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Iron ore prices rise on China's plan to reduce port fees
Iron ore futures were up on Tuesday, as the proposed reductions in Chinese port fees should discourage long-term storage. The January contract for iron ore on China's Dalian Commodity Exchange(DCE) rose 0.51%, to 794 Yuan ($111.90) per metric ton. By 0709 GMT, the benchmark December iron ore contract on Singapore Exchange was up 0.59% at $105.65 per ton. China has proposed lowering port fees for state owned enterprises that hold cargoes less than 30 days. ANZ analysts say this move would discourage long-term inventory stockpiling, accelerate inventory turnover and possibly tighten spot supply during periods when restocking is taking place. Galaxy Futures analysts said that a structural shortage in iron ore fines PB (Pilbara blend) will support steel prices for the short-term, but a rapid drop in domestic demand in the mid-term is likely to have a negative impact on iron ore. China's steel price pressure is likely to continue for the foreseeable, as the winter season slows down demand and inventories of finished steel remain high. This was stated by the China Iron & Steel Association in its most recent monthly report. The mood was also boosted on Tuesday as U.S. president Donald Trump declared that ties with China were "extremely solid" after a phone call with Chinese leader Xi Jinping. This came weeks after a South Korean meeting where they had agreed on a framework of a trade agreement which has not yet been finalised. The DCE also showed mixed results for other steelmaking ingredients, with coking coke and coking coal both up. Mysteel, a consultancy, said that the moderate increases in coke produced by China's Shanxi Province, which is the largest coke producing hub of China, were driven by higher profits from cheaper coal. The benchmarks for steel on the Shanghai Futures Exchange have increased. Rebar increased by 0.71%. Hot-rolled coils rose 0.64%. Wire rod increased 0.36%. Stainless steel gained 0.65%.
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Gold reaches a new high after Fed comments renew rate-cutting bets
Gold rose on Tuesday, reaching its highest level in over a week. This was despite a strong dollar after Federal Reserve policymakers' dovish remarks revived the prospects of an American rate cut in December. Gold spot rose 0.1%, to $4,141.49 an ounce, by 0631 GMT. This is the highest price since November 14. It follows a 1.8% increase on Monday. U.S. Gold Futures for December Delivery were 1.1% higher, at $4.139.10 an ounce. Kelvin Wong, senior market analyst at OANDA, said that gold prices recovered in the short-term due to expectations of a rate reduction. Market participants will be watching any data related to demand in the U.S. with more interest, right now, as they want to know if the Fed's concerns about a softening demand, which could be the labor market, retail sales or consumer confidence, are greater than the so-called "sticky inflation situation." Fed Governor Christopher Waller stated on Monday that the job market was weak enough to warrant a further quarter-point cut in rates for December. However, any action beyond this depends on upcoming data, which has been delayed due to the shutdown of government. Waller's remarks come after New York Fed president John Williams stated on Friday that U.S. rates of interest could fall "in a near term." According to the CME FedWatch tool, investors now price in an 81% probability of a rate reduction in December. This is up from 40% last weekend. Gold that does not yield tends to perform well in an environment of low interest rates. This week, the Fed will release key economic data that was delayed due to the government shutdown. These include U.S. retail sale, unemployment claims, and producer prices. Gold priced in dollars has seen gains capped as the dollar held near its six-month-highs from last week. The price of spot silver was unchanged at $51.43 an ounce. Platinum rose by 0.7% to 1,553.65, while palladium increased by 0.3% to 1,399.96. (Reporting and editing by Subhranshu sahu, Ronojoy Mazumdar, and Ishaan arora)
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Asian stocks rise as US interest rate cuts return to focus
