International News 03/10
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China's Overseas Clean Energy Investment Reaches US$100 Billion.
Since the beginning of 2023, Chinese companies have invested a total of $100 billion in clean energy technology projects overseas. The primary objective of these investments is to avoid tariffs imposed by the US and other countries. China is the largest global producer and exporter of solar panels, lithium batteries, and electric vehicles. This dominance has led to concerns that China is flooding the market with its surplus capacity and driving down prices to undercut competitors. China aims to export two-thirds of its clean technology capacity by 2030, and any decoupling from Chinese manufacturing could increase the global energy transition costs by 20%, according to China's senior climate envoy.
Dollar firm as war widens in Middle East.
Following Iran's missile attack on Israel, the dollar remained strong as investors sought safe assets amid concerns of a broader conflict in the Middle East. The euro remained below $1.10 following its largest drop in nearly four months, while the yen and Swiss franc demonstrated resilience. The New Zealand dollar saw a 1.1% decline, while oil prices rose by 2.5%. The US dollar index saw its most significant increase since 25 September, driven by stronger-than-anticipated US job openings data. Israel reported no injuries from the attack, but the possibility of further escalation remained as they vowed to respond and initiated a ground offensive against Hezbollah inside Lebanon. The market is closely monitoring oil prices, with further movement contingent on Israel's response and its potential impact on Iran's military or oil industry. The Australian dollar fell to $0.6883, but positive retail sales data limited the extent of the decline. The value of sterling fell by 0.7%, while the New Zealand central bank is expected to reduce interest rates by 50 basis points.
https://www.cnbc.com/2024/10/02/dollar-firm-as-war-widens-in-middle-east.html
Gold prices flat as dollar strength counters safe-haven demand.
On Wednesday, gold prices remained stable despite the impact of rising tensions in the Middle East, with the stronger dollar offsetting the safe haven demand that typically accompanies such events. Spot gold closed at $2,659.79 per ounce, up by over 1% from the previous session, while US gold futures ended the day down 0.4% at $2,680.90. The missile attack on Israel by Iran has led to concerns that the situation could escalate, increasing the appeal of gold as a safe investment. However, in the absence of further escalation of tensions, it is anticipated that gold will remain below its record highs, with volatile trading conditions to be expected. The dollar continued to strengthen, making gold more expensive for holders of other currencies. Investors are closely monitoring US economic data, including ADP employment data, comments from Federal Reserve officials, and ISM services data, which could have an impact on gold prices. The physical demand for gold has declined in major markets due to the elevated price point. Spot silver prices remained unchanged, while those of platinum and palladium saw slight increases.
https://www.cnbc.com/2024/10/02/gold-prices-flat-as-dollar-strength-counters-safe-haven-demand.html