LIVE MARKETS-The market for uranium: An EM opportunity?Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at [email protected]
THE MARKET FOR URANIUM: AN EM OPPORTUNITY? (0800 GMT)
The recent price surge in uranium poses a big opportunity for emerging markets (EMs), Tellimer researchers wrote in a note.
With prices rising to dizzying heights in light of renewed demand, countries are significantly expanding the construction of new reactors, most notably China, India and Turkey, wrote Dhruv Madia at Tellimer Research.
The rally could extend further as demand is set to nearly double by 2040, according to a report by the World Nuclear Association. And interestingly, while global demand is on the rise, supply will fall short by 51,709 tonnes by 2035, according to a report by a U.S. think tank.
In that light, it is notable that eight of 10 of the leading uranium producers are EMs, out of which Kazakhstan, Namibia and Russia boast substantial reserves, in addition to Uzbekistan, Niger, China, India and South Africa.
Kazakhstan, Namibia and Russia together account for about 30% of global uranium reserves, while Australia and Canada account for a combined 40%. By dominating exports of uranium reserves, these countries could improve their trade balances and economic growth, writes Madia.
In terms of the top producers, prominent firms to watch closely include Kazatomprom KAPq.L, Cameco CCO.TIO, Uranium One, Orano, Swakop Uranium, Navoi Mining, BHP BHP.AX, Quasar QUAS.BO, CNNC CNNC.PK, and ARMZ ARMZI.RTS, which collectively account for 90% of global uranium production.
The VanEck Uranium+Nuclear Energy ETF NLR.NQT is up about 30% year-to-date, while the Sprott Uranium ETF URNM.K and the Global X Uranium ETF URA are hovering near levels not seen since 2021 and 2022, respectively.
(Anisha Sircar)
*****
EUROPEAN FUTURES STEADY (0641 GMT)
European shares looked set to open around parity on Monday as traders geared up for a raft of manufacturing PMI data and following a last-minute deal to avert a U.S. government shutdown that gave some support to Wall Street futures.
EuroSTOXX50 contracts were last little changed, while FTSE futures fell 0.2%. Derivatives on the S&P 500 index edged 0.5% higher.
Corporate news-flow was thin, as the final quarter of the year kicked in.
Telecoms could be in focus after the FT reported that BT, Deutsche Telekom, Telefonica and other operators have called on the EU to compel Big Tech to pay a fair contribution for using their networks.
BBVA could find support after starting its 1 billion euros ($1.06 billion) share buyback. Meanwhile, UBS said it was not aware of a probe by the U.S. into alleged sanctions-related compliance failures, after a media report last week.
BAE Systems also look set for a positive start after it was awarded a $4.9-billion contract as part of the AUKUS defence programme with Australia and the United States to build attack submarines.
(Danilo Masoni)
*****
MARKETS STRAP IN FOR PMI DATA DUMP (0553 GMT)
After a rough September, investors will be looking for something positive to kick off the fourth quarter, although a dump of economic data from Europe on Monday may not give them the lift they want.
A round of purchasing managers index (PMI) data from across the globe continues with Europe on Monday, following Chinese PMI data over the weekend that pointed to mixed levels of services and manufacturing activity last month.
Markets have been feeling the pain after stocks, bonds and non-dollar currencies around the world mostly fell in the previous month, as investors adjusted to the idea that U.S. interest rates will stay elevated for longer.
Meanwhile, the euro zone has been grappling with recession jitters amid a slew of other indicators, putting a damper on last week's good news that inflation in the area fell to its lowest in two years.
Monday's final manufacturing PMI data from the EU will be closely watched after the preliminary report last month painted a mixed picture of the region's economic health; the index showed a rise in September from August's 33-month low, yet still lingered below the mark separating expansion from contraction.
Chinese markets are closed all week for holidays and Indian markets are shut on Monday, but this week will give investors and central banks alike plenty of fresh material to go on, including euro zone unemployment numbers out on the same day and the crucial producer price index later in the week.
Meanwhile, oil prices are up again on Monday, reversing some of Friday's losses.
As usual, the future of the Federal Reserve interest rates will be in focus as several U.S. central bank officials prepare for speeches scheduled through the week, starting with a handful of Fed speakers on Monday.
Regardless of indicator results, markets can find at least some temporary cheer in a last-minute stopgap funding bill that allows the U.S. government to keep operating through Nov. 17, meaning key data releases from the world's largest economy, including Friday's monthly payrolls report, will be rolled out on time.
Key developments that could influence markets on Monday:
-September final manufacturing PMI for euro zone, Germany, France, Italy, Spain, Switzerland, Sweden, UK and U.S.
-August unemployment data for euro zone and Italy
-September UK house prices
-Central bank speakers: ECB Vice President Luis de Guindos, Fed Vice Chair for Supervision Michael Barr, NY Fed President John Williams, Philly Fed President Patrick Harker, Cleveland Fed President Loretta Mester
(Brigid Riley)
*****
($1 = 0.9460 euros)
LIVE MARKETS-The market for uranium: An EM opportunity?Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at [email protected]
THE MARKET FOR URANIUM: AN EM OPPORTUNITY? (0800 GMT)
The recent price surge in uranium poses a big opportunity for emerging markets (EMs), Tellimer researchers wrote in a note.
