Latest News
-
Asian stocks fall on weak China data and yen firms following BOJ decision
Asian stocks fell on Thursday due to weaker than expected Chinese data and a drop in copper prices. The yen, however, firmed up after the Bank of Japan increased its inflation forecast and kept rates unchanged. The revised forecast indicated cautious optimism that Japan’s trade agreement with the U.S. will help the economy avoid a sharp downturn, and set the BOJ's interest rate hike later in the year. The yen rose 0.6% to 148.62 dollars per yen immediately after the central banks unanimously maintained short-term rates at 0.5%. The Japanese stock market showed no reaction to this decision, with the last 0.9% increase. Investors also digested a trade agreement between the U.S.A. and South Korea as well as a Federal Reserve's decision to keep rates unchanged and strong earnings by megacap tech companies. Nasdaq Futures soared by 1.2% following better-than expected earnings from Microsoft Meta Platforms. S&P futures rose 0.8% while the U.S. Dollar held steady following a two-month peak. Tony Sycamore is a market analyst with IG in Sydney. He said that both tech companies have reported "lightning fast" earnings, reporting increased revenue from cloud computing, and artificial intelligence enabled ad targeting, respectively. The broadest MSCI index of Asia-Pacific stocks outside Japan fell by 0.7% but was still on course for its fourth consecutive month gain in July. Hong Kong and China stocks led the declines following official PMI gauges showing weaker than expected economic activity in July. The Federal Reserve’s rate-setting panel voted on Wednesday 9-2 to keep interest rates unchanged for the fifth meeting in a row. Two Fed governors dissented for the first time since more than 30 years. The comments made by Fed chair Jerome Powell after the decision undermined confidence that borrowing rates would start to drop in September. The dollar index stood at 98.812, which was just a little below the two-month peak of 99.987 that it reached on Wednesday. The index will clock its first gain in 2025, a 3.1% increase for the month. "Despite the Federal Reserve's recent decision to hold rates at the same level, there is still a chance that they will cut them at future meetings as they weigh the softening of economic data against the possibility of persistent inflation," Manusha Samanthaweera, Fixed Income Investment Director at Capital Group, said. The U.S. Gross Domestic Product growth was higher than expected during the second quarter. However, the report's details painted a picture that showed an economy in decline and plagued with uncertainty due to President Donald Trump’s protectionist policies. The Korean won increased by 0.3% following Trump's announcement that the U.S. would charge a 15 percent tariff on South Korean imports in exchange for South Korea investing $350 billion into U.S. projects, and purchasing $100 billion of U.S. Energy Products. The announcement is part of a series of deals on trade policy that were rushed to be announced before the August 1 deadline in order to avoid the imposition April 2 "Liberation Day' tariffs. Trump's tariff campaign cast a shadow over global markets. Negotiations on trade with India are still underway after Trump announced earlier that the U.S. would impose a 25 percent tariff on goods imported to the country. Copper futures fell 19% in the meantime after Trump announced that the U.S. would impose a tariff of 50% on copper pipes, wiring and other copper products. However, the details of this levy were not as comprehensive as expected, and did not include copper input materials like ores, concentrates, and cathodes. Brent crude futures, due to expire Thursday, were down by 0.19%, at $73.1 per barrel. U.S. West Texas intermediate crude, for September, was unchanged at $70.01 per barrel. The Brent October contract, the more active one, eased by 0.14% at $72.37 per barrel. (Reporting and editing by Tom Hogue, Jamie Freed and Ankur Banerjee. Additional reporting by Gregor Stuart Hunter.
