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Stocks rise as tech shares recover; Treasury yields increase
The stock indexes rose on Wednesday, as the technology sector recovered and U.S. payroll data came in stronger than expected. Treasury yields also increased. According to a survey of economists, U.S. private employment increased by 42,000 in October. This was more than double the 28,000 jobs expected. Some industries, such as professional services, have lost jobs for the third consecutive month. Private payroll data is closely scrutinized in light of the U.S. shutdown and the ongoing concerns about the weakness of the labor market. U.S. president Donald Trump has again asked Republican senators in an effort to end the longest government shut down in history to stop the filibuster. In late afternoon trading, the Nasdaq rose by more than 1%. After a sharp drop on Tuesday, an index of semiconductors rose 3.9%. Advanced Micro Devices shares rose 3.2% following an optimistic revenue forecast given by the company on Tuesday. Peter Cardillo is the chief market economist of Spartan Capital Securities, based in New York. He said that the ADP numbers suggested that perhaps if they align with the official figures - when finally released - the fears over the job market might have been overstated. He said that the possibility of a resolution to the U.S. government shutdown adds optimism. The Dow Jones Industrial Average rose by 291.82 points or 0.62% to 47,377.06, while the S&P 500 gained 52.37 points or 0.77% to 6,823.92, and the Nasdaq Composite increased 267.47 or 1.15% to 23,616.11. The MSCI index of global stocks rose by 4.10 points or 0.41% to 1,000.92. The STOXX 600 Index rose by 0.23%. Asia stocks took a heavy hit overnight. The Nikkei 225 index in Japan fell nearly 7% at one point from its record highs on Tuesday. Shares in South Korea dropped as much as 6,2%, before recovering some of their losses to fall by 2.9%. The global stock market has been flooded with enthusiasm for generative artificial Intelligence this year. It's a phenomenon that is compared to the dotcom boom. The dollar remained unchanged. The dollar has strengthened against the euro after last week's Federal Reserve interest rate cut of 25 basis points. Fed Chair Jerome Powell also said that a December cut is not predetermined. The euro rose 0.02% to $1.1484. The dollar gained 0.27% against the Japanese yen to 154.08. After recovering from its earlier losses, the leading cryptocurrency bitcoin rose 4.01% to reach $104,322.93. It fell 6.1% to $99,000 on Tuesday, the lowest level since June 22. The yields on U.S. Treasury bonds were higher following the unexpected data that showed continued economic resilience. The yield on the benchmark U.S. 10 year notes increased 7 basis points from late Tuesday to 4,161%. Spot gold increased 1.4% to $3.986.99 per ounce. The oil prices dropped as concerns about an oversupply in the world overshadowed signs of a strong demand for fuels in the United States. U.S. crude oil fell 96 cents, settling at $59.60 per barrel. Brent crude dropped 92 cents, settling at $63.52.
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Softs-Raw Sugar Prices fall to Five-Year Low, Cocoa Also Weakens
Raw sugar futures fell to their lowest level in five years on Wednesday. The potential for a large global surplus during the 2025/26 crop season is putting pressure on the prices. Dealers say that the expected increase in sugar production in India, which is the second largest producer in the world, has added to the concerns over excess supplies, as forecasts of the anticipated surplus have increased. After hitting a low of 14,05 cents, raw sugar futures fell 0.11 cent or 0.8% to settle at 14.11 cents. It appears that less cane is being diverted than expected to make ethanol, which has led to a rise in production. In a recent note, broker Czarnikow stated that "we now think India will produce more than sugar in 2025/26 with 32.8 million tonnes due to less sucrose going to ethanol." India produced 26.1 million metric tonnes in 2024/25. Czarnikow increased its forecast of the global sugar surplus in 2025/26 by 1.2 millions tons to 8.7million tons. The price of white sugar fell by $0.70 or 0.2% to $412.70 per ton. Concerns about weak demand following last year's price surge have weighed on cocoa futures. Barry Callebaut announced on Wednesday that they expect sales of their cocoa products will decline by a percentage between the low and mid single digits during its next financial year due to high cocoa prices. Market attention is also focused on the weather conditions in West Africa where crops are being harvested. In a report published on Wednesday, LSEG Research and Insights stated that "Wet weather could delay cocoa harvesting in southern Ghana and the western Ivory Coast and dry weather might favor Nigeria and Cameroon’s key crop areas." New York cocoa fell $204, or by 3.1%, from $6,396 per ton to $4,696 pounds. London cocoa also lost 3.2%, falling to 4,696 pound per ton. The price of arabica coffee increased 2.1%, to $4.136 a pound. Reporting by Nigel Hunt, Marcelo Teixeira, Editing by Shailesh Kumar, David Goodman and Rod Nickel
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Bulgaria drafts a law to allow the seizure and selling of Lukoil refinery
