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Russian titanium manufacturer VSMPO-AVISMA reduces working hours for some employees
VSMPO - AVISMA, the largest titanium producer in the world, announced on Monday it would switch some employees who are not directly involved with production to a 4-day work week. The company stated in a press release that it planned to move some employees, who were not directly involved in production processes but were administrative staff, onto a four-day work week. The company said that the decision was made to "maintain operational stability and preserve the highly-qualified staff of the business." The company has not stated how long these measures will be in effect. This is not an easy choice, but it allows our team to remain and we can prepare for the recovery of the market. "We consider this a temporary step and will provide additional opportunities for professional training to our employees," the company said. On October 9, it was reported that some of Russia’s largest industrial companies are putting their employees on furlough, or reducing staff. This is because the war economy has slowed down and domestic demand has stalled. VSMPO (Verkhnaya Salda Metallurgical Production Association) dates back to 1933, when it was founded to supply aluminium, and aluminium alloy, to the Soviet Union aircraft-building industry. VSMPO and Airbus received titanium from VSMPO before the launch of what Moscow refers to as its Special Military Operation in Ukraine. Canada will relax sanctions by 2024, allowing Airbus to purchase titanium from Russia. VSMPO AVISMA stated that "the company will continue to fulfill all obligations to its customers and partners by ensuring high quality products and maintaining their position as leaders in the global market for titanium". (Reporting and editing by Guy Faulconbridge, Mark Trevelyan and Anastasia Lyrchikova)
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The Gulf's most important markets are subdued due to weak oil
The major stock markets of the Gulf were sluggish in early trading on Monday due to weak oil prices. Investors also awaited further corporate earnings reports. The oil prices - a catalyst in the Gulf's Financial Markets - have been weighed down as a result of worries about a global glut. U.S.-China Trade tensions are also adding to the concerns over an economic slowdown, and a weaker demand for energy. Saudi Arabia's benchmark Index eased by 0.1% on track to extend losses from previous session. ACWA Power Company lost 2.2%. ACWA Power obtained project financing of 10.8 billion Riyals ($2.88 billion), for the expansion of Qurayyah Independent Power Plant, on Sunday. Saudi Aramco, the world's largest oil company, fell 0.3%. Saudi National Bank, the largest lender in Saudi Arabia by assets, saw its share price rise 1.4% following a 20% jump in net profit for the third quarter. Dubai's main stock index fell 0.4% due to a drop of 1.5% in the top lender Emirates NBD. The banks announced on Saturday that ENBD would buy a 60 percent stake in the Indian private lender RBL Bank. The shares of the Dubai-based bank jumped more than 6% on news of the stake acquisition last week. In Abu Dhabi the index was flat. Qatar National Bank, the Gulf's largest lender and index component, lost 0.5%.
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Vietnam Stocks Fall 5.5% to One-Month Close Low
Vietnam's main index of stocks fell 5.47% on Monday to 1,636.43, its lowest level for a month. Brokers said that they did not know what caused the decline. This was the second largest percentage drop this year after a drop of 6.43% on April 8th. The state media reported that a drop of 94.76 index points was a daily point fall record. Stocks fell across the board with SSI Securities leading the way, falling 6.99%. Steel maker Hoa Phat, down 6.96%. Saigon Thuong Tin Bank, down 6.95%. The Hochiminh Stock Exchange traded more than 1.7 billion shares worth 53 trillion Dong ($2.01billion) during the session. Four Hanoi stock brokers contacted by said that it was unclear why the market had fallen so dramatically, though one investor mentioned state media reports regarding some regulatory questions surrounding some corporate bond issues. One broker said, "I am so surprised." It looks like investors sold out in panic but it's not clear why the price fell. The market has been hit by a Record high Earlier in October, index provider FTSE Russell announced that its market might be upgraded to secondary emerging next year.
