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Iron ore prices rise after China's central Bank pledges monetary assistance
Iron ore futures continued to rise on Wednesday, after the central bank of top consumer China pledged financial assistance to boost domestic consumption. This was exemplified in a?lower than expected consumption data. As of 0234 GMT, the most-traded May iron ore contract on?China's Dalian Commodity Exchange was up 0.26% to 765 yuan (US$110.63) per metric ton. The benchmark March ore traded on the Singapore Exchange at $100.35 per ton, up 0.17%. China's central banks said on Tuesday that it would increase financial support for domestic demand as overcapacity in the industrial sector and lacklustre consumption weighed down business confidence. Still, consumer inflation in the country cooled?in January, while producer prices deflation continued, reiterating market demands for more policy actions to address the'mismatch between demand and supply. The Consumer Price Index (CPI), which measures consumer prices, increased by 0.2% on an annual basis. This is below the 0.4% increase predicted in a recent poll. The producer price index (PPI), which measures the cost of goods produced, fell by 1.4% on an annual basis, continuing a trend of deflation that has lasted for years. This continues to affect the profits of industrial firms, and indicates the need for additional policy measures in order to increase the effective demand, and correct deep-seated imbalances within the economy. China depends on exports to absorb production capacity. However, a growing list anti-dumping and trade rules could derail export-driven growth through strong Chinese steel exports. According to a research report published by ANZ on February 11, export momentum will fade in 2026 as China tightens up production. Total volumes are expected to drop as much as 30 percent. Coking coal and coke, which are both steelmaking ingredients, have also weakened, falling by 0.22% and 0.5%, respectively. The Shanghai Futures Exchange has seen a rise in steel benchmarks. Rebar gained 0.26% in strength, hot-rolled steel coils firmed up 0.37%, and wire rod hardened by 1.42%. Stainless steel also gained 0.54%.
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President Prabowo asks Indonesia's top businessmen to create jobs during a meeting with them
According to a statement released on Wednesday, Indonesian President Prabowo met late Tuesday with 'five' of the country's leading businessmen, and asked them 'to work together' with the government 'to create jobs' in Southeast Asia's largest economy. The meeting came after a week-long turmoil on the Jakarta Stock Exchange, when index provider MSCI raised questions about transparency and ownership of shares. This led to a frantic sale that erased around $120 billion in market value. Five people were selected: Prajogo Pangastu, the founder of petrochemical comglomerate 'Barito Pacific Group', Anthoni Salim, of 'the Salim Group, a?of?the world’s largest instant noodles producers, Franky Wdjaja, of paper and agribusiness titan Sinar Mas; Garibaldi Thohir, of miner PT Alamtri Resources Indonesia; and Sugianto Ksuma, of property firm Agung Seday * The meeting took place at the Hambalang residence of Prabowo in Bogor. * Prabowo stressed the importance of the spirit "Indonesia Incorporated", which encourages close collaboration between all sectors to support?the economy. The statement stated that the businessmen supported a number of government programs, including free meals for students, the development and improvement of schools, as well as energy and food security.
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Bloomberg News reports that Trump will direct the Pentagon to purchase coal to revitalize industry.
?U.S. Bloomberg News, citing an official at the White House, reported that President Donald Trump will direct the Pentagon to use government funding and Pentagon contracts to sustain U.S. coal-fired power stations. The report could not be verified immediately. The White House didn't immediately respond to a request for comment made outside regular business hours, and the Pentagon deferred any?comments to the White House. Bloomberg reported that Trump will issue an executive order on Wednesday directing Defense Sec.?Pete Hegseth?to enter into?agreements for the military to purchase electricity from coal plants. The report said that Trump will also announce a plan from the Department of Energy, which includes $175 million to upgrade six coal-fired power plants located in Kentucky, North Carolina Ohio, Virginia, and West Virginia. The White House also stated that it would Hold an event On?Wednesday, promoting 'coal-powered sources of energy. The report said that coal executives, energy industry leaders, and miners will visit the White House when Trump makes his?announcements. Trump signed executive orders last year. Increase coal output (Reporting by Ananya Palyekar in Bengaluru; Editing by Christian Schmollinger and Thomas Derpinghaus) (Reporting from Ananya Palyekar in Bengaluru, Editing by Christian Schmollinger & Thomas Derpinghaus).
