2024-07-09 11:36

S&P 500 notches 35th record closing high this year Powell to speak at 10 a.m. ET Lilly up after data shows its Mounjaro more efficient than Wegovy Futures up: Dow 0.08%, S&P 500 0.22%, Nasdaq 0.37% July 9 (Reuters) - U.S. stock index futures rose on Tuesday, with semiconductor and megacap technology stocks set to prolong Monday's rally as investors awaited comments from Federal Reserve chair Jerome Powell for clues on the central bank's monetary policy path. The S&P 500 (.SPX) New Tab, opens new tab and the Nasdaq (.IXIC) New Tab, opens new tab inched upwards to close at record highs on Monday, lifted by the rally in chip stocks as the Philadelphia semiconductor index (.SOX) New Tab, opens new tab rose to a more than two-week high. That marked the 35th time this year the benchmark index has set a fresh closing record, as sharp gains in AI-linked and other tech shares have kept equity sentiment bright, offsetting the uncertainty around the Fed's rate-cut plans. Intel (INTC.O) New Tab, opens new tab shares leapt 3.2% in premarket trading after jumping over 6% on Monday, while AI-chip favorite Nvidia (NVDA.O) New Tab, opens new tab and Marvell Technology (MRVL.O) New Tab, opens new tab gained over 1% each. Investors will scrutinize Powell's Congressional testimony later in the day to gauge how the central bank is assessing recent economic data that points to a slowdown in the labor market, amid other signs of potential economic weakness. The testimony, followed by questions from lawmakers, is scheduled to start at 10 a.m. ET. "We expect Mr. Powell's comments in the Q&A to be either balanced or slightly dovish, given the resumption in progress on disinflation and signs that economic activity and employment are slowing, albeit gradually," analysts at Unicredit said in a note. Policymakers' own projections show an expectation of just one rate cut this year, but markets have stuck to pricing in 50 basis points of easing, seeing a nearly 74% chance for a 25 bps cut at the Fed's September meeting, according to CME's FedWatch. Those bets have risen from under 50% a month ago. Rate-sensitive megacap stocks Microsoft (MSFT.O) New Tab, opens new tab, Amazon.com (AMZN.O) New Tab, opens new tab, Alphabet (GOOGL.O) New Tab, opens new tab and Meta Platforms (META.O) New Tab, opens new tab were up between 0.3% and 0.5%. "The market is continuing on a bull run and, with the prospects of rate cuts, I believe may continue for a while," said WisdomTree senior economist Jeremy Siegel. Crucial inflation data is also due this week. Thursday's consumer price index and Friday's release of the producer price index numbers will provide insights into whether inflationary pressures in the world's largest economy are easing. Investors are also looking ahead to the start of the second-quarter corporate earnings season this week, with big banks reporting on Friday. Analysts, on average, see S&P 500 companies increasing their aggregate earnings per share by 10.1% in the second quarter, up from an 8.2% increase in the first quarter, according to LSEG I/B/E/S data. At 7:12 a.m. ET, Dow e-minis were up 30 points, or 0.08%, S&P 500 e-minis were up 12.5 points, or 0.22%, and Nasdaq 100 e-minis were up 77.25 points, or 0.37%. Among single movers, Tempus AI (TEM.O) New Tab, opens new tab jumped 5.2% after multiple brokerages including J.P.Morgan and Morgan Stanley initiated coverage of the stock with bullish ratings. Eli Lilly gained 0.4% after a data analysis report published on Monday showed its treatment Mounjaro leads to faster and greater weight loss than Novo Nordisk's obesity drug, Wegovy. Sign up here. https://www.reuters.com/markets/us/futures-higher-megacaps-chip-stocks-rise-ahead-powell-comments-2024-07-09/

