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Asian stocks fall; yen rises as Ueda's comments raise rate hike expectations
Stocks fell on Monday, after a strong November. A bout of risk-aversion gripped the markets as optimism about U.S. interest rate cuts remained unchanged. The yen strengthened as investors considered the possibility of a rate increase as early as this month. Investors were looking for clues about the timing of the next rate hike as Bank of Japan governor Kazuo Ueda spoke in Nagoya. Ueda told business leaders in an address that the central banks would weigh the "pros" and "cons" of raising interest rates at their next policy meeting. This was the strongest indication yet as to whether or not a rate hike is on the horizon for later this month. Ueda will speak again later today. His comments boosted the yen and pushed down the Nikkei by more than 1,5%. Japanese government bond yields also reached their highest level in 17 years. The yield on the two-year JGB, which is most sensitive to BOJ policy rates, increased by 2 basis points, to 1.01%. This was its highest level since June 2008. Markets have been focused on the yen in recent weeks due to uncertainty over the timing and fiscal policies of Prime Minister Sanae Takaichi. Charu Chanana is the chief investment strategist for Saxo. She said that traders interpreted Ueda’s comments as a sign that he would "almost be on board" with a rate increase this month, but any such move was unlikely. "Remember that Japan is not sprinting, but rather edging its way away from a policy of ultra-easy." Chanana stated that "that means the yen could claw back some of the ground lost on BOJ hints, and lower global yields. However, it is hard to predict the end of the yen's weakness as long as the U.S.-Japan rates gaps remain so wide." STOCKS SURRENDER AROUND NOVEMBER STRONG Investors shrugged off fears of an AI bubble at the end of November. Traders were now looking for catalysts that would continue upward momentum. This week, they will be focusing on economic data. U.S. Stock Futures fell in Asian Hours, with Nasdaq and S&P 500 down 0.8% each. Bitcoin and ether, two crypto currencies, both fell more than 5%. This highlights the cooling of risk appetite. Hong Kong's Hang Seng rose by more than 1% and pushed Asian stocks higher. MSCI's broadest Asia-Pacific share index outside Japan rose 0.1%. It has gained over 23% in the past year, and is on track for its best gain since 2017. Chanana from Saxo said that there was no single factor driving the current risk-off mood, but rather a number of factors, such as rising JGB yields, and falling cryptocurrencies. Hong Kong stocks have beaten the regional trend because weak China PMIs revived hopes for stimulus. Investors will focus on U.S. releases this week, which cover consumer sentiment and manufacturing activity. Matt Simpson, senior analyst at StoneX, in Brisbane, says that if incoming data signals a slowdown, but not a recession, then the sentiment will probably remain positive, even if the U.S. Dollar weakens, as it usually does during this time of the year. The dollar index (which measures the U.S. Dollar against six rival currencies) was 99.414, which is little changed from the previous day. The index is down 8% for the year, with most of the losses occurring in the first half. Focus on Consumer Spending Investors are looking for clues about what the Fed is going to do at its meeting next week by listening to the comments of Federal Reserve Chair Jerome Powell. After a series of dovish remarks from policymakers over the past few days, traders are pricing in a 87% chance that a cut will occur. As data from Black Friday, Cyber Monday and other retail sales events begins to trickle in, attention will be paid to holiday consumer spending. Adobe Analytics, a company that tracks the visits made by shoppers to online retail sites, reports that U.S. consumers spent $11.8 billion on Black Friday online, a record amount. This is up 9.1% since 2024. Oil prices increased in commodities after OPEC+ decided to maintain the same oil production levels for the first three months of 2026. The group is reducing its efforts to regain market shares amid fears of a looming glut of supply. Brent crude futures rose 1% to $63,03 per barrel. U.S. West Texas Intermediate Crude was up 0.99% at $59.16 per barrel. (Reporting and editing by Muralikumar Anantharaman, Kate Mayberry, and Ankur Banerjee from Singapore)
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Demand for medium-grade cargoes drives iron ore prices higher
