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Gold gains ground amid uncertainty and rate outlook
The gold price slightly recovered on Wednesday after the sharpest drop since 2020 the previous session. Investors bought on the dip amid economic uncertainty and the expectation of U.S. interest rate cuts. As of 0803 GMT, spot gold was up by 0.3% to $4,134.37 an ounce. U.S. Gold Futures for December Delivery climbed almost 1% to $4147.10 an ounce. Bullion, which reached multiple records this year, fell to $4,003.39 in the early session. This extended losses following a 5.3% drop on Tuesday, when it marked its biggest daily decline since August 2020. StoneX analyst Rhona o'Connell stated that "that correction was needed as the market had been well and true overbought trading off its momentum." "We're still in an uncertain era, which will likely lead to a new buying interest if there are any significant dips." Investors await the U.S. Consumer Price Index report (CPI), due Friday. This could provide insight into the Federal Reserve’s rate-cutting trajectory. The Fed is expected to lower its interest rate next week by 25 basis points and then again in December. However, opinions are divided about the future outlook of rates. A planned summit between U.S. president Donald Trump and his Russian equivalent Vladimir Putin has been put on hold, and uncertainty remains over a potential meeting between Trump & Chinese President Xi Jinping. Gold has risen 57% this year, a good sign for a currency that tends to do well in low interest rate environments. Bullion will have its best annual performance since 1979 due to geopolitical instability and economic uncertainty, U.S. interest rate expectations and robust ETF flows. Silver spot edged up 0.2% to $48,84 an ounce after Tuesday's 7.1% decline. Palladium rose 0.7% to $1 417.68, while platinum fell 1.4% to $ 1,529.52.
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Shanghai copper falls on weak China demand and strong dollar
Shanghai copper fell on Wednesday as traders lost confidence due to a weak Chinese demand, high prices, and a strong US dollar. The Shanghai Futures Exchange's most active copper contract closed the daytime trade down by 0.13% to 85,420 yuan (11,992.14) a metric tonne. The two sessions of gains were halted by this session, which was supported by strong industrial output in China and new attempts to ease Sino U.S. Trade tensions. The benchmark contract for three-months copper on the London Metal Exchange rose 0.41%, to $10.667 per ton at 0700 GMT. The red metal's demand is muted by the low acceptance of high prices from downstream buyers. It's a good thing the copper price was lowered a bit as this could encourage some real consumption by downstream buyers. "They were not buying anything before," said a Shanghai copper trader, who requested anonymity because he was not authorized to speak to media. In recent days, the stronger dollar has put pressure on copper prices. The metal's losses were narrowed by a slight retreat on Tuesday. The greenback price of commodities increases when the dollar is stronger. Traders are closely monitoring the developments in the China-U.S. Trade Conflict ahead of a meeting planned between U.S. president Donald Trump and his Chinese equivalent Xi Jinping, next week. Copper prices are still held at a minimum by the supply shortage caused by mine disruptions. Any decline is therefore limited. Aluminium, zinc, tin, and nickel all saw a slight decline. Lead was also little changed. Aluminium gained 0.58%. Zinc added 0.52%. Lead was up 0.38%. Nickel was up 0.20%. Tin saw a gain of 0.37%. $1 = 7.1230 Chinese Yuan (Reporting and editing by Sherry Jackson and Subhranshu Saghu).
