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Wall St. wobbles as Treasury yields drop due to Nvidia data and results
U.S. stock prices fell and Treasury yields dipped as investors began a week filled with accelerated data releases following the longest shutdown of government in US history. Nvidia, the chipmaker that is a bellwether for artificial intelligence, will report its quarterly earnings on March 28. The results of this sector are expected to be closely scrutinized by investors looking for signs of waning interest in the area which has been driving the recent stock market rally. In early trading, all three major U.S. indexes were modestly lower. The U.S. Federal Reserve is expected to implement its third rate reduction of the year next month, despite the absence of official economic statistics. This week, to make up for lost ground, promises a number of reports that have been pending, including Labor Department's September Employment Data scheduled for Friday. Tim Ghriskey is a senior portfolio strategist with Ingalls and Snyder in New York. There's a lot of uncertainty as to what to expect after several months of data. Over the next few weeks, this will be a major focus. Over 90% of companies in the S&P 500 have reported their third-quarter results. LSEG data shows that 83% of these companies have reported results above consensus. Nvidia will release its highly anticipated results on Tuesday, but retailers like Home Depot, Target, and Walmart should also shed light on consumer demand. The Dow Jones Industrial Average dropped 88.54, or 0.19% to 47,057.29; the S&P 500 declined 8.70, or 0.12% to 6,725.70; and the Nasdaq Composite was down 11.24, or 0.04% to 22,891.44. European stocks fell as investors resisted placing large bets in anticipation of the long-delayed U.S. employment data. MSCI's global index of stocks fell by 2.35 points or 0.24% to 993.08. The pan-European STOXX 600 fell by 0.49% while Europe's broad FTSEurofirst 300 fell by 11.70 points or 0.51%. Emerging market stocks increased by 2.37 points or 0.17% to 1,387.98. MSCI's broadest Asia-Pacific share index outside Japan closed up 0.12% to 714.73, while Japan's Nikkei dropped 52.62 or 0.10% to 50,323.91. Treasury yields fell amid concerns about AI growth, and traders analyzed whether the Fed would cut rates next month after delayed inflation and unemployment reports became available. The yield of the benchmark 10-year U.S. notes dropped 1.3 basis points from Friday's 4.148% to 4.135%. The 30-year bond rate fell 1.3 basis point to 4.7328%, from 4.746% on Friday. The yield on the 2-year note, which is usually in line with expectations of interest rates from the Federal Reserve (usually a laggard), rose 0.4 basis point to 3.619%. Currency traders were on alert when the official U.S. economy data resumed, especially after some non-government statistics such as ADP’s National Employment index which suggested a softening of the labor market. The dollar index (which measures the greenback versus a basket including the yen, euro and other currencies) rose by 0.14%, reaching 99.46. Meanwhile, the euro fell 0.2% to $1.1597. The dollar gained 0.42% against the Japanese yen to reach 155.19. Investors weighed fears of an oversupply against looming sanctions on Russia's Lukoil. Crude prices dipped after plummeting 4% the previous session. U.S. crude oil fell by 0.3% to $59.91 per barrel. Brent fell by 0.26% to $64.22 a barrel. Gold slipped against a stronger dollar. Spot gold dropped 0.36%, to $4.064.43 per ounce. U.S. Gold Futures dropped 0.5% to $4.067.20 per ounce.