The Asian stock markets rose on Tuesday, as investors bought global technology stocks and shrugged off fears that the sector is becoming overheated. The broadest MSCI index of Asia-Pacific stocks outside Japan rose 0.75%, led by tech stocks. This was a partial recovery of last week's losses of 4%. The index is set to post its first monthly drop since March. The European futures were down 0.2%, which indicates a soft opening. The yield on 10-year Treasury bills was unchanged at 4,038%. The two-year rate, which increases with traders' expectation of higher Fed Fund rates, was stable at 3,495% during Asian hours, after dropping 2.5 basis point in the previous session. Nikkei, the Japanese stock market index, was only up 0.1% on February 2nd after a good start on its return to trading on Monday. Last week, the index fell 3.5% as markets were gripped by a wave of fear. The Hang Seng Index in Hong Kong was 0.6% higher Tuesday, while the CSI300 Index in China was 1.1% higher. After Fed Governor Christopher Waller stated that available data indicated the U.S. employment market is still weak enough to warrant a further quarter-point reduction in interest rates, it's likely we will see a rate cut. According to CME's FedWatch Tool the markets are now pricing in a 85.1% probability of a 25 basis point cut at the December meeting. This is up from 42.4% one week ago. The U.S. central bank will be meeting on December 9-10. The dollar has been largely unaffected by the sudden change in bets on rate cuts. After a small overnight gain, the euro bought $1.15125 at its last chance. The dollar index closed at 100.25 on Friday, holding its gains from the previous week when it rose by nearly 1%. Jack Siu is the Head of Discretionary Portfolio Management for Asia at Lombard Odier. He said that it is likely the ECB, the Swiss National Bank, and the BOJ have stopped cutting rates, and "the BOJ will be more dovish even though its next step is going be a hike." The dollar will depreciate from a perspective of interest rate differentials. Siu stated that this rebound is not sustainable. The ongoing dispute between Tokyo and Beijing continues to be in the spotlight. It is over a comment made by Japan's prime minister Sanae Takaichi in November, stating that a Chinese invasion of Taiwan would trigger a Japanese response. Takaichi spoke with Donald Trump on Tuesday after his Monday call with Chinese President Xi Jinping. She claimed that Trump had explained U.S. China relations to her. Trump announced on Monday that he will travel to Beijing, China in April. This is at the invitation from the Chinese government. The meeting proposal was seen as another sign that diplomatic and political ties between China and the United States are improving after their truce in their trade war. Marcella Chow is JPMorgan Asset Management’s market strategist. In Asian hours, Nasdaq and S&P futures both eased a little. The U.S. bond and stock markets will close on Thanksgiving Day, Thursday. They will reopen on Friday for a half-day. Brent crude futures fell 0.52% to $63.04 per barrel while U.S. Crude futures dropped 0.48% to $58.56 a barrel. Spot gold remained at $4,141 per ounce. (Reporting and editing by SonaliPaul; Scott Murdoch)
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UK development arm makes first, $150 mln push into energy transition financing
British International Investment (BII), the UK's development financing institution, announced Tuesday that it would provide FirstRand in South Africa with a $150-million facility to help African companies reduce carbon emissions. FirstRand’s RMB and FNB business banks will channel the funding to high-emission businesses willing to adopt cleaner technology and lower-carbon practices. Transitional finance loans aim to assist heavy emitters in modifying their operations rather than restricting access to financing. According to the 2025 South African Climate Finance Landscape Study, in 2022-2023, the country raised an average annual amount of 188 billion rands ($10.4 billion). South Africa could require as much as 500 billion rand per year to achieve its climate goals. This would leave a funding gap of more than 300 billion rand. A large portion of the funding allocated today is for power projects, such as wind farms and solar farms. Only a small percentage goes to initiatives that help communities adapt to climate changes or move away from coal. Nearly 60% of funding came from domestic institutions, and commercial banks were the biggest private financiers. Stephen Priestley said, BII's managing director: "This investment is a key step in our strategy of accelerating decarbonisation wherever it matters the most."
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Russell Russell: China can help Asia's diesel market, which is tightening up.
