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Copper prices increase as US-Iran lull calms concerns over oil and economic growth
Prices of copper rose Monday, as oil prices fell after the U.S. & Iran ended hostilities. This eased?concerns over price pressures and economic growth. Benchmark copper prices on the London Metal Exchange were up 0.6% at $13,733 per metric ton, 1606 GMT. The Pentagon has suspended its campaign against Iran after 13 nights of increasing airstrikes by the United States. Iran has been holding fire for the past two days after it had responded to each night's U.S. airstrikes with its own attacks on countries in close proximity that house U.S. military bases. As the fighting paused, oil prices fell as hopes grew of a diplomatic resolution that would allow shipping to resume in the Strait of Hormuz. Tom Price, Panmure Liberum's analyst, said that the market was waiting for a resolution. "Rather than a war in progress, it is trying to price peace," he added. "Chile was?hit with unusual storms that put pressure on the grid of the country's power supply and raised questions about the copper production guidelines?across industry." According to the U.S. Geological Survey, Chile accounted 23% or 5.3 millions tons of global mined copper production last year. The market is also focusing on the copper stocks stored in warehouses approved by LME, according to traders. Stocks have fallen 30% to 272,975 tonnes since May's end. Since February of last year, producers and traders have been shipping copper to the United States, after President Donald Trump threatened to impose import tariffs. This has created a premium on U.S. Copper?over LME Prices. The U.S. Commerce Department had to finish a review of the copper market by June 30. However, Trump has yet to announce a tariff decision. Price of Panmure Liberum said that the movement of copper to the United States would tighten short-term supplies elsewhere, because inventories are just that: "short-term supplies". The market also watched as aluminium inventories fell to their lowest levels?this century due to supply constraints in the war-torn Middle East, which forces consumers to reduce stockpiles. Lead was up 0.5%, and aluminium gained 0.2%. Zinc rose 0.5%, to $3.615, while tin rose 1.1%, to $54,380, and nickel fell 0.8%, to $17.240.
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Oil and Treasury yields fall on Iran-US truce, causing stocks to be mixed
Oil prices fell and Treasury yields declined on Monday after U.S.?and Iran stopped their strikes at the weekend. This halted?two weeks worth of attacks. News of the pause in strikes by the U.S. and Iran over the weekend raised hopes of a diplomatic solution that would de-escalate conflict and allow shipping through the Strait of Hormuz to resume. Investors, however, remained cautious as tensions remain high. Saudi Arabia, Jordan, and Iraq all reported drone strikes on Monday as Tehran seemed to be testing President Donald Trump's new strategic U-turn. Jay Hatfield is the chief executive officer and chief investment office at Infrastructure Capital Advisors, a New York-based firm. "We were of the opinion that Iran would not come to a lasting agreement but we thought they'd?kick the can down to the next day." We might see some more can-kicking. Investors are also avoiding the central bank's interest rate announcements and important tech company earnings that are due this week. U.S. crude dropped 6.35%, to $83.66 per barrel. Brent was down to $90.18 a barrel on the same day. The yield on the benchmark U.S. 10 year notes dropped?2.42 points, to 4.655% from 4.679% at late Friday. The Dow Jones Industrial Average, the largest U.S. stock market index, had the best performance, rising by 346.81 or 0.67% to 52,294.06. The S&P500 rose 1.90 points or 0.03% to 7,414.01 while the Nasdaq Composite dropped 50.57 points or 0.20% to 24,925.25. The pan-European STOXX 600 Index rose 0.35% while Europe's FTSEurofirst 300 index rose 8.08 or 0.31%. CENTRAL BRANDS? IN FOCUS It is expected that the U.S. Federal Reserve will hold rates at their current level when its two-day conference concludes on Wednesday. However, traders are concerned about a possible rate hike. The Fed's expectations have been thrown into turmoil after recent increases in oil prices rekindled inflation fears. Fed Chairman Kevin Warsh’s preference for less guidance adds to the uncertainty about whether the central banks will raise rates. Fed funds futures traders currently price in 38% odds that a hike will occur on Wednesday, and 81% of a rise by September. Bank of England's policy announcement will be made on Thursday. The Bank of Japan will follow on Friday. Both are expected keep rates unchanged while highlighting the need to remain cautious about future inflation risks. The dollar fell 0.7% to 163.73. Gold prices rose 0.42% on commodity markets to $4,069.42 per ounce. A WAVE of COMPANIES? REPORT EARNINGS Investors will also be watching the earnings of S&P 500 companies, as approximately one-third