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Iron ore prices rise on the back of bets that US-China tensions will ease
Iron ore prices rose on Wednesday as traders bet that trade tensions between the U.S. and China would ease and Beijing would unveil more stimulus measures for economic growth. This outweighed worries about a rising ore supply, and a decreasing steel demand. After U.S. president Donald Trump stated on Monday that he expects to reach a fair deal with Chinese president Xi Jinping, hopes grew of a deescalation in the trade spat. Trump said that he will visit China in early 2019, at Beijing's request. The daytime trading price of the most traded January iron ore contract at China's Dalian Commodity Exchange was 0.65% higher, closing at 774 Yuan ($108.66 per metric ton). By 0653 GMT, the benchmark November iron ore traded on Singapore Exchange was up 0.47% at $104,05 per ton. Analyst Zhuo Guiqiu at Jinrui Futures said that the rise was driven by a macroeconomic factor, as the expected ease of U.S. China trade tensions sparked a risk-on attitude. Investors also bet on more China stimulus after a series of disappointing data. The Communist Party's four-day meeting behind closed doors that began Monday will culminate in an outline of the next five-year strategy. The price increases were tempered by the expectation of a growing supply in the remainder of the year and the seasonal slowdown of steel demand. Vale, the largest iron ore miner in the world, produced 94.4 millions metric tons (the equivalent of steelmaking material) during the third quarter. This is a 3.8% increase on an annual basis and the highest production since the final three months of 2018 Rio Tinto (RIO.L) has also stocked up 2 million tonnes of high-grade ore in Guinea at its Simandou Project for a shipment scheduled to take place mid-November. Coking coal, coke and other steelmaking components rose by 1.43% and 1.06 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange have gained ground. Rebar gained 0.59%; hot-rolled coil gained 0.81%; wire rod gained 0.09%; and stainless steel gained 0.366%. $1 = 7.1230 Chinese Yuan (Reporting and editing by Amy Lv, Colleen Howe)
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Malaysia is seeking foreign partners to develop the rare earth sector. State media reports
Malaysia welcomes foreign companies to form joint ventures to develop rare Earths in the nation, according to state media on Wednesday. The report was based on the Trade Minister. According to estimates by the government, Malaysia has 16.1 million tons of rare earths, but does not have the technology to mine or process them. Malaysia wants to build midstream processing capability in a market dominated by China. China tightened export restrictions earlier this month. Exclusively, earlier this month, it was reported that the government is in talks with China about rare earths processing. The Malaysian sovereign fund Khazanah Nasional will partner with a Chinese company to build a Malaysian refinery. Anwar Ibrahim, Prime Minister of Malaysia, announced in his budget speech for 2026 to the parliament on 10 October that 10 million ringgit (2.37 million dollars) would be allocated by the government to continue mapping rare earth resources. Khazanah will also look to develop downstream activities through international collaborations. Bernama, the state news agency, reported that Tengku Aziz Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tengkul Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tengkku Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tengku Tenzafrul Teng He was quoted saying, "We would like to invite more Malaysians to invest in Malaysia, both in terms the supply chain and in terms economic interests. This means having equity and shares in this venture." Tengku Zafrul said that Malaysia's ban against companies exporting rare earths will force them to establish operations within the country. He said that the ministry of trade had not yet received any proposals for the establishment of new processing plants in the country. Tengku Zafrul said that the government would not stop Lynas Rare Earths of Australia, which operates a processing facility in Malaysia's central Pahang state, from exporting its products to any market of their choice.
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Sources say that the new Japanese PM is planning a large-scale economic stimulus in order to combat inflation.
Sanae Takaichi, the new Japanese Prime Minister, is working on an economic stimulus package which is expected to be larger than last year's $92billion to help families combat inflation. Government sources familiar with this plan told Reuters that it is being prepared to surpass last year's $92billion. Takaichi, who advocates big fiscal expenditures, took office Tuesday. This is her first major economic initiative. It reflects her commitment to "responsible fiscal policy". Sources declined to identify themselves because it was a private matter. They said that the plan will be built on three main pillars - measures to combat inflation, investments in industries of growth, and national safety. The Nikkei 225 index of Japan's shares reversed its losses on Wednesday after the report. Meanwhile, the yen was barely changed from the morning. Investors closely monitor her spending plans, as Japan is among the most indebted countries. The Takaichi government plans to quickly abolish the provisional gas tax rate as part of its core measures for inflation relief. The program also aims at expanding local government grants with an emphasis on small and medium-sized businesses that cannot benefit from the existing tax incentives to increase wages. As the government concentrates on economic development, it will include investments in sectors of growth such as artificial Intelligence and semiconductors. Sources said that the exact size of the package was still being finalised. The announcement could come as soon as next month. In order to fund these measures, the government has begun drafting the supplementary budget that will cover the current fiscal year up until March. It is hoped it will be passed during the next extraordinary session of parliament. If the additional spending exceeds expectations, it may be necessary for the government to issue bonds to cover deficits, which raises questions about how best to balance economic growth and fiscal discipline. Shigeto Nakai, Oxford Economics' head of Japan Economics, said that the plan is "consistent with Takaichi’s policy list (during the campaign for the ruling party’s leadership race)." Nagai said that it's no different than previous administrations who used the extra tax revenue generated by higher inflation to fund large supplementary budgets for vulnerable households rather than aiming to achieve a primary surplus. Takaichi became Japan's first woman prime minister Tuesday. The parliament vote pushed down the yen, and bond yields as investors hoped Takaichi would delay any further interest rate increases by the Bank of Japan. Takaichi, a longtime supporter of the "Abenomics", or stimulus policies of Shinzo Abe, has called for increased spending and tax reductions. He also pledged to assert government control over the central banks, which are weighing further interest rate increases and will be holding their next policy meeting October 29-30. She said that monetary policy is a part of an economic policy broader than the one for which the government has final responsibility. A news conference was held on Tuesday. The BOJ decided the specifics of the monetary policy.
