Latest News
-
Investors prepare for Fed, and stocks rise while the dollar falls
On Wednesday, the major stock indexes mainly edged up while the dollar fell as a divided Federal Reserve board faced crunch time. Oracle's earnings were eagerly awaited after the Wall Street closing bell. This and other results may test artificial intelligence valuations that are sky high. When the Fed announces its decision at 2 pm, it is expected that interest rates will be cut. Investors are worried about the outlook for rates next year. How many Fed members predict that there will be one, two, or no cuts in the next year? Analysts suspect that at least two out of 12 voters may be against a easing. This would put Chair Jerome Powell into a tough position. The policymakers are weighing the signs of a cooling labour market against inflation risks. Investors have recently reduced their expectations for rate cuts in the year 2026. The government shutdown will further complicate matters by delaying the important November payrolls report until December 16 while the inflation figures are due two weeks later. Eugene Epstein is the head of Trading and Structured Products at Moneycorp, New Jersey. He said that the Fed was "semi-blind" at the meeting as they didn't yet have a complete picture on the economy. According to CME's FedWatch Tool?, the markets are pricing in an approximately 90% chance of a cut of 25 basis points. Many market participants anticipate a "hawkish" cut in which they expect the Fed to indicate that it intends?to slow or stop?the rate reduction path. Oracle shares fell 0.8% on Wall Street while the S&P500 edged up. The Dow Jones Industrial Average rose 215 points or 0.45% to 47,776.05, while the S&P 500 gained 2.69 points or 0.04% to 6,843.20, and the Nasdaq Composite dropped 66.29 or 0.28% to 23,510.20. Santa Rally is the term used to describe the last two weeks of December, when the S&P 500 tends to perform better than the rest of the year. Investors are settling their accounts for the year. MSCI's global stock index rose 0.12% or 1.18 points to 1,007.62. The STOXX 600 Index rose by 0.07%. Spot silver prices rose 0.6%, to $61/oz. They had hit a high of $61.61 in the previous session. Silver prices have more than doubled in the past year due to a?dwindling of inventories and a bullish market that has attracted momentum funds. In a recent report, the Silver Institute, an industry association, said that there is a growing demand in sectors such as solar energy, electric cars and their infrastructure and data centers?and AI. Treasury yields in the U.S. fell ahead of Fed's announcement. The yield on the benchmark U.S. 10 year notes dropped 2.5 basis points from?4.186% at late Tuesday to 4.161%. In recent weeks, yields have risen around the world as central banks signalled that they are nearing the end of easing cycles. The Bank of Japan, meanwhile, is expected to raise rates next week at its policy meeting. Investors reduced their positions in anticipation for a Fed rate reduction, erasing two days of dollar gains. The dollar index, which measures greenbacks against a basket including the yen, euro and a few other currencies, dropped 0.25% at 98.97. Meanwhile, the euro rose 0.23% to $1.1652. The dollar fell 0.37% against the Japanese yen to 156.28. Caroline Valetkevitch reported from New York, and Amanda Cooper from London. Gertrude Chavez Dreyfuss and Wayne Cole contributed additional reporting in New York, Sydney, and Sydney. Alex Richardson edited the story. Alexander Smith, Mark Potter and Mark Potter).
