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This week, global markets have been wild and volatile as players look to implement their version of the Trump trade.
The TSX index was up throughout the week, reaching another all-time high, going above 25,100 twice this week, but this morning pointed downward. The Bank of Canada is expected to announce another interest rate cut in December. The economy, while not anticipated to enter a recession, remains hampered by persistent challenges such as elevated unemployment rates, subpar productivity, and burdensome regulation that stifles investment. Furthermore, perceptions of President Trump's policies are generally unfavourable in Canada and Mexico, which are critical trading partners for the U.S.
U.S. analysts believe that “Trump 2.0” represents a major regime change, bringing tax cuts, increased tariffs, and decreased regulation, and that the major geopolitical crises could be settled sooner rather than later, bringing better economic growth. Federal Reserve Chair Jerome Powell said that "the economy is not sending any signals that we need to be in a hurry to lower rates, as Inflation is running much closer to our 2% goal, but it is not there yet, sitting at 2.6% in October." A rate cut of 0.25% may still come in December because of the concern about the tremendous cost of servicing the federal debt at current interest rate levels. The U.S. Bond Market is signalling “no more rate cuts.” Rate cuts are expected from the European Central Bank. More than 60 global central banks are reducing interest rates in response to pressing economic needs. Consequently, the widening gap in bond rates is attracting a significant influx of capital to the U.S. as investors seek more favourable returns.
The U.S. dollar has been up 3.3% in the last month and is making a new high for the year, up 5.2%, to date. The latest stimulus plan in China, designed to bolster the property market and stir consumer spending, has failed to impress. Chinese factory output remains constrained, leading to wage cuts and unemployment. Europe has its own set of problems. The position of the $USD as a reserve currency may not be as threatened as rumoured.
The gold market is currently experiencing a repositioning of assets, leading to increased selling pressure following the U.S. election. Gold prices dipped to USD$2,535 per ounce on Thursday, but rebounded to USD$2,573 per ounce by Friday morning. This represents a decrease of more than USD$200 (7.5%) from recent highs. Despite these fluctuations, the fundamental argument for gold as a prime risk investment remains robust. Current lower prices should be viewed as attractive entry points, particularly as gold prices traditionally rise in the spring.
Base metals prices continued to weaken this week, with prices declining through October, driven down by massive USD strength and continuing lower European and Chinese manufacturing demand. Copper is at a 2-month low of USD$4.07/lb., and Nickel set a new low for the year at USD$7.00/lb. Critical and battery minerals are also struggling. Lithium has reached its yearly low at USD$10.02/kg, while Cobalt has hit an eight-year low at USD$11.02. Keep an eye on trading opportunities in the Mining and Metals sector.
This week has been fruitful for our clients, and we are delighted to share with you a summary of their news from November 11-15, 2024.
Mining
On November 13, 2024, Nuinsco Resources Limited (CSE: NWI, FRA: NJX) announced that ongoing study of niobium mineralization, has confirmed the economic potential of Nb2O5, the niobium ore mineral pyrochlore, as a significant co-product at the Prairie Lake Critical Minerals Project. Studies were carried out in collaboration with McGill University researchers, led by Professor Anthony Williams-Jones.
Nuinsco’s exploration at Prairie Lake has identified widespread niobium endowment, both at surface and underground in drill holes, of sufficiently high grade to warrant its economic evaluation as a co-product. Niobium is a vital alloying agent in steel production. The biggest application of this element is in the production of structural steel and the automotive and aerospace industries Current global demand of 107 kilotons per annum is expected to grow at a rate of 10% per annum to 2030 when the market is estimated to be USD$3B. The Prairie Lake project hosts a significant endowment of niobium and phosphate and rare earth elements in a logistically ideal location in central North America.
A re-evaluation of the geology of the Prairie Lake Complex, by Professor Williams-Jones and his team, is documenting the occurrence of large volumes of previously unrecognized biotite-rich rocks (pyroxenitic glimmerite), which controls the occurrence of the niobium ore mineral, pyrochlore, at St Honoré (Québec), one of only three operating niobium mines in the World. Glimmerite is also a major rock unit at the Araxá and Catalão mines (Brazil) which produce over 90% of the World’s niobium.
“The trenching and drilling at the Project contemplated for delineating the predicted pyroxenitic glimmerite-pyrochlore association, could potentially lead to the Prairie Lake Complex becoming Canada’s economically most important REE-Niobium deposit after St Honoré and the first major producer of phosphate in the country, rivalling the giant Kovdor and Phalaborwa phosphate deposits in Russia and South Africa, respectively,” said Professor Williams-Jones.
Fintech
On November 12, 2024, Tenet Fintech Group Inc. (CSE: PKK) (OTCQB: PKKFF) announced that it intends to conduct a private placement financing by selling up to 20,000,000 units with each unit priced at $0.10 for gross proceeds of up to $2,000,000.
The Offering is a follow up to the private placement closed by the Company on September 4, 2024, and forms part of a series of capital raises by Tenet to fund the commercialization of its upcoming ie-Pulse product, to help meet certain anticipated strategic partnership obligations and for general working capital purposes.
The securities issued in connection with the Offering are subject to a hold period of four months and one day from the closing date of the Offering. A first tranche of the Offering is expected to close on or before November 15, 2024.
Consumer & Retail Products
On November 8, 2024, Able View Global Inc. (NASDAQ-CM: ABLV) announced the successful completion, on November 4, 2024, of the Company’s sale of convertible notes to three non-U.S. investors. Under the terms of the transaction, Able View has issued convertible notes totalling a principal amount of USD$4,000,000 to the three Purchasers.
The funds raised will be used to enhance the Company's working capital and support potential mergers and acquisitions.
Able View is China's second-largest e-commerce hub for international beauty and personal care brands, offering a comprehensive suite of brand-management services. These services include strategic planning, branding, digital and social marketing, omni-channel sales, customer service, and integrated logistics such as overseas shipping, warehousing, and fulfilment. Able View owns and manages a diverse portfolio of products that range from niche to prestige and masstige categories, solidifying a strong presence in the Chinese market.
SAVE THE DATE
When: November 19 – 21
Where: Mandalay Bay Convention Center
3RRG+Q2 Las Vegas, Nevada, USA
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