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TotalEnergies Corsica and partners fined $217 Million over fuel deal
The French antitrust authority fined TotalEnergies and Rubis a total of 187 million euro ($217.3) for an anticompetitive agreement that increased fuel prices in Corsica. The island's population is just over 350,000 and it relies heavily on automobiles for transport. All fuels are imported through DPLC depots, which are jointly owned by Rubis TotalEnergies, EG Retail, and TotalEnergies. The watchdog stated that between 2016 and 2023, no other company is allowed to use these depots. The watchdog stated that the agreement reserving the use of Corsican depots for DPLC shareholders only is anticompetitive, and will likely shut out competitors at the expense of consumers. TotalEnergies, EG Retail and EG Retail didn't respond to a comment request immediately. Rubis' spokesperson stated that the company is evaluating the decision of the authority. An investigation was launched in response to a complaint filed by Ferrandi, a fuel distributor from the Mediterranean island. The watchdog said that outsiders like Ferrandi had to buy their fuel at higher prices because their competitors imposed conditions. TotalEnergies received a fine of 115,8 million Euros. Rubis was ordered by the court to pay 64,7 million euros and EG Retail, a smaller company was fined seven million euros. Companies can appeal the fines, but the appeal process will not suspend payment.
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Investors focus on US data as gold prices fall
The gold price fell on Monday as a result of the stronger dollar, and investors' reduced expectations for a U.S. rate cut in January. Investors were also awaiting delayed economic data that could provide clues about the Federal Reserve policy. As of 10:27 ET (1427 GMT), spot gold was down by 0.2%, at $4,070.80 an ounce. U.S. Gold Futures for December Delivery eased 0.6%, to $4.071.40 an ounce. Dollar-priced gold is now more expensive for holders of currencies other than the dollar. David Meger said that there is "some choppy trading" on the market ahead of what will be expected to become a flood of economic data, now that the U.S. Government has reopened. "Right Now, there is a lower expectation of additional Fed rate reductions, which has dented gold's optimism." The Fed minutes of its last meeting where they cut rates by 25 basis point are scheduled for Wednesday. Also on the calendar this week is September's jobs data, which will be released on Thursday. A growing number of Fed policymakers are hawkish about rate cuts at the next central bank meeting in December. The CME FedWatch tool shows that traders are now pricing in a probability of 45% for a rate cut of 25 basis points in December. This is down from 60% last week. The CME FedWatch tool shows that at least four Fed speakers are scheduled to speak in the afternoon, including Governor Christopher Waller, and New York Fed president John Williams. Gold is an asset that does not yield any interest, so it tends to do well in low-interest rate environments. Analysts at Scotiabank estimate that gold prices will be $3,800/oz in 2026, up from $3,450/oz currently. They cite uncertain economic conditions as well as a possible decline in interest rates. Other than that, silver spot rose by 0.4%, to $50.75 an ounce. Platinum fell by 0.3%, to $1.537.16, while palladium dropped 0.1%, to $1.386.18. (Reporting and editing by Shilpi Mahumdar in Bengaluru)
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US construction spending increases in August
The U.S. construction sector unexpectedly recovered in August, driven by renovations of single-family homes and higher mortgage rates. Census Bureau of the Commerce Department reported on Monday that construction expenditures increased by 0.2% following a 0.2% increase in July, which was upwardly reviewed. The economists polled had predicted that construction spending would decline by 0.1% following a 0.1% drop in July. In August, spending decreased by 1.6% compared to the same period last year. The report was originally due on October 1 but the record 43-day federal shutdown delayed it. The report was published first, and the September monthly employment report is now set to be released on Thursday. In August, spending on private construction projects increased by 0.3%. The investment in residential construction increased by 0.8%. Outlays for new single-family projects fell by 0.4%. The spending on multi-family units, which make up a small part of the housing market rose by 0.2%. Renovations are likely to be the reason for the increase in residential construction. Data from mortgage finance agency Freddie Mac shows that mortgage rates have fallen from their high levels in August, as the Federal Reserve has resumed interest rate reductions. This could boost construction in September. Mortgage rates are no longer falling as the U.S. central banks have indicated a reluctance in lowering rates next month. The tepid job market also discourages potential homebuyers. In August, the number of new housing units was high, which may have discouraged builders from taking on new projects. In August, investment in non-residential structures such as offices and factories decreased by 0.3%. The amount spent on public construction projects remained unchanged. The spending on construction by state and local governments was unchanged as well, whereas federal government expenditures declined 0.8%. Lucia Mutikani, reporting; Paul Simao, editing.
