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Glencore says that exposure is not material, and takes a provision against Radiant World
Gary Nagle, the CEO of Glencore, said that the company had?taken an provision relating to Radiant World. However, he added that Glencore's exposure towards the iron ore trading firm was not significant. We have some existing contracts that still need to be completed. Nagle said on a conference call that they are assessing how to deal with them in a legal manner. However, we have stopped doing any new business. Bloomberg reported that last week, fellow trading houses Vitol and Cargill had stopped doing business Radiant World because they were concerned about the validity of invoices sent to their banks. Radiant World stated that the claims made were unsubstantiated and inaccurate. Nagle refused to reveal the amount of the provision, or when and why Glencore ceased doing new business with Radiant World. The CEO said: "We want everything to be done legally, due to the increased scrutiny surrounding this counterpart." Nagle said that Radiant World, Sapphire Minmetals and another 'company' reported to have been scrutinized over invoices should be considered as being part of the same group. Nagle, when asked to comment on Glencore's exposure to Sapphire, said that the two firms "share similar shareholdings and have similar management." Radiant World declined to comment. Sapphire didn't immediately respond to a comment request. Reporting by Tom Daly, Clara Denina. Solomon Cefai contributed additional reporting from Singapore. Editing by Louise Heavens, Mark Potter and Mark Potter
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Gold reaches a one-month high as US-Iran hopes for peace ease inflation concerns
As investors awaited the Federal Reserve's next policy move, gold rose more than 2% to a?month high on Wednesday as hopes for a?U.S. Iran peace deal tempered inflation fears. By 0836 GMT, spot gold had risen 2.2% to $4164.13 an ounce, its highest since July 7. U.S. Gold Futures rose by 1.7% to $4223.60. U.S. president Donald Trump stated that his administration had "very positive discussions" with Iran on Tuesday during the all-day talks, which fueled expectations of an impending end to the five-month conflict. There are signs that a Gulf ceasefire agreement is in the works, and Treasury yields will be lowered as inflation fears ease. This makes non-yielding investments like gold more appealing. The U.S. Dollar remained under pressure. This made metals priced in greenbacks more appealing to holders of other currencies. Yields on the benchmark 10-year U.S. Treasury notes fell to an all-time low. In a high-interest rate environment, gold tends to lose appeal despite its role as an inflation hedge. It yields no return. According to the CME FedWatch Tool, traders are now pricing in 59% of a rate hike for September, down from 67% just a day ago. According to Jeff Schmid, the president of the Federal Reserve Bank of Kansas City, monetary policy tightening will be needed in order to bring "too-high" inflation down to 2%. Concerns about the Fed’s credibility will likely ease as the central bank increases interest rates in the coming months. Hamad Hussain is a climate and commodities analyst at Capital Economics. He said that this would lead to gold prices dropping and settling under $4,000 per ounce by the end of the year. The ADP employment report is due at 1215 GMT and the July nonfarm pay reports are scheduled for Friday. Spot silver rose 3.3% to $61.49 per ounce, the highest level since July 7. Platinum rose by 1.1% to reach $1,753.84 after reaching its highest level in mid-June. Palladium also gained 1.6%, to $1375.15 after reaching a two-month high. (Reporting from Bengaluru by Pablo Sinha; Editing by Rashmi aich)
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Investors on edge over Mideast peace talks as stocks get AI boost
