Archive for Financial News – Page 178

13 Oct

The situation in the Middle East is heating up. Inflation data in China disappointed investors

By JustMarkets

At Wednesday’s stock market close, the Dow Jones Index (US30) decreased by 0.51%, while the S&P 500 Index (US500) lost 0.62%. The NASDAQ Technology Index (US100) closed yesterday negative by 0.63%. Stocks posted moderate losses on Thursday amid a stronger-than-expected US CPI report for September. In addition, weekly US initial jobless claims remained unchanged, which was hawkish for Fed policy. Thursday’s hawkish reports keep the likelihood of another Fed rate hike this year alive. Stocks continued to lose ground Thursday afternoon as T-bond yields rose further amid weak demand at the $20 billion auction of 30-year Treasury bonds.

Concerns that the conflict between Israel and Hamas will spread to the Middle East was another negative factor for stocks amid reports that Israel launched airstrikes on major airports in Damascus and Aleppo in Syria. In turn, Iran has begun moving military equipment to its western border. Whether this equipment will travel further through Iraq toward Israel is still unknown, but the geopolitical risks of another major war have increased significantly in recent days.

The US Consumer Price Index for September came in at 3.7% y/y, unchanged from August and stronger than the 3.6% y/y decline. The core CPI excluding food and energy for September declined to 4.1% y/y from 4.3% y/y in August, which was in line with expectations. US weekly initial jobless claims were unchanged at 209,000, indicating a slight strengthening of the labor market compared to expectations of a rise to 210,000.

FRB Boston President Collins commented that she favors a pause in Fed rate hikes.

Equity markets in Europe traded lower yesterday. Germany’s DAX (DE40) decreased by 0.23%, France’s CAC 40 (FR40) lost 0.37% on Thursday, Spain’s IBEX 35 (ES35) was 0.26% cheaper, and the UK’s FTSE 100 (UK100) closed positive by 0.32%.

ECB Governing Council spokesperson Centeno said yesterday, “At the current level of interest rates, we will make a significant contribution to the 2% inflation target. We will achieve this target by continuing with this monetary policy stance, holding it for some time until we are fully confident that inflation is falling.” Another representative of the ECB Governing Council, Wunsch, said, “If we continue to see inflation figures in line with the forecast, we will not need to raise interest rates again.” Minutes from the ECB’s September 13-14 meeting showed that the risks of too much tightening and too little tightening have become more balanced and the ECB will hold off on raising interest rates.

Crude oil prices gave up early gains on Thursday amid a stronger dollar and after the EIA’s weekly crude oil inventories report showed an unexpected rise in crude stockpiles and US crude production hit a record high. Oil initially opened higher on Thursday on concerns over the escalating conflict between Israel and Hamas. Oil was also supported by comments from Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, who said oil producers will continue to work together and be proactive to keep the oil market balanced.

Asian markets were predominantly rising yesterday. Japan’s Nikkei 225 (JP225) rose by 1.75%, China’s FTSE China A50 (CHA50) gained 0.85%, Hong Kong’s Hang Seng (HK50) rose by 1.93% and Australia’s ASX 200 (AU200) ended the day positive by 0.04%.

In China, the Consumer Price Index (CPI) was unchanged in September, missing forecasts for a 0.2% y/y rise. In August, the CPI rose by 0.1% y/y. On an annualized basis, core inflation, excluding food and fuel prices, was up by 0.8%, the same as in August. The Producer Price Index (PPI) fell to 2.5% y/y, marking the 12th consecutive negative month, although the rate of decline slowed from August. Economists had forecast a drop to 2.4% y/y. CPI inflation at zero indicates that deflationary pressures in China remain a real threat to the economy. The recovery in domestic demand will not be strong without significant stimulus from the government.

