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Officials say four people were injured in a fire at a coal processing plant in Russia’s Far East.
Early on Wednesday, Russian authorities and officials of the company said that four people had been injured in an early morning fire at a coal-processing plant in Russia's far northeast. Mechel, a Russian mining company, said in a press release that its workers had been evacuated from the coal processing plant at Neryungri, in the Republic of Sakha (also known as Yakutia), after a fire started in a warehouse containing finished goods. Mechel and Yakutugol own the Neryungri Plant. Yakutugol is the largest coal mining firm in the Sakha Republic. According to Russian media reports, the Neryungri coal plant began operations in 1984 and has a capacity of 9 million tons per year. In a video posted on Telegram, Denis Gerasimenko said that more than 50 firefighters and twelve pieces of equipment had been involved in fighting the fire. Gerasimenko stated that the problem lies in the construction of the building, and the presence of a load which is flammable. A number of Russian Telegram channels reported that an explosion had occurred at the plant. We were unable to independently verify reports of an explosive. (Reporting and writing by Lidia Kel in Melbourne, Editing by Christopher Cushing & Kate Mayberry
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Stocks rise on US-China talks, China rate reduction
U.S. stocks futures and Chinese stock markets both rose on Wednesday as investors welcomed news of a high-level meeting between U.S. officials and Chinese counterparts as an opportunity to reduce tariffs. China also cut interest rates and promised to support the stock market. Scott Bessent, U.S. Treasury secretary, said that the meeting scheduled for this weekend in Switzerland would be a de-escalation. S&P 500 futures were up about 0.9%, and Hong Kong's Hang Seng rose 1.7% at mid-morning. China blue chips were up 0.5%, while Japan's Nikkei index was largely flat. Ray Attrill, head of Foreign Exchange Research at National Australia Bank, said: "It seems that both sides are willing to reach out and meet on a high-level. I wouldn't have thought it could be anything other than positive." It's positive for Asian foreign exchange in general. The dollar rose a little against the yen, euro and yuan. China's rate reductions weighed down on the yuan. The South Korean won, which was gaining ground with the surge of Asian currencies, has fallen by more than 1 percent. Gold dropped 1.4%, while oil rose 0.5%. China's central banks governor announced a 10 basis-point cut in the benchmark interest rate, and a 50 basis-point cut to bank reserves on Wednesday. This will allow more money into the banking system. Investors interpreted the announcements of the financial regulator as a coordinated effort by the authorities to promote the property market. It's reminiscent of the press conference that started the stimulus euphoria back in September. Homin Lee is a senior macro-strategist at Lombard Odier, based in Singapore. Later on Wednesday, the U.S. Federal Reserve will meet to set interest rate cuts. The markets indicate that there is almost no chance for a move to be made on Wednesday, and only 33% of a reduction in June. This is down from 64% one month ago. India and Pakistan are nuclear-armed neighbors and the fighting has been intense for more than 20 years. India fired gunfire and shells over the border in Kashmir, while India also hit targets in Pakistan. Attrill of NAB said that it would add another layer to the geopolitical tensions and likely cause India's currency to fall. The euro was supported above $1.13, with German conservative leader Friedrich Merz being elected chancellor after his alliance with Social Democrats suffered a shock defeat in the initial round.
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Financial Times - May 7
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy. Headlines After three years of negotiations, UK and India reach a trade agreement UK closes on US trade deal with lower tariff quotas and cars After rival complaint, a Czech court stops an $18 billion deal for nuclear reactors Brussels wants to force EU gas companies to reveal their Russian contracts View the full article Britain and India have signed a free trade agreement that has been long sought after. The tariff wars sparked by U.S. president Donald Trump forced both sides to speed up efforts to increase trade in whisky and cars, as well as food. Officials in London and Washington say that the U.S. has made progress in negotiations with Britain on a possible trade agreement, which would include lower tariffs for steel and automobiles. After a complaint by a rival bidder, a Czech court blocked CEZ from signing an 18 billion dollar contract with South Korea's KHNP for the construction of a nuclear power plant. The European Commission wants to tighten up on fuel imports by Russia in 2027.
