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Europe's STOXX 600 closes at a higher level, with the focus now on Nvidia results
Investors waited for earnings from Nvidia, the leader in artificial intelligence chips and political risks in France to see if Europe's STOXX 600 would recover on Wednesday. The pan-European STOXX 600 closed 0.1% higher, just a day after it registered its biggest drop in almost a month. The majority of regional bourses closed in red, however. The CAC 40 in France bounced back by 0.4% after a sell-off that sparked fears of a possible collapse of the government headed by Prime Minister Francois Bayrou next month. Three major opposition parties announced on Monday that they would not support Bayrou's plans to cut the budget, as he had announced in his confidence vote for September 8. If the government falls apart, President Emmanuel Macron can name a new premier immediately, or ask Bayrou to remain as leader of a caretaker administration, or call a snap general election. Christophe Hautin is the equity portfolio manager of Allianz Global Investors. He said: "A lot has been priced in already, especially for French names... French banks and utilities, business services. But I expect uncertainty to continue for the next couple of weeks." Investors await earnings from Nvidia - the world's largest company - for new cues about the AI trade after a blistering tech stock rally hit a bump in August. The European corporate earnings are resilient, with over 52% of companies reporting second quarter earnings to date exceeding analyst's estimates. Nicholas Brooks is the head of ICG's economic and investment research. He said that investors want to know how tariffs and uncertainty in the last few months has affected business confidence. Sectoral losses were led by heavyweight banks, which fell 1.3%. After a Goldman Sachs rating downgrade, shares of Germany's Deutsche Bank, Commerzbank and HSBC fell by 3.4%, 4.9% and 5.9% respectively. The personal and household products sector, on the other hand, gained 1.5%. Luxury stocks were the main drivers, and the index hit a new high. Swatch gained 6.3% to lead the STOXX 600 after its CEO stated that the company would be able to meet the demands of the future. Partly offset Analysts said that the U.S. tariffs would have an impact on prices. DiaSorin dropped 5.8%, the highest on STOXX600, after J.P. Morgan Coverage initiated The Italian Medical Diagnostics Group at "Underweight" JD Sports' stock rose by 3.6% as a result of improved sales in the U.S.
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Ukraine launches tender for Lithium Deposit Site in Kirovohrad Region, PM says
Yulia Shvyrydenko, Ukraine's Prime Minister, announced on Wednesday that the country has begun a public tender to acquire the rights to mine a deposit of lithium in Kirovohrad. The tender for "Dobra" is expected to represent the first project of a joint fund of investment with the United States, which was signed in April in Kyiv as part Kyiv’s efforts to keep Washington in line in its war on invading Russian troops. The U.S. has a preferential deal with Ukraine on new mineral deals, and can invest in Ukraine's reconstruction. This is a deal that was heavily promoted by U.S. president Donald Trump. Svyrydenko posted on Telegram that the site contained significant lithium reserves, which are of strategic importance to energy and technology. We are searching for an investor that will not only ensure extraction but also development of value added production in Ukraine. She stated that an official announcement will be made in the next two month, followed by a period of three months for bids to be accepted, and finally a decision on the winner. Ukraine's Economy Ministry said on its website the winning bidder would sign a contract for 50 years and commit to invest at least $179 millions. The document stated that the amount included both funding for geological research and production and enrichment. The agreement also stipulates the compliance with environmental standards and the use of Ukrainian products and labour as well as investment in the local communities. (Reporting done by Yuliia Dyesa and Max Hunder. Toby Chopra, Mark Potter and Toby Chopra edited the story.
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Investors wait for Nvidia to recover the dollar before stocks rise
The major stock indexes rose on Wednesday as upcoming results by artificial intelligence leader Nvidia offset concerns about the Federal Reserve’s independence. Meanwhile, the dollar recovered after its previous session's decline. After Donald Trump said that he would dismiss Lisa Cook, Lisa Cook's lawyer said she would sue him. Investors were concerned by Trump's remarks about the independence and stability of the U.S. Central Bank. The yield curve steepened and interest-rate sensitive yields on two-year bonds fell to a nearly four-month-low as traders assessed the possibility that Trump could make more dovish Fed appointments. The dollar was up 0.36% last session at 147.93 Japanese Yuen while the euro fell 0.48% to $1.1586. The three main U.S. indexes are slightly higher. Nvidia's report on the second quarter, which is due to be released after the closing bell was seen as a test for the AI optimism, which has driven markets in the last couple of years. "Trump's been on the Fed’s back from Day One and this (Cook's firing) is a continuation to that strategy." Jake Dollarhide is CEO of Longbow Asset Management, Tulsa. Investors wonder if Nvidia will be able to continue to meet Wall Street's expectations. "My expectation today is that it will." Investors have noted that technology shares, including some AI leaders, are tumbling this month. The Dow Jones Industrial Average climbed 93.12 or 0.20% to 45,509.88. The S&P 500 rose 10.61 points or 0.16% to 6,476.31 while the Nasdaq Composite gained 33.25 points or 0.15% to 21,580.05. Investors are closely monitoring the political risks in France. European stocks have recovered slightly from their previous day's drop. French assets were sold off on Tuesday due to concerns about the possible collapse of Prime Minister Francoise Bayrou's French government next month. The MSCI index of global stocks rose by 0.49 points or 0.05% to 953.21. The STOXX 600 pan-European index rose by 0.09%. Market watchers have interpreted Fed chair Jerome Powell's remarks at the annual Jackson Hole Symposium last week as an indication that interest rate cuts may be coming. Fed funds futures are pricing 88% odds that a rate cut will occur in September according to CME Group’s FedWatch Tool. The outlook for U.S. rates will still depend on the strength of the labor market and inflation trends. The yield on two-year U.S. Treasury bonds, which moves typically in line with interest rate expectations and was at 3.654% last, it was down about two basis points for the day. The benchmark 10-year yield increased to 4.289%, up from 4.256%. The yield curve between 2-year and 10-year bonds was at its steepest point since April 22, when it reached 63.3 basis points. U.S. crude climbed 0.79%, to $63.74 per barrel. Brent rose 0.62% to $67.64 a barrel.
