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Copper prices rise as US-China optimism persists
The copper price edged up on Tuesday as the market was buoyed by the prospect of a U.S. China trade agreement. A meeting between the two Presidents is just around the corner, which also helped boost the market's sentiment. As of 0250 GMT, the most active copper contract at the Shanghai Futures Exchange rose 0.18% to 88,100 Yuan ($12,368.38), per metric tonne. The benchmark copper price for the three-month period on the London Metal Exchange remained flat at $11,030.50 per ton. The Shanghai and London contracts both extended their gains from the previous day and hovered around 17-month highs. Over the weekend, U.S. officials and Chinese officials hammered out a framework for trade that would deescalate the recent tensions. President Donald Trump and Xi Jinping will decide this later in the week during their meeting in South Korea. Investors are confident that Trump will sign the trade agreement with China. This would mean a reduction in trade tensions. The Chinese yuan has continued to gain strength against the U.S. Dollar. Chinese buyers can now buy commodities that were previously priced in dollars. Nickel, the second-most traded base metal in SHFE, suffered the largest loss. It fell by almost 1%, trading at 121.17 yuan per ton. Nickel gained for three sessions in a row before reversing course early on. Oversupply has continued to plague the battery metal and stifle any upward momentum. There is simply too much nickel in the world. "Whenever nickel gains, it's a good time to cash out, as nobody knows if those gains will continue," said a nickel trader, who requested anonymity because the person is not authorized to talk to the media. The weekly report of SHFE shows that the delivered nickel stocks have increased for a third week in a row, by 4.81%. Zinc rose 0.27% while lead fell 0.60%. Aluminium and tin were trading near their flatline. Other LME metals saw a slight increase in aluminium, a decrease in zinc, 0.15% drop for lead and nickel, and little change for tin. Tuesday, October 28, DATA/EVENTS(GMT)1100 France Unemp SA Class-A September 1400 US consumer confidence October
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Trump and Takaichi reach agreement on critical minerals, rare earths, and supply
The White House announced that U.S. president Donald Trump and Japan prime minister Sanae Takaichi signed a framework deal on Tuesday to secure the supply of rare earths and critical minerals through mining and processing. Both countries want to strengthen the supply chains of rare earths, which are used in everything from electronics to cars and renewable energy. The statement stated that the U.S., Japan, and other countries will cooperate by using economic policy tools, as well as coordinated investment, to develop a diversified, liquid and fair market for rare earths and critical minerals. China processes 90% of rare earths in the world. It has recently increased export restrictions, adding new elements to its control list. They have also tightened their oversight over foreign producers who rely on Chinese material. In contrast, the U.S. has only one rare earth mine that is operational and is racing to secure minerals essential for electric vehicles and advanced manufacturing. Trump will meet Chinese President Xi Jinping Thursday. In their agreement, the U.S.A. and Japan agreed that they would streamline and deregulate processes and timelines for obtaining permits and securing rare earths and critical minerals, and also address unfair trade practices and non-market policies. The White House added that both countries would look at a stockpiling agreement that would be mutually beneficial and would work with other international partners in order to ensure the security of supply chains. (Reporting from Katya Golubkova and Kanishka in Washington DC, and editing by Himani Sarkar & Stephen Coates).
