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Hegseth: US forces are ready to resume combat if Iran does not agree on a deal
?U.S. Defense Secretary Pete Hegseth said at a Pentagon press briefing that forces in the Middle East were 'postured' to re-start combat operations if Iran refused to agree to a peaceful deal. He said, "You Iran can choose a prosperous, golden future. We hope you will do this for the people of Iran." "But if Iran chooses badly, they will face a blockade, and bombs being dropped on their infrastructure, power, and energy." U.S. forces have imposed a blockade against all ships attempting to enter or exit Iran as part of a campaign to press Tehran into a deal. "We will actively pursue any Iranian flagged ship or any vessel that is attempting to provide material?support?to Iran," stated General Dan Caine. He is the Chairman of the Joint Chiefs of Staff. Ships that try to breach the blockade will be intercepted, and they'll be warned "if you don't comply with this blockade we will use force". He told the briefing that enforcement would take place in 'Iran's territorial waters and international waters.
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Gold prices rise as Middle East optimism eases inflation fears
Gold prices rose on Thursday, as a growing 'optimism' about the end of 'conflicts? in the Middle East eased inflation concerns and improved prospects for lowering interest rates. Gold prices rose 0.6% at $4,819.66 an ounce as of 1207 GMT after reaching a month-high in the previous session. U.S. Gold Futures for June Delivery gained 0.4%, to $4841.70. This need for liquidity has largely run its course. Shah said that he expects the gold price to remain well supported, as long as there are concerns about central bank independence and devaluation risk. On Thursday, optimism grew that the Middle East war may be close to an end. A key Pakistani facilitator in Tehran and Donald Trump's administration both expressed hope for a deal which would open the Strait of Hormuz. Crude oil prices rose by more than 1% Thursday but remain well below $100 per barrel. "Gold continues to be supported amid renewed optimism about de-escalation. Oil prices are falling, which is helping to ease inflation fears that were weighing on the prices in earlier conflict. Analysts at ING said that the move reflects a broader change in market focus. In Asian trading, global equities soared past their previous all-time peaks as optimism grew around a Middle East?peace?deal. Gold prices fell to $4,097.99 per ounce as a result of high inflation fears due to the soaring price of energy on March 23, as expectations grew that the U.S. Federal Reserve would adopt a more hawkish stance on interest rates, which would weigh on demand for the non-yielding material. Investors now expect at least one U.S. rate cut by 2026, up from just 32% the day before, according to CME's FedWatch Tool. Silver rose 0.7% per ounce to $79.59, platinum increased 1.5% to 2,141.45, and palladium increased 0.8% to $1,586.05. (Reporting and editing by Tasimzahid and Jonathan Ananda; Bengaluru, Ishaan Verma and Swati verma.)
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Hungary's carbon tax violates EU rules, top court says
The European Union’s top court ruled on Thursday that Hungary’s tax on CO2 emissions allowances, which will be introduced in 2023 is illegal under EU law because it removes operators’?incentives to invest? in reducing emissions. The tax was imposed by Hungary's departing government, headed by Viktor Orban, whose party lost the Sunday parliamentary elections. The tax is 36 euros (42 dollars) per ton annual emissions produced by the company. The European Court of Justice referred the case to the Veszprem 'High Court of Hungary - who had originally referred it to ECJ. The ECJ ruled that "the Hungarian tax on carbon dioxide?emission allowances seems to be in violation of EU law. It is up to the national court to confirm this." The ECJ, siding with the Hungarian fertilizer maker Nitrogenmuvek said that Budapest's scheme is against the EU's 2003 emission trading directive which is intended to reduce greenhouse gas 'emissions' across the EU. The report warned that taxing free emission permits would strip them of "much" of their value, and take away the incentives meant to encourage companies to reduce their emissions. Orban's government disregarded ECJ rulings in the?past on other issues and the Hungarian Constitutional Court?rejected a complaint against the decree 2024. The TISZA Party of Peter Magyar has not yet commented. He has promised far-reaching reforms and hopes to have his cabinet sworn in before mid-May. $1 = 0.8488 Euros (Reporting and Editing by PhilippaFletcher; Anita Komuves, GianlucaLoNostro)
