Author: Fiona Craig

Savannah Resources (LSE:SAV) has detailed fresh progress at its Barroso Lithium Project after securing approval for a non-repayable Portuguese government grant of up to €110m, with formal execution of the investment agreement expected in the near term. The funding underpins continued advancement of the Definitive Feasibility Study (DFS) and environmental permitting, alongside refinements to open-pit designs and the completion of critical infrastructure planning covering water systems and road access.

Operationally, the company is preparing to launch an expanded programme of geotechnical and resource drilling, subject to the issuance of a temporary land access order. Exploration work has also delivered upside potential, with soil sampling identifying a new 400-metre lithium anomaly that extends an existing target area, opening the door to additional resources beyond the current DFS scope. Improving lithium prices and ongoing tightness in global supply have further strengthened commercial interest in the project’s future spodumene concentrate output.

In parallel, Savannah is intensifying engagement with local stakeholders and accelerating land acquisition efforts around the project area. At an industry level, the company has joined peers in urging the European Commission to introduce binding local-content requirements for lithium, a move aimed at strengthening European supply chains and enhancing the strategic importance of domestic projects such as Barroso within the EU.

From a market perspective, sentiment remains weighed down by the company’s early-stage financial profile, characterised by a lack of revenue, ongoing losses and continued cash outflows. While a relatively low level of debt offers some balance sheet resilience, technical indicators provide only limited near-term support, and valuation metrics remain constrained by negative earnings and the absence of dividend income.

More about Savannah Resources

Savannah Resources is an AIM-listed mineral development company focused on advancing the Barroso Lithium Project in northern Portugal. The project is widely regarded as Europe’s largest known spodumene lithium deposit and has been designated a Strategic Project under the European Critical Raw Materials Act. Savannah aims to supply lithium into Europe’s fast-growing electric vehicle and battery storage markets, positioning Barroso as a key domestic source of critical raw materials for the EU.

U.S. equity futures are pointing to a softer start on Wednesday, indicating stocks may face additional pressure after ending Tuesday’s choppy trading modestly in the red.

Pre-market weakness in Wells Fargo (NYSE:WFC) is weighing on sentiment, with the bank’s shares down around 2.6%. The decline comes after the lender reported fourth-quarter earnings that beat expectations, but fell short on revenue.

Bank of America (NYSE:BAC) was also trading lower ahead of the opening bell, despite delivering quarterly results that exceeded analyst forecasts.

By contrast, Citigroup (NYSE:C) shares were poised to advance after the bank posted stronger-than-expected fourth-quarter earnings.

On the economic front, new data from the Commerce Department showed U.S. retail sales rose more than anticipated in November. Sales increased 0.6% during the month, following a revised 0.1% decline in October, outpacing expectations for a 0.4% gain.

Excluding autos, retail sales climbed 0.5% in November after rising 0.2% in October, also beating forecasts.

Separately, the Labor Department reported a modest increase in producer prices in November.

Markets struggled to find direction on Tuesday, after rebounding from early losses on Monday to finish slightly higher. During Tuesday’s session, major indexes swung between gains and losses before closing lower.

The Dow Jones Industrial Average fell 398.21 points, or 0.8%, to 49,191.99. The Nasdaq Composite edged down 24.03 points, or 0.1%, to 23,709.87, while the S&P 500 slipped 13.53 points, or 0.2%, to 6,963.74.

The Dow retreated from a record closing high set on Monday, pressured by a sharp drop in JPMorgan Chase (NYSE:JPM), which declined 4.2%. The bank’s shares slid after it reported a year-over-year decline in fourth-quarter profit, despite adjusted earnings topping expectations.

The uneven trading reflects uncertainty about the near-term outlook, driven by rising global geopolitical tensions and a series of policy proposals from President Donald Trump.

Trump has recently called for a one-year cap on credit card interest rates at 10%. He has also proposed barring defense companies from paying dividends or buying back shares, and restricting large institutional investors from purchasing single-family homes.

Meanwhile, inflation data from the Labor Department showed consumer prices rose broadly in line with expectations in December. Headline CPI increased 0.3% for the month.

Core inflation, excluding food and energy, rose 0.2% in December, below forecasts for a 0.3% increase. On an annual basis, headline inflation held steady at 2.7%, while core inflation remained unchanged at 2.6%.

Sector performance was mixed, with airline stocks under pressure, dragging the NYSE Arca Airline Index down 2.0%. Software stocks also weakened, as the Dow Jones U.S. Software Index fell 1.6%.

Banking shares were broadly lower, while energy stocks outperformed as crude oil prices jumped. Networking and steel stocks also showed pockets of strength.

Oil prices edged lower in Asian trading on Wednesday, easing from multi-week highs reached in the previous session, as markets reassessed supply risks linked to Iran against evidence of a sharp build in U.S. crude inventories.

At 20:18 ET (01:18 GMT), Brent crude futures for March were down 0.4% at $65.19 a barrel, while U.S. West Texas Intermediate (WTI) futures slipped 0.5% to $60.87 a barrel.

