2025-12-31 12:07

Dec 31 (Reuters) - Canada's main stock index closed down on Wednesday, as falling metal prices pressured mining stocks and pulled the benchmark lower on the final trading day of a remarkable year for Canadian equities. The S&P/TSX Composite index (.GSPTSE) , opens new tab closed down 0.4% at 31,712.76 points extending its decline for a fourth consecutive session to hit its lowest level since December 19. Sign up here. Despite the year-end retreat, the commodity-heavy benchmark remains poised to close 2025 with impressive gains. The index has risen 1.3% in December alone, on track for its eighth consecutive monthly advance in a streak not witnessed since 2017. The TSX's nearly 29% surge this year also positions the index for its strongest annual performance since 2009, marking three straight years of gains and outpacing the benchmark S&P 500 in the U.S., which is on track to end 17% higher this year. The stellar performance has been driven by soaring gold and silver prices amid heightened geopolitical tensions, which have nearly doubled miners' shares, and advances in heavyweight financial stocks. The sectors collectively represent about two-thirds of the index's weight. However analysts remain skeptical if this momentum will continue. "The concern that I have is that if we do have a shift in the commodity cycle- how much does that actually deflate the exuberance that we're seeing right now," said Shiraz Ahmed, CEO Sartorial Wealth. Josh Sheluk, a portfolio manager at Verecan Capital Management, said 2026 will likely see more modest returns for the Canadian benchmark compared with 2025, primarily because the materials and precious metals sectors are unlikely to repeat their remarkable growth. On Wednesday, the mining sector led losses on the TSX as gold and silver prices slipped, with materials (.GSPTTMT) , opens new tab and gold (.SPTTGD) , opens new tab stocks both declining 0.5%. Most other sub-indexes were also in negative territory, while trading volumes remained thin ahead of the New Year holiday. https://www.reuters.com/business/tsx-futures-fall-final-trading-day-2025-2025-12-31/

