Copper Holds Gains as Investors Await US, China Data This Week
The metal moved between narrow gains and losses on the London Metal Exchange, after climbing more than 1% on Tuesday as US inflation data bolstered bets for the Federal Reserve to cut interest rates in September. Now, traders are looking to US retail sales numbers as well as key economic data from China on Friday.
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Yahoo
13 minutes ago
- Yahoo
Bitcoin drops 3% after touching record highs as crypto rolls over
Bitcoin (BTC-USD) retreated more than 3% from its record highs on Thursday after hotter than expected inflation soured expectations of a large rate cut in September and after Treasury Secretary Scott Bessent signaled the US won't be purchasing or selling its bitcoin reserve. On Wednesday, bitcoin touched an all-time high past $123,500 per token in anticipation of looser monetary policy and corporate purchases. Crypto rolled over after July's producer price index came in much higher than expected. During an interview with Fox Business this morning, Bessent said US reserves of bitcoin amount to around $15 billion or $20 billion at today's prices. "We've also started to get into the 21st century — a bitcoin strategic reserve. We're not going to be buying that, but we are going to use confiscated assets and continue to build that up. We're going to stop selling that," he said. Expectations of Fed rate cuts, coupled with heavy purchases from corporate treasurys, have driven up the price of the asset this year. The cryptocurrency has gained 25% year to date and has rallied roughly 57% since the April lows. Inflows into spot exchange-traded funds, along with purchases from public companies copying the blueprint of software firm-turned-bitcoin juggernaut Strategy (MSTR) by adding bitcoin to their balance sheets, have been key drivers of this year's token rally. Strategists also point to the Trump administration's pro-crypto stance as a major catalyst. "The administration is pushing crypto. They are pushing bitcoin. Bitcoin is the lead dog in the crypto market," Tom Essaye, founder of Sevens Report Research, told Yahoo Finance earlier this week. "So is it short-term a little frothy? Sure," he added. "But longer term, there are some fundamental changes here that I think are bullish for it, and we'll send it much higher in the future." Last week, President Trump issued an executive order directing the Labor Department to explore allowing 401(k) plans to hold cryptocurrencies and other alternative assets, a move that could significantly expand retail access to crypto. The price surge also comes as US equities have notched all-time records on expectations the Federal Reserve will cut interest rates in September, and that Trump's next Fed chair pick will likely favor looser monetary policy. Meanwhile, ethereum (ETH-USD) prices also retreated more than 3% on Thursday after rising to near record levels as Wall Street grows increasingly bullish on the world's second-largest cryptocurrency by market cap. Companies have been adding ether to their balance sheets as a way to gain exposure to the tech infrastructure behind decentralized finance and digital assets, such as stablecoins. This week, Bitmine Immersion Technologies (BMNR), an ethereum treasury company, announced plans to sell up to another $20 billion worth of stock to boost its holdings of the cryptocurrency. "We have stated multiple times we believe Ethereum is the biggest macro trade over the next 10-15 years," Fundstrat head of research Tom Lee, who also serves as chairman of Bitmine, wrote in a note Wednesday. Lee noted the majority of Wall Street crypto projects and stablecoins, or digital tokens backed by assets like the US dollar, are being built on the ethereum infrastructure. Ether, the native token of ethereum, is up more than 50% since the GENIUS Act legislation, which creates guardrails for the stablecoin industry, was passed last month. Additionally, the Securities and Exchange Commission's recent "Project Crypto" announcement, an initiative to modernize the agency and establish clear regulations around the digital asset industry, has also fueled the rally in ethereum. Fundstrat sees ETH hitting prices moving as high as $15,000 by year-end. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 minutes ago
- Yahoo
Bitcoin sinks following hotter-than-expected inflation print, Bessent comments on strategic reserve
Bitcoin (BTC-USD) retreated more than 3% from its record highs on Thursday after hotter-than-expected inflation soured expectations of a large rate cut in September and Treasury Secretary Scott Bessent signaled the US won't be purchasing bitcoin for its strategic reserve. On Wednesday, bitcoin touched an all-time high past $123,500 per token in anticipation of looser monetary policy and corporate purchases. Crypto rolled over after July's producer price index came in much higher than expected. During an interview with Fox Business, Bessent said US reserves of bitcoin amount to around $15 billion or $20 billion at today's prices. "We've also started to get into the 21st century — a bitcoin strategic reserve. We're not going to be buying that, but we are going to use confiscated assets and continue to build that up," he said. Expectations of Fed rate cuts, coupled with heavy purchases from corporate treasurys, have driven up the price of the asset this year. The cryptocurrency has gained 25% year to date and has rallied roughly 57% since the April lows. Inflows into spot exchange-traded funds, along with purchases from public companies copying the blueprint of software firm-turned-bitcoin juggernaut Strategy (MSTR) by adding bitcoin to their balance sheets, have been key drivers of this year's rally. Strategists also point to the Trump administration's pro-crypto stance as a major catalyst. "The administration is pushing crypto. They are pushing bitcoin. Bitcoin is the lead dog in the crypto market," Tom Essaye, founder of Sevens Report Research, told Yahoo Finance earlier this week. "So is it short-term a little frothy? Sure," he added. "But longer term, there are some fundamental changes here that I think are bullish for it." Last week, President Trump issued an executive order directing the Labor Department to explore allowing 401(k) plans to hold cryptocurrencies and other alternative assets, a move that could significantly expand retail investor access to crypto. The price surge also comes as US equities have notched all-time records on expectations the Federal Reserve will cut interest rates in September, and that Trump's next Fed chair pick will likely favor looser monetary policy. Meanwhile, ethereum (ETH-USD) prices also retreated more than 3% on Thursday after rising to near record levels as Wall Street grows increasingly bullish on the world's second-largest cryptocurrency by market cap. Companies have been adding ether to their balance sheets as a way to gain exposure to the tech infrastructure behind decentralized finance and digital assets, such as stablecoins. