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South Africa moves towards a trade agreement with China
South Africa announced on Friday that the 'trade minister' had signed an economic framework partnership agreement during a trip to China. It described this as a "step" towards ensuring duty-free access for South African exports to the Chinese market. Africa's largest economy, which is the second largest bilateral trading partner in Africa after China, wants to boost its exports despite a dispute over tariffs with the United States. In August, U.S. president Donald Trump imposed the highest tariff rate in Sub-Saharan Africa of?30% on South African exports. The South African trade ministry announced in a press release that Minister Parks Tau had signed an "Framework Agreement on Economic Partnership for Shared Prosperity" with his Chinese counterpart Wang Wentao. According to the statement, an "Early Harvest Agreement", which will allow China to provide duty-free access for South African exports by the end March 2026 will follow the agreement. China announced in June last year, after Trump began announcing tariffs against countries all over the world, it would remove all tariffs from 53 African states that it has diplomatic relations with. Kenya, the largest economy in East Africa, announced a preliminary deal with China. South Africa's Trade Ministry said that deepening trade relations between South Africa and China will create opportunities for South African businesses to enter the Chinese markets, especially in mining and agriculture sectors. Tau stated that "we will negotiate to ensure the necessary safeguards are built into the agreement to protect South Africa’s?industrial capability". China invited South Africa to a special event to promote investment in the?South Africa steel industry. Tau stated that "we look forward to attracting more Chinese investments into South Africa and also introducing South African products onto the Chinese market."
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CME Group increases gold and silver margins as market volatility continues
CME Group, the world's largest commodities exchange, has raised the margin requirements on gold and silver contracts to reduce the risks of a heightened volatility in precious metals markets. Margin is the 'deposit' that investors pay to an exchange to cover their risk in case of default. When volatility increases in the market, exchanges will typically increase margins as a way to reduce risk. CME Group announced on Thursday that the margins for COMEX Gold Futures (100) have increased from 8% to 9% for accounts with a Non-Heightened risk Profile (Non HRP). The initial and maintenance margins on COMEX Silver Futures were raised to 18%, from 15%. After the close of business Friday, February 6, these rates will be in effect. Since January 13, the U.S. exchange operator sets margins for gold and silver as a percentage of the contract value. Prior to January 13, the margins were based on dollar amounts. CME has increased margins three times since the change to the methodology for setting margins - January 30, February 2 and the most recent one. Gold and silver have experienced wild swings in the last few sessions. They posted their steepest losses in decades on Friday, after reaching record highs earlier in the week. Spot gold rose 2.6% at $6,894.99 per ounce, up from a session low earlier in the day of $4,654.29, while silver gained 5.5% to $75.15 after falling?to an earlier low of $63.99, which was a two-month low. U.S. Gold Futures for April Delivery gained 0.4%, to $4,905.8 an ounce. Silver futures fell 3%, to $74.46. (Reporting from Swati and Noel John, Bengaluru. Editing by Subhranshu Sahu.)
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Three dead in light plane crash off South Australia coast, police say
Police said that a light plane crashed on Friday into the ocean near South Australia, killing all three men aboard. Police said that the plane crashed in Long Bay, near the port city?of Goolwa South on Friday afternoon, local time. This is about 63 kilometers (39 miles) south of Adelaide, the capital. The police released a statement saying that those on board, including the pilot, "were later located dead." They also said the wreckage had been returned to shore. Local media outlet 7News posted late on 'Friday on X what they said was eyewitness footage showing the plane plummeting 'nose first into the ocean. The Australian Transport Safety Bureau (ATSB) investigators were on the scene of the accident Saturday, according to police. Sam McKeith, Sydney; Editing by Franklin Paul
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Hengli Petrochemical establishes a trading subsidiary in Dubai as part of expansion
Hengli Group, the parent company of China's Hengli Petrochemical, announced a new trading office for Hengli in Dubai. Hengli Group said in a message that the 'new office in Dubai will allow Hengli to allocate resources more efficiently and expand its market coverage. Hengli Group announced that Li Maohong will be in charge of the office. According to his LinkedIn profile, Li has been in charge of Hengli Singapore’s proprietary trading since the year 2025. He was previously a senior oil broker with state-run Sinochem and established Hengli Petrochemical International, Singapore in 2018. A source familiar with the expansion told an industry source that the new office would start out with five trading and support roles. Another source familiar with the development stated that the office will trade oil and petrochemicals. Asian chemical and energy companies often have offices in Singapore and Dubai to be closer to Middle Eastern producers and European consumers. Chinese conglomerate Hengli, headquartered in eastern Jiangsu province, ?operates a 400,000-barrel-per-day refinery and petrochemical complex in the northeast port city of Dalian. Reporting by Chen Aizhu in Singapore, Siyi Liu in Beijing and Florence Tan at the Petrochemical Complex of Dalian. Editing by Harikrishnan Nair.
