The end of net-zero targets

Major banks pull out from net-zero initiatives as energy demand soars

At start of a new year, we normally take a step back from our weekly focus on the granular details of specific metals, individual policies, etc, and take a macro view, examining the bigger picture and underlying trends.

At the start of 2023, we projected the world had reached peak green and that “for the energy transition, 2024 will be a year of retrenchment” with:

  • further pushback on net-zero deadlines
  • increased tariffs vs China
  • nuclear power will continue to rise as a priority
  • a shift back towards traditional fossil fuel energy

This year we go further.

2025 will be a make-or-break year for many geopolitical gambits played over the past 30 years, but we want to focus on a single one projection for 2025:

The end of net-zero targets.

The end of net-zero targets will have a significant impact across the energy and mining industry.

And it has already started with major banks, including Morgan Stanley, Goldman Sachs, JP Morgan, CitiGroup, Bank of America and Wells Fargo, announcing they have left the Net-Zero Banking Alliance; and BlackRock announcing they have left the Net Zero Asset Managers initiative, one of the world’s biggest climate-investor groups, which has now announced its suspended activities.

There are five main factors driving this trend:

  • AI
  • high energy costs in Europe
  • China (and coal)
  • Interest Rates, higher for longer
  • Donald Trump

Net-zero targets

The Paris Agreement is a legally binding international treaty on climate change, adopted by 196 Parties at the UN Climate Change Conference (COP21) in Paris, France, on 12 December 2015.

Its primary goal is to hold “the increase in the global average temperature to well below 2°C above pre-industrial levels”, with global leaders stressing the need for greenhouse gas emissions to peak before 2025 and decline 43% by 2030.

The nationally determined contributions to meet net-zero targets include:

  • European Union (EU)’s legally binding target of climate neutrality by 2050, with an interim target of 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels
  • the US rejoined the Paris Agreement in 2021 and has pledged (not legally-binding) to reduce net greenhouse gas emissions by 50-52% in 2030 and reach net-zero by 2050
  • China has pledged (not legally-binding) to be carbon neutral by 2060
  • India has pledged to reach net-zero by 2070

These net zero targets may not be “officially” removed from legislation, but their practical relevance is likely to critically diminish as countries struggle to meet ambitious climate goals amidst economic and political pressures.

Artificial Intelligence (AI)

For the first time in decades, demand for energy is increasing exponentially. The reason is energy demand for data centers to run Artificial Intelligence (AI), estimated to increase 160% by 2030. Data centers worldwide currently consume 1-2% of overall power, but this percentage is expected to increase 3-4% by 2030.

What sets this growth in AI apart is that it is driven by consumer and business demand on the tech corporations, facilitated by governments, all who want to maintain their global cutting edge.

For example, Microsoft expects to spend US$80 billion on AI-enabled data centers in 2025. And, coinciding with the rise in AI energy demands, in July 2024, Google stopped claiming its operations are carbon neutral after it ended the purchase of carbon offsets.

McKinsey forecasts generative AI has the potential to generate value equivalent to US$2.6 trillion to US$4.4 trillion in global corporate profits annually.

High energy costs in Europe

Since Russia’s invasion of Ukraine, and the subsequent restrictions on natural gas exports from Russia (most recently with the halt of gas exports through Ukraine), Western Europe has been significantly impacted by volatile energy prices – a problem exacerbated by renewable energy investments that do not provide baseload electricity.

The result is that Europe is paying high electricity prices and seeing a wave of heavy industry leaving the region.

For example, the German economy is facing the longest recession since World War II, primarily due to high energy prices. And, in the UK, in January 2025, the country’s largest gas storage site warned only a week of natural gas supply remained after wind capacity across the continent fell in winter weather as the country came within a “whisker” of power blackouts.

There are a lot of dynamics behind the decline of Europe but, to put quite starkly: the countries that are benefiting from the de-industrialization of Europe (the US, China, India) as industry looks for a new home, need more energy to meet the new demand — and see the decline of the European economy due to its vulnerability to high energy costs as a warning.

China (and coal)

October 1, 2024, was the first day in nearly 150 years that power plants in the UK did not burn any coal to generate electricity.

But, China is burning record amount of coal, despite the country’s pledge to reduce greenhouse gas emissions and its investment in renewable energy — accounting for more than 50% of global coal demand.

The IEA has revised up its forecast for China’s coal demand, expecting it to hit a record every year until at least 2027.

And it’s not just in China. Global operating coal capacity grew by 2% in 2023, with a small increase from countries other than China, for the first time since 2019; in particular, in Indonesia, India, Vietnam, Japan, Bangladesh, Pakistan.

As demand for cheap energy increases in China (and elsewhere) with AI and manufacturing demands, an economic slowdown, as well as geopolitical tensions and tariffs from the US, coal consumption will be a very difficult stop.

Interest rates

Higher interest rates disproportionately affect renewable energy projects (and nuclear power) due to the high capital intensity and low returns of the projects, despite government subsidies.

For example, analysis by Wood MacKenzie shows that a 2%-point increase in the risk-free interest rate pushes up the levelized cost of electricity (LCOE) by as much as 20% for renewables. The comparative increase in LCOE for a combined-cycle gas turbine plant is only 11%.

In North America and Europe the cost of debt for renewables was x4 higher in 2023 than in 2020, driven by increases in base interest rates.

The zero interest-rate policies deployed across the US, EU and Japan, from 2008 to 2022 saw some of the highest investments in renewable energy — hitting a record US$358 billion H1 2023, a 22% increase of H1 2022.

Despite the 25 basis point interest rate cut by the Federal Reserve on November 7, 2024, many other countries did not follow, for example, the Bank of England voted to hold rates at 4.75% in December 2024.

Barring a global financial event, we expect interest rates to hold, if not rise, over the next year or more. We are not alone: the Bank of America has revised its forecast, stating the rate cutting cycle has ended, with the next move is up, not down. Goldman Sachs and JP Morgan have also revised their expectations to reduct the number of cuts expected this year.

With all the other headwinds facing the industry, high interest rates will significantly impact investment into renewable energy.

Donald Trump

Donald Trump has pledged to redirect financing for what he described as “the green new scam” to roads, bridges and other infrastructure, promising to “drill, baby drill.”

In 2017, Trump pulled the US out of the Paris Agreement and his re-election campaign promised to do the same again in a second term.

And it’s not just Trump with concerns about net zero targets.

According to Pew Research, 87% of Republicans are concerned a transition away from fossil fuels and toward renewable energy sources would be very or somewhat likely to lead to unexpected problems for the country. Only 12% of Republicans and Republican leaners say dealing with climate change should be a top priority for the president and Congress.

As we have outlined in our recent analysis — Trump wants to make mining American again — on the significance of the re-election of Trump for the energy transition and mining, there are significant complexities to any agenda to completely dismantle the energy transition in the US.

For example, 92% of investments from the Inflation Reduction Act went primarily into Republican states.

However, the priorities of the new Trump administration for the next four years are clear.

Geopolitical tensions between the US and China will also disrupt energy transition supply chains.

Trump has pledged 60-100% tariffs on imports from China (Biden already put a 100% tariffs on EVs from China) — a move supported by many in the industry, for example, a US graphite association has called for 920% tariffs on Chinese imports.

We expect the rollout of tariffs to develop into a highly complex negotiation between the US and the rest of the world, especially China. But, ultimately, we believe the tariffs will (continue to) pull more investment into the US (especially the dollar).

Supply chains, already vulnerable after Covid, the Ukraine war, and escalating export restrictions between the US and China over semiconductors — are expected to intensify, especially in the first half of the year.

China has already responded, with restrictions on critical minerals such as gallium, germanium and antimony, as well as possible lithium processing technology and graphite.