-
Gold returns to 1-month high on renewed trade uncertainty
Gold prices rose on Thursday after a session low of one month, as the trade uncertainty resulting from new U.S. Tariff announcements boosted bullion's appeal. However, expectations for a U.S. interest rate cut in September dwindled. As of 0230 GMT, spot gold was up 0.5% to $3,292.24 an ounce. Bullion fell to its lowest level since the 30th of June at $3,267.79. U.S. Gold Futures dropped 0.2% to $3287. Tim Waterer, KCM Trade's Chief Market Analyst, said that gold at levels below $3,300 has drawn traders to it as a "value play", especially with the current economic uncertainty which is accompanied by Trump's secondary trade tariff threats. The U.S. president Donald Trump issued a series of announcements regarding tariffs on Wednesday. These ranged from the removal of an exemption for low-value overseas shipments to changes in levies previously announced on copper imports and Brazilian goods. Trump announced that he had reached a deal with South Korea, which included a U.S. 15% tariff on all imports. He also confirmed ongoing negotiations with India following his declaration of a 25% tariff for Indian goods on Friday. He expressed optimism in trade negotiations with China and said he expected a fair agreement to be reached. The U.S. Federal Reserve kept interest rates unchanged on Wednesday. Chair Jerome Powell’s comments dampened the expectations of rate reductions in September. In an environment of low interest rates, gold, which is often considered to be a safe haven during times of economic uncertainty, performs well. "Support in the $3,250 area is proving to be a critical level that could protect against a more significant move to the downside." Waterer stated that any breach would open the door to a drop as low as $3,200. A poll predicts that the U.S. Core PCE Index data will be released later today. It is expected to increase by 0.3% from month to month and 2.7% on an annual basis. (Reporting by Anmol Choubey in Bengaluru; Editing by Subhranshu Sahu and Eileen Soreng) Spot silver fell 0.3% to $37 an ounce. Platinum rose 0.6%, to $1320.98. Palladium gained 2.5%, to $1234.77. (Reporting and editing by Subhranshu Sahu in Bengaluru, Eileen Soreng and Anmol Choubey)
-
Data on China's factory activity shows that iron ore prices continue to fall.
The price of iron ore futures fell for the second session in a row on Thursday as weaker than expected factory activity data from China, the top consumer, raised concerns about demand. As of 0230 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 1.44% lower. It was trading at 786.5 Yuan per metric ton. As of 0220 GMT, the benchmark September iron ore traded on Singapore Exchange was down 0.75% at $100.95 per ton. An official survey released on Thursday showed that China's manufacturing activity declined for the fourth consecutive month in July. This suggests that a surge of exports in anticipation of increased U.S. duties has begun to fade, while domestic demand remains sluggish. The price of the main steelmaking ingredient fell on Wednesday, after the hopes that Beijing will announce more stimuli measures at its July Politburo Meeting that sets the economic course for next year faded. ANZ analysts wrote in a report that the policy statement from a Chinese leaders' meeting left investors underwhelmed. It included a more aggressive fiscal agenda and moderately lax monetary policies. The readout did not provide details on large-scale stimuli measures, they added. Coking coal and coke, which are both steelmaking ingredients, also fell in price, by 6.16% and 2.73 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange have fallen. Rebar fell 2.57%, while hot-rolled coils dropped 2.42%. Wire rod also lost 2.47%. Stainless steel declined 0.93%.
-
Asian stocks fall on weak China data and plunging copper price
Asian stocks fell on Thursday, after weaker than expected Chinese data and a drop in copper prices. Investors also weighed the impact of a new trade agreement between South Korea & the U.S. Investors weighed the Federal Reserve's decision to keep rates unchanged and megacap tech companies' strong earnings when determining whether or not to buy the dollar. Nasdaq Futures soared 1.2% after Microsoft and Meta Platforms reported earnings that were better than expected. S&P futures rose 0.8% while the U.S. Dollar held steady following a two-month peak. Tony Sycamore is a market analyst with IG Sydney. He said that both companies' earnings reports have "shot the lights out", reporting increased revenue from cloud computing, and AI-enabled ad targetting, respectively. The broadest MSCI index of Asia-Pacific stocks outside Japan fell 0.7% but is still on course for a fourth consecutive monthly increase in July. Hong Kong and China stocks led the declines following official PMI gauges showing weaker than expected economic activity