Latest news with #commodityprices
Globe and Mail
3 days ago
- Business
- Globe and Mail
Market Analysis: Monday June 2nd, 2025
Global Markets Canadian Markets Canada's TSX opened higher, driven by a boost in commodity prices as oil and gold rose. The surge in these commodities helped to offset the weakness in global markets. The Bank of Canada is expected to hold its benchmark interest rate steady at 2.75% when policymakers meet on Wednesday. Despite the recent uptick in the Canadian economy, which grew faster than analysts had anticipated last quarter. The Bank of Canada is opting for a cautious approach, awaiting more data before making any adjustments. This cautious stance comes as inflation remains largely stable, and policymakers are wary of the potential ripple effects from global trade disruptions, particularly between the U.S. and China. Analysts expect at least two more interest rate cuts later this year to help stimulate domestic growth, especially as economic uncertainty looms. American Markets U.S. markets dropped following the latest escalation in the trade war with China. The announcement by President Donald Trump to double tariffs on imported steel and aluminum to 50% has intensified concerns that both economies may enter a prolonged period of trade retaliation. This move is seen as a dramatic escalation in an already tense situation, sparking fears that additional tariffs could further disrupt global supply chains and trade flows. The decision to raise tariffs could exacerbate inflationary pressures, especially in sectors reliant on steel and aluminum, and could contribute to slower economic growth, particularly in manufacturing-heavy regions of the U.S. European Markets European stocks also dropped as escalating tariffs dampened investor sentiment. While May saw European shares gain by 4%, June has begun on a much weaker note, with particularly notable losses in the automotive sector. European auto stocks fell by about 2%, as the U.S. tariffs could hit car manufacturers hard. European automakers, many of which rely on global supply chains, could face higher production costs, and this would negatively impact their bottom lines. Automakers like BMW, Daimler, and Volkswagen, which have significant manufacturing operations in the U.S., are particularly vulnerable to the increased tariffs. UK stocks mirrored the downward trend, with traders opting to reduce exposure to riskier assets as new trade uncertainties emerged. The luxury goods sector also took a hit, with companies like Burberry leading the way down, dropping over 1% during trading. These stocks were particularly sensitive to concerns about higher tariffs, as they often rely on international markets for revenue. Increased tariffs could affect their pricing strategies and make products more expensive for consumers, thereby dampening demand. Corporate News Acquisition of Blueprint Medicines Corporation: Sanofi agrees to buy Blueprint Medicines for over $9 billion to strengthen its rare immunology portfolio. Amazon Antitrust Scrutiny: Germany's cartel office expresses concern over Amazon's use of price control mechanisms, potentially breaching regulations for large digital companies. Boeing's Aircraft Orders: Air India in talks with Boeing for a large order, including 200 single-aisle jets. Vietnam Airlines to finalize 50 Boeing 737 MAX jets. Charter Communications Target Price Increase: Bernstein raises target price for Charter Communications to $410, citing anticipated growth in 2025. Citigroup Appoints New China Head: Wenjie Zhang appointed as Citigroup's new country officer for China, following the departure of the former head. CrowdStrike Target Price Increase: JPMorgan raises target price for CrowdStrike to $500, expecting strong growth and profitability. Datagroup SE Acquisition Proposal: KKR proposes to increase its acquisition offer for Datagroup SE to up to 58 euros per share, conditional on shareholder approval. First Quantum Minerals Maintenance Plan: Panama approves the maintenance plan for First Quantum's copper mine, but the site will not reopen. Ford Motor Recall: Ford recalls 29,501 vehicles in the U.S. due to a detached control arm that could cause a loss of steering and control. Gilead and Merck's Breast Cancer Trial: Gilead's Trodelvy, combined with Merck's Keytruda, shows promising results in treating aggressive breast cancer. Hims & Hers Health Layoffs: Hims & Hers Health announces layoffs of 68 employees due to changes in the regulatory environment for weight-loss drugs. IPO of Chime Financial: Chime Financial aims for a valuation of $9.47 billion in its U.S. IPO, targeting to raise up to $832 million. IPO of Voyager Technologies: Voyager Technologies plans to raise up to $319 million in its U.S. IPO, targeting a valuation of $1.6 billion. KKR Increases Offer for Datagroup: KKR makes a conditional offer to increase its bid for Datagroup SE to up to 58 euros per share. Microsoft Investment in Switzerland: Microsoft announces a $400 million investment to expand its AI and cloud computing infrastructure in Switzerland. Moderna COVID-19 Vaccine Approval: Moderna's next-generation COVID-19 vaccine is approved by the FDA for those aged 65 and above, and other high-risk individuals. Pfizer's Breast Cancer Drug Success: Pfizer's experimental drug vepdegestrant significantly delays breast cancer progression compared to AstraZeneca's Faslodex. Tesla Cancels $25,000 EV: Elon Musk denies reports that Tesla canceled a $25,000 EV, pivoting focus to self-driving robotaxis instead. United States Steel Corp Merger Talks: President Trump lauds the potential merger between U.S. Steel and Nippon Steel, but still needs to give the final approval. Volkswagen and Mercedes-Benz in India: Volkswagen and Mercedes-Benz eye India's new electric vehicle policy as they consider expanding into the country's EV market.
