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Copper prices fall as hope for a quick end to the Iran war fades
Copper prices fell on Thursday for the first time in five sessions, as investors grew more concerned about economic growth following Donald Trump's promise to continue a flurry of strikes on Iran. Open outcry official activity on the London Metal Exchange showed that benchmark three-month copper was down 1.6% to $12,235.50 a metric tonne. The metal is considered to be a bellwether of the global economy and was expected to finish the Easter holiday-shortened weekend up 0.4%, after a run of four consecutive daily gains. "Copper is trading like a risk asset that's sensitive to macroeconomics, moving in line with equities as sentiments weaken around macroeconomics and geopolitical uncertainties persist," said DBX Commodities CEO, Alexandre Claude. Stocks continue to grow. LME copper stock The 364,450 tonnage is the highest for almost eight years. Major Chinese smelters plan to 'raise or maintain production in 2026, despite an earlier public commitment made late last year that they would reduce output by more than 10 %. Aluminium prices fell 3%, to $3.424 per ton. This is despite fears of smelter closures in the Gulf after last Saturday's Iranian attacks. Iran's Revolutionary Guards warned that Tehran would respond in a "more painful way" if Iranian industry is again targeted. Ewa Mnthey, ING commodities analyst, said that despite the escalation rhetoric aluminium prices are still lower as markets struggle to determine how severe and long these Gulf disruptions will be. "Current prices reflect headline risk but not the full physical impact. This is especially true if shutdowns continue or spread." The LME cash aluminium contract traded at a premium of $67.25 per?ton over the forward three-month contract This indicates a shortage of metal in the near future. Zinc fell 1.7% to $3.235, while lead dropped 1.3% to $2,916, nickel slipped 0.9% to $17.050, and tin dropped 3.9% to $45,500. Manthey said that the pullback in LME metals "looks more like short-term risk-trimming and positioning ahead of the long weekend." The LME will close on Friday, April 19th and Monday, April 21st for Easter. (Reporting and additional reporting by Ruth Chai, Editing by Emelia Sithole-Matarise & Arun Koyyur; Reporting by Tom Daly)
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Several countries form a coalition to ensure passage through the Strait of Hormuz
Britain said on Thursday that around 40 countries were discussing a joint action to reopen Strait of Hormuz after U.S. president Donald 'Trump' stated that securing this waterway is a problem other nations must solve. The virtual meeting was chaired by British Foreign Minister Yvette Cooper and included France, Germany Canada, United Arab Emirates, India, and started around noon in London. Cooper stated at the beginning of the meeting that "we are focusing our efforts on diplomatic and international planning, including the collective mobilisation and use of all of our diplomatic and economic pressures and tools." One official confirmed that the United States was not present at the discussions. Representatives of around 40 countries participated in the discussions after Trump stated on Wednesday that the Strait could?open "naturally". It was up to the countries who depend on it to make sure it is open. Focus on Military and Diplomatic Options In retaliation to the U.S. and Israeli strikes that began late February, Iran has 'effectively closed down the waterway which carries around a fifth the total world oil consumption. As energy prices rise, reopening the waterway has become a top priority for governments worldwide. European countries initially rejected Trump's request to send their navy?to this area out of fear?about getting dragged into conflict. Concerned about the impact that the cost of energy is having on the global economic system, they have formed a coalition in order to defend their interests. European diplomats stated that the formation of the coalition was still in its early stages, with Britain leading. Officials have said that the discussion on Thursday will focus on which countries are willing to participate, before military planners gather for discussions next week. Vernet, the spokesperson for France's Armed Forces, said at a press conference held on Thursday that this process would take place in phases and couldn't begin until hostilities were calmed down or ended. The talks will focus on ensuring shipowners feel confident enough to allow vessels to travel through the area again and lowering insurance premiums. Vernet also said that there would?eventually? need to be coordination with Iran in order to guarantee the security of ships. This is something that seems unlikely at this time. He said that discussions had begun on the types of military assets that could be provided. He said that "we will need to have a sufficient amount of vessels, coordination capabilities?in the air and at sea as well as being able to share intelligence." Trump said Wednesday evening that countries who use the Strait of Hormuz "should build up some delayed courage" to "just grab it". He said, "Just take it, protect it and use it yourself." But?France’s President Emmanuel Macron, speaking to South Korea's media on Thursday, said that seizing the Strait of Malacca militarily is an "unrealistic option". He said: "It will take an indefinite time and expose those who travel through the Strait to coastal threats from the Revolutionary Guards as well as missiles." Andrew Heavens, Philippa Fletcher and Andrew Heavens edited the article.