S&P 500 (F)(US500) 4,349.61 −27.34 (−0.62%)

Dow Jones (US30) 33,631.14 −173.73 (−0.51%)

DAX (DE40)  15,425.03 −34.98 (−0.23%)

FTSE 100 (UK100) 7,644.78 +24.75 (+0.32%)

USD Index  106.58 +0.76 (+0.72%)

News feed for 2023.10.13:
  • – Singapore GDP (q/q) at 03:00 (GMT+3);
  • – China Consumer Price Index (m/m) at 04:30 (GMT+3);
  • – China Producer Price Index (m/m) at 04:30 (GMT+3);
  • – China Trade Balance (m/m) at 06:00 (GMT+3);
  • – Sweden Consumer Price Index (m/m) at 09:00 (GMT+3);
  • – Switzerland Producer Price Index (m/m) at 09:30 (GMT+3);
  • – UK BoE Gov Bailey Speaks at 11:00 (GMT+3);
  • – Eurozone Industrial Production (m/m) at 12:00 (GMT+3);
  • – US FOMC Member Harker Speaks at 16:00 (GMT+3);
  • – Eurozone ECB President Lagarde Speaks (m/m) at 16:00 (GMT+3);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3).

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Economics & Fundamentals Financial News
12 Oct

US CPI comes in above expectations – what should you do with investments?

By George Prior 

US Consumer Price Index (CPI) data published Thursday supports the case that the Federal Reserve will likely implement one more interest rate hike, says the CEO of one of the world’s leading financial advisory, asset management and fintech organizations.

The prediction from Nigel Green of deVere Group comes as September CPI inflation rises 3.7%, above expectations of 3.6%. US CPI is now up for four consecutive months. Core CPI inflation fell to 4.1%, in line with expectations.

He comments: “Taking into account the latest US CPI data, and the minutes from the most recent Federal Reserve meeting, which were published on Monday, we expect there to be one last 25 basis point hike at its two-day meeting beginning October 31.

“The Fed will be conscious of growing uncertainty of the trajectory of the world’s largest economy and the risks of overtightening – especially in times of growing geopolitical uncertainty; while at the same time, want to avoid complacency in the continuing battle against inflation.”

The deVere CEO continues: “As a result, we expect that interest rates will still continue to remain higher for longer.”

Based on the assertion that interest rate hikes are likely to be nearing an end, and high-interest rates are expected to continue, investors may want to consider rebalancing their portfolios.

“Financial institutions, such as banks and insurance companies, tend to benefit from higher interest rates as they can charge more for loans and earn higher yields on their investments. A portfolio allocation to financial services stocks or exchange-traded funds (ETFs) may be considered,” says Nigel Green.

“The energy sector also benefits from a robust economy and high interest rates. It’s typically positively correlated with economic growth and tends to perform well in such environments.

“Certain segments of the consumer discretionary sector, such as automotive, housing, and luxury goods, can perform well when interest rates are high. Consumer spending can remain strong, particularly if the economy is healthy, and these industries can benefit.

“Industrial companies often benefit from increased infrastructure spending and a robust economy. With expectations of continued high interest rates, these companies are likely to see growth opportunities in construction, manufacturing, and transportation.”

He goes on to add: “While technology stocks can be sensitive to interest rate changes, some tech companies continue to thrive in a high-interest rate environment, especially those with strong fundamentals and growth potential.

“Meanwhile, the healthcare sector is typically less sensitive to interest rate changes, making it a relatively stable option for a portfolio, as will essential goods, such as food, beverages, and household products.”

As ever, an investor’s best tool for mitigating risk and seizing opportunities is to remain properly diversified and by working with an independent financial advisor.

The FOMC since March 2022 has raised its key interest rate 11 times, taking it to a targeted range of 5.25%-5.5%, the highest level in 22 years.

Nigel Green concludes: “We don’t think we’re at the end of the hiking cycle just yet, even though we’re close, and rates will continue to be high, potentially impacting your investment portfolio.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of offices across the world, over 80,000 clients and $12bn under advisement.

