2025-03-05 06:24

SANTIAGO, March 5 (Reuters) - Chile's SQM (SQMA.SN) , opens new tab, the world's second-largest lithium producer, reported a 40.9% fall in fourth-quarter net profit on Wednesday, as higher sales volumes failed to offset a sharp decline in lithium prices. The miner, which also produces fertilizers and industrial chemicals, reported net profit of $120.1 million, or 42 cents a share for the October-December period, compared to $205.9 million a year earlier. Analysts were expecting a net profit of $130.95 million, or 52 cents per share, according to data compiled by LSEG. SQM's revenue of $1.07 billion was marginally ahead of $1 billion expected by analysts. However, the results were impacted by prices of lithium, which have fallen more than 80% in two years. SQM said its lithium sales throughout 2024 increased by about a fifth compared to the prior year, but were unable to offset the weaker prices. "As a result, our average realized price dropped by more than 64%," SQM said in a statement accompanying results. The company said it expected sales volumes to rise 15% this year, but for prices to dip further in the first quarter, affecting the year-long average. "We also anticipate that the average realized price in 2025 should be lower than in 2024, with first quarter of 2025 prices slightly below those recorded in the fourth quarter of 2024," SQM said. SQM lowered its plan for 2025 capital expenditures to $1.1 billion, compared to $1.6 billion spent in 2024. The Chile lithium division will take the bulk of the spending, with $550 million, followed by $350 million for the iodine unit, and another $200 million for the international lithium division. SQM will discuss results with analysts on Wednesday at 1600 GMT. Sign up here. https://www.reuters.com/markets/commodities/chile-lithium-miner-sqm-reports-quarterly-net-profit-down-about-40-2025-03-05/

2025-03-05 06:19

Gold will likely remain an in-demand asset, analyst says China unlocks more fiscal stimulus ADP employment report due later in the day March 5 (Reuters) - Gold erased earlier losses and held steady on Wednesday, helped by a weakening U.S. dollar and safe-haven demand as markets continued to track possible impacts of U.S. President Donald Trump's fresh tariffs. Spot gold was little changed at $2,915.48 an ounce as of 0730 GMT after rising nearly 1% on Tuesday, while U.S. gold futures rose 0.2% to $2,926.20. The dollar index (.DXY) , opens new tab was at a three-month low, making bullion less expensive for overseas buyers. The benchmark 10-year Treasury yields however, gained, diminishing non-yielding gold's appeal. "I expect gold will likely remain an in-demand asset whilst international trade uncertainties remain the prevailing market theme," said Tim Waterer, chief market analyst at KCM Trade. Trump's fresh 25% tariffs on Mexican and Canadian imports took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%, spurring trade wars that could slam economic growth and lift prices for Americans still smarting from years of high inflation. China and Canada retaliated with their own set of tariffs on a range of U.S. goods, with Mexico expected to respond on Sunday. Federal Reserve Bank of New York President John Williams said that the U.S. tariffs will likely drive inflation higher, while adding that the current interest rate policy is appropriate and does not need changes. Trump's policies, widely seen as likely to stoke economic uncertainties, have helped safe-haven gold rise over 10% so far this year. Higher interest rates, however, could tarnish gold's appeal. Markets now await the ADP employment report due later in the day and U.S. nonfarm payrolls on Friday. Meanwhile, top metals consumer China unlocked more fiscal stimulus, signalling greater efforts to boost consumption as a means to ring-fence the economy's path towards this year's growth target of roughly 5%. Spot silver advanced 0.6% to $32.16 an ounce, platinum gained 1.1% to $971.40, and palladium added 1.4% to $957.75. Sign up here. https://www.reuters.com/markets/commodities/gold-eases-treasury-yields-dollar-rise-markets-gauge-trump-tariffs-2025-03-05/