Both benchmarks had climbed more than 2.5% on Tuesday, lifting Brent to an 11-week high and WTI to a 10-week peak, extending a strong rally over four straight sessions.

Iran unrest underpins recent gains

The earlier surge in prices was driven by rising geopolitical tensions as intensifying anti-government protests in Iran heightened concerns over potential disruptions to crude exports from one of OPEC’s largest producers.

Traders have built in a notable geopolitical risk premium amid fears that supply flows could be interrupted.

Market unease was amplified by comments from U.S. President Donald Trump. He warned of possible military action if Iranian authorities persist with violent crackdowns on protesters and urged demonstrators to “take over your institutions,” writing on social media that “help is on the way.”

Trump has also threatened to levy tariffs on countries that continue trading with Tehran, in a bid to further isolate the regime and adding to the risk premium embedded in oil prices.

U.S. inventories surge – API

Against this backdrop, data released on Tuesday by the American Petroleum Institute showed that U.S. crude inventories rose by 5.3 million barrels last week, far exceeding market expectations for an increase of around 2 million barrels.

Gasoline stockpiles climbed by roughly 8.2 million barrels, while distillate inventories increased by about 4.3 million barrels, pointing to ample supplies of refined fuels.

Attention now turns to the official figures from the U.S. Energy Information Administration, due later on Wednesday, which are expected to provide further confirmation of crude and product inventory trends.

Gold prices climbed to fresh record levels in Asian trading on Wednesday after milder-than-expected U.S. inflation data reinforced expectations that the Federal Reserve will begin cutting interest rates, while rising geopolitical tensions in Iran supported demand for safe-haven assets.

Spot gold advanced more than 1% to a new all-time high of $4,640.13 an ounce by 01:56 ET (06:56 GMT), topping the previous record of $4,634.33/oz set in the prior session. U.S. gold futures for March also gained 1%, reaching $4,643.10/oz.

Silver posted even stronger gains, jumping over 4% to a fresh record of $91.56/oz. The metal has been lifted by a combination of robust industrial demand and renewed investor appetite for safe havens. Platinum also moved sharply higher, rising as much as 4% to $2,444.21, close to the record highs seen last month.

Soft U.S. inflation and Iran unrest lift metals

U.S. consumer price index data released on Tuesday came in below market expectations. Core CPI rose 0.2% in December and 2.6% on a year-on-year basis, undershooting forecasts and strengthening the case for future interest rate cuts. Markets are now pricing in around two rate reductions in 2026.

“Two Fed rate cuts seem perfectly achievable with the risks skewed towards a third due to the cooling jobs story,” ING analysts said in a recent note.

Lower interest rates typically favour non-yielding assets such as gold by reducing their opportunity cost.

Geopolitical risks also remained elevated. Iran has been shaken by intensifying anti-government protests that have reportedly led to around 2,000 deaths, raising fears of broader instability across the Middle East.

The unrest has drawn warnings from U.S. President Donald Trump, who has cautioned about potential military action and threatened to impose a 25% tariff on countries doing business with Iran. Trump also urged demonstrators to increase pressure on Iran’s leadership, posting on social media that they should “take over your institutions” and that “help is on its way.”

Fed independence concerns add support

Additional support for gold came from renewed worries over the independence of the U.S. central bank after the Trump administration opened a criminal investigation involving Federal Reserve Chair Jerome Powell.

Although the move unsettled markets, central bank officials and senior banking executives publicly backed Powell, stressing the importance of protecting the Fed’s autonomy from political interference.

Elsewhere in metals markets, benchmark copper futures on the London Metal Exchange edged up 0.4% to $12,237.20 a tonne, while U.S. copper futures climbed 1.1% to $6.07 a pound. Palladium prices also rallied, rising as much as 4% to $1,911.23/oz.

Futures tied to major U.S. equity indices traded slightly below unchanged levels as investors looked ahead to another round of earnings from large American banks. China reported an unprecedented trade surplus for 2025, highlighting efforts to redirect exports away from the United States. Gold pushed to a new record on expectations of U.S. interest rate cuts and heightened geopolitical risks, while oil prices eased after recent rallies.

Futures slip

U.S. stock futures edged lower on Wednesday as markets awaited fresh results from Wall Street’s biggest lenders.

By 02:49 ET, Dow futures were down 133 points, or 0.3%, S&P 500 futures fell 14 points, or 0.2%, and Nasdaq 100 futures declined 43 points, or 0.2%.

Major indices ended Tuesday’s session lower after data showed U.S. consumer inflation remained stable in December, reinforcing expectations that the Federal Reserve will keep rates on hold at its next meeting later this month.

JPMorgan Chase (NYSE:JPM), the largest U.S. bank, reported a drop in fourth-quarter profit, weighed down by provisions linked to its takeover of a credit card partnership with Apple from Goldman Sachs. The bank also cautioned that President Donald Trump’s proposed cap on credit card interest rates could hurt industry profitability and consumers, dragging on broader financial shares.

