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The dollar is under pressure as copper prices rise due to supply problems
The copper price rose on Tuesday due to concerns about supply from the top producers Chile and Indonesia. However, a stronger U.S. Dollar kept gains in check. The London Metal Exchange reported that the price of three-month copper rose by 0.3%, to $10.679.50 per ton at 0717 GMT. The metal reached its highest level since May 2024 on Monday before easing. Freeport Miner said that five workers who had been missing following a mudflow disaster at the Grasberg Copper and Gold Mine in Indonesia, last month, have now been found dead. Fawad Rasaqzada is a market analyst for City Index and FOREX.com. He said that the tragic incident, coupled with tightness in other major copper producing sites, had pushed prices down. The traders are confident that the near-term supply constraint could offset this. Grasberg, the second largest copper mine in the world, accounts for 3% global concentrate production. Supply concerns will likely persist in this year, given the operational suspensions at Grasberg and disruptions at Kamoa Kakula mine in the Democratic Republic of Congo, as well as El Teniente in Chile. Analysts have estimated that disruptions in the copper industry could lead to a loss of 591,00 tons of output between September 2025 through 2026. This has led Goldman Sachs Citi and Bank of America, among others, to increase their price predictions. Indonesia's Mining Ministry issued a new regulation on Tuesday that reduces the validity period of mining production quotas from three to one year. The move is intended to give the government greater control over the output levels, and to support commodity prices. After an accident on July 31, the copper production in Chile fell by 9.9% compared to last year. The dollar index continued to gain against its competitors, despite the gains being capped. A stronger dollar makes greenback-denominated assets more expensive for holders of other currencies. Other London metals include aluminium, which fell by 0.4% to $2.714 per ton. Nickel was down 0.2% at $15,450. Lead remained flat at $2.004.5. Tin lost 0.3%, to $36,615. Zinc dropped 0.2%, to $3,001.50. Golden Week, which runs from 1-8 October, is a time when Chinese markets will be closed. Click here to see the latest news in metals, and other topics. (Reporting and editing by Sumana Naandy and Subhranshu Shu in Bengaluru).
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Schools in boats are keeping learning afloat on the floodplains of Bangladesh
Solar-powered "floating school" in flood-prone areas of Bangladesh ensures children don't miss class when rising water cuts off roads and villages. Safikul, a 10-year-old boy, is one of the victims. He waits each morning on the edge his flooded village of Bhangura in western Bangladesh for the solar powered classroom that sails straight to his door. His home is located in Chalan Beel, an expansive 26 square kilometres (10 sq miles) of wetland. Seasonal floods can often submerge villages and cut off roads. Education floats for Islam, and hundreds of children. The initiative was launched by architect Mohammed Rezwan in 2002 using $500 from his scholarship fund. It has now grown to a national model operated by the non profit Shidhulai Swanirvar Sangstha. More than 100 boats now serve as libraries, schools, and clinics. This project has educated more than 22,000 students, and it won a UNESCO Confucius Prize for Literacy for its work this year. Around two dozen boats are used as classrooms in Chalan Beel. They visit riverside villages on six days of the week. The school boats, made from local wood, are equipped with blackboards, bookshelves, and benches. Solar panels provide electricity for computers and lights. Madhusudan Karmaker is a senior manager with SSS. "Right away, we have 2240 pupils enrolled into 26 boat schools," he said. "More than 22,500 students graduated to date, and these boats doubled as shelters during severe flooding." Many other NGOs are using similar models to work on the wetland areas of the country. Three shifts of three hours are held each day. Teachers use narrow waterways for collecting students and teaching Bengali, mathematics, or general knowledge. Sufia, a parent waiting by the riverbank to see her son Islam return, said: "We never got the chance to learn." "But this boat allows my children to dream of a brighter future." Sakhina Khatun, a teacher with SSS who has worked for more than a decade, says that similar floating school projects have inspired projects in other countries such as Nigeria, Cambodia and the Philippines. She said, "These schools don't close, not even in floods." "That is what makes them so special." Rezwan, the founder of the organization and a World Fellow from Yale University, stated: "I've not had much in my life, nor do these children." Giving them access to education and healthcare, as well as seeing this replicated across the globe - that's what motivates me. (Reporting from Sam Jahan in Bhangura, and Ruma in Dhaka. Editing by Neil Fullick.)