2025-03-05 06:09

LITTLETON, Colorado, March 5 (Reuters) - Energy product traders, utilities, investors and business executives are among those scrambling to assess the likely impact of new steep tariffs on the United States' largest trade partners, which kicked in on Tuesday. New 25% tariffs on imports from Mexico and Canada, along with a doubling of duties on Chinese goods to 20%, took effect on March 4, kicking off a trade war that will have far-reaching effects on governments, businesses and households alike. Retaliatory moves from China and Canada have already been announced, while details on Mexico's planned responses are expected in the coming days. Further reprisals from impacted countries are possible in the coming weeks as business lobbies and trade advisers weigh in on measures that target pain points for the U.S. economy. Among the sectors likely to be targeted in any upcoming counter moves is the mammoth U.S. energy sector, which is the top producer of both crude oil and natural gas and is a major importer of power system and energy extraction components. Below are key energy sector trends and data points that are likely to be impacted by the latest trade war. OIL & GAS As the world's top exporter of liquefied natural gas and third largest exporter of crude oil in 2024 - according to Kpler - the U.S. is at risk of facing retaliatory tariffs on its energy product shipments. Buyers of LNG, crude oil and refined fuels can quite easily find other suppliers of the same commodities, and so can avert critical supply shortages while depriving the U.S. of a major source of export earnings. At the same time, U.S. exporters may face difficulties in quickly finding replacement markets for their goods, given the weak global demand growth for fossil fuels so far in 2025. In 2024, the top buyers of U.S. crude oil were the Netherlands, South Korea, China, the United Kingdom and Canada, while the top buyers of U.S. refined products were Mexico, Chile, Brazil and Peru, Kpler data shows. That means three of the largest markets for U.S. crude and fuels are now saddled with stiff tariffs on the goods they ship to the U.S., and are likely looking for items they can target in return. China and Canada accounted for around 13% of total U.S. crude exports in 2024, while Mexico accounted for 24% of U.S. clean product exports, Kpler data shows. Canada is also a major supplier of crude oil to the U.S., and the new 10% tariff on Canadian energy imports stands to impact U.S. refinery margins and boost U.S. gasoline prices. Reduced Canadian oil supplies could also impact U.S. refinery production levels, and eat into overall U.S. refined product output. In LNG, U.S. export flows have been primarily directed towards Europe, and only China ranked among major buyers of U.S. LNG shipments last year (with a 5% share) among the countries facing new tariffs. That said, the U.S.' heavy European exposure in LNG trade leaves it vulnerable to potential backlash by European buyers should Europe be next in line for tariff treatment by the Trump administration. U.S. natural gas producers also sell large volumes to Mexico via pipelines, which again could be impacted by any worsening in trade tensions between the countries. POWER IMPACT The U.S. is a major importer of several components tied to the energy extraction, power production and electricity distribution sectors. The U.S. wind power industry is a top buyer of parts and components made in Canada, China or Mexico, and so could face sharply higher import costs going forward. U.S. utilities are also the world's largest importers of grid-scale battery systems and transformers that are made mainly in China, South Korea and Japan, and so again potentially face stiff price increases for critical equipment. On the flip side, Canada and Mexico were among the top markets for U.S.-made gas turbines in recent years, and so U.S. producers of those turbines may now get hit by reduced sales to those key markets. Power consumers could also be hit by trade tariff fallout, as Canada supplies several parts of the northern United States with clean power, which could feasibly be impacted by any further souring in trade relations with Canada. Any cuts to Canadian power flows to the U.S. could place added strain on the domestic U.S. grid, and force utilities to raise production from natural gas and coal-fired power plants. Higher fossil fuel generation could in turn boost emissions around the country, and further elevate local natural gas prices which have already climbed by around 18% so far this year. (The opinions expressed here are those of the author, a market analyst for Reuters.) Sign up here. https://www.reuters.com/business/energy/key-us-energy-data-trends-track-tariffs-kick-maguire-2025-03-05/