2024-07-09 11:11

HONG KONG, July 9 (Reuters) - Nornickel (GMKN.MM) New Tab, opens new tab is in talks with China Copper to form a joint venture that would allow the Russian mining giant to move its entire copper smelting base to China, four sources with knowledge of the matter told Reuters. If the move goes ahead, it would mark Russia's first uprooting of a domestic plant since the U.S. and Britain banned metal exchanges from accepting new aluminium, copper and nickel produced by Russia. It also means Nornickel's copper will be produced within the country where it is most consumed. Nornickel said in April it planned to close its Arctic facility and build a new plant in China with an unnamed partner. Executives at China Copper, owned by the world's largest aluminium producer Chinalco (601600.SS) New Tab, opens new tab, flew to Moscow in June to discuss a possible joint venture, one of the sources said, adding that details of the structure and investment are still under discussion. Nornickel declined to comment. Chinalco and China Copper did not respond to requests for comment via email and phone. Sites being considered in China include Fangchenggang and Qinzhou in the Guangxi region, the two sources said, with another source saying Qingdao in Shandong province was also possible. A decision on a joint venture will be made over the next few months, a fifth source said, adding that Nornickel's Chinese output is likely to be consumed domestically. The new facility will have capacity to produce 450,000 tonnes of copper annually, two of the sources said, amounting to around 2% of global mined supplies estimated at around 22 million metric tons this year. Nornickel, which according to its annual report produced 425,400 tonnes of refined copper last year, processed all of its concentrates in 2023 at the Arctic plant, its only operation producing finished copper suitable for delivery to exchanges. Its relocation plan came shortly after the London Metal Exchange, the world's largest and oldest metals forum, announced new restrictions on its product sales in April. Nornickel (GMKN.MM) New Tab, opens new tab and its metal are not under U.S. or European sanctions, but many western consumers will no longer buy metal of Russian origin since Russia's invasion of Ukraine. Much of the company's metal had been stored on the LME, with more than 40% of LME-stored copper inventory produced in Russia as of the end of May, data showed. Under new rules, LME storage is no longer available for Russian copper produced after April 13. China Copper is the only company interested in forming a joint venture with Nornickel so far, the sources said, as its parent Chinalco is directly managed by China's central government and is authorised to make key decisions involving foreign parties. Nornickel approached other Chinese state-owned copper producers, but many come under the umbrella of provincial governments and consider working with a foreign firm risky without the blessing of central government. The company said in its April statement that the plant should be constructed by mid-2027, and will be supplied by Nornickel with about 2 million tons of copper concentrate annually. Last year, China consumed more than half of the world's output of copper, used in the power and construction industries. Sign up here. https://www.reuters.com/markets/commodities/nornickel-talks-with-china-copper-move-smelting-plant-china-sources-say-2024-07-09/

2024-07-09 11:08

JAKARTA, July 9 (Reuters) - Indonesia deployed a helicopter and hundreds of rescuers on Tuesday as it resumed a search for 35 people still missing after a landslide at an illegal gold mine on the island of Sulawesi killed at least 23, the search and rescue agency said. Torrential rain triggered Sunday's disaster, which engulfed miners and residents in the district of Suwawa in Gorontalo province, more than 2,000 km (1,200 miles) east of Jakarta, the capital. Nearly 400 people assisted by a helicopter were involved in Tuesday's rescue effort, restarted after heavy rain temporarily halted operations on Monday, said search agency official Salama, who uses one name. So far 66 survivors have been plucked from the debris, although efforts were being hampered by thick mud with some rescuers having to walk more than 20 km (12 miles) to reach the disaster site, he said by telephone. Nopri, a miner, told news channel MetroTV that he spent about eight hours buried under about a metre (3 feet) of debris before he got out. He and his companions survived by breathing air flowing in through gaps in the debris, and had some water left to fend off thirst, but they had been forced to wait for rescue, he added. "When we tried to get out, dirt fell back again," he said. "So we were resigned, we just waited for help." Landslides are frequent in Indonesia, with the risk often increased by deforestation and small-scale illegal mining operations in remote districts that are difficult for authorities to regulate. Earlier on Tuesday, the death toll stood at 17, with 45 missing. In May, flash floods and mudslides killed more than 50 people in the province of West Sumatra, following heavy rain. In April, a landslide after high-intensity rains in South Sulawesi killed 18 people. Sign up here. https://www.reuters.com/business/environment/indonesia-search-resumes-after-landslide-kills-17-leaves-dozens-missing-2024-07-09/

