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Investors weigh US employment data and Fed rate decision as they consider copper prices
The price of copper edged up after a three day decline on Wednesday as investors awaited delayed U.S. jobs data. However, uncertainty over the Federal Reserve’s rate decision kept gains in check. As of 0300 GMT, the most active copper contract at the Shanghai Futures Exchange rose 0.15%, to 86.060 yuan (12,107.48 dollars) per ton. The benchmark copper for three months on the London Metal Exchange rose by 0.26%, to $10,747.5 per ton. Investors are cautious ahead of the official U.S. September job data, which was delayed due to the government shutdown. This is a crucial reference for the direction of monetary policy in the United States ahead of Federal Reserve's interest rate decision in December. Fed officials are pushing back against the idea that December's rate cut is a done deal. This leaves the market with doubts about one of the main pillars which supported its previous rally. Copper was also supported by concerns about supply, which were sparked worldwide by mine interruptions. Freeport-McMoRan announced on Tuesday it will resume production in Indonesia's Grasberg Mine by July 2026. This is in line with its previous guidance. The mine was shut down after a mudslide that claimed the lives of seven workers. Freeport anticipates that copper and gold production in 2026 will be similar to levels of 2025. The stronger Chinese currency helped stabilize the market by making dollar-priced goods cheaper for Chinese investors. Official data released on Tuesday showed that China's refined output of copper in October decreased 4.9% from month to month, but registered an annual increase of 8.9%. Other base metals in the SHFE rose by 0.19%. Zinc was up 0.34%. Nickel was up 0.26%. Tin gained 0.87%. Lead posted a loss of 0.41%. Aluminium, zinc, lead, nickel, and tin all gained in value on the LME. Wednesday, November 19, DATA/EVENTS - (GMT) 0700 UK CPI Core, CPI YY October 0700 UK CPI Services, MM, Oct 1000 EU HICP final MM and YY October 1330 US International Trade August ($1 = 7.1080 Chinese Yuan Renminbi). (Reporting and editing by Ronojoy Mazumdar, Tom Daly, and Lewis Jackson. Additional reporting and editing by Tom Daly.
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Iron ore reaches a two-week high due to strong demand and lower home supplies
The price of iron ore futures rose to its highest level in over two weeks on Wednesday, thanks to the continued demand from China's top consumer and its declining domestic supply. As of 0240 GMT the most traded January iron ore contract at China's Dalian Commodity Exchange rose by 0.89%, to 792.5 Yuan ($111.49), a metric tonne, its highest level since November 3. As of 0230 GMT the benchmark December iron ore traded on the Singapore Exchange had risen 0.19% to $104.6 per ton after reaching its highest level since November 4, at $104.7, earlier in the day. Analysts and traders said that Chinese steel mills adopted a low inventory strategy for raw materials over the last three years, as their margins were squeezed due to falling steel prices during a prolonged property slump. This means that mills will need to return more often to the spot market in order to replenish their cargoes, improving spot liquidity which, to an extent, acted as a cushion during a price decline. The lower domestic supply also supports ore prices. Official data released on Tuesday showed that China's run-of-mine production, which is the raw ore for pelletizing, fell by 2.9% compared to last year to 84.03 millions tons in October. Analysts cautioned, however, that the potential for further price increases in ore may be limited. They cited high portside inventories as well as forecasts of a growing supply of seaborne goods. Coking coal and coke, which are used to make steel, both fell by 2.09% and 1.23 %, respectively. The Shanghai Futures Exchange has seen a rise in most steel benchmarks. The price of rebar increased by 0.03%. Hot-rolled coils rose 0.18%. Wire rod increased 0.45%. Stainless steel was not affected. ($1 = 7,1080 Chinese Yuan) (Reporting and editing by Ronojoy Mazumdar; Amy Lv, Lewis Jackson)
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The dollar strengthens as gold falls; focus on Fed minutes and US jobs data
The dollar's strength pushed gold down on Wednesday, as investors awaited the minutes of the Federal Reserve's most recent policy meeting. They also awaited the U.S. employment report which could shed light on the Federal Reserve interest rate trajectory. As of 0201 GMT, spot gold was down by 0.2%, at $4,059 an ounce. U.S. Gold Futures for December Delivery edged down 0.1% to $4,061.60 an ounce. Tim Waterer, Chief Market Analyst at KCM Trade, said that the strong USD and uncertainty about the timing of the next Fed rate reduction has slowed gold's momentum. Gold has been a safe play for investors due to a recent bout of risk aversion, which has helped limit the decline. The dollar rose 0.1% against its competitors. Gold becomes more expensive when the dollar is stronger. The global equity markets have been in a downward spiral this week. The S&P 500 is on a 4-day losing streak due to concerns over the valuation of AI stocks. Investors are now awaiting the minutes of the Fed's most recent meeting which is due to be released in the afternoon, as well as the September non-farm employment report that will be released Thursday, after having been delayed by the recent U.S. shutdown. The economists polled expect that the report will show employers adding 50,000 jobs in the month. The number of Americans who received unemployment benefits reached a two-month-high in mid-October, according to data released on Tuesday. The U.S. Fed cut interest rates last month by 25 basis points. However, Chair Jerome Powell expressed caution about another rate reduction this year due in part to the lack data. CME Group’s FedWatch tool shows that traders now expect a rate reduction at the Fed’s meeting on December 9-10. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Other than that, silver spot was unchanged at $50.70 an ounce. Platinum fell 0.5% to 1,527.63 and palladium dropped 0.3% to 1,396.68.