are due to report their results this week. The results of "Magnificent Seven" members Microsoft.com, Amazon.com Meta, and Apple will be viewed as a test for the AI industry. The negative cash-flow reports of Alphabet and Tesla from last week added concerns about debt-fueled spending by corporations, while the strong stock market debut of Chinese chipmaker CXMT signaled a?intensifying competitiveness for the U.S. Semiconductor Industry. This is a big week. This week could determine if hyperscalers, semiconductors and memory stocks outperform the rest of the year," Thomas Hayes said. The week's data highlights include the U.S. second-quarter advance GDP reading. Calendar highlights include the June PCE Price Index, personal income and consumption data (weekly jobless claims), the second-quarter employment cost index and the July Michigan Consumer Sentiment Survey. The Eurozone data schedule includes the flash second-quarter GDP and July consumer confidence figures, as well as the flash inflation and June unemployment numbers. Ifo Institute survey released on Monday revealed that German business morale increased more than expected in the month of July. This was due to significantly higher expectations. (Reporting and editing by Joe Bavier; Additional reporting by Sruthi Shakar, Chuck Mikolajczak Johann M Cherian Ragini Mathur Florence Tan Trixie Yap, Ragini Mathematics, Johann M Cherian)
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Gold increases as oil declines due to a pause in US/Iran strikes. Fed rate decision is in focus
Gold prices rose on Monday as the United States and Iran agreed to cease hostilities, sending crude oil prices down to their lowest level in a week, which eased inflation fears ahead of this week's U.S. rate decision. Spot gold rose by 0.9%, to $4.087.59 an ounce, at 09:43 am EDT (1343 GMT), whereas U.S. Gold Futures for August Delivery rose by 0.5%, to $4.090. The dollar index weakened by 0.1%, making greenback-priced bullion more affordable for buyers overseas. The dollar index weakened by 0.1%, making greenback priced bullion more accessible to buyers abroad. Bart Melek is global head of commodity strategies at TD Securities. He said that the oil price has dropped from $100 to $90 in just one week, which is driving down interest rates. After two weeks of strikes, the U.S. paused their?strikes at the weekend. This raised hopes of a diplomatic resolution that would deescalate this conflict and allow shipping in the Strait of Hormuz to resume. Lower energy prices reduce inflation fears and lower bets on higher interest rates for longer. Gold is often seen as a hedge to inflation but higher interest rates tend to weigh on the metal. CME FedWatch data shows that 66% of traders expect the Federal Reserve to keep interest rates at their current level. They are still pricing in a rate increase of about?79% for September. Investors are also awaiting the U.S. The Personal Consumption Spending data for June is due Thursday. This will provide further clues about monetary policy. Data from Hong Kong’s?Census and Statistics Department revealed on Monday that China's net imports of gold via Hong Kong had more than doubled in the past year, but dropped over 5% compared to?the prior month. Silver spot rose by 1.3%, to $58.92 an ounce. Platinum gained 2.3%, to $1625.31, while palladium increased 3.4%, to $1285.79. (Reporting from Noel John, Bengaluru. Editing by Tasim Zaid)
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The Russian oil tax falls short of the budget target in July
Calculations showed that the rouble-denominated oil price in Russia used to calculate taxes was averaging 19% lower than the budgeted level for the federal government this month. This added pressure to the public finances, which were already strained due heavy military expenditures. The government's Budget Portal shows that federal spending and budget deficits could be higher than official projections for 2026 by over?1 trillion (US$12.85 billion). Russia has increased its military spending dramatically to fund the war in Ukraine. Calculations showed that the tax rate on?Russian crude oil? averaged 4,406 Russian roubles per barrel between July 1 and 24, which is 1,034 roubles below the 5,440 roubles level used in 2026's budget. For the?budget revenues calculations?, the government assumed that Russian oil would cost $59 per barrel, and an exchange rate between 92.2 roubles and dollars, which is equivalent to 5,440 Roubles per barrel. The Middle East conflict has caused oil prices to fluctuate in recent weeks. Oil prices dropped 7% to a new low on Monday, after the U.S. and Iran suspended their strikes for the weekend following two weeks of attacks. This raised hopes of a diplomatic resolution that would ease tensions and allow shipping through the Strait of Hormuz to normalise. Last week, Brent crude was at $100 per barrel as the conflict disrupted oil shipments through the Strait of Hormuz. Oil spilled out into the Red Sea and hampered shipments to Asia from Saudi Arabia.