-
Silver drifts close to record high as gold slips before Fed rate decision
As investors booked profits in anticipation of the upcoming?U.S. Silver is hovering below record levels as investors await the Federal Reserve's rate decision and Jerome Powell’s remarks. At 11:40 am, spot gold was down by 0.2% to $4,201.45 an ounce. ET (16:40 GMT). U.S. gold for delivery in February fell by 0.1%, to $4,230.50 an ounce. Spot silver increased 0.3% to 60.82/oz after reaching an all-time high earlier in the day of $61.61. "All you want to note right now is some light profit taking ahead of the Fed Meeting- a highly anticipated event this afternoon," David?Meger said, director of metals trade at High Ridge Futures. The Federal Open Market Committee will announce their rate decision at 2 p.m. ET (1900 GMT), Powell is scheduled to speak at 2:45 p.m. ET (1930 GMT). According to CME's FedWatch Tool traders are pricing in an 89.6% probability of a 25-basis-point rate cut this week, and they expect more easing in the year 2026. Meger said: "We may be on a course of rate cuts and pause... but we still think we're in an uptrend sideways to higher, with a slight pause." The meeting will be one of the most controversial in recent years as policymakers balance the need to lower?borrowing rates' to support the labor markets against the danger of reigniting the inflation. The lack of new economic data after the 43-day shutdown and the uncertainty about who will be the Fed's leader next year adds to the problem. White House economic adviser Kevin Hassett is a leading candidate for the position. Hassett has been a supporter of rate reductions. Silver has risen by 110.5% this year so far, mainly due to the rising industrial demand and falling inventories. It was also designated as a "critical mineral" by the U.S. Meger stated that "we believe the gold/silver ratio is returning to some historical norm now." Now, it takes 69 ounces to purchase an ounce gold The number of ounces has dropped from 82 in October. Palladium dropped by 3.8%, to $1449.25, and platinum fell 3.5%, to $1631.77. (Reporting by Sarah Qureshi and Anushree Mukherjee in Bengaluru; Editing by Shailesh Kuber)
-
Denmark compensates Greenlandic women who have undergone involuntary contraception
The Danish government announced on Wednesday that it had reached a deal in parliament for compensation to be paid to Greenlandic women who suffered from a decades-long, involuntary campaign of birth control. This is just one of many cases that have emerged in recent years regarding allegations of Danish authorities' misconduct against Greenland residents, now a Danish semi-autonomous territory. In 2022, records revealed that thousands of women as young as 13 years old were fitted with intrauterine device without their consent or knowledge between 1966 and 1991 when Greenland gained control over its healthcare system. Aaja Chemnitz said, "Now women get the compensation we've been fighting for since many years," in an Instagram post. In a press release, the Health Ministry said that under the agreement, eligible women would receive 300.000 Danish crowns (46,750 dollars) through a reconciliation account. Women who are eligible must have attended school or lived in Greenland during that period. They will also have to provide proof of their claims. "We cannot change the past. We have been 'blind to injustices committed against them for too long. Mette Frederiksen, Prime Minister of Denmark, said in an official statement that we could 'take responsibility. Frederiksen apologized in person, to some women who had been victims. The move was part of Denmark's increased?efforts? to repair its ties with Greenland after U.S. president Donald Trump announced his intention to seize control of the vast and resource-rich Arctic Island for security purposes. The ministry stated that applications will open in April of 2026. Approximately 4,500 women are eligible to apply. First payments should be expected in the fall of 2026.
-
Silver drifts close to record high as gold slips before Fed rate decision
Gold prices declined on Wednesday, as investors booked profits in anticipation of the U.S. Silver hovered just below records highs as investors booked profits ahead of the?Federal Reserve interest rate decision today and Chairman Jerome Powell's remarks. At 0948 am, spot gold was down by 0.3% to $4,198.28 an ounce. ET (14:48 GMT). U.S. gold for delivery in February fell 0.2% to $4,227.40 an ounce. Silver spot fell by 0.2%, to $60.56/oz. After hitting a session high of $61.61 an ounce earlier. "All you want to note right now is some light profit taking ahead of the Fed Meeting- a highly anticipated event this afternoon," David?Meger said, director of metals trade at High Ridge Futures. The Federal Open Market Committee will announce their rate decision at 2 p.m. ET (1900 GMT), Powell is scheduled to speak at 2:45 p.m. ET (1930 GMT). According to CME's FedWatch Tool traders are pricing in an 89.6% probability of a 25-basis-point rate cut this week, and they expect more