Latest News
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Holcim purchases majority stake in Cementos Pacasmayo, a Peruvian manufacturer of building materials
Holcim announced on Tuesday that it had paid $550 million to acquire a majority stake in Cementos Pacasmayo in Peru, in order to expand the Swiss cement manufacturer's presence in South America. Holcim will take a 50.01 % stake in Cementos Pacasmayo in the deal, which values the Peruvian firm at $1.5 billion, including debt or $1.1 billion in equity value. According to the Peruvian law on takeovers, Holcim is required to offer more shares of the 'company and will likely increase its stake in the company, Holcim said. Cementos Pacasmayo expects sales of $630 millions for 2025, with a margin of earnings before interest tax, depreciation, and amortization of 28%. Holcim has made its 15th acquisition in 2025. The company is now focusing more on South?America, Europe and Asia after spinning off the North American?business to a separate?company called Amrize. Peru is a 'attractive market' for construction companies because of the housing shortage, and a desire to invest in infrastructure. Holcim has entered the Peruvian construction market in recent years and purchased three other companies. (Reporting and editing by Dave Graham, John Revill)
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Investors turn cautious as they await US year-end data
Investors were cautious on Tuesday as they awaited key U.S. inflation and jobs data that could give fresh clues to Federal Reserve policy expectations for the New Year. As of 0450 GMT, spot gold fell 0.3%, to $4,289.17 an ounce. Bullion is up 64% this year, breaking multiple records. U.S. Gold Futures fell 0.5% to $4,315.80. "We're just up against the former high of $4,380 that was set in mid-October. The market is asking if there is enough confidence to break higher or if momentum is starting to fade. According to CME's FedWatch, traders are pricing in 76% of a U.S. 25-basis point rate cut in January. Some even expect two cuts. The data docket for this week is expected to provide new clues as to how quickly the Fed will ease policy in 2026. After a 43-day shutdown of the government, data collection was curtailed, and October's unemployment rate, among other things, is not included in the combined U.S. Employment Reports for October and November, which are due on Tuesday. Fed Governor Stephen Miran stated that current inflation is above target but does not reflect the underlying dynamics of supply and demand which are driving price increases much closer to the 2% central bank's target. The markets are also awaiting the weekly jobless 'claims, and the Fed’s preferred inflation measure, the Personal Consumption Expenditures Index (PCE), due this week. Bullion that does not yield a return is typically found in lower-rate environments. Silver spot fell 1.7%, to $62.88 per ounce after reaching a record high on Friday of $64.65. Tim Waterer, KCM Trade's chief market analyst, said that silver still has a bullish tone despite the fact that industrial demand is not showing signs of abating. This comes after a 121% rise in this year due to a tightening inventory and a firm industrial and investing demand. The spot price of platinum rose 1.7%, to $1.812.80. Palladium increased 0.6%, to $1.579.44. Reporting by Ishaan arora and Sherin Elizabeth varghese from Bengaluru, editing by Sherry Jacobi-Phillips & Harikrishnan Nair
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Stocks struggle before jobs data, central bank meetings
Asian stocks fell on Tuesday while the dollar drifted to two-month lows. Investors adopted a cautious stance ahead of the release of several U.S. economic data including the jobs report that could 'help gauge the direction of Federal Reserve policy for next year. Risk assets were under pressure due to the defensive mood, including bitcoin. Bitcoin, which?hit an all-time low of two weeks in the previous session, was down by 0.3%, at $86,017.67. Nasdaq Futures dropped 0.8%, and European Futures declined 0.5%. Hang Seng's technology index fell 2.7%. The MSCI broadest Asia-Pacific share index outside Japan fell by 1.45%, its lowest level in three weeks. Investors are watching the U.S. combined employment report for October and November due on Tuesday. They will also be looking at the inflation report, which is scheduled for Thursday. However, a few key details may not be available because the longest government shut down in history prevented data from being collected. Investors don't wish to be caught in long-term, crowded