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India graveyard raid unearths hidden cooking gas canisters amid a shortage
A government official said that Indian police seized 414 canisters of cooking gas hidden in a cemetery in Hyderabad and arrested people who were trying to sell the canisters on the black market. This was in response to shortages caused by 'the Iran War. The authorities have increased raids in order to reduce the hoarding and stockpiling of liquefied gas canisters, after the U.S./Israeli war on Iran caused shipping disruptions that led to shortages. India is the second largest LPG importer in the world. About 60% of India's LPG demand is met by overseas purchases. Sujata sharma, a senior official at the Ministry of Natural Gas and Petroleum, said that yesterday around 2,600 raids had been carried out, and about 700 cylinders seized. "Also, 400 cylinders have been?recently discovered at a location within a cemetery in Hyderabad. She said that ten?people were detained and the distributor was suspended. The police said that the accused were selling domestic and commercial canisters at almost three times current market prices. A canister worth about 22,100 rupees (about 2,100 Indian rupees) was sold for?as much as 6,000 rupees. Police said that the total value of seized canisters as well as some vehicles used by accused was approximately 2.2 million rupees. The police could not contact the accused immediately or their representatives. Sharma stated that the?supply?of?natural gas for domestic consumers was 100% guaranteed. "In terms of LPG supplies, the prices are stable, despite international volatility. And there is no increase in the price of LPG cylinders sold domestically." India is promoting alternative fuels such as kerosene and coal, while also accelerating the rollout of natural gas piped to households.
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Putin floates idea of "grain and Energy Hub" in Egypt
The President of Russia, Vladimir Putin, said that Russia and Egypt could discuss creating a "grain-and-energy hub" in the North African country. Putin brought up the idea at a meeting with Egyptian Foreign Minister Badr Abdelatty in the Kremlin, saying there were "many fascinating ideas" to be discussed. Abdelatty said, through an interpreter: "Egypt welcomes the Russian initiatives." In the televised portion of their meeting neither participant elaborated on?the "hub' proposal. In response to the waves of Western sanctions imposed over the conflict in Ukraine, Russia has sought new ways to distribute its?energy exports and commodities. Egypt is playing an increasing role in the handling of Russian commodities. It could also serve as a storage and logistics point for supplies headed to Africa and Middle East. Separate discussions at the business level have taken place regarding the possibility of creating a grain hub within Oman. Putin has talked about creating a gas hub in Turkey before, but little has happened. Egypt is the largest buyer of Russian wheat in the world. According to estimates by rail carrier Rusagrotrans it has purchased about 7.6 millions tons of Russian grain this season. This is around the same amount as last year. Putin stated that he had instructed the Russian government to collaborate with Egypt in order to supply food, especially grain. He added that Russia would be able to deliver food with no problem, due to the good harvest last year. Egypt is one of the biggest importers of Russian gasoline and may be affected by the decision made on Thursday in Moscow to ban producers from exporting fuel until the end July. This will help to maintain the supply of gasoline for the domestic market.