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Former leader of Spain's Valencia Region grilled by parliament over deadly flooding
Carlos Mazon said on Monday that the authorities didn't know people were drowning, when he was interrogated for hours about the handling of the floods of last year that killed 229. Mazon announced on 3 November that he was resigning under pressure from all sides of the political spectrum. However, he remains under close scrutiny. Mazon was accused by the leader of the hard-left Podemos party of being personally liable for the deaths. The spokesperson of the leftist Catalan ERC party said that he should go to jail. Mazon's testimony at the commission of inquiry was followed by victims' families outside Madrid's lower house. Several people who were caught in the floods also gave their testimony. "NO ONE WAS AWAREN" Mazon, who was accused of inaction by some lawmakers, countered the authorities' ignorance of the magnitude of the disaster as floodwaters swept through Valencia, October 29, 2024 causing billions and millions of euros worth of damages. Mazon stated that "no one knew the magnitude of what was happening, no one knew people were drowning." He didn't provide any additional details about that day, such as a long lunch with a journalist in a restaurant or a 45 minute period when his bodyguards weren't present and records showed that the chief of emergency services was trying to contact him. He said to the parliament that he couldn't give an exact timetable of his location: "I can't be precise about exact timings." He said that "nothing" would have changed if he left the meeting earlier and had arrived at the crisis committee meeting. HE SAYS MESSSAGES OF WARNING ARE NOT HIS RESPONSIBILITY Idoia Sagastizabal, a PNV Basque Party lawmaker, echoed criticism from others who said that his version of events had repeatedly changed. "There are many gaps in your versions." Mazon defended the missed calls of his emergency chief, and claimed that it was not his fault that the official flood warning message reached residents' phones hours after the disaster had occurred. Many people were already dead. Gabriel Rufian, spokesperson for the ERC, told Mazon: "I hope that you will pay with your prison sentence for all you have done." He held up photos of victims while demanding Mazon to publicly apologize. Sumar and Socialists in Spain's ruling alliance, both parties criticised the management of the reconstruction funds by Mazon's regional council, which is run by the conservative People's Party. Mazon blamed political strategy for the lack of support by the central government. He said that when he resigned in the beginning of the month he had made mistakes, and he "would have to live with them the rest my life". Mazon's replacement has not yet been sworn in. It is expected that he will be replaced by a PP leader. Reporting by Jesus Calero, David Latona and Alison Williams
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Study finds that deforestation in Brazil’s Cerrado region reduces soybean production potential
According to a study published on Monday, clearing land for agricultural purposes in Brazil's Cerrado tropical Savanna region leads to drier conditions which ultimately harm soybean yields. The study was first shared with and argues that falling yields drive farmers to clear more land. This further accelerates degradation of Brazil's largest biome, the Amazon, and hinders conservation efforts. Zero Carbon Analytics released a press release detailing the findings of their study. "Our new analyses found that farmers clearing native vegetation to plant soy have climate impacts far beyond the cleared areas," the group said. Brazil's Cerrado Region covers more than 2,000,000 square kilometers (772204 square miles) or 23% of its territory. If land in the region had not been cleared since 2008 for soy, the region would have produced $9.4 billion more soy. This is nearly 8% more than its total soy production over the 10 year period covered by the study. Zero Carbon Analytics analyzed soy production and yields from 840 Cerrado municipalities between 2013 and 2023. They also looked at rainfall and aridity. According to Brazilian crop agency Conab data going back to 2008/2009, Brazil's soy yields have a tendency to increase. It grew by 38% in 2024-2025, thanks to new technologies such as GMO seeds and improved farm inputs. Joanne Bentley McKune, author of the peer-reviewed study, said, "Our analysis doesn't deny that production has increased." The study shows that production is increasing despite climate losses. Bentley-McKune stated that the difference between what soy could have produced and what actually was produced, estimated at 34 million tons due to deforestation of the Cerrado between 2013-2023, shows "the gap" between what we achieved and what we could have achieved if these technological advances had not been made. Brazil, which is the world's largest soy exporter and producer, and also a major soy supplier to China will harvest around 178 million tonnes in the current crop season. (Reporting and editing by Paul Simao.)