Globe and Mail
23-05-2025
- Business
- Globe and Mail
Cocoa Prices Plummet on Improved Prospects for West African Cocoa Crop
July ICE NY cocoa (CCN25) today is down -434 (-4.22%), and July ICE London cocoa #7 (CAN25) is down -455 (-6.41%). Cocoa prices today plummeted to 1-1/2 week lows as forecasts for favorable rain in West Africa are expected to aid cocoa crop development in the world's largest cocoa-growing regions. Meteorologist Vaisala said that moderate showers are expected to continue into next week in the cocoa-growing regions of West Africa. Losses in London cocoa accelerated today when the British pound (^GBPUSD) surged to a 3-1/4 year high. The stronger pound weighed on cocoa futures that are priced in terms of sterling. Signs of ample cocoa inventories are also weighing on prices. ICE-monitored cocoa inventories held in US ports climbed to a 7-3/4 month high Thursday of 2,167,990 bags. On Tuesday, NY cocoa rallied to a 3-1/2 month nearest-futures high as the pace of Ivory Coast cocoa exports has slowed, signaling tighter future cocoa supplies. Monday's government data showed that Ivory Coast farmers shipped 1.58 MMT of cocoa to ports this marketing year from October 1 to May 18, up +10.5% from last year but down from the much larger +35% increase seen in December. Weather concerns in West Africa are also supporting cocoa prices. Despite the recent rains in West Africa, drought still covers more than a third of Ghana and the Ivory Coast, according to the African Flood and Drought Monitor. Cocoa prices have rallied sharply over the past two weeks on quality concerns regarding the Ivory Coast cocoa mid-crop, which is currently being harvested through September. Cocoa processors are complaining about the crop's quality and have rejected truckloads of Ivory Coast cocoa beans. Processors said about 5% to 6% of the mid-crop cocoa in each truckload is poor quality, compared with 1% during the main crop. According to Rabobank, the poor quality of the Ivory Coast's mid-crop is partly tied to late-arriving rain in the region that limited crop growth. The mid-crop is the smaller of two annual cocoa harvests, which typically starts in April. The average estimate for this year's Ivory Coast mid-crop is 400,000 MT, down -9% from last year's 440,000 MT. A rebound in current cocoa inventories is bearish for prices. Since falling to a 21-year low of 1,263,493 bags on January 24, ICE-monitored cocoa inventories held in US ports have rebounded and climbed to a 7-3/4 month high Monday of 2,156,644 bags. Concern that consumer demand for cocoa and cocoa products will wane is weighing on prices on fears that tariffs will boost already-high cocoa prices. On April 10, Barry Callebaut AG, one of the world's biggest chocolate makers, cut its annual sales guidance in the face of high cocoa prices and tariff uncertainty. Also, chocolate maker Hershey Co. recently reported that Q1 sales fell by 14% and said it anticipated $15-$20 million in tariff costs in Q2, which will boost chocolate prices and further weigh on consumer demand. In addition, Mondelez International reported weaker-than-expected Q1 sales and said consumers are cutting back on snack purchases due to economic uncertainty and high chocolate prices. Cocoa prices also have a positive carryover from recent news that showed better-than-expected global cocoa demand. Q1 North American cocoa grindings fell -2.5% y/y to 110,278 MT, better than expectations of at least a -5% y/y fall. Also, Q1 European cocoa grindings fell -3.7% y/y to 353,522 MT, a smaller decline than expectations for a -5% y/y drop. In addition, Q1 Asian cocoa grinding fell -3.4% y/y to 213,898 MT, a smaller decline than expectations for a fall of at least -5% y/y. Smaller cocoa supplies from Ghana, the world's second-biggest cocoa producer, are supportive for prices after Cocobod, Ghana's cocoa regulator, cut its Ghana 2024/25 cocoa harvest forecast in December for the second time this season to 617,500 MT, down -5% from an August estimate of 650,000 MT. The International Cocoa Organization (ICCO), on February 28, said the 2023/24 global cocoa deficit was -441,000 MT, the largest deficit in over 60 years. ICCO said 2023/24 cocoa production fell -13.1% y/y to 4.380 MMT. ICCO said the 2023/24 global cocoa stocks/grindings ratio was 27.0%, a 46-year low. Looking ahead to 2024/25, ICCO on February 28 forecasted a global cocoa surplus of 142,000 MT for 2024/25, the first surplus in 4 years. ICCO also projected that 2024/25 global cocoa production will rise +7.8% y/y to 4.84 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
