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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.
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Australian financiers establish investment company to tap into strategic metals boom
Former executives of Australia's resources investor Taurus launched on Tuesday a company that could provide funding up to $500m per project in multiple strategic metals projects worldwide. This would help junior miners fill the funding gap. Benwerrin is an investment management firm that aims to boost the supply of metals like copper, which are in high demand for energy transition, data centers, and defence at a moment when the U.S., and its allies, are searching for alternatives to China, the dominant producer. "The 'why now?' There is a market crying out for investment. Martin Boland, Managing Partner at Investec, said that there are a large number of projects across many commodities. Due to U.S. regulations on fund-raising, he could not reveal how much money the firm had available to invest. However, he said that it would target junior and mid-tier miner. He said that private capital will need to fill in the void left by traditional capital providers. Interest in the sector is growing The International Finance Corporation and other government institutions are increasingly seeking to work with resource investors who can help them develop high-risk mining projects. The U.S. government and Abu Dhabi announced last week that Orion Resource Partners in New York, one of the largest mining investment firms in the world, would be receiving $1.8 billion to support global mining projects and refinery. Doug Silver, the co-founder of Orion and an early architect of what is called a mine finance method known as streaming, will be working with Benwerrin as an advisor. Boland stated that the firm evaluates opportunities ranging from the low end, tens and millions of dollars to the upper half of a billion dollar range. The company will invest in the development of base metals such as copper and precious metals. It also makes investments in bulks as well as some industrial metals. However, it won't be investing in metals processing, or in frontier areas such as West Africa. He said, "Africa remains a very attractive investment for us. But we are probably investing a little more selectively now than five years ago." Boland stated that rare earths, which are often highly complex projects with high execution risks, will not be the focus of Boland's attention. Benwerrin is named after an Aboriginal word that means "long hill". It will provide capital primarily for brownfield projects and buyout activities, which are mining sites with existing infrastructure. This can be in the form of loans, or as a return for a stream or royalty. These contracts exchange a percentage of revenue or production for funding. Franco-Nevada, a $37 billion gold mining company in North America, has made them a popular form of capital. Boland is one of the three Taurus employees who have joined Benwerrin. The team will consist of 14 specialists in various sectors, including sustainability, from Perth, Melbourne Vancouver, Toronto, and Denver. Boland stated that mining is attracting investors seeking exposure to inflation linked gains from real assets. He also said that not only certain metals are needed for battery technologies, but a wide range. The energy transition, AI demand profiles, and the need for defense - these are all factors that make people realize the importance of mined commodities. (Reporting by Melanie Burton; Editing by Sonali Paul)
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Wall St reaches new highs thanks to tech earnings and US-China trade optimism
Wall Street's major indexes hit new record highs Monday, as the excitement surrounding a possible U.S. China trade deal set a tone for a busy week of high-profile earnings from technology companies and a widely anticipated interest rate reduction. On Thursday, Donald Trump and Xi Jinping (the Chinese counterpart) will meet to discuss the future of the U.S.-China relationship. A framework This could stop the tougher U.S. Tariffs and China's export restrictions on rare earths. It would also ease market anxiety about a possible trade war, and send Wall Street's VIX "fear gauge", to a month-low. During his weekend TV appearances the U.S. Treasury Sec. Scott Bessent After two days of talks on trade in Malaysia, the United States and China had reached agreements about China purchasing U.S. soya beans and its rare earth exports. Scott Wren said that Bessent’s comments boosted the hopes of easing U.S. China tensions. He is a senior global market analyst at Wells Fargo Investment Institute, located in St. Louis. Five heavyweights " Magnificent Seven The "group" - Microsoft Apple Alphabet Amazon and Meta will test this week 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. As of 2:12 pm ET The Dow Jones Industrial Average increased 214.35, or 0.45% to 47,421.47. The S&P 500 rose 69.51, or 1.02 %, to 6,861.20, and the Nasdaq Composite gained 400.31, or 1.72 %, to 23,604.75. Communication services, consumer discretionary, and technology were the three most active sectors in the S&P 500, while materials and consumer staples lagged behind. Philadelphia SE Semiconductor Index hit a new record high, and was the last to gain 2.5%. Qualcomm's shares soared 13% following the announcement of two AI chips that will be available in data centers next year. Nvidia, the leader in AI chips, rose 2.5%. U.S. listed shares of Chinese companies rose on Monday. Alibaba Group Holdings, JD.com, and PDD Holdings all rose by more than 2%. Baidu gained 5%. FED RATE CUTS FULLY PRICED In Cooler inflation numbers last week have all but sealed the bets that the Federal Reserve will cut rates by 25 basis points on Wednesday. Investors are closely monitoring Chair Jerome Powell’s comments to get clues about a December rate cut as the U.S. shutdown delays key data releases. Tesla, among individual stocks, was up 5.7%. It was S&P 500’s second largest gain behind Nvidia. Keurig Dr Pepper shares jumped by 7% following an increase in its sales forecast. The company raised $7 billion for the purchase of Dutch coffee giant JDE Peet’s. Lululemon's shares rose by 2% following the announcement of a partnership between the company and the National Football League for the launch of an apparel collection. U.S. listed shares of Argentinean companies soared after the election victory of President Javier Milei. YPF grew by 22.5%. Banco Macro jumped 37%. Banco BBVA Argentina and Grupo Financiero Galicia both advanced by around 40%. Janus Henderson's stock soared nearly 13% following the confirmation of an acquisition proposal by Trian and General Catalyst. On the NYSE, there were 529 highs and 63 lows. On the Nasdaq 2,482 shares rose, while 2,137 fell. The ratio of advancing to declining issues was 1.16:1. The S&P 500 recorded 34 new highs for the past 52 weeks and three new lowests, while the Nasdaq Composite registered 123 highs for this period and 48 lows. Reporting by Sinead carew in New York; Pranav Kashyap, Twesha dikshit and Richard Chang in Bengaluru. Editing by Pooja desai, Devika syamnath, and Richard Chang.
