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Trump calls the Iranian ceasefire a 'life-support' measure after Tehran's response
Donald Trump, the president of the United States, said that on Monday?the ceasefire agreement with Iran is "on life support" after he dismissed?Tehran?s response to a U.S. proposal for peace as "stupid." Trump's rejection of Iran’s response on Sunday has fuelled concerns that the 10-week conflict will continue and continue to paralyze?the Strait of Hormuz. Trump called the ceasefire "the weakest" after reading the garbage that Iran sent us. He didn't finish reading the document. "It is on life support." Iran responded on Sunday to Washington's proposal to reopen negotiations by focusing on the end of war on all fronts. This includes Lebanon, where U.S.-allied Israel fights Iran-backed Hezbollah terrorists. Tehran demanded also 'compensation for damage caused by war,' emphasized its sovereignty in the Strait of Hormuz and called on the United States to end their naval 'blockade, guarantee no more attacks, lift sanctions, and remove an oil sales ban. Trump claimed on Monday that Iran is willing to hand over "the nuclear dust" to the United States, referring to the uranium enriched stockpile of?Iran. He also said only China and the U.S. are capable of retrieving it.
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The dollar is stable and stocks are up ahead of the US-China summit, but Iran talks have reached a deadlock.
The dollar was barely changed as investors waited for a meeting between U.S. president Donald Trump & Chinese President Xi Jinping. Oil prices rose as the U.S.-Iran negotiations appeared to stall. Trump rejected Iran's response on Sunday to the U.S. proposal to hold peace talks in order to end the Middle East war, calling Tehran's requests "totally unacceptable." Iranian media reported the plan emphasized the need to end the war on all sides and lift sanctions against Tehran. It also called for reparations and the recognition of Iran's control of Strait of Hormuz as a vital energy channel. Scott Wren, Senior Global Market Strategist at Wells Fargo Investment Institute said that the Middle East was expected to be a major topic of discussion in the first face-toface meeting between Trump and Xi in over six months. Investors were anxiously awaiting the meeting. Wren said, "It is all about the Strait and when it will open." There's optimism that China can have an influence on the strait problem. Wall Street was open at 10:58 am. The Dow Jones Industrial Average rose 22.37, or 0.5%, to 49.632.29; the S&P 500 gained 19.63, or 0.2%, to 7,418.56; and the Nasdaq Composite rose 45.81, or 0.1%, to '26,293.54. The MSCI index of global stocks rose by 3.23 points or 0.29% to 1,108.86. The STOXX 600 Index fell by 0.05%. The dollar has fallen from its previous highs, after Trump's rejection of Iran's response remained concerns about a prolonged war. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.11%, falling to 97.90. At $1.178, the euro was down 0.04%. The dollar gained 0.22% against the Japanese yen to reach 156.99. The pound rose 0.03%, to $1.3636, as British Prime Minister Keir starmer tried to quell the rebellion in his Labour Party following last week's local election results. Oil prices increased on energy markets due to supply concerns as the Strait of Hormuz was largely closed. U.S. crude climbed 2.35%, to $97.66 per barrel. Brent rose to $103.80 per barrel. This is a 2.47% increase on the day. U.S. Treasury Yields edged higher on concerns over high inflation and rising oil prices. The yield on the benchmark U.S. 10 year notes increased 3 basis points from late Friday to 4,394%. Meanwhile, the 30-year bond yield rose 2.3 basis to 4.9699%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve, increased 3.1 basis points, to 3.924%. Investors weighed developments in U.S. diplomacy with Iran?and awaited important U.S. data on inflation due?later in the week. Spot gold increased by 0.21%, to $4724.34 per ounce. U.S. gold futures increased 0.15% to $4.727.70 per ounce. Earlier, optimism about AI drove Chinese stocks higher by 1.6%. Meanwhile, South Korea's KOSPI index, which is heavily influenced by chipmakers rose 4.3%. China's producer price index jumped near a four-year high. Consumer inflation also increased due to rising global energy prices. (Reporting and editing by Sinead carew, Amanda Cooper; Gareth Jones, Mark Potter, Nia Williams, Stephen Coates)
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Commodity stocks are rising as the TSX approaches its three-week high.
Canada's main stock index rose to near three-week highs ?on Monday as ?Barrick Mining jumped after stronger-than-expected ?results ?and other commodity-linked stocks climbed while investors weighed the impact of the Middle East conflict. At 10:47 am. The S&P/TSX Composite Index of the Toronto Stock Exchange was up 0.3% to 34,205.24, its highest level since April 21. As precious metals prices and oil prices increased, energy stocks, materials and gold gained. The President Donald Trump's rejection of Iran's response to the U.S. Peace Proposal fueled fears that the conflict, which has been going on for 10 weeks, would continue and paralyze shipping through the Strait of Hormuz. This could push up oil prices. Michael Dehal, Senior Portfolio Manager, Dehal Investment Partners, Raymond James, said: "The longer the strikes continue without a peace agreement,?the more damaging it is for equities because of?inflationary pressures." The benchmark index traded just below its peak of March 2, as geopolitical uncertainties and fears about an inflation spike tempered gains. The Bank of Canada did not change its key interest rates last month, but Governor Tiff MacKlem stated that if oil prices continued to rise and inflation began to increase, the Bank of Canada might have to respond by raising successive rate. According to LSEG's survey, traders expect at least a 25 basis -point increase in interest rates by the end 2026. They also see a 38% chance of a second rate rise this year. Barrick Mining jumped a whopping 7.2% and was one of the top gainers on the TSX after it beat expectations for its first-quarter profits, helped by'record gold prices. Cronos rose 7.2% after the cannabis producer’s first-quarter revenue surged by 40%. Sales in Israel and other nations, where there are no excise tax, were a major factor. (Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Joyjeet Das)
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New Automotive data indicates that Europe's investments in EVs are near 200 billion Euros.
