ADVFN UK Market News

Category: Market News

  • AI Revolution Could Reshape the CPU Industry, Wolfe Research Says

    AI Revolution Could Reshape the CPU Industry, Wolfe Research Says

    Processor market expected to expand significantly

    Wolfe Research believes the rapid adoption of artificial intelligence technologies will create a major growth cycle for the processor industry, forecasting that the global CPU opportunity will expand by roughly 30% through 2028.

    The firm argues that access to advanced manufacturing capacity, particularly at TSMC, may prove more important than pure product performance in determining winners and losers across the sector.

    Orchestration computing emerges as a major growth theme

    One of the strongest opportunities identified by Wolfe is the emergence of orchestration CPUs, which are expected to become increasingly important as AI infrastructure evolves.

    The firm expects demand to accelerate sharply by 2028 as Nvidia’s Rubin Ultra architecture pushes CPU-to-GPU deployment ratios toward parity.

    Despite this opportunity, Wolfe believes the segment will remain largely controlled by companies that already dominate GPU and accelerator markets.

    ARM expected to capture growing influence

    Wolfe also sees substantial momentum behind ARM-based processors within agentic AI workloads.

    Thanks to advantages in energy efficiency and parallel processing performance, ARM architectures are projected to secure between 50% and 75% of the agentic CPU market.

    If ARM captures half of that segment, its share of the broader CPU industry could rise from approximately 15% today to 45% by 2028.

    AMD positioned for outsized gains

    Among leading semiconductor companies, Wolfe views Advanced Micro Devices (NASDAQ:AMD) as the standout beneficiary of the AI-driven CPU expansion.

    Server CPU revenue is projected to increase from $17 billion in 2026 to $44 billion by 2028, creating a significant earnings opportunity.

    The firm estimates AMD’s earnings power could reach between $25 and $30 per share by 2028.

    Intel faces a more challenging path

    Intel (NASDAQ:INTC) is expected to benefit from broader industry growth, but Wolfe believes the company will continue to lose market share across multiple categories.

    Competitive pressure from internally developed processors such as Google’s Axion, combined with growing adoption of ARM-based alternatives, is expected to weigh on Intel’s position.

    Nevertheless, the firm still projects Intel’s server CPU revenue to nearly double by 2028.

    Nvidia remains the dominant force

    Nvidia (NASDAQ:NVDA) is expected to remain the largest player in the market, with CPU shipments surpassing four million units this year.

    Agentic CPU revenue alone could climb from $6.6 billion in 2026 to nearly $25 billion by 2028.

    However, Wolfe notes that CPUs will represent only a relatively small contributor to Nvidia’s earnings compared with its dominant accelerator business.

    Arm Holdings gains from several trends

    Arm Holdings (NASDAQ:ARM) could benefit from multiple sources of growth, including royalties from datacenter processors, increasing adoption of ARM-based AI systems and revenue from future proprietary chip initiatives.

    Wolfe estimates that these opportunities could support earnings power of approximately $4.50 per share by 2028.

    AI demand supports the broader semiconductor ecosystem

    The anticipated expansion of AI computing is expected to benefit not only chip designers but also semiconductor manufacturing equipment suppliers.

    Wolfe forecasts roughly 20% growth in wafer demand over the next two years, although GPUs and AI accelerators are still expected to account for the majority of advanced manufacturing requirements.

    Overall, the firm sees artificial intelligence as a powerful catalyst that could reshape the competitive landscape of the CPU industry over the remainder of the decade.

  • Gold Pullback Tests Investor Conviction as Key Support Levels Hold

    Gold Pullback Tests Investor Conviction as Key Support Levels Hold

    Technical Picture Suggests a Crucial Moment for Gold

    After a period of weakness, gold is approaching a potentially decisive point, with several important technical indicators converging near current price levels.

    According to Yardeni Research, the metal is now sitting on a strong foundation of support, creating conditions that could offer an attractive buying opportunity for investors who remain focused on the longer-term outlook rather than short-term market volatility.

