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Iron ore prices rise on signs of eased US-China trade tension
Iron ore prices rose on Wednesday as signs of easing U.S. China trade tensions, and the expectation that Beijing will unveil more stimulus measures to boost economic growth, outweighed worries about a rising ore supply or a decreasing steel demand. After U.S. president Donald Trump stated on Monday that he expects to reach a fair deal with Chinese President Xi Jinping, hopes grew of a deescalation in the trade spat. Trump said that he will visit China in early 2019, at Beijing's request. By 0207 GMT, the most-traded iron ore contract for January on China's Dalian Commodity Exchange rose by 0.78% to $775 yuan (US$108.80) a metric ton. As of 0157 GMT, the benchmark November iron ore traded on Singapore Exchange was up 0.42% at $104 per ton. Analyst Zhuo Guiqiu at Jinrui Futures said that the rise was driven by a macroeconomic factor, as a reduction in U.S. - China trade tensions is expected. This has sparked heightened risk-on sentiment. Investors also bet on more China stimulus after a series of disappointing data. The Communist Party's four-day meeting behind closed doors that began Monday will culminate in an outline of the next five-year strategy. The price increases were tempered by the expectation of a growing supply in the remainder of the year and the seasonal slowdown of steel demand. Vale, the largest iron ore miner in the world, produced 94.4 millions metric tons (the equivalent of steelmaking material) during the third quarter. This is a 3.8% increase on an annual basis and the highest production since the final three months of 2018 Rio Tinto (RIO.L) has also stocked up 2 million tonnes of high-grade ore in Guinea at its Simandou Project for a shipment scheduled to take place mid-November. Both coke and coal, which are used in the production of steel, grew by 0.59%. The benchmarks for steel on the Shanghai Futures Exchange have gained ground. Rebar gained 0.33%. Hot-rolled coil increased by 0.47%. Wire rod gained 0.21%. Stainless steel gained 0.28%. $1 = 7.1230 Chinese Yuan (Reporting and editing by Amy Lv, Colleen Waye)
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Hong Kong stocks rise on signs of eased Sino-US tensions
Hong Kong and China stock prices rebounded on Monday sharply after a large selloff last Friday, as signs that Sino-U.S. tensions are easing boosted bets that U.S. president Donald Trump would once again retreat from his tariff threat. Investors also have their eyes on the Chinese Communist Party's leadership meeting, which will map out China's 5-year vision. On Monday, authorities released economic data for the third quarter that were in line with expectations. Hong Kong's Hang Seng Index, the benchmark index, jumped over 2% on Monday, driven by technology shares. It was its best day for two months. Both the blue-chip CSI300 and Shanghai Composite Index rose by nearly 1%. Scott Bessent, U.S. Treasury secretary, said that he expected to meet with Chinese Vice Premier He Lifeng this week in Malaysia to prevent an escalation in U.S. Tariffs on Chinese Goods which Trump claimed was unsustainable. Last week, China's and Hong Kong's stocks experienced their largest weekly decline since April after Trump threatened to impose 100% tariffs on Chinese imports as a retaliation for Beijing imposing new export controls on rare-earth minerals. Yuan Yuwei is a hedge fund manager with Water Wisdom Asset Management. She said that Trump will certainly back down. He said that a hard decoupling would increase U.S. inflation, and cause pain to ordinary Americans. China's supply chain and social system could help China stay in the game longer. China's economy expanded at a slower pace than expected in the third quarter of this year, according to official data released on Monday. The focus is now on the fourth plenum. This gathering, which will take place from Monday to Friday and include President Xi Jinping, will examine a roadmap for China between 2026-2030. Megan Ie is a senior equity analyst with GIB Asset Management in London. She said that the five-year plan was China's strategic map, which "tells where leaders will be directing talent, capital and subsidies." Investors will be able to gain confidence if policymakers use the same messages about innovation, self-sufficiency and commitment to capital markets. China's chipmaking, robot and artificial intelligence sectors all rebounded strongly on Monday after a recent correction. The Hang Seng Tech Index in Hong Kong jumped by more than 3%. (Shanghai Newsroom; Editing done by Subhranshu Sahu, Lincoln Feast)
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The US plans to replenish strategic reserves and maintain gains in oil production.