The world stock markets edged up on Wednesday, as Wall Street reached record highs thanks to robust earnings and renewed interest in technology shares. Meanwhile, hopes of progress regarding the opening of the Strait of Hormuz drove down oil prices and bond yields. Investors awaited signs of progress in the U.S. Iran negotiations. The pan-European STOXX 600 Index was up by 0.1% last. U.S. president Donald Trump said that his administration had "very positive discussions" with Iran, during the all-day talks. This has fueled hopes for an end to the five-month conflict. The drugmaker Novo Nordisk fell 4.2% following disappointing sales of the Wegovy weight loss pill. This overshadowed an impressive second-quarter profit beat. HSBC's shares dropped nearly 3% a week after the results, as investors digested analyst reactions to the numbers. The Nikkei 225 index rose 3.7%, its highest level since July 23. South Korea's stock market closed 3.8% higher. The broadest MSCI index of world stocks rose by 0.4%. Even though the mood was positive, AMD's premarket shares fell by?7% after falling 8.8% after hours. The company's results exceeded analysts' expectations but failed to live up to investors' high expectations. SpaceX, a company that makes satellites and AI products, was down 10% on premarket trade on concerns heavy capital spending is eating up its cash flow. The rising borrowing costs in the AI sector have been a constant concern for all AI shares. Chris Weston is the head of research for broker Pepperstone. He said: "SpaceX has continued to perform well in terms of operations, but its ambitious investment plan means that additional capital will be needed over the medium- to long-term." Nasdaq 'futures' were flat while S&P500 futures gained 0.3% after the benchmark index reached all-time highs Tuesday. OIL SLIDES BOOST BONDS The lower oil prices boosted the mood after Qatar announced that mediators had made progress in their efforts to end U.S.-Iran War, although details were still lacking. Brent crude has risen over 50 cents or 0.7% to $79.95 per barrel. This is a far cry from its peak in July of $102 while U.S. Crude rose 14 cents at $75.90 after reports that a Saudi Arabian ship was attacked in the Red Sea. John Oh, energy economist at CBA, observed ship tracking data and said that the Strait of Hormuz was proving to be more resilient than initially thought. Flows were perhaps 40%-45% of what they had been pre-war last week. He wrote that the Brent oil futures dropped into the 70s because of this. The drop in oil prices has provided some relief to inflation fears, and the 10-year Treasury yields are now at 4,606%. This is down from last weeks high of 4.747%. James Rossiter is the head of global economy at TD Securities. He said that the Federal Reserve will closely monitor next week's inflation data and Friday's job report. Rossiter stated that if the Fed changed from a steady rate cycle to one of?tightening, "markets will respond strongly". The markets also reduced the probability of an increase in Fed rates to September from 67% to 57%. Jeff Schmid, President of the Fed Bank Kansas City, spoke on Tuesday and called for tighter policies to bring inflation to its 2% target. The euro was essentially flat at $1.1540 - just below the recent high of $1.1559, which is a six-week old record. The dollar remained steady at 157.75yen, despite the threat of "intervention" still hanging over the markets. U.S. Treasury secretary Scott Bessent stated that he was confident Bank of Japan Governor Kazuo Ueda "would do what is best" to help Japan's economic situation, and the markets took this as an encouragement to increase interest rates. Last week, Japan and the United States made a rare joint intervention to buy yen and promised further action in the future if needed to support the currency. The drop in yields on commodity markets helped gold that does not pay interest to rise 2.2%, reaching $4,166 per ounce. Reporting by Nell Mackenzie & Wayne Cole. (Editing by Shri Navaratnam Amanda Cooper Mark Potter and Mark Potter.
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Why have Indian stock traders been spooked by the new closing price system?