Economics & Fundamentals Financial News
12 Oct

Uranium Prices, Demand Continue Rising in Tight Market

Source: Streetwise Reports  (10/11/23)

Uranium prices and demand are forecast to keep rising through late 2023 amid tight supply, increasing the appeal of uranium stocks, say analysts.

Uranium prices and demand should continue their upward trajectory through the remainder of 2023, according to a recent industry report. Analysts attribute the positive momentum to sustained uranium supply deficits. With inventory levels low and global nuclear capacity expanding, the structurally undersupplied market continues tightening.

In the report, analysts increased their uranium demand estimates through 2030 and 2035. Total nuclear capacity is projected to grow at a 3.6% compound annual rate through 2030. This translates into a 30% rise in annual uranium requirements. New reactor construction in China and India, coupled with plant life extensions in the West, drive the demand growth.

Source: Trading Economics

While primary mine output increases, risks remain regarding achieving targeted production rates. Ongoing supply chain constraints and labor shortages could hinder bringing new capacity online. Even current mine supply faces challenges like coup d’etats, restart delays, and reduced guidance. Analysts emphasize that permitting, technical, and financing risks persist for essential greenfield projects.

With demand climbing and supply challenged, the uranium market will likely stay in a significant deficit for years. Spot prices have already hit 12-year highs of around US$70 per pound. Analysts boosted their long-term outlook to US$75, reflecting inflationary impacts on production costs. They expect an effective Western premium price of US$80 for most miners.

In fact, earlier this month, Katusa Research released a report on uranium, saying, “Today, more nuclear reactors are being built than any year since 1992. All of that has increased demand for uranium, but it’s also accidentally created something much bigger: a source of demand That NEVER EXISTED Before . . . It’s one that’s going to completely change how the uranium market works. The prospect of unquenchable global thirst for uranium has invited speculators into the uranium market.”

These dynamics prompted analysts in the above report to recommend adding leverage by increasing positions in uranium developers and miners.

 

Important Disclosures:

  1. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Financial News Metals
12 Oct

Can SPX500_m bears keep up their momentum?

By ForexTime 

  • SPX500_m flirts above weekly resistance ahead of US CPI
  • Bears in control on weekly timeframe
  • Three potential targets identified.
  • Bearish scenario invalidated If 4401.1 price level is broken
  • Will key US inflation report support SPX500_m bulls or bears?

The SPX500_m seems to be in the process of a technical bounce on the daily charts with prices flirting above key weekly resistance ahead of the US CPI report later today. Nevertheless, bears remain in firm control on the weekly charts. Even though the current correction wave is strong – it is approaching a point of possible resistance at the trend line.

On the daily timeframe, prices are at a weekly resistance turned support level and the bullish strength is undeniable with an extended correction wave in the current down trend clearly visible. This leaves the field open for either bullish continuation or a bearish intervention and the possible start of a new impulse wave in the down trend. Since both the weekly and the daily trend is downwards, a more detailed bearish opportunity is discussed on the H4 chart.

The H4 chart reveals more details with a strong bullish trend in progress. As mentioned above the higher time frames as well as the effect on traders based on the CPI news event might cause the bears to take over again.

Attaching a modified Fibonacci tool to a trigger level near a last bottom at 4343.3 and dragging it to a stop loss just above a last proper swing at 4401.1, three possible targets can be established:

  • The first possible target at 4314.3 (Target 1) with risk management in sight.

  • The second potential price target at 4273.9 (Target 2) – located just before weekly support level.

  • The third and last price target is feasible at 4236.3 (Target 3) if bears can break through the weekly support level.

If the price at 4401.1 is broken, this scenario is no longer applicable.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Stock Market News
12 Oct

Oil prices are declining amid growing geopolitical risk in the Middle East. The FOMC minutes were mixed

By JustMarkets

At Wednesday’s close, the Dow Jones Index (US30) added 0.19%, while the S&P 500 Index (US500) was up by 0.43%. The NASDAQ Technology Index (US100) closed positive by 0.71% yesterday.

