Ether Under Pressure After Senate Crypto Bill Fails to Pass; Risks Further Falls — Market Talk
0737 GMT - Ether stays under pressure after reaching a two-week low Tuesday when the Senate failed to pass the Clarity Act, aimed at establishing a regulatory framework for digital assets, in a procedural vote. The market is also largely pricing in an interest-rate rise by the Federal Reserve in a decision at 1800 GMT. While ether exchange-traded funds are attracting inflows, large holders of ether--known as "whales"--have recently sold the cryptocurrency, Zaye Capital Markets analyst Naeem Aslam says in a note. If whale selling accelerates and ETF inflows weaken, ether could fall further, he says. Ether drops 0.4% to $2,398 after reaching as low as $2,359 Tuesday, LSEG data show. ([email protected])0736 GMT - London's miners rise in opening trade Wednesday as oil prices fall and commodities gain. Oil prices slip as immediate supply concerns are eased by an unexpected jump in U.S. inventories. Miners are some of the world's largest consumers of diesel. Gold prices also rebound 1% on easing oil prices and a fall in Treasury yields. Silver is up 2.3% while three-month LME copper futures are 0.8% higher. Anglo American gains 1.8% while BHP's London shares rise 1.4%. Copper miner Antofagasta is nearly 3% higher while silver and gold miner Fresnillo trades up 3.1%, and peer Endeavour Mining moves 2.6% higher. ([email protected])0700 GMT - Stellantis' recovery is taking time, Berenberg's Romain Gourvil and Tommy Whitfield write as they downgrade the stock to hold from buy and cut the target price to 5.10 euros from 7.80 euros. There are now legitimate questions over the carmaker's margin trajectory over the remainder of the year, especially as inventory destocking could become a volume headwind, they say. Management say improving pricing in North America, stabilizing pricing in Europe and accelerating cost-savings will help offset this, they say. However, intensifying raw material costs and still-competitive pricing conditions could offer more challenges, they add. Shares closed at 4.49 euros on Tuesday. ([email protected])0516 GMT - The market underappreciates Newmont's recent deal with Barrick on its Fourmile project, according to UBS. Newmont has performed broadly in line with senior gold peers--excluding Barrick--since the deal, despite a significant improvement in visibility on cash returns and implied growth in gold equivalent ounces per share, the bank says. "A potential large cash payment from NEM to Barrick to equalize the ownership of [Barrick's] Fourmile project in the Nevada JV had been the key overhang for NEM's investment case," says UBS. It has a buy rating on Newmont's Australian shares, with a price target of 210.00 Australian dollars. The stock is up 2.6% at A$175.20. ([email protected]; @RhiannonHoyle)