trades, especially if rates rise. Charu Chanana is chief investment strategist for Saxo. She said that tech was the first domino. The Fed cut interest rates last week as expected. They predicted that there would be a further rate cut in 2026, though the markets have already priced in two next year. This highlights the importance of the economic data for the near-term. Chanana explained that if the data was mixed or slightly softer than expected, the soft-landing story would still be intact. However, it might not be a backdrop for a large risk-on rally. The real risk is "a hawkish shock." If inflation or job growth is hotter, "yields will rise and risk assets in particular, long-term growth, will feel it first." As the term of Fed Chair Jerome Powell ends in May, speculation has been rampant about a potential frontrunner. The expectation of a more dovish Fed chairman has also increased bets on rate cuts in 2019. CENTRAL BANK BONANZA This week, attention will be focused on the policy decisions of the Bank of England and the European Central Bank. The BoE will likely cut rates while the BOJ will likely hike. There is a general consensus that the ECB's rates won't change, but there are still questions about whether a rate increase for Europe is in the works next year. The euro, in terms of currencies, was trading at $1.1751. It had reached its highest level since the beginning of October during the previous session. Sterling was slightly weaker, at $1.3368. The dollar index (which measures the U.S. currency against six other currencies) remained steady at 98.295, although it remained near its lowest level in almost two months. The Japanese yen strengthened to 155.07 against the U.S. Dollar ahead of Friday's BOJ policy announcement. Markets have already priced in a rate increase, so all that remains is for 2026. The market's reaction will be determined by the nuances in the BOJ's communications and if Governor Ueda is able to create a hawkish image without having to commit fully on the timing of a?further increase," said Gregor Hirt. The BOJ may choose to emphasize data dependency and assess the effects before signalling clearer further moves. This could be interpreted by the markets as being cautious or dovish. Oil prices dropped in commodities as investors weighed the potential impact of a peace agreement between Russia and Ukraine. Brent crude futures dropped 0.54%, to $60.23 a barrel, while U.S. West Texas Intermediate crude fell 0.6%, to $56.48 a barrel. Both contracts fell more than 4% in the last week due to expectations of an oil surplus worldwide by 2026. The gold price fell 0.6%, to $4,275.41 an ounce. This is below the highs of last week, which were around $8,275.41. (Reporting and editing by Shri Navaratnam in Singapore, Jacqueline Wong and Ankur Banerjee)
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MORNING BID EUROPE-Markets in Grinch-y mood before data deluge
Ankur Banerjee gives us a look at what the future holds for European and global markets Investors are avoiding risky bets ahead of a slew of economic data coming from around the world and the central?bank meeting in what looks to be an eventful last full week of the calendar year. The European session's focus will be on the UK wage data, which comes just days before a vote on interest rate cuts on Thursday. Bank of England Governor Andrew Bailey may change his mind and tilt the balance in favor of a reduction. The manufacturing data for Europe in December will also be on the agenda. This information will give us more insight about the economy heading into next. The market has quickly shifted its focus to the Federal Reserve's monetary policy in 2026 after it cut interest rates as expected last week. The Fed is only expecting a single rate reduction, but traders are pricing at least two rounds. This divergence is likely to be resolved by the incoming U.S. Economic data, which includes the always-important and much-anticipated jobs report. The combined report for October and November will finally be released, after a 43-day shutdown of the government. As the shutdown prevented the collection of household data, it could be difficult to interpret the data. It's not surprising that the markets were completely risk-off in?Asian time, with tech stocks suffering a major blow. Stocks in South Korea, Taiwan and other tech-heavy countries fell by more than 1%. European equity futures also pointed to an opening lower. Bitcoin, the most common risk barometer is near its two-week lows. It remains under pressure. The yen smelt a bid for a safe haven and firmed up to 154.80 against the dollar before Friday's Bank of Japan policy meeting. The markets are largely expecting a rate increase, but the focus is now on when it will happen. The following are the key developments that may influence Tuesday's markets: Economic events: UK wage data from October, December flash PMI for France, Germany and the euro zone, UK; December economic sentiment in Germany
