Good morning! On Wednesday, the three major U.S. stock indices closed lower, with the Dow Jones Industrial Average down 0.47%, the Nasdaq Composite dropping 1.81%, and the S&P 500 declining 1.16%.
Large-cap tech stocks broadly fell, with Oracle dropping over 5%, Tesla and Broadcom down more than 4%, and Nvidia and Google declining over 3%. Meta and Apple also slipped more than 1%. Energy storage concepts, semiconductors, and computer hardware led the losses, with Camtek plunging over 7%, while Super Micro Computer, ASML, AMD, and Arm fell more than 5%. KLA dropped over 4%. Oil and gas, energy, and precious metals sectors gained, with ConocoPhillips rising over 4%, and ExxonMobil and BP up more than 2%.
Spot silver surged 4.01% to $66.3146 per ounce, while COMEX silver futures jumped 5.19% to $66.610 per ounce, hitting a record high intraday with a gain exceeding 6%. COMEX copper futures rose 1.29% to $5.4280 per pound, and spot platinum climbed 2.98% to $1,900.18 per ounce.
WTI January crude futures settled up $0.67 per barrel, or 1.21%, at $55.94 per barrel. Brent February crude futures gained $0.76 per barrel, or 1.29%, closing at $59.68 per barrel.
**UN Secretary-General Urges U.S. and Venezuela to Exercise Restraint** UN Secretary-General António Guterres called on the U.S. and Venezuela to show restraint and immediately de-escalate tensions. He urged all parties to adhere to international law, including the UN Charter, to maintain regional peace.
U.S. President Donald Trump announced on social media that Venezuela’s current government has been designated a "foreign terrorist organization" and ordered a blockade on all sanctioned oil tankers entering or leaving Venezuela.
Earlier, Trump revealed that the U.S. Navy had seized an oil tanker near Venezuelan waters, stating the confiscated oil would be retained. U.S. Attorney General William Barr claimed the tanker was involved in an "illegal oil transport network supporting foreign terrorist organizations." The U.S. Treasury later updated its sanctions list, adding six oil tankers linked to Venezuela. Venezuelan Foreign Minister Jorge Arreaza condemned the seizure as "international piracy."
**Venezuela Faces Oil Storage Crisis Amid Blockade** Venezuela’s primary oil storage facilities and docked tankers are rapidly filling, with maximum capacity expected to be reached in about 10 days.
Following the seizure of a Venezuelan tanker and U.S. plans to block other sanctioned vessels, the country’s oil storage capacity is under increasing strain. Local sources warn that state-owned PDVSA, which produces nearly 1 million barrels per day, may be forced to shut some wells if the situation persists.
**U.S.-Russia Talks Scheduled for This Weekend in Miami** Sources revealed that U.S. and Russian officials are expected to meet in Miami this weekend. The Russian delegation may include RDIF CEO Kirill Dmitriev, while the U.S. side could feature Middle East envoy Avi Berkowitz and Trump’s son-in-law Jared Kushner.
**LME’s New Position Limit Rules Effective July 2026—Key Implications** The London Metal Exchange (LME) recently announced plans to implement new position limit rules starting July 2026, aligning with UK financial regulatory requirements to enhance risk management and market stability.
The UK Financial Conduct Authority (FCA) issued a policy statement in February 2025, transferring authority for setting and managing position limits from the FCA to the LME. This shift allows the LME greater flexibility to adjust limits based on market dynamics.
The new rules aim to strengthen the LME’s ability to calibrate position limits for core futures contracts—aluminum, copper, lead, nickel, tin, and zinc—as well as related options and TAPO contracts. Key measures include net-based position calculations at entity and group levels and stricter accountability thresholds.
The LME will tailor limits based on contract-specific factors like market size, liquidity, and volatility, enabling tighter controls for high-volatility contracts and more lenient ones for liquid markets. The exchange can also swiftly adjust limits during squeezes or extreme volatility, bypassing lengthy regulatory approvals—a critical improvement post-2022 nickel crisis.
LME COO Jamie Turner stated, "Integrating FCA’s requirements into our existing framework ensures position limits are market-specific and complement current regulations."
A consultation on proposed rule changes is slated for February 2026.
Analysts view this as both a transfer of power and an escalation of responsibility. Rebuilding market confidence post-nickel crisis is crucial. While short-term compliance costs and uncertainties may arise, successful implementation could foster a more transparent and resilient market long-term.
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