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MORNING BID AMERICAS-Six-week roundtrip
What's important in U.S. markets and the global market today by Mike Dolan, Editor at Large, Finance and Markets. After six weeks of war, stocks around the world are back to record levels. New U.S. and Iran?peace negotiations could be in the works as Trump's administration raises hopes of a deal, while a Pakistani mediator arrives at Tehran. Investors feel that they can now switch back to the?market fundamentals. Investors were largely impressed by the first-quarter results of U.S. big banks earlier this week. Now it's time for tech, as Taiwan's chip maker TSMC has released another impressive beat. Below, I'll go into more detail. Check out my most recent column about why geopolitics is getting more complicated and how that's affecting stock rebound rates. Listen to the Morning Bid podcast where I talk about China's GDP and other topics. Subscribe to the Morning Bid daily podcast and hear journalists discussing the latest news in finance and markets seven days a week. Don't forget April 23, when I will be hosting a webinar with my ROI colleague Jamie McGeever on how to rethink "safe-haven" assets in uncertain times. Register here. SIX-WEEK RUNDTRIP Global stock prices are rising as investors focus on the impact of the Iran War on the tech sector, and the global economy in general. MSCI's "all-country" index reached a new record on Thursday. The Nikkei also hit a record, closing with a 2.5% gain. South Korea's KOSPI rose by over 2%. The new highs of the major U.S. indices were aided by strong earnings reports from Morgan Stanley and Bank of America on Wednesday. Over 80% have exceeded analysts' expectations. The possibility of negotiations between Israel and Lebanon was another cause for optimism. President Trump said that the leaders from both countries will speak on Thursday. According to a Tehran-briefed source, Iran is also said to be considering allowing ships to sail through the Omani shore of the Strait of Hormuz in the context of a proposal to the U.S. The oil prices are once again following the more positive reports and remain below the crucial $100 per barrel level. Brent crude and WTI crude both rose over 1% to around $96/bbl on Thursday. The dollar, on the other hand, continued to trade near its six-week lows and extended losses against major currencies for an eighth consecutive session. The dollar has now lost most of the gains it made as a safe haven since the Iran War began. China's first-quarter growth was 5.0%, exceeding economists' expectations of 4.8%. This is despite a slowdown of retail sales and industrial output in March. In the United States, President Trump has renewed his attacks against outgoing Fed chair Jerome Powell. He once again threatened to fire him, if he didn't leave his Fed board seat after his term ends next month. Next week, Congressional hearings will begin for Fed Chair nominee Kevin Warsh. Chart of the Day China's economy picked-up speed in early 2026. It was riding an export surge, before the Iran War sent energy prices soaring. This put global demand at risk - which is vital for Beijing's ambitions to grow. China's 5.0% growth rate in the first quarter was higher than expected and is above the 4.5%-5.0% target for the full year. This shows China has a high level of resilience, which sets it apart from other countries in Asia. Watch today's events * U.S. weekly jobless claims (8.30 a.m. ET), March industrial output (9.15 a.m. ET) * U.S. corporate ?earnings: BNY, Charles Schwab, PepsiCo Want to receive Morning Bid every morning in your email? Subscribe to the newsletter by clicking here. Follow us on LinkedIn, X and ROI. The opinions expressed by the author are their own. These opinions do not represent the views of News. News is committed to the Trust Principles and to integrity, independence and freedom from bias.