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France announces 12 GW of renewable energy tenders and champions the 'Made in Europe initiative'
On Thursday, France announced seven offshore wind projects totaling 10 gigawatts as well as smaller onshore and solar wind tenders. The country said it would favour domestic technologies as part of its quest to achieve energy independence. Due to the political gridlock regarding financing renewables, France is struggling with high debt. The two-year delay in tendering is due to this. Roland Lescure, Finance Minister, said that the projects will help France to further wean itself off of imported oil and natural gas. The Iran War continues to disrupt cargoes that are sailing through the Strait of Hormuz. This is expected to lead to higher energy costs in Europe. Lescure told journalists that "thanks to France's energy policies over the last 50 years - notably the development of our nuclear fleet - we are better prepared for the current crisis and less exposed than Japan." "The idea is now to continue and accelerate." He added that French citizens already pay "30%-35% less for electricity than our Italian neighbors." The 10-year French energy plan, which was passed in February, requires 15 GW offshore wind by 2035. This is up from the current 2 GW. The tenders for Thursday also included 1.2 GW solar and 0.8 of onshore wind. Lescure stated that "we want to do as much of these bids as possible using our technologies,?factories and employees." France introduced a "resilience" criterion to give preference to bids that use more European components in an?ad to limit dependence on?China. Maud Bregeon, junior energy ministry, said that the requirement for solar bids will include photovoltaic modules and cells. For offshore wind, up to 'four' of the nine strategic components may come from China. She added that the share of "Chinese permanent magnetics" in offshore wind turbines would also be limited at 50%. In future bids, sustainability and cybersecurity criteria will be included. Lescure stated that this is a long-term plan to protect our industrial supply chains. "I think of Holosolis - in Moselle - for photovoltaics, Nexans - in Ain - for electricity distribution cable, Carester - which deals with rare earths - in the Atlantic Pyrenees and GE Vernova - in Saint-Nazaire - for wind turbines. (Reporting and Writing by America Hernandez; Editing by Dominique Vidalon, Jan Harvey, and Inti Landauro)
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No Easter truce for MORNING BID AMERICAS
By Mike Dolan April 2 - What's important in U.S. and Global Markets Today By Mike Dolan - Editor-at-Large at Finance and Markets. Market hopes that Trump would signal an end to the conflict with Iran were dashed after his prime time address spoke of two to three more weeks of war and offered little new information. Oil prices pushed higher and global stocks retreated, while the dollar edged up. Below, I will go into more detail. Check out my most recent column about the apparent resilience of the real economy to the oil crisis so far, plus an in-depth look at the latest macro releases. Listen to the most recent episode of Morning Bid's daily podcast. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a weeks. NO EASTER TRUCK Brent crude rose to $109 per barrel on Thursday, and WTI was just over $107 after Trump's televised address in which he claimed that the U.S. had almost achieved its goal in Iran, but "would hit them" in the next few weeks and "bring [them] back to the Stone Ages". Trump said that "discussions" are in progress, but he did not provide any details on the crucial Strait of Hormuz. The Nikkei in Japan fell 2.4%, while the Kospi in South Korea dropped 4.7%. European shares fell by about 1% at the opening, and U.S. Futures were down before the bell. The dollar index rose after two days of losses and regained the 100 mark as safe-haven demands reemerged. Gold also eased from its two-week highs touched Wednesday on the glimmers of hope. U.S. Treasuries also fell. Investors have a certain amount of anxiety as they head into the long Easter weekend. The March U.S. Employment Report will be released on Good Friday, adding to the tension. This report will provide a second read of any impact the economy may have. Early prints of the March economic data indicate that there will be less of a surprise than expected. ISM's Manufacturing Survey ticked up, U.S. Consumer Confidence rose unexpectedly and private sector payrolls exceeded forecasts. Full-year earnings estimates for corporations are also increasing. The 'hit' may come later, but the current picture shows a rise in input prices and a resilient economy - keeping central banks on the edge. Elon Musk’s SpaceX filed its IPO, which could be the largest in history. It will also test investor appetite for risky assets, especially against a volatile market. Amazon is also in talks with satellite telecom group Globalstar to help it build its low-earth orbit satellite business, which will rival SpaceX's Starlink. Chart of the Day Air travel into and out of United Arab Emirates is only slowly recovering after the initial shock caused by the Iran War. Trump indicated overnight that the conflict would likely last two to three more weeks. Watch today's events * U.S. weekly jobless claims (8:00 a.m. ET), February trade balance (8:00 a.m.?EDT). * Dallas Fed’s Lorie Logan addresses the audience (10:15 am EDT). Want to receive "the Morning Bid" in your email every morning? Subscribe to the newsletter. Follow us on LinkedIn, X and ROI. The opinions expressed by the author are their own. These opinions do not represent the views of News. News is committed to the Trust Principles and is dedicated to integrity, independence, freedom from bias, and impartiality.