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Copper prices increase as US-Iran lull calms concerns over oil and economic growth
Prices of copper rose on Monday as oil prices dropped after the U.S. & Iran ended hostilities. This eased 'concerns over price pressures and global economic growth. Benchmark copper on the London Metal Exchange was up 0.9% at $13,770 per metric ton of official rings. The Pentagon suspended its campaign against Iran on Friday after 13 nights of increasing airstrikes by the United States. Iran has been holding fire for the past two days after it had responded to each night's U.S. airstrikes with its own strikes on neighbouring countries which host U.S. base. The oil prices fell as the pause in fighting gave rise to hopes of a diplomatic resolution that would allow shipping in the Strait of Hormuz to resume. Tom Price, a Panmure Liberum analyst, said: "The market now waits for a resolution and is trying to price in peace instead of an ongoing war." "Chile was hit by unusual storms that put pressure on the grid of power distribution and raised questions about the copper production guidelines across the industry." According to the U.S. Geological Survey, Chile accounted 23% or 5.3 millions tons of global mined copper production last year. Traders also said that the market was focused on "copper stocks" in LME approved warehouses. Stocks have fallen 30% to 272,975 tonnes since May. Since February of last year, producers and traders have shipped?copper into the United States, after President Donald Trump 'threatened tariffs on imports.' This has created a premium in U.S. Copper over LME Prices. The U.S. Commerce Department had to finish a review of the copper market?by June 30. However, Trump has not yet announced his decision on tariffs. Price of Panmure Liberum said that the movement of copper to the United States will tighten short-term supplies elsewhere, because inventories are just that: "short-term supplies". Aluminium gained 0.6% at $3180 per ton. Zinc rose 0.8% at $3,619; lead increased 0.4% to $1,894; and tin was up 1.4% at $54,545. Nickel was unchanged at $17375.
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Stocks and bonds rally as oil prices fall
The stock and bond markets around the world staged a relief rally Monday, as easing Middle East conflict sent oil prices down and eased inflation concerns ahead of an upcoming week packed with central bank meetings and earnings announcements. U.S. president?Donald?Trump has halted the two-week long bombing campaign that was launched against Iran. According to reports, U.S. officials were concerned about the depletion in air defence weapons. Iran has said that it will halt its attacks as long as U.S. officials continue to fire. Brent crude fell 7.8% to $89.41 per barrel during the lull of fighting in the Strait of Hormuz, while U.S. Crude dropped almost 7% to $83.2. STOXX 600 Europe climbed by 0.9% to close in on the all-time highs of early July. Retail and travel stocks, which are sensitive to economic conditions, rose more than 2%. However, a decline in oil stocks hurt the overall market. S&P futures increased by 0.9%, while Nasdaq Futures gained 1.4%. This positive start to Wall Street is a result of the futures. As traders reduced the probability of a rate hike by the Federal Reserve in the coming week, most major currencies rose against the dollar. The dollar fell 0.2% against yen (163.64) and the euro rose 0.2% to $1.139. Markets indicate that the U.S. Central Bank's decision will be made on Wednesday. Most analysts do not believe Chair Kevin Warsh is likely to support such a move. Since the last FOMC, the inflation, labour market, and consumption data were?all sufficiently comfortable that they prevented the need for aggressive hikes. Samy Chaar is the chief economist of Lombard Odier. He said that oil prices were closer to $70 than $100. Chaar said the relatively high oil price created a window for hawks to push rate increases at the U.S. Central Bank. "But we are not there yet." "I think it depends how long tensions persist in the Middle East," he said. Oil's decline helped the 10-year Treasury yields drop 4.3 basis points on Monday to 