Local media reported that Bulgaria was drafting changes to its laws to allow it to take control of the Russian oil company Lukoil’s Burgas Refinery, which has been sanctioned by the U.S. Burgas, Bulgaria's sole oil refinery, was an important part of Lukoil’s international business empire. This began to crumble in recent days, after the U.S. and Britain imposed sanctions last month on Russia’s two largest oil firms over Moscow’s war in Ukraine. Mediapool, a Bulgarian outlet, reported the draft legislation on Wednesday. It would allow a special manager to supervise the sale of Burgas Oil Refinery. The owner, Lukoil, would not be able to vote or appeal, according to the reports. Boyko Borissov - former Bulgarian prime minister and leader the GERB coalition government – said: "There's a lot to this. That's why we are submitting a law draft today on the special governor." According to Martin Vladimirov of the Bulgarian Center for the Study of Democracy, appointing a special director to temporarily take operational control of Lukoil Bulgaria would "ensure security of energy, prevent a crisis of supply, and actively mitigate the risk of secondary sanctions in the future." Question of Ownership On October 30, Lukoil revealed that global commodity trading company Gunvor would purchase its foreign assets. Gunvor has yet to reveal how it will handle the massive deals and whether or not it will acquire each of Lukoil’s foreign assets. Gunvor's chief executive Torbjorn Tornqvist told Bloomberg Television Tuesday that "we may feel there are assets which we think would be better preserved by other hands", without going into further detail. Gunvor has not responded to the request for comment sent after European business hours. Lukoil was under pressure from the West to sell its Burgas refinery. In January, RIA reported that the price was $2 billion. Bulgaria has introduced a provision in 2023 for the appointment of a Burgas-based special manager to oversee critical infrastructure.
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EDP's 9 month profit drops 12% due to lower capital gains and beats expectations
EDP, Portugal's biggest power utility, posted a 12% drop in its nine-month profits, due to lower capital gains. However, the company still exceeded market expectations. The company said that the consolidated net profit was 952 million euro ($1.11 billion), which is higher than the LSEG consensus of 920 millions euros. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which is the earnings before interest, tax, depreciation, and amortization, fell by 3% on an annual basis to 3.8 billion euro, beating out the average survey figure of 3.7 billion euro. EDP Renovaveis, EDP's subsidiary for wind energy, has only booked 35 million euros of capital gains on the sale of solar and wind assets. This is part of an overall strategy to sell stakes in older plants in order to fund newer ones. Profits for the unit fell by 49%, to 107 millions euros. EDP reported that, after excluding the lower gains from asset sale, the recurring net profit increased 5% on an annual basis, reflecting a total increase of 14% in electricity production from new capacity. The operations in the United States and Portugal, as well as Spain, contributed significantly to this growth. EDP operates in 29 countries throughout Europe, North America, and Asia. Its gross margin, or revenue from sales of energy minus direct costs to produce or acquire it, was flat at 5,2 billion euros.
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Georgia voters remove GOP utility commissioners due to rising electricity prices
Georgia voters ousted two Republican utility commissions on Tuesday night over rising electricity rates. This could be a sign of consumer anger against data centers, and Republican President Donald Trump’s aggressive push for nuclear power. Utility regulators across the country are forced to consider the costs of billions of dollars in infrastructure projects, including new transmission lines and new generation. Some consumers are paying higher rates because demand exceeds supply. One Wall Street firm has reacted quickly to the results of the special elections, downgrading Southern Co's stock from "Buy" to "Hold". Analysts at Jefferies referred to the election result as a "resounding Republican defeat" and stated that it would increase the risk profile for Georgia Power, an unit of Southern Co. and make it more difficult to raise electricity rates. According to a Georgia Public Service Commission survey, summer electric bills for Georgia Power users of 1,000 kilowatts increased by 41% and reached nearly $190 per monthly. Alicia Johnson, a Democrat, and Peter Hubbard, a Republican incumbent commissioner each won more than 60% votes. The two Democrats will now sit on the Georgia Public Service Commission which regulates utilities and sets rates for electricity. Johnson and Hubbard both ran campaigns to promote fair electricity rates and a greater emphasis on renewable energies. Their online campaigns stated that electricity rates had increased six-fold in the last two years. Georgia's electric bills reflect the massive cost overruns of the construction of two Vogtle reactors. The reactors were built seven years late and cost $35 billion. According to Georgia regulators, this was more than twice the initial estimate of $14 billion. Patty Durand of Georgians for Affordable Energy called the election as a referendum against nuclear power. Last week, Trump announced an $80 Billion deal to purchase nuclear reactors from Westinghouse. This is the same company which went bankrupt in 2017 due to cost overruns on the Georgia nuclear project. Analysts estimated that electric customers will pay between $36 and $43 billion more over the 60 year lifecycle of two Vogtle nuclear reactors compared to a gas-fired alternative fuel source. Durand stated that Georgia electric customers receive bills that look similar to monthly car payments. (Reporting by Tim McLaughlin, Editing by Aurora Ellis).
