2026-01-14 06:32
Investors hunt for value outside of tech stocks Bank shares suffer despite some positive earnings Gold and silver hit new record highs on safe-haven demand Oil falls sharply from highs after Trump moderates Iran warnings Jan 14 (Reuters) - Technology and bank stocks led Wall Street indexes into a second day of declines on Wednesday, while oil prices snapped back from the day's highs after U.S. President Donald Trump softened warnings about unrest in Iran, although persistent economic and geopolitical uncertainty continued to support precious metals. Banner earnings releases from three of the largest U.S. banks showed rising profits from lending to credit-hungry consumers and businesses and rising fees from a dealmaking rebound, although Wells Fargo missed profit expectations. Sign up here. Investors sold bank stocks, sending Bank of America (BAC.N) , opens new tab shares down more than 4%, Citigroup (C.N) , opens new tab 4.5% lower and Wells Fargo (WFC.N) , opens new tab sliding more than 5%. Bank shares (.SPXBK) , opens new tab had jumped 25% in the past 12 months but fell this week in part due to a proposal from Trump to cap credit card interest rates. "After a nice run, and so-so or mediocre earnings, you're seeing profit-taking and consolidation" in the banks, said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut. "Generally speaking, people are still optimistic on the group." Selling spread to tech and growth stocks as investors looked for bargains, while Broadcom and Fortinet (FTNT.O) , opens new tab fell after a Reuters report about new limits from Chinese authorities on domestic companies using cybersecurity software made by roughly a dozen U.S. and Israeli firms. The tech-heavy Nasdaq Composite (.IXIC) , opens new tab closed 1% lower at 23,471.75. The Dow Jones Industrial Average (.DJI) , opens new tab declined 0.09% to 49,149.63, and the S&P 500 (.SPX) , opens new tab fell 0.53% to 6,926.60. Data showed U.S. retail sales increased more than expected and producer prices picked up slightly in November, lending further support to broad expectations that the Federal Reserve will cut interest rates twice later this year. MAYBE NO ATTACK ON IRAN Traders are grappling this week with questions over Federal Reserve independence, the U.S. desire to control Greenland and its implications for the NATO alliance, and whether the U.S. would attack Iran after a crackdown on historic protests. Oil prices settled higher but then gave back most of the day's gains after Trump said on Wednesday afternoon he had been told that killings in Iran's crackdown on nationwide protests were subsiding and he believed there was currently no plan for large-scale executions. "The market now thinks that maybe there is not going to be an attack on Iran so the stock market rallied and oil prices plummeted really quickly," said Phil Flynn, senior analyst with the Price Futures Group. Trump said the U.S. would "watch what the process is" in Iran. U.S. crude fell 1.1% to $60.49 a barrel and Brent declined 0.93% to $64.86 per barrel. Expectations of more supply from Venezuela and news that the country's state energy company has begun reversing oil production cuts made under a U.S. embargo limited price gains. The dollar, meanwhile, strengthened modestly against the euro, benefiting from the prospect that the Fed will wait several months before restarting rate cuts. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.1% to 99.09, with the euro last up 0.01% at $1.1643. PAVED WITH GOLD? Much market momentum was reserved for precious metals. Silver rose past $92 per ounce for the first time on Wednesday. It began 2025 under $30 an ounce, and has surged 29% in the first nine trading days of this year. Gold touched yet another record high of $4,641.40 per ounce and was last seen up 0.73% at $4,620.60 an ounce. Copper is also at unprecedented levels. "All roads are leading to gold and silver," said Alex Ebkarian, chief operating officer at Allegiance Gold, citing demand from diverse buyers and noting the market is in a structural bull phase. Gold yields no interest and typically performs well when interest rates are low and uncertainty is high. The U.S. Supreme Court took one item off the day's agenda when it did not issue a ruling on the legality of Trump's global tariffs. Meanwhile, U.S. high-end department store conglomerate Saks Global filed for bankruptcy protection. https://www.reuters.com/world/china/global-markets-wrapup-1-2026-01-14/