China could help ease the tightness of diesel markets in Asia in December by increasing exports to compensate for lower shipments coming from Indian refiners due to sanctions against Russian crude. According to trading sources the exports of China's diesel could reach 4.5 million barrels by December as refiners make use of high margins to produce this transport fuel. If the December loading cargoes rise to the level expected, this would be the best month since August. It is also a big jump from the forecast of commodity analysts Kpler that November exports will total 2.76 million barrels. China has the second largest oil refinery capacity in the World, but it uses less than 80% at the major state-owned facilities, and even less for smaller independent processors. Exports are also controlled through government quotas. These are more driven by the need to ensure domestic fuel security, than by market forces which allow refiners a higher profit margin when margins increase. China's refiners may still have enough quotas to increase December exports for diesel, jet fuel and other middle-distillate fuels. China has issued quotas for 8,395 millions metric tons of diesel, jet fuel, and gasoline. This brings the total amount for the year up to 40,195 million tons. That's about the same as 41.0 million for 2024. According to data released by the government on November 18, refiners exported 29,91 million tons of these three fuels during the first ten months of this year. The quotas are available for exports of about 10,29 million tonnes of each of the three fuels in November and December. Kpler predicts that November exports for the three products will be approximately 1.58 million tonnes. While this number may increase as more cargoes arrive at the end of the calendar month, it's clear that refiners have enough remaining quotas available to boost December exports. ROBUST FUEL MARK-UPS The refining margins of diesel and gasoline are at their highest levels in two years. Singapore's profit from making a barrel gasoil (the building block of diesel) ended Monday at $24.37, down from the previous close of $25.97, as traders factored in the possibility that Chinese exports could increase next month. The spread reached $31.25 per barrel on 19 November, the highest level since 23 September and up 140% from the lowest point in 2025 at $13.05 on 25 March. Profit margins on a barrel gasoline On Monday, the price was $14.54, up from $14.42. The price of a barrel had reached $17.71 on November 14. This was the highest level since August 29, 2023. It is also almost five times higher than the lowest point in 2025, which was $3.68 on the 21st January. The recent improvement in the refining margins is partly due to the weaker exports of India. According to Kpler, shipments of jet fuel, diesel and gasoline to the South Asian country are expected to fall to 4,34 million tons by November. This will be the lowest level since April, and the lowest so far for 2025, which was 5.54 million tonnes in September. In India, several refiners have been forced to look for alternative crudes in order to replace the Russian oil they were buying at a discount before the latest U.S. sanction on Russian oil companies. India's refiners are likely to find alternative crude oil supplies, so the decline in refined product exports is only likely to be a temporary phenomenon. While there may be a market gap, China appears to be the best-positioned country to benefit from additional gasoline and diesel. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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MORNING BID - Flying blindly on a doveish wing
Ankur Banerjee gives us a look at what the future holds for European and global markets The risk-on rally that was sparked by the abrupt shift in U.S. interest rate cut bets following dovish policymakers' comments may fail in Europe, while currency markets are still wary of Tokyo intervening to support the yen. The phone-call diplomacy also came under the spotlight. Donald Trump, U.S. president, praised the "extremely solid" relationship between China and the United States on Monday after a phone call with his Chinese counterpart Xi Jinping. In their first telephone call after Tokyo's Prime Minister sparked an important diplomatic spat with China, Trump told Sanae Takaichi to "call me any time" The markets are focused on the rate developments in the United States after Federal Reserve Governor Christopher Waller stated that a quarter-point cut could be justified by the weak labor market. Investors are now expecting a rate reduction next month after Waller's comments. CME FedWatch shows that traders are now pricing an 81% probability of a reduction next month, compared to 42% one week ago. This huge swing highlights the difficulty the market has in pricing near-term rates due to the lack of economic data as a result of the longest U.S. Government shutdown which ended on November 14 The U.S. Dollar has been stable despite the steep rise in bets on rate-cuts. The yen is still near its 10-month-lows, and dangerously close to 160/dollar. There's no relief in sight, as the chatter about Tokyo officials intervening continues. The yen vigil will continue. The traders believe that a holiday-shortened week could provide Tokyo with a perfect opportunity to engage in some yen purchasing, but it may ultimately have limited impact. Shares of Novo Nordisk fell on Monday, after the obesity drugmaker revealed that its Alzheimer's studies for an older oral form of its semaglutide medication failed to slow down the progression of brain-wasting diseases. Analysts noted that investors' expectations were low for the success of the trial. However, they did not expect a prolonged market reaction. The European futures indicate a lower open as the momentum of Asian stocks slows. Investors may still be worried about last week's AI valuations. The following are the key developments that may influence Tuesday's markets: Easyjet earnings, French consumer confidence for November, Germany Q3 GDP data
