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Category: Market Summary

  • Wall Street Futures Point Lower as Middle East Risks and Bond Yields Pressure Markets: Dow Jones, S&P, Nasdaq

    Wall Street Futures Point Lower as Middle East Risks and Bond Yields Pressure Markets: Dow Jones, S&P, Nasdaq

    U.S. stock futures traded modestly lower early Monday, indicating Wall Street could remain under pressure after Friday’s broad market sell-off.

    Geopolitical Concerns Continue to Weigh on Investors

    Markets remained focused on escalating tensions in the Middle East after President Donald Trump issued a new warning to Iran, saying the “clock is ticking.”

    Posting on Truth Social, Trump said Iran “better get moving, FAST, or there won’t be anything left of them,” intensifying concerns that Washington could return to direct military action.

    Axios, citing two U.S. officials, reported that Trump is expected to convene senior national security advisers in the Situation Room on Tuesday to evaluate military options.

    The ongoing conflict between the United States and Iran has effectively disrupted traffic through the Strait of Hormuz, one of the world’s most important oil shipping routes, driving crude prices sharply higher and increasing inflation fears.

    Bond Markets and Oil Prices Remain in Focus

    Treasury yields surged on Friday as investors increasingly speculated that the Federal Reserve’s next policy move could involve raising interest rates rather than cutting them.

    On Monday morning, however, yields eased slightly as oil futures pulled back, potentially helping stabilize sentiment on Wall Street.

    U.S. Indexes End Friday Deep in the Red

    Following gains seen on Thursday, U.S. equities reversed sharply lower during Friday’s trading session, with all three major indexes posting substantial losses.

    The Dow Jones Industrial Average dropped 537.29 points, or 1.1%, to close at 49,526.17. The Nasdaq Composite fell 410.08 points, or 1.5%, to 26,225.14, while the S&P 500 lost 92.74 points, or 1.2%, ending at 7,408.50.

    Even with Friday’s retreat, the broader weekly performance was relatively stable. The S&P 500 gained 0.1% for the week, while the Nasdaq slipped 0.1% and the Dow declined 0.2%.

    Technology Sector Leads Market Weakness

    Friday’s decline was partly driven by profit-taking after recent gains pushed the Nasdaq and S&P 500 to fresh record highs.

    Technology shares were among the biggest laggards. Intel (NASDAQ:INTC) dropped 6.6%, while Micron Technology (NASDAQ:MU) fell 6.2%.

    NVIDIA (NASDAQ:NVDA) also recorded steep losses, sliding 4.4%.

    Meanwhile, the benchmark U.S. 10-year Treasury yield climbed to its highest level in nearly a year, adding additional pressure to equity valuations.

    The move higher in yields followed economic reports showing accelerating consumer and producer inflation, increasing concerns over future Federal Reserve policy decisions.

    CME Group’s FedWatch Tool now shows a 38.9% probability that rates will be a quarter-point higher following the Fed’s final meeting of the year, compared with just 13.7% a week ago.

    Oil Rally and Sector Losses Add to Market Pressure

    Markets were also pressured by another sharp rise in oil prices, with U.S. crude futures surging more than 4%.

    The increase came after talks between President Donald Trump and Chinese President Xi Jinping delivered positive rhetoric but little meaningful progress regarding the conflict involving Iran.

    Gold mining shares fell sharply alongside declining precious metal prices, sending the NYSE Arca Gold Bugs Index down 7.1%.

    Airline stocks also came under heavy pressure, with the NYSE Arca Airline Index dropping 4.4%.

    Semiconductor stocks broadly weakened as well, dragging the Philadelphia Semiconductor Index down 4%.

    Steel producers, homebuilding companies and computer hardware stocks also posted notable declines, while energy producers and software shares managed to outperform the broader market.

  • European Markets Trade Mixed as Investors Monitor Middle East Tensions: DAX, CAC, FTSE100

    European Markets Trade Mixed as Investors Monitor Middle East Tensions: DAX, CAC, FTSE100

    European equities showed a mixed performance in cautious trading on Monday as investors continued to monitor rising geopolitical tensions in the Middle East.

    G7 Ministers Meet Amid Economic and Geopolitical Pressures

    Finance ministers from the G7 nations are meeting in Paris today and tomorrow to address global economic imbalances, with geopolitical divisions threatening to challenge unity within the group.