According to the FOMC minutes released on Wednesday last month, the Federal Reserve leadership considered the outlook for the US economy uncertain and said it would “proceed cautiously” in deciding whether to raise the benchmark interest rate further. Such caution is generally seen as an indication that the Fed is not inclined to raise rates in the near future. Economic data over the past few months have indicated that inflation is slowing, according to the September 19-20 meeting minutes. Policymakers added that more evidence of inflation slowing to the Fed’s 2% target is needed to be confident that inflation will slow to the Fed’s 2% target. Officials generally acknowledged that the risks to Fed policy are increasingly balanced between raising rates too high, which hurts the economy, and not raising them enough to contain inflation.

Late Tuesday, San Francisco Fed spokeswoman Daly said that tighter financial conditions could mean the Fed wouldn’t have to do as much in terms of interest rates. Also on Wednesday, Fed spokesman Waller said that the Fed finally got a very good hold on inflation and can now take an observational stance.

The US PPI for September rose by 0.5% m/m and 2.2% y/y, which was stronger than expectations of 0.2% m/m and 1.6% y/y. In addition, the Food & Energy Price Index rose by 0.3% m/m and 2.7% y/y, stronger than expectations of 0.2% m/m and 2.3% y/y.

Equity markets in Europe traded yesterday without any unified dynamics. German DAX (DE40) increased by 0.24%, French CAC 40 (FR40) declined by 0.44% on Wednesday, Spanish IBEX 35 (ES35) added 0.06%, and British FTSE 100 (UK100) closed negative by 0.11%.

The European currency retreated from its best levels amid dovish comments from ECB Governing Council representative and Bundesbank President Nagel, who said a pause could be an option for the ECB at its next policy meeting later this month.

WTI crude oil and gasoline prices fell sharply on Wednesday amid early signs that the war between Israel and Hamas will have a limited impact on oil flows in the Middle East. In addition, Wednesday’s US producer price index report came in stronger than expected, reinforcing speculation that the Federal Reserve will hold interest rates longer, which could dampen economic growth and energy demand.

Asian markets were predominantly up yesterday. Japan’s Nikkei 225 (JP225) increased by 0.60%, China’s FTSE China A50 (CHA50) gained 0.37%, Hong Kong’s Hang Seng (HK50) added 1.29% and Australia’s ASX 200 (AU200) ended the day positive by 0.68%.

Hong Kong’s Hang Seng Index jumped by 1.8% on Thursday thanks to a 3% rise in banking stocks after China’s state fund Central Huijin Investment increased stakes in four major banks.

Japan’s September machine tool orders fell by 11.2% y/y, the ninth consecutive decline.

S&P 500 (F)(US500) 4,376.95 +18.71 (+0.43%)

Dow Jones (US30) 33,804.87 +65.57 (+0.19%)

DAX (DE40)  15,460.01 +36.49 (+0.24%)

FTSE 100 (UK100) 7,620.03 −8.18 (−0.11%)

USD Index  105.73 −0.10 (−0.09%)

News feed for 2023.10.12:
  • – Japan Producer Price Index (m/m) at 02:50 (GMT+3);
  • – UK GDP (m/m) at 09:00 (GMT+3);
  • – UK Industrial Production (m/m) at 09:00 (GMT+3);
  • – UK Manufacturing Production (m/m) at 09:00 (GMT+3);
  • – UK Trade Balance (m/m) at 09:00 (GMT+3);
  • – Eurozone ECB Monetary Meeting Accounts at 14:30 (GMT+3);
  • – US Consumer Price Index (m/m) at 15:30 (GMT+3);
  • – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
  • – US Natural Gas Storage (w/w) at 17:30 (GMT+3);
  • – US Crude Oil Reserves (w/w) at 18:00 (GMT+3);
  • – US FOMC Member Bostic Speaks at 20:00 (GMT+3).

