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Today
Discussion: Beijing Strikes Back
Premium: BOA Commodity Analysis
Discussion:
Beijing Strikes Back Banning Critical Metal Exports to US
(GoldFix) In a sharp response to new export restrictions imposed by Washington, China has banned shipments of several critical minerals and metals to the US.
These materials, essential for semiconductor manufacturing and military applications, include gallium, germanium, antimony, and superhard materials. Beijing also announced tighter export controls on graphite, further escalating the ongoing trade and technology conflict.
Key Takeaways:
China’s leverage
US diversification
Escalation risk:
What About Gold and Silver?
China on Left, US on Right (Trump additions in light Blue)
The S&P 500 and Nasdaq Comp closed at new record highs. Large caps bested small caps: S&P 500 (+0.05%) vs. Russell 2000 (-0.73%). MSCI Emerging Markets (EEM) and MSCI EAFE (EFA) rose 0.21% and 0.57% respectively.
Market News:
"China has banned shipments to the US of several minerals and metals used in semiconductor manufacturing and military applications, in a rapid retaliation by Beijing against new export controls from Washington. China’s commerce ministry on Tuesday said it would prohibit the export to the US of dual-use items that include gallium, germanium, antimony and superhard materials, and would impose stricter controls related to graphite." Source: FT
"BlackRock has agreed to buy private-credit manager HPS Investment Partners in a roughly $12 billion all-stock deal that would substantially add to its coveted private-asset pile. The acquisition would give Chief Executive Larry Fink a significant foothold in what is now one of the hottest markets on Wall Street. WSJ
"When it comes to how the U.S. wields tariffs, there is China and then the rest of the world. President-elect Donald Trump made tariffs on China a defining feature of his first term. President Biden mostly kept those duties in place—and directed tariff increases on products like semiconductors and electric vehicles." Source: WSJ
Politics/Geopolitics:
South Korean President Yoon announced on Tuesday the lifting of martial law after parliament voted to block it.
South Korean main labour union group called for a general strike until South Korean President Yoon resigns, according to AFP.
BoK said it will increase short-term liquidity measures starting Wednesday and will loosen collateral policies in the repo operation to ease any bond market jitters
South Korea's regulator said it is ready to deploy the KRW 10tln stock market stabilisation fund anytime, according to Yonhap.
Hamas said they have not received any new offer regarding the ceasefire in Gaza, according to Al-Arabiya.
Syrian army announced the entry of the largest military convoy to the countryside of Hama to support the forces deployed on the fronts, according to Al Arabiya.
US and South Korea postponed planned defence talks and joint military exercises that were scheduled this week.