2026-01-14 06:28
China's 2025 imports from Canada -10.4% y/y to $41.7 bln - Chinese customs Imports down from record $46.6 bln in 2024 Canadian PM Carney arrives in China on Wednesday for high-stakes talks BEIJING, Jan 14 (Reuters) - China bought fewer goods from Canada last year for the first time since 2020, according to Chinese data released on the same day as the Canadian prime minister starts his China visit, in a stark reminder of the economic leverage Beijing has over Ottawa. Chinese imports from Canada tumbled 10.4% in 2025 to $41.7 billion from an all-time high a year earlier, a scheduled monthly statistics release by China's customs authority showed on Wednesday. The last time inbound shipments fell was in 2020 when the pandemic knocked down imports by a staggering 22.3%. Sign up here. Mark Carney arrived in Beijing on Wednesday, China's state-run news agency Xinhua reported, in the first visit to China by a Canadian prime minister since 2017. The trip is expected to focus on narrowing a years-long rift that widened in 2024 when former Prime Minister Justin Trudeau followed in the footsteps of the Biden administration and slapped 100% tariffs on Chinese electric vehicles. "I'm headed to Beijing," Carney posted on social media as he boarded his plane bound for China. "China is our second-largest trading partner, and the world's second largest economy. A pragmatic and constructive relationship between our nations will create greater stability, security, and prosperity on both sides of the Pacific." The decision to visit China followed a positive encounter with Chinese leader Xi Jinping in South Korea in October. While the meeting produced no breakthroughs, with Chinese tariffs still shutting out Canadian canola from its biggest market, both leaders agreed to advance bilateral ties. Xi invited Carney to visit, which he accepted. Re-engagement with China has also been driven by a desire to diversify export markets after U.S. President Donald Trump rained tariffs on Canada last year and suggested that the longtime U.S. ally could become the 51st U.S. state. Ahead of Carney's visit, Chinese state media has been quick to remind Carney on Canada's "strategic autonomy" from its southern neighbour. "If the Canadian side reflects on the root causes of the setbacks in bilateral relations over the past few years - the previous Justin Trudeau government's policies to contain China in lock step with the United States - it will realise that it can avoid the same outcome by upholding its strategic autonomy in handling China-related issues," state-run China Daily wrote in an editorial on Monday. "By working with Beijing to manage their differences appropriately, Ottawa can have Canada's interests better served." Chinese imports from the United States in 2025 also slumped, down 14.6% from a year earlier, according to the Chinese customs data released on Wednesday. https://www.reuters.com/world/china/chinas-2025-canadian-trade-slump-remind-visiting-carney-economic-stakes-2026-01-14/
2026-01-14 06:04
LITTLETON, Colorado, Jan 14 (Reuters) - Growing nuclear power generation alongside reactor construction is tightening the market for uranium - the main fuel used in nuclear power plants - and is setting the stage for a rally in uranium prices this year. U.S. uranium industry spot prices ended 2025 at around $82 a pound in 2025, showed data from Canadian uranium miner Cameco (CCO.TO) , opens new tab, marking a roughly $10 or 12% rise from the end of 2024. Sign up here. That rise compared to increases of well over 100% in the share prices of prominent uranium miners and fuel suppliers in 2025, which surged on policies by the U.S. government designed to revive nuclear power production. Yet while equities tied to the nuclear supply chain look set to remain popular among investors, industry focus is turning to the state of the uranium market which is facing a widening structural deficit as consumption exceeds production. Surging demand for power due to an AI-fueled boom in data centers, alongside the construction of small modular reactors, is exacerbating that uranium shortfall, especially in the U.S. where mine supply hit historic lows in the past decade. U.S. mine production of uranium is expanding again but is only set to be