impact on steel prices, margins and input costs, such as iron ore. Analysts at ANZ believe that the environmental production-cutting warning for Hebei Province is likely to have an impact on blast furnace operations. Galaxy Futures, a Chinese broker, says that global iron ore supplies remained high in the third quarter and are expected to remain at similar levels for the fourth. SteelHome data shows that the total iron ore stocks across Chinese ports increased by 1.53% in a week to 135.6 million tonnes as of October 31. Coking coal and coke both gained 2.1% and 1.78 % respectively. The benchmarks for steel on the Shanghai Futures Exchange are mixed. Hot-rolled coil and rebar both rose by 0.3%. Wire rod and stainless steel fell by 0.16%. ($1 = 7.1230 Chinese yuan). (Reporting and editing by Mrigank Dahniwala.)
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Shanghai copper prices rise after a four-day drop as the selling pressure eases
Shanghai copper prices rose on Thursday, after they had hit a low of more than a week in the previous session. However, weak Chinese demand limited gains. As of 0802 GMT, the most active copper contract traded on the Shanghai Futures Exchange rose 0.97%, trading at 86260 yuan (12,110.07 USD) per metric tonne. The benchmark three-month futures on the London Metal Exchange were also up 0.57%, to $10 758.50 per ton. Analysts at Sucden Financial wrote in a report that copper's consolidation was more likely to be the result of "unwinding overextended positions than a change in fundamental narrative". Analysts see a possible deficit in 2026. This is still a major factor in the price of red metal. After a four-day drop, the selling pressure on the Shanghai contract has eased. The metal had reached a new historic high of 89.270 yuan per ton. The London benchmark also gained after a four day loss, after it reached a record high last week of $11,200 on tight global supplies. The traders are now awaiting further economic data, especially from China. There was disappointment in the manufacturing PMI for October. The trade readings will be released on Friday, and the lending data will be released next week. Other base metals in the SHFE rose by 0.73%. Tin gained 0.57%. Lead lost 0.57%. Nickel shed 0.34%. Zinc was not changed. Thursday, November 6 DATA/EVENTS (GMT) 0700 Germany Industrial Output MM Sep 0700 Germany Industrial Production YY SA Sep 0930 UK S&P GLOBAL PMI: MSC COMPOSITE - OUTPUT Oct 1200 UK BOE Bank Rate Nov ($1 = 7.1230 Chinese yuan renminbi) (Reporting by Dylan Duan and Lewis Jackson; Editing by Harikrishnan Nair). Thursday, November 6, DATA/EVENTS 0700 Germany Output MM Sept 0700 Germany Production YY SA September 0930 UK S&P Global PMI: MSC Composite - OUTPUT 1030 UK BOE Bank rate Nov (1200 UK BOE Rate Nov) ($1 = 7.1230 Chinese Yuan Renminbi). (Reporting and editing by Dylan Duan; Harikrishnan Nair.
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Axia Energia, Brazil's largest energy company, reports a Q3 loss on the sale of Eletronuclear and announces dividends
Axia Energia, a Brazilian power company, announced a loss for the third quarter of the year after accounting non-cash expenses incurred from the sale of its Eletronuclear shares. It also announced the payment dividends to its shareholders. Why it's important The results show Axia's ongoing reorganization as it leaves the nuclear sector and streamlines its operations while maintaining shareholder returns, despite the accounting losses. The company's dividend decision was based on a strong performance and stable power prices. KEY NUMBERS Axia's Board approved 4.3 billion Reais ($795.72 Million) in dividends, despite Axia reporting a loss of 5.45 Billion Reais for the period July-September. The net profit was 2.2 billion reais adjusted, which is a decline of 68% from the previous year. The company recorded a non-cash charge of 7.0 billion reais from the sale of Eletronuclear to the J&F Group. The adjusted earnings before interest taxes, depreciation, and amortization (EBITDA), which is the company's measure of profit, fell by 50.8% compared to a year ago, reaching 5.9 billion reais. CONTEXT Axia, formerly Eletrobras sold its stake in Eletronuclear last month to Ambar Energia. The company is controlled by JBS, which is the largest meatpacker in the world. It was for 535 millions reais. ($1 = 5,4039 reais). (Reporting and writing by Leticia Fucichima, Editing by Brendan O'Boyle).