Iron ore prices rose for the fourth consecutive session on Monday. The gains were limited by blast furnace maintenance at year's end. By 0320 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange rose by 0.88% to $799 yuan (US$112.95) per metric ton. The benchmark January Iron Ore at the Singapore Exchange rose by 0.88% to $103.1 per ton. According to Mysteel, China's blast furnace steel production edged down last week, as some mills started annual maintenance. Capacity utilisation was also down by 0.6 percentage points. Mysteel reported that despite weakening fundamentals in the iron ore market, prices were still supported by a strong demand for medium grade ores. Everbright Futures, a broker, said that the supply of iron ore from overseas is expected to continue to recover in December. However, weak blast furnace margins, as well as heavier maintenance at year's end, will lead to further decreases in pig-iron production. The European Union has called on the United States to remove its 50% tariff on steel and aluminum it imposed in August on 407 "derivative" products, such as motorcycles and wind turbines. If not, the EU will retain its tariffs until a solution can be found. SteelHome data shows that the total stockpiles in China of iron ore dropped by 0.42% on a week-on-week basis to 139 million tonnes as of November 28. China announced plans on Friday to expand the market for public real estate trusts to include commercial property, following the collapse of developer China Vanke’s bonds and shares to record lows in the previous week. This sparked fears about the impact the crash could have on the wider property sector. Coking coal and coke, which are used to make steel, have both gained in price, rising by 1.88% and 2.03 percent, respectively. The benchmark steel prices on the Shanghai Futures Exchange have increased. The Shanghai Futures Exchange saw a rise in steel benchmarks. ($1 = 7.0738 Chinese yuan) (Reporting by Lucas Liew; Editing by Subhranshu Sahu)
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Copper reaches record highs as Chinese smelters cut production
Copper reached new highs on Monday, after the top Chinese smelters accepted a plan for reducing output by 2026. Codelco also offered premiums that were record-highs. As of 0230 GMT the most active copper contract at the Shanghai Futures Exchange soared by 2.08%, to 89.020 yuan per metric tonne ($12,583.40), after reaching a record high of 89.650 yuan. After setting a record on Friday, the benchmark three-month copper price on the London Metal Exchange also rose to a new high of $11,294.5 per ton. As of 0230 GMT, the London copper contract had risen 0.24% to $10,216 per ton. The China Smelters Purchase Team, a group of China's largest copper smelters said Friday that their members had agreed to reduce production by over 10% in 2026 to combat negative fees for copper concentrate processing. The bullish headlines of last week's Asia Copper Week in Shanghai have also prompted traders to take positions. Codelco in Chile, the top copper producer in the world, wanted to increase copper premiums for Chinese buyers to as much as $350 per ton. Many thought this level was no longer relevant to Chinese participants and that there would be little impact on the supply-demand dynamics of copper locally. Sources say that the Codelco premiums were designed to allow those with access to Comex to benefit from arbitrage between Comex and LME amid tariff uncertainty. Copper also reached new heights due to the optimism that an interest rate reduction by the Federal Reserve will occur in December. This is because increased economic activity is linked with increased demand for copper. The U.S. dollar continued to weaken, supporting markets by making commodities that are traded in greenbacks cheaper for investors who use other currencies. Aluminium, zinc, nickel, tin, and lead were all up in price. Nickel gained 0.34% and tin rose 1.08 %. London lead was also little changed. Monday, December 1, DATA/EVENTS, (GMT) 0850 France HCOB Manufacturing Mfg. PMI, Nov 0855 Germany HCOB Manufacturing Mfg. PMI, Nov 0900 EU HCOB Manufacturing Final PMI, Nov 0930 UK S&P Global Manufacturing PMI, Nov 1445 US S&P Global Manufacturing Final, ISM Manufacturing Final PMI, Nov
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Venezuelan oil prices rise on OPEC+ plan to increase output
The oil price rose by as much as 1.5 percent on Monday, after OPEC+ members reaffirmed a commitment to halt production increases during the first quarter next year. Also, the possibility of U.S. sanctions against Venezuelan oil producers unnerved the market. Brent crude futures subsequently pared their gains, and were up by 0.98% or $62.99 a barrel at 0052 GMT. U.S. West Texas Intermediate Crude was at $59.12 up 57 cents or 0.99%. Early November, the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to take a pause. They feared a glut of supply. OPEC+ stated that after a Sunday meeting, it "reaffirmed its importance to adopt a cautious approach while retaining the full flexibility of continuing pausing or reversing the additional voluntary production adjustment". Vivek Dhar, an analyst at Commonwealth Bank of Australia, said that the outcome of Sunday was widely expected given the previous decision. Dhar wrote that "market worries about a growing glut on global oil markets likely played a part in the OPEC+'s decision." The move by U.S. president Donald Trump to close Venezuelan's airspace has created new uncertainty on the oil market, given that the South American nation of Venezuela is a major producer. Analysts at ING wrote in a note to clients that "adding more support