2025-12-31 11:45

China sets 2026 import quota at 2.7 million tons for key countries Measure takes effect on January 1 for three years Tariffs aim to protect domestic industry New quotas for Brazil, Australia below 2025 shipment levels Analysts say China's beef farming lacks competitiveness BEIJING/SAO PAULO, Dec 31 (Reuters) - China will impose an added 55% tariff on beef imports that exceed quota levels from key suppliers including Brazil, Australia and the U.S. in a move to protect its domestic cattle industry. China's commerce ministry said on Wednesday the total import quota for 2026 for countries covered under its new "safeguard measures" is 2.7 million metric tons, roughly in line with the record 2.87 million tons it imported overall in 2024. Sign up here. The new annual quota levels are lower than import levels for the first 11 months of 2025 for top supplier Brazil, and Australia. "The increase in the amount of imported beef has seriously damaged China's domestic industry," the ministry said in announcing the measure following an investigation launched last December. The measure takes effect on January 1 for three years, with the total quota set to increase annually. Beef imports to China fell 0.3% in the first 11 months of 2025 to 2.59 million tons. Chinese beef imports will decline in 2026 as a result of the measures, said Hongzhi Xu, senior analyst at Beijing Orient Agribusiness Consultants. "China's beef-cattle farming is not competitive compared with countries such as Brazil and Argentina. This cannot be reversed in the short term through technological advancements or institutional reforms," Xu said. In 2024, China imported 1.34 million tons of beef from Brazil, 594,567 tons from Argentina, 243,662 tons from Uruguay, 216,050 tons from Australia, 150,514 tons from New Zealand, and 138,112 tons from the U.S.. In the first 11 months of this year, Brazil shipped 1.33 million tons of beef to China, according to Chinese customs data, higher than the 1.1 million tons set under Beijing's new measures. Also this year, Australian shipments to China have surged, gaining share at the expense of U.S. beef after Beijing in March allowed permits to expire at hundreds of American meat plants and as President Donald Trump unleashed a tit-for-tat tariff war. U.S. shipments stood at just 55,172 tons through November, less than half the 2024 levels. Australian beef exports to China stood at 294,957 tons in the first 11 months of 2025. “We have made it clear to China that Australian beef is not a risk to their beef sector, and that we expect our status as a valued Free Trade Agreement partner to be respected," Australian Trade Minister Don Farrell told Reuters on Thursday, calling China's decision "disappointing". The Australian government and beef industry were working closely to determine the full implications of the measure, Agriculture Minister Julie Collins said in an email reply to Reuters. BEEF SHORTAGE China's move comes as a global beef shortage pushes up prices in many parts of the world, including to record highs in the U.S.. Responding to Beijing's announcement, Mark Thomas, chair of the Western Beef Association in Australia, said: "There's plenty of other countries that will take our product." Luis Rua, secretary at Brazil's agriculture ministry, said there is no reason "to panic", telling Reuters that the government can negotiate "compensatory measures" with China to offset the impact of the new tariffs. In a telephone interview, Rua also mentioned Brazil's ability to redirect beef exports to other countries. Brazilian industry groups, on the other hand, expressed concern. In 2025, Chinese imports of Brazilian beef totalled approximately 1.7 million tons, equivalent to some 48% of the volume exported by Brazil overall, beef lobby group Abiec said in a statement. "Given this scenario, adjustments will become necessary throughout the entire supply chain, from production to export, to avoid broader impacts," Abiec noted. Another major Brazilian beef lobby group Abrafrigo said the potential impact of China's safeguard measures could mean a loss of up to $3 billion in export revenue for Brazil in 2026. This year, Brazil's total beef export revenues are estimated at $18 billion, Abrafrigo said. DOMESTIC PROTECTION China made its announcement following two extensions of its beef import probe, which officials say does not target any particular country. The tariffs will help curb the decline in China's breeding cow inventory and buy time for domestic beef enterprises to make adjustments and upgrades, said Zengyong Zhu, a research fellow of the Institute of Animal Science of the Chinese Academy of Agricultural Sciences. Beijing has stepped up policy support for the beef sector this year and said in late November that cattle farming had been profitable for seven consecutive months. https://www.reuters.com/world/china/china-imposes-curbs-beef-imports-protect-domestic-industry-2025-12-31/

2025-12-31 11:33

JOHANNESBURG, Dec 31 (Reuters) - South Africa's rand ended 2025 nearly 13% stronger against the U.S. dollar, marking its biggest annual gain in 16 years as the greenback weakened broadly. The risk-sensitive currency posted its first yearly rise against the dollar since 2019 and its largest increase since 2009, supported by South Africa's improved fiscal performance, success in containing inflation and a surge in precious-metal prices. Sign up here. Gold and platinum, key South African exports, rallied strongly during the year. In contrast, the U.S. dollar slid about 9% against a basket of major currencies, heading for its worst annual performance in eight years on expectations of U.S. Federal Reserve rate cuts, narrowing interest-rate differentials, concerns over the U.S. fiscal deficit and political uncertainty. These factors fuelled demand for safe-haven assets, pushing gold past a record $4,000 an ounce level in October and putting it on track for its strongest annual gain in more than four decades. Analysts said that while South African assets benefited, they did not fully take advantage of the commodity boom cycle. 2025 was also the first full year under South Africa's coalition government and was marked by disputes over the national budget and concerns over sweeping U.S. tariffs imposed by President Donald Trump. Despite the turbulence, local assets proved resilient, further boosted by the country's removal from the global financial crime watchdog's "grey list", a credit-rating upgrade by S&P, and a formal change to the inflation target that lifted investor confidence. Johann Els, chief economist at PSG Financial Services, said the rand is likely to benefit in 2026 from the same factors that boosted it in 2025. "I can see the rand continuing to strengthen in 2026, and I will not be surprised to see a 15 handle on the rand," Els said. At 1041 GMT, the rand traded at 16.5925 per dollar, a whisker away from Tuesday's close. On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI) , opens new tab was last down 0.7%, but remained near record levels for the year, largely supported by mining stocks. South Africa's benchmark 2035 government bond strengthened, with the yield falling 2 basis points to 8.205%. https://www.reuters.com/world/africa/south-african-rand-ends-2025-high-note-gains-nearly-13-dollar-2025-12-31/