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Dollar extends recent gains as stocks climb on tech share rebound
The stock indexes rose on Wednesday, as the dollar continued to rise and U.S. payrolls data came in stronger than expected. According to a survey of economists, the U.S. private sector payrolls increased by 42,000 in October. This was more than double what most expected. Some industries, such as professional services, have lost jobs for the third consecutive month. Private payroll data is closely scrutinized in light of the U.S. shutdown and the ongoing concerns about the weakness of the labor market. U.S. president Donald Trump has again asked Republican senators in an effort to end the longest government shut down in history to stop the filibuster. After a sharp drop on Tuesday, the semiconductor index rose 2.5%. Advanced Micro Devices shares rose 0.5% following a positive revenue forecast given by the company on Tuesday. Peter Cardillo is the chief market economist of Spartan Capital Securities, based in New York. He said that the ADP numbers suggested that if they aligned with the official figures - when finally released - that the fears over the job market might have been overstated. He said that the possibility that the U.S. government shutdown will end adds to the optimism. The Dow Jones Industrial Average grew 59.92, or 0.12% to 47,139.89. The S&P 500 climbed 28.01, or 0.41% to 6,799.59. And the Nasdaq Composite grew 149.16, or 0.64% to 23,498.37. The MSCI index of global stocks rose by 1.48 points or 0.15 percent to 998.31. The pan-European STOXX 600 rose by 0.38%. Asia stocks took a heavy hit overnight. The Nikkei 225 index in Japan fell nearly 7% at one point from its record highs on Tuesday. Shares in South Korea dropped as much as 6,2%, before recovering some of their losses to fall by 2.9%. The global stock market has been swept by a wave of enthusiasm for generative artificial Intelligence this year. It's been compared to the dotcom boom. Since last week, when the Federal Reserve lowered interest rates by 25 basis point and Fed Chair Jerome Powell stated that a December rate cut was not predetermined, the dollar has strengthened against the euro. The euro fell 0.04% to $1.1477. The dollar gained 0.38% against the Japanese yen to reach 154.26. After recovering from its earlier losses, the leading cryptocurrency Bitcoin gained 3.25% and reached $103,565.86. It fell 6.1% to $99,000 on Tuesday, the lowest level since June 22. The yields on U.S. Treasury bonds rose after economic data showed that the economy is still resilient. The yield on the benchmark 10-year U.S. notes increased 5.4 basis points from late Tuesday to 4.145%. Gold prices increased. Gold spot rose 1.26%, to $3981.49 per ounce. U.S. crude dropped 0.38% to 60.33 per barrel. Brent was down to $64.27 a barrel, a 0.26% drop on the day.
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S.African mine will close after ArcelorMittal stops purchasing iron ore
African Rainbow Minerals, a South African company, announced on Wednesday that the mine, which is jointly owned by ARM and ArcelorMittal South Africa (the ailing steelmaker), will be put on "care-and-maintenance" following the cessation of purchases from its only customer. Beeshoek Mine is temporarily closed for maintenance and care as owners assess other options in case the market conditions change. The mine's mining operations ceased at the beginning of October. About 622 permanent employees will be laid off on November 30. Beeshoek - operated by Assmang – a joint venture of ARM and the international miner Assore – stopped deliveries to ArcelorMittal at the end of July after a long-term agreement expired in June. This ended a decades-long relationship. ArcelorMittal South Africa continued to buy iron ore month after month, but stopped all purchases on July 27. ARM stated that an extensive review was conducted of the operational, financial and commercial alternatives for the mine. The mine is old, has legacy infrastructure, and its cost base is heavily dependent on ArcelorMittal’s offtake. The group stated that "Beeshoek Mine's operation is no longer feasible due to the lack of a sustainable offtake agreement." The statement said that the consultations with the unions in South Africa under the Labour Relations Act had been completed and that the Department of Mineral and Petroleum Resources was notified of this shutdown. The decision confirms an August warning, when Assmang informed unions that it was considering closing after ArcelorMittal refused to sign a three-year contract. ArcelorMittal South Africa struggles with a weak domestic demand, high electric costs, poor logistics, and competition from Chinese imports. The company has also delayed the closure of the long steel plants at Newcastle and Vereeniging while it continues to hold talks with the South African Government and labor representatives. Reporting by Sfundo Parakozov, Nelson Banya and Emelia Sithole Matarise; editing by Emelia S. Matarise.