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MBK and YoungPoong ask for court injunctions to stop Korea Zinc’s share sale plan
MBK Partners, a South Korean private equity firm, and YoungPoong Corp. (a metal smelter) have applied for an injunction to a local court in order to stop a plan by 'Korea Zinc to sell shares to fund construction of a smelter on the U.S. mainland. Korea Zinc announced on Monday that it will build a critical minerals refinery worth $7,4 billion in Tennessee. The project will be funded by Washington. Following the news of the proposed injunction, shares in Korea Zinc fell 13% by 0337 GMT. In a statement, MBK and YoungPoong, two major shareholders in Korea Zinc, said they were not against the plan to build a smelter but opposed issuing new shares of stock to designated investors as a way to raise money. MBK stated that the move was made to?tighten Korea Zinc chairman Yun B. Choi’s control over his company. The statement also said that Korea Zinc did not provide board members with 'key information' and enough time to examine the investment plan before Monday's meeting. A spokesperson for Korea Zinc did not respond immediately to a question about the planned injunction. The largest zinc smelter in the world has been involved in a a bitter ?feud The zinc empire is a source of contention between founding families. According to a filing in November and LSEG data, YoungPoong & MBK are attempting to take control of the current management, led by Choi. They have amassed a combined stake of 44%, making them the largest shareholders. Analysts at Seoul's Shinhan Securities Co. stated in a Tuesday note that Korea Zinc has been selected as a 'key partner' in Washington's efforts to create new supply chains for critical minerals, and reduce dependence on China. The note stated that the partnership with the U.S. Government also provides a strong reason for the current management of the company to retain control. They can claim the plan is in support of the U.S. South Korea alliance as well as broader economic security. Reporting by Heejin KIM, Heekyong YANG Editing by Ed Davies
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China data weakens as oil prices slip on Russia-Ukraine talks
The oil prices dropped on Tuesday as the prospects of a Russia-Ukraine deal seemed to be improving, raising expectations of an easing of sanctions. Brent crude futures slid?35 cents or 0.6% to $60.21 a barge by 0350 GMT. U.S. West Texas Intermediate crude traded at $56.52 a barge, down 30 cents or 0.5%. "Crude Oil fell as the market weighed signs of optimism about a peace agreement being reached between 'Russia and Ukraine,'" ANZ analysts stated in a recent note. This raised fears that the recent U.S. sanction?on Russian Oil Companies would eventually be lifted, adding more to an already well-supplied market. On Monday, European negotiators and the U.S. announced progress in their talks to end Russia's conflict?in Ukraine. This unprecedented move sparked hope that negotiations were moving?closer? to an end? to the conflict. A deal on territorial concessions remains elusive. In a note, IG analyst Tony Sycamore said that the soft Chinese data released on Monday exacerbated concerns about global demand not being strong enough to absorb current supply growth. Official data revealed that China's factory production growth has slowed to a 15-month minimum. Retail sales grew at the slowest rate since December 2022 during the COVID-19 Pandemic. These data have prompted concerns that China may be losing its strategy to rely on exports in order to counteract weak domestic demand. A cooling economy will further increase demand in the largest oil-consuming country, where the soaring use of electric cars is already impacting petroleum consumption. These?factors have offset any concerns over supply following the seizure of an oil tanker by the U.S. off the coast Venezuela last week. Analysts and traders said that a glut in floating storage, and an increase in Chinese purchases from Venezuela to prepare for sanctions also limit the impact on the market. Reporting by Colleen Chow and Emily Chow, both in Beijing; editing by Muralikumar Aantharaman and Jacqeline Woong.