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Morning bid Europe-Fed is under pressure as layoffs increase
Gregor Stuart Hunter gives us a look at what the future holds for European and global markets. There is no report on jobs for Friday. The markets are worried about the?non farm payrolls being delayed - yet again - by another U.S. shutdown and the global selloff on Wall Street. Following fresh signs of economic strain in the labor market, traders are increasing?betting? that the Federal Reserve will ease policy at its meeting. According to a survey by global outplacement firm Challenger, Gray & Christmas, the number of layoffs in the U.S. increased in January, reaching the highest monthly level in 17 years. According to CME Group’s FedWatch tool, although pricing implies a high probability that the Fed will stay on hold, funds are pricing in a 22,7%?probability? of a 25 basis-point reduction at the U.S. Central Bank's next 2-day meeting, which ends on March 18?compared to a 9,4% chance the day before. As of now, the sell-off in global?stocks has entered its third day. Emerging markets look shaky. Korean?shares were the first to fall after a?early 5 percent drop in the KOSPI caused a trading stop. The Nikkei was up 0.6% as the stocks rallied ahead of Sunday's elections. Early European trades saw pan-regional futures down 0.1%, FTSE Futures down 0.6% and German DAX Futures up 0.1%. Two of the most important speculative trades for the year found bottoms during the Asian session. Bitcoin has recovered from a drop of 4.9% to trade at $65,778.90, a 4.2% increase. After a 19% drop on Thursday, the price of silver has reversed its 10% fall and is currently trading at $73.71. However, big tech has not seen much relief. Amazon shares fell 15% after-hours after the company announced on Thursday that capital expenditures would increase by more than 50% this year. The following are key developments that may influence the markets on Friday. Earnings announcements Philip Morris International Cboe Global Markets Societe Generale Telenor Economic Data Germany's industrial output and trade balance in December Halifax house prices in January France: reserve assets and trade balance in January Debt auctions: UK government debt: 1 month, 3 months and 6 months
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Canada reduces EV regulations, but increases incentives
Mark Carney, the Canadian Prime Minister, announced on Wednesday that his government would scrap a national mandate for electric vehicle sales and instead increase incentives to encourage EV purchase and charging. Carney announced that Canada would provide C$2.3billion ($1.68billion) in incentives up to C$5,000 for individuals or businesses who purchase or lease EVs. C$1.5billion will also be allocated to EV charging. Canada will also give up to C$3.1billion to Canada's auto manufacturing sector to assist it in making the expensive transition to electric vehicles. He said that the recently announced partnership with China would "drive new Chinese joint venture investments in Canada" and allow a certain volume of Chinese electric vehicles to be imported into the Canadian market. These measures are in response to the recent decision by the European Commission to reduce rules that would have effectively phased-out sales of?gasoline- and diesel-engined cars due to slower than expected adoption of EVs by consumers. Canada's new incentives are far more supportive of EVs than those in the United States who recently eliminated?key tax benefits for battery-powered vehicles. Carney's announcement was praised by automakers, but some environmentalists condemned it. Canada announced that it would introduce stricter emissions standards for model years 2027-2032. It says this will help it achieve its goal of 75% electric vehicle sales by 2035, and 90% by 2040. In contrast, in September, the United States ended its long-standing $7,500 electric vehicle tax credit. Since Donald Trump became president last year, U.S. has taken several steps to help automakers sell gas-powered cars. Changes to Avoid Burdens in the Auto Sector: PM Carney stated at a recent press conference that replacing Canada's mandate for EV sales with stricter vehicle emission standards would "focus on the results that matter most to Canadians while avoiding burdens on the Canadian