India's benchmark Nifty has seen a sharp swing in price following the introduction of a new formula for calculating closing prices?for stocks that have derivatives contracts. The BSE Sensex and the volatility of Wednesday's session triggered a rare, third-straight session divergence. This led to heavy losses among traders. HDFC Bank, ICICI Bank, and Reliance Industries account for more than?27%. The Sensex is composed of 30 stocks that are all also included in the Nifty 50. WHAT IS THE NEW METHOD TO DETERMINE CLOSING PRICE? India introduced on Monday the Closing Auction Session, a separate window of 20 minutes that starts at 3:15 pm IST following regular trading in eligible stocks. Exchanges will collect orders to buy and sell during this time. The order entry window closes randomly between 3:28 and 3:30 p.m. After 3:30 pm IST and the matching of trades, the price at which maximum volume is possible can be determined. The new system replaces a previous method in which the closing price was based on an average of the trades that were executed during the last 30 minutes of continuous trading. Stocks without futures or options contracts will continue to be calculated using the old system. Why has the new method caused divergences between the NIFTY and SENSEX index? The National Stock Exchange of India stated that?the two exchanges maintain separate orderbooks, which means individual stocks prices can vary between exchanges. This leads to a divergence of index?closing level. Dealers have the ability to view bid and offer price in regular trading. However, the new system does not allow this visibility during the last 20 minutes. Divergence may also be due to the different weightings of stocks between the two indices. The NSE has a much higher institutional cash market volume than the BSE. Why was CAS introduced? The new process brings India closer in line with global markets and provides a transparent and fair closing price. It also improves the efficiency of executing large orders. What happened on Tuesday? Options premiums were affected by the sharp rise in the Nifty50 at the close of Tuesday, which coincided with the expiration of the weekly derivatives contracts. Traders who lost money on the move said that the 20-minute auction was not a good indicator of where the Nifty50 would end up. When will?THE DIFFERENCES IN INDEX? CLOSE PRICES end? Participants in the market expect that as more traders and institutional participants participate, the gap will narrow. Kotak Mutual Fund stated in a letter to investors that they expect pricing inefficiencies to ease as the new system is adjusted. It said that while the first days of the market may be characterized by temporary price dislocations and valuation volatility, the behaviour should normalize as participants adjust to the new framework. Reports on Wednesday stated that the regulator would not be able to review the system right away and expected issues to be resolved'soon. WINNERS & LOSSES Arbitrage funds that hold positions on both the cash and futures market were among the most benefited by the sudden jump in prices. A clear arbitrage opportunity was created as cash market prices soared and futures prices lagged. Retail traders were also caught by surprise and suffered losses. Vivek M. Reporting; Jayshree Upadhyay, Nivedita Bhattacharjee and Nivedita Bhattacharjee.
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South Korean shares close at a record high for a week on AI frenzy and cheaper oil
South 'Korean stocks closed at a record high for a week on Wednesday, as heavyweight chipmakers rallied in response to strong U.S. earnings. They also showed evidence of massive AI capital expenditure. Meanwhile, lowering oil prices eased inflation concerns. The benchmark KOSPI closed 3.8% higher, at 6,598.26. This was its highest closing since July 27. The junior Kosdaq rose 2.4%, reaching a new closing high of three weeks. Chip stocks rose by a record amount overnight, thanks to strong earnings from AI companies. SpaceX also boosted chip stocks with its massive expenditures. The Philadelphia Semiconductor Index jumped?6.6%. Samsung Electronics, a South Korean memory chip maker, and SK Hynix, a South Korean memory semiconductor manufacturer both gained 2,9% and 6,7% respectively. These two companies account for more than half of KOSPI. The sharp volatility in the market in recent weeks has been tempered by the tame trading of leveraged ETFs that are tied to chipmakers. The KOSPI lost almost 40% over the course of five weeks, ending in late July. However, it is still up by 57% for the year. The unwinding of single-stock leveraged exchange traded funds over the past few weeks has eased some technical pressure and allowed 'fundamentals' to gain greater influence,? said James Ooi. Market strategist at Tiger Brokers. While the KOSPI valuation has become more appealing following the sharp correction that began in May,... The selling pressure is easing but the deleveraging of memory stocks continues and could continue to keep volatility high." Hyundai Motors and Kia Corp, its sister company, both rose by 3.1% and 2.6% respectively. POSCO Holdings, a steelmaker, rose 1.3%. Samsung BioLogics, a drug maker climbed 1%. The won has appreciated for the third day in a row, reaching as high as 1,420.8 U.S. dollars on the settlement platform onshore. The currency is up almost 1% in the last three sessions. The minutes of the Bank of Korea meeting in July showed that policymakers felt the need for?further tightening?, though the timing and rate of future rate increases will depend on the incoming data. The markets are pricing in an almost 70% chance of a hike of 25 basis points ahead of the next meeting of central bank policy scheduled later this month. According to data from the exchange, foreigners bought shares worth 1.446.3 billion won ($1.02 million) on Wednesday after selling 9.862 trillion won during July. On the money and debt market, September futures on three-year Treasury bonds rose 0.24 points?to 103.57. The benchmark 10-year yield dropped by 10.1 basis point to 4.148%, while the most liquid Korean three-year treasury bonds yield fell by 7.7 points to 3.665%.