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Shanghai copper increases on strong China industrial production data
Shanghai copper gained on Monday as stronger-than-expected China industrial output last month boosted investor sentiment, even though economic growth slowed to a one-year low in the September quarter. The Shanghai Futures Exchange's most active copper contract closed the dayday trading at 85,380 Yuan ($11,986.52) metric tons, up 0.78%. By 0752 GMT, the benchmark three-month price of copper at the London Metal Exchange had risen 0.58% to $10,000 per ton. National Bureau of Statistics data showed that China's industrial production grew by 6.5% on an annual basis in September. This is up from the 5.2% growth in the previous month. This is a new three-month record and beats the forecasted growth of 5.0%. China's Gross Domestic Product grew at a slower pace than any other quarter in the past year. It was down from 5.2% growth in the second quarter. The second-largest global economy, which grew by 5.2% over the first three-quarters of this year, is targeting a growth rate of around 5% for the full year. A copper trader in Shanghai, who spoke on condition of anonymity because he was not authorized to speak to the media, said: "We expect to see more supportive measures in the future to boost economic development amid tariff threats and an looming war." The market is concerned about a likely copper shortage in 2026, due to mining disruptions including the Grasberg Mine in Indonesia, which is the second largest mine in the world. Aluminium, zinc, nickel, tin, and lead were all down in price. $1 = 7.1230 Chinese yuan $1 = 7.1230 Chinese Yuan (Reporting and editing by Harikrishnan Nair, Subhranshu Sahu and Lewis Jackson)
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Iron ore falls on worries about China demand prospects
Iron ore futures fell on Monday as concerns about demand for the steelmaking ingredient grew following a series of disappointing data from China, its largest consumer. The January contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 0.58% lower, at 767 Yuan ($107.68), per metric ton. It had touched its lowest level since September 1, at 762.50 Yuan, earlier in the day. Ge Xin said that the downstream steel consumption in September, traditionally a month of high demand, was lower than expected. "We expect crude steel production to remain low amid increasing uncertainties," Ge Xin wrote in a report. Iron ore benchmark on the Singapore Exchange for November gave up gains earlier due to a weaker U.S. dollar, which made commodities priced in dollars cheaper for buyers who used other currencies. Singapore's benchmark was down 0.45% at $103.45 per ton as of 0739 GMT. It had been at its lowest level since October 9, when it was $103.25. China's third-quarter economic growth is likely to have slowed down to its lowest level in a year, as trade tensions and a prolonged property slump weighed. Other key indicators such as property investment and construction start-ups, among others, indicated a gloomy outlook for steel, which was dragging down ore prices. In September, the new home price in China dropped at the fastest rate in 11 months, further reducing the drag of the housing sector on the broader economy. China's crude output of steel in September fell to a 21 month low due to the slowdown in domestic demand. Analysts expect a limited supply of coke and coal, which are other ingredients used in steelmaking. The steel benchmarks at the Shanghai Futures Exchange have remained in a narrow range. The price of rebar fell 0.03%. Hot-rolled coils dropped 0.12%. Stainless steel shed 0.16%. Wire rod dropped 0.53%. Reporting by Amy Lv, Colleen Howe, and Harikrishnan Nair. $1 = 7.1230 Chinese yuan
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Gold consolidates following record rally, with focus on U.S. China talks
Gold prices edged higher on Monday, after a record-breaking rally. Expectations of further U.S. interest rate cuts, and the demand for safe-haven assets due to the government shutdown, supported sentiment. Investors awaited signals from upcoming U.S. China trade talks. As of 0801 GMT, spot gold rose 0.1% to $4,254.59 an ounce. U.S. Gold Futures for December Delivery climbed 1.3%, to $4.268.40 an ounce. Silver spot rose by 0.2%, to $51.97. This is a slight recovery after it fell 4.4% the previous day after reaching a record high at $54.47. Ole Hansen is the head of commodity strategy for Saxo Bank. He said that gold was still very bullish. Hansen stated that the U.S. shutdown of government is still a factor in support, but the US-China summit will take center stage. U.S. president Donald Trump said that his proposal of a 100% tariff on Chinese goods would not be viable, adding that he would have a meeting with Chinese President Xi Jinping within two weeks. Gold prices, which have reached multiple records this year and the latest one on Friday was $4,378.69, gained traction after Trump threatened to impose steep tariffs on China over its rare-earth export restrictions. However, they fell by more than 1.8% following Trump's comments. The US CPI, which has been delayed because of the U.S. Government shutdown, will be released this Friday, just days before the Fed policy meeting on October 28-29. It is expected that core inflation held steady at 3.1% during September. It is widely expected that the U.S. Central Bank will cut interest rates again by a quarter of a percentage point. In the third quarter, China's economy grew at its slowest pace in over a year. Hansen stated that "the weakness in the Chinese real estate market is a major source of support for gold." Palladium fell 1.2% and platinum dropped 0.5%, respectively, to $1.455.73 an ounce. (Reporting and editing by Nivedita Battacharjee in Bengaluru)
