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Gold holds above $4,000, European stock rally stops
On Thursday, the rally in European shares paused, as the FTSE 100 was dragged lower by banking stocks, and investors weighed the risks of a correction. Wall Street reached new record highs during the previous session as investors bet gains in technology shares, despite a U.S. shutdown that left traders without key economic data. Investors have been nervous about the U.S. government shutdown, political risks in Japan, and France this week. This has created a safe-haven market, which along with a weaker US dollar has pushed gold to $4,000 for first time. STOXX Down 0.2% On The Day At 1059 GMT, the STOXX 600 index was down by 0.2% and London's FTSE 100 also fell by 0.2%. Losses at HSBC Group and Lloyds Banking Group were partially offset by gains at mining and technology companies. The MSCI World Equity Index rose just 0.1% for the day. U.S. Stock Futures dropped, pointing towards a mixed opening for Wall Street. Fiona Cincotta is the senior analyst for City Index. "It feels like we are missing out on any substance in the moves that we see, because we don't get that data from the U.S." JPMorgan Chase CEO Jamie Dimon, in a sign that investors are becoming more cautious, said that there is a greater risk of a major correction of the U.S. Stock Market within the next 6 months to 2 years. He cited factors such as geopolitical tensions and government spending, along with remilitarization across the globe. Donald Trump, the U.S. president, announced late Wednesday night that Israel and Hamas reached an agreement on a ceasefire as well as a hostage release. French bonds maintained their gains from Wednesday after President Emmanuel Macron announced that he will name a new premier by Friday evening. This raised hopes that a country-wide election could be avoided and a budget agreed. The benchmark German 10-year bond yield is 2.679%, while the 10-year French government bonds yield is 3.4962%. The dollar index rose 0.1%, but it was still down 8.9% for the entire year. The euro, which was down by 0.1% to $1.1612 on its fourth consecutive day, is in a downward trend. Overnight, the Japanese yen fell to a record low of 153 yen per dollar. However, it was last slightly stronger at 152.75. The economist who advised the policy circle for Japan's potential new premier Sanae Takayi said that the current weakening of the yen is good for the economy and the impact on households due to rising import costs could be offset through aggressive fiscal spending. The oil prices were stable as traders waited for the outcome of the agreement between Israel and Hamas. Gold remained at $4,039.59. Kristalina Georgeeva, Managing Director of the International Monetary Fund, warned investors on Wednesday not to become complacent, saying that the global economy had proven to be more resilient than anticipated. China has tightened export restrictions on rare earth technologies, extending April's restrictions.
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China's gold purchasers squeezed by record price hike
Chinese consumers are fond of gold and have been for a long time, but the record high price is affecting their purchasing power for both jewelry and investment. Gold prices have risen by more than 50% in the past year, reaching a new record price of over $4,000 per ounce. This is due to geopolitical tensions and uncertainty regarding the global economy. China's economic woes, which include a weak real estate market, have increased the appetite of people for gold as an asset. According to reports in state media, gold's record-breaking price has pushed the price per gram to over 1,160 yuan (about 162.93) this week at many Chinese retailers, up from around 630yuan last January. Yan Lixiaofeng is the owner of wholesale gold dealer Shenzhen Shenhui Jewelry, located in Shuibei - China's biggest wholesale jewelry market. He said that transactions were down 60% compared to an average year. "In the past, customers could purchase three grams of jewelry with one thousand yuan; today, that same amount only gets them one gram. Yan said, "The difference is enormous." Store managers and shop assistants at one of Shanghai's biggest gold markets said that more people were buying gold rather than selling it. However, most transactions were exchanges as customers wanted to trade in older jewellery for newer styles. Wang Haichuan is a worker at a market store. He said that the price increase is significant. He said that the increase in price had discouraged some people, but also encouraged others. He said that "most people believe it will continue to increase." Gold prices were still a hot topic at the Shanghai gold market on Thursday. Zeng Shuangshuang, a customer, said: "I am not a financial manager so I can't say for certain, but I do think that it will increase a little bit." He Meihong, another customer, said: "I believe there is still room for investment opportunities."