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Rio Tinto's executive claims that the price of iron ore will rise in the next decade due to the depletion of mines.
Rio Tinto's executive stated on Wednesday that the supply pressure resulting from the depletion?of?iron ore mining operations built earlier in this century, such as those found in Australia, will?underpin iron ore prices and the market over the next decade. Rio expects that it will invest over $13 billion in new mines, plants and equipment in the Pilbara Region from 2025-2027. It estimates that 800 million tons of additional production is needed globally within the next decade. Just 300 millions tonnes have been committed. Matthew Holcz said at a luncheon event held by the Melbourne Mining Club that "it feels like every year, the demise is being greatly exaggerated". "While I believe the demand story is fairly well understood, I truly think it was on the supply-side, so disruptions have been understated," he said. He pointed to the annual cyclones which strike Western Australia's Pilbara Coast from November to March. Holcz said, "I believe the rate of depletion has been greatly underestimated." "If we take a look at the years when the industry boomed - 2005, 2010, and 2015 - a lot of these?assets? are now 15, 20, or more than 20 years old, and the size of the iron ore sector... has grown." Holcz stated that the investment in new supply today is a fraction of what it was at the beginning of last decade. "Marginal costs have increased a lot... we believe there is good price support at the levels we've enjoyed in recent years." China's iron ore demand will remain stable until 2030, then decline slightly. However, the Global South, and in particular India, is expected to boost demand. Rio estimates that India could become a net importer of iron ore around 2035. LEVERAGE CHANGE Holcz stated that tensions between buyers and suppliers always existed, but Rio was focused on "win-win opportunities" and long-term ties. In remarks made on the sidelines, he said: "The balance between supply and demand has changed." "You have a market that is much more balanced, and that has certainly shifted some leverage." Holcz, in referring to union issues in the Pilbara where workers will strike this weekend at BHP’s Port Hedland operation, favored a “direct relationship” with workers, which he claimed?has historically resulted in better outcomes. The future capital expenditure decisions will be based on the competition, industrial relations, and taxation elsewhere. Australia has fallen behind in these areas. Holcz said that Rio Tinto has no significant exposure to the iron ore trader Radiant World. Bloomberg News reported last week that trading houses Vitol and?Cargill had stopped dealing with Radiant World because they were concerned about the validity of invoices sent to their banks. Radiant World denies this. Holcz stated that "from a Rio Tinto point of view, there's no exposure here about which we're worried." (Reporting and editing by Clarence Fernandez in Melbourne, Melanie Burton reported from Melbourne)
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Copper prices are weighing on demand, slowing the copper rally
Copper prices rose on Wednesday, but remained below the highs of yesterday. This was due to a combination of waning inventories and improving risk sentiment. Benchmark 'three-month copper' on the London Metal Exchange was up by 0.18% to $14,091.5 per metric ton at 0700 GMT. The Shanghai Futures Exchange's most traded copper contract rose by 0.96%, to 107.340 yuan (15,908.82 dollars) per ton. Prices reached a two-month peak on Tuesday and surpassed the psychological $14,000 per tonne for the first since early June. Red metal prices have been boosted by a decline in inventories, as more material has been brought into the U.S. to avoid potential tariffs on refined copper. The total copper stock in LME registered warehouses Since the end of May, prices have dropped by almost 40%. Daniel Hynes is a senior commodity strategist with ANZ. He said that the US imported over 200,000 tons copper in July, which was the largest monthly influx since 2014. The LME spread from cash to three-months reflected the supply pressure on physical materials The red metal was supported by an improved macroeconomic outlook and a better?risk sentiment from cooling fears about escalation in the Middle East. The red metal also benefited from a better macroeconomic outlook, and a better risk sentiment due to easing fears of escalation within the Middle East. Analysts from Chinese broker Everbright Futures stated in a report that high copper prices were beginning to impact demand. They questioned the strength of the seasonal demand for the second half of the year. Yangshan Copper Premium According to SMM, an indicator of physical demand in China's largest consumer, the price per ton dropped to $110 on Tuesday. Aluminium gained?0.23% on the LME, while zinc gained 0.94%. Lead added a?0.37%. Nickel lost 0.42%. Tin gained 0.9%. Aluminium gained 0.25% among SHFE metals. Zinc rose 1.88%. Lead rose 2.77%. Nickel lost 0.79%. Tin rose 1.56%.
