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Stocks rise, US Treasury yields increase on the hope of a reopening US government
MSCI's global equity index rose more than 1% Monday, while government bond yields increased on bets the U.S. shutdown would soon end. This would allow official data releases to resume and provide more clarity about the state of economy. On Sunday, the U.S. Senate advanced a measure that would end the shutdown. The shutdown is now in its fourth day and has caused federal workers to be unable to work, food aid delays, air travel problems, and the halting of economic data released by the government. Kevin Hassett, White House economist, had said earlier that day in an interview that the fourth-quarter Gross Domestic Product could be negative if there was a shutdown. The House of Representatives must approve the Senate bill and send it to the President Donald Trump. This process could take several weeks. S&P 500 ended slightly higher Friday, as Washington showed signs of progress. The S&P 500 had fallen earlier in the morning following a report stating that U.S. Consumer Sentiment slumped to an almost 3-1/2 year low due to fears about the economic fallout. Robert Pavlik said that there is a greater willingness to accept additional risk, because the possibility of a government reopening this week has increased. Right now, it's more of a relief rally. Pavlik stated that investors are concerned about anecdotal evidence "that people stay home and don't spend as much," and they are eager for the return of official economic reports to provide "hard evidence." He said that investors were increasingly focused on valuations. The Dow Jones Industrial Average rose 362.79 points or 0.77% to 47,349.89. The S&P 500 gained 100.99 points or 1.50% to 6,829.79. And the Nasdaq Composite grew 520.79 or 2.26% to 23,525.33. MSCI's global stock index rose by 13.73 points or 1.39% to 1,005.05. This is its largest one-day percentage increase since June. The pan-European STOXX 600 closed earlier up 1.42%. While the non-government data released last week stoked concerns about a weakening U.S. labour market, Federal Reserve officials have reiterated that they prefer to be cautious in further rate reductions. According to CME Group’s FedWatch tool, traders are pricing in an approximately 62% chance that the central banks will reduce rates by 25 basis point next month. Fed Governor Stephen Miran stated Monday that a rate cut of 50 basis points would be appropriate in December. He noted that the inflation rate was falling, while the unemployment rate was rising. Alberto Musalem, President of the St. Louis Federal Reserve, said that the Fed, with the inflation rate nearing 3%, a resilient economy, accommodative financial conditions, and a monetary policy at neutral levels, should "tread carefully" when it comes to further interest rates cuts. Investors favored riskier assets as they hoped for an end to government shutdown. The benchmark 10-year U.S. note yield increased by 1.5 basis points, to 4,108% from 4.093% at the end of Friday. The yield on the 2-year note, which is usually in line with Fed interest rate expectations, increased 3.2 basis points from Friday to 3.589%. Risk-sensitive currencies The Australian dollar, for example, rose against the U.S. dollar, as the risk sentiment was boosted following signs that the U.S. Government is getting closer to reopening. The Australian dollar rose 0.71% against the greenback, to $0.6538. New Zealand's Kiwi grew 0.34% to $0.5645. The Mexican peso increased 0.48% against the dollar to 18.379. The dollar gained 0.39% against the Japanese yen to reach 154, while the euro fell 0.03% to $1.1561. Bitcoin gained 1.31%, reaching $105,873.42. Safe-haven Investors bet on rate reductions after signs of economic slowdown last week, while a weaker US dollar provided support. Spot gold increased by 2.86%, to $4113.09 per ounce. U.S. Gold Futures rose by 2.72% to $4108.20 per ounce. The oil prices rose on Monday, after fluctuating between gains and losses throughout the session. Analysts remained steadfast in their predictions that the rising supply would outweigh the demand over the next few months. Meanwhile, investors increased their risk appetite as they hoped for the reopening of the U.S. federal government. U.S. crude oil settled up by 0.64% or 38 cents to $60.13 a barrel. Brent crude settled at $64.06 per barrel, up by 0.68% or 43 cents. Reporting by Sinead carew, Nell Mackenzie, and Rae Wee Editing done by Kim Coghill and Dhara Ranasinghe Clarence Fernandez Richard Chang