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Silver surpasses record levels of $4,000 and gold
Gold prices rose above $4,000 per ounce as investors analyzed the Israel-Hamas truce deal. Meanwhile, broader geopolitical uncertainty and expectations of U.S. interest rate cuts fueled bullish sentiment. Silver reached a new record, thanks to gold's record-breaking rally. Investor demand, as well as a deficit in supply, also helped. At 0956 GMT, spot gold remained unchanged at $4.035.07 an ounce. U.S. Gold Futures for December Delivery fell 0.4% to $4,546. On Wednesday, gold prices surpassed $4,000 an ounce for a first time, reaching a record of $4,059.05. Silver rose 1.6% to $49.65 an ounce. Metals have gained more than 70% this year. This is due to the same factors that are driving the gold rally, as well as the tightness of the spot market. "The silver market has an interesting feature: the net long positions have only slightly increased, so this rally is not driven by speculative interests. This move in silver's price is based on some solid fundamentals, according to independent analyst Ross Norman. U.S. president Donald Trump announced a ceasefire agreement and hostage swap between Israel and Hamas as part of the first phase in his plan to end Gaza's war. The gold rally faces resistance due to the Gaza diplomatic breakthrough, which reduces risk-off flow, and the ongoing U.S. Dollar recovery, which undermines the bullion's power, making it vulnerable for pullbacks," Nikos Tzabouras Senior Market Analyst, Tradu. The path to new highs remains wide open. The U.S. Dollar Index hovered at a high of two months, making bullion priced in dollars more expensive for buyers from overseas. Gold's rise has been attributed to geopolitical factors, such as the Middle East conflict and the war in Ukraine. Also, ETF flows, U.S. interest rate cuts, and tariff-related economic uncertainty have contributed. The metal is set to have the biggest annual gain since 1979, with a 53% increase year-to date. According to the minutes of their meeting on September 16-17, Federal Reserve officials were in agreement that the risks facing the U.S. employment market warranted a rate reduction, but they remained cautious due to stubborn inflation. The markets are pricing in a cut of 25 basis points in October and December. UBS stated in a report that "the ongoing U.S. shutdown has given (gold) a boost, along with mounting fiscal concerns in Japan & France due to recent political leadership change." Gold that does not yield is a good investment in low interest rate environments and times of geopolitical and economic uncertainty. Lukman Otunuga is a senior research analyst with FXTM. He said that if risk sentiment continues improving, gold prices may fall in the short term as investors rush to riskier assets. Palladium rose 2.1%, to $1480.22. Platinum was up 0.1%, to $1664.44.
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As China returns to the market, copper prices are close to $11,000 per tonne. However, there remain supply concerns.
The copper price hit a 16 month high on Thursday as it rose toward $11,000 a metric ton. Investors in China, the world's largest metals consumer, were returning from a holiday of a week and there was still concern about supply from major mines. As of 0915 GMT, the benchmark three-month copper price on London Metal Exchange had risen 1.9% to $10,872 per kilogram. It had earlier reached $10,890.50 - the highest level since May 2024, when the metal hit a record high of $11,104.50. As trading resumed in China, the most traded copper contract at Shanghai Futures Exchange hit a 16 month high of 87 700 yuan (12,310 dollars) per ton. Total stocks of copper in LME warehouse system The copper price was 139.475 tonnes, the lowest level since late July. The price of a ton dropped to $13 from $29.50 per ton on Wednesday. This indicates a tighter supply in the near term. Teck Resources reduced its production forecast for the Chilean Quebrada Blanca Mine through 2028 on Wednesday. Due to disruptions in major mines including Grasberg, Indonesia, which was closed for a full month, the International Copper Study Group lowered their 2025 market surplus estimates to 178,000 tonnes from 289,000 tons. Tom Price, an analyst at Panmure Liberum, said that if there was any expectation of Grasberg returning faster than what people were told in the last couple of weeks then copper prices would drop. Price said that other events could also trigger a pullback, including a resolution to the U.S. shutdown and signs of an end to the U.S. rate-cut cycle. Copper's strength pushed the base complex up. Aluminium climbed 14% to $2.781.50 after touching $2.793, the highest level since May 2024. Zinc rose 0.9% to $3,000, nickel climbed 0.8% to $16,470, lead climbed 1% to $2001, and tin increased 1.1% to $35,740. (1 Chinese Yuan Renminbi = 7.1245 USD) (Reporting and editing by Subhranshu Sahu, Harikrishan Nair and Subhranshu Sahu)
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European stocks drop after recent record-highs; gold remains above $4,000
