Stellantis, CATL to Invest $4.33 Billion in EV -2-

Oil Eases But Mideast Turmoil, China Optimism Provide Support -- Market Talk

0916 GMT - Oil prices ease in early European trade but keep most of Monday's gains, supported by turmoil in the Middle East and positive signals from China. Both crude benchmarks Brent and WTI are broadly flat at $72.15 and $68.34 a barrel, respectively. "Rising geopolitical tension in the Middle East following the collapse of the Syrian government has added a little risk premium to crude oil prices," ANZ Research analysts say. Meanwhile, Chinese crude oil imports rose in November, sending positive signs about demand trends in the world's top crude importer. The market now awaits monthly reports from OPEC and the IEA later this week and the Fed's meeting on Dec. 17-18, as an interest-rate cut could boost oil demand in the world's biggest economy. ([e-mail])

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Gold Futures Flat After Monday Rally on China Bank Buying, Haven Demand -- Market Talk

0903 GMT - Gold futures are broadly flat after closing higher on Monday. Futures are flat at $2,685.90 a troy ounce. The precious metal closed 0.8% higher in the prior session, having climbed as high as $2,700 an ounce. Gold was buoyed by renewed optimism for fiscal stimulus from China, and safe-haven demand amid geopolitical tensions in the Middle East and Europe, market watchers say. The rally also reflects the resumption of bullion purchases by China's central bank, says Swissquote Bank's Ipek Ozkardeskaya. The bank's renewed buying after a six-month pause is likely in order to support a loosening of monetary policy and perhaps to decrease exposure to U.S. Treasuries, Ozkardeskaya says in a note. The precious metal has the potential to extend its gains on global political, geopolitical and economic uncertainties, Ozkardeskaya adds. ([e-mail])

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Gold's Long-Term Upside Still Intact, Citi Research Says -- Market Talk

0739 GMT - Gold's long-term upside is still intact, Citi Research's analysts say in a report. The U.S. bank continues to see scope for the precious metal's prices to rise, supported by ongoing deterioration of the U.S. labor market, still-elevated interest rates weighing on growth and higher demand for ETFs. Long-term themes including rising global debt levels amid continued "de-dollarization" are also structurally positive for the commodity, the analysts say. Citi remains bullish on gold, with unchanged targets of $2,800/oz for up to three months and $3,000/oz for six to 12 months. Spot gold is 0.4% higher at $2,669.26/oz. ([e-mail])

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Australia's Battery Storage Profitability Is Improving -- Market Talk

0452 GMT - Volatile power prices are improving the profitability of battery storage projects in Australia, according to energy analyst Wood Mackenzie. It says that the revenue uncertainty that has been a key constraint on project financing is easing, with investment returns for 4-hour systems in the country's three top electricity market regions exceeding 10%. Price spikes and falling costs are helping improve the viability of projects, Wood Mackenzie says in a report. By 2030, over 80% of battery project revenues in Australia will come from energy arbitrage, it adds. ([e-mail])

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Iron Ore Gains as China's Politburo Signals Economic Support -- Market Talk

0227 GMT - Iron ore rises in early Asian trade after China's Politburo signals increased support for the struggling economy. On Monday, China's top decision-making body pledged to boost domestic demand and stabilize the housing and property markets. Market sentiment has improved following the Politburo meeting, ANZ Research notes in a report. "The statement signals potential rate cuts, fiscal expansion and asset buying ahead," the analysts say. Attention now turns to China's Central Economic Work Conference later this week for more details on economic targets and stimulus plans. The most-traded iron ore contract on the Dalian Commodity Exchange is up 3.0%, trading at CNY826.00. ([e-mail])

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Copper Edges Lower; Investors Remain Cautious -- Market Talk

0240 GMT - Copper edges lower in the early Asian session. While overall market sentiment is bullish due to supportive comments from Chinese policymakers signaling stronger stimulus to come, there are lingering doubts surrounding China's long-term growth prospects, particularly in the construction sector, Daria Efanova, head of research at Sucden Financial writes in a note. It will require more than just stimulus measures to truly reignite economic growth, and this has kept investors in the metals market more cautious, Efanova says. The three-month LME copper contract is 0.1% lower but remains above the $9,200 level at $9,222.50/ton. ([e-mail])

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(END) Dow Jones Newswires

12-10-24 0759ET