With China dominating much of the critical mineral mining and processing supply chain, any tariffs by Trump may accelerate the move across the West to onshore/friend-shore supply chains but, at least in the short-term, there will be significant disruption across critical mineral supply and renewable energy exports.

Conclusion

This is not the end of net-zero or the renewable energy industry, in fact, far from it.

We expect significant investment across the electric battery and electric vehicle sectors, as well as nuclear energy and some of renewable energy sectors (in particular solar, less so wind energy).

Demand for critical minerals to build out the renewable energy sector will therefore continue to grow, but there will be new dynamics including longer-term horizons, splitting of supply chains between the US and China, and new priority demands from industries such as data centers.

However, a combination of urgent, massive demand for new energy supply to power AI, just as costs are rising across the renewable sector — as well as general living costs across the world — mean governments, companies and voters have other increasingly urgent priorities.




Investor.Coffee (11.19.2024): Putin has Investors Eyeing Gold for Safety

Good morning Investor.Coffee Readers!

Canadian and U.S. markets are poised for a cautious open today as geopolitical tensions escalate. Russian President Vladimir Putin’s recent updates to nuclear doctrine have shifted investor sentiment toward safe-haven assets, including gold and the U.S. dollar. Canadian investors are also anticipating domestic Consumer Price Index (CPI) data for October, expected to provide clarity on the Bank of Canada’s potential interest rate cuts next month.

Australian and UK Markets

The Australian Securities Exchange (ASX) opened with modest gains, reflecting optimism in the energy and mining sectors. The UK’s FTSE futures indicate a higher opening, bolstered by improved earnings sentiment and consumer confidence ahead of upcoming inflation data releases.

Europe and Asia Markets

Asian indices exhibited mixed performance, with Japan’s Nikkei climbing on robust gains in semiconductor stocks, while Chinese markets remained subdued amid ongoing regulatory uncertainties. European markets are set to open higher, following upward movements in DAX and Euro STOXX futures, signaling cautious optimism among investors.

Notable Company Highlights

Alphabet Inc. (NASDAQ: GOOGL)
Yesterday, reports emerged that the U.S. Department of Justice plans to request a judge to mandate the sale of Alphabet’s Chrome browser as part of a broader antitrust remedy. Google criticized the proposal as detrimental to innovation and consumer interests, with a final ruling expected by mid-2025.

Amazon.com Inc. (NASDAQ: AMZN)
Yesterday, a U.S. appellate panel reviewed Amazon’s challenge against the National Labor Relations Board (NLRB). Judges suggested the appeal may have been premature, complicating the legal path for Amazon’s labor-related disputes.

Amcor Plc (NYSE: AMCR) & Berry Global Group Inc. (NYSE: BERY)
Today, Amcor announced an $8.43 billion all-stock deal to acquire Berry Global, creating a packaging powerhouse with a combined revenue of $24 billion. Berry shareholders will receive a 9.75% premium per share as part of the merger, which is expected to close by mid-2025.

Archer-Daniels-Midland Co. (NYSE: ADM)
Today, ADM reported a steep decline in third-quarter profits due to weak grain trading performance. After restating previous earnings, ADM affirmed its annual EPS guidance at $4.50–$5.00.

Bakkt Holdings (NYSE: BKKT) & Trump Media and Technology Group Corp.
Today, reports suggest that Trump Media is in advanced talks to acquire crypto trading firm Bakkt in an all-stock deal. The move aligns with the group’s growing involvement in cryptocurrency ventures.

Johnson & Johnson (NYSE: JNJ)
Yesterday, J&J announced successful trial results for icotrokinra, its oral drug for plaque psoriasis. The company plans further trials in 2025 and is preparing milestone payments of $165 million to its partner Protagonist Therapeutics.

Lowe’s Companies Inc. (NYSE: LOW)
Today, Lowe’s revised its annual sales outlook, citing strong hurricane-related demand. Third-quarter same-store sales dipped 1.1%, outperforming analyst expectations.

Merck & Co Inc. (NYSE: MRK)
Today, Merck revealed positive results for its injectable Keytruda, a potential game-changer in cancer treatment administration. Regulatory discussions are expected to begin shortly.

Meteoric Resources NL (ASX: MEI)
Today, Meteoric Resources announced the appointment of Stuart Gale as Managing Director and CEO, with Andy Thomson stepping in as CFO. This leadership change aims to enhance project delivery, particularly focusing on the development of the Caldeira Ionic Clay Rare Earth Project. The restructuring supports the company’s strategic efforts to become a global leader in supplying rare earth materials to Western markets, capitalizing on Gale’s extensive experience in financial and commercial roles.

Nvidia Corp. (NASDAQ: NVDA)
Today, options traders are bracing for a significant $292 billion swing in Nvidia’s market value following its quarterly earnings announcement. Historically, Nvidia’s post-earnings moves have often exceeded market expectations.

Piedmont Lithium Inc. (NASDAQ: PLL)
Today, Sayona Mining announced plans to acquire Piedmont Lithium in an all-stock transaction, consolidating its North American operations and expanding its footprint in the EV sector.

Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF)
Yesterday, Silver Bullet Mines announced the discovery of an undocumented historical mining tunnel and shaft at the Super Champ vein, potentially rich in high-grade silver and gold. Initial assays have recorded impressive silver grades, including a peak of 1093.2 oz per ton. CEO A. John Carter described the find as “spectacular,” noting that visible silver and proximity to the surface suggest easy extraction. Ongoing detailed sampling aims to determine the potential size and quality of the zone.

Sony Group Corp. (NYSE: SONY)
Today, Sony is reportedly in talks to acquire Kadokawa, the media company behind the “Elden Ring” game. A deal could further solidify Sony’s dominance in entertainment and gaming.

White Gold Corp. (TSXV: WGO | OTCQX: WHGOF | FRA: 29W)
Today, White Gold Corp. released an updated Mineral Resource Estimate for its Yukon-based project, reporting a 4.3% increase in indicated resources. The flagship deposit remains open for expansion and demonstrates strong district-wide potential.

Walmart Inc. (NYSE: WMT)
Today, Walmart raised its annual sales and profit forecast for the third consecutive quarter. The retailer highlighted a 27% e-commerce growth in Q3, outpacing prior expectations.

Western Uranium & Vanadium Corp. (CSE: WUC | OTCQX: WSTRF)
Yesterday, Western Uranium & Vanadium announced the completion of the first tranche of its financing, raising CAD $5,041,998 by issuing 3,819,695 units at CAD $1.32 each. Each unit includes a share and a warrant, the latter exercisable at CAD $1.78 for four years. The proceeds are designated for expanding mining operations and other corporate purposes. A second tranche is expected soon, aiming to bring the total raised to approximately CAD CAD $5,500,000.


Global Market Overview

  • S&P 500 Futures: Up 0.14%, signaling cautious optimism.
  • Nikkei 225: Closed up 0.64% amid robust chip stock performance.
  • Brent Crude Oil: Gained 0.14% after Norway’s Johan Sverdrup oilfield resumed production.
  • Gold Prices: Up 0.38% at $2,622.02, reflecting safe-haven demand.
  • Iron Ore Prices: Up 0.13% in USD and 1.97% in CNY, with stabilization seen in steel prices.

Publication Schedule

Investor.Coffee is published Monday through Thursday and reaches a global audience with insights into North American, European, and Asian markets. Stay informed with our concise, factual updates on key market developments and corporate news.