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TSX rebounds with resource-focused shares lifting
Canada's benchmark stock index rose on Wednesday. It recovered from the previous days' sell-off, thanks to the strength of commodity-linked stocks, and investors also digested an unexpectedly positive U.S. payrolls report. At 10:07 am. The S&P/TSX Composite Index in Toronto was up 0.84% at 30,027.94. Gold sub-index was the sector's leader with a 2.6% increase, following gold prices as investors shifted away from risky investments to metals that are considered safe havens. Gold has played a major role in the TSX's movements. When gold moves higher, the market tends to move up with it, said Allan Small. Senior investment advisor with Allan Small Financial Group at iA Private Wealth. The regional materials index rose by 1.6%. The gains on TSX are also influenced by Wall Street. Wall Street's benchmark S&P500 gained 0.24% after ADP reported that private payrolls in the U.S. rebounded dramatically in October. Investors looked for clues about the Federal Reserve’s monetary policies amid a U.S. Government shutdown and a lack of important jobs data. The S&P/TSX Composite index had a fantastic 2025. It was up 21.3% largely due to lower borrowing costs and a rise in gold prices. Trade tensions between the U.S. and Canada, which affected trading activity at the start of the year, have increasingly had little effect on the market sentiment. The TSX rebounded with most sectors in the green after a 1.6% drop in the previous session, when major U.S. Bank CEOs raised concerns about stretched valuations and warned of a possible equity downturn. Small said, "It is just one of those things that you wake up to and everyone's questioning the valuation on tech stock, whether it be semiconductors or chips generally." Suncor Energy, which beat third-quarter profit expectations, saw a 5% jump after beating the index. SSR Mining shares fell 10.6%, among other moves. This was after the company missed revenue forecasts for the third quarter. First Majestic Silver fell 11% when its third-quarter earnings failed to impress investors. (Reporting and editing by Avinash Sharma and Nikhil Sharma)
Peru's new President faces protests that resulted in dozens of injuries and one death
The state ombudsman’s office reported on Thursday that at least one person died and dozens were injured during widespread protests in Peru overnight against President Jose Jeri who took power only days before. The demonstration on Wednesday night was called by Gen Z protesters and transport workers, as well as civil groups. It was part of a series against rising crime and corruption that culminated in the ouster at midnight of former president Dina Boluarte.
Around the country, thousands of protesters gathered. Hundreds clashed with police in front of Congress in Lima. The police fired tear gas, while protesters hurled rocks, fireworks and burning objects.
"Everyone must leave!" "Everyone must go!" protesters shouted when they reached Congress, and then tried to tear down the metal barriers protecting it. This led to clashes.
Fernando Losada from the Ombudsman office of the country said that a 32-year old man named Eduardo Mauricio Ruiz was killed in the protest. His death will be investigated. The prosecutor's offices in Peru said Ruiz was shot to death.
Oscar Arriola, head of Peru’s national police, told reporters later on Thursday that Luis Magallanes was physically assaulted by a PNP member and had committed the shooting. Arriola said Magallanes had been taken to hospital for treatment and was removed from his position. Jeri posted on X that she was sorry for the death and said it would be investigated "objectively". He blamed the violence on "delinquents" who had infiltrated peaceful protests to create chaos.
He wrote: "The full force will be on these people."
Jeri, who attended a meeting at Congress about protests on Thursday afternoon, told reporters that he would "ask Congress for the authority to legislate" on issues of public safety.
Jeri stated that prison reform would be a major focus, but she did not elaborate what these powers would include.
Vicente Tiburcio was appointed as the new Interior Minister shortly after the protest. He spoke to Congress and said that the government will push for a comprehensive reform of the national police.
The interior ministry didn't immediately respond to an inquiry for comment about the reform of police or Jeri’s request for increased legislative powers.
The protests on Wednesday were a good indicator of how Jeri’s presidency could end next July, due to elections scheduled. Jeri has pledged to put crime at the top of his agenda, but he has been involved in a number scandals, including allegations of corruption and an investigation that has now been shelved for sexual assault. Jeri, 38, has expressed his willingness to work with any investigation into corruption. He has denied all wrongdoing and is willing to cooperate. Boluarte was the subject of widespread protests when she took power in 2022. This led to dozens deaths and a drop in her popularity, which fluctuated between 2% to 4% during the days before her removal.
Congress, which Jeri led before becoming president, is also unpopular. It has a one-digit approval rating. (Reporting from Marco Aquino, Lima; writing by Alexander Villegas and editing by Deepa Babyington and David Gregorio).
(source: Reuters)