2023-12-04 13:15

Copyrighted Image by: Reuters Copper prices on the London Metal Exchange (LME) experienced a decline today, with a 1.3% drop to $8,500 per metric ton. This downturn is attributed to the recent strength of the US dollar and an increase in stocks within LME warehouses. The metal, often regarded as an indicator of economic health, has come under close observation following these developments. Last week, copper reached a four-month high at $8,640 but has since faced challenges due to various market factors. Notably, LME stockpiles have swelled to 174,900 tons compared to mid-year figures. This growth in inventory is occurring alongside mixed signals from China's November factory activity results among other factors. Additionally, the proportion of cancelled warrants in the LME has seen a significant rise, hinting at possible future withdrawals from inventories. As the US dollar strengthens, the cost for holders of other currencies increases, leading to a dampened demand for dollar-priced metals such as copper. This comes after recent supply concerns had momentarily supported copper prices. On Friday, First Quantum Minerals (OTC:FQVLF) Ltd suspended its annual production guidance for its Cobre Panama mine due to ongoing contract disputes with the government and initiated arbitration proceedings. Despite these operational challenges contributing to supply constraints, the price of copper still fell by 0.4% to $8,579.50 per ton today due to the broader market conditions. In response to these supply uncertainties and reflecting market tightness, global miners and Chinese smelters have agreed on lower treatment and refining charges (TC/RCs) for copper concentrate for 2024. This marks the first decrease after three years of stability in TC/RCs. Correspondingly, the Shanghai Futures Exchange's January copper contract earlier saw an uptick of 0.8%, closing at 68,880 yuan ($9,658.15) per ton amidst these developments. https://www.investing.com/news/commodities-news/copper-prices-dip-on-stronger-dollar-and-lme-stockpile-increase-93CH-3248754

2023-12-04 12:52

Copyrighted Image by: Reuters. In a significant move to boost Bitcoin literacy, Trezor has launched the Trezor Academy during the Africa Bitcoin Conference in Accra today. The academy aims to expand its educational program to over ten African nations by 2024, following its success in Ghana and Nigeria. This initiative is part of a broader effort to increase Bitcoin adoption for payment systems and microfinancing across the continent. The Trezor Academy is supported by proceeds from the sales of Trezor's limited edition Safe 3 wallet, which contributes a portion of its revenue towards these educational projects. This strategic move underscores Trezor's commitment to fostering a deeper understanding of cryptocurrency technologies and their potential benefits in the region. Coinciding with the academy's launch, the Bitcoineta campaign began on Friday under the sponsorship of Trezor and in collaboration with Bitcoin Cowries. A Land Rover embarks on an educational journey through various West African states, promoting local initiatives through school and community education. The campaign is gaining traction on social media platforms, where it shares progress through video blogs and posts for broader engagement. Trezor's CEO Matej Zak highlighted the importance of Bitcoin in transforming financial transactions within Africa. He also mentioned plans for in-person meetups hosted by local experts to further promote the adoption and understanding of Bitcoin. https://www.investing.com/news/cryptocurrency-news/trezor-launches-bitcoin-education-initiative-across-africa-93CH-3248730

2023-12-04 12:50

Copyrighted Image by: Reuters. ABU DHABI - At the Fortune Global Forum in Abu Dhabi today, Jenny Johnson, CEO of Franklin Templeton, announced the asset management firm's strategic move to integrate blockchain technology into its financial services. The firm, which oversees assets worth $1.3 trillion, has submitted an updated S-1 proposal for a Bitcoin Exchange-Traded Fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The proposed ETF is designed to be listed on the New York Stock Exchange's Arca platform and will utilize both in-kind and cash mechanisms to meet regulatory compliance. Johnson highlighted the company's focus on leveraging blockchain's potential beyond Bitcoin, particularly for tokenizing financial transactions to enhance efficiency and cost-effectiveness. The CEO also shared her personal investment stance, revealing she holds digital currencies including Ethereum and Bitcoin. The SEC's request for public feedback on Franklin Templeton's September application for a Bitcoin spot ETF signals a constructive dialogue between regulators and the financial industry regarding cryptocurrencies. This move by the SEC is seen as a step toward embracing digital assets within established markets. In the broader context of blockchain innovation, Johnson pointed to recent developments such as Cardano’s AI chatbot Girolamo and Ethereum co-founder Vitalik Buterin’s concept of SoulBound Tokens. These advancements illustrate the convergence of blockchain technology and artificial intelligence, suggesting a future where blockchain extends beyond traditional financial applications. Franklin Templeton remains agile in navigating the dynamic landscape of blockchain and digital assets while maintaining a positive outlook on the transformative impact a Bitcoin ETF could have on its market position. https://www.investing.com/news/cryptocurrency-news/franklin-templeton-eyes-blockchain-integration-refiling-bitcoin-etf-93CH-3248728