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Asia markets sway as Nvidia earnings test approaches
Investors were held back by a wave of nervousness over AI valuations ahead of a quarterly earnings report from Nvidia. The Nasdaq, a tech-heavy stock, fell by 1.2% over night. It was the second consecutive day that it lost money. It is now more than 6% lower than its record high reached in late October due to valuation fears. S&P 500 and Nasdaq futures were flat during the morning Asian session. Japan's Nikkei index made a shaky 0.4% increase, while South Korea's Kospi dropped 0.8%. Nvidia is the company that sells graphics processing units, the GPUs, that are the foundation of artificial intelligence. This rally has taken stock markets all over the world to new highs, and has lifted stocks with even the slightest AI connection. It will report after the close of U.S. markets and, according to LSEG data, is expected to see a 56% increase in revenue for its August-October fiscal quarter to $54.92 Billion. Wong Kok Hoi is the founder and CEO of APS Asset Management, a Singapore-based asset management firm. JAPAN BONDS SLIDER Investors worry about the impact of President Donald Trump’s declining approval rating on fiscal spending, which could lead to inflation. This has prevented safe haven U.S. Treasuries to gain even though the mood of the market has soured. The yields fell overnight, but they were only marginally lower than the previous day. The benchmark 10-year rate was also unchanged at 4.11%. The markets are now pricing in a 42% probability of a Federal Reserve rate reduction of 25 basis points in December. This was a near certainty just a month earlier. "If, and this is a big if, the growth slows down, can we expect the same fiscal support that was provided during the pandemic, or the global financial crises, given the fact that governments' fiscal position has deteriorated significantly since then?" Rob Subbaraman, Nomura's chief economist, said: Concern over the government's spending plans have sent Japanese long-end bonds tumbling and yields reaching record highs. The 20-year auction will be closely monitored on Wednesday. Benchmark 10-year yields have reached a 17-year high of 1.765%. Bitcoin Bounces Back From Below $90,000. The mood-barometer Bitcoin has slightly recovered from its trip to a low of seven months on Tuesday, trading at $92,000. This is still 27% below the record high of October. "BTC is erasing this year's gains, and then some. Anyone who has acquired in the last 10 months will be underwater," said Justin d'Anethan. He's head of research for Arctic Digital, a crypto advisory and investment firm. "But I do not think that this is the start of a bear-market, but just a response to equity prices falling, disappointing expectations for rate cuts, and leverage being cleared out." The foreign exchange market was largely on hold as buyers gravitated towards dollars. The yen is at 155.45 dollars per yen and has reached a level where the authorities have warned about intervention. In the morning, the euro remained at $1.1582, while Australian and New Zealand dollar were slightly lower. Gold, which reached record highs along with stocks in October has also declined and suffered losses of $4,066 Wednesday. Brent crude futures dipped 35 cents to $64.51 per barrel. After China bought large quantities of U.S. soybeans, soyabeans reached a high not seen in 17 months. (Reporting from Tom Westbrook, Singapore; Editing done by Sonali Paul.)