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Gold reaches a two-week high as weak economic data confirms bets on rate cuts
Gold prices rose nearly 3% Monday, hitting a two-week-high as weak economic data from the United States fueled expectations that the Federal Reserve would cut interest rates. This increased demand for this non-yielding investment. As of 2:21 pm, spot gold rose 2.8% to $4.111.39 an ounce. ET (1921 GMT), after reaching its highest level in more than a month earlier. U.S. Gold Futures for December Delivery rose 2.8%, settling at $4.122.00 an ounce. Peter Grant, senior metals analyst at Zaner Metals and vice president of Zaner Metals, said that "we could still see a rate cut in December" due to the weak data from last week. Last week, data showed that the U.S. economy lost jobs in October. These losses were in the retail and government sectors. Data on Friday also showed that U.S. consumer confidence dropped in early November, as consumers worried about economic fallout. According to CME Group’s FedWatch tool, the markets now expect a rate reduction in December. By January, odds will have risen to 77%. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Grant said that gold could be between $4,200 to $4,300 an ounce at the end of this year. $5,000/oz is still a realistic goal for the first quarter next year. The U.S. Senate moved ahead on Sunday on a bill aimed at reopening federal government and ending a shutdown that has now lasted 40 days. In a note, Ole Hansen said that a reopening of the market would bring back data and revive expectations for December rate cuts, but it also shifted the focus to the deteriorating fiscal outlook in the United States. Palladium rose 3.1% to 1,422.79. Platinum rose 2.4% at $1,582.50. (Reporting and editing by Will Dunham, Alan Barona and Noel John in Bengaluru)
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Buffett supports Abel, the CEO-designate; to accelerate donations
Warren Buffett endorsed Greg Abel on Monday, who will succeed him as Berkshire Hathaway chief executive in January. He also said that he would continue to hold a large number of Berkshire Hathaway shares to reassure Berkshire shareholders about the transition. Buffett said Abel "more than exceeded" his expectations, when he initially thought 63-year old Abel was CEO material. Buffett wrote, "I cannot think of anyone else I would choose to manage your and my savings, including a CEO, management consultant, academic, or government official." Buffett will remain Berkshire chairman. Buffett said that he would increase his charitable contributions to the family foundations headed by his daughter Susie and his sons Howard and Peter. He added, however, that this "in no manner reflects a change in my view about Berkshire’s prospects." Buffett donated Berkshire Stock worth more than $1.3 Billion, or the equivalent of 1,800 Class-A shares, to four foundations headed by his children. The trustees will also supervise a charitable trust which will hold nearly all the remaining Buffett wealth when he passes away. If they are unable to serve, potential successor trustees will be named.
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Nigeria's anti-graft agency has issued an arrest warrant for former oil minister Sylva on fraud charges
Nigeria's anticorruption agency announced on Monday that a warrant had been issued to arrest former Petroleum Minister Timipre Slva for allegations of conspiracy and dishonestly converting $14.86million. In a press release, the Economic and Financial Crimes Commission stated that the funds were part an investment made by the Nigerian Content Development and Monitoring Board in Atlantic International Refinery and Petrochemical Ltd to fund a refinery. Anyone with information about Sylva’s location is asked to contact the company’s offices across the country or to report to their nearest police station. Sylva was the former Petroleum Minister of Muhammadu Buhari from 2019 to 2023. The EFCC said that on November 6, a Federal High Court in Lagos had issued an arrest warrant for Sylva, granting it the authority to hold him for questioning. Sylva, the former governor of Bayelsa State, was not available for immediate comment. Justice D.I. Dipeolu instructed law enforcement agencies in order to help bring Sylva to the commission to "answer to the criminal offense he is accused of having committed", according the the court ruling. (Reporting and writing by Tife owolabi, Chijioke ohuocha, Editing by Jan Harvey).