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Indian shares rise on rupee strength, but war concerns drag down weekly performance
The rupee rose on Thursday, reversing the previous day's loss. However, fading hopes of an accelerated end to the Iran - war have extended the losing streak into a sixth consecutive week. The Nifty 50 ended the session 0.15% higher, at 22,713.1. The Sensex gained 0.25% and closed at 73319.55, up from a fall of more than 2% in the previous session. The rupee rose 1.8% against the U.S. dollar after reaching a record low during the previous session. The Nifty 50 and Sensex both fell by 0.5% and 0.4% respectively for the holiday-shortened weekend as the Middle East conflict?dragged along and Brent crude climbed to $109 a barrel after U.S. president Donald Trump vowed aggressive?strikes against Iran. India's manufacturing growth has slowed down to its lowest level in four years, and the government has raised prices for commercial LPG and jet fuel, raising fears that an extended energy shock will affect growth and inflation. U.R. Bhat, co-founder of Alphaniti?Fintech in Mumbai, says that traders probably covered short positions on Thursday to prepare for the long weekend. This led to an intraday recovery. Bhat is the co-founder and CEO of Alphaniti Fintech in Mumbai. Twelve out of 16 major sectors declined this week. Mid-caps fell 0.8%, while small-caps gained 0.2%. Bank stocks fell 1.4% on fears that curbs on forex speculating could result in trading losses. This is the longest losing streak since October 2023. Bloomberg News reported that the Trump administration could impose tariffs against drugmakers who have refused to lower their prices in the U.S. Bharat electronics rose by?4.2% and led defence stocks to rise 2.4% after India approved proposals for $25 billion in military purchases. The Indian financial markets are closed on Good Friday.
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Panetta, ECB's Panetta, warns that the energy crisis is a concern for financial stability
The tensions on the energy market due to the U.S. and Israeli 'war on Iran' are of concern because they could have a negative impact on the financial stability. This was the opinion of Governing council member, Fabio Panetta. Panetta, speaking at a conference held in Rome, said that changes in the risk perception of global investors could lead to rapid pressure on government bonds. This is especially true given the high levels public debt in several economies such as Italy. He said that there are signs of this trend, including the increase in the value of the dollar and the pressure on interest rates over the long term. Capital outflows in emerging markets also reflect a preference for safe assets. The Foreign Minister Antonio Tajani said that the war would increase migration if the Strait of Hormuz remained blocked. This is because the Strait of Hormuz is normally the main conduit for oil, gas and fertilisers destined for Africa. Panetta also warned investors about leverage and liquidity levels in nonbank financial institutions. Investors are growing increasingly concerned about the U.S. credit sector. Panetta stated that even if the Gulf War were to end quickly, a return of normal production would still take time. He cited more pessimistic ECB scenarios, stating that the energy supply 'would recover by the fourth quarter or 2027. Energy prices pushed up the inflation rate in the Eurozone to 2.5% from 1.9% in Feb. Panetta stated that these data "highlights the intensity and the speed with which energy shock is being transmitted". These effects will likely be reflected also in the data of the coming months. "At the same time, the trend of leading indicators, notably the 'decline in confidence among households, indicates a possible slowdown within the real economy." Panetta and Tajani both said that despite the dim outlook, Italy is in a better position than it was when Russia began its war against Ukraine in 2022. This is because investors have a more positive perception of Italy's finances. Panetta stated that "this has kept us safe thus far." (Reporting and editing by Emelia Sithole Matarise, Kevin Liffey, and Giuseppe Fonte)
Chile's lower home of Congress asks Boric to void Codelco-SQM deal
Chile's lower home of Congress authorized a resolution asking President Gabriel Boric to annul an agreement in between state copper company Codelco and Chilean miner SQM that would provide Codelco a prominent role in the lithium industry.
The movement, passed late on Tuesday, was led by the Party for Democracy (PPD), part of the judgment union, and authorized with 41 votes in favor, 15 against and 10 abstentions.
The collaboration in between Codelco and SQM is a major element of Boric's plan to boost the state function in Chile's production of lithium, a metal used in electrical lorry batteries.
The government-mandated offer would extend SQM's contract to extract lithium in the valued Atacama salt flat through 2060, while offering Codelco a more than 50% stake in the task.
The tie-up sparked criticism from some legislators and industry professionals, who said the SQM contract in the Salar de Atacama, set to expire in 2030, should have been opened to a. bidding procedure.
The resolution signed by legislators requires canceling the. deal so that the process can be done through a nationwide and. global public tender and not in a direct offer.
The Mining Ministry and Codelco did not instantly respond. to requests for comment. Boric has been encouraging of the. collaboration, which the companies intend to finalize early next. year.
Codelco Chairman Maximo Pacheco has actually consistently defended the. joint venture, stating the direct handle SQM guarantees a. constant circulation of funds to the Chilean state, with the miner. turning over 70% of its operating margin through 2030, and 85%. through 2060.
There are clear advantages that cause the conclusion that. the direct negotiation met its goals, he told Senate legislators. in a hearing last month.
Chile is the world's second-biggest producer of lithium,. with output from SQM and Albemarle.
(source: Reuters)