Publisher’s Note: Tracy Hughes uses a variety of sources for her daily market update series called Investor.Coffee. This series is intended to be a brief summary of daily market highlights that the Investor.News team finds interesting. This summary is meant to inspire research, investigation, and due diligence, and we encourage you to always seek licensed professional advice with any investment decision. While Tracy is a professional writer, she is not a licensed investment advisor. And yes, Tracy uses ChatGPT and other technology devices to help distill information and prioritize business data — while sipping her daily coffee! For more information email us info@investornews.com.




Investor.Coffee (10.28.2024): Wall Street Futures are Higher, Led by a Rise in Tech Stocks

North American markets are positioned for a mixed start today. Oil prices dropped after Israel’s limited retaliatory strike on Iran did not disrupt energy supplies, resulting in Canadian futures showing weakness. However, Wall Street futures are higher, led by a rise in tech stocks, as investors anticipate upcoming earnings reports from Alphabet Inc. (NASDAQ: GOOG), Apple Inc. (NASDAQ: AAPL), and Microsoft Corporation (NASDAQ: MSFT). Additionally, Canadian Natural Resources (TSX: CNQ) and Enbridge Inc. (TSX: ENB) earnings will also influence domestic market sentiment. Key economic indicators, such as U.S. nonfarm payrolls for October and Canada’s GDP report for August, are expected to impact markets later this week.

In the Australian market, mining companies are feeling the strain as iron ore prices dipped, while gold producers are facing headwinds from lower gold prices. Over in the UK, European shares kicked off the week on a positive note, with investors eyeing key economic data releases, though oil-related stocks remain under pressure due to the drop in crude oil prices.

Meanwhile, Japan’s stock market surged, driven by a weakened yen hitting a three-month low following Prime Minister Shigeru Ishiba’s coalition losing its parliamentary majority in Sunday’s election. This political shakeup is generating uncertainty over the country’s economic policy.

Notable Company Highlights

Alibaba Group Holdings Ltd. (NYSE: BABA) – October 28, 2024
China’s Alibaba has agreed to pay $433.5 million to settle a U.S. class-action lawsuit filed by investors alleging monopolistic practices by the e-commerce giant. While Alibaba denied any wrongdoing, it chose to settle to avoid the costs and disruptions of further litigation. The settlement, filed in Manhattan federal court, requires approval from U.S. District Judge George Daniels. Lawyers representing the plaintiffs hailed the settlement as “an exceptional result,” especially considering the maximum damages they could have sought were $11.63 billion.

Alphabet Inc. (NASDAQ: GOOG) – October 26, 2024
Alphabet is in the spotlight ahead of its upcoming earnings release, with expectations focused on the company’s artificial intelligence (AI) developments. Reports suggest Alphabet is readying a demonstration of “Project Jarvis,” a browser-embedded AI assistant aimed at automating web-based tasks like research and shopping. This AI-driven innovation is expected to integrate with Alphabet’s Gemini language model.

Apple Inc. (NASDAQ: AAPL)
Apple is scheduled to report earnings this week, with investors closely watching the performance of its flagship iPhone 15. With concerns about supply chain disruptions and consumer demand, Apple’s earnings will provide critical insight into its short-term outlook. Additionally, Apple’s AI initiatives and its expansion into new product categories, such as AR/VR, remain topics of interest for analysts.

Canadian Natural Resources Limited (TSX: CNQ)
Canadian Natural Resources will report earnings this week. Investors are anticipating insights into the company’s strategy amidst volatile oil prices and the potential impact of global geopolitical tensions. CNQ’s focus on cost management and capital allocation will also be key factors in its upcoming earnings call.

Cathedra Bitcoin Inc. (TSXV: CBIT; OTC: CBTTF) – October 28, 2024
Cathedra Bitcoin announced its partnership with Compass Mining to co-locate 10 megawatts (MW) of Bitcoin mining equipment at one of Cathedra’s data centers in Kentucky. Under this collaboration, Compass will manage operations, covering power costs and sharing Bitcoin mining profits with Cathedra. This partnership will increase Compass’s operational stability, and both parties are eyeing further expansion beyond the initial 10 MW setup.

DIAGNOS Inc. (TSXV: ADK | OTCQB: DGNOF) – October 25, 2024
DIAGNOS Inc. has completed a private placement, raising $1,568,600.40 by issuing 5,228,668 units at $0.30 each. This, combined with a previous placement, brings the total raised to $4,068,600.30. Each unit consists of one common share and a warrant, with warrants exercisable at $0.40 per share until April 2026. The funds will support product development, regulatory affairs, and general operations, with all securities subjected to a hold period until February 2025.

Eli Lilly and Co. (NYSE: LLY) – October 27, 2024
Eli Lilly is preparing to enter the Hong Kong market with its weight-loss drug, Mounjaro, after receiving approval from the Hong Kong government. The drug, which uses tirzepatide as the active ingredient, is set for sale by the end of the year, bolstering Eli Lilly’s presence in both the diabetes and weight-management sectors. The drug’s approval positions Eli Lilly as a leader in offering innovative health solutions in the region.

Enbridge Inc. (TSX: ENB)
Enbridge is expected to provide updates on its long-term infrastructure projects and strategies for maintaining stable cash flow amidst market volatility. With energy market fluctuations affecting sentiment, Enbridge’s ability to manage its diversified portfolio and its potential growth in renewable energy investments will be closely monitored.

Microsoft Corporation (NASDAQ: MSFT)
Microsoft’s earnings report, also expected this week, will focus on its cloud computing division, Azure, as well as its continued integration of AI technologies across its product suite. Recent investments in OpenAI and the development of its own AI solutions position Microsoft as a dominant player in the AI and cloud computing markets.

Osisko Mining Inc. (TSX: OSK) – October 28, 2024
Osisko Mining completed its acquisition by Gold Fields Limited (JSE: GFI), through a subsidiary, in a transaction valued at C$4.90 per share. Osisko’s Chairman and CEO, John Burzynski, lauded the completion of the deal as a testament to the world-class Windfall Project. The acquisition marks a key milestone for Osisko, as the project is now set to be further developed under Gold Fields, a globally diversified senior gold producer.

Taiwan Semiconductor Manufacturing Ltd. (NYSE: TSM) – October 28, 2024
Taiwan Semiconductor Manufacturing Company (TSMC) suspended shipments to China-based chip designer Sophgo after a chip it made was found on a Huawei AI processor, raising concerns over U.S. national security restrictions. TSMC had produced chips for Sophgo that matched those found in Huawei’s Ascend 910B processor. The suspension is part of broader efforts to comply with U.S. export controls on sensitive technologies.

Global Market Perspective

The global market landscape has been shaped by easing geopolitical tensions following Israel’s targeted strike on Iran, which left the country’s key oil infrastructure untouched. This development has led to a sharp drop in crude oil prices, with both WTI and Brent seeing declines of over 4%. Meanwhile, Japan’s political uncertainty following the election results is influencing currency markets, with the yen reaching a three-month low.

In Europe, investors are cautiously optimistic as they await key economic data releases. The UK’s FTSE 100 is showing slight weakness, but other European indices, including Germany’s DAX, are rising on positive earnings reports and easing inflation fears.

Publication Schedule: Investor.Coffee is published Monday through Thursday, providing insights and updates to a global audience of investors, analysts, and market professionals.


Publisher’s Note: Tracy Hughes uses a variety of sources for her daily market update series called Investor.Coffee. This series is intended to be a brief summary of daily market highlights that the Investor.News team finds interesting. This summary is meant to inspire research, investigation, and due diligence, and we encourage you to always seek licensed professional advice with any investment decision. While Tracy is a professional writer, she is not a licensed investment advisor. And yes, Tracy uses ChatGPT and other technology devices to help distill information and prioritize business data — while sipping her daily coffee! For more information email us info@investornews.com.




