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Iron ore is in a tizzy as positive fundamentals offset lingering trade tensions
The iron ore futures price fluctuated on Thursday as the supply and demand dynamics were favourable in the near term, countering the intense trade tensions that clouded demand expectations. The September contract for iron ore on China's Dalian Commodity Exchange closed daytime trading 0.07% higher, at 707 Yuan ($96.79), per metric ton. The contract had reached 718 yuan earlier in the day, its highest level since April 8. As of 0700 GMT the benchmark May iron ore traded at the Singapore Exchange 0.24% lower, at $97.95 per ton. It had previously reached its highest level since April 10, at $99.25. Prices of key steelmaking ingredients are supported by the lower supply caused by bad weather in the last quarter and the strong demand for the near future. BHP Group reported a slightly lower output of iron ore in the third quarter due to cyclones. Rio Tinto, Vale and two other giants in the mining industry reported lower output and shipments for the first quarter. The data of the China Iron and Steel Association, a state-backed organization, showed that the daily crude steel production among the member steel mills in the first 10 days of April was about 2.2 million tonnes, which is 3.4% more than the previous ten-day period. China's crude output of steel in March increased by 4.6%, reaching a 10-month high at 92.84 millions metric tons. ANZ analysts noted that China's willingness to engage in trade negotiations also helped boost commodity sentiment. China unexpectedly appointed a new trade mediator on Wednesday, an important appointment that market participants interpreted positively as a possible positive signal for the escalating US tariff war. Coking coal and coke, which are used to make steel, also fell, by 2.26% and 1.69 %, respectively. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell 0.45%, while hot-rolled coils lost 0.75%. Stainless steel also declined 0.04%, and wire rod gained 0.27%. ($1 = 7.3046 Chinese Yuan) (Reporting and editing by Savio d'Souza and Mrigank dhaniwala; Amy Lv, Colleen Howe)
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Investors want to review Australia's listing regulations, saying that the James Hardie-AZEK transaction will hurt.
A group of investors called for the review of Australia's listings rules. They claimed it was "unreasonable", that companies could issue large amounts of shares without shareholder approval to fund acquisitions. Investors wrote to the Australian Stock Exchange on Wednesday, stating that James Hardie's proposed $8.75 billion purchase of AZEK would dilute the interests of existing AZEK shareholders and "irreversibly alter their rights" without a vote. Investors, including top pension funds AustralianSuper and UniSuper and institution investors Schroder Investment and Fidelity Australia, called on ASX to require shareholder approval for any share issuance over a certain threshold and for listing modifications. Some of the ASX investors are also shareholders in AZEK and James Hardie. The letter has been reviewed. They added that James Hardie's plan to move its primary listing from New York to Australia after the deal would reduce the ability of Australian shareholders to hold management accountable. AZEK shareholders can expect to receive $26.45 cash for every AZEK share, and 1.034 James Hardie stock. The deal is expected to close during the second half 2025. Investors said that a change in primary listing would permanently alter the rights of James Hardie's shareholders. There are differences between ASX and NYSE listing rules, which are harmful to James Hardie's shareholders. They said: "We believe that this transaction is a reason for ASX to re-evaluate the use of discretion in such circumstances and update ASX guidance as well as the ASX listing Rules." ASX, James Hardie, and AZEK have not responded to requests for comment. (Reporting and editing by Mrigank Dahniwala in Bengaluru. Adwitiya Shrivastava is based in Bengaluru.
