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October 11, 2024

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DecisionPoint has started posting short video alerts on our YouTube Channel. These videos are less than four minutes and give you the scoop on news you need to know about the market right now. Subscribe to the DecisionPoint.com YouTube Channel HERE so you’ll be notified when these video DP Alerts are posted.

In today’s video, Erin looks “under the hood” at the NYSE, Mid-Caps (MDY) and Small-Caps (IJR). The picture is not rosy, particularly given new all-time highs have been logged by the large-cap indexes. We need everyone on board to get a strong rally higher.

This could be a case of a “rising tide lifting all boats” eventually, but we would be cautious about the current rally given this lack of participation. Bull trap?


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Where is the Recent Performance in the S&P 500 Coming From?

Let’s start with the relative rotation graph (RRG) for growth and value sectors, dissected by size to get a clearer picture. The first RRG reveals a standout performer: the large-cap growth group. These stocks, which include major tech and communication services players, started their journey of outperformance in March 2023 when they moved to the right side of the RRG. Since then, they have completed multiple Leading-Weakening-Leading rotations and significantly contributed to the performance of the S&P 500.

The large-cap growth group, which includes the influential Mag-7 stocks, is currently in the weakening quadrant of the RRG. However, it’s showing signs of curling up—a positive indication of a new upswing in an already established relative uptrend. In contrast, the other sectors, particularly the value ones across all sizes, are losing momentum and moving down on the JdK RS-momentum scale.

The mid-cap and small-cap growth groups are also lagging, with the lowest readings on the RS-ratio scale. They’re far to the left, meaning they are still in relative downtrends, and the recent rally has to be judged as a recovery rally within a downtrend.

From this, the clear conclusion is that large-cap growth stocks are once again propelling the market upward.

Dissecting the Mag-7

When we zoom in on the Mag-7 stocks and place them on an RRG, the disparity in their performance becomes evident. Meta and NVIDIA are the stars, with NVIDIA mirroring the large-cap growth index’s position—inside the weakening quadrant but curling upwards, signaling another potential rise. Meta has made a full rotation and is now pushing deeper into the leading quadrant.

Apple and Tesla are on the right side of the graph. Tesla has outperformed the S&P 500 over the last five weeks, while Apple has not reached that level.

Amazon, Microsoft, and Google are in the lagging quadrant, with Google moving left, indicating a weak relative trend.

The Narrow Breadth of Market Performance is Back

This type of performance, driven by a small group of stocks, is a recurring theme. Over the last five weeks, the Mag-7 stocks have contributed over 2.9% to the S&P 500’s 6.8% performance. That’s a staggering 40% coming from just seven stocks—a clear example of a market with a narrow breadth.

This concentration continues to pose a risk, showing a market heavily reliant on a few key players.

SPY and its Divergences

Turning to the S&P 500 charts, the weekly SPY chart shows signs of breaking the negative divergence in the RSI, which is a positive sign. However, the negative divergence with the MACD persists, indicating we’re not out of the woods yet.

The daily chart suggests caution, as the S&P 500 is still within a potential rising wedge, and the RSI peaks are not showing the strength we’d like to see. The support level to watch remains 565.

A Closer Look at Individual Mag-7 Stocks

AAPL is still below overhead resistance, around the 230-235 area.

Microsoft has broken its uptrend, forming a potential head-and-shoulders top, The raw RS-Line is already in a downtrend.

NVIDIA has broken out of a large consolidation pattern, indicating significant upside potential.

Amazon is below its all-time high and has recently marked a lower high on the weekly price chart, while raw-RS has broken its rising support line.

Meta has broken out to a new all-time high, signaling a strong and intact trend.

Google is rapidly heading into the lagging quadrant, with $150 as a critical support level.

Tesla is in a volatile range below overhead resistance, which currently comes in around 270-275. This barrier needs to be taken out to trigger a new rally.

Conclusion: The Narrow Path to Market Gains

In summary, the large-cap growth stocks, particularly within the Mag-7, are driving the market higher on a very narrow foundation. Some divergences remain, but the S&P 500’s ability to overcome the negative divergence between price and RSI is a small positive. The market’s shape is improving as long as SPY remains above the 565 support level.