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Sumitomo Metal predicts that the global nickel market will remain in surplus by 2026
Sumitomo Metal Mining, Japan's largest nickel smelter, said Tuesday that the global nickel market will remain in surplus for a third straight year next year because of Indonesia's continuing production growth. SMM's half-year outlook for the market projected a surplus of 256,000 metric tonnes in 2026. This is slightly less than 263,000 tons this past year. The production of low grade nickel pig iron in Indonesia is expected to increase 4.1%, to 1.76 millions tons. The nickel pig iron produced in Indonesia is expected to increase by 10.3% between 2025 and 2025. SMM predicts that global nickel demand will grow by 2.4% annually to 3.52 millions tons in 2026. This is due to the steady consumption of stainless steel, and supply is expected to rise by 2.0% to 3,78 million tonnes. Shirou Imai told reporters that the forecast does not assume a significant impact of U.S. Tariffs on Demand, as this has only been a limited effect in 2018. Imai stated that the growth of demand for batteries is expected to remain modest. Nickel is used primarily in stainless steel but also in the lithium-ion battery that powers electric vehicles (EVs). However, demand growth has slowed as lithium-iron-phosphate (LFP) batteries, which are cheaper and contain no nickel or cobalt, gain market share, accounting for two-thirds of EV sales in China in 2023, according to the International Energy Agency. SMM, a supplier of cathode material for Panasonic lithium-ion battery used in Tesla electric vehicles, anticipates that the global demand for nickel for batteries will rise to 470,000 tonnes next year. This is only a 10,000 ton increase from 2025. Imai stated that "China is restricting the export of LFP technology, which will increase demand for conventional EV batteries with nickel." Yuka Obayashi reported.
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Morning bid Europe-Deepening darkness in Paris
Rae Wee gives us a look at what the European and global markets will be like tomorrow. France is once again in a deep political crisis, with five different prime ministers having been in office in just 21 months. This is not good news for investors looking to invest in Paris. The markets will probably face another day of turmoil on Tuesday following the shock resignation of Prime Minister Sebastien lecornu. This came only hours after Lecornu announced his cabinet, making this the shortest-lived French government in modern history. Lecornu has been asked by French President Emmanuel Macron to have last-ditch discussions with other political parties in order to find a way out of this crisis. However, the damage is already done. The French OAT futures fell slightly during the Asian session, after bonds plunged on Monday. Attention will be focused on the Paris CAC 40 when the markets open in the afternoon. BCA Research, a research firm, has said that French bonds are uninvestable. Rating agencies have issued new warnings regarding France's sovereign debt score. France has the highest budget deficit within the Eurozone, almost twice the European Union preferred limit of 3%. Since Macron's reelection in 2020, the nation's finances have been vulnerable and political instability has increased, due to the lack of a majority party or group in parliament. The Nikkei soared to yet another record on Tuesday in Japan. Meanwhile, the yen and Japanese government bonds (JGBs) remained weak. Investors were bracing for an increase in spending, as well as a looser monetary policy, under Sanae Taichi, who will be the next premier of the country. Takaichi has been favored by the majority of the ruling coalition, which holds the most seats in the parliament. As usual, the slide in the Japanese yen attracted the attention of the authorities. Japanese Finance Minister Katsunobu Kato stated on Tuesday that his government would be on guard for volatile currency movements. The auction of 30-year JGBs on Tuesday was closely watched and seen as a test to see if investors were ready for the expected expansion in Japan's spending and monetary policy. This eased concerns that investors would be reluctant to buy long-dated bonds due to the uncertainty of fiscal policy. JGBs recovered some of their losses after the auction, and yields fell. The following are key developments that may influence the markets on Tuesday. French Politics Bowman, Bostic and Kashkari, Fed officials, speak
