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US stocks rise, gold nears all-time highs as Russia-Ukraine negotiations are in sight
Wall Street stocks closed higher on Monday and gold held at around $3,000 an ounce, following mixed economic data. This was ahead of the talks between U.S. president Donald Trump and Russian president Vladimir Putin to end the Ukraine conflict. The weekend's U.S. strike against Yemen's Houthi group threatened to escalate tensions within the oil-rich Middle East. This drove crude prices higher due to supply concerns. The Nasdaq was the only index to show a decline, as shares of Tesla, Nvidia, and Amazon.com were weak. Trump said that he will speak with Putin Tuesday about a possible Russia-Ukraine truce-fire proposal which could ease some geopolitical uncertainties. Oliver Pursche is senior vice president of Wealthspire Advisors in New York. He said: "There's been a big sell-off so a sort of rebound should be expected. I think this is part of what's happening." "And the prospect that Russia and Ukraine could develop a ceasefire which could lead to a more lasting peace is positive for markets not only in the U.S., but globally." The lower-than-expected U.S. Retail Sales data can be attributed to lower gasoline prices. A solid rebound in receipts online and a positive surprise in the core measure show underlying consumer strength. Pursche said that "we had relatively lower than expected (retail) sales for February. This would tend to indicate a less inflationary pressures which could potentially offset the impact of tariffs." The U.S. Federal Reserve, along with other central banks, are expected to meet for policy meetings in the coming week. However they are likely to remain on the sidelines while the full ramifications and impact of Trump's tariff war are assessed. The Dow Jones Industrial Average grew 353.44 points or 0.85% to 41,841.63, while the S&P 500 climbed 36.18 points or 0.64% to 5,675.12, and the Nasdaq Composite jumped 54.58 points or 0.31% to 17,808.66. The rally in European shares continued as Germany's plans to reform its debt helped boost confidence that Europe’s largest economy would increase spending and jump-start growth. Investors are also watching the results of the cease-fire talks between Russia and Ukraine, as this could lead to lower energy prices in Europe. European stocks have outperformed global peers so far in this year. The broad FTSEurofirst 300 Index in Europe rose by 18.02 points or 0.83%. The MSCI index of global stocks rose by 7.35 points or 0.88% to 843.49. The pan-European STOXX 600 rose by 0.79%. Emerging market stocks gained 12.69 points or 1.13% to 1,132.30. MSCI's broadest Asia-Pacific share index outside Japan closed at 588.94 with a gain of 1.25%. Japan's Nikkei gained 343.42 points or 0.93% to 37,396.50. The U.S. Treasury curve flattened due to mixed retail sales figures, but shorter-dated yields increased on fears that the U.S. Economy will slow down if the Fed keeps its restrictive policy rate unchanged. The yield on the benchmark 10-year U.S. notes dropped 1 basis point to 4.299% from 4.308% at Friday's close. The 30-year bond rate fell 2.3 basis point to 4.5919%, from 4.615% on Friday. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Federal Reserve), rose by 3.3 basis points, to 4,048% from 4,015%, late Friday. Investors were cautious about the dollar as a result of the uncertainties surrounding Trump's trade policy. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.33%, reaching 103.39. Meanwhile, the euro rose by 0.38%, hitting $1.092. The dollar gained 0.29% against the Japanese yen to 149.05. The Mexican peso (MXN=>) fell 0.08% against the dollar to 19.953. The Canadian dollar rose 0.6% against the greenback, to C$1.43 a dollar. The supply side was supported by the U.S.'s vow to continue attacking the Iran-aligned Houthis of Yemen. Meanwhile, encouraging economic data out of China supported the demand. Brent crude settled at $71.07 a barrel, an increase of 0.69%. U.S. crude was up 0.60% at $67.58 a barrel. Investors focused on the Federal Reserve's rate announcement this week, which is expected to be announced next week. Spot gold increased by 0.56%, to $3,000.76 per ounce. U.S. Gold Futures rose by 0.23% to $3,000 an ounce.