in July. The markets are now waiting for the Bank of Japan to announce its monthly policy decision in the afternoon. Traders will be looking for any clues that Governor Kazuo ueda might give about the probability of another rate increase this year. The Federal Reserve’s rate-setting panel voted on Wednesday 9-2 to keep interest rates unchanged for the fifth meeting in a row. Two Fed governors dissented for the first time since more than 30 years. The comments made by Fed chair Jerome Powell after the decision undermined confidence that borrowing rates would start to drop in September. Citi analysts said that it would take two months for Fed officials to be convinced that tariff effects are only going to lead to modest one-time increases in prices and that the policy rate should move toward neutral. The dollar index stood at 98.812, just below the high of 99.987 that was reached on Wednesday. The index will clock its first gain in 2025, a 3.1% increase for the month. "Although Federal Reserve kept rates at their recent rate setting decision the possibility of rate reductions at upcoming meetings remains alive as they balance the softening economy data with the possible for persistent inflation," Manusha Samanthaweera, Fixed Income Investment Director at Capital Group. The U.S. Gross Domestic Product growth was higher than expected during the second quarter. However, the report's details painted a picture that showed an economy in decline due to the uncertainty caused by Trump's protectionist policy. The Korean won increased by 0.3% following Trump's announcement that the U.S. would charge a 15 percent tariff on South Korean imports in exchange for South Korea investing $350 billion into U.S. projects, and purchasing $100 billion of U.S. Energy Products. This announcement is just the latest in a long line of deals on trade policy that were rushed to be announced before the August 1 deadline, so as to avoid the impositions of "Liberation Day", April 2, tariffs. These deals continue cast a shadow over global markets. The price of copper futures fell 19.4% when Trump announced that the U.S. would impose a tariff of 50% on copper pipes, wiring and other copper products. However, the details of this levy were not as comprehensive as expected, and did not include copper input materials like ores, concentrates, and cathodes. Trump announced on Wednesday that trade negotiations with India were still in progress after previously announcing the U.S. would impose a 25 percent tariff on products imported from India. The U.S. is also going to suspend its "de minimis exemption" that allowed low value commercial shipments to ship to the United States with no tariffs. Tax breaks are a major part of China's low cost e-commerce platforms, such as Shein or PDD's Temu. Oil prices rose on Thursday for the fourth consecutive day, as investors were worried about supply shortages, amid Trump's call for a quick resolution of the Ukraine war and his threats to impose tariffs on countries that buy Russian oil. Brent crude futures, due to expire Thursday, climbed 0.33% to $73.48 a barrel, while U.S. West Texas Intermediate Crude for September rose 0.21% to $70.15 a barrel.
-
The fourth day of gains in oil prices is due to supply concerns from Trump tariffs
The oil price rose for the fourth consecutive day on Thursday as investors were worried about supply shortages in light of President Donald Trump’s call for a quick resolution to the conflict in Ukraine, and his threats against countries that buy Russian oil. Brent crude futures expiring on Thursday rose 27 cents or 0.4% to $73.51 per barrel at 0028 GMT. U.S. West Texas intermediate crude for September rose 37 cents or 0.5% to $70.37 per barrel. Both benchmarks closed 1% higher Wednesday. Brent's October contract, which is the most active, was up 29 cents or 0.4% at $72.76. Toshitaka Takawa, an analyst with Fujitomi Securities, said that the concern about secondary tariffs on countries who import Russian crude oil will restrict supplies continues to drive interest in buying. Trump announced on Tuesday that he would begin imposing measures against Russia, including 100% secondary duties on its trading partners if the country did not end the war in 10-12 days. This was a move up from an earlier deadline of 50 days. Trump announced on Wednesday that the United States was still in negotiations with India over trade, after earlier announcing the U.S. would impose a 25 percent tariff on goods imported into the country beginning on Friday. The U.S. warned China, which is the biggest buyer of Russian crude oil, it would face high tariffs if they continued to buy. The U.S. Treasury Department issued new sanctions Wednesday against over 115 Iran linked individuals, entities, and vessels. This is an indication that the Trump Administration has intensified its "maximum-pressure" campaign following the June