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Brazil announces plan to increase climate finance up to $1.3 trillion per year
After a full year of discussions, COP30 hosts Brazil laid out a plan on Wednesday to increase climate finance from $1.3 trillion a years to $1.3 trillion a day. They also faced early signs that the political landscape was becoming more challenging as the Amazonian City of Belem prepared to host world leaders. The document, which is almost 100 pages long, has been dubbed Baku to Belem Roadmap. It was created after months of discussions with various stakeholders following the conclusion of the event held in Azerbaijan last year. As emissions continue to increase, some of the world's poorest nations are at greater risk from extreme weather events. The European Union has agreed to a last-minute deal that will reduce emissions by 90 percent by 2040, but only if it is weakened by the inclusion of flexibility. Jeroen Gérard, director of Climate Group's European office said that the EU made a dangerous choice today. It's a dismayed signal of leadership going into the COP30 conference next week. The site for the talks is still under construction. However, the area reserved for the speeches of the leaders was nearly ready. Construction crews were making final repairs and placing plants and furniture. The British government has also put Brazil to the test by refusing to commit any money to the Tropical Forests Facility, a plan that would protect the world's forests. This is seen as the host country's flagship goal, which aims to raise over $125 billion. Sources said that the decision was disappointing to Brazilian President Luiz inacio Lula da So, especially since Britain helped to create it, and Lula personally wrote to Keir starmer, Prime Minister, last Friday, to ask for an investment. According to anonymous sources, Lula also met separately with Ursula von der Leyen (President of the European Commission), Alexander Stubb (President of Finland), and Ding Xuexiang (Vice Premier of the State Council of China) to solicit contributions. A Global Blueprint for Cooperation The authors of the Roadmap, who are slashing global development aid, called it "a blueprint for cooperation and concrete results". Mukhtar Babaev, President of COP29 who oversaw the Roadmap at a recent press conference, warned that it is important to recognize the magnitude of the problem. "We try to interfere in the normal functioning world economy. We are attempting direct forces of global finance. This is a huge task. "Success requires great political will." We will all need to be relentless in our efforts. "Countries cannot reduce emissions or adapt to the rising temperatures without capital", he said. The report suggests that multilateral banks could help reduce the debt burden for developing countries by taking on more risk and giving more grants. The resources are there, the science is solid, and the moral imperative cannot be denied. The report stated that the only thing left is to resolve to act. "We must turn the unimaginable to the inevitable and make this decade's accelerated implementation one where humanity's response matches its responsibility." Rob Moore, Associate Director, Public Banks & Development, at the think tank E3G said that the document "lays the gauntlet down" and clearly outlined what was required. For it to be effective, we need to see wealthy countries and international institutions of finance respond and take responsibility for the delivery. We must leave COP30 having a plan to turn these words into action. (Reporting and editing by Aurora Ellis; Lisandra Paraguassu, Simon Jessop)
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Ameren raises annual forecast as data centers drive power demand
Ameren Corp, an utility company, beat Wall Street expectations for its third-quarter profits on Wednesday. It also raised its profit forecasts for the year citing increased rates and strong demand. U.S. utilities are seeking higher rates due to the extreme weather conditions and the growing demand for data centers. According to a study backed by the Department of Energy, the power demand for data centers is expected to triple within the next three to four years. This could consume up to 12% of all electricity in the U.S. Ameren expects a 2025 adjusted profit between $4.90 and $5.10 per common share. This is up from the previous expectation of $4.85 - $5.05. According to LSEG data, the company forecasts a profit between $5.25 and $5.45 for 2026, which is higher than estimates of $5.33. Ameren Missouri, Ameren Illinois and their rate-regulated utilities serve 2.4 million customers for electric and over 900,000. Electric sales at Ameren Missouri's unit increased 3.5% during the third quarter to 9,563 Kilowatthours. Total electric sales in Illinois grew 1.3%. The revenue for its gas segment, however, fell by 1.4%, to $136 millions, from $138.8 million the year before. The St. Louis-based company exceeded analysts' expectations by $2.17 per shares. (Reporting by Dharna Bafna in Bengaluru; Editing by Tasim Zahid)