Reuters
21-05-2025
- Business
- Reuters
India's NALCO says profit doubles as higher aluminium, copper prices boost margins
May 21 (Reuters) - India's National Aluminium Company (NALCO) ( opens new tab, on Wednesday, reported that its fourth-quarter profit more than doubled as higher commodity prices boosted margins. Global prices of base metals, including aluminium, rose sharply over January to March due to lower production in China, falling inventories, and stockpiling by importers due to uncertainties over U.S. tariffs. The benchmark three-month aluminium and copper rose 17% and 10% on-year, respectively, in the quarter. Higher commodity prices tend to raise the selling price of metals. State-owned NALCO's consolidated profit came in at 20.67 billion rupees ($241.7 million) for the January-March period, more than double from a year earlier. Revenue from operations rose 47.2% to 52.68 billion rupees. NALCO's aluminium business, which contributes to over half of overall revenue, grew nearly 33%. It reported a 60% surge in its chemicals business, its second-biggest segment and one that produces caustic soda, hydrochloric acid and sodium hypochlorite. Expenses fell 3.2% to 26.34 billion rupees, mainly due to lower raw material costs. That helped lift its EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin to 50% from 24%. Rival Vedanta's ( opens new tab profit also doubled last quarter, while Hindalco's ( opens new tab earnings rose more than analysts had estimated. ($1 = 85.5060 Indian rupees)
Zawya
15-05-2025
- Business
- Zawya
Abu Dhabi TAQA Q1 net profit slips
Abu Dhabi National Energy Company PJSC, known as TAQA, said its Q1 2025 net profit attributable to shareholders fell 1.5% year-on-year to 2.08 billion dirhams ($566 million) on lower commodity prices and declining output of oil and gas. The integrated utilities company saw revenue rise 3.8% to AED 14.2 billion driven by Transmission and Distribution. TAQA has approved Q1 interim dividend of 0.75 fils per share. (Writing by Brinda Darasha; editing by Seban Scaria)
Globe and Mail
13-05-2025
- Business
- Globe and Mail
Market Analysis: May 13th, 2025
Global Market Update Canadian Markets:Canada's TSX index rose on the back of a move higher in commodity prices, driving strength in the energy and mining sectors. The rise in commodity prices was fueled by renewed demand from key trading partners and expectations of continued growth in the global economy. Recent data indicates that tourism in Canada is poised for a significant surge, driven by favorable travel policies a boost in sentiment and a rebound in consumer spending. U.S. Markets:U.S. stock markets traded mixed, as the Nasdaq index outperformed other major indices, driven higher by technology stocks. Nvidia, in particular, saw substantial gains after announcing a new partnership to supply advanced semiconductor chips to Saudi Arabia, signaling expanded global reach and solidifying its position as a leader in AI and computing technology. April's Consumer Price Index (CPI) report revealed that inflation eased, with consumer prices rising 2.3% year-over-year, down from 2.4% in March and below the expected 2.4%. This is the lowest annual increase since February 2021, marking a slowdown despite the impact of President Trump's tariffs. European Markets:European equities edged higher, bolstered by strong performances in the healthcare and clean energy sectors. Bayer, a pharmaceutical and life sciences company, led the gains after positive news