MARKET MOVEMENTS:

--Brent crude oil falls 0.5% to $74.13 a barrel.

--European benchmark gas is down 1.7% to 41.75 euros a megawatt-hour.

--Gold futures are up 0.4% to $3,160.20 a troy ounce.

--LME three-month copper futures are up 0.1% at $9,707 a metric ton.

TOP STORY:

A Big Coal Plant Was Just Imploded to Make Way for an AI Data Center

The owner of what was once Pennsylvania's largest operating coal plant just imploded it to make way for a giant AI data-center campus that will be powered by natural gas instead.

The site in Homer City, Pa., about 50 miles east of Pittsburgh, is expected to house what would be the country's largest gas-fired power plant, according to owner Homer City Redevelopment.

At up to 4.5 gigawatts, the plant could nearly power Manhattan. Its output would more than double that of the original coal facility and be roughly equivalent to Georgia's Vogtle plant, the country's largest nuclear power site.

OTHER STORIES:

Rio Tinto Braces for Investor Vote on Review of London Listing

First BHP Group ended its primary listing in London. Then Glencore said it is studying a move elsewhere. Now, Rio Tinto shareholders will decide whether to step up pressure on the mining giant to junk its decades-old dual listing in London and Sydney.

Thursday's vote in London at Rio Tinto's annual shareholder meeting will test support for a change that has been championed by Palliser Capital, an activist investor. Palliser argues the status quo drags on Rio Tinto's value by restricting the miner's ability to pursue stock-based deals and fully utilize its Australian tax credits, which the miner denies.

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Lithium Americas Announces Final Investment Decision for Thacker Pass

Lithium Americas announced a final investment decision to proceed with its flagship Thacker Pass lithium project in Nevada.

Thacker Pass is owned by a joint venture between Lithium Americas and General Motors.

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Tesla's China Sales Drop But It Returns to Top 3

Tesla's China sales continued to drop in March but the carmaker still managed to break into the top three spots amid intense competition in the country's auto market.

Tesla sold 78,828 China-made vehicles in March, the China Passenger Car Association said on Wednesday, down 11% from the same period last year but more than double what it sold the previous month.

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Brazil Looks Like a Winner in the Global Trade War

In the unfolding global trade war, Brazil is betting it has some distinct advantages.

Chinese buyers are already stockpiling Brazilian soybeans as Beijing retaliates against President Trump's tariffs with levies on U.S. agricultural producers. Brazilian suppliers of everything from cotton to chicken are banking on higher Chinese demand. The commodities-heavy Brazilian benchmark stock index is up 9% this year through Tuesday's close, while the S&P 500 is down 4.2% over the same period.

MARKET TALKS:

Global LNG Demand Isn't Expected to Keep up With Supply, Capital Economics Says -- Market Talk

1303 GMT - Global LNG demand isn't expected to keep pace with a looming supply surge in the coming years, according to Capital Economics. LNG export capacity is forecast to surge by nearly 40% by 2030, with most of it from the U.S. and Qatar. However, demand growth in Europe might not be strong enough to offset softness in Asia, assistant economist Lily Millard says. Japan and Korea's shift back to nuclear energy leaves the demand outlook uncertain, while China's accelerating renewable energy rollout suggests the country won't rely on natural gas as a transitional fuel as heavily as the U.S. As a result, Capital Economics estimates gas prices will decline in the coming years, with the Asian benchmark JKM falling to $8.50 per million British thermal unit and the European TTF benchmark to 25 euros a megawatt hour by the end of next year. (giulia.petroni@wsj.com)

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U.S. Tariffs on Russian Oil Could Constrain Sour Crude Supply -- Market Talk

1016 GMT - U.S. tariffs against buyers of Russian oil would result in a decline of Russian flows and tighten global crude markets, potentially forcing OPEC+ to step in to maintain stability, according to Rystad Energy's Janiv Shah. Market participants view President Trump's threat as a tool to accelerate a ceasefire deal and end the war in Ukraine, the vice president of oil markets says. However, if tariffs were to be implemented, China and India would likely have to seek more Middle Eastern medium sour barrels--such as Kuwait Export, Al Shaheen and Saudi grades--supporting Dubai prices and widening the Brent-Dubai spread. Meanwhile, the loss of medium sour barrels due to U.S. tariffs on Mexico and Canada will create a supply gap for U.S. Gulf Coast refiners, adding upside to Dubai and tightening the sour market, Shah says. (giulia.petroni@wsj.com)

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Palm Oil Rises Amid Better Export Demand Outlook -- Market Talk