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Stocks pause in their tracks as signs of US consumer softening are seen
Bonds rose and stock markets slowed on Wednesday due to softer than expected U.S. retail figures. Meanwhile, the rally in the yen extended and could be signaling a change in investor sentiment since Japan's recent election. A holiday in Japan 'lightened' trade in Asia and Hong Kong and China markets opened at around level. The gold price rose above $5,000 per ounce, and Treasury futures also rose a bit. Cash market was closed. The benchmark 10-year U.S. Treasury rates fell by nearly six basis points over night and reached a low of 4.14%, a month-low. Data showed that core U.S. Retail Sales in December were down 0.1% and November and October data had been revised downward. Bond prices increase, and yields drop. The S&P 500 ended 0.3% lower as the recovery from heavy software share selling last week begins to lose momentum. Alphabet's shares fell by 1.8% as Google, the parent company, is raising debt to finance an AI infrastructure spending spree. S&P futures in Asia were 0.2% higher. Nikkei Futures also rose, despite the fact that the cash market is closed for the holiday. Earnings drove the Australian Market, which was up by 1% in Sydney around midday. Commonwealth Bank of Australia (CBA) shares rose 7% after the?top mortgagee in Australia posted record earnings and loan growth. It also held its market share, increased its dividend, and maintained market share. CSL shares, a biotech firm that makes the majority of its money by selling blood plasma treatments to treat rare illnesses, plunged 12%, reaching eight-year-lows, after the company announced a drop in the first-half profits and, late Tuesday, the departure of the CEO. ASX, Australia's troubled bourse operator that has been in trouble with regulators while it attempts to revamp its trading technology, announced late on Tuesday the departure of its chief executive officer. Shares were down by 5.5% on Thursday. JURY OUT ON THE YEN BUNCEBACK A resurgent dollar is being hurt by a rising yuan and a resurgent Japanese yen. The yen gained nearly 1% against the dollar on Tuesday. It has risen 2% in value since Japan's Liberal Democratic Party and Prime Minister Sanae Takaichi won a landslide victory at Sunday's election. Investors were worried about Takaichi's ability to pay for her stimulus plans, so they expected a weaker currency. Bond markets have remained steady since her win, and stocks have surged. Some investors are now rethinking their assumptions. Brent Donnelly is a currency trader, founder of analytics company?Spectra Markets, and he said: "To be long yen you must believe that the Nikkei correlation will break, and it will become an unhedged buy Japan' trade." "That's possible. "I just think that the jury is still out." Overnight, the yen rose dramatically on cross rates. The?euro remained steady at $1.1894, while the Kiwi and Aussie held above 60 and 70 cents respectively. China's currency, the yuan, was stable in early trading after it surged to its highest level in nearly three years on Tuesday. This was due to corporate demand for cash before?the Lunar new year break. China's consumer price index rose just 0.2% from January last year to the same month the previous year. This was below expectations of a 0.4% increase and highlights the weakening domestic demand. The Chinese government bonds futures market was supported. Brent crude oil futures remained steady at $68.80 per barrel as markets waited for the outcome of U.S. diplomacy with Iran. Bitcoin is struggling to break through the $70,000 barrier, and remained pinned at $69,000 on Tuesday. (Reporting and editing by Shri Navaratnam, Stephen Coates, and Tom Westbrook)
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Oil prices hold steady amid tensions between the US and Iran
The price of oil held steady on Tuesday, as the'market waited to see what direction it would take while U.S. - Iran talks?continued. Brent crude oil futures were up 23 cents or 0.3% at $69.03 per barrel as of 0100 GMT. U.S. West Texas Intermediate Crude rose by 23 cents or 0.4% to $64.19 Iran's spokesperson for the foreign ministry said that the nuclear talks between Iran and the U.S. had allowed Tehran to gauge Washington’s seriousness, as well as a sufficient level of?consensus' to continue diplomatic efforts. Diplomats from Iran, the U.S. and Oman held talks last week to try and revive diplomacy after the?U.S. Last week, diplomats from Iran and the U.S.?held talks in Oman to revive diplomacy after?U.S. ANZ analysts said that if the talks do not succeed, the U.S. could send a second carrier to the Middle East. This would dampen hopes for a peaceful solution. Trump announced on Tuesday that he would consider sending a second carrier to the Middle East as Washington and Tehran prepare to resume negotiations in an effort to avert a new war. The Energy Information Administration will release its weekly U.S. Oil Inventory data on Wednesday. The analysts polled by 'estimated that crude inventories increased by about 800,000 barrels during the week ending February 6. Distillate and gasoline stocks are expected to have fallen by approximately 1.3 million barrels and 400,000 barrels. U.S. crude inventory grew by 13,4 million barrels during the week ending February 6, according to market sources citing American Petroleum Institute data on Tuesday.