easing in the year 2026. Meger said: "We may be on a course of rate cuts and pause... but we still think we're in an uptrend sideways to higher, with a slight pause." The meeting will be one of the most controversial in recent years as policymakers balance the need to lower?borrowing rates' to support the labor markets against the danger of reigniting the inflation. The lack of new economic data after the 43-day shutdown and the uncertainty about who will be the Fed's leader next year adds to the problem. White House economic adviser Kevin Hassett is considered the frontrunner. Hassett has been a supporter of rate reductions. Silver has risen 110% this year so far, mainly due to the rising industrial demand and falling inventories. It was also designated as a "critical mineral" by the U.S. Meger stated that "we believe the gold/silver ratio is returning to a historical norm, at this time." Now, it takes 69 ounces to purchase an ounce gold The number of ounces has dropped from 82 in October. Palladium dropped 2.7%, to $1466.21, while platinum fell 2.8%, to $1642.30. (Reporting by Sarah Qureshi and Anushree Mukherjee in Bengaluru; Editing by Shailesh Kuber)
-
USA Rare Earth accelerates Texas project with a 2028 start date
USA Rare Earth announced on Wednesday that it would bring the?commercial production? at its rare-earths project?in Texas forward to late 2028 from 2030. It cited faster-than expected progress at its processing facility and increasing U.S. demands for critical minerals. Round Top in Texas is the largest known U.S. source for heavy rare earth elements, gallium, and beryllium. The Round Top deposit is owned by USA Rare Earth and?is being developed. The revised timeline is coming as the?U.S. Under the Trump Administration, companies are increasing their efforts to reduce reliance on China as a source of rare metals. The company has developed a comprehensive mine to magnet supply chain that spans Texas, Colorado, and Oklahoma. It is positioning itself as one of the few U.S. manufacturers of heavy rare Earths, such as terbium and dysprosium. These elements are essential for high-performance permanent?magnets, which power electric vehicles, defense systems and industrial machines. This decision was made after a successful pilot of solvent extraction at the processing lab in Wheat Ridge, Colorado. The site will be home to a hydrometallurgical plant that is expected to begin operations in early 2026. (Reporting by Dharna Bafna in Bengaluru; Editing by Tasim Zahid)
-
Silver extends its rally above $60; gold dips ahead Fed rate decision
Investors awaited hints on the future policy of?the U.S. Federal Reserve, and a possible interest rate cut. Meanwhile, gold prices were lowered on Wednesday. Silver continued its rally to new heights. At 1243 GMT, spot gold had fallen 0.3% to $4197.91 an ounce. U.S. Gold Futures for February Delivery fell 0.2% to $4,226.40 an ounce. Spot silver, meanwhile, rose 0.6%, to $61/oz, after reaching an all-time record of $61.61 in the previous session. This was due to rising industrial demand, falling inventories, as well as its designation by the United States as a "critical mineral". The white metal is up 112% this year. Silver broke through the $60 mark per ounce, luring in more trend-followers and short-term traders. Carsten Menke, an analyst at Julius Baer, said that this also reflects a narrative of physical tightness in the silver market. Fed Chair Jerome Powell will speak at 1930 GMT. The Federal Open Market Committee is expected to announce their rate decision at 1900 GMT. The markets are assigning an 88% chance of a 25 basis-point reduction. Nitesh Sha, commodities strategist at WisdomTree said that gold was currently trading in a range until the FOMC announced its decision. "What will move gold? Not necessarily the cut itself, but rather the guidance for future," he added. Benchmark yields on 10-year U.S. Treasury bonds have reached their highest level in more than three months. "In the last few weeks, gold demand from investors as measured by holdings in physical-backed products has been less than silver." Menke stated that this is the primary factor holding gold back. Carolane de Palmas, an analyst at ActivTrades, said that "gold's performance is one of the main drivers?of the silver price -- any correction in gold can lead to increased volatility in silver." Kevin Hassett, White House economist and the leading candidate to succeed Powell as Fed chair, stated on Tuesday that there is "plenty" of room to reduce interest rates, although rising inflation may change this calculation. Gold and other non-yielding assets tend to be favored by lower rates. RBC Capital Markets increased its long-term forecasts for gold prices to an average $4,600 per one ounce by 2026, and $5,100 in 2027. They cited geopolitical risk, a softer monetary policies, and persistent deficits. Palladium dropped 1.3%, to $1,487.11, while platinum fell 1.7%, to $1661.70. Reporting by Pablo Sinha from Bengaluru. Alexandra Hudson (Editor), Mark Potter, Varun H. K.