    At the same time, eurozone government bond yields moved higher, led by Germany’s 10-year bond yield, which climbed to its highest level in 15 years. Investors remain concerned that sharply higher crude oil prices could intensify inflationary pressures and influence the path of interest rates.

    Brent crude futures advanced above $110 per barrel after U.S. President Donald Trump warned Iran that the “clock is ticking” regarding peace negotiations.

    Major European Indices Turn Mixed

    Among the leading European indices, France’s CAC 40 was down 0.4%, while the U.K.’s FTSE 100 gained 0.4% and Germany’s DAX rose 0.8%.

    Ryanair, Prudential and Anglo American Decline

    Shares of Ryanair (LSE:0A2U) moved sharply lower after the low-cost airline cautioned that rising costs could weigh on performance this year.

    Prudential (LSE:PRU) also traded lower after announcing the acquisition of a 75% stake in Bharti Life Insurance.

    Meanwhile, mining group Anglo American (LSE:AAL) declined after agreeing to sell its Australian coal mining business to privately owned Dhilmar in a deal valued at $3.88 billion.

    Hove Advances on Strong Quarterly Results

    Elsewhere, Danish engineering and industrial technology company Hove rallied after reporting record first-quarter revenue and profit growth.

  • Markets pressured by rising yields and oil prices while Samsung advances on labor talks breakthrough: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Markets pressured by rising yields and oil prices while Samsung advances on labor talks breakthrough: Dow Jones, S&P, Nasdaq, Wall Street Futures

    U.S. equity futures traded lower on Monday as investors monitored rising global bond yields and ongoing geopolitical tensions tied to Iran. Crude prices remained firmly above the $100-per-barrel level, keeping inflation risks elevated, while Samsung Electronics shares moved higher after South Korean authorities intervened in negotiations aimed at preventing a strike at the company’s semiconductor facilities.

    Futures move lower

    Wall Street futures pointed to a weaker open on Monday, weighed down by higher borrowing costs and renewed strength in energy markets.

    At 03:28 ET, Dow futures were lower by 321 points, or 0.7%, while S&P 500 futures declined 32 points, or 0.4%. Nasdaq 100 futures also slipped 96 points, or 0.3%.

    The major U.S. stock indices had already fallen more than 1% on Friday as fears intensified that the conflict involving Iran could create an inflationary energy shock.

    Even so, enthusiasm surrounding artificial intelligence investment has continued to cushion broader equity markets. The S&P 500 remains significantly above levels seen before the joint military campaign launched by the United States and Israel against Iran in late February.

    Investors are now turning their attention to earnings from semiconductor leader NVIDIA (NASDAQ:NVDA), due later this week. The company’s dominant position in AI infrastructure has helped fuel its transformation into one of the most valuable firms globally.

    Bond market volatility dominates investor attention

    According to analysts at ING, the main force currently driving financial markets is the sharp selloff across global bond markets.

    Higher bond yields increase financing costs for governments and households while also lowering the present value of future corporate profits, creating additional pressure on equity valuations.

    The yield on the benchmark U.S. 10-year Treasury climbed to its highest point in 15 months, while yields on 30-year Treasuries also continued rising. Government bond yields across Europe and Asia followed the same trend.

    The move higher has been fueled largely by surging oil prices linked to the effective shutdown of the Strait of Hormuz, a key shipping corridor near Iran through which roughly 20% of global oil supply flows.

    Investors increasingly fear that elevated energy prices could reignite inflation and force central banks to maintain restrictive monetary policy or implement further rate hikes.

    Markets now see the possibility of another Federal Reserve rate increase this year as roughly evenly balanced.

    “High oil prices and higher bond yields are a big headwind to risk assets and stand to keep the dollar supported in the near term,” ING analysts said.

    Oil extends gains as uncertainty around Iran persists

    Crude prices continued climbing as the conflict involving Iran entered its 80th day with little evidence of an imminent resolution.

    At 03:59 ET, Brent crude futures were trading 1.0% higher at $110.32 per barrel.

    Over the weekend, a drone strike caused a fire at a nuclear installation in the United Arab Emirates, while Saudi Arabia reported intercepting three drones.