automotive industry." Ottawa, then under Justin Trudeau as Prime Minister, mandated in 2023 that 20% of vehicles sold by 2026 would be emission-free. Vehicle manufacturers were not happy with the initiative, claiming it would result in unsustainable costs. Carney said he still considered Canada to be "a leader on climate change," noting the country would release its climate-competitiveness strategy in the coming weeks. Sam Hersh, a member of Environmental Defence's advocacy group, called the new EV Strategy "a huge failure." Hersh stated that while the short-term benefits for automakers may seem appealing, they will cause long-term problems and set the industry down a path of inevitable decline. The Canadian Vehicle Manufacturers' Association praised Carney's actions, saying that "funding for renewed purchase incentives as well as a robust strategy to develop charging infrastructure will continue to drive EV Adoption." Ontario Premier Doug Ford described the "new strategy" as a "pivotal moment", given that the U.S. president Donald Trump is attacking the economy and sovereignty of the country. Consumer Choice Center, a group that advocates for consumers' rights, also applauded Carney’s EV announcement. They said: "it has always been wrong for governments to try and dictate to Canadians which type of vehicle they should buy." CANADA FOLLOWS EUROPE In December, the 27-member European Commission agreed to lift its ban on new combustion engine cars?from 2030. Carney, citing U.S. Tariffs' damage to the highly-integrated North American auto industry, urges the country to "diversify their trade and boost local manufacturing." In November last year, the federal government scrapped an emissions cap for the oil and gas industry and removed rules on clean electricity in order to encourage investment in energy production. Canada will maintain counter-tariffs for auto imports coming from the United States. It is also looking into ways to encourage Canadian manufacturers to increase production and invest. Carney reached a first trade agreement with China last month to reduce tariffs on electric vehicles. Canada will allow Chinese EVs up to 49,000 at a 6.1% tariff on most-favored nation terms. The quota is set to increase gradually to around 70,000 in 5 years. Carney stated that Chinese electric vehicles would not qualify for government incentives.
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Iron ore falls on the commodities rout but supply risks limit the downside
Iron ore futures fell for the second time in a row on Friday. This was due to a general commodities sell-off that was triggered by a decline in Wall Street tech shares. The Singapore contract dropped below $100 for only the first time since November 2025. As of 0303 GMT, the most-traded contract for May iron ore on China's Dalian Commodity Exchange was trading 1.23% lower. It was 760.5 Yuan ($109.58), per metric ton. This week, the contract has fallen by 3.91%. The benchmark March Iron Ore traded on the Singapore Exchange fell 0.91% to $99.7 per ton. Iron ore has lost 3.99% so far this week, and is set to have a fourth consecutive weekly decline. After a tech selloff on Wall Street due to concerns over the artificial intelligence boom, iron ore prices dropped along with other commodities. According to a February 6 report by ANZ, weaker?fundamentals are pushing?iron ore price down beyond the $100 threshold. Both inventories and shipments in Chinese ports have increased over recent weeks. Rio Tinto has also withdrawn from talks with Glencore, which would have created the largest mining company in the world. Iron ore prices could be supported by declining shipments from Brazil and Australia, two of the top suppliers. Brazil's iron ore shipments in January were lower than expected, as the second largest producer of iron ore is experiencing a rainy season that typically lasts from April to May. Due to the threat of cyclones, key Australian ports that export iron ore are being cleared. This could disrupt a?supply?. The Australian cyclone season typically lasts from April to May. Coking coal and coke, which are both steelmaking ingredients, have also declined, by 2.33% and 0.88%, respectively. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. Hot-rolled coils retreated by 0.37%. Wire rods softened by 0.47%. Stainless steels decreased by 0.85%.