bombing of Tehran's nuclear sites. China is the largest buyer of Iranian oil. The Energy Information Administration reported on Wednesday that U.S. crude inventories increased by 7.7 millions barrels to 426.7million barrels during the week ended July 25, mainly due to lower exports. Analysts expected a draw of 1.3 million barrels. The gasoline stocks dropped by 2.7m barrels to 228,4m barrels. This was far more than expected, which predicted a 600k barrel draw. ? Tazawa, from Fujitomi Securities, said that "U.S. inventories showed a larger than expected build in crude stock, but an even bigger gasoline draw confirmed the strong driving season demand. This resulted in a neutral effect on the oil market." (Reporting and editing by Yuka Feast; reporting by Yuka Obayashi)
-
AGL Energy, Australia's grid-scale batteries project is approved for $515 million
AGL Energy announced on Thursday that it had made a final decision to invest in a grid-scale project worth A$800,000,000 ($515,28,000,000) as part of its broader transition to cleaner energy. The Tomago Battery, which has a four-hour capacity and 500 megawatts of power, will be located in New South Wales' Hunter region. Construction is expected to start later this year and operations to begin by the end of 2027. AGL will fund the battery through its balance sheet, using a combination of operating cash flows and existing debt facilities including green capex loan. AGL has a growing portfolio of grid-scale batteries, including the operational batteries in Torrens Island, Broken Hill and the 500MW Liddell Battery, scheduled to be online early 2026. The company has announced that it has another 900 MW in its pipeline, which is nearing FID. AGL, Australia's largest power generator, has set its sights on a pivot towards flexible and renewable energy. The company's recent acquisition of South Australia’s Virtual Power Plant from Tesla shows its ambition to reach net-zero emission by 2035. In its half-yearly report, the company stated that it aimed to complete 1.4 gigawatts grid-scale storage projects in the next year.
-
Bloomberg News: California Governor seeks an additional $18 billion to fund utilities' wildfire funds
Bloomberg News reported on Wednesday that California Governor Gavin Newsom has proposed legislation to boost the wildfire fund of the state with an extra $18 billion. The plan is well-known by sources. Could not verify immediately the report. California lawmakers created the California Wildfire Fund in 2019, which is managed by the California Earthquake Authority. This fund, which has a $21 billion budget, will provide more immediate and substantial compensation to victims of certain utility-caused fires, while protecting the power companies from large claims. The report stated that electricity ratepayers will contribute half of the money via a monthly charge, while the remaining half will be funded by the utility companies who benefit from the fund. These include Edison International, PG&E, and Sempra. According to the report, the proposal is still in draft form. It may be changed. Newsom's Office said that they continue to work on a policy to stabilize California's Wildfire Fund in order to help wildfire survivors recover and protect California utility customers. Newsom's Office, Edison, PG&E, and Sempra didn't immediately respond to a?request for comment. (Reporting by Anusha Shah in Bengaluru; Editing by Himani Sarkar)
-
Trump imposes tariffs on Brazil of 50%, but excludes aircraft, OJ and energy
Donald Trump, the U.S. president, imposed a 50% tariff Wednesday on Brazilian goods in response to what he called a witch hunt against former President Jairbolsonaro. However, he softened his blow by exempting sectors like aircraft, energy, and orange juice from higher levies. This came as a welcome relief to many in Brasilia who, since Trump announced his tariff earlier in the month, had been calling for protections for major Brazilian exporters caught up in the crossfire. The shares of Embraer, a plane manufacturer, and Suzano, a pulp maker rose. The Brazilian Treasury Secretary Rogerio Ceron said to reporters that "we're not in the worst case scenario." It's a better outcome than could have been. The new tariffs are set to go into effect August 6, and not August 1, as Trump originally announced. The White House linked the tariffs in a Wednesday factsheet on Trump's executive orders to Brazil's prosecution against Trump ally Bolsonaro. Bolsonaro is currently on trial for allegedly plotting to overturn the 2022 election loss. The U.S. announced sanctions against a Brazilian Supreme Court judge overseeing Bolsonaro’s trial. They accused the judge of authorizing pre-trial detentions that were arbitrary and of suppressing freedoms of expression. Trump's executive orders formalizing a tariff of 50% excluded dozens key Brazilian exports into the United States. These included