to the Venezuelan crude oil market increases the supply risk after President Trump announced he was considering closing the airspace above the country". Trump said on Sunday that he spoke with Venezuelan President Nicolas Maduro, but he did not provide details. He also did not elaborate on his comments about the airspace or whether they indicated military strikes against Venezuela. Trump said, "Don't take anything at face value." In Europe, the increasing uncertainty surrounding a Russia-Ukraine deal has reversed the bearish sentiment from the last two weeks when it looked like a deal was closer. This raised the possibility of large quantities of Russian oil currently sanctioned flooding the market. Ukraine's military said via social media that it hit a Russian refinery and the Beriev military aircraft plant in Rostov Region on Saturday. Separately two Ukrainian naval drones struck two sanctioned oil tankers heading for a Russian port in the Black Sea, to pick up crude oil to sell abroad. Officials from Ukraine and the United States met in Florida, the U.S. State on Sunday for a discussion about the war. Marco Rubio, the Secretary of the U.S. Department of State called the meeting "very productive". He added that more efforts are needed to bring an end to the war which is now in its third year. Helen Clark, Chris Reese, and Christopher Cushing edited the report.
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Asian stocks rise on Fed rate cut optimism; yen firm
Asian stocks started the month of December 2025 steadily on Monday as optimism about a rate cut in the United States lifted risk sentiment before economic data. The yen strengthened, with investors weighing up the possibility of a rate hike near-term. Investors are analyzing the comments of Bank of Japan Governor Kazuo Ueda in Nagoya to determine when the next rate hike will be. Ueda told business leaders in an address that the central banks will weigh the "pros" and "cons" of increasing interest rates during its next policy meeting, which is scheduled for December. MSCI's broadest Asia-Pacific share index outside Japan, which includes Japan, was unchanged at 703,19. It has gained 23.5% this year, and is on track to achieve its best annual gains since 2017. Japan's Nikkei dropped 1.3% in the early trading. The U.S. futures were lower during Asian hours. Hong Kong's Hang Seng, however, rose by over 1%, pushing Asian stocks to higher levels. Chris Weston is the head of research for Pepperstone. He said, "The risk bulls are feeling good about their directional bias as they roll into December." As the clouds of concern that hung over the markets from mid-November onwards slowly dissipate they give way new emotions, namely the fear of missing out and the risk of falling short of benchmark targets. This week, investors will focus on U.S. economic data that covers manufacturing and service activity, as well as consumer sentiment. Matt Simpson, senior analyst at StoneX, Brisbane, said: "With the U.S. Data void being finally filled and an economic calendar that is busy, December appears to be a happy month for volatility hunters." Simpson said that if the data indicate a slowdown, but not a recession, then the sentiment is likely to remain buoyant as the U.S. Dollar weakens like it usually does during this time of the year. The dollar index (which measures the U.S. Dollar against six rival currencies) was 99.414, which is little changed from the previous day. The index is down 8% for the year, with most of the losses occurring in the first half. Focus on Consumer Spending Investors are looking for clues about what the Fed is going to do in the next few days by listening to the comments of Federal Reserve Chair Jerome Powell. Investors have been convinced by the dovish remarks of policymakers that a rate reduction is imminent. Traders have priced in an 87% probability of a rate cut in the next month. As data from Black Friday, Cyber Monday and other retail sales events start to trickle in, early indications of holiday consumer spending will be a focus. Adobe Analytics, a company that tracks the 1 trillion visits made by shoppers to online retail sites, reports that U.S. consumers spent $11.8 billion on Black Friday. This is a record amount. The yen has been the focus of the market for the past few weeks due to uncertainty over the timing of the next rate hike and concerns over the fiscal policies implemented by Prime Minister Sanae Takayichi. Japan's Finance Minister said that the recent erratic swings on the foreign exchange markets and the rapid weakening of the yen are "clearly driven by fundamentals". This is yet another verbal warning which has so far not helped to slow down the yen’s decline. Oil prices increased after OPEC+ decided to keep oil production levels the same for the first three months of 2026. The group has slowed its efforts to regain market shares amid fears of a looming glut of supply. Brent crude futures rose 1% to $63.03 per barrel. U.S. West Texas Intermediate Crude was up 0.99% at $59.16 per barrel. (Reporting and editing by Muralikumar Anantharaman in Singapore.