ArcStone Financial Pulse: Opportunities Surge in AI, Tech, and Clean Energy Amid Economic Shifts and Geopolitical Risks

The U.S. economic environment continues to show resilience despite slower growth. Recent Federal Reserve rate cuts, including a notable 50 basis point reduction, are creating a favorable landscape for risk-on trades, particularly in the tech and AI sectors. AI adoption is expanding rapidly, with 5.9% of U.S. companies reporting AI utilization in Q3, up from 3.7% in the same quarter last year, according to U.S. Census Bureau data. This broad adoption is pushing capital into companies that hold strong positions within the AI value chain, such as Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Meta Platforms (NASDAQ: META).

The technology sector has been a key beneficiary of both the Fed’s dovish stance and growing AI demand. Nvidia reached an all-time high, reflecting its leading role in AI hardware, particularly for training large language models (LLMs). Microsoft and Meta Platforms also experienced substantial gains driven by their AI initiatives. Netflix (NASDAQ: NFLX) added 11% following a significant earnings beat, reinforcing investor confidence in the broader tech sector.

Additionally, the growing demand for AI infrastructure is placing data centers under pressure. Analysts at Oppenheimer forecast that demand will outpace supply by 2025, potentially leading to capacity constraints. Derivative plays on infrastructure companies, such as Cogent Communications (NASDAQ: CCOI), DigitalOcean (NYSE: DOCN), Equinix Inc. (NASDAQ: EQIX), and Cloudflare Inc. (NYSE: NET), are attractive as companies continue to pour capital into building the necessary AI hardware infrastructure.

Real estate investment trusts (REITs) have also shown signs of recovery, as rate cuts encourage renewed interest in yield-generating assets. Both U.S. and Canadian REITs are seeing upward momentum from their lows, driven by a shift in capital from fixed-income securities back into equities. This is further supported by Amazon’s (NASDAQ: AMZN) push to bring employees back into offices, emphasizing a return-to-office trend aimed at fostering corporate culture.

In the financial sector, 21 companies from the S&P 500’s financial segment reported earnings this week, with 19 of them beating expectations. The strong financial performance reflects improved cost structures and favorable market conditions, bolstered by the Fed’s rate cuts. These positive earnings reports have kept financial stocks buoyant, continuing their upward trend.

Gold stocks are starting to gain traction, particularly compared to the broader market. More importantly, the gold equities-to-S&P 500 ratio is breaking out from a key support level that has been in place since 2011. When there’s a shift from one end of the spectrum of views and positioning to the opposite side, significant opportunities often arise.

Gold futures hit new all-time highs this week, largely driven by escalating geopolitical tensions in the Middle East and uncertainty surrounding the upcoming U.S. presidential elections. Investors are flocking to gold as a safe-haven asset amid concerns about economic stability, trade policy shifts, and global volatility. Additionally, rising jobless claims in the U.S. (232,000) and the Federal Reserve’s warning that natural disasters and strikes could reduce October’s non-farm payrolls by up to 100,000 have only added to gold’s allure. One of the gold companies ArcStone is following is Collective Mining Ltd. (NYSE: CNL | TSX: CNL), a rapidly expanding firm exploring a large-scale copper-gold porphyry system that uplisted to the NYSE this summer. Collective announced this week that drilling at Plutus intersected 328.05 meters at 0.31 g/t gold equivalent from surface, indicating the presence of a porphyry system.

Silver prices surged over 6% on Friday, breaching the key resistance level of $33.6 per ounce. This significant rally has triggered concerns across global financial markets, particularly impacting five major U.S. banks heavily exposed to short positions in the precious metal. These institutions could potentially face multi-billion-dollar losses as they are caught in a squeeze, amplifying the volatility in both the commodities and financial markets. For investors and market watchers, silver’s sharp price move underscores the heightened demand for safe-haven assets amidst global economic uncertainties.

Data from the Commodity Futures Trading Commission (CFTC) reveals that the open interest in silver futures has hit 141,580 contracts, each representing 5,000 ounces of silver. This equates to 707.9 million ounces—approximately a year’s worth of global production. With silver prices rising by $1.84 per ounce, the estimated mark-to-market losses on these short positions are around $1.3 billion, presenting significant risks to financial institutions. Similar trends are emerging in gold markets, where short positions have reportedly resulted in paper losses exceeding $1.5 billion.

The U.S. budget deficit, now standing at $1.7 trillion, further compounds these concerns, as investors are increasingly wary of inflation management and the long-term economic trajectory. Gold’s rise reflects a growing preference for defensive assets in a volatile environment.

The nuclear energy sector made waves this week, with Oklo Inc. (NYSE: OKLO) and NuScale Power Corporation (NYSE: SMR) leading the New York Stock Exchange in gains, climbing 41.8% and 40%, respectively. These jumps came after Amazon announced plans to leverage nuclear energy to power its AI operations, marking a significant move by Big Tech into nuclear power. Google (NASDAQ: GOOGL) followed suit, striking a deal to support the development of small modular nuclear reactors (SMRs). Nano Nuclear Energy Inc. (NASDAQ: NNE) surpassed $20.00 again and had a strong trading week. ArcStone hosted Jay Yu, founder and Executive Chairman of Nano, at our growth summit in September.

This trend also drove up shares of independent power producers with nuclear exposure, such as Vistra Corp. (NYSE: VST) (+5.7%) and Constellation Energy Corporation (NASDAQ: CEG) (+5.1%), along with uranium-related stocks, including Centrus Energy Corp. (NYSE American: LEU) (+26.2%) and Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) (+15.4%). These moves signal rising confidence in nuclear energy’s role in providing clean and reliable power for the rapidly growing data demands of AI operations.

Bitcoin also experienced a rally this week, climbing past $68,000, driven by increased institutional interest and anticipation of more favorable regulatory conditions in the U.S.

In the commodities market, oil prices have also been volatile, driven by concerns over Middle East tensions and potential supply disruptions. West Texas Intermediate (WTI) crude oil prices have fluctuated, holding around $69 per barrel as of Thursday, marking a steady recovery after a recent dip. Lithium prices, critical for the electric vehicle (EV) sector, have shown signs of stabilization, with increased demand from automakers as the race for EV dominance heats up.

The current economic landscape offers considerable opportunities for investors, particularly in the AI, tech, and clean energy sectors. As Fed rate cuts continue to support equity markets, particularly growth-oriented stocks, and geopolitical risks push investors towards safe-haven assets like gold, we expect further upside across various sectors. The expansion of AI infrastructure, rising demand for nuclear power, and shifting market dynamics in commodities like oil and lithium underscore a pivotal moment in the global market.

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Investor.Coffee (10.15.2024): Optimism Builds as Markets Focus on Key Data and Earnings

Good morning, Investor.News readers! Grab your favorite cup of coffee, and let’s dive into today’s market action as we gear up for another trading day.

Pre-open, U.S. stock futures are edging lower after yesterday’s gains, driven by cautious sentiment ahead of key inflation data. Investors are bracing for the release of September’s CPI report, with expectations that inflation ticked up slightly after a few months of cooling. In Canada, markets are poised for a lower open with crude prices dropping, adding pressure to energy stocks. Meanwhile, Europe turned lower today after hitting a short-lived high, with mining and energy sectors seeing the most losses. Over in Asia, Japanese stocks surged, breaking the 40,000 mark, as a weaker yen boosted export-related shares.

In the currency market, the U.S. dollar remains strong, holding steady near a two-month high against major currencies. Oil prices took a hit, down about 3% on news that Israel may avoid targeting Iranian oil sites. Gold remains mostly unchanged, with investors balancing profit-taking and speculation on further rate cuts from the Federal Reserve.