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Gold reaches a new high after Fed comments renew rate-cutting bets
Gold rose on Tuesday, reaching its highest level in over a week. This was despite a strong dollar after Fed policymakers' dovish remarks revived the prospects of an American rate cut in December. Gold spot rose by 0.1% at $4,140.85 an ounce as of 0457 GMT. This is the highest level since November 14. It follows a 1.8% increase on Monday. U.S. Gold Futures for December Delivery were 1.2% higher, at $4.141.20 an ounce. Kelvin Wong, senior market analyst at OANDA, said that gold prices recovered in the short-term due to expectations of a rate reduction. Market participants will be watching any data related to demand in the U.S. with much greater interest, right now, to see if the Fed's concern about a soft demand situation, which could be the labor market, retail sale, or consumer confidence outweighs the so-called "sticky inflation situation." Fed Governor Christopher Waller stated on Monday that the job market was weak enough to warrant a further quarter-point cut in rates for December. However, any action beyond this depends on a upcoming flood data delayed by government shutdown. Waller's remarks come after New York Fed president John Williams stated on Friday that U.S. rates of interest could fall "in a near term." According to the CME FedWatch tool, investors now price in an 81% probability of a rate reduction in December. This is up from 40% last weekend. Gold that does not yield a return tends to perform well in environments with low interest rates. This week, the Fed will release key economic data that was delayed due to the government shutdown. These include U.S. retail sale figures, unemployment claims and producer prices. Gold priced in dollars has seen gains capped as the dollar remained near its six-month-highs from last week. Other metals rose in price, including spot silver, which rose by 0.2%, to $51.49 an ounce. Platinum rose 1%, to $1.559.61 and palladium rose 0.3%, to $1.399.25. (Reporting and editing by Subhranshu sahu, Ronojoy Mazumdar, and Ishaan arora)
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China launches Shenzhou-22 to Tiangong Space Station
China launched its Shenzhou-22 space mission on Tuesday to address safety concerns for the crewed spaceflight and space station program after an orbital vessel was damaged earlier this month. According to CCTV's livestream, the Shenzhou-22 took off at 12:11 pm (0411 GMT) from Jiuquan Satellite Launch Center. The spacecraft is headed to China's permanently-inhabited Tiangong station where three astronauts are currently residing. They do not have a flightworthy vessel to return them to Earth if an emergency occurs. The Shenzhou-20 was supposed to bring back three Chinese astronauts to Earth on November 5. However, it was declared unfit for flight after being docked in Tiangong and sustaining suspected debris damages. The only flight-capable vessel left, Shenzhou-21 (which had just arrived in the station late October), was deployed by the Chinese space authorities. Shenzhou-21 left Tiangong without a spacecraft six months earlier than scheduled, creating a safety concern. Shenzhou-22's arrival will eliminate this risk. China's rapid and methodical response contrasts with the United States which was forced to deal with two NASA Astronauts who were stuck on the International Space Station in the United States for nine months because of problems with the propulsion systems of the vessel that carried them. Both countries are studying each other's space technology and operational protocols as they race to land astronauts on the moon by 2030. (Reporting and editing by Jacqueline Wong, Saad Sayeed and Eduardo Baptista)
Analysis-Russian expulsion of Ukrainian troops from Kursk removes obstacle to peace
The ejection by Russia of Ukrainian troops in the Kursk area ends the largest incursion on Russian soil since World War Two. It also removes an obstacle to a peaceful settlement that Moscow had been reluctant to reach with so many hostile troops on its territory. Vladimir Putin, the President of Russia, declared a unilateral ceasefire of three days the day after Moscow announced that the Kursk operation was complete. This was to commemorate the 80th anniversary since the Soviet Union's victory in World War Two.
On condition of anonymity, two Russian sources said that the Kremlin would not accept a settlement to the war as long as Ukrainian troops are in Kursk.
Ukraine launched its most daring attack on August 6, just over two years after Russia invaded the Kursk area in 2022. Supported by drones and heavy Western weapons, the country rammed through the Russian border.
The attack was costly to Kyiv, as the Ukrainian forces claimed almost 1,400 square kilometers of Kursk at its peak.
According to Ukrainian open-source maps, Russia now controls an area of Ukraine that is roughly equal in size to the U.S. State of Pennsylvania.
Analysts say that the diverting of Kyiv forces to Kursk helped Russia accelerate its advance in eastern Ukraine.
"Essentially, Ukraine exchanged territory that it valued the most, its own, for territory it did not value and could not hold forever," said Christopher McCallion. McCallion is a fellow with Defense Priorities in Washington DC, an organization advocating a strong U.S. army with a conservative foreign policy. Ukraine, who has been retreating from Kursk for weeks, but claims to still have some active troops there, believes that the incursion distracted Russia, forcing it to deploy troops elsewhere. Kyiv said that its objectives included securing its border with Sumy and gaining territory for future peace negotiations.
Washington's shuttle diplomacy has now pushed these talks forward, but without Ukraine's bargaining chip. There are still major differences that could undermine the peace efforts of President Donald Trump. One source said that if the talks fail, Russian forces would continue to fight.