    Geopolitical Swings Continue to Drive Price Action

    Gold enjoyed a strong rally earlier this year, reaching a high on January 29 before coming under pressure as conflict in the Middle East intensified toward the end of March.

    A temporary ceasefire helped fuel a rebound through mid-April, but renewed uncertainty has since pushed prices lower once again.

    The latest decline has brought gold back toward a cluster of significant technical markers, including its March 26 low, its 200-day moving average and a rising trendline that has guided the market higher for more than a year.

    Yardeni Research believes the concentration of support is noteworthy, stating that “that’s quite a bit of support, which should hold, in our opinion.”

    Longer-Term Bullish Thesis Remains Unchanged

    Despite recent volatility, Yardeni argues that the broader trend remains constructive.

    The correction has effectively returned gold to the upward-sloping channel that has defined its price action since late 2023, suggesting the longer-term bullish structure remains intact.

    The firm continues to forecast that gold will reach $5,500 by the end of this year and climb to $10,000 by the end of the decade.

    In Yardeni’s view, “the rally in gold should resume once the war is over.”

    Macro Headwinds Continue to Challenge the Market

    Although the long-term outlook remains positive, several factors could continue to limit gains in the near future.

    A stronger U.S. dollar, rising bond yields and ongoing sales from central banks are all acting as obstacles for the precious metal.

    Yardeni also cautioned that monetary policy remains an important variable, warning that the Federal Reserve “is likely to turn more hawkish during the summer.”

    Should policymakers maintain a restrictive stance for longer than expected, gold could struggle to generate meaningful upside momentum in the short term.

    Strategic Portfolio Demand Could Support Prices

    The firm’s optimistic outlook is tied to a broader view of global financial markets.

    Yardeni continues to project significant long-term gains for U.S. equities, including a scenario in which the S&P 500 reaches 10,000 before the decade concludes.

    As portfolios grow alongside rising equity values, investors may increasingly seek diversification through alternative assets, with gold positioned as a natural beneficiary of that trend.

    Investors Face a Key Decision Point

    Gold’s current position reflects the balance between short-term uncertainty and long-term optimism.

    On one side are concerns surrounding interest rates, inflation expectations and geopolitical developments. On the other is a technical setup that many market participants view as unusually supportive.

    Whether the current pullback proves to be a buying opportunity or the start of a deeper correction will depend on how prices react around these support levels.

    For now, Yardeni Research remains confident that the broader bull market remains intact and that recent weakness may ultimately prove temporary within a much larger upward trend.

  • Tesla and SpaceX: Could Musk’s Empire Be Heading Toward a Historic Combination?

    Tesla and SpaceX: Could Musk’s Empire Be Heading Toward a Historic Combination?

    Tesla (NASDAQ:TSLA) has rebounded strongly from its recent lows, climbing more than 30% since April and returning to levels that many investors doubted it could revisit so quickly.

    While excitement around full self-driving technology, robotaxis and Optimus remains central to the Tesla story, another narrative is beginning to dominate conversations among analysts and investors: the possibility that Tesla and SpaceX (NASDAQ:SPCX) could eventually become a single company.

    A Merger Theory Gains Momentum

    Speculation surrounding a potential combination has intensified in recent weeks, fueled by reports that Elon Musk has discussed the idea with individuals close to both organizations.

    The timing is particularly notable because SpaceX is widely expected to pursue a public listing that could become the largest IPO ever seen. A subsequent merger with Tesla would create a company of unprecedented scale, combining two of the world’s most valuable technology brands.

    Wedbush analyst Dan Ives recently argued that such a transaction is increasingly likely, assigning an 80% to 90% probability that it could happen before 2027. He believes Musk’s long-term strategy revolves around building a fully integrated artificial intelligence ecosystem, with Tesla and SpaceX serving as complementary pillars.

    Evidence Extends Beyond Market Rumors

    Supporters of the merger thesis point to Musk’s history of gradually connecting his companies through investments, partnerships and shared resources.