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US Releases $57 Million in Financing to Reopen Michigan Reactor
The U.S. Department of Energy announced on Monday that it had disbursed $57 Million of a loan guarantee of up to $1.52 Billion for Holtec’s Palisades Nuclear Plant in Michigan. Holtec hopes this will be the United States' first commercial reactor to resume operations after ceasing to operate. The conditional guarantee of loan was part of a campaign by former President Joe Biden's administration to support nuclear power, which produces virtually emissions-free electricity, to curb climate changes and to help meet the rising demand for electricity from artificial intelligence (AI), electric vehicles, and digital currencies. After closing the loan financing in December, the Loan Programs Office of the Department made the first disbursement, which was about $38 millions, in January. In a press release, Energy Secretary Chris Wright stated that "Today's actions are yet another step towards advancing President Donald Trump's commitment of increasing domestic energy production and bolstering our security while lowering costs for the American public." Entergy, a Michigan-based power company, closed its 80 megawatt Palisades nuclear reactor in 2022 after it had produced electricity for over 50 years. The plant shut down two weeks earlier than planned due to a problem with a control bar, despite the $6 billion federal program designed to save nuclear power plants from increasing costs. Holtec hopes to reopen Palisades in the fourth quarter 2025. However, it still requires permits from the Nuclear Regulatory Commission. Holtec is currently repairing the steam generators in Palisades because the standard procedure to maintain the units wasn't followed when the plant shut down. Pat O'Brien said that Holtec was "well on its way to help unleash American energy." (Reporting and Editing by Margueritachoy)
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US Releases $57 Million in Financing to Reopen Michigan Reactor
The U.S. Department of Energy announced on Monday that it had disbursed 57 million dollars of a loan guarantee of up to $1.52billion for Holtec’s Palisades Nuclear Plant in Michigan. Holtec hopes this will be the U.S.'s first commercial reactor to resume operations after ceasing to operate. The loan guarantee was part a larger effort by former President Joe Biden's administration to support nuclear power, which produces virtually emissions-free electricity, and to curb climate changes and to satisfy the rising demand for electricity from artificial intelligence (AI), electric vehicles, and digital currencies. The Loan Programs Office of the Department closed the loan guarantee conditional for Palisades, the second disbursement that was made last year. In a press release, Energy Secretary Chris Wright stated that "Today's actions are yet another step towards advancing President Donald Trump's commitment of increasing domestic energy production and bolstering our security while lowering costs for the American public." Entergy, a Michigan-based power company, closed its 80-megawatt Palisades nuclear reactor in 2022 after it had produced electricity for over 50 years. The plant shut down two weeks earlier than planned due to a problem with a control bar, despite the $6 billion federal program designed to save nuclear power plants from increasing costs. Holtec is still waiting for the Nuclear Regulatory Commission to approve permits before they can reopen their plant. Holtec is fixing steam generators in Palisades because the standard procedure to maintain the units wasn't followed when the plant shut down. (Reporting and Editing by Marguerita Chy)
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Stocks rebound and retail sales increase, resulting in higher yields
The yields on shorter-dated U.S. Treasury bonds rose on Monday, as a segment of the closely watched retail sales report for February beat expectations. This week's Federal Reserve is expected to hold interest rates. The stock market's rally has also led to a reduction in demand for U.S. Government debt as a safe haven. The yields reached a new session high following the Control Group's retail sales figures for February, which rose by 1%. The trading was choppy as retail sales only posted a 0.2% increase, which was below the economists' expectations. You can either make positive or negative trends from it. The swings in sales were largely attributable to non-store retailers. Last month, they were weaker than usual. This month, they were strong. Guy LeBas is chief fixed income strategist for Janney Montgomery Scott. The data also showed that the factory activity in New York State fell this month to its lowest level in almost two years. The yield on U.S. benchmark 10-year notes rose 0.2 basis points in the last day to 4.31%. The yield on the 2-year note, which is highly sensitive when it comes to interest rates, increased by 4 basis points, reaching 4,055%. It reached its highest level since February 28, at 4.065%. The yield curve between the two-year notes and the 10-year notes has flattened out by about four basis points, or 25 basis points. This flattening reflects some concerns that Fed could be too slow in cutting rates as the economy slows. Investors are still worried that the new trade tariffs could hurt the economy and also drive up prices. U.S. president Donald Trump has said that he does not intend to create exemptions for steel and aluminum tariffs. He also said that reciprocal and sectoral duties will be implemented on April 2. In an interview with The Sunday Times, U.S. Treasury secretary Scott Bessent downplayed recent stock market weakness, saying that corrections are healthy, and the markets will "do great" if administration implements good tax policies, deregulation, and energy security. This has dashed hopes that the government would change its policies in response to market movements. The Fed will likely hold its interest rates at the same level when it finishes its two-day session next Wednesday. Chair Jerome Powell may repeat his recent remarks that the U.S. Central Bank is not in a hurry to cut rates again. Le Bas stated that "Powell sealed the deal in his Friday speech, just before the blackout, with the message - it's not the right time to think about saving the economy by cutting rates." Le Bas said that there was no reason to think this would change in a short time. Fed funds futures traders believe that the U.S. Central bank is most likely to continue rate reductions in June. This week, Fed policymakers are expected to update their economic and interest rate projections. The traders are also keeping an eye on discussions about a possible peace agreement between Russia and Ukraine. Trump announced that he will speak with Russian President Vladimir Putin Tuesday to discuss the end of the war in Ukraine after positive discussions between U.S. officials and Russian officials held in Moscow. The Treasury will offer $13 billion of 20-year Treasury Inflation Protected Securities on Tuesday and $18 billion of 10-year Treasury Inflation Protected Securities on Thursday. (Reporting by Karen Brettell, Editing by Toby Chopra, Nick Zieminski).