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Gold returns to $4,000 on the back of a weaker US dollar and rate cuts
Gold prices recovered some lost ground Tuesday, rising over the $4,000 per ounce level. A weaker dollar and expectation of further Federal Reserve rates cuts outweighed the pressure from signs that U.S. China trade tensions are thawing. As of 0141 GMT spot gold was up by 0.7% to $4,009.39 an ounce after falling more than 3% Monday, its lowest level since 10 October. U.S. Gold Futures for December Delivery rose by 0.1%, to $4.022.10 an ounce. Gold buyers who were on the sidelines are now tempted to take positions at these prices. We are also seeing some softness in the dollar which gives gold a reprieve," stated KCM Trade Chief Analyst Tim Waterer. Gold is now cheaper for holders of other currencies due to the dollar index's 0.1% decline. Top Chinese and U.S. economists hammered out the framework for a trade agreement that U.S. president Donald Trump and his Chinese equivalent Xi Jinping will decide on this week. Trump told reporters that he believed a deal with China would be made. He also announced in Malaysia a series of deals with four Southeast Asian countries on minerals and trade. This was the first stop on his five-day Asia tour. If Trump and Xi had a productive trade meeting this week, gold could be swimming against the flow to some extent. Waterer noted that this could be countered if the Fed adopts a more dovish tone in its rate-cutting announcement this week. Investors are waiting for any language from Fed chair Jerome Powell that is forward-looking. The Fed is widely expected to lower interest rates by the end of their policy meeting on Tuesday. Both the European Central Bank (ECB) and the Bank of Japan, are expected to keep rates unchanged this week. The gold price has risen by 53% in the past year. It reached a high of $4,381.21 at the end of October, boosted by economic and geopolitical uncertainty, bets on rate cuts, and central bank purchases. Other than that, silver spot fell 0.3% per ounce to $46.74, platinum dropped 1.2% to 1,571.85 and Palladium dropped 0.8% to $1391.15. (Reporting and editing by Sherry Jac-Phillips, Subhranshu Sahu and Brijesh Patel in Bengaluru).
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Oil drops as OPEC plans to increase output offset US-China trade optimism
The oil prices fell on Tuesday, extending the declines from the previous two sessions. This was due to OPEC's plans to increase output, which offset optimism about a possible U.S. China trade deal. Brent crude futures dropped 4 cents, to $65.58 per barrel at 0106 GMT. U.S. West Texas Intermediate Crude Futures fell 9 cents to $61.22. In a morning report, ANZ stated that traders weighed progress in U.S. China trade talks against the broader outlook of supply. OPEC+ - which includes the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia - is leaning toward a modest increase in output for December. Four sources familiar with these talks confirmed this. After reducing production to help support the oil markets for several years, the group began reversing these cuts in April. The prospect of a deal between President Donald Trump and Xi Jinping, the two world's largest oil consumers, who are due to meet in South Korea on Thursday, is expected to support the market. Wang Yi, China's Foreign Minister, told Marco Rubio by phone that Beijing hopes Washington will meet them halfway in order to "prepare high-level interaction" between the US and China. Brent and WTI posted their largest weekly gains in June last week after Trump, for the first time during his second term, imposed sanctions against Russia related to Ukraine, targeting oil companies Lukoil, and Rosneft. Lukoil, Russia's largest oil producer, announced on Monday that it will sell its overseas assets in response to the sanctions. The Russian company has taken the most significant action to date in response to the Western sanctions imposed over Russia's conflict in Ukraine that began in February 2022. The market was shocked by the U.S. decision to sanction two of Russia’s largest oil producers, Rosneft PJSC (PJSC) and Lukoil PJSC (PJSC), which together account for nearly half of Russia’s total crude imports. ANZ said that concerns about a glut of crude oil still remain. Ashitha Shivprasad, Bengaluru (reporting); Sonali Paul (editing)
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Australia retreats as CSL delays spin-off of vaccine division
The Australian share market fell on Tuesday. Biotech giant CSL was the main culprit, as it weighed down the healthcare sub-index. CSL hit a low of nearly seven years after delaying the spin-off of its vaccine division. By 2353 GMT, the S&P/ASX 200 index had fallen 0.3% to 9,032.40. The benchmark closed Monday 0.4% higher. The shares of the biotech giant CSL fell as much as 16.6%, to A$176.23. This is their lowest level since December 24, 2018. After the firm announced that it does not expect to complete the spinoff CSL Seqirus by fiscal 2026 due to increased volatility on the U.S. flu vaccine market. The company was also the biggest loser in the benchmark index, causing the healthcare sub-index to drop as much as 7.9% and reach its lowest level since Nov. 2, 2023. The technology stocks dropped around 3.6%. WiseTech Global shares fell up to 16.3%, reaching A$71.17. This was their lowest level since 7 April, and they were among the worst performers on the benchmark. The Australian corporate regulator is investigating the firm, and so are federal police. They executed a search order for documents relating to alleged share trading by the founder Richard White and other employees. Gold stocks fell 5.6% on the back of falling bullion prices, which were boosted by signs that tensions between the U.S. and China are easing. This reduced gold's appeal as a safe haven. The gold miners Evolution Mining (formerly Northern Star Resources) and Evolution Mining fell by 4.3% and 3.8% respectively. The "Big Four" lenders gained between 1.2% to 2.4%, while the banks saw a gain of 1.6%. Investors in Australia are now waiting for the third-quarter CPI figures, which will be released on Wednesday, before determining how central banks' interest rates will move. New Zealand's benchmark S&P/NZX 50 was mostly flat at 13,392.44 point.
