Anglo American Swings to Net Loss on $1.6 Billion Impairment — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is down 1.8% to $79.35 a barrel

--European benchmark gas is down 2.3% at EUR31.86 a megawatt-hour

--Gold futures are down 2% at $2,368.00 a troy ounce

--LME three-month copper futures are down 0.5% at $9,004.00 a metric ton

TOP STORY:

Anglo American Swings to Net Loss on $1.6 Billion Impairment

Anglo American swung to a net loss in the first half of the year after booking an impairment of $1.6 billion related to its crop-nutrients project in the U.K., a result of the mining major's group-wide reorganization.

The diversified mining group said Thursday that it booked a net loss of $672 million in the half-year from a profit of $1.26 billion a year ago, while underlying earnings before interest, taxes, depreciation and amortization-its preferred metric-fell 3% to $5.0 billion.

Revenue fell 8% to $14.46 billion. Analysts had forecast $1.12 billion in net profit on revenue of $14.27 billion, according to a Visible Alpha-compiled consensus.

OTHER STORIES:

TotalEnergies Expects Flat Third-Quarter Hydrocarbon Output After Net Profit Slips

TotalEnergies said it expects third-quarter hydrocarbon production to remain largely unchanged from the second quarter, as it reported a fall in net profit for the three months to the end of June.

The French oil-and-gas major said it expects to produce between 2.4 million and 2.45 million barrels of oil equivalent a day in the third quarter.

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Nestle Lowers Sales Guidance as Shoppers Seek Cheaper Goods

Nestle cut its full-year sales guidance after it slowed the pace of price hikes as cash-strapped shoppers continue to seek cheaper alternatives to branded products.

The Swiss maker of KitKat chocolate bars and Nescafe coffee said Thursday that pricing is being pressured by increased promotional activity, among other things, and that it now expects to report organic sales growth of at least 3% this year, from around 4% previously.

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Posco Holdings Reports Lower Second-Quarter Earnings

Posco Holdings posted an earnings decline in the second quarter as the South Korean steelmaker continued to grapple with sluggish demand.

The downbeat results from the world's sixth-largest steelmaker, which returned to profit in the first quarter, suggest that the recovery from an industry downturn could be slow and gradual.

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Fortescue's Annual Iron-Ore Shipments Roughly Flat on Year

Australia's Fortescue said its iron-ore shipments were broadly flat over the past year, as it grappled with setbacks including a derailment and heavy rain.

Fortescue said it shipped 191.6 million metric tons of the steel ingredient in the 12 months through June, compared to 192.0 million tons in the year before.

MARKET TALKS:

Europe's Gas Prices Fall Despite Strong LNG Demand in Asia -- Market Talk

1203 GMT - European gas prices are trading lower on Thursday on easing supply issues and ample storage levels. Texas-based Freeport LNG--a key U.S. exporting facility--resumed shipments after being hit by Hurricane Beryl; while EU storage is currently 83.37% full, according to industry group Gas Infrastructure Europe. Still, prices settled higher in the previous trading session as interest on LNG spot cargoes in Asia remains strong. "Investment funds increased their net long in TTF by 5 TWh [terawatt hour] over the last reporting week to a little over 131 TWh," ING analysts say in a note. "Speculators continue to hold a sizeable position in TTF, despite the comfortable storage situation in Europe." Benchmark Dutch TTF is down 2.3% at EUR31.89 a megawatt hour.(giulia.petroni@wsj.com)

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Palm Oil Ends Lower, Following Soybean Oil Despite Robust Demand Outlook -- Market Talk

1019 GMT - Palm oil prices fell, tracking weakness in the soybean oil market and lower palm olein prices, says David Ng, a trader at Kuala Lumpur-based proprietary trading company Iceberg X. However, a stronger demand outlook pared the losses after estimates from cargo surveyor AmSpec showed that July 1-25 palm oil exports rose 32% on month, says Low York Hong, AmInvestment Bank's head of futures broking. The Bursa Malaysia Derivatives contract for October delivery ended MYR7 lower at MYR3,918 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

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Poor Risk Appetite Hits Commodity Currencies -- Market Talk

1108 GMT - Weaker investor risk appetite continues to weigh on risk-sensitive G-10 commodity currencies including the Norwegian krone, New Zealand dollar, Canadian dollar and Australian dollar, MUFG Bank says. The deterioration in investor risk sentiment was again evident overnight with the tech-led selloff in U.S. equities, MUFG Bank analyst Lee Hardman says in a note. The Canadian dollar was also undermined by the Bank of Canada's 25 basis points interest rate cut on Wednesday, he says. USD/CAD hits a three-month high of 1.3846, according to FactSet. EUR/NOK rises to a one-year high of 12.0766. NZD/USD drops to a 12-week low of 0.5901 while AUD/USD declines to a 12-week low of 0.6518. (renae.dyer@wsj.com)

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Metals Fall Amid Demand Concerns, Looming U.S. Data -- Market Talk

0755 GMT - Metal prices are falling on Thursday, with gold retreating below the $2,400 mark amid some profit taking ahead of key U.S. data and copper extending recent losses on Chinese demand concerns. "Sentiment remains weak across the commodity sector," ANZ Research analysts say in a note, citing disappointing stimulus measures from China and easing supply issues. Gold futures are 1.7% lower at $2,375.00 a troy ounce, while three-month copper is down 0.7% to $8,989.50 a metric ton. Markets now turn their focus to U.S. GDP and PCE price index data to weigh their expectations on the timing of interest-rate cuts. (giulia.petroni@wsj.com)

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Oil Falls As Chinese Demand Concerns Offset U.S. Inventory Draws -- Market Talk

0741 GMT - Oil prices are falling amid broader negative sentiment across commodities, with concerns over the demand outlook in top importer China outweighing U.S. weekly inventory draws. Brent and WTI are both down 0.9% at $80.11 and $76.87 a barrel, respectively. "Crude oil ended the session lower amid low liquidity and strong selling from quant funds," ANZ Research analysts say in a note to clients. "WTI fell below both its 50-day and 100-day moving averages, levels that normally provide some technical support." Investors now await U.S. GDP figures for the second quarter due later on Thursday and PCE price index data on Friday for more cues on the path of inflation and interest-rate cuts this year. (giulia.petroni@wsj.com)

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Iron Ore Falls Amid Weak Demand Outlook -- Market Talk

0251 GMT - Iron ore prices are trading lower as high inventories and weak demand have soured investor appetite for the commodity, analysts say. The absence of further stimulus for China's property sector has added to the weak demand outlook, ANZ Research says. The most-traded iron-ore contract on the Dalian Commodity Exchange is down 1.4% at CNY754.00/ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

July 25, 2024 08:29 ET (12:29 GMT)

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