2023-12-04 05:11

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies steadied after strong gains on Monday, while the dollar nursed recent losses amid growing conviction that the Federal Reserve was done raising interest rates, and will begin cutting them in early-2024. The Japanese yen was one of the biggest beneficiaries of this notion, with the currency having recovered sharply from one-year lows in recent weeks on the prospect of easing pressure from higher U.S. interest rates. The yen steadied around 146.76 to the dollar, and was close to its strongest level since mid-September. Focus was also on an inflation reading from Japan's capital, due on Tuesday, for more potential cues on the Bank of Japan’s plans for monetary policy. The Chinese yuan was flat on Monday after recovering sharply against the dollar in recent weeks, with a series of strong midpoint fixes from the People’s Bank offering support. But concerns persisted over China’s economy, especially after a string of weak purchasing managers index readings for November. Focus this week is on trade data for the month, although the trend is expected to remain weak amid dwindling exports. The South Korean won fell 0.5% after strong gains over the past month, while the Indian rupee was flat, largely ducking a rally in domestic stocks after the ruling BJP party won three key state elections. A Reserve Bank of India rate decision was also on tap this week, with the bank set to keep rates on hold. The Australian dollar fell 0.3% with the Reserve Bank widely expected to keep interest rates on hold when it meets on Tuesday. The RBA had raised rates by 25 basis points in November, but had struck a largely dovish tone on future rate hikes. Dollar steadies near three-month low, Fed rate cut bets grow The dollar index and dollar index futures rose marginally on Monday, but remained within sights of lows last seen in early-August. Fed Chair Jerome Powell struck a seemingly less hawkish tone during two addresses on Friday, with markets betting that his comments on maintaining a balance between tight monetary policy and a soft economic landing heralded a definitive end to the Fed’s rate hike cycle. While Powell still warned that rates will remain higher for longer, traders ramped up their expectations for a less hawkish Fed in the coming months. Markets are pricing in an over 90% chance the Fed will keep rates on hold when it meets later in December, and an over 60% chance the bank will begin trimming rates by March 2024. But these bets are largely contingent on inflation and the labor market, with nonfarm payrolls data due Friday set to offer more cues on the latter. Still, the prospect of a less hawkish Fed drove stellar gains in Asian currencies through November, while the dollar plummeted. https://www.investing.com/news/forex-news/asia-fx-muted-dollar-steadies-with-fed-rate-cuts-in-focus-3248292