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Stocks and US Treasury yields increase on the hope of a reopening US government
MSCI's global equity index rose on Monday, while government bond yields increased on bets the U.S. shutdown would soon end. This will allow the release of official economic data to resume. On Sunday, the U.S. Senate advanced a measure that would end the shutdown. The shutdown is now in its fourth day and has caused federal workers to be unable to work, food aid delays, air travel problems, and the halting of economic data released by the government. Kevin Hassett, White House economist, had said earlier that day in an interview that the fourth-quarter Gross Domestic Product could be negative if there was a shutdown. The House of Representatives must approve the bill if the Senate passes it. This would fund the federal government until the end of January and include three appropriations bills for the entire year. S&P 500 ended slightly higher Friday, on the back of signs of progress from Washington. The S&P 500 had fallen earlier in the morning following a report that U.S. Consumer Sentiment slumped to an almost 3-1/2 year low due to fears about the economic fallout. Robert Pavlik said that there is a greater willingness to accept additional risk, because the possibility of reopening the government this week has increased. Right now, it's more of a relief rally. Pavlik stated that investors are concerned about anecdotal evidence "people staying at home and not spending much", and they are eager for the return of official economic reports to provide "hard evidence." He said that investors were increasingly focused on valuations. As of 12:37 pm on Wall Street The Dow Jones Industrial Average The rise in the 147.51 point 47,134.61 The S&P 500 is a measure of the S&P 500 index. Rose 71.35 point 6,800.15 The Nasdaq Composite Index Rose 405.28 points 23,409.82 MSCI's global stock index .MIWD00000PUS The rise was 10.74 points 1 002,06 yen The pan-European STOXX® 600 index is a .STOXX Index gained 1.4%. The non-government data released last week stoked concerns about a weakening U.S. labour market. However, Federal Reserve officials have reiterated that they prefer to be cautious with further rate reductions. According to CME Group’s FedWatch tool, traders are pricing in an approximately 63% chance that the central banks will reduce rates by 25 basis point next month. Fed Governor Stephen Miran stated Monday that a rate cut of 50 basis points would be appropriate in December. He noted that the inflation rate is declining while the unemployment rate has been rising. St. Louis Federal Reserve president Alberto Musalem, however, said that the Fed should tread carefully when it comes to further rate cuts, as inflation is close to 3%, compared to the Fed's goal of 2%, and the unemployment rate is rising. U.S. Treasury Prices fell and yields increased as investors preferred riskier assets in anticipation of an end to government shutdown. The yield on benchmark U.S. 10 year notes US10YT=RR The underlying rate of inflation rose by 1.9 basis points, to From % Late on % On Friday, t The 30-year bond US30YT=RR >> Yield The 0.7 basis point rise to 4.7083 The 2-year Note US2YT=RR The yield is a measure of the Fed's interest rate expectations. The basis point increase was 3.4 basis points. From % Risk-sensitive currencies The Australian dollar, for example, rose against the U.S. dollar, as the risk sentiment was boosted following signs that the U.S. Government is getting closer to reopening. The Australian Dollar Strengthened 0.55% The dollar rose 0.33% against the Japanese yen to 153.91. Safe-haven The dollar index rose to its highest level since two weeks, as the weak U.S. economy data encouraged rate cuts and a weaker dollar provided support. Spot gold The rise in 2.42% 4,095.42 An ounce. U.S. Gold Futures The price of roses 2.39% 4,095.00 One ounce. Investors assessed the reopening of the U.S. Government and concerns about oversupply in the crude oil market. U.S. crude The price of the e-book rose by 0.05%. A barrel of Brent Roses Per barrel Up 0.13% On the day. (Reporting and editing by Kim Coghill and Dhara Ranasinghe)
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Gold reaches a two-week high as weak economic data reinforces rate cuts
Gold prices rose more than 2% Monday, reaching a new two-week-high as weak economic data from the United States fueled expectations that the Federal Reserve would cut interest rates. This boosted demand for this non-yielding investment. As of 11:43 am, spot gold rose 2.3% to $4.090.96 an ounce. ET (1643 GMT), after reaching its highest level in the earlier session. U.S. Gold Futures for December Delivery rose 2.2% to $4099.20 an ounce. The market is now more dovish about the Fed's expectations after some weak data from last week. "We could still see a rate cut in December," said Peter Grant. He is vice president and senior strategist for metals at Zaner Metals. Last week, data showed that the U.S. economy lost jobs in October. These losses were in the retail and government sectors. Data on Friday also showed that U.S. consumer confidence dropped in early November, as consumers worried about economic fallout. According to CME Group’s FedWatch tool, the markets now expect a rate reduction in December. By January, odds will have risen to approximately 80%. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Grant said that gold could be priced between $4,200-$4,300/oz at the end of this year. $5,000/oz is still a realistic goal for the first quarter next year. The U.S. Senate moved forward with a bill on Sunday to reopen the federal government, ending a 40-day shut down. In a note, Ole Hansen said that a reopening of the market would bring back data and revive expectations for December rate cuts, but it is more important to shift the focus on a deteriorating fiscal outlook in the United States. Palladium rose 2.2% to $1.411.33 and platinum increased 1.5% to 1,568.41. (Reporting from Noel John in Bengaluru and Pablo Sinha; editing by Will Dunham).
