Daily Briefs

• Rio Tinto Ltd (RIO AU) / (RIO LN) / (RIO US) is scheduled to report its 2025 half year results on Wednesday, 30 July 2025 at 16:15 AEST.
• Actionable Option Strategy: Options imply a move noticeably larger than the historical average, opening up a potential short-term yield opportunity. Trade setup discussed in detail.
• Why Read: The Insight outlines yield-focused short-vol strategies, the expected volatility crush, and a forecast for Rio’s interim dividend based on payout policy and timing.

• The copper trade still gets lots of attention. Reason for us to dig a little deeper and evaluate emerging opportunities.

• Let’s also evaluate the “fundamental” reason market participants have why COMEX Copper is so much pricier than LME copper…

• The announcement of a 50% tariff on imported refined copper into the US has triggered a widening of the COMEX-LME-Spread from 11% to 27%.

• European markets turned negative as sentiment following the US trade tariiff deal moved to ‘not great’ from ‘better than expected’.
• The Nasdaq edged to a new high, but enthusiasm across the board was weak.
• ASX futures are suggesting a soft start as Australia and other countries remain in the US line of sight for blanket 15%-20% tariffs.

• Trump’s 50-day ultimatum to Russia expires on September 2nd, potentially leading to sanctions and increased weapons supplies to Ukraine
• EU’s new price cap on Russian crude takes effect on September 3rd, aiming to curtail Russia’s energy revenues and strengthen anti-circumvention measures
• Snapback provisions on Iran could be triggered in September, adding to global oil price volatility and uncertainty

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Institutions were net buyers of Singapore stocks with a net inflow of S$334 million from July 18 to 24.
• Four primary-listed companies conducted share buybacks totaling S$29.8 million, led by United Overseas Bank’s repurchase of 800,000 shares.
• Ginko-AGT Global Growth Fund increased its stake in ISOTeam, acquiring 5,986,600 shares at S$0.086 each.

• Shin-Etsu Chemical’s fiscal Q1/26 results were inline with expectations, with EBIT down -12.6% yoy as margins declined yoy for all of its divisions 
• However, FY26E guidance disappointed markets, with a -14.4% decline in operating income, well below consensus’ already weak 0.6% forecast, and the stock fell -9.5%
• Shin-Etsu has trades at a P/B premium to the Japan chemical sector even with a lower ROE, providing limited valuation support especially given a weak operating outlook 

• Asia’s base oils demand could get support as buyers focus on locking in supply to cover requirements during final weeks of Q3 2025.
• Dynamic would highlight disconnect between typical seasonal slowdown in lube demand in month of August and need to secure base oils supplies to meet pick-up in demand at end of third quarter.
• Expectations of sufficient supply could prompt buyers to maintain balanced inventories rather than to seek larger stocks.

• Weatherford International’s second quarter 2025 financial results reveal a company operating amidst industrywide challenges but demonstrating resilience through strategic measures.
• The company experienced various regional performances, with notable market conditions impacting outcomes, such as the reduced revenues in North America due to Canada’s seasonal spring breakup and divestitures in Argentina.
• These circumstances, alongside an unstable Mexican market that has stabilized but is expected to see a 60% decline in activity for the year, influenced overall performance.

• Matador Resources Company reported a solid financial and operational performance in the second quarter of 2025, attributing its success to significant contributions from its leadership team and strategic initiatives.
• The company emphasized its commitment to increasing both production and free cash flow in tandem, highlighting a strong financial foundation bolstered by a $1.8 billion available line of credit.
• This financial flexibility supports the company’s drilling and cash flow opportunities.

• Range Resources Corporation reported strong financial and operational performance for the second quarter of 2025, driven by consistent well performances and several efficiency gains across operations.
• The company demonstrated significant free cash flow generation, allowing for shareholder returns and bolstering its long-term growth strategy amid a rising demand environment for natural gas and natural gas liquids (NGLs).
• Key positive highlights include the execution of efficient operations, which resulted in lower-than-anticipated capital expenditures, enabling Range Resources to revise its capital guidance.