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Conflict Status: 1. Ukraine claims energy facilities were attacked, causing power outages in multiple locations. 2. Russian Security Service: Russia and Belarus jointly prevented Ukraine from transporting over 500 explosive devices to Russia. 3. According to Interfax news agency: The Russian Ministry of Defense stated that Russian troops have taken control of Zapsilya and Ryasny in eastern Ukraine. Peace Negotiations: 1. Russian Deputy Foreign Minister: There are currently no preconditions for strategic stability dialogue with the United States. 2. US Secretary of State Rubio: There are currently no ongoing or scheduled negotiations between the United States and Ukraine. Other Developments: 1. The United Kingdom announced a new round of sanctions against Russia. 2. Japan sent officials to Russia to "promote communication." 3. The European Council extended sanctions against relevant Russian individuals and entities. 4. 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Trump imposed the 10% global tariffs in February under Section 122 of the Trade Act of 1974, which are set to last a maximum of 150 days and were originally scheduled to expire in July and be replaced by new tariffs. Speaking at an event hosted by the Council on Foreign Relations, Greer said that the law may allow for the reinstatement of these tariffs, as the regulations only specify the expiration date and not when they can be reinstated. Greer did not say whether the Trump administration would seek to extend these tariffs, but stated that he "cannot imagine" Congress intending to limit the presidents power to use Section 122 tariffs to once per term.① Iran 1. Iran stated it would retaliate fiercely if war resumed and would block regional oil exports. 2. Irans Supreme Leader stated the US would no longer have a "safe haven" in the Middle East. 3. The Iranian Revolutionary Guard declared that Iran has the right to respond to any US violation of the ceasefire agreement. 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The Israeli military claims to have killed a key Hamas weapons production figure, Mohammed Abu Mahlou. 2. Israeli Prime Minister Netanyahu: Israel launched an attack in Gaza on the leader of a new Hamas armed branch. 3. The Israeli military issued an emergency mobilization order to expand its military operations outside the Yellow Line in Lebanon. 4. The Israeli military issued evacuation warnings to residents of two towns in the Bekaa region of Lebanon, anticipating possible airstrikes. 5. Israeli media reported on the 26th that the Israeli military crossed the ceasefire line into southern Lebanon to launch a ground offensive. 6. Israel strives to retain its freedom of action in Lebanon within the Iran agreement. 7. The Israeli military launched airstrikes on Hezbollah infrastructure in Lebanon, killing several militants. ④ Strait of Hormuz 1. 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Qatari Foreign Ministry: Reports of Qatar contributing $12 billion to facilitate the agreement are completely false. 3. US Secretary of State Rubio: The Strait of Hormuz must remain open; negotiations on the wording of the Iran agreement may "take several days." 4. Iranian media denied claims that Iran and the US had reached a memorandum of understanding. 5. According to Irans Tasnim News Agency: Sources close to the negotiating team stated that if a potential memorandum of understanding is reached with the United States, the $24 billion in frozen Iranian funds must be unfrozen. 6. Sources stated that the unfreezing of Iranian funds is the last major obstacle between Iran and the United States, and is being resolved through mediation in Qatar. This has not yet been officially confirmed. 7. Middle Eastern officials: Despite the attack on Iran, the diplomatic process will continue. 8. Iranian President: Ready to reach a "dignified" framework agreement. 9. According to Lebanese television station Al-Mayadeen: An advisor to Iranian Parliament Speaker Ghalibaf stated that if the United States "plays word games," Tehran will withdraw from negotiations.U.S. Trade Representative Greer: There has been progress with the EU on reducing tariffs, but further efforts are needed on non-tariff barriers.The European-Mediterranean Seismological Centre reports a 4.8-magnitude earthquake in the Fiji region.

Copper pricing remains firmer on anticipation for stimulus and weaker DXY

Daniel Rogers

Sep 06, 2022 15:16

 截屏2022-06-15 下午4.06.52_1024x576.png

 

Reuters reported that the copper contract for three months on the London Metal Exchange (LME) increased 0.3% to $7,678 per tonne by 02:59 GMT, while the most-traded copper contract for October on the Shanghai Futures Exchange (SFE) rose 1.3% to 60,850 yuan ($8,773.45) per tonne.

 

In doing so, the red metal applauds the market's improved sentiment and hopes for additional support, particularly from China. The lower performance of the US Dollar Index (DXY) after it reached a 20-year high the day before is also encouraging for metal purchasers.

 

US 10-year Treasury yields jump 2.5 basis points (bps) to 3.21%, reflecting the sentiment, while S&P 500 Futures extend the week-start recovery to 3,943, up 0.50% intraday as of press time. In addition, market consolidation permitted the DXY to fall from the 20-year high to 109.37, prior to its current rebound to 109.62.

 

During a period of full markets, optimists appeared to have been supported by rumors of more aid packages to spur economic recovery. Nonetheless, the incoming British prime minister, Liz Truss, has a £130 billion energy plan in the works, while the People's Bank of China (PBOC) reduces the Reserve Requirement Ratio (RRR). In addition, policymakers from Germany and the Eurozone are making a concerted effort to shield energy businesses and winter stocks from the effects of the recession.

 

China's tightening supply and Peru's falling output of the metal further support the price. "The premium of LME cash copper over the three-month contract surged to $77.50 per tonne on Monday, the biggest level since December 2021," reported Reuters, indicating a diminishing supply of immediately available material in LME warehouses. Copper production in Peru, the world's second-biggest copper producer, decreased 6.6% year-over-year to 195,234 tonnes in July, as two of the nation's top mines underperformed.