    The incidents raised fresh concerns about the durability of the fragile ceasefire between Washington and Tehran. President Donald Trump posted on social media that “the clock is ticking” for Iran to secure a peace agreement. Trump later added: “I can tell you one thing — they’re dying to sing [a deal].”

    Still, analysts at Deutsche Bank noted that the ceasefire has already lasted longer than the initial phase of the fighting, which they believe could indicate that “the U.S. would prefer to avoid” renewed military action due to the associated “political and economic consequences.”

    Higher oil prices have sharply increased gasoline costs across the United States, adding to inflationary pressures ahead of November’s mid-term elections.

    Analysts warned that any escalation in military activity involving Iran could push fuel and consumer prices even higher.

    “As a result, the tense stalemate continues,” Deutsche Bank analysts wrote.

    Samsung rises after government steps into labor dispute

    Shares in Samsung Electronics (USOTC:SSNHZ) gained after South Korea’s government became involved in negotiations designed to prevent a strike at Samsung’s memory chip operations.

    Samsung and the labor union resumed talks Monday under government supervision. The renewed discussions followed comments from South Korean President Lee Jae Myung, who said that management rights should be respected alongside workers’ rights.

    Prime Minister Kim Min-seok warned over the weekend that a work stoppage at Samsung’s semiconductor business could inflict severe economic damage and needed to be avoided.

    A South Korean court also warned Samsung’s union that it could face fines of approximately 100 million won ($66,500) per day if it violates court instructions by proceeding with strike action.

    Employees at Samsung’s semiconductor division had planned to strike beginning May 21 after wage negotiations broke down, particularly following Samsung’s strong earnings tied to the boom in artificial intelligence demand.

    Samsung remains South Korea’s largest employer and its biggest corporation.

    Chinese economic indicators point to softer domestic demand

    Economic data released Monday showed a notable slowdown in Chinese manufacturing activity during April, while retail spending remained weak, highlighting continued fragility in domestic demand and ongoing stress in the country’s property market.

    Industrial production rose 4.1% year-on-year in April, below forecasts for 6.0% growth and slowing from March’s 5.7% expansion.

    “Industrial activity has been supported by strong external demand, but the rest of China’s domestic demand indicators have been quite lacklustre,” ING analysts said in a recent note.

    Retail sales increased only 0.2% compared with the previous year, missing expectations for 2.0% growth and slowing from the 1.7% increase recorded in March, suggesting Chinese consumers remain cautious.

  • Market Open: Anglo American Coal Sale, Ryanair Outlook

    Market Open: Anglo American Coal Sale, Ryanair Outlook

    FTSE 100 steadies as Anglo American sells coal mines and Ryanair warns on fuel costs while Brent crude and Bitcoin decline.

    Market Overview

    European equities moved lower in early trade as geopolitical tensions in the Middle East and renewed concerns over energy supply routes weighed on sentiment. The FTSE 100 edged higher by 0.03 per cent to 10,192.68, while the CAC40 fell 1.60 per cent and the DAX dropped 2.07 per cent. In the US, the Nasdaq slipped 0.25 per cent and the S&P 500 declined 0.20 per cent as investors monitored G7 finance discussions and developments around Iran and the Strait of Hormuz.

    Commodity markets remained volatile, with Brent crude easing slightly despite ongoing concerns over supply disruption risks linked to the Middle East. Gold traded higher as investors sought defensive assets, while copper weakened amid broader risk-off sentiment. Sterling strengthened modestly against the US dollar, euro and yen, while Bitcoin weakened against the pound.

    Market Numbers

    FTSE 100: Up (0.03%), 10,192.68
    CAC40: Down (-1.60%), 7,952.550
    DAX: Down (-2.07%), 23,950.57
    NASDAQ: Down (-0.25%), 29,062.2
    S&P 500: Down (-0.20%), 7,382.2

    In the Headlines

    Coal Mine Disposal – Anglo American (LSE:AAL)

    Anglo American has agreed to sell its Australian steelmaking coal mines for £2.9 billion as the miner continues its broader restructuring programme. The disposal supports the company’s strategy to focus on copper and premium assets while reducing exposure to more cyclical operations.

    Outlook Pressure – Ryanair (LSE:0A2U)

    Ryanair shares fell after the airline warned that fuel costs and Middle East geopolitical risks could affect its FY27 outlook despite reporting strong annual profits. Investors remain focused on how sustained oil price volatility may impact airline margins across Europe.