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Gold falls on US-China Trade Talk Hopes; traders focus on Fed policy
The gold price fell on Wednesday, as investors awaited the Federal Reserve policy meeting that would be held later in the afternoon. As of 0225 GMT, spot gold was down by 1.2% to $3,388.67 per ounce. The metal rose by nearly 3% the previous session. U.S. Gold Futures dropped 0.7% to $3 397.70. "Gold is pulling back amid broad-based "risk-on" movement across markets... This pro-cyclical setup could echo optimism amid signs that the U.S. has begun real trade negotiations with China," said Ilya SPivak, Tastylive's head of global macro. This weekend, U.S. Treasury secretary Scott Bessent will be in Switzerland for talks with chief Chinese economic official He Lifeng. Last month, both countries imposed tariffs of equal value on each other. This triggered a trade conflict that fueled fears of global recession. On Tuesday, U.S. president Donald Trump announced that he will be reviewing potential trade agreements over the next two week to decide which to accept. Later in the day the Federal Open Market Committee meeting is expected to be the focus of the market, as the U.S. Central bank will likely hold rates steady. Spivak said that the FOMC would remain vague in order to maintain as much flexibility as is possible when it comes to determining what impact this trade war may have on growth and inflation. The traders expect 80 basis point rate cuts in this year starting in July. The remarks of Fed Chair Jerome Powell will also provide clues as to the timing of any future rate cuts. In an environment of low interest rates, gold, which is traditionally viewed as a hedge to economic and political uncertainty, thrives. Silver spot fell by 0.9%, to $32.93 per ounce. Platinum dropped 0.6% to $979.07 while palladium was down 0.4% at $970.28. (Reporting and editing by Sumana Nady and Sonia Cheema in Bengaluru)
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Sino-US trade talks and Chinese stimulus have boosted iron ore prices to a 2-week high.
Investor sentiment was boosted by China's recent stimulus measures, and the hopes that trade frictions between the two world's largest economies will be eased. As of 0154 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.78% higher. It was 711 yuan (US$98.47) per metric ton. Earlier in the session, the contract reached its highest level since April 24, at 726 Yuan per ton. The benchmark June Iron Ore traded on the Singapore Exchange rose 0.81%, to $98.3 per ton. It had previously reached a peak of $99.85. The People's Bank of China will reduce the amount of cash banks are required to hold as reserves, for the first time in 2025. This is part of a policy designed to boost the economy during a prolonged trade war with the United States. The magnitude of the stimulus package somewhat exceeded our expectations, and that is the main driver of the price strength, said an iron ore trader in Singapore. He requested anonymity because he was not authorised to talk to the media. Prices were also supported by positive signals about the possible easing of global trade tensions. U.S. Treasury secretary Scott Bessent, and chief trade negotiator Jamieson Grer will meet China’s top economic official on Saturday in Switzerland. This could be a first step in resolving the trade war that is disrupting the global market. The benchmark steel prices on the Shanghai Futures Exchange have gained some ground. Rebar rose by 0.39%, while hot-rolled coils rose by 0.59%. Stainless steel also gained 0.67%. Other steelmaking ingredients listed on the DCE, however, posted losses due to weak fundamentals. Coking coal and a coke both lost 0.16 and 0.2% respectively. ($1 = 7.2208 Chinese yuan). (Reporting and editing by Amy Lv, Lewis Jackson)
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Metals prices remain tight as the market waits for US-China summit
Investors were waiting for a weekend meeting in Switzerland between U.S.-China trade officials to see if they could bring down the trade war. As of 1400 GMT, the benchmark copper price on London Metal Exchange (LME), was down by 0.1% at $9,533.5 per metric ton. Scott Bessent, U.S. Treasury secretary, told Fox News that he believes the goal is to de-escalate tensions. China's central banking governor announced Wednesday that, to support the economy in the midst of a long-running trade war with the U.S. the bank would, for the very first time, reduce the required reserve ratio for banks by 50%. On Tuesday, U.S. president Donald Trump announced that he will be reviewing potential trade agreements over the next two week to decide which to accept. A trader stated, "We have been eagerly awaiting the advancement of relations between the U.S.A. and China as we had hoped to see the potential agreement." Other London metals saw aluminium drop 0.1%, to $2.425 per ton. Zinc rose 0.1%, to $2.635, while lead fell 0.1%, to $1.921. Tin was up 0.1%, to $32,020, and nickel was unchanged at $15.700 a tonne. The Shanghai Futures Exchange's (SHFE) most traded copper contract rose by 0.7%, to 78.220 yuan (10.759) per tonne, thanks to rapidly declining stocks that the SHFE monitors. SHFE aluminium fell by 0.9%, to 19,680 Yuan per ton. Zinc dropped 0.3%, to 22,350 Yuan. Lead declined by 0.2%, to 16,670 Yuan. Nickel rose 0.1%, to 124650 Yuan. Tin was up 0.4%, to 261,490 Yan. (Reporting and editing by Mrigank Dahniwala; Violet Li, Lewis Jackson)
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Lake Resources' shares in Australia surge after launch of strategic review