2023-12-04 02:36

Investing.com-- Bitcoin temporarily climbed above $42,000 on Monday, aided by growing optimism over a possible interest rate cut by the Federal Reserve next year and the potential upcoming approval of a spot exchange-traded fund for the token. By 05:54 ET (10:54 GMT), the world’s biggest cryptocurrency had risen 6.2% to $41,984.7, extending gains after a three-week rally. Bitcoin had hit $40,825.0 earlier in the day -- its highest level since May 2022. The increase marks an acceleration in an ongoing rebound in the digital asset following an over year-long slump triggered by the failure of the TerraUSD stablecoin network. Ethereum, the world's second-biggest cryptocurrency, had also jumped by 4.5% to $2,264.8. Crypto exchange Coinbase (NASDAQ:COIN) surged by more than 8% in premarket U.S. trading. Digital coin miners Marathon Digital (NASDAQ:MARA) and Riot Platforms (NASDAQ:RIOT) soared by over 10%. Expectations that the Federal Reserve may reduce interest rates earlier than anticipated next year have been a key point of support for crypto prices, fueling a drop in the dollar and boosting the appeal of risk assets. Some market participants interpreted closely-watched comments from Fed Chair Jerome Powell last week as decidedly less hawkish. Although Powell argued that officials could unveil further rate hikes to corral inflation, he noted that policy was already in "restrictive territory." Traders have begun to price in a more than 95% chance that the U.S. central bank will keep rates on hold in December, and an over 50% chance it will cut rates by as soon as March 2024, according to Investing.com's Fed Rate Monitor Tool. The Fed is set to meet on Dec. 12 and 13. But the pace of U.S. price growth remains well above the Fed’s 2% annual target, while the labor market also appears strong. Nonfarm payrolls data due this Friday is expected to provide more cues on the latter. Recent history suggests that the prospect of lower interest rates could bode well for Bitcoin. In 2021, an era of easy monetary policy and increased speculative trading helped lift the token to a record high of nearly $69,000. It then fell drastically as borrowing costs rose and the crypto industry was wracked with a series of bankruptcies and regulatory crackdowns. High-profile scandals have also rocked the sector, with one of the more notable cases involving Binance -- the world’s largest crypto exchange. The group pleaded guilty to Department of Justice allegations of money laundering in November, and now faces an over $4 billion fine. Former Chief Executive Changpeng Zhao pleaded guilty to criminal charges as well and resigned. Elsewhere last month, Sam Bankman-Fried, the former head of rival crypto exchange FTX, was convicted of defrauding investors of billions of dollars, bringing a close to a trial that threatened to undermine the industry's broader reputability. ETF speculation bolsters Bitcoin Yet Bitcoin has more than doubled in value this year, with most of the gains coming in recent weeks as investors eyed a possible green light by U.S. regulators for a batch of ETFs that directly tracks the price of the cryptocurrency. Several top asset managers, including BlackRock (NYSE:BLK) and Invesco, have already filed applications with the U.S. Securities and Exchange Commission (SEC). Analysts at Alliance Bernstein said in a note to clients that should these be approved, they "expect a strong marketing blitzkrieg, that would elevate BItcoin as a recognised household asset, just like people are aware of gold." But given that products like the Grayscale Bitcoin Trust (BTC) (OTC:GBTC), which tracks the price of Bitcoin futures, saw waning investor interest over the past year, doubts have persisted over just how much institutional capital a spot ETF could draw in. The SEC has given no indication that it intends to approve a spot ETF in the near-term, although Grayscale has won a crucial legal battle against the regulator to approve its application for a spot ETF. https://www.investing.com/news/cryptocurrency-news/bitcoin-clears-40k-a-dollar-on-dovish-fed-bets-etf-hype-3248258

2023-12-04 01:51

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled lower Monday, as ongoing doubts over whether recent OPEC+ output cut agreements will curb growing supply offset potential disruptions in the Middle East amid looming geopolitical risks. By 14:30 ET (19:30 GMT), the U.S. crude settled 1.4% lower at $73.04 a barrel and the Brent contract dropped 1.1% to $78.03 a barrel. Red Sea attacks see resurgence in Middle East supply concerns The Pentagon said over the weekend that multiple U.S. military and commercial vessels were attacked in the Red Sea, while Yemen’s Houthi Group claimed it had carried out drone and missile attacks on Israeli vessels in the area. Concerns surrounding the Israel-Hamas war had steadily trickled out of markets over the past month, as the conflict had so far caused little disruptions in Middle Eastern supplies. But the new attacks could herald a potential spillover of the conflict, drawing in the U.S. and other Middle Eastern powers and potentially disrupting supplies at time when a week-long truce between Israel and Hamas collapsed, sparking a resumption in the war. "Crude oil price near USD80/bbl looks underpriced as market is in deficit and inventories are low. Further, geopolitical risks are still looming, a wider conflict in the Middle East will be a potential downside supply risk," ANZ Research said in a note. "If the US tightens its sanctions against Iran and Russia and OPEC+ voluntary cuts go as per plan, this severely tighten the market balance. " Skepticism over OPEC’s voluntary cuts continues to weigh The crude market fell around 2% last week after the Organization of the Petroleum Exporting Countries and allies, including Russia, a group known as OPEC+, agreed new additional cuts of a little under 900 million barrels a day in the first quarter of 2024. However, these cuts were voluntary in nature, raising doubts about whether or not producers would fully implement them as they still require the funds generated by the sale of these barrels. “The announcement from the OPEC+ meeting failed to convince the market about a tighter oil balance in the immediate term,” said analysts at ING, in a note. “Pessimism over compliance with the new deal remains one of the major concerns for the market for now.” https://www.investing.com/news/commodities-news/oil-prices-steady-amid-rate-cut-bets-middle-east-risks-3248256