Latest news with #RhiannonHoyle
Hindustan Times
7 days ago
- Business
- Hindustan Times
Lithium Bulls Getting Ahead of Themselves on China Supply Cut
The suspension of a big mine in China may be breathing new life into a depressed global lithium market, but the accompanying rally in shares of lithium producers has run too hard, too fast, analysts say. The halt in production at a CATL lithium mine in China gave lithium stocks a boost, but analysts say stock prices have moved too quickly. Lithium stocks began the week with a bang, chasing prices for the battery metal higher after China's Contemporary Amperex Technology, or CATL, said its license for a mine in Jiangxi province had expired and that production there had been suspended. Shares in some lithium producers climbed by more than 20% on Monday, as investors bet that Chinese supply cuts could extend beyond the CATL mine closure. Beijing is generally seeking to curb excess industrial capacity, an issue that has fueled hyper-competition and worsened deflationary pressures. Yet there remains a lot the market doesn't know about how future lithium output may be affected in China, analysts say. 'The actual supply disruption could be more muted than equities might suggest,' UBS analysts said in a research note. CATL said it would resume production at the site in Jiangxi if its license is renewed. More broadly, the lithium market remains reasonably well supplied, analysts said. Already, some stock investors are cashing in on Monday's rally. Australian producer Pilbara Minerals fell by nearly 1% Tuesday, giving up a little of its 20% gain the day prior. Another miner, Liontown Resources, dropped by 8% following an 18% gain a day earlier. To be sure, a reduction in Chinese lithium supply could mark a turning point in a market that has been weighed by a global glut. Prices for lithium have fallen by as much as 90% since notching a record high in 2022, a rally that sparked a wave of new lithium investments and led to the current oversupply. The UBS analysts have raised their forecasts for lithium prices on expectations of supply disruptions in China. There appears to be a recovery on the horizon, they said. Still, stock prices have moved too quickly in response, said the analysts. Others agree. The rally is underpinned by bullish sentiment about China's campaign against unhealthy competition, rather than industry supply and demand fundamentals, Macquarie analysts said in a note. 'If the production suspension expectations are not met, sentiment could quickly reverse,' and 'a market repricing demand and supply again could result [in a] correction in lithium equity names,' they said. Write to Rhiannon Hoyle at
Wall Street Journal
05-08-2025
- Business
- Wall Street Journal
Gold Seen Stuck in Range as Investors Await Fed's Next Move
2327 GMT—Gold edges higher early in Asia, supported by growing expectations of a U.S. rate cut next month. Still, 'without a clear dovish shift from the Fed, which has yet to materialize, we expect the metal to trade range-bound,' Sucden Financial says in a daily note. Lower rates reduce the opportunity cost of holding gold, which pays no interest or dividends. Spot gold is up 0.1% at $3,378.35/oz. Spot silver is flat at $37.40/oz. (
Wall Street Journal
22-06-2025
- Business
- Wall Street Journal
Brent Crude-Oil Futures Rise as Markets Watch Strait of Hormuz
2230 GMT — Brent crude jumps early in Asia, reflecting a market on edge about Iran's threat to disrupt shipping through the Strait of Hormuz. Iranian politicians have repeatedly threatened the strait, which handles roughly one-fifth of the world's petroleum as well as massive cargoes of natural gas. Any disruption would send oil prices soaring. Front-month Brent is up 3.1% at $79.40 a barrel. ( @RhiannonHoyle)
Wall Street Journal
03-03-2025
- Business
- Wall Street Journal
Australian Shares Set to Fall as Trump Confirms Tariffs
2201 GMT – Australian stocks are poised open in the red, with ASX futures down by 0.9% ahead of the bell. The Australian market is taking cues from Wall Street, where stocks dropped after President Trump said he would go ahead with 25% tariffs on Canadian and Mexican goods. In the U.S., declines were broad-based, with 23 of the 30 stocks in the Dow Jones Industrial Average and seven of the 11 sectors in the S&P 500 falling. The resources-rich Australian market has mixed pressures from commodity prices, with iron ore and oil weaker but gold and copper up. Before the open, gold-mining giant Newmont said it had completed the previously disclosed sales of three noncore operations. ( @RhiannonHoyle)