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Economics & Fundamentals Financial News
11 Oct

Why Canada Must Develop Vital Mineral Production

Source: Bob Moriarty  (10/10/23)

Bob Moriarty of 321Gold shares that as conflict rises globally, Canada must develop its rare earth element resources like Defense Metals’ Wicheeda project to secure critical mineral supply chains.

This past weekend’s events in Palestine highlight the rapid evolution of modern warfare. Videos on October 7 showed a US$500 drone controlled by a cell phone dropping a US$50 mortar on a US$10 million tank. This underscores how spending on expensive hardware is pointless when cheap drones are readily available. Tanks are now what outdated battleships were to Pearl Harbor. The real value lies in the technology behind cell phones and drones.

With rising global conflict, securing critical mineral supply chains matters more than concerns over price. By outsourcing most mining and production, the U.S. and Canada made a strategic mistake. China now controls the global market for rare earth elements, vital for electric vehicles, electronics, and defense systems.

I’ve spoken about Defense Metals Corp.’s (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) Wicheeda rare earth project in British Columbia. Located near infrastructure, Defense recently increased the project’s resource by 31% to 45 million tonnes of rare earth oxides. Last week, they began advanced geotechnical drilling for an upcoming pre-feasibility study.

Defense plans to produce 20-25 million tonnes of rare earth oxides — potentially 10% of global output. With no current rare earth production in North America, projects like Wicheeda are critical for economic security. Despite discussing assistance for juniors advancing these deposits, the U.S. and Canada must move swiftly from talk to action.

Defense Metals is an advertiser, and I own shares, making me admittedly biased. However, their corporate presentation is excellent reading for any investors interested in the vital rare earths sector. Due diligence is always essential. The global rare earth supply chain is a coming battleground, and Canada must develop projects like Wicheeda to secure its economic future.

The conflict in Ukraine underscores how vital it is to control supply chains for key technological minerals. China currently dominates rare earth production at nearly 90% of global output. By failing to develop its own domestic rare earth projects, Canada leaves itself vulnerable to supply disruptions during times of conflict.

Companies like Defense Metals offer a path to Canadian rare earth production and independence. Its Wicheeda project has major resource expansion potential and advanced infrastructure. With pre-feasibility studies underway, Wicheeda could be operational within a few years to secure domestic rare earth supply.

Projects like Wicheeda are thus strategic national assets that Canada must leverage. The world is entering an era of resource nationalism surrounding minerals like rare earths. By exercising foresight and enabling domestic production, Canada can guarantee its own technological security and prosperity.

The stakes are clear — as geopolitical tensions rise, rare earths and lithium will be 21st-century economic weapons. Vision is required to invest decisively in vital mineral supply chains. The window of opportunity is closing fast. Canada must act now to develop its resource base and avoid potential supply shocks or conflicts.

Overall, the coming rare earth war makes projects like Wicheeda national security priorities. Canada’s economic future depends on establishing domestic rare earth production. The time for talk is over — concrete action is required to guarantee mineral security and technological leadership. Companies like Defense Metals offer a clear pathway forward if Canada has the courage to seize it.

Important Disclosures:

  1. Defense Metals Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Defense Metals Corp.
  3. Bob Moriarty: I, or members of my immediate household or family, own securities of: Defense Metals Corp. My company has a financial relationship with: Defense Metals Corp. I determined which companies would be included in this article based on my research and understanding of the sector.
  4. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
  5.  This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Financial News Metals
11 Oct

Lithium Co. Sees Heavy Volume as Big Three Automaker Deal Closes

Source: Streetwise Reports  (10/9/23)

The markets were buzzing after the deal between this lithium explorer and big-three automaker Stellantis closed. Find out which newsletter is now recommending this stock.

The US$90 million investment deal in lithium explorer Argentina Lithium & Energy Corp. (LIT:TSX.V; PNXLF:OTC; OAY3:FSE) by big-three automaker Stellantis (formerly Chrysler) has closed.