    Tesla’s investment in xAI earlier this year, followed by SpaceX’s acquisition of the AI company, strengthened links across Musk’s corporate network. Combined with the previous integration of X into the ecosystem, the transactions suggest a deliberate effort to align strategic assets.

    The companies are also collaborating on infrastructure projects, including the Terafab semiconductor facility that will support future technology development across multiple Musk-led ventures.

    For many observers, these developments look less like isolated decisions and more like pieces of a broader long-term plan.

    The Strategic Logic Is Easy to See

    A merged Tesla-SpaceX organization would combine some of the world’s most advanced capabilities in transportation, manufacturing, satellite communications, energy systems, artificial intelligence and space exploration.

    Tesla would contribute its expertise in electric vehicles, batteries, robotics and large-scale production. SpaceX would bring launch services, Starlink’s global satellite network and access to advanced AI technologies.

    The resulting company could become one of the most diversified and technologically sophisticated enterprises ever created.

    Dan Ives has referred to this vision as the “holy grail” of Musk’s broader ambitions, highlighting the enormous strategic potential of bringing the businesses together.

    Why Skeptics Remain Cautious

    Despite the excitement, there are numerous reasons for caution.

    Questions remain about SpaceX’s valuation, while regulatory, legal and shareholder hurdles could complicate any attempt to combine two companies of this size.

    Prediction markets currently assign only modest odds to such a transaction occurring within the next year, suggesting that many investors remain unconvinced.

    There is also the practical challenge of integrating two highly complex organizations while preserving growth and execution across both businesses.

    An Idea That Refuses to Go Away

    Whether a merger ever happens remains unknown. However, the growing overlap between Tesla and SpaceX has ensured that the discussion is no longer confined to speculation on social media.

    As Musk continues to build connections across his corporate empire, Wall Street is increasingly treating the possibility as a legitimate strategic scenario rather than an impossible dream.

    For now, investors are left watching closely as the relationship between two of the world’s most ambitious companies continues to evolve.

  • SpaceX, OpenAI and Anthropic Are About to Test the Limits of the AI Bull Market

    SpaceX, OpenAI and Anthropic Are About to Test the Limits of the AI Bull Market

    The second half of 2026 could become one of the most consequential periods in modern market history.

    Within days of each other, SpaceX (NASDAQ:SPCX) and OpenAI moved closer to public listings, while Anthropic is reportedly evaluating a debut of its own. If all three proceed, public investors could be asked to absorb nearly $3 trillion of new market value in an exceptionally short period.

    This isn’t simply an IPO boom. It’s a large-scale test of whether investors are still willing to pay premium prices for transformative stories that promise enormous future potential but often remain years away from mature profitability.

    SpaceX Is Preparing for the Biggest IPO Ever

    SpaceX has progressed beyond speculation and into execution.

    The company has publicly filed for its IPO and is targeting a launch schedule that could see shares begin trading as early as mid-June under the SPCX ticker.

    The proposed transaction would dwarf previous IPO records, potentially raising up to $80 billion while valuing the company at roughly $1.75 trillion or more.

    At that level, SpaceX would immediately join the ranks of the world’s most valuable publicly traded companies.

    Why Investors Are Willing to Pay Up

    Unlike many high-growth businesses, SpaceX already operates multiple proven commercial franchises.

    Starlink has become one of the most successful satellite communications businesses ever built, while the company’s launch operations continue to dominate the global space industry.

    Revenue growth has been substantial, and profitability is beginning to emerge in key segments.

    Still, investors are being asked to price in not only today’s business but also future opportunities spanning artificial intelligence, advanced communications and long-term space exploration.

    OpenAI Faces a Different Challenge

    OpenAI’s path to the public markets rests on a different narrative.

    The company has built one of the most recognizable technology brands in the world through ChatGPT and its expanding enterprise platform.

    Revenue growth has been extraordinary, but so has spending.

    OpenAI remains heavily dependent on large-scale investment in computing infrastructure, and profitability remains a distant objective.

    The company is effectively asking investors to finance what may be the most capital-intensive software expansion strategy ever attempted.

