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Dollar firms focus on US inflation data as gold falls
Gold prices fell on Thursday as a result of a stronger dollar. Investors were awaiting the key U.S. data on inflation due later in the week to get hints on interest rate changes. As of 0502 GMT, spot gold was down by 0.1%, at $4,089.21 an ounce. U.S. Gold Futures for December Delivery climbed 1% to $4104.70 an ounce. Gold is now more expensive to other currency holders due to the 0.2% rise in the dollar index. "We have seen a normal correction after the recent rally of gold, and there is still some downward pressure." GoldSilver Central MD Brian Lan stated that we expect the prices to continue their upward trend and consolidate afterward. "At the moment, we're still bullish on the gold market in the long term, but short-term investors need to be careful because volatility is high." After a delay caused by the government shutdown, Friday's U.S. Consumer Price Index report is expected to reveal that core inflation remained at 3.1% for September. Investors are almost certain that the Federal Reserve will cut rates by 25 basis points at its meeting next week. When interest rates are low, gold tends to increase in value as the cost of non-yielding metals is reduced. Donald Trump, the U.S. president, said that he was expecting to reach a deal with Chinese President Xi Jinping. He also stated that he will raise concerns regarding China's purchase of Russian oil at their next meeting in South Korea. The Trump administration is mulling over a plan that would curb an array of software-powered products exported to China. These include laptops, jet engines and even aircraft. This move is in response to Beijing's recent round of restrictions on rare earth exports. Trump has imposed sanctions against Russia related to the Ukraine for the first times in his second term. He targeted oil companies Lukoil, and Rosneft. Gold prices are up 56% in the past year. They reached a record high of $4,381.21 Monday. This is due to geopolitical, economic and rate-cutting bets, as well as sustained central bank purchases. Other metals, such as platinum and palladium, also fell. Palladium dropped 1.7%, while platinum rose 0.1%.
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Asian markets fall as US considers new trade restrictions on China
Asian stocks dropped for a second consecutive day on Thursday, as Wall Street was hit by a sell-off due to lackluster earnings from the tech giants. Meanwhile, U.S. sanctions on Russia and possible export controls against China rekindled geopolitical concerns. After the U.S. placed sanctions on Rosneft, and Lukoil - two major Russian oil companies - over the Ukraine conflict, the price of oil jumped 3%. The broadest MSCI index of Asia-Pacific stocks outside Japan fell 0.4% last week, while Japan's Nikkei225 dropped 1.5%. Chinese stocks dropped as much as 1,1% after sources claimed that the White House was considering a plan aimed at curbing a range of software-powered products exported to China as retaliation against Beijing's recent round of restrictions on rare earth exports. Investors are on the defensive as Trump's Asia trip (next Monday) is causing geopolitical tensions, according to Charu Chanana of Saxo Bank, Singapore. The talk about U.S. software import curbs to China is hitting tech sentiment where it hurts. And renewed sanctions against Russia are a reminder of geopolitical risk that's not going away. As corporate earnings season begins, global equity markets are taking profits and easing from record highs. Although megacaps' results and outlooks disappointed investors, the majority of companies have so far surpassed analysts' expectations. South Korean stocks dropped 0.7% due to a general decline in tech hardware manufacturers. As expected, the Bank of Korea held rates at their current level. Brent crude rose 2.9% to $64.41 a barrel on Wednesday after U.S. president Donald Trump imposed sanctions related to Ukraine for the first in his second term. The sanctions targeted Rosneft, and Lukoil. The move was made on the same day that EU countries approved their 19th package on Moscow, which included a ban of Russian liquefied gas imports. Kyle Rodda is a senior analyst at Capital.com, a Melbourne-based market research firm. "Most Asian countries are net energy consumers and this inhibits their growth and is only a marginal factor in inflation." Reliance Industries, India's biggest buyer of Russian oil, plans to drastically reduce its imports in response to EU and US sanction. Other Indian refiners are also expected to make significant reductions. Energy Information Administration reported on Wednesday that U.S. crude, gasoline, and distillate inventory fell last week due to increased refining and demand. S&P 500 futures rose 0.1% following a second consecutive day of losses for U.S. shares overnight, as analysts were disappointed by earnings reports from megacap tech companies. Netflix shares dropped more than 10% Wednesday after the streaming giant gave investors a sour outlook for the next quarter. Tesla shares dropped 3.8% after-hours after the company reported a profit that did not meet analysts' expectations despite a record third-quarter sales that exceeded estimates. Apple shares dropped 1.6% on Wednesday after two civil rights groups filed a complaint with EU antitrust regulators over the App Store terms and conditions and its devices. The groups claimed that Apple had violated landmark rules intended to rein in Big Tech. Treasury bonds fluctuated in value, and the yield of the U.S. 10 year note closed at 3.9549%. This is up 0.19 basis points from the previous close of 3.95%. Investors think that the Federal Reserve will continue to ease policy. Fed funds futures indicate a 96% probability that the U.S. Central Bank will cut interest rates by 25 basis points at its meeting on October 29. This is compared to a 98.3% possibility on Wednesday. The U.S. Dollar Index, which measures greenback strength against a basket six currencies, last traded 0.1% higher at 99.062. In early Asian trading, gold prices were close to $4,000 per ounce and down by 0.2%. Investors booked profits before the U.S. inflation report due this week.
