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European shares are down as miners and luxury stocks weigh.
The European share market was subdued Friday due to weakness in mining and luxury stocks. This marked a gloomy end to a week that had been dominated by?the beginning of a busy earning season along with geopolitical concerns. The pan-European STOXX 600 index finished at 614.38, while the luxury index fell 3.2%. This was its largest daily drop since early October. Richemont, one of the biggest losers, fell 5.4%, after BofA Global Research cut its recommendation for the Swiss jewellery firm to neutral from buy, and advised investors to "wait", citing inflated valuations following a recent rally. "European stocks are not cheap, but neither are they expensive." Michael Field, Morningstar's chief European equity analyst, said that the margin of safety investors previously had is no longer there. The STOXX 600 still posted its fifth consecutive weekly gain. This is its longest winning streak, dating back to May 2025. As prices of precious metals, crude oil and other safe-haven commodities soared in recent days due to geopolitical tensions in Venezuela and Iran, the index reached multiple records. These tensions seemed to have abated on Friday, with mining stocks falling 1.9%. Richard Flax is the chief investment officer at Moneyfarm. Defence stocks gained 1% and helped to limit the losses in the STOXX Index. Analysts said that the weight-loss drug Wegovy had made an "encouraging start" after its launch in this month. The healthcare index rose 0.6%. The British health regulator has approved a higher dosage of Wegovy to treat obesity patients, and Berenberg has also increased its price target for the stock. This week, we've seen a variety of earnings reports from companies like BP, BE Semiconductor and?Richemont. According to LSEG, fourth quarter earnings are expected to drop 4.1% compared to a year ago. Consumer cyclicals will be the hardest hit. HSBC shares dipped 0.4%. The lender announced that it would be undertaking a strategic review to streamline its global operations. The Norwegian defence equipment manufacturer's shares rose 9.5% on Friday after two brokerages raised their price targets. Reporting by Niket Nishant, Avinash P, and Johann M Cherian from Bengaluru. Editing by Mrigank Dahniwala and Devika Syamnath.
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Chip stocks lift S&P 500 in volatile trading ahead of long weekend
The S&P?500 edged up in choppy trades ahead of the long holiday weekend on Friday. Wall Street was looking to wrap up a week of turbulence that marked the?start?of fourth-quarter earnings. Micron and Seagate Technology, which manufacture memory chips, gained 5,6% and 2,2% respectively in 2025. This is a continuation of their explosive gains from 2025. After President Donald Trump suggested that he might want to keep Kevin Hassett as his economic adviser, the Treasury yields increased. This lowered market expectations that Hassett will succeed Fed chair Jerome Powell. The odds of Kevin Warsh, a former Fed governor, becoming the next Fed Chair rose from 44% to 57% on Polymarket. Hassett, a prominent voice for lower interest rates, was the top contender for the Fed’s top position. This week, investors have also been dealing with concerns about the Federal Reserve's independence following Powell U.S. prosecutors threatened to indict. Hassett, however, Play down The probe said he was expecting "nothing" to be seen. John Belton said that the administration appears to be reversing some of its (Fed) rhetoric. He added that any attempts to undermine Jerome Powell "may appear to backfire." Even after S&P 500 & Dow closed at 'new record levels on Monday, U.S. stock markets were lagging behind with modest weekly losses. The 'fallout' of a proposed cap of 10% on credit card rates for a year weighed down on the shares and markets, despite good quarterly results from major U.S. Banks. The financial sector is heading for its worst week since October. At 11:42 am. The Dow Jones Industrial Average gained 5.48 points or 0.01% to 49,447.92. The S&P 500 rose 10.29 points or 0.15% to 6,954.76. And the Nasdaq Composite increased 40.78 or 0.17% to 23,570.80. The stock market was closed on Monday, Martin Luther King Jr. Day, so investors were hesitant to make big bets before the long weekend. The Defensive Sectors Lead Weekly Gains The top three sectors for weekly gains were consumer staples, utilities and real estate - all considered defensive. This week, money shifted from some of the largest tech companies to more undervalued sectors. The Russell 2000 small-cap