For a more sustained rally, we need broader participation from stocks outside the Mag-7. Until then, we will watch closely as Meta and NVIDIA lead the charge, while Google, Microsoft, and potentially Apple could dampen the S&P 500’s performance.

It’s still a tricky market, but with (some) large-cap growth stocks and their big impact on the broader indices, there are still opportunities to participate on the upside.

#StayAlert, –Julius


West High Yield (W.H.Y.) Resources Ltd. (TSXV: WHY) (the ‘Company’ or ‘West High Yield’) is pleased to announce that it has received its most updated written work plan timelines (link to the timelines) from the British Columbia Ministry of Energy, Mines and Low Carbon Innovation (the ‘EMLI’) regarding the Company’s mineral extraction project (the ‘Project’) pertaining to the Record Ridge Industrial Minerals Mine (the ‘RRIMM’) permit process. While the EMLI indicated that these dates could be subject to adjustments, the Company is optimistic that the process is on track for a potential permit issuance by early December, 2024.

The Company remains committed to addressing any further requests or comments promptly stemming from the review by the British Columbia Mine Development Review Committee (the ‘MDRC’) of its latest RRIMM amended permit submission. West High Yield continues to work closely with the Project stakeholders and regulatory authorities to ensure that the process proceeds efficiently.

The Company provides this as a reminder that the revised Project does not trigger the British Columbia Environmental Assessment Act Reviewable Project Regulations and therefore does not require an environmental assessment prior to obtaining permits for the construction and operation of the RRIMM. Permits are anticipated to be received following the completion of the MDRC process as outlined in the Company’s news release dated August 29, 2024.

About West High Yield

West High Yield is a publicly traded junior mining exploration and development company focused on acquiring, exploring, and developing mineral resource properties in Canada. Its primary objective is to develop its Record Ridge critical mineral (magnesium, silica, and nickel) deposit using green processing techniques to minimize waste and CO2 emissions.

The Company’s Record Ridge critical mineral deposit located 10 kilometers southwest of Rossland, British Columbia has approximately 10.6 million tonnes of contained magnesium based on an independently produced National Instrument 43-101 – Standards of Disclosure for Mineral Projects (‘NI 43-101’) Preliminary Economic Assessment technical report (titled ‘Revised NI 43-101 Technical Report Preliminary Economic Assessment Record Ridge Project, British Columbia, Canada’) prepared by SRK Consulting (Canada) Inc. on April 18, 2013 in accordance with NI 43-101 and which can be found on the Company’s profile at https://www.sedarplus.ca.

Qualified Person

Rick Walker, B.Sc., M.Sc., P.Geo., the Company Geologist is a Qualified Person as defined in NI 43-101 and has reviewed and approved the technical information in this press release.

Contact Information:

West High Yield (W.H.Y.) RESOURCES LTD.

Frank Marasco Jr., President and Chief Executive Officer
Telephone: (403) 660-3488
Email: frank@whyresources.com

Barry Baim, Corporate Secretary
Telephone: (403) 829-2246
Email: barry@whyresources.com

Cautionary Note Regarding Forward-looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; and other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the ‘U.S. Securities Act’) and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226278

News Provided by Newsfile via QuoteMedia

This post appeared first on investingnews.com

Stillwater Critical Minerals (TSXV:PGE,OTCQB:PGEZF) has signed a non-binding memorandum of understanding (MOU) with private company US Strategic Metals (USSM) to explore potential business opportunities within the critical metals sector.

The MOU outlines a broad range of potential collaborations, some of which include marketing efforts, technical support and supply chain development for critical minerals, including nickel, cobalt and other metals essential to the production of electric vehicle (EV) batteries and renewable energy technologies.

The MOU also explores potential offtake agreements, logistics collaboration and financing opportunities.

The companies intend to work together in advocating for government support, particularly from US government agencies such as the Department of Energy and the Department of Defense.

USSM CEO Stacy Hastie described the Stillwater Critical Minerals partnership as a key move in building towards a robust critical metal supply chain geared towards future expansion. Both companies also highlighted their partnerships with global miner Glencore (LSE:GLEN,OTC Pink:GLCNF).

“We have strong backers who are aligned with our team’s goal to expand into one of North America’s largest and most important fully integrated producers of key battery and strategic metals with a full supply chain from exploration to production all based within the United States,” Hastie added in the company’s statement on October 10.