4.64%, further below their 18-month-old high of last week. This is the largest single-day fall in Treasury yields since June 24, and it was a result of the pullback. The yields of all European government bonds also dropped. Both the Bank of England and Bank of Japan are expected to keep their policy decisions unchanged, but remain cautious regarding inflation risks. Earnings from TECH BULLS LSEG IBES' data shows that about a third of S&P500 companies will report their results this week. Earnings are on track to increase by 26.5% over the previous year. Even blockbuster results might not satisfy investors with the high expectations and growing unease about the cost of AI capex. A report in the Wall Street Journal stated that Nvidia had been in discussions to provide an estimated $250 billion as part of OpenAI's data center project. This week, companies reporting include Microsoft, Meta Platforms and Apple, as well as a host of industrial, healthcare and defence stocks. CXMT Corp, a Chinese chipmaker, soared 466% - in its Shanghai debut, following Asia's largest IPO of the year. The U.S. second-quarter advance GDP is a data highlight. After a slow start to the year, growth should pick up to 1.5% annualised after accelerating from a soft first quarter. Weekly?jobless claim, the second quarter employment costs index, and July Michigan consumer confidence round out this week's calendar. The Eurozone's schedule includes the flash Q2 GDP (Gross Domestic Product), July economic sentiment (consumer confidence), flash inflation (inflation in a flash) and June unemployment. According to the Ifo Institute survey conducted on Monday, German business morale increased more than expected in August due to significantly better expectations. The drop in yields has helped gold prices to rise 1.1%, or $4,098.76 per ounce, on commodity markets. (Reporting and editing by Wayne Cole, Sruthi, and Sruthi Shakar; Sam Holmes, Mrigank, Dhaniwala and Amanda Cooper)
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Gold rises 1% amid US-Iran truce; oil prices are under pressure. All eyes on Fed meeting
Gold prices rose on Monday as the pause in the strikes between the United States' and Iran's forces lowered crude oil prices. This helped ease inflation fears and concerns about higher interest rates during the week that Fed policymakers will meet. Spot gold rose 1% by 1200 GMT to $4,092.87 an ounce, while U.S. Gold Futures for August Delivery rose 0.7% to $4,098.00. "Precious Metals started the week in a positive way, thanks to a pause of hostilities in the Middle East. "Oil has fallen and both the dollar yield and U.S. Treasury yields are down," said Ross Norman, an independent analyst. The U.S. Dollar Index dropped by 0.2% making greenback bullion prices more affordable to buyers abroad. Iran announced on Sunday that it would halt its attacks if the United States did the same, according to a senior Iranian official. Washington paused their bombing campaign when President Donald Trump’s advisers informed him that they were running low on targets and worried about depleting U.S. weapons. The oil prices fell more than 5% Monday, raising the hopes of a diplomatic resolution to the conflict around the Strait of Hormuz. Energy prices are rising, which is a factor that fuels inflation fears and increases expectations for higher interest rates. Gold is seen as an inflation hedge, but its non-yielding nature makes it less attractive in high interest rate environments. Investors are now looking forward to the Fed's rate decision meeting on Wednesday. About 34% of participants in the market expect a rate increase. Gold is sending cautiously positive signals. One eye on Iran and the other on Fed. Norman stated that if Warsh tries to revert the two hikes currently embedded in the curve and pushes back, it could be very supportive for gold. According to the CME FedWatch tool, traders are pricing in a '79% chance that interest rates will be raised in September. The price of spot silver increased by 1.5%, to $59.05 an ounce. Platinum rose 2.7%, to $1.631.22 and palladium gained 2.7%, to $1.277.47. (Reporting and editing by Ronojoy Mazumdar in Bengaluru, Joe Bavier, Joyjeet Das).