    The Bigger Question Facing Markets

    The arrival of SpaceX, OpenAI and potentially Anthropic raises a broader issue.

    Can markets continue supporting trillion-dollar growth narratives at a time when valuations are already elevated and economic uncertainty remains present?

    The answer will shape not only the future of these companies but also the trajectory of the broader AI investment cycle.

    Risks Extend Beyond Individual Companies

    The most immediate concern is liquidity.

    Mega-listings of this scale have the potential to redirect capital away from smaller growth companies and emerging IPO candidates.

    There are also valuation risks. Successful debuts could push technology multiples even higher, while disappointing performance could trigger a broader reassessment of AI-related investments.

    Index inclusion presents another challenge, potentially exposing millions of passive investors to companies that remain volatile and difficult to value.

    The Market’s Verdict Is Approaching

    Despite the risks, these offerings represent genuine innovation rather than speculative concepts alone.

    SpaceX and OpenAI have built businesses with real customers, meaningful revenues and significant technological influence.

    The coming IPO wave will therefore serve as something larger than a fundraising exercise. It will be a public verdict on whether investors still believe the AI revolution can justify the extraordinary valuations attached to its biggest players.

    If demand remains strong, the boom could continue.

    If confidence begins to crack, these offerings may become remembered as the moment when optimism finally encountered its limits.

  • Oil set for biggest weekly drop in months as diplomacy eases supply concerns

    Oil set for biggest weekly drop in months as diplomacy eases supply concerns

    Crude retreats as traders focus on U.S.-Iran negotiations

    Oil prices slipped on Friday and remained on track for substantial weekly losses as investors increasingly priced in the possibility of a diplomatic breakthrough between the United States and Iran.

    Brent crude fell 1.2% to $92.55 per barrel, while U.S. WTI crude dropped 2.0% to $87.11 per barrel during early trading.

    If current levels hold, both benchmarks are expected to record weekly declines of roughly 10%, their steepest losses since the beginning of April.

    Draft agreement boosts market confidence

    Recent reports suggest that U.S. and Iranian officials have reached a preliminary framework that would extend a ceasefire by 60 days while discussions continue on nuclear issues and regional stability.

    The proposal still awaits approval from President Donald Trump, but markets have already begun reacting to the prospect of reduced geopolitical tensions.

    Investors view the potential agreement as a step toward restoring more normal shipping conditions through the Strait of Hormuz and reducing the risk of near-term supply disruptions.

    Supply risks remain despite improving sentiment

    Although diplomatic progress has improved sentiment, shipping traffic through the Strait of Hormuz remains far below pre-conflict levels.

    That continued disruption has prevented risk premiums from disappearing entirely from the oil market.

    According to ING analysts, “The market has increasingly priced in a resolution this week. Therefore, any confirmation of a deal that reopens the strait means that significant further downside is likely limited, particularly during the early stages of a ceasefire.”

    They added that “The market is more vulnerable now than it was pre-war, given the significant inventory drawdowns we have seen over the last 3 months.”

    Headlines continue to drive sharp market swings

    Recent trading has been characterized by elevated volatility as investors react to changing developments surrounding the ceasefire process.

    Prices briefly moved higher on Thursday after reports of renewed military activity involving U.S. and Iranian forces, but the rally quickly faded as attention returned to diplomatic efforts.

    Inflation and growth concerns remain in focus

    Beyond geopolitical developments, markets continue to monitor economic indicators that could influence energy demand.

    Recent U.S. inflation data showed stronger-than-expected price growth, reinforcing expectations that the Federal Reserve may delay any shift toward lower interest rates.

    At the same time, revised GDP figures pointed to softer economic growth during the first quarter, raising concerns that slower activity could eventually weigh on fuel consumption.

    Attention turns to next developments

    With oil prices under pressure and market sentiment closely tied to diplomatic headlines, investors are waiting for confirmation on whether the proposed ceasefire extension will move forward.

    Until then, crude markets are likely to remain highly sensitive to developments in both the Middle East and the broader global economy.