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Shanghai copper prices rise as US trade restrictions against China are considered
Shanghai copper rose on Thursday, thanks to bullish expectations about China's five-year plan. This was despite renewed tensions between China and the United States, where the White House is considering limiting software exports. As of 0330 GMT, the most active copper contract traded on the Shanghai Futures Exchange rose 0.73%, trading at $86,610.81 per metric tonne. The benchmark three-month price of copper rose 0.26%, trading at $10,691 Yuan per ton. The focus of the market is on the Fourth Plenum of the ruling Communist Party, which will close on Thursday. This meeting is to finalize a draft proposal for the 15th five-year plan outlining the goals and objectives of economic and social growth. Analysts and observers expect that these goals will focus on consumption as well as technological advancements and industrial upgrades. According to National Bureau of Statistics data released on Wednesday, China's output of copper in September fell 2.7% from month-to-month despite an increase of 10% year-over-year. The decline month-on-month was in line the market expectations. Traders expect further decline in October. The country's Mines Minister said that Angola will begin producing its first major copper mine soon, which is owned by China's Shining Star Lcarus. Copper's gains shrugged off renewed trade tensions following reports that Washington could bar exports to China for items made using U.S.-developed software as a response to China’s new rare earth restrictions. Sources say that the details are unclear and that it is possible that this plan will not go ahead. When asked by reporters about proposed software limitations, U.S. Treasury secretary Scott Bessent said on Wednesday that he was "open to everything". Aluminium was also up 0.59% among SHFE's base metals. This followed a move on the LME where the 3-month aluminium hit $2,822 per ton. It is the highest price since June 2022. Century Aluminum announced on Tuesday that its Iceland smelter was forced to reduce production by two-thirds due to a failure of electrical equipment. Zinc rose 1.27%. Lead soared 3.12%. Tin fell 0.15%. Nickel was little altered. Other LME metals saw a slight decline in zinc, a gain of 0.58% for lead, and little change for nickel or tin. ($1 = 7.1230 Chinese yuan renminbi) Thursday, October 23, DATA/EVENTS 0500 Japan Chain Stores Sales YY Sep 645 France Business Conditions Mfg, Overall Oct 1400 UK CBI Business Confidence Q4 Flash Oct 1400 Existing Home Sales in the US Sep (Reporting and Editing by Janane Vekatraman; Lewis Jackson, Dylan Duan)
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Dollar firms focus on US inflation data as gold falls
Gold prices fell on Thursday as a result of a stronger dollar. Investors were awaiting the key U.S. data on inflation due later in the week to get hints on interest rate changes. As of 0310 GMT, spot gold was down by 0.2%, at $4,084.29 an ounce. U.S. Gold Futures for December Delivery climbed 0.9% per ounce to $4,100.90. Gold is now more expensive to other currency holders due to the 0.2% rise in the dollar index. "We have seen a normal correction after the recent rally of gold, and there is still some downward pressure." GoldSilver Central MD Brian Lan stated that we expect the prices to continue their upward trend and consolidate afterward. "At the moment, we're still bullish on the gold market in the long term, but short-term investors need to be careful because volatility is high." After a delay caused by the government shutdown, Friday's U.S. Consumer Price Index report is expected to reveal that core inflation remained at 3.1% for September. Investors are almost certain that the Federal Reserve will cut rates by 25 basis points at its meeting next week. When interest rates are low, gold tends to increase in value as the cost of non-yielding metals is reduced. Donald Trump, the U.S. president, said that he was expecting to reach a deal with Chinese President Xi Jinping. He also stated that he will raise concerns regarding China's purchase of Russian oil at their next meeting in South Korea. The Trump administration is mulling over a plan that would curb an array of software-powered products exported to China, ranging from laptops and jet engines to counter Beijing's recent round of restrictions on rare earth exports. Trump has imposed sanctions against Russia related to the Ukraine for the first times in his second term. He targeted oil companies Lukoil, and Rosneft. Gold prices are up 56% in the past year. They reached a record high of $4,381.21 Monday. This is due to geopolitical, economic and rate-cutting bets, as well as sustained central bank purchases. Silver fell 0.2% at $48.43 an ounce; platinum fell 0.6% at $1,612.90, and palladium dropped 1.1% to $1.442.70.