regarding its drug pipeline. Clean energy stocks also rallied, supported by government incentives and investment commitments. However, the European Central Bank (ECB) tempered the market's enthusiasm by cutting growth forecasts, citing the adverse impact of global trade disputes and slower economic activity in key sectors. Despite this, the overall sentiment remained positive. UK Markets:UK stock markets closed slightly lower as concerns about the labor market weighed on sentiment. Unemployment in the UK has surged to the highest level in four years, reflecting economic challenges amid rising inflation and slower-than-expected business investment. The increase in jobless claims and a dip in retail spending have heightened worries about the resilience of the UK economy, leading to cautious trading and minor losses in major indices. Corporate Stock News Alphabet Inc:Google demonstrated new AI tools for software development ahead of its annual developer conference, including an AI agent to aid software engineers and the integration of its Gemini AI chatbot with Android XR glasses. Inc & FedEx Corp:Amazon hired FedEx to manage some large package deliveries, following UPS's decision to reduce its delivery services for Amazon. BlackRock Inc:CEO Larry Fink stated that trillions of dollars are sitting idle in cash due to trade war worries and U.S. economic uncertainty, despite continued investor interest in U.S. assets. Boeing Co:China lifted a ban on accepting Boeing planes after a temporary cut in tariffs between the U.S. and China. Coinbase Global Inc:Shares rose after it was announced that Coinbase will be included in the S&P 500 index, replacing Discover Financial. DaVita Inc:Reported first-quarter profit of $2 per share, beating estimates of $1.95 per share, with revenue increasing by 5% to $3.22 billion. Exxon Mobil Corp & Suncor Energy Inc:Colorado's Supreme Court allowed Boulder's climate change lawsuit against the companies to move forward, rejecting their appeal to dismiss the case. Fox Corp:Barclays raised its target price to $52 from $45, citing industry outperformance. G Mining Ventures Corp:Announced restatement of 2024 financial statements to reflect non-cash adjustments of $32 million, with no impact on cash flow or liquidity. Honda Motor Co Ltd:Forecasted a 59% drop in profit for the current year and delayed plans for an EV supply chain in Canada, citing uncertainty from U.S. tariffs. Inc:Posted a 15.8% rise in quarterly revenue to 301.08 billion yuan, beating the estimate of 289.22 billion yuan, driven by steady consumer demand. Karyopharm Therapeutics Inc:Barclays raised its target price to $10 from $5 after the company's recent stock split. On Holding AG:Raised its annual sales forecast and reported a 43% rise in first-quarter sales, fueled by collaborations and new product launches. Phillips 66:Elliott Investment Management gained support from ISS in its board fight, advocating for changes to improve company structure. Sea Ltd:First-quarter revenue surged by 30% to $4.84 billion, led by growth in e-commerce, entertainment, and financial services. Simon Property Group Inc:Reported higher first-quarter real estate funds from operations (FFO) of $2.95 per share, up from $2.91 a year ago, driven by resilient leasing demand. Suncor Energy Inc:Colorado Supreme Court rejected efforts to dismiss a climate lawsuit by Boulder, allowing the case to move forward. Tencent Music Entertainment Group:First-quarter revenue grew by 8.7% to 7.36 billion yuan, with music subscription revenue up 16.6% to 4.22 billion yuan. TotalEnergies SE:Namibia expects TotalEnergies to make a final investment decision on its Venus discovery by Q4 2026. UnitedHealth Group Inc:Suspended its annual forecast due to high medical costs; CEO Andrew Witty resigned for personal reasons. Venture Global Inc:Forecasted higher-than-expected core profit due to increased LNG demand despite a slight reduction from earlier expectations. Ziff Davis Inc:Barclays lowered the target price to $34 from $48, citing negative organic growth.
