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Oil steadied as traders weighed a report showing rising US stockpiles against concerns about the fallout from sanctions on Russia.

West Texas Intermediate traded below $61 a barrel, after gaining more than 1% on Tuesday, when Brent closed near $65. The industry-funded American Petroleum Institute reported a 4.4 million barrel increase in US crude inventories, as well as builds in products. That would take oil inventories to the highest in more than five months, if confirmed by official data.

US sanctions against Russian producers Rosneft PJSC and Lukoil PJSC are set to kick in within days, part of efforts to raise the pressure against Moscow to end the war in Ukraine. Ahead of that, some major Asian buyers have paused at least some purchases, and diesel markets have strengthened in Europe.

Oil has lost ground this year, including a run of three monthly declines in the period to October, on concern that worldwide supplies will top demand. The International Energy Agency has forecast a record glut next year, driven by higher output from OPEC+ as well as nations outside the cartel.

In a sign of burgeoning supplies, the amount of crude being carried on tankers hit another high, with the looming US sanctions deadline bolstering traders' attention on the volumes. Almost 1.4 billion barrels were being hauled to destinations or sitting in floating storage last week, according to Vortexa Ltd.

Source: Bloomberg Europe

Chinese zinc producers are ramping up exports after a global supply squeeze opened a rare window for overseas sales.

Output in China, which accounts for over half the world's total, is tracking for an annual record at a time when global inventories of the metal are in sharp decline. Refined zinc exports likely shot up in October as a result, and are expected to rise further in the last two months of the year, as smelters profit from the spike in international prices while their domestic market stagnates.

Export volumes may rise to as much as 50,000 tons for November and December combined, compared with about 10,000 tons in October, according to estimates from Jinrui Futures Co. For much of the last three years, China has exported just a few hundred tons a month.

The last time the country shipped meaningful volumes was after Russia's invasion of Ukraine raised energy prices and triggered worldwide smelter closures. In May 2022, volumes topped 35,000 tons, a monthly record.

Spot zinc's premium to three-month prices spiked to over $300 a ton on the London Metal Exchange last month, signaling an immediate supply shortfall. Although the spread has narrowed to $130 a ton, Chinese exports remain economically viable. The country's zinc output, meanwhile, hit an all-time high of 665,000 tons last month.

The metal is primarily used to galvanize steel. Chinese capacity has continued to expand despite the impact on construction from the nation's unrelenting property slump. That's likely to leave a surplus available for export through the first quarter of 2026 as domestic stockpiles typically build around the Lunar New Year, Zijin Tianfeng Futures Co. said in a note.

Shares of Contemporary Amperex Technology Co. Ltd., up 92% since their listing in Hong Kong this May, are bracing for a crucial test as selling restrictions on early investors expire on Wednesday.

China made its biggest daily purchase of American soybeans in two years, in a move that ends a temporary pause and appears to signal a commitment to a trade truce reached late last month.

Germany is taking a more cautious approach to Beijing's influence over its energy infrastructure.

Source: Bloomberg Europe

Bob Diamond said turmoil in global markets in recent days resembles a "healthy correction" as investors grapple with how to assess elements of technological change and he doesn't expect it to deteriorate into a bear market.

"We've seen risk assets be repriced," said Diamond, the former chief executive officer of Barclays Plc who now runs investment firm Atlas Merchant Capital. "In my sense, this is a healthy correction, not something that's turning into a bear market."

The S&P 500 is down more than 3% this month, on course for its worst month since March, while volatility has surged. A selloff in the world's largest technology companies has reignited a debate on AI, and whether it is generating enough revenue or profit to justify the massive spending on infrastructure.

"What I feel comfortable in is taking a two, three, five-year view of the impact of AI," he said in an interview on Bloomberg Television from Singapore, where he is attending the Bloomberg New Economy Forum.

"I think it will be a real positive in dampening inflation. I think it's going to be incredibly important in terms of productivity in the global economy, and I think some people are confused right now over the valuations."

Diamond also said fiscal spending that's led to elevated sovereign debt piles "is a dark cloud" hanging over markets. Meantime, Wall Street's so-called fear gauge, the Cboe Volatility Index, topped 24 — above the key 20 level that causes concern for traders — and reached its highest in a month.

"We, the group, are very, very positive on what AI can bring in terms of productivity, dampening inflation, global growth," he said. There are numbers that "people really don't understand yet, particularly around data centers."

Source: Bloomberg Europe

Australia's annual wage growth remained elevated last quarter, underscoring a tight labor market and persistently weak productivity and suggesting inflationary pressures may take time to cool in a challenge for policy makers.

The Wage Price Index advanced an annual 3.4% in the three months through September, matching economists' estimate, Australian Bureau of Statistics data showed Wednesday. On a quarterly basis, wages grew 0.8%. The report showed public sector wage growth was higher than the private sector.

The data comes as the Reserve Bank remains cautious and data dependent after lowering borrowing costs three times this year to 3.6%, the lowest level since April 2023. Its focus is now shifting to the likely scope of further reductions given a still-tight labor market and poor productivity growth.

The RBA is closely monitoring the price-setting behavior of firms with the unemployment rate near historically low levels, inflation showing signs of revival and consumer spending proving stronger than predicted. That has led Governor Michele Bullock to signal that further easing is unlikely in the near-term.

Money-market pricing suggests only a slim chance of another rate cut next year, while economists largely expect easing to resume in May.

The central bank on Tuesday predicted unemployment would inch up slightly and hold at 4.4% over its forecast horizon while wages growth would ease to 3% next year.

Economists believe wage growth of around 3% is consistent with the central bank meeting its 2-3% inflation target, given weak productivity growth.

Bullock has previously said the board needs to see better productivity in order to be comfortable that wages can rise without rekindling inflationary pressures. The government is aware and is working to generate ideas to boost efficiency in the economy.

Wednesday's data showed private sector annual wage growth was 0.7%, while the public sector climbed 0.9%.

Source: Bloomberg Europe

Source: Yahoo Finance

Source: Bloomberg Europe