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ASIA COPPER WOMEN-Codelco offers US copper clients at record premiums of over $500 per ton above LME prices
Two sources familiar with this matter claim that Chile's state owned copper producer offered to sell copper to U.S. clients with contracts based upon London Metal Exchange copper price at a record premium of over $500 per metric ton. The premium is added to the benchmark LME price and reflects fundamentals of demand and supply. The premium also covers transport costs and taxes. Codelco didn't immediately respond to our request for a comment. The LME copper price reached a record high of $11,200 per ton on the 29th October due to expectations that shortages would occur, partly as a result of disruptions such as accidents at mines located in Indonesia and Chile. On Comex, the copper price hit a record of $5.8950 per lb, or $12,996 per ton, on the 24th of July, ahead of an announcement about whether the United States will impose tariffs against imports of this metal, which is used in construction and power industries. The 50% tariffs on imported copper that went into effect August 1 were eventually lifted for refined copper. The copper prices on Comex are now lower as the levies on U.S. imports of copper continue to be reviewed. Howard Lutnick, the Commerce Secretary, is expected to give Trump an update on the domestic copper market by June 2026. Amy Lv and Lewis Jackson reported; Tomaszjanowski edited.
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US makes progress in talks with Ukraine after meeting in Florida, but still more work is needed to reach a deal
U.S. officials and Ukrainian officials had what both sides described as productive talks about a Russia-Peace Deal on Sunday. Secretary of State Marco Rubio expressed optimism about the progress made despite challenges in ending the war that has lasted more than three years. Rubio met a Ukrainian delegation headed by a newly appointed chief negotiator at his home in Florida. He said the talks were to help Ukraine maintain its sovereignty and independence. Rubio, after the end of the talks, told reporters that "we continue to be realistic about how difficult this situation is but optimistic." "It's about securing Ukraine’s future. A future we hope will more prosperous than ever before." Rubio told reporters after the talks concluded. These discussions followed a new round of negotiations which began with an updated U.S. peace blueprint. Critics claimed that the plan favored Russia initially, as it was Russia who started the conflict in 2022 with an invasion of Ukraine. Steve Witkoff, the special envoy, and Jared Kushner - son-in law of U.S. president Donald Trump - were also in attendance to represent the U.S. Witkoff will leave for Moscow on Monday, where he'll meet with Russian counterparts this week. There's still more work to do. Rubio called the situation "difficult". There are many moving parts and there is another party involved in this... which will be part of the equation later this week when Mr. Witkoff goes to Moscow. Trump has expressed frustration over not being able end the war. He promised as a candidate for president to end the war in a day. Trump's team has pressed Ukraine to make concessions, including a territorial transfer to Russia. On Sunday, the Ukrainian side changed its leadership. After the Friday resignation of Andriy Yeromak, the previous leader of the team, who was the chief of staff of Ukrainian President Volodymyr Zelenskiy, due to a scandal in Ukraine, a new chief negotiator led the talks for Kyiv, Rustem Umerov. Trump said on Air Force One that Ukraine had "some difficult little problems" referring to the scandal of corruption, which was "not helpful". He reiterated his belief that both Russia, and Ukraine, wanted to end this war. Umerov thanked officials in the United States for their support. He said, "U.S. hears us, U.S. supports us, U.S. walks beside us" in English, as the negotiations started. He declared the meeting productive afterward. Umerov stated that "we discussed all important issues for Ukraine and the Ukrainian people, with U.S. being super supportive." The Sunday talks were held near Miami, at Shell Bay, a private club developed by Witkoff’s real estate company. Zelenskiy said that he expected results of previous meetings to be "hammered" out on Sunday. Ukraine made a counter-offer in Geneva to the proposals that U.S. Secretary Dan Driscoll had presented to Kyiv leaders two weeks earlier. The Ukrainian leadership is trying to push back against a Russian-friendly regime as Russian forces advance along the frontlines of the war, despite a political crisis at home sparked by an investigation into major corruption in the energy sector. Zelenskiy warned Ukrainians last week that their country was in its most difficult situation yet, but vowed to not make a bad bargain. Sergiy Kyslytsya (also part of the delegation) wrote from Miami, "There's an inherent difficulty in forecasting, because the atmosphere is a chaos system where small differences can lead to big outcomes." Jeff Mason reported from Hallandale Beach in Florida. Additional reporting was provided by Jasper Ward and Dan Peleschuk; editing by Chizu Nomiyama and Sergio Non.