Economic Indicators to Watch Today

All eyes are on the U.S. CPI report due out this morning. Analysts expect inflation to rise 0.2% year-on-year, which could influence the Fed’s next move on interest rates. In Canada, we’ll also be keeping tabs on wholesale trade data, with economists predicting a decline after last month’s slight gain.

Europe/Asia Update

In Europe, investors are digesting some mixed news, including Ericsson’s report of better-than-expected sales due to strong demand for 5G equipment in North America. However, Deutsche Bank shares took a hit after the sale of a significant block of shares. Over in Asia, Chinese stocks continue to struggle, with investors still waiting on concrete stimulus measures from the government.

Investor.News Updates

Aclara Resources Inc. (TSX: ARA) has completed a conceptual engineering study for its rare earths separation project, positioning it to become the first vertically integrated heavy rare earth producer outside of Asia.

American Rare Earths Limited (ASX: ARR | OTCQX: ARRNF) has increased its stake in Godolphin Resources Limited (ASX: GRL) to 19.9%, with a strategic focus on Godolphin’s Narraburra Rare Earths Project.

Arizona Sonoran Copper Company Inc. (TSX: ASCU | OTCQX: ASCUF) has appointed M3 Engineering to lead the Pre-Feasibility Study for its Cactus Project, advancing copper development in Arizona.

Bank of America Corp (NYSE: BAC) reported a drop in third-quarter profit, with net interest income (NII) down 3% to $14 billion and net income falling to $6.9 billion, as higher credit loss provisions weighed on results.

Boeing Co (NYSE: BA) filed to raise up to $25 billion through a variety of securities and secured a $10 billion credit agreement. The company is also preparing for worker layoffs amid labor unrest.

Coty Inc (NYSE: COTY) projected slower sales growth for Q1, citing a U.S. market slowdown. The company is accelerating cost-reduction efforts to offset weaker demand.

Crane NXT Co (NYSE: CXT) agreed to acquire De La Rue plc’s (LSE: DLAR) authentication business for $391.3 million, helping De La Rue address its financial challenges.

Deutsche Bank AG (ETR: DBK) saw shares decline after a large block sale of 16 million shares, despite recent gains in its stock value this year.

Frontier Communications Parent Inc (NASDAQ: FYBR) faces shareholder pushback on its planned $9.6 billion acquisition by Verizon Communications Inc (NYSE: VZ), with investors expressing concerns over the deal’s valuation.

HSBC Holdings plc (LSE: HSBA | NYSE: HSBC) is reviewing costs and operational controls at its China digital wealth unit, Pinnacle, which could result in layoffs as part of its strategy reassessment.

Intesa Sanpaolo S.p.A. (BIT: ISP) is under investigation after an employee accessed customer data without permission, leading to concerns over internal controls.

Johnson & Johnson (NYSE: JNJ) raised its profit forecast for 2024, driven by strong sales of oncology drugs, particularly Darzalex, which saw a 20.7% year-on-year growth.

Phillips 66 (NYSE: PSX) announced it will sell its 49% stake in Coop Mineraloel AG for $1.24 billion, furthering its efforts to streamline operations and deliver on its $3 billion divestiture goal.

Telefonaktiebolaget LM Ericsson (STO: ERIC) reported a strong Q3 performance, with core earnings doubling, driven by a 50% increase in North American 5G sales.

TotalEnergies SE (EPA: TTE) warned of a sharp drop in Q3 downstream earnings, citing a 65% decline in European refining margins due to global economic slowdown and new refinery capacity.

UnitedHealth Group Inc (NYSE: UNH) reported higher-than-expected medical costs, leading to a surge in its medical loss ratio, although its Q3 profit of $7.15 per share beat estimates.

Walgreens Boots Alliance Inc (NASDAQ: WBA) plans to close 1,200 stores over the next three years as part of a turnaround strategy under new CEO Tim Wentworth.

Wolfspeed Inc (NYSE: WOLF) is set to receive $750 million in U.S. government grants for its new North Carolina silicon carbide wafer facility, with additional financing commitments from investment firms.

Market Wrap-Up

As we approach the opening bell, here’s where the major markets stand:

  • S&P 500 Futures: Slightly up, but cautious at +5.5 points.
  • Oil: Down 3%, with Brent crude dropping to $75.15 per barrel as fears ease over supply disruptions.
  • Gold: Sitting at $2,644, with minor fluctuations as traders weigh inflation data.

That wraps up today’s Investor.Coffee. Stay tuned this week as earnings season heats up, and remember to keep an eye on inflation figures—they could be the catalyst for our next market move.Investor.Coffee is published Monday through Thursday on Investor.News, providing quick, insightful updates for investors across the globe.


Publisher’s Note: Tracy Hughes uses a variety of sources for her daily market update series called Investor.Coffee. This series is intended to be a brief summary of daily market highlights that the Investor.News team finds interesting. This summary is meant to inspire research, investigation, and due diligence, and we encourage you to always seek licensed professional advice with any investment decision. While Tracy is a professional writer, she is not a licensed investment advisor. And yes, Tracy uses ChatGPT and other technology devices to help distill information and prioritize business data — while sipping her daily coffee! For more information email us info@investornews.com.




Investor.Coffee (10.03.2024): U.S. Futures Slide as Middle East Tensions Drive Oil Higher

Good morning, Investor.News readers. As we settle into October, let’s take a look at today’s key market movements and the economic backdrop influencing investor sentiment.

Pre-Open Market Overview

U.S. futures are trading lower this morning, with investors cautious ahead of key economic data and growing concerns about a widening conflict in the Middle East. Weekly jobless claims and ISM services PMI data are expected to set the tone for the day, while oil prices continue to climb due to geopolitical tensions in the region. The U.S. dollar strengthened as resilience in the U.S. jobs market dampened expectations of imminent Fed rate cuts, while gold prices declined. In Asia, Japan’s Nikkei closed higher, driven by a weakening yen after dovish comments from Prime Minister Shigeru Ishiba. Meanwhile, European markets saw a dip, weighed down by mixed inflation data and a decline in tech stocks like SAP SE (NYSE: SAP).

Economic Indicators to Watch

Recent economic data highlights mixed signals in the market. Inflation remains a key concern, with consumer prices rising at a faster-than-expected pace, putting pressure on central banks to potentially tighten monetary policy. On the employment front, job growth has been steady, though wage increases have not kept pace with inflation, impacting consumer purchasing power. Meanwhile, supply chain disruptions continue to weigh on manufacturing output, while the energy sector experiences volatility amid fluctuating oil prices. Overall, global economic uncertainty persists as markets respond to ongoing geopolitical tensions and interest rate decisions from major economies.

Europe/Asia Update

Israel bombed central Beirut, killing at least six people, after its forces suffered their deadliest day on the Lebanese front in a year of clashes against the Iran-backed armed group Hezbollah. Prime Minister Shigeru Ishiba of Japan stated that the country is not in a position to raise interest rates, in an apparent move to soften his hawkish image following a meeting with Bank of Japan Governor Kazuo Ueda. Richmond Federal Reserve President Thomas Barkin commented that the U.S. Federal Reserve’s goal of returning inflation to 2% may take longer than anticipated, which could delay potential interest rate cuts. France, Greece, Italy, and Poland are set to vote on Friday for tariffs of up to 45% on electric vehicle imports from China, marking a significant trade measure in the European Union.

Market Wrap-Up

Yesterday, U.S. markets closed just above the flatline, with the S&P 500 rising 0.01%, the Dow Jones adding 0.09%, and the Nasdaq gaining 0.08%. The energy sector outperformed, driven by escalating tensions in the Middle East, which pushed oil prices higher. Investors continue to focus on tomorrow’s jobs report, following ADP’s better-than-expected payroll data yesterday.