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The first-half profits of Greek refiner Motor Oil have more than doubled
Motor Oil, a Greek refiner, reported on Wednesday a 54.9% drop in its first-half net profits as a result of a reduced refinery utilization following a refinery fire that occurred in September 2024 and lower refining margins. Insurance proceeds from this incident were outweighed by the reduction. The Athens listed group reported a net loss of 163.4 millions euros ($191.3million), down from 362 million euro a year ago. The group revenue dropped 15.6% on an annual basis to 5.27 billion euro, from 6.24 billion euro in the first half 2024. This was due to lower sales volumes as well as a drop in the average price of petroleum products. The earnings before interest, tax, depreciation and amortization fell 39.3%, to 387.4 millions euros. Insurance compensation contributed 150.8 million euro. Motor Oil reported that its refinery was operating at more than 80% capacity in the first half of the year. The crude distillation unit affected will resume operations by August 2025. The refinery, which is Greece's 2nd largest, accounts for over a third the total refining capability of the country. Motor Oil's EBITDA is "satisfactory", as the utilisation of refining equipment improves and the seasonal margins. Capital expenditures for 2025 are expected to be 200 million euros.
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Authorities say that three people were killed and 20 others injured in a shooting at a Minneapolis Catholic school
A U.S. Justice Department spokesperson said that three people were killed and 20 others injured in an attack on a Catholic School in the South End of Minneapolis, Wednesday. An anonymous official confirmed that the shooter was one of those who died. The shooting took place two days after the start of school at Annunciation Catholic School, a private primary school with 395 students. The school and the church are both located in an area of residential homes in southeast Minneapolis. Richfield police, in a nearby suburb said that a man in all black, with a rifle, was seen at the scene. Local TV reports that a news conference will be held around 10:30 Central Time. Local media reported that children were attending a morning Mass when the shooting started. Parents were seen on local TV ducking under the yellow crime tape as they led students out of school. Students wore blue shorts, skirts and green polo shirt. U.S. president Donald Trump confirmed that he was briefed about the shooting, and the FBI had arrived on the scene. Please join me in praying to all those involved! He said it on social media. Homeland Security Secretary Kristi K. Noem posted on social media that Homeland Security Department is in contact with local authorities, and they are monitoring the situation. Police say that there have been three more shootings since Tuesday in this midwestern city, which have left three dead and seven injured. Reporting by Jana Winter; writing by Andy Sullivan, editing by Frank McGurty, and David Gregorio; reporting by Brendan O'Brien; Andrew Hay; Rich McKay; and Brad Brooks;
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Dollar gains as gold falls; PCE data is in focus
Gold prices fell on Wednesday, as Treasury and dollar yields increased. However, the losses were limited due to the demand for safe havens amid concerns over the independence of the U.S. Central Bank following President Donald Trump's attempts to remove a Fed Governor. At 1018 am, spot gold fell 0.4% per ounce to $3379.76. ET (14:18 GMT). U.S. Gold Futures for December Delivery fell 0.1% to $3.428. The dollar index rose 0.4% in relation to a basket major currencies. This made greenback-priced Gold more expensive for foreign buyers. Jim Wyckoff is a senior analyst with Kitco Metals. He said: "We are seeing a stronger U.S. Dollar index today, and a slight increase in bond yields. The yields put selling pressure on gold and silver." U.S. Treasury Yields climbed 0.4%, which weighed on the appeal of non-yielding Gold. Trump announced earlier this week that he would remove Federal Reserve Governor Lisa Cook's position from the board of directors. Cook's attorney said that she would sue to stop Trump from firing Cook, starting a long-lasting legal battle. The gold price rose Tuesday to its highest level in more than two weeks, after Trump tried to dismiss Cook. Investors are now waiting for Thursday's GDP and Friday's Personal consumption expenditures - the Fed preferred inflation gauge – to provide clues about the path of interest rates. The economists surveyed by predict that the PCE index will rise 2.6% in June, matching its rise. If (the PCE data is) a miss, it could begin to raise doubts about whether the Fed will be able cut rates in September. Wyckoff stated that it would be a very strong number of inflation to prevent the Fed from reducing rates in September. According to CME FedWatch Tool, the markets are anticipating that there is a greater than 90% chance for a rate cut of 25 basis points at next month's Fed policy meeting. (Reporting by Sarah Qureshi and Anushree Mukherjee in Bengaluru; Editing by Pooja Desai) (Reporting by Sarah Qureshi and Anushree Mukherjee in Bengaluru; Editing by Pooja Desai)