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Ocean Winds Sells 20% Stake in French Offshore Wind Farm to Allianz for $230M
Ocean Winds, the 50-50 joint venture between Portugal’s EDP Renováveis and France’s Engie, has agreed to sell a 20.25% stake in its 500 MW Îles d’Yeu et Noirmoutier offshore wind project in France to Allianz Global Investors for $232 million.Located in Vendée on France’s Atlantic coast, the Îles d’Yeu et Noirmoutier offshore wind farm consists of 61 Siemens Gamesa turbines of 8.2 MW each and is backed by a 20-year inflation-linked feed-in tariff ensuring long-term revenue stability.The transaction implies an enterprise value-to-megawatt ratio of $6.5 million, according to EDP, which holds a 71.3% stake in EDP Renováveis.Following a final investment decision in April 2023, construction has reached its final phase.Power generation began in June 2025, with more than half of the turbines already installed and supplying electricity to French households.The wind farm is expected to be fully commissioned by the end of 2025.After the sale, the project’s ownership will comprise Ocean Winds with 40%, Allianz Global Investors with 20.25%, Sumitomo Corp with 29.5%, Banque des Territoires with 9.75%, and Vendée Energie with 0.5%.
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Trump Halt on Offshore Wind Hits US Shipbuilders, Ports
U.S. shipbuilders and port operators are getting hit in the fallout from President Donald Trump’s campaign to wipe out the offshore wind industry, suffering hundreds of millions of dollars in lost government support, vanishing vessel orders, and an uncertain future for the billions of dollars' worth of investments.The impact represents an unintended consequence of Trump’s policy on the offshore wind industry, which has included stop-work orders and permit reviews for massive projects that were spurred by former President Joe Biden's green investment policy.Trump calls offshore wind an unsightly and inefficient technology that harms whales and birds. But he is also a huge supporter of U.S. maritime industries that he views as crucial in the global competition for trade and military dominance of the high seas."He has a counterproductive argument," said Joe Orgeron, a Republican Louisiana state representative and former offshore vessel business owner, who pointed out the offshore wind industry was responsible for many ship orders in recent years. “That all came to a sudden halt, unfortunately."Reuters interviewed 13 port representatives, shipbuilders and trade groups who detailed the knock-on impacts of Trump’s policy moves targeting offshore wind, the details of which are reported here for the first time.The impacts include more than $679 million worth of canceled Department of Transportation financing for ports to support offshore wind, including a $34 million grant for a facility in Salem, Massachusetts that was expected to generate $75 million in tax revenue over 20 years and create 800 jobs.Meanwhile, orders for new offshore wind service vessels - designed to carry workers and huge turbines offshore or to lay undersea cable - have also disappeared, according to trade group Oceantic, following a busy 2024 that saw the launch of at least 10 U.S. vessels built to serve offshore wind.Existing vessels are also being sold off, or considered for redeployment to other global regions, according to the reporting.The Trump administration said it can revive the U.S. shipbuilding and port industry, which has suffered from years of cost-inflation and a dearth of government support, without offshore wind’s support."This administration will restore America’s maritime dominance by modernizing our ports and expanding our shipbuilding capacities to compete with communist China," the U.S. Department of Transportation told Reuters."We’re also doing it as quickly and cost-effectively as possible— two attributes completely absent in offshore wind manufacturing."BIG CANCELLATIONDanish shipping giant Maersk canceled a $475 million contract earlier this month for a ship that was custom designed to install massive turbines at the Empire Wind power project off the coast of New York, laying bare the downturn in vessel demand.Equinor's Empire Wind had been embroiled in Trump’s opposition to offshore wind earlier this year when the administration issued a stop-work order that delayed its construction for a month.The ship’s builder, Singapore-based Seatrium, said it was evaluating its options for the vessel, which was nearly fully built, and could take legal action.Offshore wind’s rise in the Northeast in recent years had fueled robust demand for many such vessels, including several built in U.S. shipyards or flying U.S. flags, according to trade group Oceantic Network. It said the sector cumulatively has attracted $5.1 billion in port investments and $1.8 billion in vessel orders.Among the vessels built is the $715 million Charybdis, the only U.S.