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
16 minutes ago
- Business Insider
Switzerland is eyeing cuts to its F-35 stealth fighter order amid price battles with the US
Switzerland is considering reducing its F-35 order in response to price negotiations with the US. It said the US government had abandoned a fixed price plan, leaving Switzerland vulnerable to inflation and tariffs. Some US allies and partners have questioned the F-35 over Trump's treatment of allies. Switzerland said it might scale back its order of US-made F-35 fighter jets after failing to fix the price in its negotiations with the White House. Amid shifts in US attitudes toward allies and partners, some Western nations have questioned the jet and, in at least one case, even rejected the fifth-generation fighter for European alternatives. Switzerland still wants the F-35, considering its high-end capabilities, but it may cut its order. Switzerland said that attempts to negotiate a fixed price for the F-35A fighter jet, made by the US's Lockheed Martin, were unsuccessful, with higher costs expected as a result. Switzerland may now order fewer F-35s, the defense minister, Martin Pfister, said in a press conference on Wednesday, per Swiss newspaper Tages-Anzeiger. He said that other options include asking parliament for another loan for the jets and deducting operating costs from the purchase price, among other possibilities. Switzerland committed to buying 36 F-35As after signing a contract in 2022, with the jets expected between 2027 and 2030. However, Pfister said the defense department must now examine whether that figure is really what the country needs. Switzerland's government explained in a press release on Wednesday, that while options were on the table after failed negotiations with the US, Switzerland remains committed to procuring F-35As, citing "a significant technological advantage over other aircraft" that would help "to protect Switzerland from airborne threats." Pfister said that Switzerland must continue the procurement of the jets, or else it won't have the defense it needs by the early 2030s. The Swiss government described the US government's actions in negotiations as an "abandonment of the fixed price." It previously viewed the price as fixed at what is now $7.2 billion. In a situation without a fixed price where the cost is subject to volatility as a result of inflation and tariffs, Switzerland is unable to determine the total price of its procurement. It says that the additional costs for procuring the jet could be more than $1.6 billion, which would represent a tremendous cost growth. The government said that the unsuccessful negotiations were with senior White House representatives and that there was a conversation between Pfister and US Secretary of Defense Pete Hegseth. It said "the discussions clearly showed that the USA is not prepared to deviate from its position." The Swiss defense department was thus instructed to consider other options by the end of November, with the government saying the department "will examine whether current air defence requirements still correspond to the principles on which the evaluation of the F-35A was based." Lockheed Martin told Business Insider in a statement that "since foreign military sales are government-to-government transactions, questions about F-35 cost, schedule and procurement are best addressed by the armasuisse and US government." Switzerland is a neutral country, and while it's not a member of NATO, it is seen as a partner nation and has deepened its cooperation with the alliance since Russia's invasion of Ukraine. While it remains committed to the F-35, some US allies are no longer sure. Some wavering on the F-35 NATO member Spain said last week that it would not buy the F-35 and would instead focus on European alternatives. The country's decision came after some other allies publicly questioned the fighter jet amid Trump's treatment of allies, which has included criticizing the NATO alliance and European defense spending. Trump's approach to the alliance and questions of US reliability, amid growing security concerns, has sparked a new focus within Europe on investing in the continent's defense firms. Politicians across all of Switzerland's political parties said earlier this month that the country should withdraw or reconsider its planned purchase of F-35s in response to Trump's tariffs. So far, Spain is the only ally to formally step back from the jet, which is used by 19 US partner nations. The F-35 is a top-class fifth-generation fighter that many nations want, and any country that steps away from it after already committing to it would likely encounter huge costs and logistical issues, among other challenges. The jet's widespread use among allies and partners is also an advantage. It lets militaries operate together more easily, something that could be key in a conflict on the continent. The Swiss government noted that its desire for the jet is driven by how widespread F-35 usage is across Europe. But Europe's view of the US has changed. When asked on Wednesday if the US is seen as a reliable partner for future arms purchases, Pfister responded by saying that they are not reliable when it comes to tariffs. The depth of that concern is unclear.