With prices rising to dizzying heights in light of renewed demand, countries are significantly expanding the construction of new reactors, most notably China, India and Turkey, wrote Dhruv Madia at Tellimer Research.
The rally could extend further as demand is set to nearly double by 2040, according to a report by the World Nuclear Association. And interestingly, while global demand is on the rise, supply will fall short by 51,709 tonnes by 2035, according to a report by a U.S. think tank.
In that light, it is notable that eight of 10 of the leading uranium producers are EMs, out of which Kazakhstan, Namibia and Russia boast substantial reserves, in addition to Uzbekistan, Niger, China, India and South Africa.
Kazakhstan, Namibia and Russia together account for about 30% of global uranium reserves, while Australia and Canada account for a combined 40%. By dominating exports of uranium reserves, these countries could improve their trade balances and economic growth, writes Madia.
In terms of the top producers, prominent firms to watch closely include Kazatomprom KAPq.L, Cameco CCO.TIO, Uranium One, Orano, Swakop Uranium, Navoi Mining, BHP BHP.AX, Quasar QUAS.BO, CNNC CNNC.PK, and ARMZ ARMZI.RTS, which collectively account for 90% of global uranium production.
The VanEck Uranium+Nuclear Energy ETF NLR.NQT is up about 30% year-to-date, while the Sprott Uranium ETF URNM.K and the Global X Uranium ETF URA are hovering near levels not seen since 2021 and 2022, respectively.
(Anisha Sircar)
*****
EUROPEAN FUTURES STEADY (0641 GMT)
European shares looked set to open around parity on Monday as traders geared up for a raft of manufacturing PMI data and following a last-minute deal to avert a U.S. government shutdown that gave some support to Wall Street futures.
EuroSTOXX50 contracts were last little changed, while FTSE futures fell 0.2%. Derivatives on the S&P 500 index edged 0.5% higher.
Corporate news-flow was thin, as the final quarter of the year kicked in.
Telecoms could be in focus after the FT reported that BT, Deutsche Telekom, Telefonica and other operators have called on the EU to compel Big Tech to pay a fair contribution for using their networks.
BBVA could find support after starting its 1 billion euros ($1.06 billion) share buyback. Meanwhile, UBS said it was not aware of a probe by the U.S. into alleged sanctions-related compliance failures, after a media report last week.
BAE Systems also look set for a positive start after it was awarded a $4.9-billion contract as part of the AUKUS defence programme with Australia and the United States to build attack submarines.
(Danilo Masoni)
*****
MARKETS STRAP IN FOR PMI DATA DUMP (0553 GMT)
After a rough September, investors will be looking for something positive to kick off the fourth quarter, although a dump of economic data from Europe on Monday may not give them the lift they want.
A round of purchasing managers index (PMI) data from across the globe continues with Europe on Monday, following Chinese PMI data over the weekend that pointed to mixed levels of services and manufacturing activity last month.
Markets have been feeling the pain after stocks, bonds and non-dollar currencies around the world mostly fell in the previous month, as investors adjusted to the idea that U.S. interest rates will stay elevated for longer.
Meanwhile, the euro zone has been grappling with recession jitters amid a slew of other indicators, putting a damper on last week's good news that inflation in the area fell to its lowest in two years.
Monday's final manufacturing PMI data from the EU will be closely watched after the preliminary report last month painted a mixed picture of the region's economic health; the index showed a rise in September from August's 33-month low, yet still lingered below the mark separating expansion from contraction.
Chinese markets are closed all week for holidays and Indian markets are shut on Monday, but this week will give investors and central banks alike plenty of fresh material to go on, including euro zone unemployment numbers out on the same day and the crucial producer price index later in the week.
Meanwhile, oil prices are up again on Monday, reversing some of Friday's losses.
As usual, the future of the Federal Reserve interest rates will be in focus as several U.S. central bank officials prepare for speeches scheduled through the week, starting with a handful of Fed speakers on Monday.
Regardless of indicator results, markets can find at least some temporary cheer in a last-minute stopgap funding bill that allows the U.S. government to keep operating through Nov. 17, meaning key data releases from the world's largest economy, including Friday's monthly payrolls report, will be rolled out on time.
Key developments that could influence markets on Monday:
-September final manufacturing PMI for euro zone, Germany, France, Italy, Spain, Switzerland, Sweden, UK and U.S.
-August unemployment data for euro zone and Italy
-September UK house prices
-Central bank speakers: ECB Vice President Luis de Guindos, Fed Vice Chair for Supervision Michael Barr, NY Fed President John Williams, Philly Fed President Patrick Harker, Cleveland Fed President Loretta Mester
(Brigid Riley)
*****
($1 = 0.9460 euros)