  • Wall Street set for gains as investors monitor potential U.S.-Iran breakthrough: Dow Jones, S&P, Nasdaq, Futures

    Wall Street set for gains as investors monitor potential U.S.-Iran breakthrough: Dow Jones, S&P, Nasdaq, Futures

    U.S. equity futures traded modestly higher ahead of Friday’s opening bell, indicating that Wall Street could build on the gains recorded in the previous session as markets continue to assess reports of progress in negotiations between the United States and Iran.

    Improving expectations that diplomatic efforts could reduce tensions in the Middle East have boosted investor confidence, while falling oil prices have added further support to risk assets.

    Oil prices retreat amid ceasefire extension reports

    Energy markets moved lower after reports suggested that Washington and Tehran had reached a preliminary framework to extend their current ceasefire arrangement by an additional 60 days.

    U.S. crude futures fell 1.4% following the news, which indicated that the proposed agreement could lead to the reopening of the Strait of Hormuz and revive discussions surrounding Iran’s nuclear programme.

    However, investors remain cautious as the reported framework still requires approval from President Donald Trump before it can move forward.

    Dell earnings spark enthusiasm in technology sector

    Technology stocks looked set to provide a positive catalyst after Dell Technologies (NYSE:DELL) surged more than 30% in pre-market trading.

    The computer manufacturer exceeded analysts’ expectations with its fiscal first-quarter results and simultaneously increased its outlook for the remainder of the year.

    The strong performance reinforced confidence in the technology sector, which has continued to play a central role in driving broader market gains.

    Markets await confirmation before taking bigger risks

    Despite the constructive tone, traders appeared hesitant to fully embrace risk until there is greater clarity regarding the reported agreement between the United States and Iran.

    “Overall, markets are heading into the weekend in a good position as risk appetite has improved as geopolitical fears ease and inflation data avoids a major upside surprise,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

    “However, positioning remains optimistic, valuations are elevated and much of the recent rally still relies on assumptions that tensions continue to de-escalate and earnings remain resilient,” she added. “That means investors are likely to remain highly sensitive to both geopolitical headlines and incoming inflation data in the weeks ahead.”

    Thursday rally sends major indices to new records

    Thursday’s session began on a weak note before stocks staged a powerful recovery later in the day.

    The turnaround pushed all three major benchmarks into positive territory, with technology stocks once again leading the advance.

    The Nasdaq gained 242.74 points, or 0.9%, to finish at a record 26,917.47. The S&P 500 rose 43.27 points, or 0.6%, to 7,563.63, while the Dow Jones Industrial Average added 24.69 points, or 0.1%, ending at 50,668.97.

    Axios report fuels market optimism

    The shift in sentiment followed a report from Axios claiming that U.S. and Iranian negotiators had agreed on the outline of a 60-day memorandum of understanding.

    According to Axios, which cited two U.S. officials and a regional source familiar with the mediation efforts, the proposal would extend the ceasefire while opening formal negotiations over Iran’s nuclear programme.

    The report noted that President Donald Trump has yet to approve the proposal, with one U.S. official indicating that the president wanted additional time to evaluate the arrangement.

    Oil volatility highlights fragile geopolitical backdrop

    After the Axios report emerged, crude prices retreated from earlier highs, although U.S. oil futures still finished the session modestly higher after surging by as much as 4.3% during trading.

    Earlier gains in oil had been driven by reports that the United States launched another round of what it called “self-defense strikes” against targets in southern Iran, prompting Tehran to reportedly target a U.S. air base in response.

    “Investors are still broadly positioned for a de-escalation scenario in the Middle East, but recent headlines are a reminder that the path toward any agreement remains fragile,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

    Softer inflation data provides additional support

    Economic data released on Thursday also helped improve sentiment after inflation figures came in slightly below expectations.

    The Commerce Department reported that its Personal Consumption Expenditures (PCE) Price Index increased 0.4% in April, following a 0.7% rise in March. Economists had forecast a 0.5% increase.