    Currencies (vs GBP)

    USD: Up (0.27%), $1.3357
    CHF: Down (-0.02%), Fr.1.04832
    EUR: Up (0.13%), €1.1472
    JPY: Up (0.27%), ¥212.130
    AUD: Up (0.14%), $1.866050
    Bitcoin (BTC/GBP): Down (-0.88%), £57,680.9

    Commodities

    Copper: Down (-0.30%), 6.2888
    Gold: Up (0.30%), 4,558.66
    Brent Crude: Down (-0.61%), 106.815
    Natural Gas: Up (0.51%), 3.1825

  • European markets retreat as higher bond yields and oil prices pressure sentiment: DAX, CAC, FTSE100

    European markets retreat as higher bond yields and oil prices pressure sentiment: DAX, CAC, FTSE100

    European equities traded lower on Monday as investors reacted to another rise in government bond yields and energy prices following fresh drone attacks in the Gulf region.

    By 07:02 GMT, the pan-European Stoxx 600 index had fallen 0.8%, while Germany’s DAX slipped 0.5%. France’s CAC 40 declined 1.1% and the UK’s FTSE 100 eased 0.3%.

    Market sentiment weakened after a drone strike targeted a nuclear power facility in the United Arab Emirates, while Saudi Arabia confirmed it had intercepted three drones. U.S. President Donald Trump also urged Iran to move “fast” toward securing a long-term peace agreement, adding pressure to an already fragile ceasefire between Washington and Tehran.

    Oil prices continued climbing amid the geopolitical tensions, with Brent crude futures rising 1.4% to trade at $110.75 per barrel.

    The increase in energy prices has fueled expectations that a prolonged supply shock could trigger another wave of inflation, potentially forcing central banks to keep interest rates elevated or tighten policy further. As a result, sovereign bond yields moved higher across major global markets, with bond prices falling accordingly.

    In Europe, yields on 10-year government bonds in Germany, France, Italy and Spain all advanced. Globally, the yield on the U.S. 10-year Treasury touched its highest level in 15 months, while Japanese bond yields climbed to levels not seen since 1996.

    Despite concerns that an extended conflict involving Iran could weaken the global economic outlook, equity markets have so far shown resilience, supported by ongoing enthusiasm surrounding artificial intelligence.

    Investor optimism linked to AI spending will face another major test later this week when semiconductor leader NVIDIA (NASDAQ:NVDA) publishes its latest quarterly results.

    “We think AI sentiment can lift the market further this year, but the rally is likely to remain fragile until war in Iran is resolved and the rest of the market joins in,” analysts at Capital Economics said in a note on Friday.

  • FTSE 100 slips as Iran tensions and UAE attack unsettle global markets

    FTSE 100 slips as Iran tensions and UAE attack unsettle global markets

    UK equities traded lower on Monday as escalating tensions surrounding the U.S.-Iran conflict weighed on investor sentiment after reports of new drone strikes targeting a UAE nuclear facility and fresh warnings from U.S. President Donald Trump toward Tehran intensified concerns over global energy supply disruption.

    The FTSE 100 fell 0.15%, while Germany’s DAX declined 0.60% and France’s CAC 40 lost 1.05%. Sterling strengthened 0.20% against the dollar to 1.3352 as of 03:10 ET (07:10 GMT).

    Trump warning and nuclear facility attack deepen market concerns

    Market anxiety increased after Trump posted on Truth Social on Sunday that Iran must “get moving, FAST, or there won’t be anything left of them,” adding that “TIME IS OF THE ESSENCE.”

    The remarks came as negotiations between Washington and Tehran appeared stalled, with Iranian Foreign Minister Abbas Araghchi stating that Tehran “cannot trust the Americans at all” and describing trust as “the main obstacle to any diplomatic effort.”

    Fresh concerns also emerged after a drone struck an electrical generator outside the Barakah Nuclear Power Plant in Abu Dhabi on Sunday, with suspicion quickly turning toward Iran.

    The UAE’s nuclear regulator confirmed there had been no radiation leak and that all plant units remained operational. However, International Atomic Energy Agency Director General Rafael Grossi expressed “grave concern,” warning that military activity threatening nuclear safety was unacceptable. Saudi Arabia, Qatar, Canada and India were among the countries condemning the attack.