Upon the announcement of the closing Thursday, LIT was the top trader on the Toronto Venture Exchange Thursday and into Friday morning, when 1.8 million of its shares traded by 10 a.m. ET.

The company’s stock rose 165% from CA$0.23 last week to CA$0.61 Friday morning.

The investment by the auto industry heavyweight in South America’s Lithium Triangle looking for the battery metal vital to the new green economy prompted one watcher, Chris Temple, editor of The National Investor newsletter, to call his readers to action.

“But to be sure: There will be growing production in the years ahead from this region,” Chris Temple of The National Investor wrote.

“This factor is what prompts me to go from watching to recommending with Argentina Lithium & Energy, given the news just out the last few days that car maker Stellantis (today’s owner of the Chrysler and Jeep brands, along with several others) has decided to put US$90 million into LIT’s wholly owned local subsidiary companies exploring these projects,” Temple wrote.

The Stellantis umbrella includes iconic brands like Chrysler, Alfa Romeo, Citroen, Dodge, Fiat, Jeep, Maserati, and Peugeot. Under the agreement, Peugeot Citroen Argentina SA, a Stellantis subsidiary, owns 19.9% of the company’s issued and outstanding shares, and Argentina Lithium will own 80.1%.

Temple also noted that mines bought or consolidated by larger companies will play a part in making the Lithium Triangle economical for investors.

“But to be sure: There will be growing production in the years ahead from this region,” Temple wrote. “And it will be fostered, in part, by O.E.M.’s (original equipment manufacturers) and others placing their much bigger bets today.”

Fundamental Research Corp. analyst Sid Rajeev, while initiating coverage on the company in July, agreed.

Fundamental Research Corp. analyst Sid Rajeev, while initiating coverage on the company in July, agreed.

“As LIT’s projects are close to well-known projects held by majors, the company can be subject to M&A events if it is able to delineate a resource in one or more of its assets,” noted Rajeev, who rated the stock a Buy with a fair value target price of CA$0.52.

Argentina Lithium has acquired resource properties across the Americas, with a considerable focus on Argentina and the Lithium Triangle. Its current projects include

Argentina Lithium’s projects are all within the Lithium Triangle in the Argentinian provinces of Salta and Catamarca. They include Rincon West, Antofalla North, Pocitos, and Incahuasi. All are “salar” properties were the company hopes to produce lithium carbonate from brines enriched in lithium. They are currently at the exploration stage.

The Catalyst: A ‘Fast and Furious’ Transition

Stellantis’ investment highlights the approaching shortage of lithium, a metal it will need for electric vehicle (EV) batteries.

The EV transition is “is coming fast and furious,” Argentina Lithium President and Chief Executive Officer Nikolaos Cacos said.

Stellantis’ investment “allows us to not think about funding anymore as an exploration company,” Cacos said. “I think we can advance all our projects over the next three years, right up to the announcement, define resources and pre-feasibility studies just before . . . (and) announcing making a decision or going forward and commercial production.”

Analysts from Eight Capital predicted that lithium market deficits will widen this decade, and the shortfalls will be driven by demand in North America.

After the issuance of exchange shares and at the close of the transaction, on or about October 4, Stellantis will own at most 19.9% of the common shares (on an undiluted basis) of Argentina Lithium, the company said.

The exchange agreement also provides Stellantis with observer rights to attend Argentina Lithium’s board meetings for as long as Stellantis owns at least 10% of the company and allows it to nominate one director to the Board of Directors.

The companies will enter into a lithium offtake agreement in which Stellantis will buy up to 15,000 tonnes per year of lithium produced by LIT over a seven-year period. The agreement may be extended by the companies.

The supply obligation of the agreement is conditional on the start of commercial lithium production at one or more of Argentina Lithium’s projects, as well as other terms, including Stellantis having a first right of first refusal on the sale of lithium products to third parties after production starts.

