MARKET MOVEMENTS:
–Brent crude oil is down 0.2% to $74.32 a barrel.
–European benchmark gas is down 1% to EUR39.28 a megawatt-hour.
–Gold futures are up 0.7% to $2,725.20 a troy ounce.
–LME three-month copper futures are up 1.2% at $9,623.00 a metric ton.
TOP STORY:
Gold Prices Hit New Record, Are Set for Even More Gains
Gold futures hit a fresh record as geopolitical tensions simmer and economic uncertainty mounts, and they look set to climb even higher.
Continuous gold futures on the New York Mercantile Exchange rose 0.75% to $2,727.90 a troy ounce in European midday trading, having reached as high as $2,729.30 earlier in the session.
The precious metal has been on a tear in recent days, climbing more than 3% in the past week and finally surpassing its prior record of $2,708.70 an ounce set in late September.
“Gold is likely to perform well over the long term, driven by several key trends: the ongoing debasement of the U.S. dollar, the precarious fiscal situations of many Western nations, and the global desire for a store of value independent of other assets and institutions,” said Ryan McIntyre, managing partner at asset manager Sprott.
OTHER STORIES:
Beach Energy 1Q Oil, Gas Output Rises 10%
Beach Energy reported a 10% rise in quarterly production, which helped to keep revenue broadly similar to what it achieved in the previous three months.
Beach said it produced 5.2 million barrels of oil equivalent in the three months through September, benefiting from the completion of the Enterprise development in the Otway Basin where output rose by 24%. It also lifted production in the Bass Basin by 81%.
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CATL Quarterly Profit Rises Despite Lower Revenue
China’s CATL, the world’s largest EV battery maker, reported a 26% rise in profit in the third quarter despite weaker sales.
Net profit was 13.12 billion yuan, equivalent to $1.84 billion, up from 10.43 billion yuan a year ago, Contemporary Amperex Technology said Friday.
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Northvolt Closes in on $300 Million Funding Deal, Source Says
Northvolt is close to securing a $300 million funding package from a consortium of investors, shareholders and customers to meet short-term requirements amid a slowdown in demand for batteries, a person familiar with the deal said.
The embattled Swedish battery maker is in the final stages of talks with stakeholders on a financial package that includes debt and equity, the person said.
MARKET TALKS:
Palm Oil Ends Lower Amid Demand Concerns, Price Adjustment — Market Talk
1006 GMT – Palm oil ended lower amid demand concerns and price adjustments after a recent rally. India’s imports of the vegetable oil could trend lower after Diwali and the market focus will be on China’s demand, Guolian Futures said in a research note. If China’s stimulus policies are strong enough to spur consumption, palm-oil prices could continue their upward trend, it said. Palm oil has rallied near 15% since mid-September on shrinking production in its largest producing regions and has been commanding a rare premium to soybean oil, AmInvestment Bank said in a note. The Bursa Malaysia Derivatives contract for January contract ended MYR21 lower at MYR4,257 a ton. (sherry.qin@wsj.com)
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Oil Steady But on Track for Significant Weekly Loss
0803 GMT – Oil prices are broadly stable in early European trading but still on track for a weekly loss of around 6%. Brent crude and WTI are both flat at $74.45 and $70.70 a barrel, respectively, after settling higher in the previous session following an unexpected weekly draw in U.S. crude stocks. Meanwhile, China’s economy slowed in the third quarter, highlighting the urgency to roll out measures to boost growth, but retail sales and industrial production showed signs of stabilization in September. Concerns over sluggish oil demand in the world’s second largest economy are weighing heavily on prices, but crude is still finding underlying support from heightened geopolitical tensions in the Middle East, with markets now waiting for further developments after Israel killed Hamas leader Yahya Sinwar. (giulia.petroni@wsj.com)
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Iron Ore Prices Fall as China Property Stimulus Disappoints — Market Talk
0214 GMT – Iron ore prices drop in Asian trade after China’s measures to support the property sector failed to shore up confidence, ANZ Research analysts write in a note. The government’s move to lower housing inventory could speed up recovery in the longer term, but will have little impact on iron ore and steel demand in the short term, they say. Iron ore may increasingly rely on stimulus to prop up prices, which may disappoint some investors, they add. The most-traded iron-ore contract on the Dalian Commodity Exchange is 2.4% lower at CNY746.0 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
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Copper Flat as Doubts Over China’s Property Support Linger — Market Talk
0135 GMT – Copper is flat in early Asian trading after falling overnight. There is persisted doubt over China’s property support measures unveiled on Thursday, ANZ research analysts say. In addition, they pointed to further signs of a rise in supply in dampened sentiment, with BHP reporting copper production rose 4% on year in its fiscal 1Q. The three-month LME copper contract is flat at $9,518.00 a ton. (tracy.qu@wsj.com)
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BHP Unlikely to Quickly Approach Anglo American Again, Says Bull — Market Talk
2351 GMT – Macquarie reckons the likelihood of BHP quickly making another bid for Anglo American–once a six-month standstill ends next month–is low given its rival’s ongoing restructuring. “We think BHP will remain patient on M&A,” analysts at the bank say in a note. They view BHP as being focused on its organic copper growth options. “If executed well, it retains optionality to acquire assets should valuations permit,” the analysts say. Macquarie has an outperform rating on BHP and says it prefers the world No. 1 miner over rival Rio Tinto, citing asset quality. It keeps a A$44.00/share target. BHP is down 1.8% at A$42.22/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
October 18, 2024 08:13 ET (12:13 GMT)
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