Requests for comment from the Kremlin or Ukraine's general staff were not immediately responded to.
Local officials claim that Russia has intensified its attacks on Sumy in recent weeks. This is across the border from Kursk. A Russian missile attack in the capital of Sumy killed 35 people on April 14. Russia claimed it targeted a group of Ukrainian soldiers. Volodymyr Zelenskiy, the president of Ukraine, acknowledged that Kyiv forces are now active in Russia’s Belgorod Region, also near the border. He described it as a move to protect Ukrainian towns. Russia has a few slivers across the border in Kharkiv from Belgorod. According to U.S. proposals for a peace agreement, Ukraine would regain control of all of its territory at Kharkiv while Russia would keep control of just over a fifth.
THE BATTLE FOR KURSK
The Kremlin was embarrassed by the invasion of Kursk in 1943. This was the scene of the biggest tank battle ever fought in history, between Soviet and Nazi forces.
The announcement of victory against Ukrainian troops coincides with the 80th anniversary celebration of the Soviet Union’s victory over Nazism on May 9. This gives Putin a victory to show off in front of dignitaries such as Luiz Inacio Lula Da Silva from Brazil and China's Xi Jinping.
According to Russian sources, despite warnings of an imminent attack, the Russian forces were caught off guard by the Ukrainian assault.
Russian officials spoke at the time of chaos, as Russians fled to the east and the Russian border guards and army attempted to combat small, highly mobile Ukrainian unit speeding along country roads in Kursk with Western weapons and vehicles.
A minimum of 120,000 people had to be evacuated. Putin, visibly incensed, was seen publicly scolding Alexei Smirnov who, at the time, was the governor of Kursk. He was arrested on April charges of embezzling money intended for border defense. He denies these charges. The size of the Russian military operations was impressive when I visited Kursk, Russia, in March: tanks, missiles systems, and thousands of soldiers on the move, while civilians warned of the danger of drones and missile attacks amid the air attack sirens. North Korean troops and shells helped Russia to fight back against the Russians in Kursk. Putin expressed his gratitude personally to Kim Jong Un, the leader of North Korea.
According to the Russian defence ministry, Ukrainian forces lost over 412 tanks and several thousand military vehicles in Kursk. Ukraine says that Russia has suffered over 62,000 deaths and injuries during the operation. Both sides have not released their own numbers of casualties. Both sides dispute these numbers, which are not independent.
OFFENSIVE
In August, as Ukrainian forces raced to expand their territory at Kursk in Russia, the country sent units into the area to slow down the advance and stop Ukrainian forces from reaching Kurchatov Nuclear Power Station which provides a large portion of the electricity for southern Russia.
In less than a month the front was stabilised, and Russia could counterattack.
David J. Betz is a professor at King's College London who specializes in war and the modern world. He said that there were likely some Russian generals who were embarrassed by the Ukrainian incursion.
He said that Russia has a long history of successfully defending its borders. However, unlike other countries who are able defend themselves using geography, Russia is forced to use human bodies and distance to do so.
Russian and Western sources reported that Russian forces gradually began to grind down the Ukrainian defences while Moscow deployed thousands of fibre-optic, or "fibre-optic" drones. These drones are harder to jam than any other drones.
According to Ukrainian maps, within three months Russia had reduced the area controlled by Ukraine by more than half. By February 6, this area had been reduced to just 428 square kilometers. Putin, who had been in military fatigues during the Russian invasion of Ukraine on the third anniversary, made a surprise trip to Kursk to order the top brass to continue their advance. He also suggested that Russia create a buffer along the Ukrainian border.
In March, Ukraine lost over 300 square kilometers of territory that it held in Kursk.
Valery Gerasimov is the top Russian general in charge of the war. He told Putin that Russia cleared Kursk after the last Ukrainian troops were forced out of Gornal, a village near the border.
He claimed that Ukraine had deployed 60,000 troops to Kursk during the height of the operations, which undermined its other forces. He also praised the North Korean troops who fought "shoulder-to-shoulder" with their Russian counterparts.
Gerasimov said that Russian forces "continued" to carve a buffer zone in accordance with Putin's orders, and had taken over 90 square kilometers of Ukraine's Sumy Region.
Ukrainian officials had previously claimed that Russian assault groups were in Sumy. (Reporting and editing by Guy Faulconbridge)
(source: Reuters)