    On an annual basis, headline PCE inflation accelerated to 3.8% from 3.5%, matching market expectations.

    The core PCE index, which excludes food and energy prices, rose 0.2% in April after increasing 0.3% in March. Economists had expected another 0.3% gain.

    Annual core inflation edged up to 3.3% from 3.2%, in line with consensus forecasts.

    Technology and biotech sectors lead the market higher

    Technology shares were among the strongest performers of the day, helping propel the Nasdaq to another record close.

    The Dow Jones U.S. Software Index advanced 3.4%, while the NYSE Arca Computer Hardware Index climbed 2.9%.

    Biotechnology stocks also posted impressive gains, with the NYSE Arca Biotechnology Index rising 2.6%.

    Additional strength was seen across gold-related, pharmaceutical and healthcare stocks, while oil services and utility companies lagged behind as investors rotated into higher-growth areas of the market.

  • European markets move higher as easing geopolitical tensions lift sentiment: DAX, CAC, FTSE100

    European markets move higher as easing geopolitical tensions lift sentiment: DAX, CAC, FTSE100

    European equities traded in positive territory on Friday, supported by improving investor sentiment after reports suggested the United States and Iran had reached a preliminary agreement to prolong their ceasefire. Meanwhile, the U.S. dollar was on track for a modest weekly decline, while oil prices fell to their lowest levels in a month.

    According to reports, the proposed arrangement would extend the ceasefire by 60 days, subject to final approval from U.S. President Donald Trump.

    Under the framework being discussed, Iran would be prevented from charging fees on vessels passing through the Strait of Hormuz, while the United States would gradually ease restrictions affecting Iranian ports and maritime trade.

    Major European indices post gains

    The prospect of reduced geopolitical risk helped support equity markets across the region.

    France’s CAC 40 advanced 0.6%, outperforming its European peers. The U.K.’s FTSE 100 gained 0.2%, while Germany’s DAX added 0.1% as investors responded positively to signs of progress in diplomatic negotiations.

    The decline in oil prices also contributed to the more constructive market tone, easing concerns about energy-related inflation pressures.

    Pernod Ricard remains under pressure in India

    Shares of Pernod Ricard (EU:RI) were little changed during the session after the company suffered a setback in one of its key international markets.

    An Indian court rejected a request from the French spirits producer seeking authorization to resume sales of its products in New Delhi, limiting the company’s access to a strategically important consumer market.

    Renault gains after emissions targets receive approval

    Automaker Renault (EU:RNO) was among the stronger performers after receiving validation for its updated emissions reduction roadmap.

    The Science Based Targets Initiative approved the company’s revised short- and long-term climate objectives, replacing targets originally established in 2019.

    The endorsement was viewed positively by investors as Renault continues to align its operations with increasingly demanding environmental standards and sustainability goals.

    CTS Eventim jumps on strong quarterly growth

    German ticketing and live entertainment group CTS Eventim (TG:EVD) posted one of the strongest gains of the day after reporting robust first-quarter results.

    The company announced that revenue increased by 23% year-on-year during the quarter, reflecting continued strength in demand for live events and ticketing services.

    The performance reinforced confidence in the company’s growth outlook and highlighted the resilience of the entertainment sector despite broader economic uncertainty.

  • Aquis Stock Exchange Weekly Highlights 25.05.26

    Aquis Stock Exchange Weekly Highlights 25.05.26

    Sulnox Group PLC (AQSE:SNOX) announced a further distribution agreement with Skyzone Technologies, a Pakistan-based energy and industrial solutions provider. This continues Sulnox’s expansion across South Asia, following recent partnerships in India and Sri Lanka, and provides access to a significant diesel-powered industrial market where fuel efficiency and energy reliability are key concerns. Read more

    Wishbone Gold Plc (AQSE:WSBN) completed the acquisition of the Silver Lake Project, a high-grade silver project in the Carnarvon Basin of Western Australia. The Company cited growing silver demand driven by electric vehicles, AI data centres and solar panels as part of the rationale for the acquisition. Exploration work is expected to begin on site in June, with drilling targeted for Q3 2026.