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The US appeals Court overturns the fraud conviction of Iconix founder Cole
On Monday, a federal appeals court in Manhattan overturned Neil Cole's conviction for defrauding the investors of the revenue and earnings of the apparel licensing company. The 2nd U.S. The 2nd U.S. Circuit Court of Appeals ruled that Cole's conviction for eight counts and an 18-month sentence violated the Fifth Amendment of the U.S. Constitution, which prohibits a person from being tried twice in the same case. A panel of three judges ruled that Cole's conviction at a November 2022 retrial was founded on a theory rejected by a different jury in October 2021 when they acquitted Cole of conspiracy charges and were deadlocked over other charges. The court dismissed the indictment. Iconix has its headquarters in Manhattan. Iconix's portfolio includes brands such as Candie's, Danskin, Fieldcrest, Joe Boxer, London Fog, Marc Ecko, Pony, and Rocawear created by rapper Jay-Z. Cole was accused by the prosecutors of orchestrating a number of "round-trip" transactions in which a unit from Hong Kong clothing licensing company Li & Fung paid too much for certain assets with the understanding that it would receive a refund. The prosecution said that Cole inflate Iconix’s 2014 results by only reporting the inflated prices of purchase to investors. In Monday's decision, Circuit Judge Susan Carney said the original conspiracy acquittal meant the first jury must have doubted that Cole verbally engineered fraudulent "overpayments-for-givebacks" agreements. Carney wrote that "evidence of Cole's participation in these agreements was indisputably crucial to his conviction" on the charges. The Double Jeopardy Clause prevented Cole from a retrial. The Manhattan office of U.S. attorney Jay Clayton had no comments, but sent an auto-reply email invoking the government shutdown. Cole, in a statement said that he was vindicated and confident Iconix’s brand management business can be reinvented. Iconix settled U.S. Securities and Exchange Commission (SEC) accounting charges in 2019, paying $5.5 million without admitting any wrongdoing. Lancer Capital bought Iconix in 2021. U.S. Cole, 2nd U.S. Circuit Court of Appeals No. 23-7566. (Reporting and editing by Bill Berkrot in New York, Jonathan Stempel)
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Chinese firms drive aluminium expansion in Indonesia, raise surplus fears
The Chinese-led expansion in Indonesia of aluminium production is expected to lead the global market in excess next year. This will result in lower prices for the metal used widely in the transportation industry. Three new smelters backed by China are close to completion, including Xinfa-Tsingshan Juwan in Weda Bay, Taijing at the Indonesia Morowali Industrial Park and the Adaro-Lygend Kaltara Project in North Kalimantan. Indonesia exported 325.293 metric tonnes of aluminium from January to August of this year. This is up 67% compared to the same period last year. Ross Strachan is an analyst with consultancy CRU. He said, "The rate of Indonesian growth in supply will play a major role in shaping the aluminium market's balance and prices." The primary production of aluminum, which is also used for construction and packaging, will exceed 72 million tonnes this year. Goldman Sachs predicts a global surplus of aluminium in 2026, and 2,000,000 tons in the following year. Indonesia's primary production will rise from 815, 000 tons in 2020 to 1.6,000,000 tons in 2030 and 2.5,000,000 tons in 2030. In a recent note, the bank stated that "the new supply from Indonesia effectively solves the global shortage we had previously seen forming due to China reaching its smelting cap for at least this decade." Goldman predicts that aluminium prices will fall to $2,350 a metric ton by the fourth quarter 2026. This is above the 90th centile of estimated costs for smelters. It means that 90 percent of aluminium smelters will produce at costs below this level. If prices remain above that level, most smelters will be profitable. On Monday, three-month aluminium was trading at around $2.873 per metric ton. Macquarie predicts that Indonesia's primary aluminum production will push the market to a surplus of 390,000-tons next year. Macquarie, however, sees a return of deficits in the longer term when China reaches its capacity limit and demand increases. China's aluminum production is approaching its 45 million ton limit, which will put a cap on future growth.