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The Information reports that Databricks is in discussions to raise capital valued at $134 billion.
The Information reported Sunday that Databricks, a data analytics company, is in discussions to raise $5 billion. This would be at a valuation $134 billion. That's roughly 32 times the expected sales for this year of $4.1 billion. Investor documents and someone familiar with the situation were cited. Could not verify the report immediately. Databricks declined comment. The Information reported that Databricks increased its sales forecasts from $3.8 billion in September to $4 billion before slightly revising them upwards again. It expects sales growth of 55% in this year. The Information reported that the company told investors at the same time that its gross margin was falling faster than expected, from 77% to 74%, compared to a previous plan of 77%. This is due to the increased usage of AI products. Databricks was founded in 2013 and offers a platform to help users ingest data, analyze it and create AI applications. The company is viewed by many as the leading candidate for going public, and it has received numerous inquiries from investors. According to its website, Databricks serves more than 20,000 clients, including Block, the payments company, and Shell, a major energy company, as well as Rivian, a maker of electric vehicles. (Reporting and editing by Edmund Klamann, Diane Craft and Disha Mishra from Bengaluru)
The dollar is lower and the risk-off mood in stocks has led to a six-week gold high.
On Monday, gold prices reached a six-week-high as investors reacted to a possible rate cut in the United States later this month. Silver also hit a record-high.
Gold spot rose by 0.2% at 0401 GMT to $4240.54 an ounce after reaching its highest level since October 21. U.S. Gold Futures for December Delivery gained 0.5%, to $4276.00.
Silver rose 2%, to 57.48 dollars per ounce. It had previously reached a record high of 57.86 dollars.
Holders of other currencies can now buy gold at a lower price than before, as the U.S. Dollar has fallen to its lowest level in two weeks.
S&P Futures are down 0.8%, in line with the sell-off in major crypto currencies. This has created a positive feedback loop for gold, which is a safe-haven asset in today's thinly traded session.
In Asian trading, U.S. stocks futures fell, and among cryptocurrencies bitcoin dropped 3.6% to $87.881.82 while ether dropped 5% at $2,871.59.
Recent dovish comments from Federal Reserve Governor Christopher Waller, and New York Fed president John Williams, along with softer U.S. economic data, have strengthened expectations that the Federal Reserve policy will be eased in December. According to CME's FedWatch, futures indicate an 87% probability of a rate reduction.
Kevin Hassett is a White House economist who has been tipped as the frontrunner to become Fed chair. He said that he would gladly accept this position if President Donald Trump were to nominate him. Hassett, like Trump, believes that rates should be lowered.
The markets are now awaiting the core U.S. The Fed will be looking at Friday's Personal Consumption Spending figures for more clues about its policy direction.
Non-yielding gold tends to be supported by lower borrowing costs.
Wong said that silver prices rose due to the thin liquidity created by the CME's outage last Thursday, and not because of any fundamental factors.
Palladium rose 2.1%, to $1 482,45, and platinum gained 1.3%, to $1 694,70. (Reporting by Ishaan Arora in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
(source: Reuters)