2025-12-31 10:39

WARSAW, Dec 31 (Reuters) - Heavy snowfall in Poland caused tailbacks stretching as far as 20 km (12.43 miles) on a motorway between the capital Warsaw and the Baltic port city of Gdansk during the night, police said on Wednesday. While the situation left hundreds of people trapped in their cars in freezing conditions, by the early hours of Wednesday morning traffic was moving again, according to police. Sign up here. "The difficult situation began yesterday after 4 p.m., when the first trucks on the S7 route... began having trouble approaching the slopes," said Tomasz Markowski, a spokesperson for police in the northern city of Olsztyn. "This led to a traffic jam stretching approximately 20 kilometres overnight." Deputy Infrastructure Minister Stanislaw Bukowiec told a press conference that nobody had been hurt as a result of the difficult situation on the roads. Anna Karczewska, a spokesperson for police in Ostroda, said officers had tried to help drivers who found themselves stuck. Ostroda lies on the highway about 40 km west of Olsztyn. "We helped as much as we could, and we had coffee and hot tea for the drivers, which the Ostroda City Hall had prepared for us," she said. State news agency PAP reported that there had also been some disruption to railways and airports, but that services were returning to normal. https://www.reuters.com/business/environment/heavy-snow-poland-leaves-drivers-stranded-tailbacks-up-20-km-2025-12-31/

2025-12-31 10:20

Sterling up 7.5% against dollar in 2025, biggest rise since 2017 Pound falls over 5% against euro, worst since 2020 BoE's monetary policy actions crucial for pound's 2026 performance LONDON, Dec 31 (Reuters) - The British pound was a touch softer against the dollar on Wednesday but was still heading for its biggest annual rise in eight years. However, the pound has fallen against the euro in 2025 and is set to end the year as the worst-performing major European currency. Sign up here. Sterling was last down 0.2% against the dollar at $1.3436. For the year, the pound is up 7.5%, its biggest annual jump since a 9.5% rise in 2017. The euro, Swiss franc, Norwegian and Swedish crowns have gained between 13% and 19% against the dollar this year. Against the euro , the pound was down 0.1% on Wednesday. It has fallen over 5% to 87.24 pence in 2025, its biggest annual drop against the single currency since 2020. FISCAL WORRIES CAP GAINS While the pound has had a strong 2025 against a dismal dollar, the backdrop for sterling in the second half of the year was of domestic political worries, concerns about Britain's public finances and stagnant growth. The big focus for currency traders was the Autumn budget but November's fiscal event passed without too much fuss, alleviating some of the pressure that had been building for the pound in the second half. The pound's performance in 2026 will likely depend on the Bank of England's monetary policy actions. The central bank lowered borrowing costs four times in 2025, including in December, although the rate-setting Monetary Policy Committee remains divided and policymakers signalled that the already gradual pace of rate cuts could slow further. Money market traders are not fully pricing in another rate cut until June. Around 40 basis points of easing is priced by year end, implying around a 60% chance of a second rate cut. Kevin Thozet, a member of the investment committee at Carmignac, said that with the budget in the rearview mirror, a slowing economy, weakening labour market and elevated bond yields will allow the BoE to further lower interest rates. "The conundrum for the policymakers has eased at least for the short term," he said. https://www.reuters.com/world/uk/pound-set-biggest-yearly-rise-against-dollar-since-2017-down-vs-euro-2025-12-31/

2025-12-31 07:43

BEIJING, Dec 31 (Reuters) - China will impose additional tariffs of 55% on beef imports from some countries including Brazil and the U.S. when shipment amounts exceed certain quotas, the commerce ministry announced on Wednesday. The measures will take effect on January 1, 2026, for three years. Sign up here. https://www.reuters.com/world/asia-pacific/china-impose-additional-tariffs-55-some-beef-imports-2026-2025-12-31/