index is expected to gain 2% this week and the S&P600 small-cap index by 2%. Next week, the earnings season will be in full swing with major companies like Netflix, Johnson & Johnson, and Intel reporting their results. New data shows that U.S. manufacturing production increased unexpectedly in December. Fed official Michelle Bowman stated that a fragile employment market could quickly deteriorate, and the U.S. Central Bank should be prepared to reduce interest rates again in case it is needed. After a report stated that U.S. States experiencing a rapid increase in data center construction would sign an agreement with the Trump administration to curb rising energy costs, independent power producers fell. Talen Energy fell by 6% while Constellation Energy, Vistra, and Vistra Energy all dropped by 5% or 9%. On the NYSE, declining issues outnumbered advancing ones by a ratio of 1.44 to 1 and by a ratio of 1.17 to 1 on the Nasdaq. The S&P 500 recorded 23 new 52-week lows and six new highs. Meanwhile, the Nasdaq Composite registered 46 new highs with 28 new lows. Reporting by Medha and Pranav Kashyap from Bengaluru, and editing by Shinjini Ganuli and Maju Sam
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TSX drops as mining and tech stocks fall
Canada's main index of stocks fell on Friday as the mining sector suffered from a cooling in metal prices, and technology shares also retreated. However, the benchmark index was still on course for its second consecutive week of gains. As of 10:54 a.m., the S&P/TSX composite index was down by 0.3% to 32,941.12?points. ET. Materials index, which includes metal miner companies, fell 1.7% after gold, silver, and copper prices dropped from record highs. Endeavour Silver The TSX fell by the most amount of any other stock. Blackline Safety, a safety technology company, has seen its share of the information technology sector drop by 1.9% Los Angeles After a day, the rate of 4.3% is calculated. Reporting fourth-quarter results. Energy shares gained?0.8% due to rising oil prices, helping offset some losses. Crude gained nearly 1% despite the decreasing likelihood of an American military strike against Iran. MDA Space, a space technology company, was the standout. Its stock jumped 13.6% when Morgan Stanley upgraded it to "overweight" (from "equal weight") This week, energy is expected to be the best performing sector, followed by material, despite Friday's losses. Canada and China have also struck an initial trade deal Tariffs for electric vehicles and canola will be slashed. Both nations promise to?dismantle barriers and forge new strategic ties. "I am not sure that this will move the?markets." "Canola is not really produced by publicly traded companies, even though it's a big cash crop," said Brian Madden of First Avenue Investment Counsel. "Chinese sales of electric vehicles in Canada will probably not have a major impact on stock markets." Investors are also awaiting the release of domestic inflation figures for December, due Monday.
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Kyiv only has half the electricity needed, says mayor
Vitali Klitschko, the mayor of Kyiv, said that Ukraine's capital Kyiv only has about?half as much electricity as it needs?as it is facing its worst wartime energy crisis after waves of Russian attacks against its infrastructure. Klitschko stated that Kyiv is one of Eastern Europe’s largest cities and requires 1,700 Megawatts to power its services for 3.6 million residents. Klitschko stated that the current energy crisis is the greatest challenge the capital has faced in the almost?four years following the Russian invasion of February 2022. In an interview at his office in the heart of Kyiv, Klitschko, the former heavyweight boxing world champion, stated that it was the first time in the history of the city when, during such severe frosts and power shortages, the majority of the city had no heating. Klitschko said that Ukraine's international partner had sent in more generators, and he added that repair teams were working around the clock to restore heat after a russian strike last week cut off supplies?to 6,000 apartment blocks. He said that about 100 buildings are still without heating. Ukraine declared an emergency energy situation this week, as its grid collapsed under Russian bombings, bitter cold temperatures and wartime damage. (Reporting and editing by Daniel Flynn; Olena Hartmash)
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Kyiv only has half the electricity needed, says mayor