Analysts: Market Deficits Will Widen

Lithium is a major component of EV batteries, where it is used as a cathode and electrolyte. A soft, silvery metal with highly reactive and flammable properties, lithium is also used to strengthen alloys, as a high-temperature lubricant, and as a drug to treat bipolar disorder.

Analysts from Eight Capital predicted that lithium market deficits will widen this decade, and the shortfalls will be driven by demand in North America.

The United States’ EV penetration of 6% lags China’s 26% and Europe’s 20%, analysts Anoop Prihar and Alex Riazanov of Eight Capital wrote in a recent research note. But President Joe Biden’s administration has committed to a target of 50% of new vehicle sales being EVs by 2030.

“We estimate North American lithium nameplate production capacity will be 262,900 LCE (million tonnes lithium carbonate) in 2026 based on projects that currently have completed a Definitive Feasibility Study (DFS),” Prihar and Riazanov wrote.

Streetwise Ownership Overview*

Argentina Lithium & Energy Corp. (LIT:TSX.V; PNXLF:OTC; OAY3:FSE)

Retail: 63%
Strategic Investors: 37%
63%
37%
*Share Structure as of 9/29/2023

 

“Although this is a significant increase from the current North American production capacity of 6,000 tonnes LCE, it’s still more than 128,000 tonnes short of what we anticipate will be required by the battery plants. As such, we anticipate the fundamentals underlying lithium demand to remain robust.”

Ownership and Share Structure

The company doesn’t officially share any information regarding management or institutional ownership, but Reuters reported that about 37% was owned by strategic institutions in the most recent reporting.

Its largest shareholders are Lithium Investment Partners LP with 17.68%, Jack Yetiv with 15.24%, Joseph J. Grosso with 3.05%, and the CEO Cacos with 1.04%, according to Reuters.

Its market cap is CA$77.39 million, with 130 million shares outstanding. It trades in a 52-week range of CA$0.60 and CA$0.19.

 

Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Argentina Lithium & Energy Corp.
  2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Financial News Metals
11 Oct

The cryptocurrency market digest (BTC). Overview for 11.10.2023

By RoboForex.com

The price of BTC declined to 27,112 USD on Wednesday.

From a fundamental standpoint, the market is still uneventful, with no indications about the progress of Bitcoin ETF application approvals. The first updates are expected next week, but there is no certainty that they will be positive.

The cryptocurrency sector does not react to investors shifting away from fiat platforms in their risk aversion attempts or risk sentiments. The correlation between BTC’s value and the S&P 500 and Nasdaq indices appears minimal.

Technical levels remain unchanged. Resistance levels are sequentially positioned at 28,000 USD and then 28,500 USD. These levels must be firmly surpassed to target a rise of 30,000 USD.

The cryptocurrency market capitalisation has decreased to 1.06 trillion USD. BTC’s share has risen to 50.1%, while ETH has declined to 17.7%.

Quant launches transaction security technology

Quant has announced the launch of a solution to make blockchain-based banking transactions even more secure. The technology, known as Overledger Authorise, aims to resolve payment-related challenges within the banking sector.

Fidelity considers BTC the safest token

The Fidelity fund confidently believes in BTC’s security as a cryptocurrency. Fidelity Digital Assets’ research states that BTC is both the scarcest and the most decentralised token in the world. Fidelity suggests that BTC is best valued as a monetary commodity. This viewpoint might spark debate among other participants in the cryptocurrency market.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Cryptocurrencies Financial News
11 Oct

Gold Stocks vs. AU$ Gold Ready To Break 16 Year Downtrend

Source: Barry Dawes  (10/9/23)

Barry Dawes of Martin Place Securities shares a quick update on the current state of gold. 

  • Gold higher
  • Gold Index higher
  • Gold stocks vs AU$ Gold ready to break 16 year downtrend

ASX Gold Stocks

Technically magnificent!

  • Backtest on downtrend line
  • Flag formation set
  • Huge volume
  • Probable Right Hand Shoulder

Lots of green today.

And more to come throughout the week.

About to break much higher vs. AU$gold

16-year downtrend — about to be broken.