-flagged wind turbine installation vessel, which is now working on Dominion Energy’s D.N Coastal Virginia Offshore Wind project.Louisiana’s Edison Chouest also built two major offshore worker housing vessels for Equinor and Orsted projects currently under construction.But that work is drying up.Offshore wind developer US Wind said in court documents filed this month it had been on track to secure specialized vessels for offshore wind installation, but the Trump administration's efforts to stop its Maryland project had disrupted that progress.Such vessels are scarce and booked years in advance, requiring early action to meet construction timelines, the company said.Rhode Island’s Blount Boats, which began building crew transfer vessels for offshore wind in 2016, said it has stopped completely.“We’ve moved on,” said Executive Vice President Julie Blount. “There are no contracts for those boats, and it’s simply because the Trump administration has closed that down.”Meanwhile, some existing vessels serving offshore wind are being sold off.Houston-based Seacor Marine announced in August it would sell two U.S.-flagged liftboats — used on the Block Island and South Fork offshore wind farms — to Nigerian oil and gas services company JAD Construction for $76 million, citing delays and cancellations.Seacor did not respond to a request for comment.Other ships face uncertain futures. The $200 million Acadia, America’s first rock installation vessel, will likely work overseas after completing jobs for Equinor and Orsted, said Bill Hanson of Great Lakes Dredge & Dock Corp.The company has no plans for more offshore wind vessels.PORTS REELING TOOOceantic estimated last year that more than two dozen U.S. ports were pursuing offshore wind projects. Many of those lost critical funding after the DOT canceled 12 grants worth $679 million in August, hitting projects in states including Massachusetts, New York, California, Maryland, and Virginia."It’s realistic to look at the current landscape and see that this industry is going to be deeply challenged by the current administration," said Salem Mayor Dominick Pangallo, whose city’s port project is struggling after a funding cancellation.In Northern California, the Humboldt Bay offshore wind port that lost $426.7 million - the bulk of the canceled DOT funding - is expected to be delayed by about five years to at least 2035, according to Chris Mikkelsen, executive director of the Humboldt Bay Harbor, Recreation and Conservation District.The project is hoping to be able to tap funds from a state climate bond to make up for the lost federal money.In Norfolk, Virginia, the developer of a marine logistics terminal that lost a $39 million DOT grant submitted a revised proposal refocusing the project away from offshore wind to align with the administration's priorities, city economic development officials told Reuters.Some port projects are still underway. Equinor's South Brooklyn Marine Terminal, which will support its Empire Wind project, is 70% complete and has employed about 3,000 workers, according to a company spokesperson.In Maryland, US Wind says it is sticking with its plan for a shoreline steel manufacturing facility that could serve the shipbuilding and energy industries despite both the cancellation of a $47.4 million port grant and the administration's plans to revoke the permit for its offshore wind project. But US Wind has also warned in court documents that it could face bankruptcy if its project is canceled.Jim Strong of the United Steelworkers union, which has a deal to supply workers for US Wind's facility, said he was optimistic that Trump would see how investments in offshore wind can reverberate through industries that he cares about."He showed a tremendous amount of passion in his campaigns in talking about steel," Strong said of Trump. "I want to believe that once the story is out there, that there could be a change of positions."(Reuters)
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Focus on Chinese Communist Party and iron ore
Iron ore futures traded in a narrow band on Thursday, as investors looked for cues to demand from a number of data points and an important Chinese Communist Party gathering. The Communist Party's leadership is expected to announce its five-year plan during a four-day meeting held behind closed doors that began Monday. After a series of disappointing data, and amid the massive uncertainty caused by the US-China trade dispute, there were lingering hopes that China would unveil some stimuli to boost the economy and shore up consumer trust. As of 0237 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange increased 0.19% to reach 775.5 Yuan ($108.87). As of 0227 GMT, the benchmark November iron ore price on the Singapore Exchange had not changed much. It was $104.2 per ton. The market was waiting for data on steel, such as inventory and production to gauge the demand. Ore prices have been limited by the expectation that fundamentals will weaken in the fourth quarter due to robust shipments and declining demand. Analysts at Galaxy Futures stated that "oil prices will likely fall as increased supply coincides falling demand." Fortescue, an Australian company, reported a 4.2% increase in iron ore shipment for the first quarter on Thursday. Vale, a Brazilian mining company, reported its highest quarterly production of iron ore since 2018. Analysts predicted that the supply of coking coal and other steelmaking materials would be constrained in certain key production areas. The benchmarks for steel on the Shanghai Futures Exchange are mixed. Rebar rose by 0.39%. Hot-rolled coils advanced by 0.37%. Wire rod fell 0.18%. Stainless steel remained flat. ($1 = 7.1230 Chinese yuan). (Reporting and editing by Amy Lv, Colleen Howe and Subhranshu Saghu)