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Russian miner Polyus' profit in the first half of its financial year jumps by 20% due to high gold prices
Polyus, Russia's biggest gold producer, posted a 20% increase in profit for the first half of this year compared to last. This was due to high global prices which offset lower sales. The board of directors, who has said previously that it would strike a balance in terms of investment and dividend payments to shareholders, has recommended 70.85 roubles per share for the first half 2025. The total amount of money paid out is 67.25 milliards roubles. The company reported that revenue increased by 35%, to $3.7 billion, and EBITDA by 32%, to $2.7 billion. The company stated that the growth was due to an increase in average gold selling prices in the period under review, which countered the negative impact from lower sales volumes. Gold production also fell 11%, to 1.3million ounces. The company confirmed that it expected a decline in production this year as a result of a planned reduction on its Olimpiada Mine. Gold prices have risen by around 30% since the start of 2025. This follows a 27% rise in 2024. At 1340 GMT, spot gold prices were down by almost 0.5% to $3,380 an ounce. Russia will be the second-largest gold producer in the world after China. It will account for 9% global mine production by 2024. According to Metals Focus, Polyus is the world's fifth-largest gold mining company. The United States, Britain, and the European Union have banned the import of Russian gold by 2022.
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TechMet launches critical mineral trading unit after Mercuria increases investment
TechMet, a U.S.-government-backed investment vehicle, is launching an arm to trade critical minerals following further investment by commodity trading house Mercuria. This was announced on Wednesday. TechMet, a private company, owns stakes in 10 different companies including Brazilian Nickel, Cornish Lithium, and Rainbow Rare Earths. According to a press release, TechMet SCM will be a new trading unit that will concentrate on specialty metals from its portfolio companies as well as third parties. Mercuria has increased its investment to make possible the launch the trading arm. It did not specify how much Mercuria had invested. TechMet stated that "it will... expand its global foot print with teams in South Korea and Western Europe, and Washington D.C. for the purpose of strengthening partnerships and securing new offtake agreements." Quentin Lamarche will lead the new trading arm that is owned entirely by TechMet. He was previously a co-managing Director of a joint Venture between Mercuria & TechMet focused on trading batteries metals. LinkedIn says that Lamarche is based in Belgium and previously worked in Hong Kong for Specialty Metals Resources, as well as in Belgium for Umicore. TechMet has a number of major investors, including the U.S. Government's International Development Finance Corp. Qatar Investment Authority is another major shareholder, as are S2G Investments, Lansdowne Partners and Lansdowne Partners. Reporting by Eric Onstad, Editing by Mark Potter
The dollar's strength and China's concerns has caused copper to lose its four-session winning streak.
The copper price fell on Wednesday after four consecutive sessions of gains. A stronger dollar, increasing inventories, and concerns about the demand from China, which is the world's largest metals consumer, all contributed to this decline.
The benchmark contract for three months on the London Metal Exchange dropped 0.7% in open-outcry official trading to $9,772 per metric ton, after hitting a two-week high of $9,862 Tuesday.
LME copper is up 11% in this year. It has recovered from a low of $8.105, which was more than 16 months old, at the beginning of April.
Ewa Mnthey, a commodities analyst at ING, said that "Chinese Demand is Slowing Down". Other factors affecting the economy include tariffs and a weakened property sector. The data from China were mixed. Industrial profits in China declined for the third consecutive month in July, against a backdrop that was weak demand and continued factory gate deflation.
Profits in the manufacturing sector grew by 6.8%.
Alastair Munro is a senior base metals analyst at Marex. He believes that the improvement in metals could be due to a campaign waged by the Chinese government over the last two months, which aims to reduce excess production capacity, including metals. Munro stated that metals are doing well, given the weak macro-economic climate and the dollar's rally.
The metals market was also affected by the stronger dollar following Donald Trump's decision to dismiss Federal Reserve Governor Lisa Cook. This move rekindled investor concerns about the independence of the central bank.
The dollar price of metals increases when purchased with other currencies.
The LME and U.S. COMEX also reported a rise in the number of warehouses. This impacted sentiment.
LME copper inventories
Click here to see the latest news in metals.
(source: Reuters)