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Stocks rise after positive economic and earnings data; Treasury yields increase
The major stock indexes rose on Wednesday, as U.S. payrolls and corporate earnings were better than expected. Treasury yields also increased following the economic data of the day. According to a survey of economists, the private payrolls in the United States increased by 42,000 positions in October. This was more than double what most economists expected, which was a gain of 28,000 jobs. Some industries, such as professional services, have lost jobs for the third consecutive month. In addition to the payroll numbers for private employers, data revealed that U.S. service sector activity increased in October due to a strong increase in new orders. The longest government shutdown in U.S. history is the result of a congressional impasse. Investors and the Federal Reserve, who rely heavily on data, are now forced to rely solely on indicators from the private sector. After a sharp drop on Tuesday, an index of semiconductors rose 3%. Advanced Micro Devices shares ended the day 2.5% higher following a positive revenue forecast given by the company on Tuesday. Amgen, a drugmaker, reported earnings that exceeded estimates. Its shares rose 7.8%. Peter Cardillo is the chief market economist of Spartan Capital Securities, based in New York. The ADP National Employment Report suggested that the fears about the job market might have been overstated if the numbers were to match the official figures. Investors also paid close attention to the Supreme Court of the United States raising doubts about the legality and sweeping tariffs imposed by President Donald Trump in a case that has implications for the global economic system. The Dow Jones Industrial Average rose by 225.76, or 0.48% to 47,311.00. The S&P 500 gained 24.74, or 0.37% to 6,796.29. And the Nasdaq Composite grew 151.16, or 0.65% to 23,499.80. According to LSEG, analysts now expect S&P 500 earnings to grow 16.2% on an annual basis for the period July-September, which is more than twice the growth expected at the beginning. The MSCI index of global stocks rose by 1.07 points or 0.11% to 997.89. The STOXX 600 Index rose by 0.23%. This year, the stock market has been swept by a wave of enthusiasm for generative artificial Intelligence. It is compared to the dotcom boom. The yields on U.S. Treasury bonds rose following the unexpected data that showed economic resilience. Treasury Department said Wednesday that it expects to maintain its nominal coupon and floating rate note auction size for the next few quarters but is beginning to look at future increases. Benchmark 10-year yields increased by almost seven basis points, to 4.159%. The dollar's value against the major currencies was not much different. Since last week, when the Fed reduced interest rates by 25 basis point and Fed Chair Jerome Powell stated that a December rate cut was not predetermined, the dollar has strengthened against euro. The dollar index fell by 0.01%, to 100.16, measuring the greenback in relation to a basket of currencies, including the yen, the euro and others. The pound was essentially flat against the dollar on the day. Market pricing indicates that the Bank of England will meet on Thursday. With a one-in-3 chance of a rate cut of 25 basis points, any decision the BoE makes could trigger a reaction in the pound. After recovering from its earlier losses, the leading cryptocurrency Bitcoin rose 3% to approximately $103,144. It fell 6.1% Tuesday, to fall below $99,000 for first time since June 22, for the first. The oil prices dropped as concerns about global oversupply trumped data that showed a strong demand for fuel in the United States. U.S. crude oil fell 96 cents, settling at $59.60 per barrel. Brent crude dropped 92 cents, settling at $63.52.
