Trump Says Oil Majors Will Invest $100 Billion in -2-

0951 GMT - European energy companies gain as geopolitical risks pushed oil prices higher overnight. U.K. oil majors Shell and BP climb 1.7% and 1.55% respectively, while French TotalEnergies rises 1.7%. Norwegian energy company Equinor gains 2.3%, while Spain's Repsol moves more modestly, gaining 0.7%. Portugal's Galp Energia climbs 1.4%. Oil benchmarks settled more than 3% higher overnight after President Trump renewed warnings against Iran, while a U.S. congressional bill to further sanctions on Russian oil advanced. Meanwhile, merger talks between Galp and Spain's Moeve sent positive signals on the value of Iberian energy companies, Citi analyst Alastair Syme writes. ([e-mail])

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London's Miners Lead FTSE 100 Index -- Market Talk

0945 GMT - London's miners lead the FTSE 100 index in morning trade. Glencore is the stand-out performer, rising more than 8.5% to lead the bourse after it said it was in talks with rival Rio Tinto on a possible combination. Conversely, Rio's London shares fall around 1.5%. Copper is at the centre of the possible deal, analysts write, and miner Antofagasta rises nearly 4%. Silver and gold miner Fresnillo is up 3.4% while Anglo American trades 2.8% higher. ([e-mail])

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Gold Rises Ahead of Key U.S. Economic Data -- Market Talk

0845 GMT - Gold prices rise as traders await crucial U.S. economic data due later Friday for more cues on the path of interest rates this year. Futures in New York are up 0.4% to $4,478 a troy ounce and are headed for a weekly gain of 3.4%. "Attention is now on [Friday's] December nonfarm payrolls report, which is expected to show solid hiring but steady unemployment--a mixed picture that may reduce urgency for the Fed to resume rate cuts," Soojin Kim from MUFG says. "Traders are also closely watching the upcoming selection of a new Fed chair, with Treasury Secretary Scott Bessent saying President Trump is expected to name a successor to Jerome Powell later this month." ([e-mail])

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European Indexes Inch Up as Miners Surge -- Market Talk

0840 GMT - European indexes open higher as miners and energy companies gain across the continent ahead of a crucial jobs print and Supreme Court decision on tariffs in the U.S. London's FTSE 100 gains 0.25%, led by Glencore which shoots up 7.4% after announcing merger talks with Rio Tinto. The Italian FTSE MIB gains, led by mining services stocks, while the German DAX lifts 0.1%--after closing at another record high Thursday--as a slip in the country's financial stocks offsets gains for energy companies. Siemens gains 1.9%. Spain's IBEX 35 rises 0.35% as the country's bank stocks lift. The French CAC 40--up 0.7%--is boosted by gains for luxury stocks which are major constituents in the index. Kering gains 2.4%, while Hermes and LVMH both rise around 1.5%. ([e-mail])

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Oil Gains Further With Focus on Geopolitical Risks

0839 GMT - Oil prices extend gains as traders monitor geopolitical developments, with Brent crude and WTI both rising 0.9% to $62.57 a barrel and $58.33 a barrel, respectively. The benchmarks settled more than 3% higher in the previous session and are now on track for solid weekly gains, supported by President Trump's warning that the U.S. would hit Iran "very hard" if the government there violently suppresses protesters. Sentiment was further lifted by a U.S. congressional bill that would allow for hefty sanctions against buyers of sanctioned Russian oil. Meanwhile, markets await a Friday meeting between Trump and American oil executives to discuss investments in Venezuela's oil sector. ([e-mail])

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Rio Tinto-Glencore Merger Talks Centered on Copper -- Market Talk

0727 GMT - Copper is at the center of Rio Tinto's merger talks with commodity giant Glencore, Berenberg's Richard Hatch and Jasper Mainwaring write. Glencore has already taken steps to prepare less-attractive units for spinning off, they note. Its coal and ferroalloys units have been placed into a separate vehicle that could be divested, they say. Getting rid of these assets would give the Rio-Glencore combined entity an attractive decarbonization story while increasing its exposure to copper, they say. Rio Tinto long divested of its coal assets in a decarbonization push, they add. Rio Tinto's Australia-listed shares fell by more than 6% while Glencore's American depositary receipts rose by more than 8% in New York.([e-mail])

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Rio Tinto-Glencore Combination Could Be a Win-Win -- Market Talk

0702 GMT - A tie-up between Glencore and Rio Tinto could be win-win for both parties, RBC Capital Markets analyst Ben Davis writes. Glencore has been marketing itself up for a sale for a while, he says. Examples include exploring a carve-out of its less-desirable units and touting its copper potential, he says. A merger would give Rio Tinto the copper it needs while diluting its exposure to iron ore, Davis writes. The combination would also unlock value for Glencore shareholders, he notes. Glencore is likely a willing seller but its coal business could be an obstacle to any deal, he adds. Rio Tinto's Australia-listed shares fell by more than 6% while Glencore's American depositary receipts rose by more than 8% in New York.([e-mail])

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Regulatory Intervention in China Solar Sector Likely to Deepen Challenges -- Market Talk

0327 GMT - Regulatory intervention in China's solar industry will likely worsen polysilicon selling-price volatility in the short term and overcapacity challenges, DBS Group Research analysts say in commentary. The sector's "self discipline" measures to coordinate production cuts and balance supply and demand are deemed to violate the country's antimonopoly law, the analysts say. However, the removal of these measures could pressure polysilicon prices and intensify sector competition, potentially leading to greater losses for manufacturers. DBS expects market consolidation to take a longer time, and the industry will need to rely on government policies, such as energy-efficiency standards and pricing regulation. The bank has a negative view on China's solar sector and is reviewing its rating and target price on GCL Technology, last rated a buy. ([e-mail])

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Iron Ore Falls Amid Ample Supply, Weakening Chinese Steel Demand -- Market Talk

0315 GMT - Iron ore falls in early Asian trading, with the most-traded iron-ore contract on the Dalian Commodity Exchange down 0.6% at 815.50 yuan a ton. There haven't been significant changes in market fundamentals, as a loose supply backdrop and weakening steel demand in China are expected to continue this year, Galaxy Futures analysts say in commentary. They forecast Chinese domestic steel consumption to stay subdued, with the faster-than-expected slowdown in demand likely to dominate medium-term pricing and limit upside potential. ([e-mail])

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Crude Palm Oil Prices Likely Softer in 2026 -- Market Talk

0106 GMT - Crude palm oil prices could be slightly lower in 2026, given more balanced global supply and demand dynamics, though geopolitics and policy changes could cause volatility, RHB IB analyst Hoe Lee Leng says in a note. La Nina phenomenon and Indonesia's planned B50 biodiesel rollout could provide some price support, while developments in the China-U.S. agreement on soybeans and U.S. biofuel policy pose downside risks, she says. Hoe forecasts CPO prices at 4,250 ringgit a ton, versus 4,306 ringgit a ton in 2025. RHB maintains a neutral rating on Southeast Asia's plantation sector, pegging Johor Plantations, Sarawak Oil Palms, IOI Corp. and London Sumatra Indonesia as top picks. ([e-mail])

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(END) Dow Jones Newswires

01-09-26 0706ET