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Oil extends gains on smaller-than-expected OPEC+ output hike
Oil prices extended gains on Tuesday as a smaller-than-expected November output hike by OPEC+ helped to ease some fears of a growing supply glut. Brent crude futures rose 23 cents or 0.35% to $65.70 per barrel at 0356 GMT. U.S. West Texas Intermediate Crude climbed 21 cents or 0.34% to $61.90. The previous session saw both contracts settle more than 1% above the previous one after the Organization of the Petroleum Exporting Countries, Russia and other smaller producers - also known as OPEC+ – decided to increase their collective oil production from November by 137,000 barrels a day. Analysts at ING said that this move contrasted with market expectations of a more aggressive reintroduction. It was a sign the group is still cautious about increasing their production share on the global oil markets, despite predictions of a surplus of supply in the fourth and next years. Anh Pham is a senior analyst with LSEG. She said that Brent had dropped by $5 per barrel in the previous week due to expectations for a bigger supply boost. This mild rebound therefore seems reasonable. He added, "For the moment, the market appears to be able to accommodate the additional volume and we have not yet seen a change into contango on the front curve." OPEC+ increased its oil production targets by over 2.7 million bpd in this year. This is equivalent to around 2.5% of the global demand. The geopolitical situation has kept prices in check, as the conflict between Russia and Ukraine is affecting energy assets and creating an uncertainty about Russian crude oil supply. Two industry sources reported on Monday that the Russian Kirishi oil refining plant halted CDU-6's most productive distillation after a drone attack on October 4 and a subsequent fire. The unit is expected to recover in about a month. Despite the increase in oil production by both OPEC+ members and non-OPEC+ members, oil prices are still under pressure. Analysts said that any slowdown in the demand caused by weak economic growth due to U.S. tariffs would likely exacerbate this surplus.
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Europa Oil & Gas Eyes 2026 Drilling with PSC Extension in Equatorial Guinea
Europa Oil & Gas has received a one-year extension from the Minister of Hydrocarbons and Mining Development for Equatorial Guinea for the initial two-year period of the EG-08 production sharing contract (PSC), with the plans for drilling of the Barracuda prospect set for 2026.Europa Oil & Gas holds a 42.9% equity interest in Antler Global, which has an 80% working interest in the EG-08 PSC. The remaining 20% is held by GEPetrol, the national oil and gas company of Equatorial Guinea, representing the state’s interest.Formalities to finalize the extension are ongoing and expected to be completed in the coming days. As a result, the first sub-period of Phase 1 of the PSC will now expire on October 4, 2026.The EG-08 block contains 2.196 trillion cubic feet (TCF) of gas (Pmean), with the primary prospect Barracuda estimated at 878 billion cubic feet (BCF) (Pmean).“I am pleased to have secured the Minister’s approval for this extension which will provide plenty of time to finalize the farm out process for EG-08, where we continue to make good progress. Concurrently, the technical team are working on detailed engineering plans for drilling the Barracuda prospect, which we hope to spud in 2026,” said William Holland, Chief Executive Officer of Europa.Block EG-08, located offshore in the Douala Basin of Equatorial Guinea, is held by Antler Global Ltd, a company set up to acquire the EG-08 block. The PSC became effective in October 2023, with Antler holding an 80% working interest and GEPetrol holding the remaining 20%.The EG-08 block covers 731 square kilometers and has three high-graded prospects assessed to have similar AVO characteristics to the Alen and Aseng fields and other discoveries in Chevron’s Blocks O and I to the south. The prospects are covered with 3D seismic data and lie in about 80 meters of water, with reservoir targets at around 2,800 meters, drillable with a jack-up rig.The three prospects have been defined using standard Amplitude Variation with Offset (AVO) techniques. Since 2005, nine exploration wells have been drilled in this area using AVO techniques, eight of which were discoveries. Volumes across the prospects are estimated at mean prospective resources of 2.116 TCFE (gas and condensate).