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Rubio and Hegseth inform lawmakers about boat strikes following congressional frustration
Members of the Senate, and the House of Representatives were briefed by top Trump administration officials on Wednesday regarding strikes on suspected drug-trafficking boats near Venezuela. This came after Congress expressed frustration over a lack of transparency in the operation. Secretary of State Marco Rubio, and Secretary of Defense Pete Hegseth spoke for an hour with Republican and Democratic leaders of the House and Senate and members of senior national security committees. They discussed U.S. attacks on vessels in Caribbean and Pacific waters that have resulted in the deaths of dozens of people. The Trump administration has insisted that the boats targeted for attack were carrying drugs without providing any evidence or explaining publicly the legal justification of the decision. The administration officials told several senators and members of the House who attended the briefing that the boats carried cocaine and not fentanyl and provided their legal justification. Legal experts claim that the strikes could violate international law, as well as U.S. laws prohibiting murder and assassination. Trump's Republican colleagues said that they were satisfied with the briefing. House Speaker Mike Johnson called the intelligence on the vessels "exquisite" but said that the U.S. was aware of who was aboard the boats "almost down to the person". Johnson, when asked to clarify, said: "What I have learned from what I have read so far, I am confident that we are highly reliable. Here are the cartels. Here are the cartels. This is deliberate. They are not just randomly on a boat. "They are trying to bring in illegal immigrants, which is a great danger to the American people." Tensions with CARACAS The strikes between Washington and Caracas have heightened tensions, especially since Trump has ordered a major build-up of military forces in the area and stated that his administration would carry out attacks against drug-related targets within Venezuela. The president of Colombia, a longtime U.S. ally, is in a dispute with Trump about the attacks, which have claimed Colombian lives. Trump has imposed sanctions against him. Mark Warner, top Senate Intelligence Democrat, stated that the failure of the administration to explain publicly its actions including the legal justification had damaged the trust of the U.S. Public and Latin American partners. Warner stated that "Kinetic Strikes without Interdicting and Demonstrating to the American Public that these are full of drugs and bad guys is I think a huge error that undermines the confidence in the Administration's actions." Warner last week attacked the administration for holding an informational briefing about the strikes without including Democrats. In a rare show of bipartisan frustration, lawmakers from both parties criticized the Pentagon on Tuesday for failing to brief them on national security matters and claiming that top defense officials sometimes appeared to undermine Trump's policies. Elbridge Colby, the Pentagon's top policy official whom Trump renamed as the Department of War on Wednesday, denied that he was not fully advising Congress on national security matters. This suggests a growing rift between the Pentagon and senators of both parties. (Reporting and editing by Patricia Zengerle, Bo Erickson)
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Talen Energy announces a rise in its third-quarter profits on the strength of power demand
The utility firm Talen Energy announced a higher third-quarter profit Wednesday, as strong U.S. demand for power helped offset increased energy purchase costs. However, adjusted core profit fell short of Wall Street expectations. U.S. Energy Information Administration estimates that the U.S. will see a record increase in electricity demand in this year and 2026. This is due to data centers' large energy requirements and rising domestic consumption. The U.S. Energy secretary Chris Wright announced last month that he would allow a part of Talen’s oil-fired Wagner plant in Maryland to operate above its limits until the end of 2025. He said this would improve the grid's reliability. The company has announced a $3.5 billion deal to purchase two gas-fired power plants in order to meet its growing energy needs. This follows its expansion of its nuclear energy partnership, which includes Amazon, to supply electricity from the Susquehanna Plant. Utility firm's operating revenues were $812 million for the third quarter. This is up 25% compared to a year ago. LSEG data shows that the Houston-based company's adjusted core profit for the third quarter was $363 million. This is below the Wall Street estimate of $386 millions, and lower than the $386 million Wall Street expected. Higher energy costs were the main reason. Fuel and energy costs for the utility company were $259 millions in the third quarter. This was up 17% compared to a year ago. The company reported a net profit attributable stockholders of $207 million, or $4.25 a share. This compares to $168 million or $3.16 a share compared to 365 million or $3.16. (Reporting from Tanay Dhumal, Bengaluru. Editing by Tasim Zaid)
Oil prices fall as low demand and oil glut weigh on the market
The oil prices were mostly flat on Thursday morning, after having settled at two-week lows the previous session. This was due to the pressure of a weaker global demand and an oversupply of crude oil.
Brent crude futures rose 2 cents or 0.03% to $63.54 a bar at 0127 GMT. U.S. West Texas intermediate futures were unchanged at $59.60.
J.P. Morgan said that the global oil demand had increased by 850,000 barrels a day through November 4. This is below the 900,000 barrels a day growth projected earlier.
The note stated that "high-frequency indicators indicate that U.S. petroleum consumption remains subdued," pointing out weak travel activity as well as lower container shipments.
Oil prices dropped in the previous session after the U.S. Energy Information Administration reported that U.S. crude stockpiles rose by 5.2m barrels, to 421.2m barrels, last week. This was compared to expectations of a 603,000 barrel rise.
Capital Economics wrote in a report that they believe the downward pressure on oil will continue, confirming their forecast below consensus of $60 per barrel by the end of 25 and $50 per barrel by the end 26.
The global oil price fell for a third consecutive month in October, as OPEC and its allies continued to increase production while non-OPEC producers also increased their output. (Reporting from Tokyo by Katya Glubkova; editing by Tom Hogue).
(source: Reuters)