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Investors in Australia applaud the end of Glencore's takeover talks
Australian Rio Tinto shareholders have welcomed the decision of the mining giant to end merger discussions with Glencore. They said that now it is up to the company's new strategy, which they had placed so much emphasis on. The proposed merger, first announced in January, was intended to create the largest mining company with a value of more than $200 billion. Rio announced on Thursday that the two companies were unable to reach a deal which would have provided shareholders with enough value. Rio's investors feared that the miner could overpay Glencore to make a deal. Sources said that Glencore wanted to give its shareholders 40% of the combined?company. Andy Forster, Argo's?senior investor officer, said: "It is a positive sign that Rio does not appear to overpay." It would have taken a few more years to integrate and complete the deal. Rio Tinto shares listed in Australia rose up to 2.6%, reaching a new record high. However, they have since pared these gains and are now only up by about 1%. The S&P/ASX200 fell 2%. This reinforces Rio's approach to capital management. John?Ayoub of Wilson Asset Management, portfolio manager at Rio and Rio investor said, "We are delighted to see Simon Trott passing his first test as CEO." He said that the merger would have resulted in a "positive zero-premium" but not at Glencore's desired takeover valuations. Rio should focus now on its existing pipeline growth projects. Trott stated that under his leadership Rio Tinto will become "stronger" and "sharper", as he seeks to focus on Rio's core assets. Hugh Dive said that the Glencore bid "was the exact opposite" of Trott's strategy. Atlas Funds Management is a Rio Tinto investor. He said that "miners have a terrible track record over the long term for mega mergers." "It's probably a fortunate escape for Rio but it also signals the new desire of management to make large acquisitions." (Reporting and editing by Scott Murdoch)
As geopolitical tensions decrease, the focus shifts to US data
The gold price eased on Tuesday as the demand for safe-haven assets decreased due to a ceasefire agreement between Iran and Israel. Market participants were cautious in advance of important U.S. data.
Gold spot was down 0.3% to $3,314.45 an ounce as of 0934 am EDT (1334 GMT), after the previous session saw prices at their lowest level in more than two weeks.
U.S. Gold Futures dropped 0.2% to $3328.10.
Daniel Pavilonis is a senior market strategist with RJO Futures. He said that despite the potential and momentum in the markets, gold has never reached new highs.
"So, now I think that the path is more on the downside. It may reach $2,900 if the Middle East doesn't escalate." Donald Trump, the U.S. president, praised the end of war between Iran and Israel. He said he expected a new relationship with Tehran to prevent it from re-building its nuclear program.
S&P 500 index and Nasdaq rose on Wall Street, hovering close to a record high.
Investors will also be watching the second day's testimony of Federal Reserve Chairman Jerome Powell to Congress, which is scheduled to begin at 10:00 am ET. ET.
Powell said on Tuesday that the decision to cut rates can only be made after considering the impact of tariffs, the inflation rate and the weakness in the labor market.
The U.S. jobs and GDP data are scheduled for release on Thursday. Meanwhile, the Price Consumption Expenditure data (PCE) is due to be released on the Friday. Traders are closely watching this data to gauge the Fed’s future policy direction.
Market participants currently believe that there is a greater than 85% likelihood of a September rate cut.
Bullion is more likely to perform well in periods of uncertainty or when interest rates are low.
Palladium fell 1.8% to 1,046.73 dollars. Platinum lost 0.8% and dropped to $1305.74. (Reporting by Sarah Qureshi in Bengaluru; Editing by Tasim Zahid)
(source: Reuters)