Investors weighed the risks of a correction in the market after AI-enthusiasm pushed Asian stocks to new highs over night. Wall Street hit fresh Record highs Investors bet on technology stocks to gain in the previous session despite the U.S. shutdown, which left traders without key Economic data Investors have been nervous about the U.S. government shutdown, political risks in Japan, and France this week. This has created a safe-haven market, which along with a weaker US dollar, has pushed gold to $4,000 for first time. STOXX Down 0.3% On The Day At 0903 GMT, the STOXX 600 index was down by 0.3% and London's FTSE 100 fell 0.3%. Losses Lloyds Banking Group Gains in mining and technology shares partially offset gains. The MSCI World Equity Index remained flat for the day. Fiona Cincotta is the senior analyst for City Index. "We don't get the data we need from the U.S., so it feels like we are missing out on any substance in our movements." Jamie Dimon, CEO of JPMorgan Chase, has expressed his concern about the increasing caution among investors. There was an increased risk of a significant stock market correction in the U.S. within the next 6 months to 2 years. Donald Trump, President of the United States Israel and Hamas reached an agreement late Wednesday evening Stopfire and hostage negotiation The French bond market held onto Wednesday's gains, after President Emmanuel Macron announced that he will name a new Prime Minister by Friday night. Raising Hopes The country would be able to avoid an election by announcing a budget and avoiding a snap vote. The benchmark German 10-year bond yield is 2.692%, while the 10-year French government bonds yield is 3.5082%. dollar Index made modest gains. It was up 0.1% for the day, at 99.971, though still down 8.9% overall. The euro is in its fourth consecutive day of declines. It was down by 0.1% to $1.1615. Overnight, the Japanese yen fell to an eight-month low at 153 per dollar. However, it was still a little stronger than that at 152.76. Sanae Takaichi, the likely new Japanese premier, is advised by an economist in her policy circle The current weakness of the yen is beneficial to the economy and can be offset with aggressive fiscal spending. The oil prices were stable as traders waited for the outcome of the elections. Stopfire and hostage negotiation Between Israel and Hamas, the agreement would be held. Gold is still at $4,041.29. Kristalina Georgeva, Managing Director of the International Monetary Fund on Wednesday Forecast Investors are warned not to become complacent, as there will be a slight decline in growth globally in 2025 and in 2026. However, the world economy is more resilient than anticipated. tightened Export controls on rare earth technologies are being expanded by the government.
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Ferrari unveils Elettrica, but reduces 2030 goals for electrification
Ferrari unveiled the technology behind the first electric car it has produced, but announced on Thursday that hybrid and petrol vehicles will continue to be at the core of its line-up until 2030. Elettrica will be the name of the electric car that goes on sale in 2019. Ferrari unveiled the production-ready chassis of the Elettrica at an event held in its Maranello headquarters, located in northern Italy. The car base is equipped with a battery pack, electric motors and outer shell, but no wheels or exterior shell. The reveal of Ferrari's first electric car is a major milestone in the automotive industry, which is struggling to transition from internal combustion engines to electric batteries. Ferrari has also adopted a more conservative approach to electric vehicles. The company now aims to have a lineup of 2030 cars that includes 40% internal combustion engines (ICE), 40% hybrids, and 20% fully electric. This is a departure from the 2022 plan which had aimed for 40% EVs in 2030, 40% hybrids, and 20% ICEs. FOUR NEW MODELS PLANNED EACH YEAR Ferrari announced that it would release an average of four models per year from 2026 to 2030. This will maintain the steady pace which has helped it attract the attention of its wealthy customers and grow its client base. John Elkann, Ferrari Chairman, said: "With the new Ferrari Elettrica we affirm once again our commitment to progress, by uniting technology, creativity in design, and the art of manufacturing." Elettrica is a new hybrid model that complements Ferrari's existing petrol models and the more recent hybrids. Ferrari said that all strategic EV components, including high-voltage batteries, eaxles, and inverters, are developed and manufactured in-house in its new "e-building", or Maranello facility. Sources said earlier this year Ferrari did not plan to release a second EV until 2028. They cited a weak demand for high performance electric luxury cars. NEW LIFESTYLE SHOPS TO OPEN Ferrari's active customer base has increased by about 20% since 2022 and now stands at 90,000. In order to increase engagement, the company plans to open "Tailor Made Centres" in Tokyo and Los Angeles by 2027. These centres will help customers add their own personal touches to vehicles. It has reaffirmed the expansion of its lifestyle strategy, with flagships planned for London and New York by 2026. This will provide a wider range of luxury products and experiences to both brand owners and fans.