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Former Lukoil CEO and Iraqi PM discuss possible solutions to US sanctions
The office of the Iraqi prime minister said that Mohammed Shia al-Sudani, met with former CEO of Russia’s Lukoil on Monday to discuss how to resolve disruptions in the oil company’s operations following U.S. Sanctions. Sources told us last week that Lukoil declared force majeure on its West Qurna-2 oil field in southern Iraq. This is the largest fallout from the sanctions imposed last month against Russian oil companies as U.S. president Donald Trump pushed to end the conflict in Ukraine. Sudani told Vagit Aliekperov Iraq was committed to stable oil markets worldwide, according to a press release from his office. It added that the West Qurna-2 operation continues to produce approximately 480,000 barrels of oil per day. This field, Lukoil’s most valuable foreign asset, accounts for roughly 9% Iraq’s oil production. In the statement, Alekperov was incorrectly described as "head" of Russia's Lukoil. Alekperov - Russia's richest man - resigned from his position as Lukoil CEO in 2022, after Britain imposed sanctions on him. In what capacity did he speak on behalf of Lukoil? Officials have warned Lukoil that if the conditions of force majeure at West Qurna-2 continue for more than six months, they could stop production and abandon the project. Officials on the ground said that production was continuing as normal, but warned that output could slowly decline if issues with finances are not resolved quickly. Sources said that payments to Lukoil were frozen, and crude allocations canceled, as Iraq sought a way to maintain the oil field without violating sanctions. (Reporting and writing by Ahmed Rasheed, Elwely Elwelly, Editing by Joe Bavier.)
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Congo bans trade in minerals from war-torn east
The mines ministry announced that the Democratic Republic of Congo extended for another six months the ban on trading minerals from dozens of sites of artisanal gold mining in the conflict-hit provinces of North and South Kivu. The extension increases compliance pressure on global supply chain for tin tantalum and titanium, which are key inputs to the electronic, automotive, and aerospace industries. According to an order signed by Mines Minister Louis Watum Kabamba on November 3, the ban introduced in February is still in effect because there is evidence that the illegal supply of mines funds armed groups in eastern countries. The order was posted on social media by the Ministry of Industry and Trade on Sunday. It applies to 38 sites that produce coltan (cassiterite), wolframite (wolframite), and cassiterite (wolframite) - all ingredients used to make tin tantalum, and tungsten in Masisi Territory in North Kivu, and Kalehe Territory in South Kivu. M23 rebels, backed by Rwanda, and other armed group have taken over significant territory in the mineral-rich east of Congo. The M23 offensive this year has resulted in the deaths of thousands and displacement of hundreds of thousands. According to U.N. expert and rights groups, mineral wealth is a major factor in fueling violence, as combatants use gold, cassiterite, and coltan to fund their operations. In December 2024, the U.N. reported that revenues from smuggled mineral sales were used to fund military operations and sustain a war-economy. The order from the Mines Ministry prohibits sourcing or exporting from the mines in question. It also states that they could be subject to independent audits, either by the Ministry or international organizations such as the U.N. Congo filed criminal complaints against Apple subsidiaries in France and Belgium in 2024. They alleged that the supply chains contained minerals stolen from conflict zones despite Apple’s disclosures made under U.S. laws. Apple has denied these allegations and said that it had instructed its suppliers to cease purchasing minerals from Congo and Rwanda. The U.S. courts also heard claims that Apple, Google, Tesla, Dell, and Microsoft were relying on cobalt from Congo mines under abusive conditions, but those lawsuits were dismissed. Reporting by Congo Newsroom; writing by Maxwell Akalaare Adombila, editing by Rob Corey-Boulet & Susan Fenton
Algeria's president Tebboune wins second term with 95% of vote
Algerian authorities declared President Abdulmadjid Tebboune the frustrating winner of Saturday's election on Sunday, however a rival prospect declared abnormalities in the count and fewer than half of signed up voters cast ballots.