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Australian shares are up on the back of mining gains, but market is looking forward to a rate cut in May
Australian shares closed higher on Thursday, as miners benefited from higher commodity prices. Domestic rate-cut bets were not deterred by the rebound in jobs. The S&P/ASX 200 Index rose by 0.7%, closing at 7,813. The benchmark index recovered from a two week losing streak caused by U.S. president Donald Trump's sweeping Tariffs. It closed the holiday-shortened weekend 1.4% higher. As iron ore prices rose on strong near-term demand, miners gained 1.5% and lifted the benchmark. BHP was the only major miner to rise 1.2%, despite a decline in third-quarter production of iron ore from Western Australia operations, which fell from 68.1 million tonnes a year ago to 67.8 millions tons. Rivals Rio Tinto and Fortescue rose by 2.5% and 0.5% respectively. The markets have already priced in the 25 basis-point rate cut that Reserve Bank of Australia will make in May, even though Australian employment rose in March. Citi analysts believe that a positive first-quarter Consumer Price Index (CPI), at the end April, will imply a reduction when the RBA meet on May 19-20. Tony Sycamore is a market analyst with IG. He said: "Given downside risks to the global economy and softer inflation profile near-term, we expect RBA to ignore today's strong jobs data and reduce rates." The energy sector's stocks increased 3.6% on the back of higher oil prices and concerns about tighter supplies. Santos grew by 3.1% after it announced that the Pikka phase one operations in Alaska could be brought forward. The benchmark S&P/NZX50 index for New Zealand ended the session with a 0.4% gain, closing at 12,118.99. Investors still expect rate cuts, as the worsening outlook for the global economy remains an overhang. (Reporting by Shivangi Lahiri in Bengaluru; Editing by Sumana Nandy)
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Wall Street Journal April 17,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. Federal Reserve Chair Jerome Powell stated on Wednesday that it may be difficult for the central bank to protect the economy from the trade war of President Trump, and predicted higher consumer prices as well as unemployment in the short term. The Trump administration has instructed the Internal Revenue Service (IRS) to begin revoking Harvard University’s tax-exempt designation. This move would end tax deductions and tax the net earnings of the university. Prologis, a warehouse-focused Real Estate Investment Trust, said President Trump's intensifying trade war with China is driving demand for U.S. Warehouse space. Clients are stockpiling, rerouting shipment and leasing additional storage to avoid new tariffs. William Oplinger, CEO of Alcoa, said that the Trump Administration's aluminum tariffs will have an annual impact on Alcoa of $100 million. A U.S. Federal Judge on Wednesday found probable reason to hold Trump Administration officials in criminal contempt after they deliberately violated a court order prohibiting the deportation of Venezuelan migrants. Chris Krebs, former senior cybersecurity official in the Trump administration, is now being investigated by the federal government on President Trump's orders. He announced his resignation from SentinelOne, and vowed to fight what he described as an unprecedented effort to silence dissent.
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Dollar and stocks are in focus as US-Japan talks take center stage
The dollar rose slightly on Thursday as traders took stock in the trade negotiations between Japan and the U.S., despite the uncertainty surrounding tariffs introduced by President Donald Trump. Gold prices reached new record highs on the back of safe-haven flows. Investors also digested comments made by Federal Reserve chair Jerome Powell who warned about the risks of slowing down growth and increasing prices due to tariffs. After a bruising trading session on Wednesday, the spotlight remained on technology stocks in light of the warnings issued by bellwethers Nvidia & ASML and ahead of TSMC's earnings. Japan's Nikkei index rose by 0.7%, while the yen fell as Japan began talks with the United States. Trump, who joined the talks unexpectedly, announced "big progress" during the talks with Ryosei Acazawa, the lead Japanese negotiator. Charu Chanana is the chief investment strategist of Saxo. He said that markets are detecting new signs of optimism in trade negotiations, as U.S.-Japan talks and China's willingness to engage in discussions have revived risk appetite. This is especially true in beaten down, trade sensitive markets. Even a discussion about a conversation can boost the markets when investors are able to move from fear to optimism. Stock markets in Asia were mixed after the U.S. closed sharply lower. South Korea's benchmark stock index increased 0.7% while Taiwan stocks declined 0.5%. European futures indicated a subdued opening. Powell also said that the Fed will wait to see more data about the direction of the economy before it makes any interest rate changes. Tom Graff is the chief investment officer of Facet. "Powell's in a tough spot," he said. "The Fed cannot act proactively to stem potential economic weakness because tariffs will likely also cause inflation." The health of the semiconductor industry will be gauged by the earnings forecast from Taiwan Semiconductor Manufacturing Co., the world's biggest contract chipmaker. The stock market took a beating on Wednesday, after Dutch giant ASML said that tariffs would increase uncertainty about its outlooks for 2025 and 26. AI pioneer Nvidia warned of a $5.5billion hit after Washington restricted the export of its AI processor designed for China. "The chipmakers' demand could be affected if there is a recession, for whatever reason, said Chris Zaccarelli. Chief investment officer at Northlight Asset Management. But there is the possibility that there could be a decrease in demand if there were tariff barriers, or if short-term costs are imposed. The blue-chip index of Chinese stocks was little changed on Thursday. Hong Kong's Hang Seng rose 1.6% led by a recovery in tech shares. TRADE TALKS Investors have focused on the fast-changing trade policies of Trump, as they wait to see whether new agreements will be reached between the U.S. Investors dumped U.S. Treasuries and other assets last week because of uncertainty about the implementation of trade levies. The Treasury market has been fairly stable this week. The benchmark U.S. 10 year Treasury yield increased by 3 basis points to 4.311%. The euro fell 0.3% to $1.1367, but it was still close to its three-year high. This was ahead of the European Central Bank's policy announcement where rate cuts are widely expected. The dollar index (which measures the U.S. Currency against six units) was slightly higher for the day, at 99.562. The yen reached a seven-month peak earlier in the session, before falling to a 0.55% lower rate of 142.64 dollars per yen after Japan's Economy Minister Ryosei Acazawa stated that foreign exchange was not discussed during the Washington trade talks. Gold prices have been the focus of commodities as they reached yet another record-high, reaching as high as 3,357.40 an ounce in the morning session, due to the safe-haven flow. Gold prices were last unchanged at $3,341.91 an ounce. The prospect of tighter supplies has helped oil prices extend their gains. Brent crude futures increased 0.93% to $66.46 per barrel. U.S. West Texas Intermediate crude rose more than 1% to $63.2 per barrel.