around 1 million pounds this year compared to U.S. annual consumption of over 50 million pounds. This supply-demand mismatch is in turn subjecting U.S. uranium prices to upward pressure, which may intensify as 2026 rolls on. While spot prices remain below $90 a pound, executives tracking discussions between mine suppliers and power generators have noted that long-term pricing contracts are nearer $100. If deals are confirmed at or above the psychologically significant $100 - last consistently surpassed in 2007 - that could spark fresh momentum in spot market activity and help establish uranium as one of 2026's hottest markets. STOCKS DRAWDOWN In recent years, the U.S. uranium supply deficit was plugged by imports and inventories from the secondary market, which includes utility stockpiles, decommissioned warheads and leftover material at enrichment facilities. But stepped-up purchases by utilities and government agencies have now drawn down those secondary supplies, while restrictions on future uranium imports from a belligerent Russia - which will be banned from 2028 - have narrowed the sources of imports. This combination of lower stockpiles on the local secondary market and restrictions on imports has placed greater focus on the spot market and on any fresh but un-contracted output from uranium mines. Increased uranium purchases by investors are further tightening the supply imbalance and are becoming another bullish driver of market sentiment. Uranium holdings by the Sprott Physical Uranium Trust (SPUT) - the world's largest fund that stockpiles physical uranium - increased by 9 million pounds to a record 72.5 million pounds in 2025, data from the trust showed. As the global nuclear reactor fleet cranks up power production and new reactors begin operations, investor holdings of the main fuel needed by the nuclear sector look set to continue growing, adding further momentum to prices. RECORD NUCLEAR GENERATION World output of nuclear-powered electricity likely hit a record in 2025, after generation in several major nuclear power systems hit all-time or multi-year highs. Nuclear-powered electricity supplies in China, India, South Korea and France all rose to the highest levels in at least five years in 2025, data from energy think tank Ember showed. Nuclear generation in Japan - which shuttered a majority of its nuclear fleet in the wake of the 2011 Fukushima meltdown - has also rebounded, and looks set to grow further in 2026 as the country restarts the world's largest reactor in Niigata prefecture. New nuclear reactors are also scheduled to begin operations in China, India, Turkey and the United States in 2026, which will further lift the nuclear sector's uranium appetite and help lift total nuclear power output to fresh record highs. POWER PIPELINE Europe accounts for a majority of the global nuclear power fleet, with 39% of all operating nuclear reactors located in the region. Europe has around 157,000 megawatts (MW) of nuclear power generating capacity, showed data from Global Energy Monitor (GEM), with around 401,000 MW in place globally. Asia has the next largest nuclear capacity footprint with around 120,000 MW, followed by North America's 117,000 MW. However, Asia dominates the nuclear development pipeline, with 66,000 MW of reactors under construction in the region out of 82,000 MW being constructed globally. Asia also accounts for two-thirds of nuclear power plants in so-called pre-construction, which is where sites have been selected and permits have been attained, but where crews have yet to break ground. Around 107,000 MW are classified as being in pre-construction globally, with 60,000 MW in Asia, 36,000 MW in Europe, 8,000 MW in North America and 4,000 MW in Africa, GEM data showed. Once the batch of plants that are under construction and in pre-construction are complete, Asia will emerge as the world's main nuclear hub, with around 246,000 MW of the global total of 590,000 MW of nuclear power generation capacity. As with most areas of the energy sector, China tops country rankings in terms of nuclear capacity being built at around 65,000 MW, while India has the second-largest development pipeline at 32,000 MW. The United States has around 8,000 MW of nuclear capacity in the development queue which, when complete, would mark a roughly 7% rise in total U.S. installed nuclear generation capacity. However, given aggressive policy backing to speed up growth in the U.S. nuclear sector, it is likely that additional capacity plans will emerge in the years ahead. That in turn will only tighten the country's uranium supply situation and will likely keep uranium prices prone to bouts of strength for the foreseeable future. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. https://www.reuters.com/markets/commodities/is-us-uranium-market-about-go-nuclear-2026-2026-01-14/