Official initial results offered Tebboune 95% of the vote, enough to avoid a second round run-off, with Abdelaali Hassani Cherif getting 3% and Youcef Aouchiche 2%. Turnout was 48%.
Tebboune, backed by the military, was facing just nominal opposition from Hassani Cherif, a moderate Islamist, and Aouchiche, a moderate secularist, both keeping up the true blessing of Algeria's powerful facility.
Hassani Cherif's campaign stated ballot station officials had been pushed to inflate outcomes and alleged failures to provide vote-sorting records to prospects' agents, as well as instances of proxy group voting.
It did not state whether it thought the violations had affected the outcome and Reuters might not instantly reach Tebboune's or Aouchiche's project for comment.
However, electoral commission head Mohammed Charfi said when announcing the outcomes that the body had worked to guarantee openness and reasonable competition amongst all prospects.
Tebboune's re-election suggests Algeria will likely continue with a governing program that has resumed lavish social spending based on increased energy profits after he entered into workplace in 2019 following a duration of lower oil costs.
He has guaranteed to raise welfare, pensions and public housing programmes, all of which he increased during his initially term as president.
As long as Tebboune continues to raise salaries and pensions and preserve aids he will be the very best in my eyes, stated Ali, a customer in the Ouled Fayet district of Algiers, asking not to compose his family name.
Very first chosen throughout the mass hirak (movement) protests that required his veteran predecessor Abdulaziz Bouteflika from power after 20 years, Tebboune has backed a hard technique from the security forces, which have actually imprisoned popular dissidents.
His election in 2019 reflected the anti-establishment state of mind in Algeria that year, with turnout of 40%, far below the levels of previous nationwide votes.
The protests, which brought hundreds of thousands of people onto the streets every week for more than a year requiring an end to corruption and the ousting of the judgment elite, were lastly curtailed by the COVID pandemic.
Turnout is very low. It reveals that the vast majority is like me, stated another Ouled Fayet citizen, Slimane, 24, who likewise asked not to offer his household name. He did not vote because he does not trust political leaders, he said.
UNEMPLOYMENT BENEFITS
Russia's intrusion of Ukraine in 2022 boosted European need for Algerian gas and pushed energy costs back up, increasing Algerian state income after years of burning through foreign exchange reserves and resulting in brand-new hydrocarbons projects.
While using much of the cash for social handouts, Tebboune's federal government has also pushed financial reforms aimed at enhancing the economic sector to create jobs.
However, while joblessness is down from its highs of around 14% throughout the pandemic, it stayed above 12% last year and inflation is also high.
The economic troubles faced by common Algerians might have actually added to the low turnout on Saturday.
Turnout at 48% versus 40% in 2019 clearly reveals that the gap between rulers and individuals is still to be filled, stated political expert Farid Ferrari.
In diplomacy, Tebboune's record is patchy.
Despite Algeria's key function in Europe as a gas supplier, arch local competing Morocco has succeeded in winning over Spanish and French acceptance of its sovereignty over Western Sahara, where Algiers backs the Polisario separatists. Morocco has won over some African and Arab mentions too.
On the other hand, Algeria's push for membership of the BRICS group when it broadened in January was warded off, with the bloc instead inviting Egypt, Ethiopia, Iran and the United Arab Emirates to join. Algeria instead signed up with the BRICS advancement bank last month.
Its efforts to bring greater stability in Africa's Sahel region also ran adrift, with an attempt to moderate in between competitor forces in Niger following a coup last year failing to provide development.
However, Algeria remains a significant military power in the region and seems not likely to move from its traditional position balancing ties in between Western powers and Russia.
(source: Reuters)