1007 GMT - Palm oil closed higher amid a better export demand outlook. Sentiment was likely lifted after cargo surveyor AmSpec Agri Malaysia's estimates showed palm oil exports rose 3.9% on month during the March 1-31 period. CPO prices may have also been supported by overnight gains in soybean oil on the Chicago Board of Trade, said Phillip Nova commodities strategist Darren Lim Tai An in a note. The two oils often trade in tandem due to their use in similar products. The Bursa Malaysia derivatives contract for June delivery closed 99 ringgit higher at 4,518 ringgit a ton.(amanda.lee@wsj.com)

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Shell's Share Buyback Priority May Worry Dividend-Focused Investors -- Market Talk

0952 GMT - Shell's preference for share buybacks over dividends could become an issue for yield-oriented investors, HSBC analysts write. U.S. investors are typically more comfortable with buybacks than European investors, the analysts add. The analysts say that they are sympathetic to Shell's view that buying back shares is a good way generate per-share growth in a mature industry. However, the move will cause dividend yields to fall, they write. Shares trade flat at 2,796 pence. (adam.whittaker@wsj.com)

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European Gas Falls as Winter Risks Fade But Storage Target Remains Challenging -- Market Talk

0938 GMT - European natural-gas prices fall in midday trade, with the benchmark Dutch TTF down 0.8% to 42.12 euros a megawatt hour. "TTF gas prices nearly tripled from February 2024 to February 2025 on tight balances, but winter risk is fading and prices have dropped to EUR40," says BofA Global Research's commodity strategist Francisco Blanch. EU gas inventories are currently 33.6% full, making it difficult for member states to reach their 90% filling target by Nov. 1. BofA estimates that global LNG supply will increase by 15-16 million metric tons during the April-October period. However, it says that to achieve the 90% target, Europe would need an additional 23 million metric tons of additional LNG over that period, which could temporarily push prices to 60-80 euros a megawatt hour in the second half to discourage price-sensitive demand. (giulia.petroni@wsj.com)

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Shell's Near-Term Scope for Higher Shareholders Returns Is Limited -- Market Talk

0927 GMT - Shell's improved capital discipline will deliver higher long-term shareholder distributions, but there is little near-term upside, HSBC analysts write. At last month's capital market day, Shell kept its dividend guidance of 4% growth a year. However, it is expected to increase dividend growth to around 10% a year from the end of 2028 as free cash flow grows, the analysts write. The analysts expect Shell to buy back 7% of its share count in 2025, before increasing that ratio to buy 12% by 2030. The analysts expect Shell to repurchase $16 billion of shares in 2029 and $17 billion in 2030. As Shell continues to favor buybacks over dividends, its dividend yield will fall, the analysts write. Shares trade flat at 2,796 pence. (adam.whittaker@wsj.com)

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Oil Falls on Demand Concerns Ahead of Trump's Tariffs -- Market Talk

0805 GMT - Oil prices edge lower as uncertainty surrounding the scope of U.S. tariffs continues to pressure commodity markets. Brent crude and WTI fall 0.6% to $74.02 and $70.74 a barrel, respectively, after settling at their highest in five weeks on Monday. Fears that President Trump's sweeping tariffs on major trade partners could hurt global economic growth and demand for crude are weighing on sentiment. However, losses are capped by concerns over tightening supplies after Trump's threats against Russia and Iran. Meanwhile, U.S. crude stockpiles rose by 6 million barrels, while gasoline inventories fell by 1.6 million barrels last week, according to reports citing the American Petroleum Institute ahead of official EIA data. Traders now await Thursday's OPEC+ ministerial meeting for further clues on whether the group will proceed with its planned output increase beyond April. (giulia.petroni@wsj.com)

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Gold Nears Record High Ahead of Trump's Tariff Announcement -- Market Talk

0743 GMT - Gold prices hover near record highs as traders remain on edge ahead of U.S. President Trump's announcement on reciprocal tariffs later on Wednesday. In early European trade, futures are flat at $3,145.90 a troy ounce, after reaching a peak of $3,177 in the previous session, driven by buying. The rally is fueled by concerns that Trump's aggressive trade policies could slow global economic growth and spur inflation, as well as strong central bank demand, exchange-traded fund inflows and an uncertain geopolitical outlook. "We expect gold has further room to run, especially when the U.S. Fed cuts rates again, and anticipate significant volatility as global markets remain on edge," analysts at Fitch's BMI research unit say. "Gold will once again be an outperformer within the wider metals complex, a scenario that would be put into limbo only if the Fed proceeds to raise interest rates instead." (giulia.petroni@wsj.com)

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Comex Gold Futures Extending Bullish Trajectory, Chart Shows -- Market Talk

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April 02, 2025 09:24 ET (13:24 GMT)

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