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Miner Boliden's Q3 earnings beat market estimates
Boliden reported that its core earnings for the third quarter were lower than expected due to higher precious metal prices. The Swedish miner also reiterated its investment plans through 2025. Boliden’s operating profit for the quarter, excluding revaluation costs of its process inventories, dropped to 2.75 billion Swedish crowns (US$292.07million) from 3.0 million in the previous period. The average consensus estimate of 2,48 billion crowns provided by the company was beaten by this figure. In a statement, Chief Executive Mikael Stas stated that "despite the fact that there is still much uncertainty in the global situation, I believe the situation has become more stable." Boliden stated that the quarter's performance was aided by higher metals prices, particularly gold and silver. This was coupled with a higher volume of milled ore in the mines, and less planned maintenance at smelters. The price of Gold reaches $4,000 per ounce Investors sought cover in October for the first ever time, amid geopolitical unrest. In a statement, the company, which is primarily known for its copper and zinc outputs, stated that gold and other metals were now its third and forth most important metals in terms of its earnings. The group has maintained its forecast of capital expenditure for 2025 at 15.5 billion crowns.
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Norway's wealth fund increases net zero emissions pressure amid US climate rollback
Norway's $2 trillion fund, which invests in companies, is increasing pressure to reduce greenhouse gas emissions by net zero in 2050. This stands in stark contrast to the U.S. growing backlash against climate friendly policies. In 2022, the fund set out its first goal to bring all 8,500 companies under its portfolio into line with the Paris Agreement targets. It will include more companies in its updated climate plan that it considers to be the most polluting. These will be targeted for a more focused discussion. It said that "Climate Risk is Financial Risk." The fund has an interest in a smooth transition to net zero global emissions. NORWAY FUND CONTRASTS TO INTENSIFY US CLIMATE BACKLASH The updated guidelines of the fund come at a moment when international investors are moving away from ESG policies in climate change. The Trump administration, led by President Donald Trump, is boosting the production of fossil fuels, rolling back climate policy at home and working against climate initiatives overseas, including withdrawal from the Paris Climate Agreement. About half of the fund's value or $1 trillion has been invested in bonds, stocks and real estate. The fund previously focused mainly on emissions that come from sources controlled or owned by a business, and those from electricity and heat purchased. In its new plan it will also concentrate on Scope 3 or value chain emission, produced anywhere in the supply chain of a company. These emissions are the majority of those produced by many companies. Discussions on Climate Change with Company Boards The plan stated that companies "with the highest Scope 3 emission" would be added to a list of targeted companies for a direct, more focused dialogue on climate changes. The plan stated that "We will focus board-level interaction on climate with companies listed on the Climate Focus List." The fund didn't name the companies that might be affected, and it wasn't immediately clear if its management would take punitive actions against laggards. In general, the fund prioritizes dialogue with companies. The plan that was presented on Wednesday differs from the separate ethical guidelines established by Parliament, which led to regular divestments of the fund. Norges Bank Investment Management, the fund's operator does not decide on many of these divestments, even though they have often been made for environmental reasons.