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Indonesia eases the bottleneck that is preventing alumina and nickel exports by easing rare-earth inspections
Indonesia's Presidential?staff Office has called for a?cooperation among government agencies, law-enforcement officials and the?industry? to resolve a regulatory void that has reportedly delayed exports of nickel and alumina products due to their rare-earth contents. Indonesia is one of the world's largest exporters of minerals, but it produces rare earths only as a minor by-product. No rules have been established yet to govern how much of these elements can be added to shipments of other mineral. Officials stated that exporters faced delays in their shipments on Monday due to the lack of clear regulations. Dudung Abdurachman, the Chief of Staff to the President, said that he had received reports about disruptions in mineral exports from "several" companies. He made this statement after he chaired a meeting between representatives of government agencies and law enforcement officials. According to two sources in the aluminium industry, exports of alumina - the main raw material used for aluminium smelting - had been?affected. One source said that the government claimed our alumina contained rare earth materials, and added?that it had an immediate impact on shipments. Two nickel industry sources confirmed that some shipments, including nickel pig iron - a critical input in stainless steel - and mixed hydroxide precipitate – used to produce materials for electric vehicle batteries - had been delayed. The sources did not specify how much material was affected. The four sources refused to identify themselves because they weren't authorized to speak with the media. RARE EARTHS Prioritised for Domestic Use Dudung stated that exports of rare earth elements, as by-products, were hindered due to a regulatory gap regarding the allowable content in rare-earth products. He did not specify which type of shipment was affected. He said that authorities, such as the military, shouldn't obstruct trade in the absence rules for rare earth by-products. He was joined by representatives of key economic ministries, the national research and development agency BRIN (National Research and Innovation Agency), the Attorney General's Office (Attorney General's Office), sovereign wealth fund Danantara as well as state mining firms, industry groups, and the police. Indonesian regulations specify that rare earths should be given priority for domestic use, and the President Prabowo Sbianto set up a separate agency to oversee their development. Trade Data Monitor data shows that the top five destinations for Indonesian alumina exports were Malaysia, India and Qatar. Singapore, China, and Singapore were also on the list. China received almost 98% Indonesian ferronickel exports during the same time period. This category includes nickel pig iron. (Reporting from Dewi Kurniawati, Tom Daly and Dylan Duan respectively in London and Shanghai; Additional reporting by Bernadette Cristina in Jakarta; Editing done by Jan Harvey).
Copper prices increase as US-Iran lull calms concerns over oil and economic growth
Prices of copper rose on Monday as oil prices dropped after the U.S. &?Iran ended hostilities. This eased concerns over price pressures and economic growth. Benchmark 'copper' on the London Metal Exchange rose 0.6% to $13,729 per metric ton as of 1427 GMT. The Pentagon suspended its campaign against Iran on Friday after 13 nights of increasing U.S. airstrikes. Iran has been holding fire for the past two days after it had responded to each night's U.S. airstrikes with its own attacks on countries in close proximity that house U.S. military bases. The oil prices fell as a result of the ceasefire in fighting, which raised the hopes of a diplomatic resolution that would allow shipping in the Strait of Hormuz to resume.
Tom Price, Panmure Liberum's analyst, said that the market was waiting for a resolution. It is pricing in peace instead of an ongoing conflict. "Chile has been hit by unusually severe storms that have put pressure on the power grid and raised questions about the copper production guidelines across the industry."
According to the U.S. Geological Survey, Chile accounted 23% or 5.3 millions tons of global mined copper production last year.
The market is also focusing on the copper stocks stored in warehouses approved by LME, according to traders. Stocks have fallen 30% to 272,975 tonnes since May's end.
Since February of last year, producers and traders have been shipping copper from the United States to the United States. This is because President Donald Trump has threatened import tariffs. The result was a premium on U.S. Copper compared to LME prices.
The U.S. Commerce Department had to finish a review of the copper market by June 30. However, Trump has yet to announce a tariff decision.
Price from Panmure Liberum said that the movement of copper to the United States would tighten short-term supplies elsewhere, because inventories are just that: "short-term supplies." Aluminium stocks have dropped to their lowest levels in the past century due to supply constraints in the war-torn Middle East. Lead was up by 0.5% and aluminium gained 0.5%. Tin rose 0.5%, while nickel fell 1.1%.
(source: Reuters)