Vitali Klitschko, the mayor of Kyiv in Ukraine's capital, said that Kyiv only has half the electricity it needs as it is facing its worst?wartime energy crises following waves of?Russian attacks against its infrastructure. Klitschko stated that Kyiv is one of the largest cities in Eastern Europe and requires 1,700 Megawatts per day of electricity to run its services. Klitschko stated that the current energy crisis is the greatest challenge facing the capital since the Russian invasion of February 2022. In an interview at his office in the heart of Kyiv, Klitschko said, "This is the first time ever in the history of our city that we have had such severe frosts and a shortage of electricity." Klitschko stated that Ukraine's international partners had sent in more generators, and repair teams?worked around the clock to restore heat after a Russian strike knocked out supply to 6,000 apartment buildings last week. He said that about 100 buildings are still without heating. Ukraine declared an emergency energy situation this week, as its grid collapsed under Russian bombings, bitter cold temperatures, and wartime damage. (Reporting and editing by Daniel Flynn; Olena Harmash)
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Wall Street soars at the end of a choppy week as chipmakers make a jump
Wall Street's major indexes were higher on Friday, as chipmakers took the lead in a volatile and busy week. It was also the beginning of the fourth quarter earnings season. Memory chip makers led the gains. Micron, Seagate Technology, and SanDisk all saw their shares rise between?2% to 7%. This is a continuation of their explosive growth in 2025. The iShares Semiconductor ETF rose 2.1% on the Friday, extending its rally of nearly 12% so far this season, which has easily beaten Nasdaq's 1.2% gain. This shows investor confidence in AI-driven chip demand. Even after S&P 500 and Dow set new records on Monday, U.S. stock prices were limping towards modest weekly losses. The S&P is now just 30 points short of the 7,000-point mark - an?mark analysts have deemed as a possible pocket of technical resistance. The market was weighed down by concerns over the impact of a proposed cap on credit card rates for a year at 10%, despite good quarterly results from major U.S. Banks. "Banks have set up this week to show that consumers are still spending money and there is nothing to worry about. Jason Barsema of Halo Investing said that they will watch to see if this translates into increased consumption. The markets will be closed on Monday in honor of Martin Luther King Jr. Day. However, the earnings season will pick up next week, with Netflix, Johnson & Johnson, and Intel all due to release their results. 9:35 am The Dow Jones Industrial Average gained 67.35, or 0.14 %, to 49.509.79. The S&P 500 rose 18.67, or 0.27 %, to 6,963.14, and the Nasdaq Composite added 114.46, or 0.49 %, to 23644.48. The Defensive Sectors Lead Weekly Gains The top three sectors for weekly gains were consumer staples, utilities and real estate - all considered to be defensive sectors. Financials, on the other hand, plummeted and were heading for their worst weekly performance since October. This defensive move comes at a time when uncertainty has been raised about the Federal Reserve's independent after Jerome Powell, the chair of the Federal Reserve, said that the Justice Department had opened a criminal probe into him on Sunday. Kevin Hassett, White House advisor, tried to calm the controversy by dismissing the investigation and saying that he was expecting "nothing here." This week, the S&P 600 index for mid-cap stocks and the Russell 2000 index for small-cap stocks both saw gains of about 2%. A series of important economic data has reinforced the bets on a Fed rate pause. The remarks of Fed Governors Michelle Bowman & Philip Jefferson will provide a 'clue on voting members thinking before the U.S. Central Bank enters its blackout phase ahead of its policy meeting scheduled for January 27-28. State Street, among other stocks fell 2.7% following a decline in the fourth-quarter profits. After a report stated that U.S. States experiencing a rapid increase in data center construction would sign an agreement to reduce rising electricity prices with the Trump Administration, independent power producers fell. Talen Energy fell 9.6% while Constellation Energy, Vistra and Vistra each dropped over 7%. On the NYSE, declining issues outnumbered advancing ones by a ratio of 1.44 to 1 and by a ratio of 1.17 to 1 on the Nasdaq. The S&P 500 recorded 23 new 52-week lows and six new highs. Meanwhile, the Nasdaq Composite registered 46 new highs with 28 new lows. Medha Singh in Bengaluru and Pranav Kashyap, Shinjini Gianguli and Maju Sam edited the article.