    Richard Poulden, Chairman: “We believe Silver Lake has the potential to be a high value opportunity which complements our exploration work at Red Setter and gives us an exciting project that we can work all year round. Silver Lake broadens the Company’s commodity exposure in the precious metals and strengthens its exploration pipeline.” Read more

    ProBiotix Health Plc (AQSE:PBX) announced a new partnership with Spain-based Bioksan for the supply of its patented probiotic strain across Spain and Portugal, worth approximately €200,000 a year.

    Steen Andersen, CEO: “We are delighted to be working with an early adopter like Bioksan and pleased that they have chosen to include LPLDL® in their leading cardiovascular health product, Lipok, following a reformulation targeted at cholesterol reduction. We believe there are limited clinically validated and compliant alternatives for Monacolin K, so expect other European supplement brands to follow suit”. Read more

    Capital for Colleagues plc (AQSE:CFCP) reported unaudited interim results for the six-months ended February 2026, with net assets rising to £15.7m and NAV per share increasing to 85.5 pence, up from 74.3 pence a year earlier. The Company recorded a profit before tax of £2.13m for the period, compared with a loss of £1.43m in the same period last year, driven largely by an upward revaluation of its investment portfolio. Read more

    Cooks Coffee Company Limited (AQSE:COOK) reported preliminary results for the year ended 31 March 2026. It highlighted that Group store sales in the UK and Ireland increased by 23% to £43.1m (FY25: £33.9m), Group revenue rose by 84% to £5.4m (FY25:£2.9m) and a total number of 12 new group sites. Read more

    All Aquis Stock Exchange Announcements

  • Oil markets pause after sharp sell-off as traders monitor U.S.-Iran negotiations

    Oil markets pause after sharp sell-off as traders monitor U.S.-Iran negotiations

    Oil prices were relatively stable on Friday, although crude benchmarks remained on course for their largest weekly declines in nearly three months as investors weighed reports of progress toward a potential extension of the ceasefire between the United States and Iran.

    By 0810 GMT, Brent crude futures for July delivery were trading 0.3% lower, down 34 cents at $94.05 per barrel. U.S. West Texas Intermediate crude futures held near unchanged levels at $88.89 per barrel after both contracts had fallen by more than 1% earlier in the day.

    The weekly losses have been substantial. Brent is set to finish the week down around 9%, marking its sharpest decline since the week ending April 6. Meanwhile, WTI has shed almost 8%, putting it on track for its biggest weekly drop since the week ending April 13.

    Diplomatic talks remain the dominant market driver

    Despite ongoing supply disruptions and tightening inventories, market participants continue to focus primarily on developments surrounding negotiations between Washington and Tehran.

    “While oil flows through the Strait of Hormuz remain restricted and oil inventories keep falling, the market focus remains on the possibility of a deal between the U.S. and Iran,” said UBS analyst Giovanni Staunovo.

    Sources cited by Reuters said the two countries reached a preliminary understanding on Thursday that would extend the existing ceasefire and remove restrictions on maritime traffic through the Strait of Hormuz. However, the proposal still requires approval from U.S. President Donald Trump, while Iranian state media has stated that discussions have not yet resulted in a finalised agreement.

    Hormuz shipping route remains critical to energy markets

    Recent trading sessions have been characterised by significant price swings, with both Brent and WTI moving as much as $6 per barrel as investors reacted to changing headlines regarding the Iran conflict and the future status of the Strait of Hormuz.

    Before the outbreak of hostilities, the strategic waterway handled roughly one-fifth of global oil and liquefied natural gas shipments, making it one of the world’s most important energy transit routes.

    Although hopes of reopening the passage have improved market sentiment, shipping activity through the corridor remains only a fraction of the levels seen before the conflict erupted.

    Analysts at ING noted that restoring normal traffic through the strait would provide immediate relief for global energy markets, although they cautioned that the recovery process could take time and remains far from guaranteed.

