The annual core inflation rate in Norway declined more than expected during October, according to Statistics Norway data issued on Tuesday, which eased pressure on the Norwegian Central Bank to raise interest rates.
The data showed that core inflation, which excludes changes in energy prices and taxes, fell to 2.7 percent on an annual basis in October, compared to 3 percent in September, and came below analysts’ expectations in a Reuters poll of 2.8 percent.
The Norwegian Central Bank had expected core inflation to reach 2.7 percent.
In the exchange markets, the Norwegian krone exchange rate fell to 10.55 against the euro by 07:03 GMT, compared to 10.54 before the data was released.
Last week, the Norwegian Central Bank left the key interest rate unchanged at 4.50 percent, while reiterating that it may have to tighten monetary policy again to contain consumer prices.
Central Bank Governor Ida Volden-Basch said at the time that it would likely be necessary to keep interest rates at high levels for some time, noting that the bank’s board of directors was prepared to raise them if necessary to return inflation to its target levels within a reasonable period of time.
The Norwegian Central Bank aims to keep core inflation at 2 percent, and is scheduled to announce its next decision on interest rates on December 17.
Copper prices rose on Tuesday, supported by a decline in oil prices and a recovery in technology company stocks, in addition to continued tight supplies in China, the largest consumer of the metal in the world.
The three-month standard copper price on the London Metal Exchange increased by 0.31 percent to $13,939 per ton, by 03:00 GMT. The most traded copper contract on the Shanghai Futures Exchange rose 0.14 percent to 107,700 yuan ($16,140) per ton, according to Reuters.
Buyers in China are facing record premiums, amid shortages of copper concentrates and refined copper inventories.
Customs data released on Tuesday showed that China's copper concentrate imports fell by 11 percent in October compared to the same period last year, with smelters coming under pressure from sharp declines in processing fees and sulfuric acid prices.
Copper stocks in warehouses monitored by the Shanghai Futures Exchange amounted to only 33,848 tons on Friday, while the “Yangshan premium,” which is an indicator of Chinese demand for imported copper, rose to a new record level of $230 per ton on Monday.
In financial markets, Wall Street and the global stock index recorded broad rises on Monday, as investors reassessed the wave of decline that affected technology stocks following the US midterm elections.
Sandeep Daga, head of research at the Metals Intelligence Center, said that the recovery in technology stocks and the narrowing of price spreads for nearby contracts “surprised investors who bet on falling prices.” The difference between the cash price of copper and the three-month contract on the London Metal Exchange last traded at $175.39 per ton, in the case of a “backorder” (inverse market), which indicates a scarcity of supplies available for immediate delivery.
For his part, Daniel Haynes, chief commodities strategist at ANZ Bank, said in a note that hopes for a de-escalation in the Middle East conflict pushed oil prices down, which enhanced risk appetite in the markets and contributed to supporting copper prices.
US President Donald Trump had taken a more conciliatory tone regarding Iran, following the major losses suffered by the Republican Party in the midterm elections, and acknowledged that the war with Iran had contributed to that defeat. The conflict in the Middle East has put pressure on the prices of metals linked to economic growth, such as copper, through its negative impact on the global economic outlook.
In the rest of the metals, aluminum fell on the London Metal Exchange by 0.31 percent, while zinc rose by 0.51 percent, lead by 0.13 percent, nickel by 0.18 percent, and tin by 0.1 percent.
On the Shanghai Stock Exchange, aluminum fell by 1.06 percent, zinc by 0.18 percent, and lead by 0.4 percent, while nickel rose by 0.14 percent, and tin rose by 0.11 percent.
Lucid, the American electric car manufacturer, announced an increase in loan facilities provided by the Saudi Public Investment Fund, its largest shareholder, by $1.75 billion, in a move that strengthens its financing capacity during the phase of restructuring operations and improving performance, and provides it with the necessary liquidity until the last quarter of 2027, according to Reuters.
The company said, on Monday, that the increase in term loan facilities, which allows the withdrawal of financing when needed, raises the liquidity available to it on a hypothetical basis to $3.75 billion, which enhances the ability of its new CEO, Silvio Napoli, to implement the recovery plan, in light of the weak demand facing the electric car sector in general after the end of the federal tax exemption in the United States last year.
Lucid expects that the available liquidity will be sufficient to continue its operations until the start of production of its medium-sized car in the second half of 2027, while it said that it will reveal its production guidance for 2027 and its medium-term plan in conjunction with the announcement of the end-of-year results.
The move comes at a time when the company is working to reduce cash spending and improve operational efficiency. It reduced cash outflows during the third quarter to $1.04 billion, compared to $1.48 billion in the previous quarter, by reducing production, including canceling the second shift at its factory in Arizona, in addition to reducing inventory and operational costs.
Chief Financial Officer Alexander De Bock said that these measures have begun to be reflected in the results, noting that the consumption of free cash flows decreased by 30 percent on a quarterly basis during the third quarter.
The company added that the number of its employees declined by about 28 percent between the first and third quarters, and that it achieved $800 million of the total targeted improvements in cash flows, amounting to $1.4 billion during the current year, by reducing inventory, operational costs, and capital spending.
The transformation plan also includes reorganizing the administrative structure, reducing administrative levels, and linking incentives to four priority projects. New officials for technology, finance, customer affairs and corporate transformation also joined the company at the beginning of the third quarter.