InvestorTalk Upcoming Events

Get ready for next week’s InvestorTalk, where we dive into insightful discussions with industry leaders on the latest developments and opportunities in critical minerals and battery materials.

9-920 AM, Tuesday, October 8, 2024
InvestorTalk with Guy Bourassa from Scandium Canada Ltd. (TSXV: SCD | OTCQB: SCDCF)
Join Zoom Meeting — Click Here

9-920 AM EST, Thursday, October 10, 2024
InvestorTalk with Danny Huh from NEO Battery Materials Ltd. (TSXV: NBM)
Join Zoom Meeting — Click Here

Investor Highlights Section

Alphabet Inc. (NASDAQ: GOOGL) will partner with India’s Adani Group to supply clean energy for Google’s cloud operations in India. The project, a solar-wind hybrid, is expected to begin commercial operations by Q3 2025 and underscores Google’s commitment to sustainable energy solutions.

Eni SPA (BIT: ENI) completed a $993 million acquisition of Eni’s UK oil and gas assets, forming one of the largest independent energy companies in the North Sea. This acquisition aligns with Eni’s strategy to spin off regional-focused businesses to attract investors interested in specific geographical markets.

First Phosphate Corp. (CSE: PHOS) announced the publication of a peer-reviewed research note by Queen’s University and Université de Québec à Chicoutimi comparing global igneous rock phosphate ore bodies. The study highlights First Phosphate’s Bégin-Lamarche property in Quebec, showing its ore’s potential to produce a phosphate concentrate with a P2O5 content of ~40.9%, exceeding the global average. Other major deposits in Russia, Finland, South Africa, and Brazil are also reviewed.

Power Nickel Inc. (TSXV: PNPN | OTCQB: PNPNF) announced strong assay results from its summer 2024 drilling campaign at the Lion Zone. Hole 70 delivered 32 meters at 6.97% copper equivalent, showcasing significant grades of gold, silver, copper, palladium, platinum, and nickel. These results suggest the Lion Zone is larger than initially expected. The company is preparing a 30,000-meter drill program set to begin on October 15, with additional assay results expected later this month.

Stellantis NV (NYSE: STLA) shares continued to slide after issuing a profit warning earlier this week, raising concerns about the sustainability of the company’s dividend and share buyback programs. Investors are closely watching the automaker’s next steps as market conditions weigh on profitability.

St-Georges Eco-Mining Corp. (CSE: SX | OTCQB: SXOOF) and its majority-owned subsidiary, H2SX Corp., completed the installation of their hydrogen production system in South Korea. The system is expected to be fully operational by the end of this year. This project marks a significant step in producing clean hydrogen without greenhouse gas emissions. Wintech Energy’s proprietary technology will be showcased to the industry once it is operational.

TotalEnergies SE (EPA: TTE) announced a strategic focus on low-cost upstream production and signing oil-linked gas contracts to maintain profitability through 2030. As oil prices fluctuate, the company remains committed to rewarding shareholders through its cost-effective energy operations.

Xtract One Technologies Inc. (TSX: XTRA | OTCQX: XTRAF) announced that its SmartGateway technology has been installed at Rocket Mortgage FieldHouse, home of the Cleveland Cavaliers. This system enhances security while streamlining entrance procedures for attendees. The installation was completed in Q2 2024, in time for the NBA season, ensuring a safer and more efficient fan experience.

Conclusion

That wraps up today’s Investor.Coffee. Remember, Investor.Coffee is published on Investor.News from Monday through Thursday, keeping you informed on the latest market trends, company news, and financial data. Investor.News serves a global audience, with subscribers from all corners of the world.


Publisher’s Note: Tracy Hughes uses a variety of sources for her daily market update series called Investor.Coffee. This series is intended to be a brief summary of daily market highlights that the Investor.News team finds interesting. This summary is meant to inspire research, investigation, and due diligence, and we encourage you to always seek licensed professional advice with any investment decision. While Tracy is a professional writer, she is not a licensed investment advisor. And yes, Tracy uses ChatGPT and other technology devices to help distill information and prioritize business data — while sipping her daily coffee! For more information email us info@investornews.com.




Investor.Coffee (09.30.2024): Japan’s Nikkei Falls After Shigeru Ishiba’s PM Victory, While China’s Market Sees Biggest Single-Day Gain in 16 Years

Good morning, Investor.News readers. Let’s dive into today’s top story with a good cup of joe before our respective markets open this morning.

Pre-Open Market Overview

Canada’s futures are showing slight gains this morning as investors await comments from Federal Reserve Chair Jerome Powell later today. Meanwhile, U.S. stock futures are trending lower ahead of key jobs reports expected throughout the week, with caution taking hold across the markets. In Europe, shares dipped as traders braced for economic data from the region, and all eyes are on ECB President Christine Lagarde’s upcoming remarks. Over in Asia, Japan’s Nikkei dropped sharply, reacting to a stronger yen after Shigeru Ishiba won Japan’s prime ministerial election, while Chinese stocks saw their largest single-day gain in 16 years thanks to new stimulus measures from Beijing.

In currency news, the euro has strengthened against the dollar following Germany’s latest inflation data, while gold prices remain just below record highs. Oil prices held steady despite ongoing concerns in the Middle East, with traders balancing a strong supply outlook against the risk of regional conflict.

Economic Indicators to Watch

Today, we’ll see important data including Germany’s inflation numbers, Chicago’s PMI for September, and the Dallas Fed’s manufacturing index. Germany’s inflation is expected to remain flat month-over-month, while the U.S. manufacturing sector is projected to show continued contraction. Keep an eye on these indicators as they’ll likely shape trading sentiment this week.

Europe / Asia Update

China’s factory activity shrank for the fifth month, while services slowed, signaling the need for more stimulus. Despite this, Chinese stocks saw their biggest rally since 2008 due to optimism over the latest government measures.

In Europe, Austria’s far-right Freedom Party won the parliamentary election but needs a coalition partner to form a government. In Germany, Thyssenkrupp (ETR: TKA) warned of up to 27,000 job cuts in its steel division, while Stellantis (BIT: STLA) slashed its forecasts, citing competition from Chinese EV makers and restructuring costs.

Meanwhile, UBS Group (SWX: UBSG) Chair Colm Kelleher raised concerns over stricter Swiss capital requirements, warning they could harm the country’s financial hub status.

Market Wrap-Up

The S&P 500 is up 1.6% for September so far, with the Dow Jones up 1.8% and the Nasdaq up 2.3%. Despite September’s reputation as a challenging month for stocks, the markets have performed solidly, driven in part by the Federal Reserve’s recent rate cut.

Investor.Coffee Company Spotlights

Alphabet Inc. (NASDAQ: GOOGL) and DNeX have entered a multi-year agreement to deliver sovereign cloud services in Malaysia. This deal allows DNeX to operate Google Distributed Cloud, enabling secure, air-gapped solutions for local organizations. Alphabet continues to expand its cloud services presence in the Asia-Pacific region as demand for secure data storage solutions grows.

Apple Inc. (NASDAQ: AAPL) has withdrawn from discussions to participate in OpenAI’s funding round, reportedly to focus on its own AI initiatives. This move suggests Apple is intensifying its competition with Microsoft and Google in the race for artificial intelligence dominance.

Arizona Sonoran Copper Company Inc. (TSX: ASCU | OTCQX: ASCUF) has announced a $30 million bought deal offering to fund ongoing exploration and expansion activities. The offering includes an over-allotment option, with proceeds directed toward advancing copper exploration in Arizona.

Boeing Co. (NYSE: BA) faces renewed challenges as pay talks with the International Association of Machinists and Aerospace Workers broke off, and no further negotiations are scheduled. In addition, Boeing is dealing with a mid-October hearing to address objections from families affected by the 737 MAX crashes, further complicating its legal battles.