    Axios reported that Trump is expected to convene a Situation Room meeting with senior national security officials on Tuesday to discuss military options, although the president also said he remained open to negotiations if Iran presents a revised proposal.

    UK corporate developments

    Anglo American (LSE:AAL) agreed to sell its Australian steelmaking coal operations to UK-registered Dhilmar Limited for up to $3.875 billion in cash, continuing its strategy of simplifying the business ahead of its planned merger with Teck Resources.

    The miner also disclosed that a Chilean tribunal had overturned the environmental permit for the desalination project linked to the Collahuasi copper mine, although Anglo said it does not currently expect any immediate impact on production while the implications of the ruling are clarified.

    Meanwhile, Standard Chartered (LSE:STAN) appointed Manus Costello as interim Group Chief Financial Officer with immediate effect and named Tanuj Kapilashrami as Group Chief Operating Officer as part of broader changes to its senior leadership structure.

  • Mining Shares Sink as Gold and Copper Prices Come Under Pressure Amid Iran Tensions

    Mining Shares Sink as Gold and Copper Prices Come Under Pressure Amid Iran Tensions

    London-listed mining companies traded sharply lower on Friday, with sector losses ranging from 3.5% to 7.4% after renewed tensions between the United States and Iran sparked a broader retreat across precious metals and commodity markets.

    Gold Weakness Hits Major Miners

    By 09:05 GMT, spot gold had fallen 2.6% to $4,566.75 an ounce, dragging down leading mining groups including Antofagasta (LSE:ANTO), Anglo American (LSE:AAL), Rio Tinto (LSE:RIO), Endeavour Mining (LSE:EDV) and BHP Group (LSE:BHP).

    Antofagasta was among the weakest performers on the FTSE 100, sliding 7.4%, while Anglo American dropped 5.7%. Rio Tinto lost 3.5%, Endeavour Mining declined 3.4% and BHP Group retreated 3.8%.

    U.S.-Iran Tensions Weigh on Commodity Markets

    The selloff followed a deterioration in diplomatic sentiment after U.S. President Donald Trump rejected Tehran’s latest peace proposal and warned that any ceasefire arrangement remained fragile. The comments prompted investors to pull back from earlier expectations that geopolitical tensions could begin easing.

    Pressure on gold prices has also been linked to broader macroeconomic concerns tied to the Middle East conflict.

    Earlier this year, Iran’s closure of the Strait of Hormuz pushed crude oil prices above $100 a barrel, increasing fears of persistent inflation and strengthening expectations that the U.S. Federal Reserve may keep interest rates elevated for longer.

    Higher interest rates tend to reduce the appeal of gold because the metal does not generate yield and becomes less competitive compared with income-producing assets. Despite a modest rebound in recent weeks, bullion remains around 25% below its January peak.

    Copper Outlook Still Supported by Long-Term Demand Trends

    Copper prices also moved lower, although demand from China has remained comparatively resilient throughout the year. Consumption linked to clean energy projects and technology sectors has helped offset weaker activity in China’s property and construction markets.

    Over the longer term, copper continues to receive support from expectations of rising demand tied to artificial intelligence infrastructure, upgrades to electricity grids and the broader global transition toward cleaner energy systems.

    Supply-related concerns have also underpinned the market, with China’s restrictions on sulfuric acid exports and disruptions to sulfur production in the Middle East raising the prospect of tighter global supply conditions.

  • Market Open: British Gas Compensation, Heathrow Expansion

    Market Open: British Gas Compensation, Heathrow Expansion

    FTSE 100 falls as US markets weaken, Brent crude rises on shipping fears, while British Gas and Heathrow lead headlines.

    Market Overview

    European markets moved higher in early trade, with the CAC 40 up 0.93 per cent and the DAX gaining 1.32 per cent, while the FTSE 100 fell 0.69 per cent amid weaker sentiment in London equities. US markets closed lower overnight, with the Nasdaq down 1.05 per cent and the S&P 500 slipping 0.65 per cent as investors weighed geopolitical risks, earnings expectations and concerns around the UK economic outlook linked to trade tensions and Middle East instability.