-
Indigenous Guards in the Amazon region unite to protect their territories
Around 200 Indigenous members from Ecuador, Colombia and Peru met in the?Amazonian village of Sinangoe located along the border of Colombia to strategize together how to defend their ancestral land. To mark the occasion, they cleansed their energy with tobacco and nettle leaf and drank sap of the ancestral yoco tree. Indigenous communities of the Amazon rainforest train men and women for years to recognize threats to their mineral rich and verdant lands, and to prevent outsiders from entering their communities. Members of the Indigenous Guard say that in recent years, threats to their ancestral Indigenous territories have increased the need for self-defense groups known as the Indigenous?Guard. They are facing illegal mining, logging, drug trafficking and armed groups as well as forced gang recruitment, extortion and forced recruitment. Since 2017, the Indigenous Guard of the A'i Cofan Community in?Sinangoe has been battling large-scale mining to protect the Aguarico River – the main source of food for families who live on the riverbanks. Holger Quenama is the coordinator of A'i Cofan's Indigenous Guard. The group's pacifist focus is on monitoring, patrolling and avoiding conflict. They may also request assistance from armed forces in situations that they are unable to handle themselves. Quenama stated that their work had paid off, but they still need to put in daily effort. Quenama stated that "the Sinangoe guard is always carrying?our staff which is our strength." "We work with the whole community, but there are Indigenous groups who are more vigilant in patrolling all of the territory," Quenama said. Kelly Valera Silva said that the Regional Organizaion of Indigenous guards of Shipibo Konibo in Peru has had success in combating illegal fishing and territorial invasions. She said that although indigenous peoples were not opposed to?concession deals, they must acknowledge their territory. About 300 indigenous guards are spread out across 24 Amazonian Shipibo Konibo communities in Peru. Reporting by Karen Toro, Sinangoe. Writing by Alexandra Valencia. Editing by Lincoln Feast.
-
GE Vernova gains on bullish revenue forecasts for 2026 and buyback boost
Shares of GE Vernova jumped 10% in premarket trade on?Wednesday, after the power equipment manufacturer forecast higher revenues for?2026. It also increased its share purchase plans by $4 billion. The company's grid business and its gas turbine business are experiencing strong growth, thanks to the increasing?electricity?use of artificial intelligence and data-heavy industries. This is positioning the U.S. manufacturer for long-term expansion. Vernova's stock has increased by more than 370% in the three years since it was spun off from General Electric. Stocks rose by 10% before the bell - to $688. If gains are maintained, they will open at a record high. The company increased its share repurchase authority to $10 billion, up from $6 billion. It also doubled the quarterly dividend per share to 50 cents. GE Vernova anticipates that the annualized production of?gas-turbines will reach 20 gigawatts by mid-2026 and 24?GW around 2028. Jed Dorsheimer, an analyst at William Blair, said that the increase in deliveries was expected as key competitors Siemens Energy and Mitsubishi Heavy Industries raised their own targets. He said that the company's Investor Day "fired at all cylinders." He noted that the company's available slots for production of turbines were sold out through 2028. In 2026, the company anticipates a 16% to 18% growth in organic revenue in its power segment and a 20% increase in electrification. The company expects a free cash flow of $4.5 to $5.0 billion in 2019, compared to the $3.5 to $400 billion they anticipate for 2025. GE 'Vernova' expects to sign 80 GW combined-cycle gas-turbine?contracts before the end of the year, it stated in a separate filing. The company also works with the U.S. The company is also working with the?U.S. government to increase yttrium stocks as China's import controls tighten supply of rare earths used in energy applications, aerospace, and semiconductor applications. CEO Scott Strazik stated.
China robust commodity imports puzzle weak economy story: Russell
In plain contrast to the continuous weakness in China's essential manufacturing index, the imports of essential products by the world's. secondbiggest economy are roaring ahead.
China's imports of petroleum, liquefied natural gas (LNG),. coal and iron ore were all stronger in the very first two months of. 2024 than for the exact same period in 2015, according to information from. commodity experts Kpler and LSEG Oil Research.