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Two people killed by explosion in underground mine in Australia
An explosion early Tuesday morning in Australia's New South Wales State killed two workers and injured another. The state's premier referred to the incident as a "sobering" reminder of the dangers in the mining industry. Police said that emergency services were dispatched to Cobar, a remote mining town located 700 km (435 mi) northwest of Sydney. They were informed of a serious workplace accident in which people had been injured. The Australian media reported that the incident took place at the Endeavor Silver, Zinc and Lead Mine, owned by Polymetals Resources Ltd. Polymetals didn't immediately respond to an inquiry for comment. The mine was operational since 1982, but closed in 2020 for maintenance. According to its website, Polymetals purchased the site in 2023. They restarted mining this year. The New South Wales Premier Chris Minns stated that while mining safety has improved greatly, deaths in the industry show that it must remain vigilant at all times. Minns, in a press release, said: "This is an incredibly sad day for the Cobar Community and it will be felt throughout the mining industry." (Reporting from Renju Jose, Sydney; editing by Lisa Shumaker).
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NextEra Energy and Google partner to restart Iowa nuclear power plant
NextEra Energy, a U.S. utility company, and Alphabet’s Google signed a power supply agreement that would help restart Duane Arnold Nuclear Plant in Iowa. After years of stagnation the nuclear industry is experiencing a renaissance. This is due to a massive surge in demand for power as Big Tech searches for cleaner energy sources to power its data centers. After the bell, NextEra Energy shares rose by over 1%. They now stand at $87.24. After 45 years of operation, the Duane Arnold Energy Center with a capacity of 600 megawatts was shut down in 2020. The U.S. has not restarted a fully closed nuclear reactor, but Duane-Arnold would be one of three plants currently in the process. NextEra reported that the Duane Arnold Energy Center in Palo, Iowa is the only nuclear plant in the state. It is expected to be reopened by the first quarter of 2020. The agreement will last 25 years and the tech giant is expected to purchase electricity from the 615 MW plant in order to power its cloud-based AI infrastructure, as well as driving economic investment into the Midwest region. NextEra announced that Central Iowa Power Cooperative, a minority owner of the plant, will buy the remaining output of the plant on the same terms and conditions as Google. NextEra now owns the entire plant. The utility also announced that it has signed agreements with CIPCO and Corn Belt Power Cooperative to purchase their combined 30% stake in Duane Arnold.