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US stocks rise, European shares soar with Russia-Ukraine discussions in mind
Wall Street stocks rose on Monday, following their European counterparts' gains after mixed economic figures and ahead of the talks between U.S. president Donald Trump and Russian president Vladimir Putin to end the Ukraine War. The weekend's U.S. strike against Yemen's Houthi group threatened to escalate tensions within the oil-rich Middle East. This drove crude prices higher due to supply concerns. The three major U.S. indexes are in positive territory. However, the Nasdaq is still struggling to gain ground due to the weakness of the "magnificent seven" grouping of AI-related stocks. Trump said that he will speak with Putin Tuesday about a possible Russia-Ukraine truce-fire proposal which could ease some geopolitical uncertainties. Oliver Pursche is senior vice president of Wealthspire Advisors in New York. He said: "There's been a big selloff so I expect some sort of rebound. "And the prospect that Russia and Ukraine could develop a ceasefire which could lead to a more lasting peace is positive for markets not only in the US, but globally." The lower-than-expected U.S. Retail Sales data can be attributed to cheaper gasoline. A solid rebound in Online Receipts, and a positive surprise in the core measure show underlying consumer strength. Pursche said that "we had (retail sales for February) relatively lower than expected, which would tend indicate less inflationary forces that could potentially offset the impact of tariffs." The U.S. Federal Reserve, along with other central banks, are expected to meet for policy meetings in the coming week. However they are likely to remain on the sidelines while the full ramifications and impact of Trump's tariff war are assessed. The Dow Jones Industrial Average rose by 475.61, or 1.15 percent, to 41.964.18, while the S&P 500 gained 57.39, or 1.00 percent, to 5,696.10, and the Nasdaq Composite climbed by 147.94, or 0.82 percent, to 17,900.33. The rally in European shares continued as Germany's plans to reform its debt helped boost confidence that Europe’s largest economy would increase spending and jump-start growth. Investors are also focused on the outcome Ukraine-Russia ceasefire talks which could translate into lower energy prices for Europe. European stocks have outperformed global peers so far in this year. The pan-European STOXX 600 Index rose by 0.79% while Europe's FTSEurofirst 300 index increased by 18.02 points or 0.83%. The MSCI index of global stocks rose by 9.40 points or 1.12% to 845.54. Emerging market stocks gained 12.97 points or 1.16% to 1,132.58. MSCI's broadest Asia-Pacific share index outside Japan rose by 1.26% to 589.02 while Japan's Nikkei gained 343.42 points or 0.93% to 37,396.58. The U.S. Treasury curve flattened due to mixed retail sales figures, but shorter-dated yields increased on fears that the U.S. Economy will slow down if the Fed keeps its restrictive policy rate unchanged. The yield on the benchmark 10-year U.S. notes increased 0.6 basis points from late Friday to 4,314%. The 30-year bond rate fell by 1 basis point to 4.6045%, from 4.615% on Friday. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve (Federal Reserve), rose by 4.4 basis points, to 4,059% from 4.015%, late Friday. The dollar was near its lowest level in five months as uncertainty arising from Trump’s trade policies caused the greenback to weaken, while other currencies, such as the euro, were boosted by domestic factors. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.35%, falling to 103.37. At $1.0923, the euro rose 0.4%. The dollar gained 0.31% against the Japanese yen to 149.06. The Mexican peso (MXN=>) strengthened by 0.04% against the dollar to 19.935. The Canadian dollar rose 0.6% against the greenback, to C$1.43 a dollar. The supply side was supported by the U.S.'s vow to continue attacking the Iran-aligned Houthis of Yemen. Meanwhile, encouraging economic data out of China supported the demand. Brent crude settled at $71.07 a barrel, an increase of 0.69%. U.S. crude was up 0.60% at $67.58 a barrel. Investors focused on the Federal Reserve's rate announcement this week, which is expected to be announced next week. Spot gold increased by 0.49%, to $2.998.75 per ounce. U.S. Gold Futures rose by 0.23% to $3.001.50 per ounce.