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Asia Gold-Indian demand is still lacking, but premiums are holding firm in China
The demand for gold in India was muted this week, as a price surge curtailed purchases. Premiums in China, the top consumer of physical gold, remained stable. Indian dealers offer a discount Up to $74 per ounce, excluding import duties and sales taxes, compared to last week's up to $33 per ounce discount. A Mumbai-based dealer from a private bullion bank said that demand has almost disappeared due to a price rally unprecedented even by bulls two to three month ago. On Thursday, the domestic gold price reached a new record of 95.894 rupees for 10 grams. A bullion dealer in Ahmedabad said that banks increased their imports at prices much lower than those of the current market. They are now offering these supplies with a significant discount. The dealer stated that "gold was imported before the Akshay Tiritiya Festival, but it now looks like the demand will be low during Akshay Tiritiya due to the price spike." Dealers in China, the top consumer, charged premiums between $15 and $21 per ounce above global benchmark spot price, compared with premiums ranging from $24 to $54 last week. Ross Norman, a independent analyst, said that "we heard demand for physical products in China remains strong despite record price levels - this is an exception to the norm, where Asian buyers are expected to be sensitive to prices." Investors sought safe havens as trade tensions between China and the U.S. escalated and global economic growth concerns increased. In Hong Kong, gold In Singapore, the price was $2.10 higher than par. Gold traded at a premium up to $2.50 an ounce over the global benchmark. In Japan, bullion Was sold at a discount of $1 for a premium of $0.5 A Tokyo-based trader said: "Local investors continue to buy gold, but their purchases are smaller than they used to be." Reporting by Anushree mukherjee from Bengaluru, and Rajendra jadhav from Mumbai. Editing by Sonia Cheema.
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Shanghai copper increases on weaker dollar and improving Chinese economy
Shanghai copper rose on Thursday as a weaker dollar and improved economic data from China, the world's largest metal consumer, boosted market sentiment. As of 0315 GMT, the most traded copper contract on Shanghai Futures Exchange (SHFE), rose 0.7%, to 76.090 yuan per ton ($10,413.02). Dollar index is near the three-year-low hit last week. This makes greenback-priced goods cheaper for buyers who use other currencies. Data released on Wednesday showed that China's economy grew by 5.4% on an annual basis in the first three months of this year, exceeding estimates. This was due to solid industrial output and consumption. Daniel Hynes is a senior commodity analyst at ANZ Bank. He said that "copper led the base-metals higher after better than expected economic data in China boosted confidence." Beijing has ordered airlines not to accept any more Boeing aircraft deliveries, and the U.S. government has limited the export of Nvidia H20 artificial-intelligence chip to China. ANZ stated in a report that if global GDP growth drops below 3% we may see a 5-10% reduction in the demand for copper. The data released by the Peruvian energy and mines minister on Wednesday showed that the copper output was almost flat in February compared to the same month last year. The benchmark copper price for the three-month period on the London Metal Exchange remained unchanged at $9,199 per metric ton. LME aluminium rose by 0.4% to a ton of $2,391.5, while lead increased 0.6% to $1,919; nickel remained at $15,690 per ton; zinc increased 1.2% to $2,612 and tin rose 1% to $31,095. SHFE aluminium rose 0.7% to 19,700 Chinese yuan per ton. Zinc fell 0.1% to 22125 yuan. Lead increased 0.2% at 16,785 yuan. Tin climbed 0.2% to 258,250 Yuan. Nickel gained 0.9% at 125,860 Yuan. ($1 = 7.3072 Chinese Yuan) (Reporting and editing by Rashmi aich in Bengaluru)
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Weekly oil price rises as US sanctions against Iran and OPEC cutbacks