    Commodity markets remained active, with Brent crude rising as concerns persisted over shipping disruptions and possible seizures in key oil transit routes. Gold and copper both moved lower, while natural gas edged higher. Sterling weakened against the US dollar, euro, Swiss franc and yen, although it strengthened against the Australian dollar. Bitcoin traded modestly lower against the pound as risk appetite softened.

    Market Numbers

    FTSE 100: Down (-0.69%), 10,284.74
    CAC40: Up (0.93%), 8,082.270
    DAX: Up (1.32%), 24,456.26
    NASDAQ: Down (-1.05%), 29,299.8
    S&P 500: Down (-0.65%), 7,451.8

    In the Headlines

    Compensation Deal – British Gas (LSE:CNA)
    British Gas has agreed a £20 million payout and compensation package following failures linked to the handling of prepayment meters. The settlement increases scrutiny on energy suppliers and could renew pressure on the sector over consumer protections and regulatory oversight.

    Heathrow Expansion – Heathrow Airport Holdings
    The UK regulator has indicated that Heathrow expansion could potentially be delivered by a rival infrastructure company rather than the airport itself. The development raises questions around competition, financing and the long-term structure of major UK transport projects.

    Currencies (vs GBP)

    USD: Down (-0.28%), $1.3365
    CHF: Down (-0.09%), Fr.1.04938
    EUR: Down (-0.03%), €1.1480
    JPY: Down (-0.24%), ¥211.751
    AUD: Up (0.49%), $1.864550
    Bitcoin (BTC/GBP): Down (-0.07%), £60,499.7

    Commodities

    Copper: Down (-3.93%), 6.374
    Gold: Down (-2.08%), 4,568.74
    Brent Crude: Up (0.77%), 104.985
    Natural Gas: Up (0.26%), 3.0945

  • Global Markets Turn Defensive as Tech Stocks Sink and Oil Prices Jump: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Global Markets Turn Defensive as Tech Stocks Sink and Oil Prices Jump: Dow Jones, S&P, Nasdaq, Wall Street Futures

    Global markets moved into a defensive stance on Friday after a steep decline in South Korean equities triggered widespread weakness in technology shares, while oil prices rallied amid escalating concerns over the Strait of Hormuz and tensions involving Iran.

    Strategists at Deutsche Bank said in a morning briefing that “Markets have lost momentum after President Trump said the US doesn’t need the Strait of Hormuz open ‘at all’.”

    Bond yields rose worldwide as inflation worries resurfaced and demand for recent U.S. Treasury auctions disappointed investors. Markets also continued digesting the outcome of the Beijing summit between Donald Trump and Xi Jinping.

    Attention later in the session is expected to turn toward U.S. industrial production data and the latest Empire State manufacturing survey.

    Semiconductor Shares Lead Market Declines

    Asian markets posted sharp losses led by South Korea, where the KOSPI tumbled 6.1% after briefly trading above 8,000 earlier in the day. Investors used the move to lock in gains on semiconductor stocks following their powerful rally in recent months.

    Samsung Electronics slid 8.6% and SK Hynix dropped 7.7%, while U.S.-listed Micron Technology (NASDAQ:MU) declined 2.2% in premarket activity.

    Chinese mainland shares performed somewhat better than regional peers despite broader weakness across Asia.

    Stocks Retreat Across the Globe

    U.S. futures followed Asian markets lower, with contracts tied to the S&P 500 down 0.8% and Nasdaq-100 futures falling 1.1%.

    European equities also came under pressure, with the DAX losing 1.2%, while both the FTSE 100 and CAC 40 declined about 1%.

    Investors appeared increasingly cautious after weeks of strong equity gains, while geopolitical uncertainty and higher borrowing costs continued to pressure valuations. Political tensions in Britain also drew attention as Keir Starmer faced renewed scrutiny following a parliamentary vacancy that could open the way for Andy Burnham to enter Parliament.

    Oil Prices Surge Amid Hormuz Concerns

    Oil markets extended their rally on Friday, with Brent crude futures rising 2.9% to $108.75 and U.S. crude gaining 3.2% to $104.42. The market remained on course for strong weekly gains as traders monitored developments around the Strait of Hormuz and the stalled diplomatic situation involving Iran.

    Trump’s latest remarks that he was “losing patience” with Iran added to fears that energy exports through the Gulf could face prolonged disruption.