Dolly Varden Silver Corporation (TSXV: DV | OTCQX: DOLLF) has closed the second and final tranche of its bought deal financing, raising an additional $4.5 million, bringing the total to $32.2 million. Proceeds will be used for further exploration at the Kitsault Valley project in British Columbia, as well as for working capital and general corporate purposes.

Exxon Mobil Corp. (NYSE: XOM) board director Gregory Goff is leading Amber Energy, an Elliott-backed firm that has successfully bid to acquire Citgo Petroleum. This acquisition places Exxon in a strong position to influence refining capacity in the Western Hemisphere through strategic control of Citgo’s assets.

General Electric Healthcare Technologies Inc. (NASDAQ: GEHC) received FDA approval for Flyrcado, a diagnostic drug designed for detecting coronary artery disease. GEHC plans a gradual rollout in early 2025, further expanding its footprint in the healthcare diagnostics market.

Panther Metals PLC (LSE: PALM) reported promising results from its initial drilling at the Obonga Project in Ontario, focusing on the Wishbone and Awkward prospects. The findings suggest potential for significant mineralization, with plans for further drilling. Panther Metals continues to expand its exploration efforts to build value across its Canadian assets.

Royal Road Minerals (TSXV: RYR) announced that its joint venture, Royal Road Arabia, has qualified for Saudi Arabia’s Exploration Enablement Program, which provides up to USD $2 million in reimbursement per exploration license. The company’s Jabal Sahabiyah project will benefit from this program, accelerating exploration efforts in one of the world’s most promising greenfield regions.

Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF) has commenced commercial production and announced impressive high-grade silver assay results, with grades reaching up to 45.5 oz per ton. Peter Clausi, Director and VP of Capital Markets, shared that SBMI has not only processed its own material but also secured third-party sources. The Arizona mill is ramping up operations, positioning SBMI for growth in the silver, gold, and base metals markets.

Southern Co. (NYSE: SO) was forced to shut down one of its nuclear reactors and slow operations at its power plants due to damage caused by Storm Helene. The storm affected the broader power system in Georgia, prompting Southern Co. to take these precautionary measures.

TPG Inc. (NASDAQ: TPG) is close to acquiring a minority stake in Creative Planning, a wealth management firm, in a deal valued at over $15 billion. This move marks TPG’s second major investment in the wealth management sector within a week, highlighting strong deal activity in the lucrative space.

That wraps up today’s Investor.Coffee. Remember, Investor.Coffee is published on Investor.News from Monday through Thursday, keeping you informed on the latest market trends, company news, and financial data. Investor.News serves a global audience, with subscribers from all corners of the world.


Publisher’s Note: Tracy Hughes uses a variety of sources for her daily market update series called Investor.Coffee. This series is intended to be a brief summary of daily market highlights that the Investor.News team finds interesting. This summary is meant to inspire research, investigation, and due diligence, and we encourage you to always seek licensed professional advice with any investment decision. While Tracy is a professional writer, she is not a licensed investment advisor. And yes, Tracy uses ChatGPT and other technology devices to help distill information and prioritize business data — while sipping her daily coffee! For more information email us at info@investornews.com.





Investor.Coffee (09.19.2024): Canadian Futures Surge on Metal and Oil Gains After Fed’s 50-Basis-Point Rate Cut, Boosting U.S. Markets

Good morning, investors! Here’s what’s brewing in the markets today:

Canada Pre-Market

Canadian futures are up as metal and oil prices rise, following a 50-basis-point rate cut by the Federal Reserve. This move has markets buzzing, with U.S. stock index futures also climbing, especially the Nasdaq, which is seeing almost a 2% increase. Expect a lot of action in resource-heavy sectors today as investors respond to these interest rate moves.

Also, big news on the carbon tax front—some analysts suggest Canada could hit its 2030 emissions target without a consumer carbon tax. That could shake up policy discussions in the coming weeks. Let’s keep an eye on that debate, especially with rising political pressure on the current government.

World Markets

European stocks are getting a lift today, with Euro STOXX 50 futures up by 57 points. Oil prices have been moving in tight ranges, while bond yields edge higher as investors assess the Fed’s rate cut and its implications. The Fed hinted at more easing down the road, but it’s clear the market is still figuring out what all this means for inflation and growth.

Here’s where the numbers stand

  • S&P 500 Futures (NYSE: SPX): Up 0.99%, looking strong for a positive day.
  • Dow Jones Futures (NYSE: DJIA): Up 0.62%.
  • Nikkei (TSE: N225): Closed up 2.54%, its best two-week performance—Japan’s exporters are loving that softer yen.

Commodities Snapshot

  • Gold: $2,562.42/oz, up 0.14%—investors turning to safe havens as volatility lingers.
  • U.S. Crude (NYMEX: CL): $70.83/barrel, down 0.11%.
  • Copper (COMEX: HG): Up 1.44%, continuing its steady climb amid supply concerns.

U.S. Market Recap

The Fed’s 50-bps cut was the first in over a decade, and while initially celebrated, markets cooled off as investors digested the news. The Dow closed down by 103 points, erasing earlier gains. The Fed’s message is clear: they’re easing, but with caution.

Stock Watch

  • Alibaba Group Holding Ltd (NYSE: BABA) just launched some seriously impressive AI tools, stepping up its game in generative AI with models capable of everything from math to multilingual support.
  • Chesapeake Energy Corp (NASDAQ: CHK): Keep an eye on this one—its $7B acquisition of Southwestern Energy Co (NYSE: SWN) is set to close early Q4. This could reshape the natural gas market significantly.
  • Boeing Co (NYSE: BA): They’re back in business with China, securing a 50-plane order for the 737 MAX. A much-needed win for Boeing after the turbulent few years they’ve had.

Economic Data to Watch

  • Initial Jobless Claims (8:30 AM EST): Expected to stay at 230,000, keeping an eye on labor market strength.
  • Existing Home Sales (10 AM EST): Analysts are predicting a slight dip to 3.9 million, reflecting the broader slowdown in real estate.

Let’s keep a sharp eye on the markets today, and don’t forget to grab that extra shot of espresso—it’s going to be an active one!

Happy trading! ☕


Publisher’s Note: Tracy Hughes uses a variety of sources for her daily market update series called “InvestorCoffee.” This series is intended to be a brief summary of daily market highlights that the InvestorNews team finds interesting. This summary is meant to inspire research, investigation, and due diligence, and we encourage you to always seek licensed professional advice with any investment decision. While Tracy is a professional writer, she is not a licensed investment advisor. And yes, Tracy uses ChatGPT and other technology devices to help distill information and prioritize business data — while sipping her daily coffee! For more information email us at info@investornews.com.





Investor.Coffee (09.18.2024): All Eyes on Rate Cut and Gold Climbs Amid Uncertainty

Good morning, investors!

Fed Watch: All Eyes on the Rate Cut

The big headline today is the Federal Reserve’s upcoming decision on interest rates. Futures are trading flat this morning as we await the Fed’s first rate cut in over four years. Will it be a 25-basis-point or a more aggressive 50-basis-point cut? The market’s betting on the latter, but we’ll be glued to Fed Chair Powell’s remarks for guidance on future moves. A softer dollar has already nudged gold prices higher, and we could see more action in the commodities space depending on how dovish the Fed turns out to be.

Gold Climbs Amid Uncertainty

Gold (spot price: $2,573.18) is up slightly this morning as investors seek safe havens in anticipation of the Fed’s decision. Barrick Gold Corp. (TSX: ABX) is making headlines after suspending operations at its Porgera mine in Papua New Guinea due to regional tribal violence. Operations are expected to resume by September 19, but this disruption may impact gold supply forecasts.

