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Lukoil Finland's petrol stations will close due to US sanctions
Finnish petrol station operator Teboil is owned by Russian oil giant Lukoil and said that it was preparing to close its operations when fuel ran out due to U.S. sanction against its parent. Teboil announced that stations would close in stages once the fuel stock is sold out. The United States last week imposed sanctions on Lukoil for its involvement in the war in Ukraine. On Friday, the Trump administration gave potential buyers clearance to speak to the Russian company regarding buying their products. Non-Russian assets According to the website of Teboil, there are 430 Teboil stations in Finland. This is about one fifth of all 2,250 Teboil stations that exist in Finland. Teboil was on Monday It was expected that Lukoil would sell the chain in its ongoing efforts to sell foreign assets. Last month, the Financial Supervisory Authority of Finland warned banks and other Finnish financial institutions that they should be cautious when dealing with Lukoil or companies owned directly or indirectly by it. (Reporting and editing by Terje Solsvik, Anna Ringstrom)
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Copper prices rise as Fed rates are influenced by US job data
The price of copper edged up after a three day decline on Wednesday as investors awaited delayed U.S. employment data. However, uncertainty about the Federal Reserve’s rate decision kept gains in check. The Shanghai Futures Exchange's most active copper contract closed the daytime trading at 86,080 Yuan ($12106.72) per ton. This is a 0.17% increase. As of 0718 GMT, the benchmark three-month price for copper at the London Metal Exchange increased by 0.25%. Investors are cautiously trading ahead of the official U.S. September job data, which was delayed due to the government shutdown. This is a crucial reference for the direction of the country's interest rate policy ahead of December's Federal Reserve call. Fed officials are pushing back against the notion that a rate cut in December was a done-deal, leaving the markets uncertain about one of the main pillars which supported its previous rally. Copper was also supported by concerns about supply, which were sparked worldwide by mine interruptions. Freeport-McMoRan announced on Tuesday it will resume production in Indonesia's Grasberg Mine by July 2026. This is in line with its previous guidance. The mine was shut down after a mudslide that claimed the lives of seven workers. Freeport anticipates that copper and gold production in 2026 will be similar to levels of 2025. The stronger Chinese currency helped stabilize the market, as it made commodities priced in dollars cheaper for Chinese investors. Official data released on Tuesday showed that China's refined output of copper in October decreased 4.9% from month to month but registered an annual increase of 8.9%. Aluminium, zinc, nickel, tin, and lead were the only metals to show a loss. The LME saw a slight increase in aluminium, while lead, nickel, tin, and zinc were all up. $1 = 7.101 Chinese Yuan Renminbi (Reporting and editing by Ronojoy Mazumdar, Lewis Jackson and Tom Daly).
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Gold prices rise on risk-off sentiment ahead of Fed minutes and US jobs data
Gold prices rose Wednesday, as investors sought clues about the Federal Reserve’s interest rate path. They awaited the minutes of the Federal Reserve’s latest policy meeting. As of 0633 GMT, spot gold rose 0.5% to $4,089.59 an ounce. U.S. Gold Futures for December Delivery gained 0.6% per ounce to $4,090.30. Investors are now awaiting the minutes of the Fed's most recent meeting. These will be released in the afternoon, along with the September non-farm employment report due on Thursday, after the U.S. shutdown. The economists surveyed by expected the report to show employers adding 50,000 jobs in September. The number of Americans who received unemployment benefits reached a two-month-high in mid-October, according to data released on Tuesday. Tim Waterer, KCM Trade's Chief Market Analyst, said that the strong USD and uncertainty about the timing of the next Fed rate reduction has hampered gold's momentum. Gold has been viewed by investors as a safe play due to a recent bout of risk aversion, which has helped limit the decline. The dollar remained strong against its competitors. Gold becomes more expensive when the dollar is stronger. The global equity markets have been in a downward spiral this week. The S&P 500 is on a 4-day losing streak due to concerns over the valuations of AI stock. The U.S. Fed cut interest rates last month by 25 basis points. However, Chair Jerome Powell expressed caution about another rate reduction this year due in part to a lack of data. CME Group’s FedWatch tool shows that traders now expect a rate reduction at the Fed’s meeting on December 9-10. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Other metals rose in price as well. Spot silver increased by 1.3%, to $51.33 an ounce. Platinum added 0.5%, to $1.542.17. Palladium increased 0.8%, to $1.411.86.