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The stock market in Australia and New Zealand ends at a record high
Equities in Australia, New Zealand and Canada closed at record highs on Wednesday. In Sydney, miners and tech stocks led the way following a rally of U.S. technology shares and hopes for easing Middle East tensions. The benchmark S&P/ASX 200 index in Australia rose 0.9%, closing at an all-time high of 9,227.80. In New Zealand, the equivalent index finished 0.7% higher with a record 13,997.18. The relative strength index of the benchmark ASX200 index, which has been rising for four consecutive sessions, is now in overbought territory and at its highest level since mid-June, 2025. The risk appetite was strong following the strong rally of U.S. and European stocks on the backs of strong AI-driven profits, with the easing oil prices further boosting the mood. The ASX200 index received support as new money entered the market to start the new financial calendar year. It also attracted new inflows from investors looking for a low-beta destination that would help them ride out the volatility of high-beta markets, especially those in Asia, which are tech-heavy. Investors are now focusing on the August earnings season. A packed reporting calendar is likely to drive sentiment over the next few weeks. Sycamore believes the ASX 200 is at risk of sliding and retesting the 9,000-level. A sustained breakout will be unlikely before the reporting season ends and may not occur until September. The rise in iron ore prices led to a?3.7% increase for the miners on the day. BHP, Rio Tinto and Fortescue all gained between 0.6% to 3.3%. The gold miners posted their best session in a little over a month, with a gain of?6.4%. The Wall Street rise led to a 2.5% increase in tech stocks, which reached an eight-week record. Financials, which had been gaining, fell?0.4%, their worst day for?about two-weeks. The "big four" banks declined between 0.4% to 1.4%. The weaker oil price caused energy stocks to fall 2.2%. This was their worst session in more than a week. (Reporting by Kumar Tanishk in Bengaluru; Editing by Nivedita Bhattacharjee)
US sources claim that the US has moved away from critical minerals price floors
Multiple sources have confirmed that the Trump administration has backed away from its plans to guarantee a price floor for U.S. Critical Minerals Projects, as a tacit acknowledgement of a lack in congressional funding and complexity of setting market prices, according to?. This shift comes at a time when a U.S. Senate Committee is reviewing a price ceiling extended to MP Materials in the past year. It marks a reversal of commitments made to the industry. Washington could also be set apart from other G7 countries discussing joint price support measures or similar measures to boost production of critical minerals that are used for electric vehicles, semiconductors and defense systems.
Three attendees said that at a closed door meeting hosted by a Washington think tank this month, two senior Trump officials informed U.S. mineral executives that they would have to prove financial independence from government price support for their projects.
Audrey Robertson, Assistant Secretary of the U.S. Department of Energy and Head of its Office of Critical Minerals and Energy Innovation told the executives that Audrey Robertson was not there to support them. "Don't expect that from us."
A U.S. official said on Thursday that the administration may use its new power to negotiate individual price floors with businesses.
Tariffs under Section 232
Imposing a market-wide floor price on certain minerals could achieve a similar goal.
In premarket trading, shares of U.S. listed miners that produce critical minerals dropped between 3% to 8% on Thursday.
Trilogy Metals fell 3.3%, MP Materials dropped 4.7% and Critical Metals and NioCorp Developments both lost more than 5%. Ramaco Resources dropped 6.4%, and USA Rare Earth fell?nearly 9 percent.
Rare Australian Earth Shares Slide
The price floor set by the MP is not affected.
Robertson was joined in the International Trade Administration by Joshua Kroon. He is the deputy assistant secretary for textiles and consumer goods as well as materials, metals, and critical minerals at the Department of Commerce.
Sources claim that Kroon and Robertson said at the meeting Washington was no longer able to offer floor prices.