Global Markets

Mixed performance across global markets overnight. In Asia, Japan’s Nikkei 225 inched up (+0.06%), bolstered by a weaker yen, while China’s SSE Composite climbed on gains in property and financial shares. However, Europe’s markets edged down slightly as traders await the Fed’s rate announcement.

Futures Snapshot:

  • S&P 500 Mini Futures: +0.08%
  • DJIA Mini Futures: +0.12%
  • Brent Crude (ICE: BZ): -0.41% ($73.40)
  • USD/JPY: -0.68% (141.45)

Company Updates:

  • Alphabet Inc. (NASDAQ: GOOGL) & Qualcomm Inc. (NASDAQ: QCOM): Alphabet scored a victory in its EU antitrust case, while Qualcomm saw its fine reduced. Keep an eye on these tech giants as legal proceedings can impact share price volatility.
  • BlackRock Inc. (NYSE: BLK) & Microsoft Corp. (NASDAQ: MSFT): Powering up with a $30 billion AI infrastructure fund, this collaboration signals a big push into the future of data and tech investment. Definitely a space to watch for long-term growth.
  • Intuitive Machines Inc. (NASDAQ: LUNR): Big win with NASA—$4.82 billion contract for lunar satellite services. Space exploration is heating up, and this contract could position Intuitive as a key player in the sector.

Quick Hit: Economic Indicators

Housing starts and building permits data for August drop at 8:30 AM EDT, followed by the Fed’s much-anticipated decision at 2:00 PM EDT. Expect volatility as traders digest the numbers and Powell’s commentary.

That’s a wrap for today! Stay sharp, and we’ll see what the Fed has in store for us.


Publisher’s Note: Tracy Hughes uses a variety of sources for her daily market update series called “InvestorCoffee.” This series is intended to be a brief summary of daily market highlights that the InvestorNews team finds interesting. This summary is meant to inspire research, investigation, and due diligence, and we encourage you to always seek licensed professional advice with any investment decision. While Tracy is a professional writer, she is not a licensed investment advisor. And yes, Tracy uses ChatGPT and other technology devices to help distill information and prioritize business data — while sipping her daily coffee! For more information email us at info@investornews.com.





InvestorCoffee (07.16.2024): Dow Closes Record High, Cost of Living Soars in Canada

A benefit of aging is the ability to rise at 440 AM without looking back. Interview with Nick Holthouse from Meteoric Resources NL (ASX: MEI), this is the ionic clays play in Brazil that many of us are tracking, I must confess – his prioritization for cost effective production, combined with the recent MOU with Lab Fabs was a good start for my morning coffee.

Relieved that the political instability I perceived from the Trump rally, my favorite update this morning as we head into today’s market was “The Dow Jones Industrial Average gained over 200 points, closing at 40,211.72, marking a record close and intraday high.”

Heading into an InvestorTalk at 9 AM with Edward Gosselin from Kobo Resources Inc. (TSXV: KRI), click here to join us. I urge you to watch the Pat Ryan (CEO and Chairman of Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF)) interview with Jack Lifton we published yesterday – click here.

Now for InvestorCoffee Updates

World News

In the global markets, the sentiment remains mixed. Euro STOXX 50 futures dipped by 10 points to 5,010.0, while FTSE futures lost 17.5 points, closing at 8,183.0. German DAX futures also saw a decline, dropping 27 points to 18,717.0. The market movements reflect broader concerns and anticipations, from fluctuating oil prices influenced by China’s economic outlook to the cautious optimism surrounding potential U.S. Federal Reserve rate cuts anticipated as early as September.

Japan’s Nikkei share average rose, bolstered by gains on Wall Street. Investors are closely watching the geopolitical climate, including the ramifications of an assassination attempt on U.S. presidential candidate Donald Trump, which could influence the upcoming elections. Oil prices saw a slight decline, with U.S. crude at $81.67 per barrel and Brent crude at $84.65, reflecting concerns over China’s economic growth and its impact on global demand.

United States

The major U.S. indices closed positively on Monday. The Dow Jones Industrial Average gained over 200 points, closing at 40,211.72, marking a record close and intraday high. The S&P 500 and Nasdaq Composite also ended higher, closing at 5,631.22 and 18,472.57, respectively. Federal Reserve Chair Jerome Powell, speaking at the Economic Club of Washington D.C., hinted at imminent rate cuts, suggesting that the Fed may act before inflation hits the 2% target, aiming instead for “greater confidence” in inflation trends. Powell’s comments provided a boost to market optimism, as he downplayed the likelihood of a hard landing for the U.S. economy.

Canada

The Canadian economy continues its modest growth trajectory in Q2 2024. According to the latest Main Street Quarterly report by the Canadian Federation of Independent Business (CFIB), the economy grew by 2.0% in Q2, building on the 1.7% growth seen in Q1. The total Consumer Price Index (CPI) inflation receded to 2.8% in Q2 and is expected to further decline to 2.4% in Q3. However, businesses, particularly those in repair, maintenance, and personal care services, are grappling with high borrowing and product input costs. The private sector job vacancy rate also saw a slight improvement, with 458,000 unfilled positions, translating to a 3.3% vacancy rate.

The CFIB report highlights a significant increase in the costs of doing business, with unit costs spiking by 26% during 2022 and remaining elevated since. Simon Gaudreault, CFIB’s chief economist and vice-president of research, emphasized that while economic growth is encouraging, small businesses continue to face steep cost increases, including wage pressures and high energy and fuel costs, which impact their ability to invest.

Australia

In Australia, the markets are closely monitoring the shifts in global economic policies, particularly those from major trading partners like China and the U.S. The Reserve Bank of Australia (RBA) has maintained a cautious stance, balancing the need to support economic growth with managing inflationary pressures. The mining sector, a significant component of the Australian economy, has seen mixed results, with fluctuations in global demand and commodity prices influencing market performance.

United Kingdom

The UK markets mirrored the cautious optimism seen globally. Losses in metal miners and disappointing earnings reports from companies like Hugo Boss weighed on European shares. Hugo Boss, in particular, cut its sales guidance for the year, citing weakening consumer demand in key markets such as China and the UK. In contrast, HSBC Holdings Plc has taken proactive steps to capitalize on the shift towards a lower-carbon economy by establishing a new infrastructure finance unit, led by a former UK politician, aiming to build new public and private sector partnerships.

Europe and Rest of the World

In Europe, Swedish banking group SEB reported better-than-expected second-quarter profits, thanks to diversified revenue streams offsetting slower interest income growth. Russia’s Kaspersky Labs announced its exit from the U.S. market following recent sales bans. Meanwhile, French oil giant TotalEnergies SE expects its Q2 hydrocarbon production to hit the high end of its guidance, driven by higher refinery utilization.

India has introduced a unified 5% tax on all imports of aircraft components and engine parts, a move aimed at streamlining the tax structure. Additionally, India’s central bank has mandated lenders to provide defaulters adequate time to respond before classifying their accounts as fraudulent, in line with a recent Supreme Court judgment. Interestingly, India’s four-week platinum imports have surged, driven by dealers exploiting a loophole by registering gold alloys as platinum to avoid higher duties.


Note: Tracy Hughes uses a variety of sources for her daily market update, “InvestorTalk.” InvestorTalk is intended to be a brief summary of market highlights that the InvestorNews team finds engaging. This is meant to inspire research, investigation, and due diligence, and we encourage you to always seek licensed professional advice with any investment decision. While Tracy is a professional writer, she is not a licensed investment advisor. She enjoys utilizing ChatGPT and other technology devices to help distill information and prioritize business data.