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Georgia Governor Kemp meets with Hyundai and LG officials in South Korea, reports media
The Maeil Business Newspaper reported on Thursday that Brian Kemp, governor of Georgia in the U.S., will meet with South Korean leaders of business this week. This includes executives from Hyundai and LG Energy Solution. Kemp's trip comes after U.S. Immigration authorities raided in September the construction site of an under-construction battery plant in Georgia owned jointly by Hyundai Motor, LGES and LGE. After a week-long negotiation between South Korea, the United States and South Korea, hundreds of South Koreans were arrested on suspicion of working without visas. The local public relations agency that handled Kemp's visit refused to comment. Hyundai Motors and LG Energy Solution declined to comment as well. The raid shocked the South Korean government as well as the public, and revealed the lack of access for South Koreans to visas of the right type that are needed by investment sites. In the first week of this month, The United States allowed South Koreans working on equipment in U.S. facilities under temporary visas. They also opened new channels for South Korea to send workers into the country to conduct business. Hyundai Motor and LG Energy have announced a $4.3 billion joint venture to produce EV batteries near Savannah, Georgia. Each company will hold a 50% share. The plant will provide batteries for Hyundai, Kia, and Genesis EVs. Hyundai's CEO stated that the raid will delay the startup of the battery plant by at least two or three months. Hyundai has invested $12.6 billion in the state. This includes the newly opened car factory. It is the "largest economic development project" in the history of the state. According to the Governor's Office, South Korea was Georgia’s third largest trading partner in 2018. Total trade exceeded $17.5 billion. (Reporting and editing by Christian Schmollinger; Heekyong Yahng)
Oil prices rise 2.5% following US sanctions against Rosneft and Lukoil
The oil prices rose by around 2.5% Thursday, continuing gains from the previous day, as concerns about supply resurfaced following the United States' sanctions against major Russian oil companies Rosneft, and Lukoil, over the Ukraine conflict.
Brent crude futures rose by $1.56 or 2.49% to $64.15 per barrel by 0303 GMT. U.S. West Texas Intermediate Crude futures gained $1.53 or 2.62% to $60.03.
The U.S. declared it was ready to take additional action, as it urged Moscow to immediately agree to a ceasefire of its war in Ukraine. Donald Trump, who is now in his second term as president, has refused to comply with the demands of U.S. legislators to impose sanctions on Russia, hoping to convince them to stop the war. He said that if there was no end to the fighting, it was now time.
Last week, Britain sanctioned Rosneft as well as Lukoil. Separately the EU approved a 19th set of sanctions against Russia, including a ban on Russian LNG imports.
"President Trump’s fresh sanctions against Russia's largest oil houses aim directly at choking Kremlin revenue - a measure that could tighten the physical flow of Russian barrels, forcing buyers to reroute volumes on the open market," said Phillip Nova’s senior market analyst Priyanka Sahdeva.
She added that if New Delhi reduces its purchases due to pressure from the United States, Asian demand could shift towards U.S. crude and increase Atlantic prices.
India state refiners said
They were reviewing
Their purchases of Russian oil to ensure that there will be no direct supply from Rosneft or Lukoil, after the U.S. placed sanctions on them.
Brent and WTI futures soared by over $2 per barrel immediately after the U.S. announced sanctions. This was also boosted by a sudden decline in US stocks.
The market was sceptical about whether U.S. sanction would result in a fundamental shift in supply, which limited the gains of oil.
Claudio Galimberti, Rystad Energy's global market analyst, said that the new sanctions between the US and Russia are increasing the tensions. However, the price of oil is more likely to be a reactionary move by the markets than a structural change.
He said that the sanctions imposed on Russia over the last 3.5 years had largely failed to affect either the volume of oil produced or the revenues generated by the country. Some buyers in India and China continued their purchases.
The markets expected a near-term surplus of OPEC+ supply due to the unwinding of production cuts to be a major price driver.
The three things I'll be paying attention to in November are the unwinding of OPEC+, China's crude stocks, and wars in Ukraine, Mideast and elsewhere, said Rystad analyst Galimberti. (Reporting and editing by Florence Tan, Tom Hogue, Kim Coghill; Reporting by Katya Glubkova from Tokyo)
(source: Reuters)