2026-01-14 06:03
Gold hits record high of $4,641.40/oz; silver at $92.23 US retail sales, PPI beat expectations in November Short-term forecast for silver $100-$144, analyst says Jan 14 (Reuters) - Gold surged to a record high on Wednesday, with silver rising in its wake, as geopolitical and economic uncertainties drove investors toward safe-haven assets while expectations of Federal Reserve rate cuts added further momentum. Spot gold was 0.9% higher at $4,628.68 per ounce by 01:38 p.m. ET (1838 GMT), after earlier hitting a record high of $4,641.40. Sign up here. U.S. gold futures for February delivery settled 0.8% higher at $4,635.70. "All roads are leading to gold and silver," said Alex Ebkarian, COO at Allegiance Gold, citing demand from diverse buyers and noting the market is in a structural bull phase. Gold, which does not yield interest, typically performs well in periods of low interest rates and heightened uncertainty. Iran warned neighbours hosting U.S. troops it would strike American bases if Washington intervenes over protests in the country, while Danish and Greenlandic ministers will meet U.S. Vice President JD Vance after President Donald Trump renewed demands for U.S. control of Greenland. Meanwhile, data showed U.S. retail sales rose above expectations in November, while PPI met monthly forecasts but exceeded annual estimates, following weaker-than-expected December core CPI figures released on Tuesday. Traders continued to anticipate two interest rate cuts this year. Concerns over Fed independence remained, as central bank chiefs from around the world lined up in support of Fed chair Jerome Powell on Tuesday, after the Trump administration threatened him with a criminal indictment. Spot silver was up 5.2% at $91.46 per ounce, after scaling a record high of $92.23. "We anticipate some volatility, but I see silver at $100 as no different than at $90. Our short-term forecast is between $100 to $144," Ebkarian said, adding that metals are likely to maintain their upward trend through the first quarter. Spot platinum climbed 2.4% to $2,379.68 an ounce, palladium rose 1.3% to $1,862.96 an ounce. https://www.reuters.com/world/india/gold-near-record-highs-fed-rate-cut-bets-silver-cracks-90-2026-01-14/
2026-01-14 05:34
A look at the day ahead in European and global markets from Ankur Banerjee And just like that we are back screen gazing as the yen edges towards 160 per dollar, stoking intervention worries, as the prospect of a snap election next month in Japan turbocharges the so-called "Takaichi trade". Sign up here. Investors are selling both the yen and longer-term Japanese government bonds (JGBs) for fear of low rates and more stimulus in an economy with one of the highest debt burdens in the developed world. The expectation of more stimulus and the frail yen propelled the Nikkei (.N225) , opens new tab through the key 54,000 mark for the first time on Wednesday after local media reported Prime Minister Sanae Takaichi might call for a general election in February. With the yen at its weakest level against the dollar since July 2024, traders are wary of authorities taking action even though intervention could be tricky just ahead of an election. Still, the market is vigilant because a snap vote could also lead to Japan facing its own version of the U.S. fiscal cliff. Meanwhile, precious metals continue their strong start to 2026 after eye-popping returns last year as silver and gold scale record peaks as geopolitical tensions fuel safe-haven flows. The dollar on the other hand has had to wrestle with soft U.S. economic data and worries around the Federal Reserve's independence. Data on Tuesday showed U.S. inflation was mellow, keeping rate cuts in 2026 on the table although traders do not expect the Fed to move before Chair Jerome Powell's term ends in May. The escalating tussle between Powell and U.S. President Donald Trump has strengthened the