civil aircraft, pig-iron, precious metals and wood pulp as well as energy and fertilizers. Embraer stated that an initial review indicated a 10% tariff, imposed by Trump back in April, remains in effect. The exclusion applies to the additional 40 percent. Rafael Favetti is a partner in the political consultancy Fatto Inteligencia Politica, located in Brasilia. He believes that these exceptions may be a response to U.S. company concerns, and not a retreat from Trump's attempts to influence Brazilian politics. He said that "this also shows Brazilian diplomacy has done its job correctly in raising awareness among U.S. businesses." Mauro Vieira, Brazilian Minister of External Affairs, said he had met with U.S. Sec. of State Marco Rubio to reaffirm his country's willingness for negotiations on tariffs. This is a sign of a possible restart of the negotiations which stalled back in June. Vieira said that Bolsonaro’s legal problems cannot be considered in negotiations. The State Department didn't immediately respond to a comment request. A SMALLER EFFECT Welber Baral, former Brazilian Trade Secretary, estimated that Brazil exports around 3,000 different types of products to the United States. Barral stated that "there will be an effect." According to an analysis by the American Chamber of Commerce for Brazil, almost 700 products are exempt from the new tariffs. This represents 43.4% of Brazil’s total exports by value. Embraer, which exports 70% of its executive aircraft to the United States, and 45% of commercial aircraft, was a major concern for Bolsonaro’s leftist opponent, President Luiz inacio da Silva. Analysts also warned that Suzano could suffer a severe impact, as it is one of the largest wood pulp producers in the world. In Sao Paulo, Embraer's shares rose by 11% and Suzano's gained more than 1% during afternoon trading. IBP, a lobbying group for oil, said that after oil products are listed as exempted from the new tariffs, oil shipments will resume to the U.S. Ibram, the mining lobby, stated that exemptions covered 75% of all mining exports. The executive order of Wednesday did not include any exemptions for coffee or beef, two important exports to the United States. Roberto Perosa is the head of Brazilian meatpacking group Abiec. The group represents producers of beef, including JBS, Marfrig and Marfrig. Cecafe, a group of Brazilian coffee exporters, said in a press release that it would continue to work for coffee being included as an exemption. The battle over tariffs will continue as the political motivations behind them provide ammunition to the plaintiffs who have filed a lawsuit. Alex Jacquez who worked at the White House National Economic Council for former President Joe Biden said that the new tariffs are a violation of "both the law and Trump’s stated trade policy." He said that the tariffs would only increase coffee prices. "We have a large trade surplus with Brazil. These punitive duties will not rebalance unfair trade. Reporting by Luciana Magialhaes and Gabriel Araujo in Sao Paulo; Lisandra Paraguassu, Marcela Ayres and Ismail Shakil, in Brasilia; Kanishka Singh, in Washington; Manuela Andreoni, in Ottawa; Brad Haynes, Rosalba o'Brien, in Washington.
EU lawmakers criticize China for rare earth restrictions before summit
The European Parliament condemned China Thursday for its export restrictions of rare earths, and demanded that the European Union reject any attempt by Beijing to force concessions out of the bloc.
Two weeks ahead of an EU-China Summit at which rare Earths will be a major topic, EU legislators backed a resolution saying that China's actions were unjustified and had a coercive intention and that its "quasimonopolistic position" provided it with enormous leverage.
The European Parliament passed the motion with 523 votes in favor, 75 against and 14 abstentions. The motion, although not binding, is influential because the European Parliament is the only directly elected institution in the EU.
China, which produces 90% of the rare earth magnets that are used in automobiles, home appliances and other products, has imposed export restrictions since early April. Exporters must obtain licenses in Beijing.
The motion in parliament urged China, amid a trade conflict with the United States to lift restrictions. Beijing, however, had set up "green lanes" for European firms to make the process easier.
Last week in Berlin, China's foreign minister Wang Yi played down European concerns, saying that it is standard practice to restrict exports of goods with a potential military use. However, Europe's requirements could be met by submitting applications.
The EU legislators also called for the European Union's 2030 targets to be backed up with a budget and to determine minimum levels of strategic stock of rare earths. (Reporting and editing by Philip Blenkinsop, Aidan Lewis, and Milan Strahm)
(source: Reuters)