The oil prices rose for the second consecutive day on Wednesday. This was boosted by supply risks related to sanctions, hopes for a U.S. China trade agreement, and news that America is looking for oil to fill its strategic reserves. Brent crude futures rose by 18 cents or 0.29% to $61.50 a barrel as of 1:37 GMT. U.S. West Texas intermediate crude futures climbed by 21 cents or 0.37% to $57.45. Oil prices have recovered from a five-month low that was hit on Monday. This bounce is due to producers pumping in more oil and trade tensions affecting demand. News that the planned summit between U.S. president Donald Trump and Russian president Vladimir Putin has been put on hold, and fears of supply disruptions fueled by Western pressures on Asian oil purchases have heightened supply risks. Mukesh S. Sahdev, CEO and founder of energy market consulting firm XAnalysts, said that despite the general bearish sentiment, a glut of oil and weak demand in the Middle East, Venezuela, Colombia, and Russia still prevents the oil price from falling below $60. Investors will also be closely monitoring the progress of U.S. China trade talks, as officials from both nations are expected to meet in Malaysia this week. Donald Trump, the U.S. president, said on Monday that he hopes to reach a fair deal with Chinese President Xi Jinping when he meets him in South Korea next. In a Wednesday note, ANZ analysts said that the U.S. plan for replenishing its strategic reserves was also supported by oil. The U.S. Department of Energy announced on Tuesday that it was looking to purchase 1 million barrels of oil to be delivered to the Strategic Petroleum Reserve. It is hoping to take advantage of the relatively low prices of oil to replenish the stockpile. Market sources cited American Petroleum Institute data on Tuesday to confirm that U.S. crude oil, gasoline, and distillate stockpiles fell in the past week. (Reporting and editing by Muralikumar Aantharaman in Singapore, Siyi Liu)
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Mayor of Kyiv says that Russian missiles have caused fires and scattered debris in Kyiv.
Vitali Klitschko, the mayor of Kyiv, said that Russian missiles fired at night ignited fires in several districts and scattered debris, shattering glass and damaging cars. Klitschko, who posted on Telegram, said that emergency services were dispatched at several sites to clean up the debris left by the air weapons, but there had been no reports of casualties. Witnesses heard what sounded as if air defence units were in operation. It was not immediately known the size of the attack and the primary target. Klitschko claimed that the attack was carried out using ballistic missiles. Russia has not yet commented. Mykola Kashnyk, the governor of the region, told Telegram that a house in the area surrounding Kyiv caught fire due to the Russian attack. An elderly woman was injured. Since 2022 when Russia launched a full-scale invasion, it has continued to attack Ukrainian energy installations. It maintains that these facilities are legitimate targets in the war. The attack on Ukraine Tuesday killed four people, left hundreds of thousands of people without electricity and many others without water. Kyiv claimed that this was the latest in a series of attacks by Moscow to disrupt its neighbour's power system in advance of winter. Reporting by Gleb Garanich in Kyiv, Sergiy Karazy from Melbourne and Lidia Kelly from Kyiv; editing by Chris Reese & Jamie Freed
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Australia and New Zealand prepare for heat and fierce winds
The weather in Australia and New Zealand will continue to be hot and windy this week. On Wednesday, the meteorological agencies warned that conditions would worsen over the next few days. MetService, New Zealand's weather forecaster, said that gusts of up to 150 kilometres per hour (93 miles an hour) could be experienced along the South Island’s east coast on Thursday, and as high as 140 kilometres per hour in Wellington, New Zealand’s capital. Authorities warned people to stay inside, avoid traveling and prepare for potential power and communication outages. The warnings come after strong winds and heavy rainfall on Tuesday, which left thousands of people without power. A man was killed in Wellington Park when a branch from a tree fell on him. Winds on Tuesday fanned wildfires in Hawke's Bay, on the North Island and near Kaikoura, on the South Island. Ken Cooper, Assistant National Commander of Fire and Emergency New Zealand, said that 14 buildings were destroyed near Kaikoura. This included five homes. The area remains closed and there are evacuation centres. Officials haven't estimated the size of the fire. FENZ reported that in Hawke's Bay, they were making progress on the four vegetation fires despite the windy conditions. They were also monitoring the weather. The Bureau of Meteorology in Australia said that extreme heat could be a record-breaker across the central regions, bringing heatwaves and increased fire danger. Sydney will reach 39 degrees Celsius on Wednesday. (Reporting and editing by Stephen Coates; Lucy Craymer)
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Celebrities join Prince William of the UK in Brazil to celebrate Earthshot Prize
The Prince of Wales and the former Formula One champion Sebastian Vettel are among the celebrities who will join him at his award ceremony in Brazil next month for his multimillion dollar environmental prize. In 2020, the British heir-to-the-throne established the Earthshot Prize with the goal of finding innovative solutions for pressing environmental issues. The winners of this year's Earthshot Prize will be announced on November 5 at an event in Rio de Janeiro that is sure to attract a lot of attention. The night's performers will include Brazilian musicians Gilberto Gil and Seu Jorge, as well as Canadian pop singer Shawn Mendes, and Minogue, who was selected by William's dad King Charles to be an artist whose song brings him joy. Organisers announced this on Wednesday. Luciano Huck, a Brazilian TV host, will be the event's host. Other presenters include Brazilian gymnast Rebeca André, Brazil's top Olympian Cafu and four-time F1 World Champion Vettel. In 2022, the German driver who was increasingly vocal about sustainability and environmental issues, saying that climate change made him doubt his job, retired. Winners receive cash prizes for their projects Earthshot's CEO Jason Knauf stated that "with two weeks left, we are delighted to announce the support from global artists, performers and Brazilian talent who will be joining us in Rio." The organizers also released a trailer titled "Meet the World's True Action Heroes", which was voiced in Hollywood by actor Matthew McConaughey. Earthshot aims to find innovative solutions to climate change and other environmental issues. Five winners will receive 1 million pounds ($1.3million) each for their projects. William will represent his father at the UN Climate Summit COP30 in Brazil. William has been campaigning on environmental issues since more than 50 years. (Reporting and Editing by Ros Russel)
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Vale expects iron ore production to reach its highest level in 2025 after the strongest quarter since 2018.