case for diversification beyond the United States, some investors say, as murmurs of "Sell USA" trade reemerge. The U.S. Supreme Court is expected to issue one or more rulings on Wednesday, which could include litigation on the legality of Trump's global tariffs. The court is set to release rulings at about 10 a.m. ET (1500 GMT). The court does not announce ahead of time the rulings it intends to issue. The spotlight later in the day will also be on earnings from Citigroup (C.N) , opens new tab, Bank of America (BAC.N) , opens new tab and Wells Fargo (WFC.N) , opens new tab as traders look for comments on Trump's proposed 10% cap on credit card interest rates. JPMorgan Chase (JPM.N) , opens new tab, which on Tuesday reported quarterly profit that exceeded analysts' estimates, said the proposed cap would severely hurt consumers, weighing on the broader market. Key developments that could influence markets on Wednesday: Bank earnings, possible SCOTUS ruling on U.S. tariffs https://www.reuters.com/world/china/global-markets-view-europe-2026-01-14/
2026-01-14 05:27
Iran protests raise supply disruption fears, geopolitical risks Venezuela resumes oil exports US crude, gasoline inventories rise sharply -EIA NEW YORK, Jan 14 (Reuters) - Oil prices settled higher on Wednesday, then gave back most of the day's gains after U.S. President Donald Trump eased fears of disruptions to Iranian supplies when he said late in the afternoon that killings in Iran’s crackdown on civil unrest were subsiding. Brent futures were down 92 cents or 1.41% at $64.55 after settlement at 3:18 p.m. ET (2018 GMT). U.S. West Texas Intermediate crude futures slipped 96 or 1.57% to $60.19. Sign up here. Earlier, Brent futures settled $1.05, or 1.6%, higher at $66.52 a barrel. U.S. West Texas Intermediate crude gained 87 cents, or 1.42%, at $62.02 a barrel. Prices rose on fears of Iranian supply disruptions due to a potential U.S. attack on Iran and possible retaliation against U.S. regional interests. Trump said on Wednesday afternoon he had been told that killings in Iran’s crackdown on nationwide protests were subsiding and he believed there was currently no plan for large-scale executions. "The market now thinks that maybe there is not going to be an attack on Iran so the stock market rallied and oil prices plummeted really quickly," said Phil Flynn, senior analyst with the Price Futures Group. Still, tensions between Tehran and Washington remained high. Iran had warned U.S. allies in the Middle East it would strike U.S. bases on their soil if the U.S. attacked it. The U.S. was from key bases in the region as a precaution given heightened regional tensions, a U.S. official said on Wednesday. "Protests in Iran risk tightening global oil balances through near-term supply losses, but mainly through rising geopolitical risk premium," Citi analysts said in a note. The analysts noted, however, that the protests had not spread to the main Iranian oil-producing areas, which had limited the effect on actual supply. Also supporting oil prices, Federal Reserve Bank of Minneapolis President Neel Kashkari said on Wednesday he was optimistic about the economic outlook and expected inflation to wane. SHARP RISE IN US CRUDE STOCK CURBS PRICE GAINS U.S. crude and gasoline inventories both rose more than expected last week, the Energy Information Administration said on Wednesday, as refining activity and imports jumped. Crude stocks rose by 3.4 million barrels to 422.4 million barrels last week, the EIA said, compared with analysts' expectations in a Reuters poll for a 1.7 million-barrel draw. Gasoline stocks increased by 9 million barrels in the week to 251 million barrels, compared with analysts' expectations for a 3.6 million-barrel build. Also limiting price gains, Organization of the Petroleum Exporting Countries member Venezuela has begun reversing oil production cuts made under a U.S. embargo as crude exports were also resuming, three sources said. Two supertankers departed Venezuelan waters on Monday with about 1.8 million barrels each of crude in what may be the first shipments of a 50 million-barrel supply deal between Venezuela and the United States to get exports moving again following the U.S. capture of Venezuelan President Nicolas Maduro. https://www.reuters.com/business/energy/oil-prices-pause-gains-venezuela-shipments-resume-iran-concerns-loom-2026-01-14/