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Wall St reaches new highs thanks to tech earnings and US-China trade optimism
Wall Street's major indexes closed at record highs on Monday for the second consecutive day as investors were optimistic about the prospects of a U.S. China trade deal. They also looked forward to an exciting week that will include high-profile earnings from the technology sector and the widely anticipated U.S. rate cut. U.S. president Donald Trump and his Chinese equivalent Xi Jinping will meet on Thursday in order to decide on a plan that could pause the tougher U.S. duties and China's export restrictions on rare earths. This would ease market jitters about a possible trade war, and send Wall Street's VIX "fear gauge", to a month-low. During his weekend TV appearances Scott Bessent, U.S. Treasury secretary, spoke about the agreements reached after two days of talks on trade in Malaysia. These included China purchasing U.S. soya beans and rare-earths. Scott Wren of the Wells Fargo Investment Institute, St. Louis Missouri, commented that Bessent's remarks, along with the upcoming summit, boosted expectations for a easing of U.S. China tensions. The earnings of five of the "Magnificent Seven", namely Microsoft, Apple Alphabet Amazon and Meta, will be released later this week. This will test the durability of the rally in the stock market, which is largely based on the optimism surrounding growth and capital expenditures relating to artificial intelligence. Wren said that "the market expects to see confirmation of all the AI CapEx, revenues and profits coming from AI," with five out of seven Mag Seven reports reporting this week. Preliminary data shows that the S&P 500 rose 82.92, or 1.2%, to 6,874.61 while the Nasdaq Composite grew 431.22 or 1.86% to 23,636.09. The Dow Jones Industrial Average gained 333.87, or 0.71% to 47,540.99. Communication services, consumer discretionary, and technology are all major S&P 500 sectors that have seen a sharp rise. Materials and consumer staples were the laggards. The Philadelphia SE Semiconductor Index has reached a new record high. Qualcomm's shares soared after the company announced two AI chips that will be available in data centers next year. Nvidia, the leader in AI chips, also rose. On the same day, shares of Chinese companies listed in the U.S., including Alibaba Group Holdings, JD.com Holdings, PDD Holdings, and Baidu, also rose. FED RATE FULLY PRICED IN The Federal Reserve's rate-cutting plans are all but set after last week's lower inflation figures. Investors will be watching Jerome Powell for any clues about a December cut as the U.S. shutdown delays key data releases. Keurig Dr Pepper shares rose after raising $7 billion in order to finance the purchase of Dutch coffee giant JDE Peet’s. Lululemon's shares rose after it announced a partnership to launch a clothing collection with the National Football League. Janus Henderson's shares rose after the company confirmed that it had received an acquisition offer from Trian and General Catalyst. After President Javier Milei won the election, shares of Argentine firms listed in the U.S. soared. Reporting by Sinead carew in New York and Pranav Kashyap in Bengaluru. Editing by Pooja desai, Devika syamnath, and Richard Chang.
Gold rates hover near 1-month peak on renewed rate-cut hopes
Gold rates were stable on Thursday after hitting their greatest levels in more than a month, as softer U.S. core inflation information lifted expectations of interest rate cuts, although news of a ceasefire accord between Israel and Hamas capped more gains.
Spot gold held its ground at $2,696.30 per ounce, as of 0301 GMT, after hitting its highest point because Dec. 12 previously in the session. U.S. gold futures gained 0.3% to $ 2,725.20.
Relieving underlying inflation in the U.S. renewed hopes of a. less limiting Fed policy this year. The core inflation. suddenly slowed, while heading consumer prices showed no. substantial upside surprises, stated Jigar Trivedi, senior. expert at Dependence Securities.
That supported bullion demand as development in disinflation. could prompt the FOMC to ease financial policy, decreasing the. opportunity cost of holding non-yielding assets.
Concerns continue over prospective tariffs from U.S. President-elect Donald Trump's incoming administration, which. might even more exacerbate inflationary pressures.
Reserve bank authorities said information released on Wednesday. showed U.S. inflation was continuing to alleviate even as they noted. increased uncertainty in the coming months, as they wait for a. very first peek of the inbound Trump administration's policies.
Supporting bullion, the dollar slipped on Thursday to stand. simply off current peaks as cooling U.S. inflation information knocked. down bond yields.
The prospect of more Fed rate cuts this year increased. following the information, and rate of interest futures traders on. Wednesday were pricing in near-even chances that the U.S. central. bank would minimize rates twice by the end of this year, with the. first decrease to come in June.
In other places, Israel and Hamas reached a ceasefire and captive. contract, reducing some security appeal of the metal, Trivedi. said.
Area silver shed 0.2% to $30.61 per ounce and. palladium dropped 0.3% to $958.50. Platinum. steadied at $938.25.
(source: Reuters)