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Caltagirone, a major MPS investor, says that there was no conflict with Lovaglio as CEO
Grouppo Caltagirone is a major shareholder in Monte Dei Paschi di Siena. It said that speculations about a conflict with?CEO Luigi Lovaglio were misplaced. The board was simply discussing the bank's governance and strategy. Lovaglio, 70, last year led Monte dei Paschi (MPS) to acquire bigger rival Mediobanca as consolidation swept Italy's banking sector. This deal increased the influence of two key investors: Francesco Gaetano Caltagirone, the construction tycoon and Delfin Holdings, the holding company of Del Vecchio Family. Both are major MPS investors, and they also own stakes in Italy's biggest insurer Generali. Bankers believe that with MPS at the core of Italy's finance system, the future of the sector will depend on the decisions made about its leadership. Lovaglio wants a new mandate from the MPS Board?in April. However, several sources have said in recent months that the situation is complicated by a probe being conducted by the Milan prosecutors into the Mediobanca case. MPS has given its full support to the CEO who is being investigated along with Caltagirone Chairman Francesco Milleri and Delfin Chairman Francesco Milleri over an alleged secret agreement to control Mediobanca through MPS. The three parties have all denied wrongdoing, and the Italian market regulator has ruled out an unreported agreement. Grouppo Caltagirone commented on Friday, in response to a Financial Times article about a conflict between MPS CEO and Caltagirone. They said that a debate within the company over a strategic planning?requested by regulators? and board renewal shouldn't be interpreted as a reflection of the role played by a large shareholder. It said that "linking this boardroom conversation to the role played by a major shareholder or Mediobanca’s stake in Generali is an opportunistic interpretation." Delfin, which backed Lovaglio on Friday, said it was in support of the bank's management and that it had no plans to sell its MPS shares at this time. Delfin holds 17.5% and Caltagirone 10% of MPS. They joined as Italy, who rescued MPS by acquiring a 68% share in 2017, reduced its holding to below 5%. Alessandro Caltagirone, son of Caltagirone and Elena De Simone - a director for Caltagirone SpA - were appointed to the board after the Treasury reduced their stake. Reporting by Valentina Z and Giuseppe Fonte. Jane Merriman edited the article.
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Andy Home: Tin price bubble is a source of trouble and toil for the global industry
London and Shanghai markets have seen a surge in tin prices, which are now at all-time highs. According to the China Nonferrous Metals Industry Association, a state-backed organization, this rally is "unreasonable". Last month, it warned all parties to "avoid following trends blindly". Beijing's warning hasn't stopped Chinese investors from chasing prices higher and higher. On Thursday, the volume of trading in the tin contract at Shanghai Futures Exchange (ShFE), exceeded one million metric tons. This is more than double the annual global physical consumption. Tin is in a clear speculative boom, and it will burst as soon as the trend changes. The mismatch between physical market size and interest in investing foreshadows future volatility. Not just for tin. The current tidal waves of investor purchases washing through the industrial-metals sector may be a sign for other metal supply chain. EXUBERANCE IRRATIONALE Since several months, the London Metal Exchange (LME), tin contract has been bubbling. However, this week it exploded as Chinese investors brought with them their financial power to the rally. On Tuesday, LME's three-month metal surpassed the previous price peak of March 2022 at $51,000 per ton and soared to $54,760 by Wednesday. It is the lack of supply that drives this narrative. Tin's structural issues with supply are well-known. Global mine production is concentrated in a few countries, and heavily dependent on frontier jurisdictions like the Democratic Republic of Congo or the semi-autonomous Wa State of Myanmar. This rally is not at the right time. The tin supply situation has improved in recent months. Since the M23 insurgency was in danger of overrunning the Congo's mine Bisie a year earlier, the threat has diminished. Alphamin Resources, the mine operator, has raised its annual production forecast after a strong performance in the third quarter. After a long absence, the giant Man Maw Mine in Myanmar has also begun to show signs of renewed productivity. China imported 7,190 tonnes of tin-based raw materials from Myanmar in November. This was the highest monthly total since August 2024. According to the Indonesia Tin Exporters Association, Indonesia will continue to crackdown on illegal mining, but the official sector production quotas are expected to increase from 53,000 tones in 2025 to 60 000 tons in 2026. There is no shortage of