Head the markets.

 

Important Disclosures:

  1. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
  2. This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Financial News Metals
11 Oct

China is preparing a massive economic stimulus. The International Monetary Fund has lowered its GDP forecast for 2024

By JustMarkets

At Tuesday’s stock market close, the Dow Jones Index (US30) increased by 0.40%, while the S&P 500 Index (US500) added 0.52%. The NASDAQ Technology Index (US100) closed positive by 0.58% yesterday. All three indices hit their 2-week price highs. On Tuesday morning, stocks opened higher amid prospects of additional stimulus in China, which will favor global growth after Bloomberg reported that China is preparing for a new round of stimulus to support its economy. Stocks further extended gains after comments from FRB Atlanta President Bostic reinforced speculation that the Fed is about to take a pause in raising interest rates.

The International Monetary Fund (IMF) warned of persistent inflation and urged the world’s central banks to maintain tight policy until price pressures ease, lowering its 2024 global GDP forecast to 2.9% from July’s forecast of 3.0% and raising its 2024 global inflation forecast to 5.8% from July’s forecast of 5.2%.

Equity markets in Europe were mostly up yesterday. Germany’s DAX (DE40) increased by 1.95%, France’s CAC 40 (FR40) gained 2.01% on Tuesday, Spain’s IBEX 35 (ES35) jumped by 2.19%, and the UK’s FTSE 100 (UK100) closed up by 1.82%. Eurozone economic news on Tuesday lent support to the euro after Italian industrial production unexpectedly rose by 0.2% m/m in August, exceeding expectations of a decrease by 0.3% m/m. ECB Governing Council spokesman Holzmann said yesterday that inflation needs to be kept under control, and supply shocks could force the ECB to raise interest rates one or two more times. This is a more hawkish stance than was previously the case.

Minutes from the Bank of England’s last monetary policy meeting showed that the UK Banking System remains strong enough to support households and businesses even if economic conditions are worse than we expect. The UK banking system has substantial capital reserves and other resources to cover potential losses or cash outflows. Participants believe that interest rates are likely to remain high for an extended period of time.

There was profit taking in crude oil after the IMF lowered its global GDP forecast for 2024. But losses in crude oil were limited by a weaker dollar and heightened fears that the conflict between Israel and Hamas could widen and disrupt crude oil supplies from the Middle East. In addition, the prospect of additional stimulus from China is supporting energy demand and oil prices.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) was up by 2.43%, China’s FTSE China A50 (CHA50) decreased by 0.58%, Hong Kong’s Hang Seng (HK50) added 0.84%, and Australia’s ASX 200 (AU200) ended the day positive by 1.01%.

China is considering widening its budget deficit for 2023 as the government prepares for a new round of stimulus to help the economy reach its 5% growth target. Policymakers may issue an additional 1 trillion yuan ($137 billion) worth of government debt to finance infrastructure spending.

S&P 500 (F)(US500) 4,358.24 +22.58 (+0.52%)

Dow Jones (US30) 33,739.30 +134.65 (+0.40%)

DAX (DE40)  15,423.52 +295.41 (+1.95%)

FTSE 100 (UK100) 7,628.21 +136.00 (+1.82%)

USD Index  105.77 -0.31 (-0.29%)

News feed for 2023.10.11:
  • – US FOMC Member Daly Speaks at 01:00 (GMT+3);
  • – German Consumer Price Index (m/m) at 09:00 (GMT+3);
  • – US FOMC Member Bowman Speaks at 11:15 (GMT+3);
  • – US Producer Price Index (m/m) at 15:30 (GMT+3);
  • – Canada Building Permits (m/m) at 15:30 (GMT+3);
  • – US FOMC Member Bostic Speaks at 19:15 (GMT+3);
  • – US FOMC Meeting Minutes at 21:00 (GMT+3).

By JustMarkets

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Economics & Fundamentals Financial News
← Previous Page
Next Page →