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Gold prices rise as Middle East optimism eases inflation fears
Gold prices rose on Thursday, as a growing 'optimism' about the possible resolution of?conflicts? in the Middle East eased inflation concerns and improved prospects for lowering interest rates. Gold spot rose by 0.5%, to $4,815.15 an ounce, at 0926 GMT. It had previously reached a month-high in the previous session. U.S. Gold Futures for June Delivery gained 0.3%, to $4.836.50. This need for liquidity has largely run its course. Shah said that he expected the gold price to remain well supported, as long as there are still concerns about central bank independence. On Thursday, optimism grew that the Middle East war may be close to an end. A key Pakistani mediator in Tehran and the Trump administration hoped for a deal which would open up the Strait of Hormuz. Crude oil prices rose by more than 1% Thursday but remain well below $100 per barrel. "Gold continues to be supported amid renewed optimism about de-escalation. Oil prices are falling, which is helping to ease inflation concerns that were affecting prices in the early stages of the conflict. Analysts at ING said that the move reflects a broader change in market focus. In Asian trading, global equities soared past their previous all-time records as optimism about a possible deal to end the Iran War grew. Gold prices fell as low as $4.097.99 per ounce on 23 March as inflation fears due to high energy prices fueled expectations of a more hawkish Federal Reserve approach to interest rates. This weighed on demand for the non-yielding material. CME's FedWatch Tool shows that investors see an increased chance of at least one U.S. rate cut in 2026, from just 32% the day before. Silver spot rose 1.4%, to $80.12 an ounce. Platinum gained 1%, to $2,130.25. Palladium increased 0.9%, to $1,587.25. (Reporting by Ishaan Arora and Swati Verma in Bengaluru; Editing by Tasim Zahid)
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Kremlin: Top officials offer Putin ideas to revive economy after recession
The Kremlin announced on Thursday that President Vladimir Putin had scolded the top Russian economic officials for a decline in the economy during the first two month of the year. Since 2023 the Russian war economy has been outperforming the G7 average, even though it slowed last year. Putin announced on Wednesday that Russia's economy contracted between January and February. Putin said the economic trajectory was below expectations at the beginning of a Kremlin meeting with Russia's top economic officials on Wednesday. He asked the officials to provide him with detailed options for how to rectify the situation. Dmitry Peskov, Kremlin spokesperson, said that the closed part of Wednesday's meetings lasted several hours behind closed door and there was a?free exchange of ideas. Peskov said to reporters that "the members of?the?government's economic block have many proposals for activating the economy and giving?it more momentum." He declined to give any details about the plans for the economy which has benefited from the soaring oil and gas prices triggered by U.S. and Israeli attacks on Iran. Reporting by Dmitry Antonov; Writing by Guy Faulconbridge, Editing by Andrew Osborn
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EU approves German, Bulgarian and Slovenian relief plans on industrial power bills
The European Commission approved on Thursday?state-aid schemes in Germany, Bulgaria and Slovenia to provide a?temporary?price?relief? for energy-intensive businesses as manufacturers are being hit by an increase in energy costs. In a press release, the commission said that the budgets for the schemes were 3.8 billion euro ($4.5 billion) in Germany, 334 millions?in Bulgaria, and 90 million in Slovenia. The EU stated that the move, which came after the Iran War inflated energy prices, was primarily linked to "efforts to reduce greenhouse gas emissions" and "state support would be contingent upon companies spending a substantial share of the aid toward this goal." This clearance was possible because of the looser competition rules that were announced in June 2012, whereby businesses would be able to more easily obtain national state assistance for reducing carbon emissions. The rules announced at the time included heavy industries in the category of those eligible to receive temporary price reductions from member states. Germany announced a number of temporary energy cost relief measures aimed at motorists and the haulage sector after the 'Iran war' caused major disruption to global energy supplies.