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Prices of oil fall due to rising US inventories
The price of oil fell on Wednesday, as a report from the industry showed that crude and fuel stocks in the U.S. - the world's largest crude consumer - rose in the previous week. This reinforced the growing concern about the oversupply in the market. Brent crude futures fell 28 cents or 0.43% to $64.61 per barrel at 0200 GMT after rising 1.1% the previous session. U.S. West Texas Intermediate Crude Futures fell 24 cents or 0.4% to $60.5 per barrel after rising by 1.4% on Tuesday. Market sources reported late Tuesday that U.S. crude oil and fuel stockpiles rose during the past week. They cited American Petroleum Institute data. API, citing sources, reported that crude stocks increased by 4.45 millions barrels during the week ending November 14. Gasoline inventories rose by 1.55million barrels while distillate inventories grew by 577,000. In a report published on Wednesday by the Chinese brokerage Haitong Futures, API data showing increases in crude and fuel stocks "pointed out a weakening of demand and lowered outlook for oil price." The official U.S. Government inventory data will be released on Wednesday. Eight analysts polled ahead of the data release estimated that crude inventories would likely have fallen by approximately 600,000 barrels during the week ending November 14. The price of oil rose on Tuesday, as investors weighed the impact of U.S. sanction on Russian oil exports. Also, Ukrainian attacks on Russian export terminals and refineries have raised concerns about fuel and crude shortages. Analysts have forecast that the oil production is above current demand. This has pushed prices up. Profit margins in Europe for diesel fuel production have soared following Ukrainian attacks on Russian energy infrastructure and port infrastructure. They reached their highest level since September 2023 Tuesday. The increase in global refinery margins is causing this to happen. The Haitong Report noted that the "strong diesel market has supported oil prices, but the persistent crude supply is keeping investors cautious to chase further gains in crude." A senior White House official stated on Monday that U.S. president Donald Trump was willing to sign legislation moving through Congress adding new Russian sanctions as long as it retained his final authority to implement the law. The oil price should be supported by further secondary sanctions against Russian crude buyers. (Reporting and editing by Christian Schmollinger; Sam Li in Beijing, Lewis Jackson)
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Albanese: Australia will not veto Turkey’s COP31 Summit bid
Anthony Albanese, the Prime Minister of Australia, said that Australia would not oppose a successful Turkish bid for next year's COP31 Climate Summit. He warned, however, that a prolonged dispute over hosting rights might undermine the unity needed to assist Pacific Island nations. Australia and Turkey both submitted bids to host COP31 in 2022 and neither have withdrawn their bids. Albanese ruled out joint hosting earlier this week, stating that UN rules prohibit co-hosting for the annual summit. On Tuesday, he stated that there is "considerable concern", from many countries, Pacific nations included, about the possibility of a lack of consensus jeopardizing efforts to create a united diplomatic front on climate change. We would not try to block the selection of Turkey, or Australia, in that case. Albanese, a reporter at the time, said that they would try to make sure that Pacific countries benefited. "We're continuing our engagement... with Turkey and other countries to ensure that the Pacific interests are taken care of." A spokesperson for the Australian government said that Australia has not abandoned its bid, and they expect Turkey not to block Australia in case it wins. We would not block the bid of Turkey if it were selected. Turkey has not been selected. "Australia has overwhelming support from our peers", the spokesperson said. Australia, backed up by 18 members of the Pacific Islands Forum, has been campaigning to host COP31 along with Pacific island nations. Many Pacific States are at the forefront of rising sea levels, and have called for greater global efforts to reduce emissions and finance climate change. According to U.N. regulations, the 28 member "Western Europe and Others Group", which includes Australia and Turkey and is hosting COP31, must make a unanimous decision. COP30 in Belem Brazil is currently taking place and will end on Friday. If neither Australia or Turkey backs off, the conference will default to Bonn, Germany. Germany has stated that it does not wish to host the conference.