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Stocks pause in their tracks as signs of US consumer softening are seen
Bonds rose and stock markets rebounded on Wednesday, despite softer than expected U.S. retail figures. Meanwhile, the rally in yen extended itself - perhaps signaling a change in investor sentiment since Japan's elections. The morning trade in?Asia remained light due to a holiday in Japan, and investors were waiting for inflation data in China. Gold rose above $5,000 per ounce. The benchmark 10-year U.S. Treasury rates fell by nearly six basis points over night and reached a low of 4.14%, a month-low. Data showed that core U.S. Retail Sales in December were down 0.1% and November and October data had been revised downward. Bond prices increase, and yields drop. The S&P 500 ended 0.3% lower as the recovery from heavy software share selling last week begins to lose momentum. Alphabet's shares fell by 1.8% as the parent company of Google is raising debt in order to fund a spending spree on AI infrastructure. S&P futures in Asia were up 0.2%, Nikkei rose, despite the fact that the cash market had been closed for the holiday, and the Australian market, which was up by 1% in Sydney around midday, was driven by earnings. Shares of Commonwealth Bank?of Australia jumped by 7% after the top Australian mortgagee reported record earnings, loan increases, maintained market share, and raised its dividend. CSL shares, a biotech firm that makes most of its profits selling blood plasma treatments to treat rare diseases, plunged 12%, reaching their lowest levels in eight years, after the company announced a drop in its first-half profit, and late Tuesday, the departure of the CEO. ASX, Australia's troubled bourse operator that has been in trouble with regulators while it attempts to revamp its trading technology, announced late on Tuesday the departure of its chief executive officer. Shares were down by 5.5% on Thursday. JURY OUT ON THE YEN BUNCEBACK The dollar is on the defensive in the currency markets due to a resurgent Japanese yen, and the rising Chinese yuan. The yen gained 1% against the dollar on Tuesday. It has risen 2% in value since Japan's Liberal Democratic Party and Prime Minister Sanae Takaichi won a landslide victory on Sunday. Many investors were expecting a stronger currency because they worried about Takaichi's plans to pay for stimulus. Bond markets have been surprising steady since her win, and stocks have surged. Some investors are now rethinking their assumptions. Brent Donnelly is a currency trader, founder of analytics company Spectra Markets, and he said that to be long yen you must?believe the correlation with Nikkei would break, and it will become an unhedged buy Japan trade. "That's possible. "I just think that the jury is still out." Overnight, the yen rose dramatically on crosses. The euro remained steady at $1.1894, while the Kiwi and Aussie both held above 60 cents. China's currency, the yuan, was stable in offshore trade on Tuesday after reaching its highest level in nearly three years. This was due to corporate demand for cash before the Lunar New Year holiday. Brent crude oil futures remained steady at $68.80 per barrel as markets waited for the outcome of U.S. diplomacy with Iran. Bitcoin is struggling to break through the $70,000 barrier, and was stuck at $69,000 on Tuesday. (Reporting and Editing by Shri Navaratnam.)
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Li, China's Li, inspects rare-earth facilities and hints at US rivalry
Xinhua, the state news agency, reported that Premier Li 'Qiang', China's second highest official, visited rare earth facilities in southern province of Jiangxi, on Tuesday. The visit was used to imply a more intense competition between China and the United States. Over strategic minerals. These pre-holiday visits are a chance for China's top leaders to communicate their policy before the Lunar New Year celebrations begin. The readout on Wednesday subtly highlighted how Beijing has become more powerful in its negotiations with Washington by gaining access to critical components for everything from smartphones to autos. Rare earths?are also key in the manufacture of weapons. Li said that "the importance of rare earths is becoming more prominent in promoting green and lower-carbon transformation and developing advanced manufacturing." This was a reference to the chaos manufacturers experienced last year when China suddenly tightened its rare earth export controls following Washington's further restriction on Chinese investment in the U.S. Li said that it was important to "promote the deep integration between industry, academia, and research, as well as expand the application" of rare earth technology. Analysts believe the U.S. is competing with China to ensure long-term access. Beijing could gain a foothold on global corporate decisions if it introduces legislation that requires companies to declare their intentions if they use even trace amounts of Chinese rare earths. Li didn't mention the U.S. directly in his recorded remarks. The report said that he visited a Chinese Academy of Sciences research institute, as well as several unnamed companies in the?rare earth production line. Last week, U.S. Vice President JDVance announced plans to rally allies in a preferential trading bloc for essential minerals. He proposed coordinated price floors while Washington intensified its efforts.