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After EU sanctions, M23 rebels withdraw from peace talks with Congo
The Rwanda-backed M23 Rebels pulled out of the peace talks on Monday with the Democratic Republic of Congo government, less than 24 hours prior to the meeting of the warring parties of the worst conflict of the eastern Congo in decades in Angola. M23, a rebel group that is part of the alliance, announced it would withdraw from the first direct talks between the two parties due to sanctions the European Union had imposed against M23 earlier in the day. In a press release, the Congo River Alliance stated that the EU was attempting to "obstruct the much anticipated talks". M23 demanded direct talks with the Kinshasa Government for years, but Congo President Felix Tshisekedi refused, saying that M23 was a Rwandan front. Reverse his position On Sunday, he agreed to send a delegation to Luanda as a response to his Angolan ally's prodding and a series battlefield setbacks. Tina Salama said that after the M23 withdrew, the government delegation was going to Luanda. She said, "We confirm that we will be participating at the invitation of mediators." Since January, the conflict has spiralled out of control. It is caused by the aftermath of Rwanda's genocide in 1994 and competition over mineral resources. M23 fighters have taken control of eastern Congo's largest cities. Thousands of people have been killed, and hundreds of thousands have been forced to flee their homes. The United Nations, as well as other international powers, accuse Rwandan of sending troops to fight alongside the ethnic Tutsi led M23. Rwanda claims its forces are defending themselves against the Congolese army and other militias hostile towards Kigali. Sanctions The European Union's sanctions against the M23 and Rwanda were among the most extensive since the rebels began their offensive earlier this year. Zobel Behalal is a senior expert with the Global Initiative against Transnational Organized Crime. He said that they had been notable for going after Rwanda’s mines board as well as a gold refinery. Behalal said that "the EU sanctions... are a acknowledgement that Rwanda's involvement is primarily motivated by the profits it makes from its natural resources." The Rwandan government spokesperson, mines board, and gold refinery have not responded to requests for comment. The M23's Congo River Alliance stated that international actors have taken an "incomprehensible, ambiguous position." It said that "Successive Sanctions imposed on members of our organization, including those implemented on the eve before the Luanda talks, severely undermine the direct dialogue, and make any possible progress impossible." Rwanda attacked Belgium earlier in the day for calling for tough EU action against Kigali. The Belgian diplomatic corps was given 48 hours notice to leave. The Foreign Ministry accused Belgium, a former colonial power of Rwanda and Congo, "of using lies and manipulation in order to achieve an unjustified hostility towards Rwanda." Maxime Prevot, Belgium's Minister of Foreign Affairs, said that Brussels would respond by declaring Rwandan diplomatic personnel persona non-grata. He called Kigali’s action "disproportionate". (Reporting from Congo newsroom, Additional reporting by Anait Miridzhanian, Writing by Robbie Corey Boulet and Aaron Ross and Editing by Andrew Cawthorne William Maclean Sharon Singleton
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EDF receives a preferential loan from France for six nuclear reactors
The office of President Emmanuel Macron announced on Monday that France had agreed to provide state-owned EDF a subsidised loan covering at least 50% of the construction costs for six nuclear reactors. This is a significant step in France's plan to replace its ageing nuclear fleet. The statement stated that the finalisation of the negotiations between EDF, the state and financing is expected in the "coming weeks" before they are sent to the European Commission to be approved. A financing agreement would be a significant step forward for one of the biggest public projects undertaken in recent years. Macron announced early in 2022 plans for six new nuclear reactors, with a combined production capacity of around 10 gigawatts. These would partly replace older plants and secure future energy supply. Macron has not said who will pay for this project. It was estimated at the time to cost 52 billion euros. According to recent media reports, costs could be even higher. They may reach 67 billion euro. EDF refused to comment on the results of the meeting but stated that the costs would be refined over the next few months and estimates will be submitted to the government before the end of this year. Elysee stated that the company will make a final decision on investment by mid-2026 and commissioning is anticipated by 2038. The Elysee did not give any details about the size of this loan. Plans for a subsidised state loan were previously reported by. They also included a price cap on contracts for differences (CFDs) for new reactors. This would be set to a maximum value of 100 euros for each megawatt-hour (MWh) at 2024. The CFD cap is significantly higher than the current market contract price for 2026, which is 61.6 euros per megawatt hour. CFDs are used to specify a fixed power contract price over a specified period, protecting the buyer and seller from market volatility. The agreement is similar to the one recently agreed for a nuclear reactor in Czech Republic.