2024-07-09 11:07

VIENNA, July 9 (Reuters) - Austria's energy minister has appointed a commission of experts to examine whether Austria can scrap a gas-supply contract between OMV and Gazprom to reduce its dependence on Russia, she said on Tuesday. Leonore Gewessler of the Greens, which is the junior partner in a conservative-led coalition, said in February she wanted to end the contract that runs until 2040. Chancellor Karl Nehammer's conservatives have said they agree Austria needs to move away from Russian gas. Ahead of a parliamentary election due on Sept. 29, however, the two sides of the coalition increasingly have been at odds. In May, the latest month for which data is available, 90% of net gas imports came from Russia. Gewessler said OMV had agreed to grant members of the commission access to the contract, the terms of which are a closely-guarded secret. Her commission, made up of economists and legal specialists, is headed by retired judge and former lawmaker for the liberal Neos Irmgard Griss and law professor Andreas Kletecka. "It is a very significant and important question: isn't there a way to get out of this contract?" Griss told a news conference. "Is there anything you can use legally to get out of this contract?" The commission's initial findings are due to be presented "by autumn" before a final report by the end of this year, Gewessler's ministry said in a statement without specifying whether that could be before the September elections. The far-right Freedom Party (FPO), which rival parties accuse of being dangerously pro-Russian, has led opinion polls. It says it is merely defending Austria's neutrality. Sign up here. https://www.reuters.com/business/energy/austria-appoints-commission-try-ditch-russian-gas-contract-2024-07-09/

2024-07-09 11:04

MOSCOW, July 9 (Reuters) - Russia has become the top exporter of peas to China, accounting for almost half of the country's total imports and overtaking Canada in less than two years after gaining access to the $1 billion market, Russia's Union of Grain Exporters said on Tuesday. The union's data shows Russia exported 1.13 million tons of peas to China in the 2023/24 agricultural season, gaining a 49.1% market share. Canada's share fell to 44.6%, from a dominant position of about 95% of China's pea imports in previous years. The latest pea export data shows how quickly Russia is gaining a larger share of the agricultural products import market in China, especially amid simmering trade tensions between China and Western countries. China is using peas to produce pea protein, which, like other plant-based proteins, is used as an ingredient in many dietary food products that are growing in popularity. The country exports most of its pea protein to markets worldwide. The United States Department of Commerce found China guilty of selling pea protein in the U.S. market at artificially low prices and, on June 27, announced antidumping duties on pea protein imported from China, ranging from 127% to 626%. Russia's pea production has been booming and setting records each year since 2021, but the country lacks its own facilities to produce pea protein. China, a major producer of pea protein, granted Russia access to its market in October 2022. Faced with Western sanctions imposed over the conflict in Ukraine, Russia is seeking to diversify its trade and reorient trade flows towards countries in Asia, the Middle East, Africa, and Latin America. Russia exported over 2 million tons of grain to China since the start of 2024, with barley exports rising five-fold to 371,500 tons, according to data from the Russian agricultural watchdog. Russia is also eyeing a 10% share of China's pork imports within three to four years, according to the country's National Union of Pork Producers. Sign up here. https://www.reuters.com/markets/commodities/russia-overtakes-canada-top-peas-exporter-china-2024-07-09/

2024-07-09 10:51

BEIJING, July 9 (Reuters) - China's industry ministry issued draft rules on Tuesday tightening investment regulations for solar photovoltaic (PV) manufacturing projects as it looks to pare back overcapacity. Projects will need to have a minimum capital ratio of 30% under the new rules. Previously, that minimum applied to polysilicon manufacturing projects while the minimum for other PV projects was 20%. The ministry did not provide a definition of the ratio, which typically refers to the percentage of total investment shareholders invest with their own assets. The regulations also lay out minimum efficiency levels for different types of solar panel technologies. The goal is to limit further expansion of manufacturing capacity, pare back outdated capacity and accelerate sector consolidation, said Jessica Jin, principal research analyst for solar PV at S&P Global Commodity Insights. "The policy direction is to control expansion pace through regulations on quality capacity," Infolink analyst Amy Fang said, pointing to the standards for efficiency as well as for energy consumption. Including plans for new plants announced this year, China by some estimates has enough capacity to meet global demand until 2032. That has led prices to fall below cost level, in some cases, and hurt sector profitability. The rule applies to both new construction and expansion projects. The comment period for the draft rule will run until July 15, according to a notice on the Ministry of Industry and Information Technology's (MIIT) website. MIIT said the aim is to strengthen management of the PV industry and accelerate upgrading and structural adjustments. The draft rule also said that registered companies' annual expenses for research and development and process improvement should be at least 10 million yuan ($1.38 million), and no lower than 3% of overall sales, in line with existing guidelines. ($1 = 7.2725 Chinese yuan renminbi) Sign up here. https://www.reuters.com/sustainability/climate-energy/china-plans-raise-minimum-capital-ratio-solar-pv-manufacturing-30-2024-07-09/