In a written statement, the Energy Department said that the story had been "false" and that it relied on sources who were either misinformed or intentionally misleading. The statement didn't elaborate on the errors that the department claimed to have found. The Energy Department did not respond immediately to a request for more information.
MP Materials didn't respond to an emailed comment request, but after this story was published on Twitter said that there had not been any changes to its contract and the government obligations surrounding it. It said that any implication the U.S. government has changed its mind about MP Materials's contract is false.
I did not suggest any part of the MP's agreement was at risk.
The report today is inaccurate, false, and contradictory with the facts. The company said that it follows a pattern speculative, misleading reporting which "has mischaracterized government policies and caused unnecessary confusion on the market".
Kroon and Robertson have not responded to any requests for comments.
After the publication of the article, shares in Australian listed rare earths companies fell, and at one stage, those of Lynas Rare Earths - the largest company outside China - were down by more than 10%. A spokesperson for Lynas said that the company was benefiting by the U.S. decision, which has boosted rare earths prices.
Price protection is important for producers who are currently in business, because it addresses the market's dysfunction immediately. She said that other policy instruments were available and had been used for early-stage projects.
Reg Spencer, an analyst at Canaccord in Sydney, believes that the steep fall for shares related to rare earths was exaggerated.
The comments were in line with his interpretation of White House policy, which is that the White House does not intend to support every rare earths project by using a floor price mechanism. Projects will be developed according to their merits," said he.
The U.S. continues to support the development of a critical minerals supply chain in ex-China. He added that they may use different methods.
Change in tact The current administration's stance contrasts with a closed-door July meeting, in which two officials told separate minerals executives in private that a price floor extended to MP Materials a few days earlier was "not an isolated event" and that they were working on other price support projects. Since then, the Administration has acquired equity in Lithium Americas and other companies, including USA Rare Earth, Trilogy Metals and USA Rare Earth. The government did not offer any price floors to these companies, which raised questions about its commitment to this financial tool. U.S. mining companies and processing firms have sought price floors and government backstops in order to compete with China. Industry executives claim that China's state producers can cut prices to punish competitors, undermine projects and discourage private investment.
The White House has declined to confirm whether it intends to set new price floors. However, it said that it would continue to pursue tax cuts, deregulation and targeted investments in high-priority sectors "while being good taxpayer dollars."
Price floors are criticized by critics who warn that they expose U.S. tax payers to financial risk, forcing the government to subsidise minerals when prices drop. This could result in long-term liabilities for taxpayers if prices continue to fall.
Legal experts warn that guaranteeing minimum price could be challenged under U.S. budget, procurement and trade laws. This is especially true if such support is perceived as a market distortion, or if it lacks explicit congressional approval. Washington can still take other measures to support mineral projects and stabilize prices. These include stockpiling and equity investments, as well as local content stipulations. Price floors have been considered by other countries including Australia.
MP DEAL IN THE SPOTLIGHT MP Materials' investment raised concerns from administration officials and Congress members that funding of a price-floor of at least $10 per kg for 2 types of rare Earths was not authorized by Congress. Two additional sources who were familiar with the discussion confirmed this.
Since the MP investment, the economics have changed in the mineral markets. USA Rare Earth announced this week that it plans to purchase the same types of rare Earths on the open markets for $125 per kilogram.
The MP investment included a guarantee purchase agreement. This caused confusion about whether Washington would guarantee price floors for others.
Sources said that as the Trump administration looked at other equity investments it could make after MP, they realized it didn't have the authority from Congress to fund a floor price.
According to two sources, this realization was partly sparked by an inquiry made by members of the Senate Armed Services Committee. They asked Pentagon staff to meet last year in order to explain the reasons why MP Materials received support for a price floor and the strategy the administration had adopted to invest in the minerals sector.
A staffer of the committee confirmed that the request for a meeting was made, but refused to comment further. Reporting by Ernest Scheyder, Jarrett Renshaw. Melanie Burton and Vallari Srivastava contributed additional reporting from Melbourne and Bengaluru, respectively; editing by Veronica Brown and Lisa Shumaker.
(source: Reuters)