The research group New 'Automotive reported on Tuesday that countries in the European Economic Area (EEA) and Switzerland had?committed nearly 200 billion euros ($235billion) to their electric vehicle ecosystem. The?investments highlight?the region's drive to reduce its dependence on China. According to the International Energy Agency, China will produce more than 80% all batteries in 2025. This includes those that are used outside of EVs. The commitments include between 109 and 60 billion euro in the supply chain of batteries, 23 to 46 billion euro in public charging networks with over 1 million public charging points deployed. New Automotive reported that "Europe produces batteries for about one third of the EVs sold in the United States, and capacity announced could meet future demand if fully utilised." According to New Automotive, Germany is the largest national hub for EVs in Europe, accounting for nearly a quarter of all investment. It said that "the country anchors domestic production as well as wider European value chains, with leading OEMs transforming at scale along with major international battery makers." E-Mobility Europe, a campaign group, said that the investments have already supported more than?150,000 in jobs. Another 300,000 could be created if all projects announced are implemented. Analysts and economists say that Europe will still need subsidies, protection?and more stable prices for energy to compete in the global market. "Europe's automobile production has?always? been mainly concentrated?in a handful of large countries," said Rico Luman. Senior economist at ING Research. Researchers say that despite the softer regulations, investment has held up. This is due to rising oil prices as well as a growing number of electric vehicles. After pressure from the auto industry in the region, the European Commission announced a plan to end the European Union's "effective ban" on new combustion engine?cars in 2035. This is the biggest retreat in recent years from the green policies of the bloc.
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Britain delays on debt relief for energy, with consumer debts expected to reach $9.5 billion in the next year
The government has not yet launched a scheme to pay off 500 million pounds of energy debt owed by some of Britain's most vulnerable households. However, the industry says that total arrears may reach 9 billion dollars ($7 billion) before year-end. Ministers are under pressure to increase the cost of living as energy bills are expected to rise in July. The energy watchdog Ofgem announced its Debt Relief Scheme in October last year and hoped that it would be launched as early as 2026. Before it can go into effect, the parliament must pass a law allowing energy suppliers and government departments to exchange data on which households are eligible for assistance. This could take months. The government has not yet decided whether or not to expand the data sharing powers. We are carefully evaluating responses to our consultation regarding expanding data-sharing powers that would allow the delivery of a debt relief program for energy. We will be setting out our next steps as soon as possible," said a government spokeswoman via email. She added that ministers are determined to combat the energy 'debt crisis' and help households. Ofgem has said that it will launch the scheme once approvals have been granted. "We are working to make sure that this is 'right' with the government, but ultimately it goes beyond Ofgem." Ofgem's spokesperson told a reporter via email that ministers must weigh the benefits and costs. Energy UK, a consumer group, estimates that consumer debts are around 5.5 billion pounds and will likely reach 7 billion pounds at the end of this year if no action is taken. In an email, Ned Hammond said, "Without the proper regulatory measures to help those who are already in debt and prevent others from falling into this, this crisis will grow even further." ($1 = 0.7357 pound) (Reporting and editing by Susanna Twiddale)
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In April, the share of Russian aluminium in LME stock fell to 72%.