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Sources say India has extended the deadline for its first annual US LPG tender until October 17,
The Indian state refiners extended the deadline for the first joint long-term bid for the import of liquefied petrol gas (LPG), from the United States, in 2026 for one week. This was announced on Thursday by trade sources. India is planning to increase energy imports from America to reduce its trade surplus, which is a major irritation for President Donald Trump. India's increased energy purchases from the U.S. could help prospects for a trade agreement between the two nations and New Delhi avoid the hefty tariffs that Trump imposed on its products. LPG, a mixture of butane and propane used for cooking fuel, is imported mainly by state retailers Indian Oil Corp. Bharat Petroleum Corp. and Hindustan Petroleum Corp. and sold to households at a subsidised rate. Sources said that the three refiners, in their joint bid, are looking to deliver 48 large gas carriers or 2 million metric tonnes of LPG by 2026. Requests for comments were not immediately responded to by the companies. The award of the tender would reduce India's LPG imports from Middle East suppliers and help India diversify its fuel sources, according to the experts. Saudi Aramco, a major Middle East producer, has already reduced the official price of propane to $495 per ton by $25. By $15 per ton, to $475 per tonne Butane In July, it was reported that India intends to import about 10% of cooking gas from the U.S. starting in 2026. Middle Eastern LPG producers are the main suppliers of LPG to the world's third largest oil importer. In 2024, more than 90% its 20.5 million metric tonnes of imports will come from this region.
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South Sudan President fires Military Chief after Three Months, Restores Predecessor
State-run TV reported that South Sudan President Salva Kiir removed the country's chief of military and reinstated its predecessor, whom Kiir had dismissed three months earlier. South Sudanese military and government officials are undergoing a constant turnover as Kiir struggles to deal with the armed conflict in the country and the speculation about his succession. Kiir has been leading a transitional administration in the impoverished, fractured country since its independence from Sudan, in 2011. Elections have been delayed twice and Riek Makar, Kiir’s main rival in a civil war that lasted from 2013-2018, was accused of treason last month. South Sudan Broadcasting Corporation reported late Wednesday that Kiir appointed Paul Nang Majok as the new Chief Defence Forces to replace Dau Aturjong, without giving any reason for this decision. Aturjong has been reassigned as a technical advisor at the Ministry of Defence. Kiir sacked Majok in July without any explanation and replaced him by Aturjong. This decision was made after renewed fighting in northeast, where the military had been briefly overrun with a Nuer militia. Machar was placed under house arrest by the government in March on suspicion of supporting militias. He was then tried for crimes against humanity, murder, and treason last month. Machar denies the allegations. His detention reignited concerns of a full-blown civil conflict, as his supporters accused the government of violating an agreement signed in 2018 for peace and power sharing. Analysts believe that Kiir’s repeated shake-ups in the government and security apparatus is a way to consolidate his power and keep various factions happy. Last month, U.N. inspectors accused South Sudanese officials of "systematic looting", or stealing the nation's resources for personal gain.
Aramco signs deal to increase stake in struggling JV, Petro Rabigh
Saudi Aramco announced on Thursday that it had acquired a 22,5% stake in the joint venture for refining and petrochemicals Petro Rabigh, from Japan's Sumitomo Chemical. The acquisition is part of the turnaround plan for this loss-making venture.
This agreement increases Aramco’s stake in Petro Rabigh from about 40% to 60%. It is part of an effort to improve the performance at the joint-venture, which has suffered significant losses over recent years due to a difficult global market for petrochemicals.
According to calculations, Petro Rabigh's last full-year profit was in 2021. Since then, the company has accrued net losses totaling 12,4 billion riyals.
Petro Rabigh's turnaround plan comes at a time when Aramco, Saudi Arabia’s long-time cash machine, is navigating a period of reduced profit due to lower oil price. In August, the company reported a 22% decline in its second-quarter profits. It also announced cost-cutting initiatives across the company and an intention to divest assets that are not core to free up capital for more profitable investments.
Petro Rabigh’s turnaround plan includes the waiver $1.5 billion of shareholder loans, and a future joint injection of 5,26 billion riyals to be split equally between Aramco & Sumitomo.
The joint venture stated in a filing that "the board welcomed the steps and measure agreed to be taken" by Saudi Aramco. This shows its support as a significant shareholder for the long-term potential of Petro Rabigh.
Sumitomo will now own 15% of the company.
Aramco stated that the move would allow it to strengthen the downstream value chain by securing its crude oil placement and converting it more into high-valued products.
Aramco will assume the marketing rights of Petro Rabigh products as part of this agreement. Mark Potter edited the report by Yousef Sabah.
(source: Reuters)