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Hurricane Melissa, a Category 5 hurricane, begins to lashing Jamaica.
Hurricane Melissa started pounding Jamaica on Monday with fierce gusts as the U.S. National Hurricane Center upgraded it to a category 5 storm, packing sustained winds exceeding 165 mph. This is the strongest hurricane to ever hit the Caribbean island. The storm is expected to pass through Cuba, Turks and Caicos, and the eastern Bahamas. The hurricane will stay offshore and bring only minor coastal flooding and rough surf to the U.S. East Coast. According to the NHC, Melissa was still about 330 km (530 miles) southwest from Guantanamo in Cuba at noon on Monday (1600 GMT). The center reported that the hurricane was moving west at only 3 mph (5 km/h), but it would make a turn north-northeast through Jamaica on Monday night and Tuesday morning. Forecasters at the center said that the storm's slow motion over unusually tepid Caribbean waters had contributed to its growth and strength. Jamaica is now facing days of unprecedented catastrophic winds, and up to 3 feet of rainfall. The NHC stated that the damage to infrastructure, power and communications outages and isolation of communities will be severe. Authorities in Haiti and Dominican Republic, two island nations nearby, said that torrential rains have caused at least four deaths over the past few days. Damian Anderson is a teacher in Hagley Gap. This town, nestled among Jamaica's Blue Mountains, has already been cut off by impassable roads. "We can't move," Anderson, 47, said. "We're scared. "We've never experienced a multiday event before." Evan Thompson of Jamaica's Meteorological Service said that Jamaica has experienced many hurricanes, including Category 4 Gilbert in 1988. However, a direct strike from a category 5 would be unprecedented. The highest category on the Saffir Simpson scale is Category 5, with sustained winds greater than 157 mph. CUBA PREPARATIONS The eastern half of Cuba was also sacked in preparation for the expected landfall of the storm on Tuesday. Cuban authorities reported that they evacuated more than 500,000 people from coastal and mountainous regions vulnerable to strong winds and flooding. Over 250,000 people have been brought into shelters in and around Santiago de Cuba. The island's second largest city is directly under the predicted hurricane path. In eastern Cuba, schools, buses, and trains were cancelled until further notice on Monday due to the arrival of Hurricane Irma. Havana was not expected directly to be affected by the hurricane. Dave Sherwood, Havana and Zahra Burton in Kingston reported the story; Nia Williams edited it.
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Gold drops below $4,000 an ounce as US China trade progress cools demand for safe-haven gold
Gold prices dropped below $4,000 an ounce on Monday, as signs of a thawing in U.S. China trade tensions reduced bullion's appeal as a safe haven. Market participants were awaiting the Federal Reserve interest rate decision later this week. At 12:25 pm, spot gold fell 2.9% to $3.991.39 an ounce. ET (1625 GMT). U.S. Gold Futures for December Delivery were down 3.2% to $4,005.70. David Meger said that a potential U.S. China trade deal could mean fewer safe-haven investments such as gold. The price of gold reached a record-high of $4,381.21/oz in October 20. However, it fell 3.2% the following week after hints that trade tensions would be eased between the two world's largest economies. On Sunday, U.S.-China negotiators outlined a framework for an agreement to defer China's export restrictions and halt the steeper American tariffs. Donald Trump, the U.S. president, and Xi Jinping, China's premier will meet Thursday to discuss a possible trade agreement. Gold prices are also falling due to a easing of trade tensions, which had pushed the price from $3,800 up to $4,400 in the first three weeks. The market expects the Fed to cut rates by a quarter percentage point at its meeting on Wednesday. Gold is a non-yielding investment that performs best in low interest rate environments. Analysts and investors expect the yellow metal to reach new heights, possibly even $5,000/oz, but some doubt the sustainability of the recent massive rise. Capital Economics analysts lowered their gold forecast on Monday to $3,500/oz by the end of 2026. It said that the 25% increase in gold prices since August was much harder to justify than prior moves during a gold rally. Silver fell by 4%, to $46.65 an ounce. Platinum dropped 1.1%, to $1.588.71. Palladium was down 1.6%, to $1.405.56. (Reporting and editing by Mark Potter, Richard Chang and Anjana Anil in Bengaluru)
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US Department of Energy partners with AMD to develop supercomputers and AI systems worth $1 billion