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Gold gains as dollar falls ahead of US jobs data
Gold prices rose on Tuesday as a result of a weaker dollar. Investors awaited the release of important U.S. employment data, which could influence expectations about the Federal Reserve’s policy direction in the coming year. As of 0230 GMT spot gold was up by 0.1%, at $4,311,64 per ounce. This extends a rally that has seen the bullion break multiple records. U.S. gold futures are little changed at $4.333.20. Early Asian trade saw the U.S. Dollar hovering near a 2-month low, supporting greenback-priced gold. Tim Waterer, KCM Trade's Chief Market Analyst, said that "the dollar's performance is subdued and this helps to keep gold prices on the front foot. Markets think the Fed may be underestimating how many rate cuts it will make next year." According to CME's FedWatch, traders are pricing in 76% of the?probability? of a rate cut by 25 basis points in January. Some even expect two cuts. The data docket for this week is expected to provide new clues as to how quickly the Fed will ease policy in 2026. Waterer says that if the labour market data confirms the idea that the employment situation is still weak, then gold will benefit, as it could strengthen the case for earlier rate reductions. Fed Governor Stephen Miran stated that current inflation above target does not reflect the underlying dynamics of supply and demand which are generating price increases closer to the central banks 2% goal. A government shutdown has curtailed the collection of data, which includes October's unemployment rates. Bullion that does not yield a return is usually found in environments with lower rates. Analysts at ANZ warned of upside risks by saying that gold could reach $5,000 per ounce in the next year. Spot silver dropped 1.2% to $63.11 per ounce, hovering around Friday's record high of $64.65. Waterer, of KCM, said that the metal still has a bullish tone as industrial demand is not showing signs of abating. This comes after a 121% rise in this year due to a strong industrial and investment demand. Palladium climbed 0.6% to $1576.25 while spot platinum rose 1.9% to $1816.15.
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The number of foreigners visiting Vietnam has reached a record high, despite floods and pollution
Vietnam's culture ministry said that the country is on course to receive 21 million foreign tourists, which reflects the strong recovery from the COVID-19 epidemic. This is despite the chronic air pollution, and deadly floods. Vietnam is one of the top tourist destinations in Southeast Asia. It has a long coastline and natural landscapes, as well as a rich culture and history. In a late-night statement, the Ministry of Culture, Sports and Tourism announced that the country celebrated the arrival of "the 20 millionth" foreign tourist of the past year with a ceremony held on Phu Quoc Island. According to the Ministry, this year's number of "foreign arrivals" will surpass the 18 million record set in 2019 before the pandemic and be up 19.3% on last year. Hanoi, the capital of Vietnam, has topped this year's list?of most polluted cities in the world on multiple occasions. Meanwhile, other popular tourist destinations like Hue and Hoi An, as well as Nha Trang, have suffered from heavy flooding. Due to COVID travel restrictions, Vietnam's foreign arrivals in 2021 will be the lowest ever recorded. According to the National Statistics Office, China was the leading source of foreign tourists in Vietnam for the first eleven months of this calendar year. It accounted?for one quarter of total visitors. South Korea, Taiwan and the United States are also major sources. (Reporting and editing by David Stanway; Khanh Vu is the reporter)
Oil prices fall on Ukraine talks and weak China data
The oil prices dropped in the early trade on Tuesday. This was a continuation of previous sessions'?losses as prospects of a Russia-Ukraine deal seemed to?strengthen, raising expectations for a possible?easing sanctions.
Brent?crude futures dropped 24 cents or 0.40% to $60.32 a bar by 0101 GMT. U.S. West Texas Intermediate Crude was trading at $56.60 a bar, down 22 cents or 0.39%.
U.S. officials said that the U.S. offered NATO-style security guarantees to Ukraine during talks with its president in Berlin. This unprecedented move sparked hope in some European capitals, that the?talks are drawing closer to negotiations to end the conflict.
Tony Sycamore, IG's market analyst, said that soft?Chinese data released over night further increased concerns about global?demand not being strong enough to absorb the recent growth in supply.
Official data released on Monday showed that China's factory production growth has slowed down to its lowest level in 15 months. Retail sales grew at the slowest rate since December '2022, when COVID-19 was a pandemic.
Data raised concerns about China's strategy to rely on exports in order to offset weak domestic demand. A cooling economy will further increase demand in the world's biggest buyer of oil. The use of electric cars is already increasing the petroleum consumption.
These factors have offset any concerns about supply following the U.S. seizure of an oil tanker last week off the coasts of Venezuela.
Analysts and traders said that a glut in floating storage, and an increase in Chinese purchases from Venezuela ahead of sanctions also limit the impact on the market. (Reporting and editing by Muralikumar Aantharaman; Colleen howe)
(source: Reuters)