He also added that Stillwater’s Stillwater West project, which is a potential source of at least eight critical minerals, aligns with the national mandate of the US government to bolster domestic production of the resource.

The Montana-based explorer operates in the Stillwater mining district, known for its rich deposits of nickel, platinum, palladium and other minerals. The Stillwater West project has been recognized as one of the largest undeveloped sources of critical minerals in the US.

As for USSM, the company’s plant will process recycled battery metals and feed from third parties to produce battery grade materials for the domestic supply chain. It is also developing a significant cobalt deposit.

As the global demand for EVs and renewable energy systems rises, companies and states alike are in a race to reduce reliance on imports and secure stable supplies for the energy transition.

Both companies anticipate that the partnership could position them favorably for federal government funding opportunities.

Recently, the US government has allocated significant resources to support domestic critical minerals production, primarily in favor of building up industries like clean energy, advanced defense systems and consumer electronics.

Stillwater has already received support from several federal agencies in conducting research into carbon sequestration and other green technologies.

Similarly, the MOU with USSM may further enhance the company’s eligibility for additional government grants and partnerships.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Taiwan Semiconductor (TSMC) (NYSE:TSM,TPE:2330), the world’s largest contract chipmaker, reported a strong 39.6 percent year-over-year increase in revenue for September 2024.

Based on this, the company’s Q3 earnings beat analysts’ expectations and the company’s own guidance, rising 36.5 percent year-over-year. For the quarter ending September 30, TSMC posted revenues of NT$759.7 billion (US$23.5 billion), surpassing the projected NT$748 billion. The company will disclose its full Q3 earnings report on October 19.

Bloomberg reported that the company’s performance has eased concerns over a potential slowdown in demand for artificial intelligence (AI) hardware, which has been a significant driver of the global semiconductor market in recent years.

The company’s success punctuates the continuing demand for cutting-edge chips essential to powering AI applications, cloud computing and other high-performance technologies. Currently, the company now derives more than half of its revenue from the high-performance computing (HPC) segment.

Since 2020, TSMC’s sales have more than doubled as demand for high-performance chips surged alongside generative AI and machine learning technologies. A significant portion of TSMC’s growth can be attributed to AI hardware, with Nvidia (NASDAQ:NVDA), the leading producer of AI chips, continuing to see high demand for its GPUs.

These components are crucial for training large AI models, a field that has experienced explosive growth since the launch of generative AI systems like OpenAI’s ChatGPT.

TSMC’s US market expansion

TSMC’s continued expansion into the AI sphere is also reflected in its increasing efforts to invest in the US market.

The company’s Fab 21 facility in Arizona, which is still ramping up production, is part of TSMC’s broader strategy to localize chip manufacturing to better serve its North American clients.

Apple (NASDAQ:AAPL), which relies on TSMC for its iPhone processors, is already producing some of its A16 chips at the Arizona fabrication facility. Reports suggest that AMD (NASDAQ:AMD) is set to become a major client of the facility, with production of AMD’s chip potentially starting as early as 2025.

Additionally, TSMC has continued to explore new areas of growth, including advanced packaging technologies such as chip-on-wafer-on-substrate (CoWoS). These advanced packaging solutions are critical for improving the performance and efficiency of AI processors.

Additionally, while chips produced at the Arizona fab currently need to be shipped overseas to be packaged, these solutions will eventually enable TSMC to complete the packaging process in the Arizona facility thanks to a recent partnership with Amkor Technology (NASDAQ:AMKR).

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Despite starting the year strong with prices trending above US$106 per pound, uranium values have spent much of the last six months contracting.

“I’ve been following this market for about seven, pushing eight years,” Huhn said. ‘At this point, I’ve seen a lot of volatility, some screaming rallies, some extremely difficult to handle pullbacks and terrible sentiment on multiple occasions.’

He continued, “You know, we’ve got one or two of these 30 percent to 50 percent pullbacks every single year since I’ve been following this, and this year was no exception. But I would argue that the sentiment in the sector was worse than I’ve ever seen it this summer, which is extraordinary.”

Although prices have slipped around 20 percent since the January highs, they’ve stabilized above US$80 in early October.