Energy Secretary Chris Wright, and AMD CEO Lisa Su announced that the U.S. formed a partnership worth $1 billion with Advanced Micro Devices in order to build two supercomputers. These computers will be used to tackle scientific problems such as cancer treatment, national security or nuclear power. The U.S. builds the two machines in order to have enough supercomputers for the country to run increasingly complicated experiments, which require a huge amount of data crunching power. The machines will accelerate the scientific discovery process in the areas that the U.S. focuses on. Energy Secretary Wright stated that the systems will "supercharge" advancements in nuclear energy and fusion, technologies for national security and defense, and drug development. Scientists and businesses are working to duplicate fusion, which is the reaction that powers the sun. They do this by jamming atoms of light in a plasma under high heat and pressure, releasing massive amounts energy. Wright said, "We have made great progress but plasmas are unstable and we need a center of the Sun on Earth." The AI systems will allow us to make huge progress in the next 2 or 3 years. Wright added that the supercomputers will also be used to manage the U.S. nuclear arsenal and to accelerate drug discovery through simulations of ways to treat cancer at the molecular scale. Wright stated that he hoped to turn many cancers into manageable conditions in the next 5 or 8 years. Plans call for the construction of the first computer, called Lux, and its online launch within six months. The design will include AMD's central processors, AMD's MI355X artificial-intelligence chips and AMD networking chips. The system was developed by AMD in collaboration with Hewlett Packard Enterprise (HPE), Oracle Cloud Infrastructure, and Oak Ridge National Laboratory. AMD's Su stated that the Lux deployment is the fastest she has ever seen. Su stated that "This is what we wanted (to) do" for the U.S. AI effort. Stephen Streiffer, ORNL director, said that the Lux supercomputer would deliver three times more AI capability than current supercomputers. The second computer, called Discovery, will be built around AMD's MI430 AI chips which are optimized for high-performance computing. ORNL, HPE, and AMD will design this system. Discovery will be delivered by 2028, and ready to operate in 2029. Streiffer predicted huge gains, but could not predict the exact magnitude of computational power. Su explained that the MI430 is an MI400 variant which combines features from traditional supercomputer chips with features for running AI applications. A DOE official stated that the Department of Energy would host the computers and the companies would provide the machines. Both sides will then share the computing power. The official stated that the two supercomputers built on AMD chips were intended to be a first in a series of such partnerships with DOE labs and private industry across the nation. (Reporting and editing by Tom Hogue in San Francisco, Max A. Cherney is based in San Francisco)
Gold drops below $4,000 an ounce as US China trade progress cools demand for safe-haven gold
Gold prices dropped below $4,000 an ounce on Monday, as signs of a thawing in U.S. China trade tensions diminished some of bullion's appeal as a safe haven. Market participants awaited this week's U.S. Federal Reserve interest rate decision.
At 1:45 pm, spot gold fell 2.7% to $4,002.29 an ounce. ET (1745 GMT). The price of gold fell to $3.970.81 an ounce in the early session, its lowest level since October 10.
U.S. Gold Futures for December Delivery fell 2.9% and settled at $4,019.70.
David Meger is director of metals at High Ridge Futures. He said that a potential U.S. China trade deal could mean fewer safe-haven investments such as gold.
The price of gold reached a record-high of $4,381.21/oz in October. However, it fell 3.2% the following week after hints that trade tensions would be eased between the two world's largest economies. On Sunday, U.S.-China negotiators outlined the framework of a deal that would halt steeper American tariffs while deferring China's controls on rare-earths exports.
On Thursday, Donald Trump of the United States and Xi Jinping of China are expected to continue their discussions on a possible trade agreement.
Gold prices are also falling due to a easing of trade tensions, which had pushed the price from $3,800 up to $4,400 in the first three weeks.
The market expects the Fed to cut rates by a quarter percentage point at its meeting on Wednesday.
In a low interest rate environment, gold, which is a non-yielding investment, performs well.
Some analysts and investors are sceptical about the sustainability the recent massive rise in the price of yellow metal.
Capital Economics analysts lowered their gold forecast on Monday to $3,500/oz by the end of 2026.
It said that the 25% increase in gold prices since August was much harder to justify than prior moves during the rally.
Silver spot fell by 3.6%, to $46.50 per ounce. Platinum was down 0.4% at $1,592.03, while palladium dropped 1.8%, to $1402.98. (Reporting and editing by Mark Potter, Richard Chang and Anjana Anil in Bengaluru)
(source: Reuters)