The shares of Australia's Lake Resources soared by more than 9% after the company announced a strategic review on its Kachi lithium project, located in Argentina. The lithium developer believes that the asset is undervalued, even though the long-term demand has increased for battery metals after a recent drop in the price of lithium carbonate. The price of lithium carbonate fell to its lowest level since August 2021 last month, due to a prolonged decline in demand from the electric vehicle industry. The benchmark index rose 0.1% to 0050 GMT, while Lake's stock is on course for its largest one-day gain since April 24. The company is considering a number of options, including the sale of a stake in the project or a possible sale or merger. The Kachi Lithium Brine Project is the largest independently-funded project in South America's "lithium triangular" region, with resources totaling more than 10.6 million metric tonnes of lithium carbonate. Lake Resources stated that recent examples of companies with Argentine Lithium projects receiving proposals far exceeding their current market valuations has influenced the decision to explore alternative strategic options. The review is more than five-months after the company agreed to sell its non-core assets of lithium brine in Argentina for nine million dollars. Reporting by Nichiket in Bengaluru, editing by Mohammed Safi Shamsi & Alan Barona
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US futures rise on China trade talks
U.S. stocks futures rose and Asian currencies rose as investors welcomed the news that a top-level meeting between U.S. officials and Chinese officials is scheduled for this weekend in Switzerland. This could be a chance to calm down the trade conflict. Scott Bessent, U.S. Treasury secretary, said on Fox News that he believes the goal is to de-escalate. S&P futures gained about 0.9%. This was a recovery from a drop in the cash session, when U.S. president Donald Trump seemed to have struck a more confrontational note. The stock markets of Japan and Australia have both edged up. The dollar increased a bit against the yen, but declined against other Asian currencies. The offshore yuan is close to reaching a six-month-high and the Australian Dollar has reached a five month-high and just above 65 U.S. Cents. Ray Attrill, head of Foreign Exchange Research at National Australia Bank, said: "It seems that both sides are willing to reach out and meet on a high-level. I wouldn't have thought it could be anything other than positive." It's positive for Asian foreign exchange in general. Asian currencies have been gaining on the dollar lately, led by a flying Taiwan Dollar, on speculations that a weaker greenback is part of Trump’s trade agenda, and as large investors reduce their dollar positions built up over years of purchasing U.S. assets. Gold dropped 1%, while oil rose 1%. Benchmark 10-year Treasury rates remained at 4.3238%. Later on Wednesday, the U.S. Federal Reserve will meet to set interest rate cuts. The markets indicate that there is almost no chance for a move to be made on Wednesday, and only 33% of a reduction in June. This is down from 64% one month ago. India and Pakistan are nuclear-armed neighbors and the fighting has been intense for more than 20 years. India fired gunfire and shells over the border in Kashmir, while India also hit targets in Pakistan. Attrill of NAB said that it would add another layer to the geopolitical tensions and likely cause India's currency to fall. The euro was supported above $1.13, with German conservative leader Friedrich Merz being elected chancellor after his alliance with Social Democrats suffered a shock defeat in the initial round.
Suncor, Canada reports first quarter profit beating on strength in refining
Suncor Energy, a Canadian oil company, reported a first-quarter profit that was above analyst expectations on Tuesday. It benefited from increased refinery production and higher sales volumes.
The positive results are part of a wider rebound in North American refinery margins. Imperial Oil, a peer company, posted record earnings for the first quarter last week. This was primarily due to higher margins in its fuel and refining business.
Suncor reported that its refined products sales increased to 604,900 barrels a day during the third quarter, compared with 581,000 bpd in the previous year. The increase was due to a higher refinery output and Suncor's extensive retail and sales network.
The refinery's utilization has also increased to 104%, up from 98% one year earlier.
Suncor, based in Calgary, Alberta, increased its upstream production to 853 200 bpd during the third quarter, but sales volume dropped because of a large inventory.
Rich Kruger, Suncor CEO, said that the integrated business model and the continuously improving cost structure enable the company to deliver free money flow and shareholder value, despite the volatile business environment.
Around 80% of Canada’s crude oil and 40% of the natural gas produced in Canada are sold to the U.S. When Donald Trump, the president of the United States, announced tariffs against Canada, this interdependence was put in doubt. These duties were temporarily implemented in February but most of them were removed within a few days.
Rich Kruger, the CEO of the company in February, said that the integrated nature and assets give the company an "natural hedge" from tariffs.
According to data compiled and analyzed by LSEG, the company reported a profit adjusted of C$1.31 ($0.9509) for the quarter compared with an average analyst estimate of C$1.21 (per share).
(source: Reuters)