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US Energy Secretary says nuclear power will be the biggest user of loan office
The U.S. Energy secretary Chris Wright stated on Monday that the Department of Energy Loan Programs Office would be used most for nuclear power plants. LPO offers hundreds of billions in funding aid including loan guarantees to projects that are unable to obtain bank loans. During the first term of President Donald Trump in the White House he only used the LPO to finance reactors at Vogtle Nuclear Power Plant in Georgia. Wright said at a conference for the American Nuclear Society that "by far, the most important use of these dollars will be to build the first nuclear power plants." There are currently no commercial nuclear reactors in the United States, although several plan to reverse their permanent shut down status and open up again. Other plans include building new large and smaller reactors. Wright said that the electricity demand for artificial intelligence and data centres will generate billions of dollars in equity capital from "very reliable providers." Wright stated that the low-cost loans from the Loan Programs Office will match this financing "three to one or even four to one." (Reporting and editing by Nick Zieminski, Paul Simao, and Timothy Gardner)
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President Botswana says Botswana is taking steps to buy majority stake in De Beers
Botswana has been working to acquire a majority stake of De Beers. This was announced by President Duma Boko on Monday after Angola made a bid for control over the giant diamond firm. Botswana owns 15% of De Beers, and the company contributes 70% of their annual rough diamond production. Despite a global slump in diamond prices, which has hurt its economy, Botswana considers De Beers a strategic asset. Boko said during the State of the Nation address in Gaborone, that diamonds will remain the major contributor to growth. Boko, without revealing any further details, said that "concrete steps are being taken in order to acquire Anglo American's share in De Beers." On November 7, the mining ministers from Botswana, Angola and South Africa met in Botswana’s capital amid fears of a possible standoff between their regional allies over De Beers. Angola's Mines Ministry said that although Gaborone did not mention the rival bids, the two ministers had discussed the acquisition of shares in De Beers. However, they didn't provide any further details. Anglo American, who owns 85% De Beers shares, sells its entire stake in order to focus primarily on the clean-energy metal, copper. De Beers is valued at $4.9 billion by the global giant.
London's FTSE 100 weighed by miners and defence stocks, but set to gain weekly
The benchmark FTSE 100 index fell for a 2nd consecutive session in Britain on Friday, as heavyweight industrials and miners lost ground to consumer stocks.
As of 1045 GMT the benchmark FTSE 100 index was down by 0.1% to 9,500, but it was on track for a third week in a row of gains. The mid-caps index, which was down by 0.2% on the Friday, is heading for a loss of about 1% per week.
The aerospace and defense sector led the way in dragging down the market. It dropped 2.2%.
Rolls-Royce, which is the largest weight in the FTSE 100 index, fell by 2.1%. Melrose and BAE Systems lost 2,3% and 2.4%, respectively.
The resource-related sectors were also hit hard. Energy stocks and precious-metal miner's shares fell by 2.9% and respectively 0.9%, following the drop in gold and oil. .
Investors booked profits following the recent rally. Endeavour Mining and Fresnillo are among the worst performers in the FTSE 100.
Russ Mould said that investors often crystallized gains, but it was a question of whether this money would be invested in other areas, or pulled off the market to go bargain hunting if markets experienced a correction.
The benchmark index fell after HSBC announced its plans to privatise a Hong Kong-based bank on Thursday. This is despite the fact that it had reached record highs earlier this week.
If levels are maintained, gains in mining and utilities of base metals could keep the index positive for the entire week.
Ibstock fell 5.7% and hit its lowest level for over nine years after warning that its annual profits would fall short of expectations.
The construction sector was impacted by the stock's 1.1% decline, as it was the worst performing on the domestically focused FTSE 250.
Consumer staples companies saw gains as well, with beverage companies up 1.5% and personal care companies, drug companies, and grocery companies all up 1%.
Hays, a recruitment firm, was among the top gainers on the FTSE 250. The stock rose 5.1% following the first-quarter trading announcement. Reporting by Avinash P. and Purvi Agarwal. Editing by Shreya biswas.
(source: Reuters)