2024-08-21 04:31
A look at the day ahead in European and global markets from Tom Westbrook Markets' sparkling recovery from early August's sell-off has hit an air pocket, with Asian shares down on Wednesday and Tuesday's small drop leaving the S&P 500 (.SPX) , opens new tab a day short of matching a 20-year-old winning streak. A yen at 145.5 per dollar, and rising, sapped sentiment in Japanese stocks and news that Walmart (WMT.N) , opens new tab is looking to sell its JD.com (9618.HK) , opens new tab stake sent the Chinese online retailer's shares slumping in Hong Kong, after what had been a big bounce on an upbeat earnings report. Market momentum is stumbling more or less where the selling began two weeks ago and brings us full circle on the economic outlook: waiting on data to gauge the risk of recession and watching polling to gauge the U.S. presidential contest. Former U.S. President Barack Obama returned to the national stage on Tuesday night to boost his longtime Democratic ally Kamala Harris in her 11th-hour presidential bid against Republican Donald Trump. Fed minutes are due later on Wednesday, along with revisions to U.S. labour data. Goldman Sachs expects a downward revision in the range of 600,000 to 1 million jobs added, although it argues this would overstate the weakness of the labour market. Much will also depend on the U.S. labour report due on Sept. 6, with the job market in greater focus now that inflation seems to be trending lower. Rates markets have fully priced a 25 basis point U.S. interest rate cut for September and a near 1/3 chance of a 50 bp cut, driving the dollar down steadily on just about everything. Gold has notched records above $2,500 an ounce this week and the euro is in unfamiliar territory at $1.11. Some analysts see risks if the labour market seems stronger than expected, or if Fed Chair Jerome Powell doesn't sound very dovish in a speech he is due to give at Jackson Hole on Friday. CNN's fear and greed index, derived from conditions in stock, options and credit markets, has recovered to neutral from "extreme fear" just a week ago. But investors seem to want new data to validate the benign outlook before plunging in again. Data in Asia on Wednesday showed Japanese exports lagging expectations, while South Korean exports for the first 20 days of August went up 18.5% from a year earlier. Key developments that could influence markets on Wednesday: Economics: U.S. labour data revisions Policy: U.S. Federal Reserve minutes Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-08-21/
2024-08-21 00:51
Aug 21 (Reuters) - Rare earths developer Meteoric Resources (MEI.AX) , opens new tab said it has executed an agreement to supply 3,000 metric tons of rare-earth oxide from its forthcoming Caldeira rare earth ionic clay project in Brazil to Canada's Ucore Rare Metals (UCU.V) , opens new tab. Under the agreement, the parties will work towards a binding agreement for the supply of mixed rare earth carbonate (MREC) to Ucore's developing rare earth oxide production facility, the Louisiana Strategic Metals Complex in the United States, Meteoric Resources said on Wednesday. The Perth-headquartered firm said it also expects to obtain a construction permit by the fourth quarter of 2025, and aims to commence MREC production during the second half of 2027. "Ucore's interest signals strong external market confidence in the Caldeira Project's ability to progress to a final investment decision and into production," Meteoric CEO Nick Holthouse said. Shares of Meteoric were down as much as 4% to A$0.096 by 0033 GMT, amid weakness across the sector. The agreement follows Meteoric collaborating with a regional department of Brazil's Minas Gerais state in late June to explore the production of rare earths magnets. Sign up here. https://www.reuters.com/markets/commodities/australias-meteoric-resources-supply-rare-earths-oxide-canadas-ucore-2024-08-21/
2024-08-21 00:31
LONDON, Aug 21 (Reuters) - Oil prices steadied on Wednesday, with benchmark Brent holding above $77 a barrel, after steady sell-offs driven by expectations of reduced Chinese demand and diminishing concerns the conflict in the Middle East could spread and disrupt supply. Brent crude futures were up 14 at $77.34 a barrel by 1142 GMT. U.S. West Texas Intermediate crude was 10 cents higher at $73.27. Since peaking above $82 on Monday last week, Brent had shed 6.2% of its value by the end of trading on Tuesday, closing at a two-week low of $77.20. WTI fell 7.5% in the same period. As expectations swirl economic weakness in China, the world's biggest crude importer, will subdue demand, stocks in the United States, the world's biggest producer and consumer of oil, are set to rise. U.S. crude oil stocks were forecast to have risen last week, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline and distillate stocks fell, however, according to the sources. Official U.S. government inventory estimates are set to be released on Wednesday at 10:30 a.m. (1430 GMT). Meanwhile, U.S. Secretary of State Antony Blinken wrapped up a trip to the Middle East intended to help broker a ceasefire agreement in Gaza. Blinken and mediators from Egypt and Qatar have raised hopes for a U.S. "bridging proposal" that could shrink the gaps between the two sides in the 10-month-old war. "Hopes of a cease-fire between Israel and Hamas have weighed on oil, along with lingering demand concerns," ING commodities strategists said. "While weaker Chinese demand has been well reported, refinery margins around the globe have been under pressure for much of August, suggesting that these demand concerns are not isolated to just China," they said. China's economic struggles have contributed to weak processing margins and low fuel demand that has curbed operations at state-run and independent refineries. Imports of crude oil from Russia fell in July by 7.4% from a year ago, while fuel oil imports retreated for a third straight month, customs data showed this week. Sign up here. https://www.reuters.com/markets/commodities/oil-prices-down-swelling-us-crude-stocks-easing-middle-east-tensions-2024-08-21/