Yet, though robust commodity imports appear at first glance. to be out of alignment with soft property building and construction and. producing information, they can be reconciled when market characteristics. such as stockpiling and cost relocations are taken into consideration.
Crude oil imports were 11.73 million barrels per day (bpd). in February, up from 11.31 million bpd in January, according to. LSEG data.
Over the very first 2 months of the year, LSEG estimates. China's oil arrivals at 11.51 million bpd, which is 1.07 million. bpd greater than the 10.44 million bpd main customs figure. from January and February in 2015.
China combines import information for January and February into a. single release to reduce the effect of the Lunar New Year. holidays, and the official customs numbers for the first two. months of 2024 are anticipated on March 7.
China's imports of LNG were 5.7 million metric lots in. February, down from January's 7.82 million, according to Kpler.
However, the combined 13.52 million loads for the first two. months of this year was 22.5% above the 11.04 million heaps for. the very same duration in 2015.
Imports of iron ore were approximated by Kpler at 101.5 million. heaps in February, below 113.0 million in January, which was. the second-highest in Kpler data going back to 2017.
The combined 215.5 million loads for the January-February. period was 4.6% higher than the 206.1 million heaps for the same. months in 2023.
Imports of all grades of coal were likewise robust in the. 2 months of this year, with Kpler estimating seaborne arrivals. of 28.4 million heaps in February and 34.0 million in January,. for an overall of 62.4 million.
This was 28.1% greater than the 48.7 million lots of seaborne. arrivals in the first two months of 2023.
The strength in imports of major commodities appears to be. at chances with the continuous run of soft outcomes in China's. official Buying Managers' Index (PMI).
The PMI shrank for a fifth month in February, coming in at. 49.1 points, down from 49.2 in January, and remaining below the. 50-level that separates growth from contraction.
While a few of the weak point may have been triggered by factories. closing for the week-long Lunar New Year holidays, the PMI information. shows that China's economy is at finest spluttering along.
This makes it most likely that further stimulus measures are. likely to be adopted, with the focus on this week's meeting of. parliament.
Whether any brand-new efforts will be enough to stir China's. economy stays to be seen, however the current track record of. modest steps suggest something bolder than what is most likely to. eventuate will be needed.
STRONG PRODUCTS, WEAK ECONOMY?
The question is whether China's strong product imports can. be reconciled with the obvious weak point seen in key sectors of. the economy, such as residential real estate building and construction and. manufacturing.
Each commodity has its own market dynamics and the robust. unrefined imports can be seen through the prism of lower oil. prices when cargoes would have been organized, and the early. release of import quotas for many refiners.
Global benchmark Brent unrefined futures remained in a. drop from October to mid-December, reaching a low of $72.29. a barrel on Dec. 13.
The lower costs, combined with the 60% boost in the very first. tranche of import quotas, would have encouraged refiners to buy. more than they planned to process, thus improving stocks. as a hedge against possible higher prices later this year.
Due to the fact that of high electricity, coal imports have been strong. demand and lower than usual hydropower output.
A more element has been some constraints on domestic mine. output because of security checks, which has actually likewise kept domestic. prices elevated, indicating imports can complete on a cost basis.
China's leading coal supplier is Indonesia, and the price of. Indonesian coal with an energy content of 4,200 kilocalories per. kg, as evaluated by product rate. reporting agency Argus, has actually been fairly steady in current. weeks, hovering near two-year lows and ending at $58.01 a heap in. the week to March 1.
Iron ore is maybe the commodity most challenging to fathom,. as strong imports do not necessarily align with weakness in the. residential or commercial property sector.
However, steel mills and traders have been building up. inventories in current weeks, possibly in anticipation of more. stimulus procedures, with experts SteelHome reporting port. stockpiles increasing to 134.9 million loads in the week to March 1.,. up 28.6% from the seven-year low of 104.9 million in the week to. Oct. 23.
Overall, the strength in China's commodity imports can be. lined up with weak point in other sectors of the economy, and program. that the economic story is more nuanced than the basic. narrative of sluggish development.
The viewpoints revealed here are those of the author, a columnist. .
(source: Reuters)