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Sweden's SSAB exceeds earnings expectations in the third quarter
SSAB, a Swedish steelmaker, reported a higher-than-expected rise in its operating profit for the third quarter on Wednesday. This was despite a cautious atmosphere on the European steel markets and the limited impact of U.S. steel tariffs. Operating earnings increased to 1.87 billion Swedish Crowns ($198.61m) from 1.25 billion crowns in the period July-September, compared with 1.25 billion crowns one year ago. A consensus poll by SSAB revealed that analysts were expecting an average of 1.75 billion Swedish crowns. SSAB's US sales are largely based on local production, limiting the impact of President Donald Trump's new import duties. CEO Johnny Sjostrom explained this in a press release. He added that certain products, such as high-strength alloy steels for the automobile industry, were exported from the Nordics. Trump's first trade measures targeted steel and aluminum. In March, tariffs were imposed of 25% on the majority of imports. This was increased to 50% in June for most countries.
Singapore Airlines plane made 'significant drop', people flung upwards, say guests
There was little caution of the mayhem that was to come as passengers on Singapore Airlines flight SQ321 relaxed with just three hours to Singapore after a long haul flight from London.
However as the Boeing 777-300R overlooked Myanmar it unexpectedly hit extreme turbulence, extremely tossing travelers, flight attendants and meals around the cabin.
Unexpectedly the aircraft begins tilting up and there was shaking, Malaysian student Dzafran Azmir said.
The 28-year-old braced himself and inspected he had his seatbelt on. He did. A lot of the other guests did not, he said.
There was a really remarkable drop so everybody seated and not wearing seat belt was launched immediately into the ceiling, some individuals hit their heads on the luggage cabins overhead and dented it, they hit the locations where lights and masks are and broke directly through it.
One passenger passed away of a suspected cardiac arrest and lots were injured after the flight encountered what the airline company referred to as sudden extreme turbulence around 10 hours into the journey.
I keep in mind the things flying, the tightness of my waist from the seat belt, which was clearly holding me in location, stated Andrew Davies who had simply put his belt on after the seatbelt indication lit up throughout what had actually been a perfectly. typical flight.
There was screaming and a girl with a bleeding head. wound, he stated.
The flight experienced a rapid modification in vertical rate,. consistent with an abrupt turbulence event at 0749 GMT, flight. data provider FlightRadar 24 stated.
The incident lasted a few seconds, both passengers told. .
Individuals dropped to the ground, my phone flew out of my hand. and went a couple aisles to the side, individuals's shoes flung. about, Azmir said.
Oxygen masks hung down from the plane's ceiling, sections of. which had actually dropped or been dented and broken.
Debris, including fruit salad, kettles and trays of. in-flight meals, was strewn about the cabin, eyewitness footage. shows.
The flooring perspired with spilled coffee, white wine and water,. Davies kept in mind.
Turbulence - or pockets of disrupted air - can have many. causes. Singapore Airlines did not say what type was involved.
Weather forecast show extreme thunderstorms in the location.
It was cloudy outside, totally white, Azmir said.
The pilot declared a medical emergency situation and diverted the. plane to Bangkok, landing around an hour later on, and was fulfilled by a. large variety of ambulances and emergency workers.
Every single cabin crew I saw was injured, Davies said,. revealing appreciation to the staff who continued to help. guests.
The crew were not seated at the time, he noted, as they. were serving drinks and performing other duties.
The team and people inside lavatories were harmed the most ... There were a lot of spinal and head injuries, Azmir said.
Davies said he helped lay a guest on the flooring who. doctor on the airplane attempted unsuccessfully to. resuscitate for around 20 minutes.
Emergency situation teams lifted hurt guests over their heads. on stretchers down the narrow aisles, while other guests. remain seated.
As a passenger filmed themselves strolling through the carnage. to disembark, a voice can be heard stating: There are still. people on the ground.
Medical tents were set up on the tarmac to take a look at the. hurt; some bound to stretchers, some in wheelchairs.
Guests and team not being treated in Thai hospitals were. shuttled to Singapore on another flight early on Wednesday. early morning, and were satisfied on arrival by Singapore Airlines CEO Goh. Choon Phong.
I was very mindful of every bump on that flight and I. made absolutely sure that my seatbelt was firmly secured the. whole time, Davies stated.
(source: Reuters)