    The disruption has already had a noticeable impact on major importing nations. Japan, which relies heavily on Middle Eastern crude supplies, reported a 66% decline in oil imports last month compared with the same period a year earlier.

    Falling U.S. inventories provide underlying support

    At the same time, inventory figures from the U.S. Energy Information Administration pointed to stronger underlying demand conditions.

    Data released on Thursday showed that U.S. stockpiles of crude oil, gasoline and distillates all declined during the previous week as refinery utilisation increased and consumer demand strengthened.

    Exports also moved lower, falling by 1.16 million barrels per day to 4.4 million barrels per day.

    While expectations of a diplomatic breakthrough have weighed heavily on prices this week, the combination of shrinking inventories, constrained supply routes and resilient demand continues to offer support to the oil market and could help limit further downside in the near term.

  • Gold steadies after volatile week as Iran diplomacy and inflation concerns compete for attention

    Gold steadies after volatile week as Iran diplomacy and inflation concerns compete for attention

    Gold prices posted modest gains in Asian trading on Friday as investors assessed signs of diplomatic progress between the United States and Iran, while remaining mindful of inflationary pressures stemming from elevated energy costs.

    Spot gold climbed 0.4% to $4,514.27 an ounce by 02:40 ET (06:40 GMT), while U.S. gold futures rose 0.3% to $4,543.75 an ounce.

    The yellow metal experienced sharp swings during the previous session, initially falling to its lowest level in two months before rebounding to finish 0.8% higher after reports suggested renewed negotiations between Washington and Tehran were on the horizon.

    Despite the late recovery, gold was on course to end the week little changed overall, reflecting the uncertainty that has gripped markets amid shifting developments surrounding the Middle East conflict.

    Potential Iran agreement improves risk appetite

    Market sentiment received a boost after reports indicated that U.S. and Iranian negotiators had reached a tentative arrangement to extend a 60-day ceasefire and restore shipping access through the Strait of Hormuz.

    The proposed agreement has yet to receive formal approval from U.S. President Donald Trump and still requires confirmation from Iranian officials.

    Prospects for a longer-lasting truce have helped calm some of the geopolitical fears that recently supported demand for traditional safe-haven assets. Historically, periods of conflict and uncertainty tend to drive investors toward gold as a store of value.

    However, the current market environment has created competing forces, with investors increasingly focused on the inflationary impact of higher oil and energy prices resulting from disruptions in the region.

    Higher inflation expectations weigh on bullion

    Although geopolitical tensions often provide support for gold prices, concerns that inflation may remain stubbornly high have strengthened expectations that the Federal Reserve could maintain restrictive monetary policy for an extended period.

    “Markets remain cautious over whether diplomatic progress will hold, while concerns over higher energy prices continue to fuel inflation risks. This could reinforce expectations that interest rates stay higher for longer – a negative for non-yielding assets like gold,” ING analysts said in a note.

    Adding to the cautious mood, data released on Thursday showed that the U.S. personal consumption expenditures (PCE) price index — the inflation measure most closely watched by the Federal Reserve — rose 3.8% year-on-year in April, marking the strongest increase in roughly three years.

    The stronger inflation reading reinforced market expectations that policymakers will be reluctant to ease monetary policy in the near term and could keep borrowing costs elevated well into next year.

    While Treasury yields moved slightly lower following the release, they remained close to their highest levels in several months, reducing the attractiveness of gold relative to interest-bearing assets.

    Precious and industrial metals trade lower

    Elsewhere, silver prices slipped 0.2% to $75.52 per ounce, while platinum declined by the same margin to $1,920.30 per ounce.

    Industrial metals also weakened, with benchmark copper futures on the London Metal Exchange falling 0.5% to $13,661.33 per tonne. U.S. copper futures likewise moved lower, shedding 0.4% to $6.40 per pound.

    The broader commodities complex remained caught between optimism surrounding diplomatic efforts in the Middle East and concerns that elevated energy costs could continue to pressure inflation, interest-rate expectations and global economic activity.