    “Notwithstanding the current prognosis of horrifically low oil inventories, it appears that the focus is progressively shifting towards demand destruction, hence the reluctance to revisit the March or April summits. Of course, such a jump cannot be ruled out in the event of an escalation,” said Tamas Varga from PVM Oil Associates.

    Trump and Xi Strike a Softer Tone

    Trump left Beijing aboard Air Force One after lengthy discussions with Xi on Thursday. Although the summit failed to produce major policy breakthroughs, investors welcomed the more conciliatory tone between the two sides.

    “We didn’t think any of the headlines from Trump’s trip were narrative-shifting at all,” wrote Adam Crisafulli.

    Trump reiterated that both Washington and Beijing wanted the Iran conflict resolved and stressed that Tehran should not obtain nuclear weapons. He also referred to “fantastic trade deals,” though no further details were announced. Chinese officials said the summit resulted in “a series of new common understandings.”

    Markets were additionally encouraged by signs that trade tensions between the two powers could continue easing. Trump said bilateral ties would be “better than ever,” while Chinese media reported Xi telling U.S. business leaders that China’s “doors to the outside world will open wider and wider.”

    Bond Markets Sell Off

    Government bonds weakened globally, driving yields higher as traders reassessed inflation expectations and central bank policy outlooks.

    According to Deutsche Bank strategists, “the U.S. rates mood also wasn’t helped by lukewarm demand for the latest T-bill auctions as the Treasury increased auction sizes for the past couple of weeks.”

    The U.S. two-year Treasury yield moved above 4.05%, while the 10-year Treasury yield neared 4.52%. In Japan, the 20-year government bond yield reached its highest point since 1996 after stronger producer price data reinforced expectations for further tightening by the Bank of Japan. European bond futures also declined.

  • European Markets Decline Amid UK Political Uncertainty and Iran Concerns: DAX, CAC, FTSE100

    European Markets Decline Amid UK Political Uncertainty and Iran Concerns: DAX, CAC, FTSE100

    European equities traded lower on Friday as investors reacted to mounting political uncertainty in the United Kingdom and persistent tensions surrounding the Iran situation.

    The pan-European STOXX Europe 600 slipped 0.76%, while Germany’s DAX fell 0.86%. France’s CAC 40 lost 0.79%, and the UK’s FTSE 100 declined 0.70% as of 07:08 GMT.

    Starmer Faces Renewed Pressure Inside Labour

    Keir Starmer is facing renewed questions over his leadership after a parliamentary seat became vacant, potentially opening the door for Andy Burnham to return to Westminster.

    The vacancy followed the resignation of a Labour MP, creating the possibility of a by-election that Burnham could contest. However, analysts noted that Reform UK could pose a significant electoral challenge if a vote takes place.

    Trump Ends Beijing Visit With Positive Signals

    Donald Trump departed Beijing on Friday, bringing his two-day state visit to China to a close with a ceremonial farewell.

    Trump described the trip as “incredible,” highlighting “fantastic trade deals” and progress in discussions concerning Iran. Both Washington and Beijing agreed that the Strait of Hormuz should remain open.

    China’s foreign ministry stated that the two leaders had “reached a series of new common understandings” and endorsed a “new vision” for a stable and constructive relationship between China and the United States. Trump also said Xi Jinping is expected to travel to the United States around September 24.

    Corporate Highlights

    Volkswagen (TG:VOW3) labour representatives reiterated that there would be “no plant closures” in Germany, while signalling openness to defence-related projects and partnerships with Chinese groups as part of efforts to tackle excess production capacity, according to Reuters.

    Stellantis (BIT:STLAM) and Dongfeng Motor Group agreed to jointly manufacture Jeep and Peugeot vehicles in China starting in 2027, with total planned investment exceeding $1.2 billion.

    Unipol Assicurazioni (BIT:UNI) reported a 15.4% increase in first-quarter net profit to €329 million, supported by strength in its core insurance operations.

    Gold Weakens While Oil Advances

    Gold prices declined for a fourth consecutive session as a stronger U.S. dollar and reduced expectations for Federal Reserve interest rate cuts weighed on sentiment. Bullion has fallen roughly 2% over the week.

    Oil prices moved higher after Trump warned he would not be “much more patient” with Iran. Brent crude has climbed nearly 6% this week.