JPMorgan stock slid around 4.2%, despite adjusted quarterly earnings beating forecasts, largely supported by strong trading revenues.

More bank results ahead

Several major lenders are due to report later Wednesday, including Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C).

Bank earnings, which typically signal the start of the quarterly reporting season, are being closely watched as indicators of economic and market sentiment at the outset of 2026.

Last year’s market volatility — driven by policy signals from the White House and concerns over a potential bubble in artificial intelligence stocks — boosted trading desks across the sector. Investment banking fees were also supported by a pickup in mergers and acquisitions.

JPMorgan CEO Jamie Dimon said on Tuesday that the U.S. economy has remained resilient and could continue to do so, helped by fiscal stimulus, deregulation and recent Federal Reserve policy.

Analysts will also be listening for commentary on the independence of the U.S. central bank, which has come under scrutiny since the Trump administration launched a criminal investigation into Fed Chair Jerome Powell. Powell has said the move was intended to influence interest rate decisions.

Dimon defended the Fed’s independence, warning that anything that “chips away” at its ability to set policy without political pressure “is not a good idea.”

China’s record trade surplus

China reported a record trade surplus of $1.2 trillion in 2025, reflecting a shift in exports away from the United States toward other regions.

Facing an aggressive U.S. tariff agenda under Trump, Beijing redirected shipments to destinations including the European Union, Southeast Asia, Latin America and Africa.

Data from China’s General Administration of Customs showed the annual surplus — the gap between exports and imports — rose 20% compared with 2024.

In December alone, the surplus reached $114.14 billion, the third-highest monthly figure on record. The two largest monthly surpluses were recorded in January and June last year, highlighting efforts by Chinese manufacturers to avoid steep U.S. tariffs.

At the same time, the surplus was inflated by weak imports, reflecting a sluggish domestic economy. Chinese policymakers continue to face pressure to introduce measures to support growth amid subdued consumer spending and a prolonged property market downturn.

Gold scales fresh record

Gold prices climbed to new all-time highs after U.S. inflation data reinforced expectations for rate cuts later this year and rising tensions in Iran boosted safe-haven demand.

Spot gold rose more than 1% to a record $4,640.13 an ounce by 01:56 ET (06:56 GMT), topping the previous peak of $4,634.33. U.S. gold futures for March gained 1% to $4,643.10 an ounce.

Core U.S. inflation, which excludes food and energy, rose 0.2% month on month and 2.6% year on year in December, undershooting forecasts and strengthening the case for future rate cuts. Markets are now pricing in roughly two rate reductions in 2026.

“Two Fed rate cuts seem perfectly achievable with the risks skewed towards a third due to the cooling jobs story,” ING analysts said. Lower interest rates typically benefit non-yielding assets such as gold by reducing their opportunity cost.

Geopolitical risks remained elevated, with Iran facing intensifying anti-government protests that have reportedly resulted in around 2,000 deaths, raising concerns about broader instability in the Middle East. Questions over Fed independence also provided additional support to bullion.

Oil eases

Oil prices edged lower on Wednesday, giving back some recent gains as Venezuela resumed exports and U.S. crude inventories rose, while developments in Iran stayed in focus.

Brent futures fell 0.8% to $64.96 a barrel, while U.S. West Texas Intermediate crude dropped 0.8% to $60.69 a barrel.

Both benchmarks had jumped more than 2.5% on Tuesday, pushing Brent to an 11-week high and WTI to a 10-week peak, extending a four-session rally.

U.S. crude stockpiles rose by 5.23 million barrels in the week ended January 9, according to data from the American Petroleum Institute released on Tuesday. Official inventory figures from the U.S. Energy Information Administration are due later on Wednesday.

Adding to supply dynamics, OPEC member Venezuela has resumed crude exports under a deal between Caracas and Washington following the U.S. capture of Venezuelan President Nicolas Maduro. However, escalating protests in Iran have heightened fears of potential supply disruptions from the world’s fourth-largest OPEC producer.

Hamak Strategy Ltd. (LSE:HAMA) (USOTC:HASTF) has announced that Executive Director and Chairman, Nicholas Thurlow, has tendered his resignation with immediate effect, to enable him to focus on other work commitments. 

Non-Executive Director, Nicola Horlick, will assume the role of Non-Executive Chair on an interim basis whilst the Company continues to strengthen its Board, Advisory Board and management team through futher appointments, which will be announced in due course.

The Company thanked Nick for his contribution towards the restructuring and new direction of Hamak over the past six months, which provides a strong platform to further develop the dual strategy of pursuing gold opportunities alongside a compliant and Bitcoin focused Treasury Policy.

About Hamak Strategy Limited

Hamak Strategy Limited is a UK listed company focussed on gold exploration in Africa and with a strategy of pursuing an appropriate and compliant BTC/ crypto treasury management policy.