2025-03-05 06:08

U.S. stocks end with gains of more than 1% Trump to delay some auto tariffs for 1 month Oil falls after US crude stock build NEW YORK, March 5 (Reuters) - Stock indexes rose sharply on Wednesday after the White House said President Donald Trump will exempt automakers from his 25% tariffs on Canada and Mexico for one month, while the U.S. dollar fell against most currencies and the euro hit its highest in four months. The automakers will be exempted as long as they comply with an existing free trade agreement, the White House said, noting that Trump is also open to hearing about other products that should be exempted from the tariffs, which took effect on Tuesday. The new 25% tariffs on imports from Mexico and Canada were imposed along with fresh duties on Chinese goods, sparking trade wars that fueled worries about economic growth. Stocks were volatile near flat in early trading before turning sharply higher by the afternoon. "It's not a very consistent message that comes from the administration in the sense that they always seem open to changes, and yet the policies they're announcing are pretty dramatic," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. Investors took comfort in Trump's commitment to cutting taxes in a major address to Congress late on Tuesday, but voiced concerns about his continued focus on tariffs and other plans. The Dow Jones Industrial Average (.DJI) , opens new tab rose 485.60 points, or 1.14%, to 43,006.59, the S&P 500 (.SPX) , opens new tab rose 64.48 points, or 1.12%, to 5,842.63 and the Nasdaq Composite (.IXIC) , opens new tab rose 267.57 points, or 1.46%, to 18,552.73. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 12.57 points, or 1.49%, to 858.71. The pan-European STOXX 600 (.STOXX) , opens new tab index rose 0.91%. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 1.19% to 104.31, with the euro up 1.55% at $1.0789. The euro was on track for its best week since November 2022. It got a boost late Tuesday when German political parties agreed to a 500 billion-euro ($534.75 billion) infrastructure fund and, crucially, an overhaul in borrowing limits that economists billed as "a really big bazooka". The euro also gained against other currencies, including the British pound, the Japanese yen and the Swiss franc , , . The overhaul to German government borrowing also triggered the biggest sell-off in the country's debt since the late 1990s. Germany's 10-year yield was last up 1.6 basis points at 2.8%. U.S. Treasury yields climbed as investors assessed the latest U.S. economic data while weighing developments on Trump's tariffs. Yields initially dipped after the ADP National Employment Report showed private payrolls increased by only 77,000 jobs last month, well short of the 140,000 estimate of economists polled by Reuters, after an upwardly revised 186,000 gain in January. A string of data has raised concerns about a slowing economy and nudged up market expectations for the timing and size of interest rate cuts by the Federal Reserve this year. The benchmark U.S. 10-year Treasury note yield rose 5.9 basis points to 4.269% after reaching 4.284%, its highest since February 27. Investors also scrutinized the start of China's annual sessions of its parliament, the National People's Congress, at which Beijing retained a goal of roughly 5% economic growth for 2025. The dollar weakened 0.22% to 7.236 versus the offshore Chinese yuan. Oil prices ended lower after U.S. crude oil stockpiles posted a larger-than-expected build, adding to other headwinds. Brent futures settled down $1.74, or 2.45% to $69.30 a barrel. U.S. West Texas Intermediate crude (WTI) settled down $1.95, or 2.86%, to $66.31 a barrel. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2025-03-05/

2025-03-05 05:54

SHIZUOKA, March 5 (Reuters) - Bank of Japan Deputy Governor Shinichi Uchida said on Wednesday the central bank had no immediate plan to sell its large holdings of exchange-traded funds (ETF). Speaking at a news conference, Uchida also said the BOJ does not aim at manipulating currency rates with monetary policy. He declined to comment on U.S. President Donald Trump's remarks on Monday criticising Japan and China as intentionally weakening their currencies. Sign up here. https://www.reuters.com/markets/rates-bonds/boj-has-no-immediate-plan-sell-etf-holdings-deputy-governor-says-2025-03-05/

2025-03-05 05:37

A look at the day ahead in European and global markets from Kevin Buckland With so much going on in markets right now, it's hard to know where to look. The raging Trump-led trade war - branded "dumb" by Canadian Prime Minister Justin Trudeau - certainly has investors' attention, keeping sentiment subdued across asset classes. For instance, one index of global equities has lost some 2% so far this week and Brent crude is plumbing six-month lows. But it's not as simple as that, with Wall Street poised to open higher following a sell-off on Tuesday, and futures indicating even bigger gains for European bourses. The parties hoping to form Germany's next government have given reason for optimism, with landmark agreements to create a 500 billion euro ($530 billion) infrastructure fund and loosen fiscal rules to boost defence spending and revitalise growth. In a similar vein, the European Commission has proposed borrowing up to 150 billion euros to lend to EU governments under a rearmament plan. The backdrop of course is the volatile negotiations for peace in Ukraine, with Washington seeming to pull away from allies in Europe and to draw closer to Moscow. But rapprochement suddenly looks closer, with U.S. President Donald Trump sounding very satisfied with a reconciliatory letter from Ukrainian President Volodymyr Zelenskiy after their extraordinary clash in the Oval Office last week. Trump revealed the letter in his first address to Congress following his return to office, in which he touched on the breadth of his many executive orders merely six weeks since inauguration. In what analysts said might be a cause for concern, Trump advocated scrapping a bipartisan law giving $52.7 billion in subsidies for semiconductor manufacturing, though initial reaction in markets was barely noticeable. Meanwhile, investors have judged tit-for-tat tariff countermeasures to have been relatively tame so far. Chinese policymakers are girding for any trade war with a promise to unlock more fiscal stimulus. That comes from the just-begun annual session of the National People's Congress, which runs until Tuesday, leaving lots of time for more details to emerge. Developments that could influence markets on Wednesday: ($1 = 0.9418 euros) Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2025-03-05/