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Fed rate cuts and safe-haven demand drive gold to all-time high
Gold reached a new record on Tuesday, as there was no sign of an end to the impasse that led to the government shutdown between the two chambers of the U.S. Congress. Near-certainty bets about a Federal Reserve interest rate cut in this month also provided support. Gold spot was up 0.1% to $3,965.39 an ounce at 0308 GMT after reaching a session high of $3977.19 earlier. U.S. Gold Futures for December Delivery gained 0.3%, to $3988.10. Kelvin Wong, senior market analyst at OANDA, said: "The (chances) of October and December cuts remain above 80%. This is actually supporting the gold price and this government shutdown too given that there's still no resolution reached between the two U.S. Congress sides." Jeff Schmid, Kansas City Fed Bank president, has indicated that he does not intend to further cut interest rates. He said the Fed should focus on the dangers of high inflation and not just apparent weakness in job markets. According to CME FedWatch, markets are still pricing additional 25 basis point rate cuts for both October and December, with probabilities 95% and 83% respectively. Gold that does not yield is a good investment in low-interest rate environments and economic uncertainty. The gold price has increased by 51% this year, mainly due to central bank purchases and the demand for Exchange-Traded Funds (ETFs) backed by gold. A weaker dollar also helped. Retail investors are increasingly interested in hedging their positions amid increasing trade and geopolitical tensions. Goldman Sachs increased its December 2026 forecast for gold to $4.900 per ounce, up from $4.300, on Monday. It cited strong Western exchange traded fund (ETF), and central bank purchases. Silver spot fell by 0.1% at $48.49 an ounce. Platinum dropped 0.4% to $1.619.62, and palladium increased 0.1% to 1,325.71. (Reporting by Ishaan Arora in Bengaluru; Editing by Subhranshu Sahu and Sonia Cheema)
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China's central banks extends gold purchases for the 11th month
Official data released by the People's Bank of China on Tuesday showed that China's central banks added gold to their reserves for the 11th consecutive month. China's gold reserves increased to 74.06 millions fine troy ounces by the end September, from 74.02million ounces in August. The PBOC reported that the gold reserves of the country were valued at an estimated $283.29 Billion at the end last month. This is up from $253.84 Billion at the end August. Ross Norman, an independent analyst, said that a strong figure would confirm the notion that China is eager to dedollarize and accelerate their actions in this space. "Further purchase, even modest purchases, will be viewed domestically as positive in a price sensitive market. This may reduce the large discounts offered by Loco Shanghai. "It will give ETF investors and institutions the confidence that gold prices will continue to rise." The gold price, which is traditionally seen as a safe haven from economic and political uncertainty, has reached multiple records so far this season due to uncertainty over U.S. Tariffs, geopolitical conflict, the expectation of interest rate reductions, a weaker dollar, and central bank purchases. On Monday, gold prices rose above $3900 per ounce. The PBOC halted their 18-month gold buying spree in May 2024. The central bank began buying gold again in November 2024. The World Gold Council (WGC), in a survey, found that central banks expect their gold reserves as a percentage of their total reserves to rise over the next five year period. However, they anticipate their dollar reserves will be lower. Reporting by Zhang Yan and Qiaoyi Li in Bengaluru, as well as Anushree Mukerjee and Ishaan Aroo from Bengaluru. Editing by Jacqueline Wong, Christian Schmollinger and Jacqueline Wong.
Indonesia concludes search for victims after boarding school collapse. 61 dead
Indonesian rescuers finished their search for victims under the rubble in East Java province on Tuesday after recovering more than 60 corpses, according to disaster authorities.
Last week, the small town Sidoarjo was engulfed in grief and confusion after the Al Khoziny School collapsed on hundreds of people - mostly teenagers - while they were praying. Most escaped.
In a statement the disaster mitigation agency announced that all 61 bodies in the building had been located, along with seven body parts police are trying identify. The search was halted for the worst disaster of the year, which it called.
Mohammad Syafii is the chief of the Search and Rescue Agency. After authorities removed the debris, he said, "Operations due the collapsed structure at the Al Khoziny School... are now officially closed."
Budi Irawan is the deputy chief of the agency.
The rescuers used cranes and excavators to lift huge chunks of concrete. As they dug through the tunnels, rescuers shouted names of those presumed still alive.
Al Khoziny, also known as a pesantren in Arabic, is one of over 42,000 schools of this type across the country. Only 50 have building permits, according to the Public Works Ministry.
It was impossible to determine if Al Khoziny possessed a permit or contact school authorities. Media reported that Sidoarjo Chief Subandi said last week the school allegedly did not have a permit. (Reporting and editing by Clarence Fernandez; Stanley Widianto)
(source: Reuters)