The uranium insider expects prices to start moving higher this month. “The US utilities have a new budget, with the beginning of the fiscal year,’ he explained

Adding to that positive sentiment, Huhn also noted that the long-term outlook for nuclear and uranium demand is very positive, driven by factors like growth in data center electricity demand, support from major banks and tech companies, and policy initiatives from the US Department of Energy.

Watch the interview above for Huhn’s full overview of the uranium market and his expectations for uranium stocks.

Interview by Charlotte McLeod. Article by Georgia Williams.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Britain’s Prince and Princess of Wales made a surprise visit to Southport, northwest England, on Thursday, where they met the bereaved families of three children killed in a knife attack in July.

The visit was the first public appearance for Catherine, known as Kate, since she finished her chemotherapy treatment.

Bebe King, 6, Elsie Dot Stancombe, 7, and Alice da Silva Aguiar, 9, were fatally stabbed while attending a Taylor Swift-themed dance class in the town on July 29.

The royal couple met privately with the families of the three young girls, as well as with their dance teacher who was present during the attack.

William and Kate – who has only carried out a handful of public appearances this year – also met with emergency services personnel who responded to the scene in July, as well as mental health practitioners who have been supporting the “blue light” community in the months since.

“I can’t underestimate how grateful they [the families] all are for the support you provided on the day,” Kate told the responders, according to Britain’s PA Media news agency, during the deeply emotional sit-down. She then thanked the frontline staff on behalf of the families.

Meanwhile, William, the heir to the British throne, told the group that they were “heroes” and urged them to “make sure you look after yourselves.”

“Please take your time, don’t rush back to work,” he added.

Following the unexpected appearance in Southport, William and Kate spoke of their “powerful” visit on social media.

“We continue to stand with everyone in Southport. Meeting the community today has been a powerful reminder of the importance of supporting one another in the wake of unimaginable tragedy. You will remain in our thoughts and prayers,” the couple wrote in a post on X.

At the time of the knife attack, the Waleses released a statement on social media from their perspective as parents. “We cannot begin to imagine what the families, friends and loved ones of those killed and injured in Southport today are going through,” they said in July, before sending their “love, thoughts and prayers” and gratitude to emergency responders.

The pair also made a donation through their royal foundation to a fundraiser set up to provide psychological and physical rehab for police and ambulance personnel involved in the attack and the subsequent riots.

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    Kate, 42, has been easing her way back into public life following her announcement that she had completed chemotherapy and was cancer free in a video last month. She has not revealed the type of cancer she was being treated for.

    The princess said the past nine months had been challenging but that “I am, however, looking forward to being back at work and undertaking a few more public engagements in the coming months when I can.”

    In recent weeks, she has been holding a number of meetings primarily focused on her early years work and her upcoming annual Christmas carol concert.

    She also made a private visit to the English National Ballet a few weeks ago for a matinee show, posting about the “moving and inspiring” performance on social media afterwards.

    The Wales aren’t the only royals to show their support for the bereaved families and Southport community. King Charles III made a similar visit to the area in August to meet those affected by the attack and thank frontline emergency workers.

    This story has been updated.

    This post appeared first on cnn.com

    Concerns are mounting for the safety of United Nations peacekeeping forces in southern Lebanon amid Israel’s ground incursion, UN peacekeeping chief Jean-Pierre Lacroix warned on Thursday, after Israeli fire resulted in the injury of two UN troops.

    Briefing the UN Security Council on Thursday, UN Under-Secretary General for Peace Operations Lacroix described hostilities between Israeli forces and Iran-backed militant group Hezbollah in southern Lebanon as “increasingly alarming,” and putting “peacekeepers at serious risk.”

    “The safety and security of peacekeepers is now increasingly in jeopardy,” Lacroix said.

    The UN Interim Force in Lebanon (UNIFIL) reported early Thursday that the peacekeepers were injured after an Israeli tank fired toward an observation tower at its headquarters in the southern Lebanese city Naqoura.

    The Israeli tank fire directly hit the tower, causing the peacekeepers to fall, UNIFIL said, adding that other “nearby positions have been repeatedly hit.”

    UNFIL said that “any deliberate attack on peacekeepers is a grave violation of international humanitarian law.”

    The Israel Defense Forces (IDF) have accused Hezbollah of operating in areas near UNIFIL posts, and said in a statement that it had asked UNIFIL forces to “remain in protected spaces” during the incident.

