General Motors to Drop Chevy Bolt Electric Vehicle as It Looks to New Batteries -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil was flat at $80.58 a barrel

--European benchmark gas fell 3.6% to EUR38.42 a megawatt hour

--Gold futures edged up 0.2% to $2,009.70 a troy ounce

--LME three-month copper futures rose 0.6% to $8,578 a metric ton

--Wheat futures edged up 0.1% to $6.54 a bushel

TOP STORY:

GM Lifts Profit Outlook, to Drop Chevy Bolt

General Motors Co. raised its full-year profit outlook, citing consumers' willingness to spend big on high-end models, even as the company tightens its own belt.

The Detroit auto maker also said Tuesday that it would drop the Chevrolet Bolt from its lineup, killing off its first mainstream electric vehicle as it moves to newer battery technology.

GM said it plans to end production of the Chevy Bolt at the year's end, after troubles with battery fires and sluggish sales for the model that helped kick off the auto maker's push into the technology.

GM's decision to unplug the Bolt--while expected by analysts--ends a troubled run for the model, which had become a black eye for the company after battery fires and costly recalls dented its early push into electric vehicles.

The company is also pivoting to new battery technology that will underpin a new generation of EVs. The small SUV, which was introduced in 2016, uses an older battery configuration that GM is retiring.

OTHER STORIES:

Nasdaq Futures Rise on Microsoft Rally; Regional Bank Shares Rise

Futures for the tech-heavy Nasdaq-100 index rose as Microsoft shares surged before the opening bell, while regional bank stocks were on track to rise after Tuesday's selloff.

Earnings continue to roll in and paint a mixed picture of the state of the economy. Boeing is due to report earnings before the opening bell, while Meta Platforms will release results after markets close.

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Honda to Launch EV in North America in 2025

Honda Motor Co. will launch a new mid- to large-size electric vehicle in North America in 2025, part of the auto maker's plans to make its lineup fully electric by 2040.

Honda will also roll out three new electric models in Japan by 2026, Chief Executive Toshihiro Mibe said in a briefing Wednesday.

MARKET TALKS:

Crude Palm Oil Prices Weaken Amid Lower Exports

1004 GMT - Crude palm oil prices fell in late Asian trade, as weaker export data weighed on sentiment, said a Kuala Lumpur-based trader. Weaker Malaysian exports for April 1-25, as well as the volatility in prices of other edible oils likely damped sentiment, he added. The Bursa Malaysia Derivatives contract for July delivery closed MYR64 lower at MYR3,571 a metric ton. ([e-mail])

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Copper Prices Look Well Supported in Longer Run

0803 GMT - Copper prices are likely well supported in the longer run, even though the base metal has retreated in recent sessions amid growing investor concerns over global recession risks, Saxo Bank's Head of Commodity Strategy Ole Hansen says in a note. He says that most commodities have suffered year-to-date declines so far in 2023, as the Fed's tightening and macroeconomic uncertainties weigh on sentiment. But the bank remains optimistic on copper's longer-term potential, citing continued supply tightness based on recent inventory data, as well as the uptrend in structural demand amid the ongoing energy production transition, as many new-energy projects require copper. ([e-mail])

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Oil Edges Higher But Economic Concerns Linger

0747 GMT - Oil prices edge higher following a sharp drop that all-but erased gains made following Saudi-led production cuts. Brent crude oil gains 0.5% to $81 a barrel following a 2.4% fall Tuesday. WTI adds 0.6% to $77.52 a barrel, following a 2.2% drop. Concerns about the health of the U.S. economy have weighed on oil prices, but a stronger-than-expected drop in U.S. crude inventories--according to API data--has helped halt the slide. U.S. crude stocks shrank by over 6 million barrels last week. "A slump in oil refining margins is also weighing on sentiment," ANZ says in a note. "This could lead to lower processing rates at refineries, particularly in Asia." ([e-mail])

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Metals Rise as Dollar Slips

0729 GMT - Metals prices are pushing higher, with the dollar continuing to weaken-- something that had been a headwind for commodity prices last year. Three-month copper is up 0.9% to $8,603.50 a metric ton while aluminum is 0.7% higher at $2,348 a ton. Gold futures are up 0.2% to $2,008.60 a troy ounce. Gold demand in China was strong through the first quarter, with data from the China Gold Association showing that domestic gold consumption rose 12% on year to 296.1 tons, ING says in a note. The bank says much of this was led by strong consumer consumption for jewelry, gold bars and coins following the country's reopening from lockdown. ([e-mail])

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China's Iron-Ore Prices Likely to Remain Weighed by Real Estate Weakness

0555 GMT - China's iron ore futures likely face downward pressure from weaker-than-expected real-estate sector recovery in the world's second largest economy, ANZ Research analysts say. "China's property indicators remain mixed," they say. "Residential property completions and sales are picking up. But new starts are still contracting, which suggests demand for steel is not as strong as expected," they note. Real-estate construction activities are a major source of steel and iron-ore demand in China. The analysts add that property prices are continuing to decline on year in the country, which pose further negative risk for real-estate construction rebound and may consequently weigh on iron ore demand in the coming months. ([e-mail])

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Commodities Related to China Showing Better Demand Prospects

0429 GMT - Divergence in China's economic growth with developed markets is creating uncertainty in commodity markets, as industrial metals and bulks related to China are showing better demand prospects, say ANZ analysts Daniel Hynes and Soni Kumari in a note. Oil demand in China is recovering even as demand concerns in developed markets are looming, the analysts say. With industrial activity improving in China and other regions after the country's reopening, demand for industrial metals has risen and is reflecting in rising spot premiums, they say. ANZ sees supply constraints ahead for major metals increasing especially aluminum due to the hydro power shortages. ([e-mail])

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Aluminum Edges Up Amid Supply-Side Issues

0234 GMT - Aluminum rises in the morning Asian session amid ongoing supply-side issues. Tight power supply in China's Yunnan province associated with the most severe drought in a decade is a significant supply risk, Daniel Ghali, senior commodity strategist at TD Securities, says in a research report. Most of aluminum's rally over the past month seems related to a recovery in demand in April, which helped to support the base-metals complex, Ghali adds. The three-month LME aluminum contract is up 0.3% at $2,342.50 a ton. ([e-mail])

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Gold Edges Higher Amid Risk Aversion Mood

0130 GMT - Gold edges higher in early Asian trade, hovering close to the $2,000/oz level on a risk aversion mood. There's a fresh wave of fear over the U.S. banking system after First Republic Bank released its earnings on Tuesday, stating it lost around $100 billion in deposits. "If the bloodbath on Wall Street gets uglier, investors will eventually pile back into the precious metal," says Craig Erlam, senior market analyst at Oanda, in a note. Spot gold is 0.1% higher at $1,999.45/oz. ([e-mail])

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Iron Ore Futures Drop in Continued Downturn

0108 GMT - China iron ore futures are lower in early Asian trade, as the steel-making metal extends its losses after Beijing officials indicated its intentions to crack down on price speculation. Galaxy Futures analysts in a note say that the regulatory move is likely adding to investor pessimism, with trading sentiment already weighed by slowing steel production in China, in part due to a weaker-than-expected construction and real estate recovery after the country's post-pandemic reopening. They reckon the price downturn may drag on in the near term. The most-traded iron ore contact on the Dalian Commodity Exchange is down 1.7% at CNY706.5 a ton. ([e-mail])

(END) Dow Jones Newswires

04-26-23 0718ET