Wealthion Macro Bites 6-4
Following negotiations in Washington, the U.S. State Department released a U.S./Lebanon joint statement announcing Israel and Lebanon have agreed to a formal ceasefire, contingent on cessation of fire from Hezbollah and evacuation of its operatives from the South Litani Sector. The agreement follows Iran’s demand for an end to Lebanon hostilities as condition to a broader agreement. On Wednesday, President Trump said talks could produce a breakthrough “over the weekend,” but Iran's foreign minister Abbas Araghchi countered that negotiations had made "no tangible progress."
Kuwaiti authorities revealed the Iranian drone attack on the Kuwait International Airport caused extensive structural damage, killed one person and injured 63 others. Despite widely circulating videos of the Iranian drone impacting the airport (https://www.bbc.com/news/videos/c1j2640ln88o), Iran's IRGC claimed Iran did not fire on Kuwait's airport and blamed the destruction on U.S. interceptor missiles which failed to hit their targets.
Responding to global coordination to reduce reliance on Chinese critical minerals, China has chosen a new state investment company to coordinate its overseas metals and mining deals. The National Development and Reform Commission (China’s economic planning agency) will assume oversight of all mining investment decisions, with state-owned Guangyan International Investment Co. offering support on compliance and financing. Guangyan (established in ’24) has registered capital of $8.9B and will coinvest with Chines firms in overseas resource projects.
Bloomberg reports President Trump plans to invoke the (Cold War-era) Defense Production Act to spend $700M to support coal facilities, with $350M+ dedicated to upgrades of 13 coal plants, $185M to match corporate funding of new coal facilities in Alaska, Maryland and West Virginia, and $75M to construction of the long-proposed West Gateway export terminal in Northern California.
Zambia has extended suspension of its 10% export duty on copper concentrate through September 30 in effort to clear mounting stockpiles of unprocessed material as the country's major smelters undergo extended maintenance and repairs.
Euro Stoxx 50 little changed, S&P futures -0.5% and Nasdaq futures -1.4%. European bonds trading higher by 2bps-4bps across the board. 10-year Treasury yield -4.1bps (4.453%). DXY dollar index -0.33%, spot gold +1.6% and spot silver +2.4%. Brent futures -2.95% (494.95) and WTI futures -2.8% ($93.32).
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