    “The IDF is operating in southern Lebanon and maintains routine communication with UNIFIL,” the IDF said in a statement after Thursday’s incident.

    “This morning (Thursday), IDF troops operated in the area of Naqoura, next to a UNIFIL base. Accordingly, the IDF instructed the UN forces in the area to remain in protected spaces, following which the forces opened fire in the area,” the statement added.

    UN deputy spokesperson Farhan Haq said the two peacekeepers – both Indonesian – were hospitalized. Their injuries are not serious, he said.

    UN peacekeepers have been stationed in southern Lebanon since 2006, per a mandate by the United Nations Security Council. UN peacekeepers were drawn from armies of several nations to monitor the situation along the roughly 120-kilometer (74-mile) Blue Line which separates the two states.

    The incident came as Israel expands its strikes across Lebanon. On Thursday, Israeli strikes on a densely populated Beirut neighborhood killed at least 22 people and wounded 117, the Lebanese health ministry said.

    International outcry

    The injury of the UN peacekeepers drew condemnation from several countries including Italy, France, and Ireland, who all have contingents in the UN peacekeeping mission in Lebanon.

    Italy’s Prime Minister Giorgia Meloni summoned the Israeli ambassador in Rome on Thursday after what she described as “unacceptable” behavior by the Israeli forces.

    Meloni’s office said two Italian bases of UNIFIL were “hit by gunfire from the Israeli army” on Thursday and added that the prime minister spoke to the Commander of the Western Sector of the UNIFIL mission, Gen. Stefano Messina, for an update on the safety of the Italian troops.

    The Italian leader also contacted Israel’s Defense Minister Yoav Gallant to “firmly remind” him that “what is happening near the Italian UNIFIL bases in southern Lebanon” is “unacceptable,” according to an Italian government statement.

    Indonesia’s mission to the UN blasted Israel over what it called “deliberate attacks,” saying Friday that Israel’s actions “represent a blatant attempt to spread terror on the ground to intimidate both the peacekeeping mission and international community.”

    France also expressed “deep concern” after the attack, saying it was “awaiting explanations from the Israeli authorities.”

    “The protection of peacekeepers is an obligation imposed on all parties to a conflict. France calls on the parties to respect this obligation, and to allow UNIFIL to continue to implement its mandate, including by respecting its freedom of movement,” a spokesperson for the French foreign ministry said.

    Irish Foreign Minister Micheál Martin described the IDF’s “targeting & firing on UNIFIL positions” as “reprehensible” and “unacceptable.”

    Earlier this week, Irish Prime Minister Simon Harris also expressed concern after Israeli tanks were stationed close to an UN outpost manned by Irish peacekeepers.

    The European Union High Representative for Foreign Affairs Josep Borrell condemned what he called an “inadmissible act,” posting to X: “Another line has been dangerously crossed in Lebanon: IDF shelling of UN peacekeepers whose positions are known. We condemn this inadmissible act, for which there is no justification.”

    The EU foreign policy chief reiterated his support for UNIFIL and called for full accountability regarding the incident.

    This post appeared first on cnn.com

    Nobuyo Oyama, the voice of beloved Japanese anime “Doraemon” for a generation of children across Asia, has died at age 90, her agency confirmed on Friday.

    Oyama died on September 29 due to old age, according to the Actors 7 agency. It apologized for the delay in its statement, adding: “We would like to express our sincere gratitude for the kindness you extended to the deceased during her lifetime.”

    A private funeral attended by relatives was held for Oyama, the agency said.

    Oyama was best known for voicing the eponymous character in the “Doraemon” television show, which aired from 1979 through 2005 – just one of three shows in the larger Doraemon franchise, which became globally popular, especially in regional markets like Hong Kong and Vietnam.

    The franchise includes dozens of animated films, video games, music albums and manga series.

    They follow the adventures of Doraemon, a robotic cat from the 22nd century who arrives in the present day to help a young boy called Nobita “who’s terrible at everything,” according to the franchise’s official website. The friendly-looking blue-and-white character often rescues Nobita by pulling secret gadgets from the future out of the pocket in his stomach.

    Oyama was born in Tokyo, according to Japan’s public broadcaster NHK. Before voicing Doraemon, she also played a role in NHK’s puppet show “Boo Foo Woo,” which ran from 1960 to 1967, the broadcaster said.