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Japan's largest fire in 50 years destroys 170 buildings and kills one
On Wednesday, a fire destroyed more than 170 structures and claimed the life of one person in an area along the southern coast of Japan. Military and firefighting helicoptors were scrambling in a bid to put out this country's biggest urban fire in nearly half a century. Aerial footage broadcast by television stations showed the destruction of houses and thick smoke plumes rising from Saganoseki, a hilly district in Oita that overlooks a harbour famous for its Seki-brand premium mackerel. Local media reported that the flames also spread to nearby forested hills and an uninhabited island, more than one kilometer off the coast. This was likely caused by strong winds. Japan's Fire and Disaster Management Agency reported that the blaze began on Tuesday night and had burned 48,900 sqm - about the size of seven football fields. It forced 175 residents of the district - located 770 km (478 mi) southwest of Tokyo - to flee into an emergency shelter. The agency said that the cause of the fire is being investigated. Local media reported that a person was found dead. Police sources were cited. A woman in her fifties was hospitalised with mild burns. In a recent post on X, Japanese Prime Minister Sanae Takayi expressed her heartfelt sympathy to residents who were evacuating. She wrote: "The Government will provide maximum support in collaboration local authorities." Kyushu Electric Power reports that the fire caused power outages in around 300 homes of the district. It is the biggest urban fire in Japan, barring earthquakes. The size and number of buildings involved make it the most intense urban fire since 1976 in Sakata. A fire in Itoigawa, Japan, burned 147 structures and 40,000 square meters. There were no fatalities. (Reporting and editing by Saad Saeed; Kantaro Koiya)
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Malaysia's Tenaga Nasional suffers losses in excess of $1 billion due to crypto power theft
The energy ministry reported that Tenaga Nasional Bhd, Malaysia's national utility company, has suffered losses in excess of $1 billion due to illegal power usage from cryptocurrency miners. This was between 2020 and this August. The ministry of energy and water transformation said that TNB had found that 13,827 buildings illegally mined cryptocurrency during the period. The ministry stated that the illegal use of power for cryptocurrency mining has resulted in financial losses of approximately 4.6 billion Ringgit ($1.11billion), adding that TNB works with authorities to stop power theft. Electricity Supply Act criminalizes tampering or bypassing meters. According to the ministry, TNB was able, following joint operations, by the police, communications regulator, anti-graft agency, and other enforcement agencies, to seize bitcoin miner machines from the premises in question. TNB has created a database to help curb the issue. The database contains all records on owners and tenants who are suspected to be involved in theft of electricity for bitcoin mining. This database is used as a reference internally to monitor and identify suspicious properties and as a basis for operational inspections. The ministry also added that smart meters will be installed in electricity distribution substations, to monitor energy consumption and detect power manipulations in real-time.
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MORNING BID EUROPE - Hush over the markets before Nvidia
Tom Westbrook gives us a look at what the future holds for European and global markets. The financial markets are in a holding pattern before the earnings report of Nvidia later on Wednesday. Nvidia is near 7% of the S&P 500, which means that wherever Nvidia goes, the market goes. It reports after business hours. CPI data for Britain is due before the release. It would take an unexpectedly large increase to derail the rate cut that has been priced into the markets for December. The Asian session saw a mostly stable market for stocks, bonds, and currency. However, gains were difficult to come by, as investors waited to see if Nvidia could live up to its lofty expectations. Investors are becoming nervous about the long-term sustainability of the returns. LSEG data shows that analysts are more optimistic about the future performance of the company. Expectations for fiscal 2027 revenues have risen 15% since May, to $285 billion. The minutes of the Federal Reserve meeting in October are due on U.S. Day. They will provide a glimpse into the dynamics of the Fed's divided members, who are advocating for different policy responses to inflation data and labour statistics. The yen in Japan held steady at just above the nine-month low of Tuesday, while the central banks governor and finance ministers met. The BOJ chief last met with the ministers of finance and economic revitalization in October, last year. They warned against excessive yen drops and agreed to closely monitor market developments. The following are key developments that may influence the markets on Wednesday. - UK, euro zone inflation - Federal Reserve minutes - Earnings of Nvidia and Target
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Oil prices fall on the back of oversupply, but sanctions keep declines in check
The price of oil fell on Wednesday, as a report from the industry showed that crude inventories were higher in the U.S. Brent crude futures fell 11 cents or 0.2% to $64.78 per barrel at 0510 GMT after rising 1.1% the previous session. U.S. West Texas Intermediate Crude Futures were down by 9 cents or 0.2% at $60.65 per barrel after gaining 1.4% on Tuesday. Market sources reported late Tuesday that U.S. crude oil and fuel stockpiles rose during the past week. They cited American Petroleum Institute data. API, according to sources, reported that crude stocks increased by 4.45 millions barrels during the week ending November 14. Gasoline inventories rose by 1.55million barrels while distillate inventories rose by 577,000. The ING commodities analysts said that the overall report was "relatively bearish", but they warned that "market participants seem more concerned with supply risks than the likelihood of a future surplus." The U.S. has imposed sanctions against major Russian producers Rosneft, and Lukoil. Companies have until November 21, 2011 to end their business with these firms. On Monday, the U.S. Treasury said that sanctions have already reduced Russia's oil revenues and will eventually reduce its export volume. China and India are already switching to other suppliers of crude oil. Emril Jamil is a senior oil analyst with LSEG. He said that benchmark prices were range-bound as the market was focusing on the impact of the sanctions (November 21). However, there are also downward pressures with an oversupply feeling in the background. Investors reacted positively to the U.S. sanction and the Ukrainian attack on Russian refineries, export terminals and oil pipelines. They are now more concerned about fuel and crude disruptions. Analysts have forecast that the oil production is above current demand. This has pushed prices up. Profit margins in Europe for diesel fuel production have soared following Ukrainian attacks on Russian energy infrastructure and port infrastructure. They reached their highest level since September 2023 Tuesday. The increase in global refinery margins is causing this to happen. Analysts at Chinese brokerage Haitong Futures stated that the "strong diesel market has supported oil prices but the persistent crude supply is keeping investors cautious to chase further gains in crude." The official U.S. Government inventory data will be released on Wednesday. Eight analysts polled ahead of the data release estimated that crude inventories would likely have fallen by approximately 600,000 barrels during the week ending November 14.