The oil prices continued to rise on Thursday, as the supply was expected to be tighter after Washington imposed new sanctions to curtail Iranian oil trade. Some OPEC producers also pledged to cut their output to compensate for pumping more than agreed quotas. Brent crude futures increased 55 cents or 0.8% to $66.40 per barrel at 0321 GMT. U.S. West Texas Intermediate crude rose 66 cents or 1.1%, reaching $63.13 per barrel. The benchmarks for both currencies settled at 2% higher levels on Wednesday, their highest since April 3. They are now on course to see their first weekly increase in three weeks. Thursday is the final settlement day for the week before Good Friday and the Easter holiday. Tony Sycamore, IG's market analyst, said: "I believe the rally is due to a few factors - shorts covering and the weaker USD, which makes crude cheaper to purchase. Also, U.S. sanctions against Iran." He said that WTI may rise to $65 or $67 per barrel, but further gains could be difficult. Sycamore stated that if we assume the U.S. GDP will be flat for the next two years and the Chinese GDP will slow to somewhere in the range of 3%-4%, this is not good news for crude oil. The Trump administration issued new sanctions on Iran's oil trade on Wednesday. These included a "teapot oil refinery" in China. This is a way to increase pressure on Tehran as talks about the country's nuclear program escalate. The Organization of Petroleum Exporting Countries, (OPEC), said Wednesday that it received updated plans from Iraq, Kazakhstan, and other countries for further production cuts to compensate pumping over quotas. Michael McCarthy, CEO Moomoo, said that "these factors" could have affected sentiment – would argue that Iranian output (is) not important and that OPEC quotas are more often violated than observed. But both factors contributed to the more bullish mood. Big draws on U.S. gasoline and distillates stocks and a smaller-than-expected gain in weekly crude inventories also bolstered markets, he said. McCarthy stated that the recent drop in refining may indicate a bottleneck in supply. OPEC, International Energy Agency, and Goldman Sachs, as well as several banks including JP Morgan and Goldman Sachs, have all cut their forecasts for oil prices and growth in demand this week, despite the fact that U.S. Tariffs and retaliation by other countries has thrown global trade into chaos. The World Trade Organization has said that it expects the trade of goods to decline by 0.2% in this year. This is down from its October expectation of a 3.0% increase. (Reporting and editing by Tom Hogue; Florence Tan, Reporting)
Pakistan's Army vows to protect billion-dollar investors in the mining sector in conflict zones
The Pakistani army chief said that the country will protect investors' and partners' interests, despite increased unrest in Balochistan, a mineral-rich region.
Pakistan will host a two-day conference on mines and minerals, with delegates coming from the United States of America, China, Saudi Arabia and companies like Barrick Gold, Woods Mackenzie, among others. It wants to attract investment in its estimated $6 trillion natural reserves.
General Asim Muniz said that Pakistan's army would ensure a robust framework for security, and take proactive measures to protect partners and investors' interests and trust.
You can count on Pakistan to be a reliable and trustworthy partner.
The conference was held just weeks after insurgents kidnapped a train that carried over 400 passengers including soldiers in the volatile Balochistan region, near Iran and Afghanistan.
In the southwest province, the majority of Pakistani mines are located, including Reko Diq which is one of the largest undeveloped copper and gold deposits in the world jointly owned by Barrick Gold Pakistan and Pakistan.
Barrick Gold estimates that Reko Dig could generate free cash flow of $74 billion over 37 years.
The ethnic Baloch separatists who have been insurrecting in the area for many years oppose foreign investment, which they claim is an attempt to consolidate Islamabad's hold on regional resources through external actors.
Some of the armed groups have been fighting since decades for a larger share of local resources. But now, they say that they won't settle for less than a distinct homeland.
The Baloch Liberation Army (BLA), one of the biggest insurgent groups in the world, has claimed responsibility for the hijacking of the train, which led to the death of 23 soldiers, 3 railway employees, and 5 passengers. At least 33 other insurgents also died.
Munir stated, "We welcome foreign organisations that seek to partner with us and invest in our resources. Asif Shahzad reported. Sakshi Dayal is the writer. Mark Potter and Sudipto Ganguly edited the work.
(source: Reuters)