    But it was the animated show that launched her to worldwide fame – so much so that the 1979 show is also known as the “Oyama edition” to distinguish it from other Doraemon adaptations.

    The news of Oyama’s death spurred a wave of tributes on social media, with fans from across the world expressing condolences and remembering her as an iconic voice of their childhoods.

    “Ms. Nobuyo Ōyama… She was someone who supported me from the very beginning of my career. Thank you so much for all your hard work over the years. I truly appreciate it,” tweeted Kazuhiko Inoue, who voiced fan favorite character Kakashi in the global manga hit “Naruto,” and had parts in other popular series including “JoJo’s Bizarre Adventure” and “Demon Slayer.”

    “When I think of Doraemon, Nobuyo Oyama’s voice plays in my mind,” one user wrote on social platform X. Another wrote: “Doraemon, I’ve loved you ever since I can remember, thanks to Nobuyo Oyama.”

    Others expressed grief that Oyama had died so shortly after the death in July of Noriko Ohara, the voice of Nobita.

    This post appeared first on cnn.com

    Russian President Vladimir Putin said he shares a “very close” worldview with his Iranian counterpart Masoud Pezeshkian, as the sanctioned leaders held a friendly inaugural meeting just as the Middle East braces for Israel’s response to Tehran’s largest-ever missile attack last week.

    The meeting at a regional summit in Ashgabat, the capital of the Central Asian country Turkmenistan, also comes against a backdrop of closer military ties between Iran and Russia’s military in recent years, particularly since the invasion of Ukraine in February 2022.

    “We are actively working together in the international arena and our assessments of events taking place in the world are often very close,” Putin said during the landmark meeting, according to Russian state media outlet TASS.

    “Since Ukraine, the two countries have been more equal in terms of both needing each other and relying each other on specific issues. And that, I think, has been seen as beneficial from the Iranian side,” said Aniseh Bassiri Tabrizi, senior analyst and associate fellow, at UK think tank Chatham House.

    Moscow and Tehran have a de facto military alliance in the region to support the regime of Syrian President Bashar al-Assad. Analysts say the countries have found further common ground as they are increasingly isolated by global sanctions.

    There is a perception in Moscow that Iran can teach Russia about the tools to evade sanctions, Bassiri Tabrizi noted, adding, “I think it’s overall a goal from the Iranian side, so that has been part of the broader conversation about being part of the BRICS,” the bloc of major emerging economies that Iran formally joined early this year.

    Pezeshkian, a reformist who won Iran’s election in July following the death of President Ebrahim Raisi in a helicopter crash, has already emphasized his desire to strengthen bilateral cooperation with Russia to counter the “cruel” sanctions of the West.

    In a meeting with Russian Prime Minister Mikhail Mishustin in Tehran last week, the Iranian leader called for accelerating joint projects. Meanwhile, Russia expressed interest in expanding trade and economic cooperation as well as diversifying its bilateral trade with Iran.

    The Russian prime minister also invited Pezeshkian to attend the October BRICS summit in Russia, where the two countries are expected to sign a comprehensive strategic agreement.

    The Russian foreign ministry has touted these meetings as evidence that Russia-Iran relations are at an “all-time high,” according to TASS.

    Ahead of the meeting, Kremlin spokesman Dmitry Peskov said the agenda will focus on “primarily bilateral Russian-Iranian relations,” according to TASS. “But, of course, the situation in the Middle East will not be ignored, it will also be on the agenda. In any case, there will be a serious conversation.”

    There have also been reports of Russian involvement in arms transfers to the Iran-backed Houthis. Viktor Bout, the Russian arms dealer who was exchanged in a prisoner swap for American basketball star Brittney Griner, has allegedly reentered the arms trade to broker the sale of $10 million worth of automatic weapons to the Yemen-based rebels, The Wall Street Journal and other Western media outlets reported this week, citing unnamed Western officials. Bout has denied that.

    However, developments in the Middle East have not necessarily strengthened Iran-Russia relations, Bassiri Tabrizi noted, and some analysts argue that Russia stands to benefit from the conflicts involving Iranian proxies distracting from the war in Ukraine on the international stage.

    This post appeared first on cnn.com