2024-08-21 00:19
Aug 20 (Reuters) - Demand for power in Texas hit a record high on Tuesday as homes and businesses cranked up air conditioners to escape a heat wave across the state. Texas' surging population growth in recent years and its status as a hub for some of the most energy-intensive industries, including data centers and cryptocurrency mining, have ramped up power demand and increased stress on its vulnerable electrical grid. After breaking peak-demand records several times in April and May, Texas peak power demand reached a preliminary 85,558.98 megawatts (MW) on Tuesday, which topped the previous record of 85,508 MW set on Aug. 10, 2023, according to the Electric Reliability Council of Texas. The council, which operates most of the grid for 27 million customers, said it expected demand would ease to 85,921 MW on Wednesday. The grid operator also said the power network was operating normally, with enough supply available to meet expected demand. One megawatt can power 800 homes on a normal day but as few as 250 on a hot summer day in Texas, when homes and businesses turn up air conditioners. Temperatures in Houston, the state's biggest city, were expected to reach 103 degrees Fahrenheit (39 degrees Celsius) on Tuesday before easing to 100 F (38 C) on Wednesday, according to AccuWeather meteorologists. That compares with a normal high of 95 F (35 C) for this time of year. Next-day power prices at the ERCOT North Hub , which includes Dallas, jumped about 157% to a two-week high of around $102 per megawatt hour for Tuesday, according to LSEG pricing data. That compares with an average of $57 per MWh so far in August, and $33 so far this year, $80 in 2023 and $66 from 2018 to 2022). Real-time prices soared to almost $1,600 per MWh during one 15-minute interval around 6 p.m. on Monday, according to the grid operator's website. Sign up here. https://www.reuters.com/business/energy/texas-power-demand-set-break-record-during-heat-wave-grid-operator-says-2024-08-20/
2024-08-21 00:12
Aug 20 (Reuters) - The Dominican Republic on Tuesday said it will create a state mining firm to explore and exploit the nation's key mining resources, including rare earth minerals. The Dominican presidency said in a statement that the state firm, Empresa Minera Dominicana S.A., or Emidom, will explore, exploit and run economic viability studies on the country's natural resources. The firm will be able to negotiate contracts and alliances with international firms and it will have a nine-member board, led by the minister of the presidency. Emidom is also tasked with managing the Avila mining reserve in southern Pedernales province, which borders with Haiti and was in 2018 declared an area to be explored for possible rare earth projects. Last year the U.S. military , opens new tab said a team of its engineering researchers worked with local authorities in the highlands of Pedernales to evaluate the area's viability. The Caribbean nation is home to Canadian firm Barrick Gold's (ABX.TO) , opens new tab Pueblo Viejo, the largest gold mine in Latin America and the Caribbean. Sign up here. https://www.reuters.com/markets/commodities/dominican-republic-creates-state-miner-explore-rare-earths-2024-08-21/
2024-08-20 23:49
SYDNEY, Aug 21 (Reuters) - Australia said on Wednesday it had given the go-ahead for a A$20 billion ($13.5 billion) solar project that plans to ship energy from a giant solar farm in the country's north to Singapore through a 4,300 km (2,672 miles) undersea cable. Environment Minister Tanya Plibersek said SunCable's flagship Australia-Asia power link project would help meet growing demand for renewable energy at home and abroad. A final investment decision is expected in 2027 with electricity supply to begin in the early 2030s, according to SunCable. The approval comes with strict conditions to protect nature and the project must avoid the habitat of greater bilby, which are small rabbit-like marsupials with long floppy ears, Plibersek said. Over two stages of development, the project aims to deliver up to 6 gigawatts of green electricity to large-scale industrial customers in Darwin, the capital city of Australia's Northern Territory, and in Singapore. The approval comes as the centre-left government ramps up renewable energy projects even as the opposition coalition proposes building nuclear plants to replace coal-fired power by 2050, in a country where nuclear power is currently banned. SunCable, owned by billionaire Mike Cannon-Brookes, said the approval was "a vote of confidence" in the project. Cannon-Brookes, the co-founder of tech firm Atlassian (TEAM.O) , opens new tab turned environmental activist, last year said the project was viable and that outside investors would be drawn to the project. "SunCable will now focus its efforts on the next stage of planning to advance the project towards a final investment decision targeted by 2027," SunCable Australia Managing Director Cameron Garnsworthy said in a statement, which did not provide details of its financing plans. SunCable said it was in talks with Singapore's energy regulator on the conditional approval for the project's cable inter-connector component and with the Indonesian government on building the cable in its waters. The project received clearance from the Northern Territory government and the territory's environment watchdog last month. ($1 = 1.4830 Australian dollars) Sign up here. https://www.reuters.com/sustainability/climate-energy/australia-approves-135-bln-project-export-solar-power-singapore-2024-08-20/