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European shares rise by almost 1% as banks and defence rally
Investors digested corporate earnings, assessed sectoral momentum, and assessed macro signals as they digested the strong performance of banks and defense stocks. As of 0750 GMT, the continent-wide STOXX 600 Index was up 0.9% to 571.05 point. Other major regional indices were also trading higher. European banks rose by 1.6%. They were among the biggest gains in the STOXX 600. This was a rebound from Friday's 2.5% decline when investors became nervous about signs of credit pressure at regional U.S. lenders. The STOXX Aerospace & Defence index rose 2.1%. This was a rebound from Friday's sharp drop when the news of an upcoming summit on the conflict in Ukraine shocked the sector. The shares of Swedish military equipment manufacturer Saab rose 3.1% following the awarding of a Spanish artillery-radar contract. Kering, among other movers in the market, jumped by 4.2% when Gucci's owner agreed to sell his beauty business to L'Oreal at a price of 4 billion euros (4.66 billion dollars). Holcim's stock rose 1.4% after a deal worth 1.85 billion euros ($2.16billion) to buy German walling system maker Xella. Forvia, a French auto parts supplier, lost 6% of its sales after reporting a drop of 3.7% in the third quarter. German producer prices dropped more than expected in the month of September. Reporting by Sukriti gupta from Bengaluru, editing by Sherry Jacob Phillips
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Australia's Weather Bureau Casts Doubt on La Nina Prospects
A senior climatologist at Australia's Weather Bureau isn't convinced that La Nina is forming, which could affect crop production and change rainfall patterns in parts of Asia, the Americas and Oceania. La Nina and El Nino are both caused by a cooling or warming in ocean surface temperatures. El Nino is the opposite. The former brings more rain to Australia's east, Southeast Asia, and India, with dryer weather in North America. Both can lead to flooding and hurricanes. The models that forecast the weather patterns usually converge around this time of the year, but there are currently many variations. She added, "That shows that there is still a great deal of uncertainty in our system." The U.S. National Oceanic and Atmospheric Administration said that La Nina conditions are present, but in a weak form, and will likely persist into December. Models from the Australian Bureau show sea surface temperatures dipping below a La Nina threshold in October, December and November by 0.8 degrees Celsius (1.44 Fahrenheit). Then they move back to neutral. Gamble said that the cooling effect on cloud patterns and trade wind directions is not enough to give confidence in a La Nina. The senior climatologist stated that "our model is probably among the weaker predictions for La Nina." She said that although NOAA considered atmospheric response sufficient, "we'd like more." Gamble said that, except for a few islands in the southwest Pacific region, there were no signs of typical La Nina rainfall patterns. We are not seeing the same impact because we don't see a dominant La Nina pattern. She said that when you have a weaker sign, other influences can start to take over and possibly override the signal. Between 2020 and 2023, three consecutive La Nina events brought record rainfall to Australia and droughts and heatwaves to parts of the Americas.
China's thermal power generation falls on year for second straight month
China's thermal power generation fell on the year for a second straight month in June as hydropower generation rose, data from the National Bureau of Data showed on Monday.
Thermal electrical energy, generated mostly by coal-fired capability, fell 7.4% in June after declining by 4.3% in May.
However, thermal output still increased 1.7% over the first 6 months as a whole.
Hydropower volumes rose 44.5% in June and 21.4% over the first six months.
The pattern could put China on track for a year-on-year decrease in coal use for 2024 as a whole, if hydropower output remains strong, said David Fishman, a senior supervisor at Shanghai-based energy consultancy the Lantau Group.
However, he cautioned that extreme weather, such as a. serious heat wave integrated with dry spell this summer season, could slow. down that development.
That is what took place in August 2022 following an. unprecedented heat wave that led to power scarcities, deteriorated. hydropower generation and drove China to reverse to coal. generation.
The country generated 768.5 billion kilowatt-hours (kWh) of. power in June, up 2.3% compared with the same duration of last. year, according to NBS.
Nevertheless, analysts state the NBS information does not completely capture. the development in power generation, specifically for renewables,. due to the fact that it just consists of business with yearly revenue of 20. million yuan ($ 2.75 million) or more from their principal. businesses.
That leaves out numerous smaller generators, notably rooftop. solar installations.
Over the very first six months as a whole, power generation. reached 4.44 trillion kWh, according to NBS, up 5.2% compared. with the same period of last year.
(source: Reuters)