refined tin at the moment. Metal producers and traders have contributed significant quantities of metal to the price rally. The combined stocks of the LME and ShFE rose from 11,000 tones at the end October to more than 19,000 tons. Inventory was less than 5,000 tons at the previous peak of 2022. When China's metals regulator describes the tin price's recent surge as "unreasonable", they may be right. LIQUIDITY MISMATCH Paraphrasing economist John Maynard Keynes: a market may remain "unreasonable", longer than you are able to remain solvent. Investors can have a large impact on the price, especially if you're dealing with a small-scale market like tin. Shanghai is a clear example of this. China's commodities markets have been characterized by such speculative booms for a long time. It was alumina last year. Chinese authorities are in a well-honed firefighting mode. They have raised trading margins and, in particular, the cost of intraday transactions, while limiting positions for non-members. Tin's story of limited supply and increasing use as a semiconductor-solder has not only attracted the Chinese. Over the past few years, the number of funds participating in the London Tin Market has steadily increased. The investment fund's long position reached a record high of 2,887 contracts in late 2021 or early 2022 when tin prices were at their highest. This is equivalent to 14,435 tonnes. The investment fund long position reached a record of 5,753 contracts or 28,765 tonnes at one point last month. The liquidity rush has increased volatility in a market that is known for its wild price swings. Futures frenzy is causing real problems in the supply chain, as consumers and producers struggle to cover their margins. When does price risk take precedence over liquidity risk? How long can you "remain solvent"? FUNDS AND FUNDAMENTALS Tin was not a popular metal a few years back. Most fund managers did not invest in tin because the market was too small both for physical volume and futures trading. This is changing, as the world begins to realize the centrality of tin in the Internet of Things. No circuit boards, no internet. In our hyper-connected, connected world, there is very little more. The result is that too much money floods a market unprepared to handle it. CNMIA is the voice of the world's biggest refined tin producers and users. It is very clear on the dangers posed to the present exuberance. The rapid price rise driven by funds has diverged from industry fundamentals and magnified market risks, harming the global chain of industry. Tin's dramatic story may be a timely reminder for other metals in demand, such as copper, as fund money floods the industrial metals sector in search of other hard assets than gold and silver. Andy Home is an author and columnist. The opinions expressed in this column are Andy Home's. Open Interest (ROI), a data-driven, thought-provoking commentary on the markets and finance. Follow ROI on LinkedIn, X and X.
Unexpectedly, US manufacturing output increased in December
U.S. Factory Production unexpectedly increased in December amid a surge of primary metals production that offset a decline in motor vehicle assembly plants. However, activity contracted in the 4th?quarter due to challenges from import tariffs.
The Federal Reserve announced on Friday that manufacturing?output? rose 0.2% in December after a 0.3% increase, which was upwardly revised. Economists surveyed by forecasted that production in the 10.1% sector would fall 0.2%, after an unchanged reading for November.
In December, the production at factories grew by 2.0% year-over-year. It dropped by 0.7% annually in the fourth quarter, after increasing at a 2.8% rate in the third. The manufacturing sector has been hit by President Donald Trump’s import duties. He has justified them as necessary to restore the country's long-diminished industrial base.
The rest of the manufacturing sector has been struggling, losing 68,000 jobs by 2025.
Economists argue that a manufacturing revival is impossible due to structural problems, such as a shortage of workers. The tax cuts of Trump were expected to have a positive impact on the economy this year.
Production of primary metals grew by 2.4%. Electrical equipment, appliances, and components were all up by a significant amount. Miscellaneous transportation was also up. Motor vehicle production fell 1.1% for the fourth consecutive month. Motor vehicle output fell
In December, the rate of inflation was 2.8% on a year-over-year basis.
The mining output dropped?0.7% in January after recovering 1.7% the previous month. The cold temperatures increased demand for heating and boosted utilities production by 2.6%. Utility output fell by 0.3% in the month of November. The overall industrial production rose by 0.4% following a similar increase in November. In December, industrial production increased by 2.0% year-over-year. The fourth quarter saw a growth of 0.7%. Reporting by Lucia Mutikani; Editing and proofreading by Andrea Ricci
(source: Reuters)