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Cobalt produced in Indonesia by China's Lygend skirts Trump tariffs
Three sources with direct knowledge said that U.S. companies are buying cobalt produced in Indonesia by China’s Lygend Resources, which does not face the tariffs imposed by the Trump Administration on direct imports from China. Since taking office, Donald Trump has increased import duties on Chinese products, and he also imposed levies against Canada, a key trading partner for the U.S., which is a major source of cobalt used in aerospace. Industry sources claim that Lygend's production of cobalt in Indonesia predates the new tariffs. Cobalt produced in Indonesia was first exported to the U.S. by traders who had U.S. clients last year. Sources said that the cobalt traders are taking advantage of Indonesia's duty-free status in order to sell the metal at a lower price to U.S. clients who face tariffs on Chinese or Canadian supplies. A cobalt industry insider said that "U.S. customers can get cheaper cobalt by using Lygend, as the metal is from Indonesia rather than China." "Now that there are tariffs on Canadian exports, more U.S. consumers will look towards Indonesia." Lygend has not responded to any requests for comment. Cobalt is produced in Indonesia by Chinese companies as a nickel-byproduct. Data from Trade Data Monitor (TDM), an information provider, showed that although still small, the cobalt sales in January had increased by more than two-thirds from November's first deliveries. They were up to 121 metric tons from 58, and a total of 290 metric tons valued at $9.6 millions. Cobalt exports to the U.S. from China, which is the top producer in the world, dropped after U.S. president Trump, in his first term, imposed a 10% tax on Chinese imports and increased it to 25% in 2019 The latest tariff hike of 10% would require U.S. importers to pay 35% on cobalt from China, which is used for electric vehicle batteries as well as defense equipment. Darton Commodities estimates that Indonesia's cobalt mined production totaled 30,920 tons, or 11%, of global supplies, last year. This compares to 18,900 tons, or 8%, in 2023. TDM reports that Canadian cobalt exports accounted for 18% of all metals shipped to the U.S. last year, which makes it the fourth-largest source of metal for U.S. customers. The oversupply of Cobalt in the world has been attributed to Indonesia and Democratic Republic of Congo. Prices have fallen to their lowest levels in nine years, around $10 per lb. or $22,000 per metric ton. The price of cobalt has recovered since the government of Congo suspended exports for four month to reduce oversupply. Industry sources, however, say that this will not make much difference in a market where supplies are far greater than the demand. Glencore, a London-listed company, and China's CMOC Group are among the top cobalt producers in Congo. Last year, the U.S. imported the most cobalt from Norway, Japan, and Madagascar. (Reporting and editing by Veronica Brown, Jan Harvey and Veronica Brown; Additional reporting by Amy Lv and Bernadette Cristina in Jakarta and Beijing; Reporting by Pratima Deai)
Masdar, SOCAR and ACWA Set Sights on 3.5GW Offshore Wind Projects in Azerbaijan
UAE’s clean energy powerhouse Masdar has signed a memorandum of understanding (MoU) with SOCAR Green and ACWA Power to develop 3.5 GW of offshore wind projects in the Azerbaijan section of the Caspian Sea.
The potential projects would be Azerbaijan’s first offshore wind farms. The agreement supports plans by Azerbaijan to develop renewable energy, green hydrogen and water desalination projects.
“Azerbaijan is a key strategic partner for Masdar and the signing of this Memorandum of Understanding with our partners today paves the way to accelerate the scale of Azerbaijan’s clean energy vision.
“We are proud to expand our partnership with ACWA Power and SOCAR to further explore renewable energy projects in the region, especially the enormous offshore wind potential in the Caspian Sea,” Mohamed Jameel Al Ramahi, CEO of Masdar, said:
“This agreement represents an important step forward in our journey towards a sustainable energy future. By leveraging the combined expertise of SOCAR, Masdar, and ACWA Power, we aim to unlock the vast offshore wind potential of the Caspian Sea, supporting Azerbaijan’s energy transition targets.
“These projects not only reflect our dedication to clean energy but also to economic growth and environmental stewardship for future generations,” added Rovshan Najaf, President of SOCAR.