Data showed that the share of Russian-origin aluminum stocks in London Metal Exchange (LME) warehouses dropped to 72% in April, from 92% in march, as Indian aluminium was put back on warrant. Aluminium inventories available or on warrant at the LME After a steep drop in March, the number of metric tonnes rose 23% to 332,600 in April. Last month, almost 90,000 metric tons were put back on 0#MALSTXLOC> warrant, which eased the tightness caused by the Middle Eastern conflict. LME data revealed that the share of Indian aluminum in available stocks rose from 7% to 27% by April. The amount of 'Russian metal' fell by 6,350 tons, to 241,125 tonnes in April, while the Indian aluminium stock grew by 69 325 tons, to 89 200 tons. Many traders avoid Russian steel, even though it can still be traded if made before April 13, 2020. The LME has banned metal produced in Russia since that date from its warehousing systems to comply with Western sanctions. The LME stock of?Indonesian?aluminium at the end of April was 2,275 tons. The share of Chinese copper in the LME's copper stock fell from 56% to?51%, last month. This is despite the fact that the total amount increased by?12675 tons, to 177450?tons. At the end of March, nickel from China represented 71% of LME stock. This is a decrease of one percentage point. (Reporting and editing by David Goodman, Polina Devlin)
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Sigma Lithium fined by Brazilian inspectors for using prohibited waste pile
In a press release, Brazilian labor inspectors fined Sigma Lithium after they found that the company had deposited waste into a pile which was closed because it posed a "grave" and "imminent" risk to workers and local residents. Inspectors discovered that despite three Sigma waste piles being closed last December, trucks continued to deposit waste on one of them. Sigma did not respond immediately to a comment request. The largest lithium producer in Brazil announced that it would resume mining at its flagship Grota do Cirilo Mine despite the piles having been shut down. When the piles closed late last year, an inspector reported a "partial fracture" near a nearby school in Poco Datas. This is the same waste pile Sigma has been found to be using again. The mine is Sigma's sole productive asset and has a capacity of 270,000 metric tonnes of lithium concentrate per year. The mine had been inactive for several months after Sigma fired the contractor who operated it. The Brazilian government is unsure what action it could take if the company continues to use the waste piles despite being ordered to do so. They also said that Sigma was fined for refusing to allow them to enter the worksite to assess conditions. This is something they are legally entitled to do. Inspectors could see the waste being disposed of from outside Sigma's premises. Sigma is suing the Brazilian Government to reverse the shutdown order. In legal filings, the company said that losing access to piles could have "significant economic and operational impacts" as well as jeopardizing mining activities. The?mining regulator ANM in Brazil has said that the waste heaps do not pose an imminent danger, but this does not negate the order of the labor inspectors who are independent and work under the Brazilian Labor Ministry. Reporting by Fabio Téixeira, Editing by Andrea Ricci
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Gold prices rise as markets digest US/Iran updates and await inflation data
Investors awaited the key U.S. Inflation data that is due later this week and assessed developments in 'U.S. diplomacy with Iran. As of 10:20 am EDT (1420 GMT), spot gold had risen 0.3% to $4,730.49 an ounce after having fallen over 1% in the previous session. U.S. Gold Futures increased 0.2% to $4.740.40. Jim Wyckoff of American 'Gold Exchange, a market analyst, said: "There are just some bargain hunters and positions?ahead?of the U.S. Inflation data this week." The U.S. Consumer Price Index is due to be released on Tuesday, and the Producer Price Index (PPI) will be released on Wednesday. The geopolitical situation is also a concern. President Donald Trump’s rejection of Iran’s response to the U.S. peace proposal has fueled fears that the conflict, which began 10 weeks ago, will continue to drag on and paralyze shipping through the Strait of Hormuz. This, in turn, could push oil prices up. Daniel Pavilonis is a senior market strategist with RJO Futures. He said that the markets are focused on the expectations surrounding the strait and whether it will be reopened. They also seem to be digesting a broader scenario which includes higher energy prices. Global brokerages have lowered their expectations for two U.S. rate cuts this year. They now expect a mix of easing or no cut at all by 2026, due to inflation risks and cautious policymakers. Gold is under pressure, despite its appeal as a safe haven. Higher?rates raise the opportunity cost of non-yielding investments. The markets are also closely watching Trump's visit to China, which is scheduled to take place this week. He will meet with Chinese President Xi Jinping and discuss Iran, Taiwan artificial?intelligence, nuclear weapons, and Taiwan. Shares of Indian jewellery retailers fell after Prime Minister Narendra modi asked people to refrain from buying gold for one year in order to protect their foreign exchange reserves. India is the second largest gold consumer. (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Alexander Smith and Ros Russell) (Reporting and editing by Alexander Smith, Ros Russell and Ashitha Shivaprasad from Bengaluru)
McEwen Copper hires financial firm to manage $2.4 billion loan for Argentina copper projects
Michael Meding is the vice president and general manager of McEwen Copper.
Michael Meding is McEwen Copper’s vice president and manager general. He said that the loan was part of the $4 billion total financing package for the McEwen Copper project. He refused to identify the lender, but said that an announcement will be made shortly.
In a recent interview, the executive stated that he had already signed a?agreement? with a company that handled the entire debt package with international export agencies. The project is located in the Andean Province of San Juan. Los Azules is located 3,500 meters above sea level and is one of 10 largest undeveloped copper projects in the world. It is aiming to be the first Argentine mine to produce copper cathodes.
Meding stated that the company is aiming for a split of 40-60 between equity and debt, which would mean $1.6 billion will be funded by equity.
The executive told reporters on Saturday that, in addition to the Rio Tinto he was in contact with, he also had discussions with McEwen Mining, its parent company, as well as "several major industrial groups in North America, Europe, and Asia" in order to secure $1.6 billion in financing.
Rio Tinto owns a 17.2% stake through Nuton LLC. The company has invested over $100 million in Los Azules. According to McEwen Copper's feasibility study, this technology would extend Los Azules'?life by 33 years.
Los Azules intends to start?operations in 2029 or 2030. The average production for the first five years will be approximately 204.800 metric tons per year of copper cathodes.
Meding stated that the company was also steadily progressing towards an initial public offering of?around 300 million dollars by the end of this year.
He said that "October, December, or November would be good times to do this, especially given the current copper prices and outlook."
(source: Reuters)