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Vulcan Elements, a rare earth magnet company, will build a $1 billion North Carolina facility
Vulcan Elements is a rare earth magnet manufacturer based in North Carolina. It announced on Tuesday that it would build a $1 Billion manufacturing facility to supply U.S. electronic and military customers. The facility is to be located in Benson, about 30 miles (48km) south of Raleigh. This would increase U.S. accessibility to magnets which convert power into motion in electric vehicles, mobile phones, fighter planes, and thousands of products. These magnets are the focus of a global trade dispute as China is using them to leverage negotiations with the Trump Administration. John Maslin, CEO of the company, stated that North Carolina was chosen over other states because it has a workforce devoted to engineering and offers economic incentives. The plant is located in North Carolina's "Research Triangle" near universities, military bases and laboratories. The workforce is the most important thing to us. Maslin stated that the most important thing was to find PhDs, engineers and technicians from complementary industries. The United States was once the largest magnet manufacturer in the world, but it lost that expertise during the 20th century. Maslin stated that Vulcan's technology for magnets was developed by one of its co-founders and that the company doesn't anticipate any patent issues. North Carolina estimates that the facility will boost North Carolina's economy by $2.6 Billion. Vulcan would be eligible to receive $17,6 million from the state if that were to happen. Vulcan signed an agreement with ReElement Technologies in August to supply rare earth oxides. Vulcan would have to convert the oxide into a metal first before turning it into magnets. Maslin stated that the metallization will take place in the Benson facility. He declined to state if Vulcan, or another party, would be responsible for this step. Vulcan wants to produce 10,000 tons of magnets per year, and a "significant amount" of this production will be online by 2027. This is about the same amount of magnets that MP Materials plans to produce at its Texas magnet plant. (Reporting and editing by Lincoln Feast; Ernest Scheyder)
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Vulcan Elements, a rare earth magnet company, will build a $1 billion North Carolina facility
Vulcan Elements of North Carolina, a rare earth magnet manufacturer, announced on Tuesday that it would build a $1 Billion manufacturing facility in the state to supply U.S. electronic and military customers. The facility is slated to be built in Benson, about 30 miles (48km) south of Raleigh. It is partially funded by grants from Pentagon. This would increase U.S. accessibility to magnets which convert power into motion in electric vehicles, mobile phones, fighter planes, and thousands of products. These magnets are the focus of a global trade dispute as China is using them to leverage negotiations with the Trump Administration. John Maslin, CEO of the company, stated that North Carolina was chosen over other states because it has a workforce that is focused on engineering and offers economic incentives. The plant is located in North Carolina's "Research Triangle" near universities, military bases and laboratories. The workforce is the most important thing to us. Maslin explained that the key was to find PhDs, engineers and technicians from complementary industries. There is no large magnetics workforce in the United States, because it has been hollowed-out. We need to rebuild this muscle. North Carolina estimates that the facility will boost North Carolina's economy by $2.6 Billion. Vulcan would be eligible to receive $17,6 million from the state if that were to happen. Vulcan signed an agreement with ReElement Technologies in August to supply rare earth oxides. Vulcan would have to convert the oxide into a metal first before turning it into magnets. Maslin stated that the metallization will take place in the Benson facility. He declined to state if Vulcan, or another party would be responsible for this step. Vulcan's target is to produce 10,000 tons of magnets per year, and a "significant amount" of this production will be online by 2027. This is about the same amount of magnets that MP Materials plans to produce at its Texas magnet plant. (Reporting and editing by Lincoln Feast; Ernest Scheyder).
Sources say that India's Adani Enterprises has won the approval of creditors for a $1.53 billion takeover plan of Jaiprakash Associates.
Two officials familiar with this matter claim that the creditors of India's Jaiprakash Associates have unanimously supported Adani Enterprises 135 billion rupees ($1.53billion) bid to take over the bankrupt infrastructure company. They preferred it to Vedanta.
The officials, who declined to be identified because the matter was private, said that Adani's bid, which included higher upfront payments, won out over Vedanta’s offer of 170-billion rupees.
Other bidders were Dalmia Bharat and Vedanta as well as Jindal Power, PNC Infratech, and Dalmia Bharat. Manoj Gaur, the controlling shareholder, had also made a last-minute offer, which was later withdrawn.
Jaiprakash Associates owes 550 billion rupees to its creditors. It was once India's largest conglomerate in the infrastructure sector. Last June, insolvency proceedings were launched under India's bankruptcy law. This is one of the biggest bankruptcy cases currently ongoing.
Vedanta’s bid included a five-year timeline for payment, which was significantly longer than Adani’s proposal of 1.5-2 years, according to one official. This influenced the preferences of creditors.
"Creditors voted for Adani." The committee of creditors is now going to make a final determination, which will likely confirm this result, and present it to the National Company Law Tribunal.
National Asset Reconstruction Company, which purchased Jaiprakash’s loans from State Bank of India-led lender consortium, tops the list of claimants for the ongoing resolution.
Adani Enterprises did not respond to emails sent. ($1 = 88.55350 Indian Rupees) (Reporting and editing by Sonia Cheema; Gopika Gopakumar)
(source: Reuters)