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Petrobras exports record amounts of oil in Q4 due to expansion of clients
Petrobras, the state-owned oil company in Brazil, posted record exports Tuesday of 1.2 million barrels per day?of crude oil and derivatives for its 'fourth quarter. This is an increase of 79% over the same period last year. In a filing with the Securities and Exchange Commission, the company said that the record was achieved as oil production in Brazil increased by about 20% during the same time period, to 2.5 million bpd. This allowed the state-run firm to send more oil overseas. The company had announced previously that it had exceeded its own production guidance for the year. Petrobras also said that the increase in exports was partly due to the "ongoing efforts" of the company to diversify its client base. Recently, the Brazilian oil giant renewed a contract to supply Indian refiners millions of barrels. China remains the'main destination', with about 52% of all Petrobras exports during the fourth quarter. This is up 22 percentage points compared to a year earlier. India represents about 12% of all Petrobras oil exports, up 22 percentage points from the previous year. The firm stated that it has increased its exports to South Korea, Singapore and Thailand, as well as to Europe. The number of shipments to Europe dropped to 13% from 38%, and those to the U.S. fell to 3% from 9%. Petrobras reported a total production of 3,11 million barrels equivalent to oil per day (boed), up by?about 18% compared to a year ago. Petrobras reported that the total sales of oil and gas derivatives were also 19% higher than last year, at 3.37 Mbpd. The company is set to announce its financial results for the fourth quarter on March 5. Reporting by Fernando Cardoso, Sao Paulo; Fabio Teixeira, Marta Nogueira and Inigo Freed in Rio de Janeiro. Editing by Inigo Freed and Jamie Freed.
Silver go for $30/oz milestone
Silver might have the power to reach the $30 per ounce turning point after its 26% surge in MarchApril on the back of gold's record run and copper's strength, even though analysts say the metal is ripe for a technical correction.
Silver - both an investment property and an industrial metal used in electronics and photovoltaic panels - may likewise find it hard to hang on to $30 without a healing in global production activity and investment demand from funds.
Silver is beginning to behave a lot more as a precious metal than an industrial metal, stated Philip Newman, handling director at consultancy Metals Focus.
There has actually been a significant fall in the gold-silver rate ratio since the start of April, and from the technical point of view the market may see a correction, but there is still substantial momentum which indicates it could still strike $30.
The gold-silver ratio, representing how many ounces of silver one ounce of gold can purchase, is utilized by the market to assess future patterns as it indicates silver's present performance against its historical correlation with gold.
Spot silver costs were last up 0.9% at $28.44 per ounce. They touched $29.79, their highest in more than three years on Friday as gold extended its March-April rally.
The last time silver struck the $30 price level was in February 2021, however sustaining it for an extended period has avoided silver for more than a decade.
Financial investment demand for silver could help to push rates to around $32 in the second half of 2024, Citi stated in a note.
But the metal's unpredictable past suggests its present rally has been seen with care by some sector experts.
Silver is renowned for its capability to drop hard and fast, said StoneX expert Rhona O'Connell. Silver leapt to practically $50. in 2011 and then dropped to $12 in 2020.
On the fundamentals side, the silver market deals with the fourth. year of a structural market deficit due to expectations of. greater industrial need in 2024, Metals Focus said in a. research study produced for market body the Silver Institute.
Macquarie estimates that silver market deficits will continue. throughout its 5-year forecast window, despite the fact that adequate noticeable. and private stocks continue to cover the shortage in the meantime.
However unpredictability over the global economic outlook, especially. in the electronics sector, which is essential for silver's. commercial usage, might constrain the metal in the near. term.
Phillip Streible, primary market strategist at Blue Line. Futures in Chicago, stated the silver market will need to see a. manufacturing recovery and boost in solar need for costs. to trade above the $30 mark.
In big silver customer China, March factory activity. broadened for the very first time in six months.
There are green shoots from other parts of the market with. some inflows to physically-backed silver exchange traded funds. ( ETFs) in April, however they also have not yet formed a sustainable. pattern.
Recent weeks have seen a reversal of ETF circulations and I think. that is a function of increasing silver prices. Simply put, the. ETF flows have actually followed the cost rather than lead it, stated. Maria Smirnova, senior portfolio supervisor at Sprott Property. Management.
Therefore, if the silver price rally sustains, then the ETF. circulations will continue and even speed up, she added.
(source: Reuters)