Vale, a Brazilian mining company, reported Tuesday that it had achieved its highest quarterly production of iron ore since 2018. It also said that its three main business units are on track to meet the upper bands of their 2025 production targets. Vale, the largest iron ore miner in the world, produced 94.4 millions metric tons of steelmaking material during the third quarter. This is a 3.8% rise on an annual basis and the highest production since the final three months of 2018. Vale's performance was boosted both by the record-breaking production in the S11D project, located in the north of Brazil, and the ramping up of other projects. Iron ore production is expected to reach 325-350 million tons by 2025, according to the company. Production totaled 245.7 millions tons in the first nine months. Vale's sales and output report stated that its iron ore and copper businesses are "tracking towards the upper-end of the production guidance ranges for 2025." Sales of iron ore including pellets rose by 5.1% on an annual basis to 86.8 million tons during the third quarter. The realized price of iron fines also increased by 4.2%, to $94.4 per tonne. Reporting by Andre Romani, Sao Paulo; Editing by Natalia Siniawski & Richard Chang
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Prolec JV to be owned by GE Vernova for $5.28 Billion in grid supply push
GE Vernova announced on Tuesday that it will pay $5.28 Billion to purchase the remaining 50% of the transformer maker Prolec GE, as artificial intelligence is driving grid equipment demand. The joint venture partner Xignux will be purchased by a company that is owned equally by cash and debt. This purchase should close in mid-2026 subject to regulatory approvals. The demand for electricity in the U.S. has increased dramatically as Big Tech and Silicon Valley startups compete to scale AI technologies behind services like ChatGPT. According to the U.S. Energy Information Administration, power consumption in 2025-2026 will reach record levels. This is due to cryptocurrency mining as well as increased demand by households and businesses. The CEO Scott Strazik said, "This acquisition is in line with our financial and strategic objectives. It is also beneficial to our customers as it strengthens our presence in North America where the demand for grid equipment has been growing rapidly." Prolec GE was established as a joint venture in 1995 by Xignux & General Electric. It announced earlier this year that it would invest $140 million and create 330 jobs in Goldsboro in North Carolina over the next three-year period, surpassing $300 million of U.S. investments and Mexico investments. About 10,000 employees are employed by the grid equipment manufacturer in seven factories around the world, including five in America. After-hours trading saw a slight increase in GE Vernova shares. On October 22, the company will also report its third-quarter results. Morgan Stanley acted on behalf of GE Vernova as a financial advisor, and Skadden Arps Slate Meagher & Flom acted as legal counsel. J.P. Morgan Securities advised Xignux, and Sidley-Austin served as Xignux's legal counsel.
London's FTSE 100 drops as U.S. recession fears stimulate worldwide sell-off
London's FTSE 100 plunged over 1.5% on Monday to strike their lowest in over 3 months, as recession worries in the United States activated a global selloff.
By 0722 GMT, the blue-chip FTSE 100 index fell 1.9%. to its most affordable considering that April and on track for its worst day given that. March 2023.
On the other hand, the mid-cap FTSE 250 index was off 3%,. after clocking its worst day because September 2022 in the. previous session.
Friday's information revealed a sharp downturn in U.S. job development,. heightening fears of a wear and tear in the American labour. market and a prospective recession, pushing investors to raise. bets on a half-point cut in September by the Federal Reserve to. rescue the economy.
A great deal of it comes from faith that the Federal Reserve has. gone a bit too far with its monetary policy in regards to. keeping rates restrictive for too long. That unfavorable belief. has actually overflowed into other markets, said Daniela Hathorn,. senior market analyst at Capital.com.
In London, many sub-sectoral indexes trended lower. Auto and parts were the worst hit with a. 3.9% decline, while precious metal miners trended. 3.2% lower in spite of a firming in gold rates.
Monetary stocks like banks and life insurance companies. decreased 3.1% and 3.7% respectively.
If we do see an economic downturn, banks get struck rather hard due to the fact that. individuals start to take out less loans, Hathorn added.
Energy shares also fell 2.7%, as recession. fears in the U.S. pushed oil costs lower.
On the information front, domestic manufacturing activity numbers. are due later in the day, in an otherwise data-light week.
John Wood Group fell over 37% to the bottom of the. FTSE 250 after Dubai's Sidara said it was leaving. from its strategy to purchase the British oilfield services and. engineering firm.
(source: Reuters)