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Gold prices rise as attention shifts to Fed minutes and US jobs data
Gold prices rose on Wednesday, as investors awaited the minutes of the Federal Reserve’s latest policy meeting. They also awaited the U.S. Jobs Report that may shed light on the Federal Reserve’s interest rate path. As of 0449 GMT, spot gold was up by 0.2%, at $4,074 an ounce. U.S. Gold Futures for December Delivery edged up 0.2% to $4,074.40 an ounce. Tim Waterer, Chief Market Analyst at KCM Trade, said that the strong USD and uncertainty about the timing of the next Fed rate reduction has slowed gold's momentum. Gold has been a safe play for investors due to a recent bout of risk aversion, which has helped limit the decline. The dollar rose 0.1% against its competitors. Gold becomes more expensive when the dollar is stronger. The global equity markets have been in a downward spiral this week. The S&P 500 is on a 4-day losing streak due to concerns over the valuations of AI stock. Investors are now awaiting the minutes of the Fed's most recent meeting which is due to be released in the afternoon, as well as the September non-farm employment report that will be released Thursday, after having been delayed by the recent U.S. shutdown. The economists surveyed by the expect that the report will show employers adding 50,000 jobs in the month. The number of Americans who received unemployment benefits reached a two-month-high in mid-October, according to data released on Tuesday. The U.S. Fed cut interest rates last month by 25 basis points. However, Chair Jerome Powell expressed caution about another rate reduction this year due in part to the lack data. CME Group’s FedWatch tool shows that traders now expect a rate reduction at the Fed’s meeting on December 9-10. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Silver spot rose 0.4% per ounce to $50.90, while platinum dropped 0.2% to 1,533.82 and palladium increased 0.6% to 1,409.19. (Reporting and editing by Sherry Jacque-Phillips in Bengaluru)
Iron ore reaches a two-week high due to China's firm demand and reduced supply
Iron ore futures rose to their highest level in over two weeks on Wednesday, thanks to a strong demand from China's top consumer and a falling supply in the United States.
The January contract for iron ore on China's Dalian Commodity Exchange closed the daytime session 0.76% higher, at 791.5 Yuan ($111.32), a metric tonne. It had earlier reached its highest level since November 3, at 797 Yuan.
As of 0710 GMT the benchmark December iron ore traded on Singapore Exchange had risen 0.14%, to $104.55 per ton. It hit its highest level since November 4, at $104.95.
Analysts and traders said that Chinese steel mills adopted a low inventory strategy for raw materials over the last three years, as their margins were squeezed due to falling steel prices during a prolonged property slump.
This means that mills will need to return more often to the spot market in order to replenish their cargoes, improving spot liquidity which, to some degree, acted as a cushion during a price decline.
Ge Xin is the deputy director of Lange Steel.
As a result, the hot metal production remained at a relatively high level.
Hot metal is a blast-furnace product that is used as a gauge to determine the demand for iron ore, while flat steel is usually used in manufacturing.
The lower domestic supply also supports ore prices.
Official data released on Tuesday showed that China's run-of mine, or raw ore which will be processed to concentrate and pellets, fell by 2.9% in October compared to the previous year to 84.03 millions tons.
Analysts cautioned, however, that the potential for further price increases in ore may be limited. They cited high portside inventories as well as forecasts of a growing supply of seaborne goods.
Coking coal and coke, which are used in the production of steel, both fell by 2.81% a 1.62% respectively.
The Shanghai Futures Exchange has seen a decline in the steel benchmarks.
The price of rebar fell by 0.49%. Hot-rolled coils dropped by 0.18%. Stainless steel declined 0.2%. Wire rod rose 0.55%. $1 = 7.101 Chinese Yuan (Reporting and editing by Ronojoy Mazumdar; Amy Lv, Lewis Jackson)
(source: Reuters)