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Report: US ESG shareholder resolutions plummet in the face of Republican pressure
A new study shows that shareholders have submitted 184 proposals to promote environmental, social, and governance themes in U.S. firms so far this proxy season. This is about half of what they did last year, as Republicans work 'to shift corporate control from investors to managers. According to Michael Passoff, CEO and co-author of the report, a proxy voting service for sustainable investors, 355 proposals were filed at a similar point last year during spring proxy season. These proposals encourage companies to report more about their carbon emissions and workforce diversity. Although most proposals are not binding, they may lead to?significant corporate changes. Passoff said that the decrease in filings was partly due to a willingness by?company executives to negotiate behind closed doors, to avoid public controversy. He also cited Washington's new rules that make it more difficult for activists to win corporate battles. The regulators appointed by U.S. president Donald Trump limited activists' access to a securities database, and gave companies greater freedom to skip voting. Passoff, in a phone interview, said that shareholders felt they wouldn't get a fair shake in filing resolutions. They thought it would be better to focus on the company dialogues instead. He said that with major shareholder meetings?underway this year, hot 'topics' include rules for building data centers for artificial intelligence, and pressing companies to disclose more lobbying. In recent years, support for environmental and social measures has declined. While big investors claim that companies have made major reforms, critics who are focused on ESG say executives have abandoned their diversity and climate goals. Amy Galland, of Empower Venture Partners, and Ross Kerber (reporting) will co-author the report. (Reporting and editing by David Gaffen; Ross Kerber is the reporter)
Stocks return to record highs on Middle East peace hopes
The world stock market rose for the 10th consecutive day, hitting new records on Thursday. This was after a six-week turnaround from the massive selloffs caused by Israel and the United States attacking?Iran. The optimism about a possible deal to end the conflict was boosted by both Washington and Tehran's comments. With oil at $95 per barrel, MSCI’s main world stock index rose 0.25%.
The U.S. S&P500 rose above 7,000 points Wednesday after global bank earnings reassured investors. This capped an 11 percent increase for MSCI world.
Manpreet Gil, Standard Chartered Chief Investment Officer, Africa, Middle East, and Europe, said that the U.S. Tech stocks and the easing oil prices were the main drivers of the rebound.
The European stock market is not back at its pre-war levels, but it has also gained 0.2%. As traders lowered their bets on higher interest rates, the region's government loan costs also fell. Bonds are still well below pre-conflict highs.
Gill said that if the spike in energy costs fades and the impact of inflation is a temporary one, the leading central banks will likely try to "look past" this move.
He said that everyone would be "quite cautious" about any possible second-round effects.
OIL ON BOIL Brent crude was hovering just above $95 per barrel on the oil market after a Tehran-briefed source said that Iran could allow ships to freely sail through the Omani Side of the Strait of Hormuz, without any risk of attack, as part of its proposals in "negotiations" with the United States.
After eight days of declining values, the U.S. Dollar Index, which measures the strength of the greenback against a basket six currencies, gained 0.1%. In addition to war-watching, U.S. president Donald Trump reignited the spat with Fed chair Jerome Powell by threatening him to be fired from his seat as a member of the Board of Governors of the U.S. Central Bank if he does not vacate his seat when his term ends on May 15th.
The dollar's movement also caused the euro to lose traction. It had been within touching distance from its highest level, $1.182325, since the beginning of the war.
The yen strengthened to 158.71 yen after Japan's Finance Minister said that Tokyo and the U.S. agreed?to increase communication regarding exchange rates, following her Wednesday meeting with U.S. Treasury Sec. Scott Bessent.
Khoon Goh is the Asia Research Head at ANZ. He said that markets are looking beyond the conflict to pricing and a possible settlement.
As markets price out the war premium, the dollar could come under more pressure and resume the downward trend that has been established for the past year.
China's yuan traded at a near three-year high of 6.8152 to the dollar on offshore markets, and Chinese stocks rose more than 1% following data that exceeded expectations showing the economy grew by 5.0% in the 1st quarter. Strong exports were offset by still-sluggish consumption.
AUSSIE DOLLAR AND GOLD GAIN
MSCI's broadest measure of Asia-Pacific shares rose by 1.2%, while Japan's Nikkei225 surged 2.4% for a new record. Taiwan and Korea were not far behind, as Taiwan Semiconductor -Manufacturing Company (TSMC), a key player in the AI sector, reported a 58% increase in quarterly profits.
Goldman Sachs analysts wrote in a report that they "remain constructive" about emerging market stocks, as the "underlying profit growth will likely be strong".
Gold fell 0.8%, to $4,825.79, while bitcoin rose?0.3%, at $75,084.56, and ether dropped 0.2%, at $2,359.89. The Aussie Dollar also rose by 0.3% to a four-year-high of $0.71890. Data showed that Australian employment increased broadly in line with the expectations in March, as firms hired more workers full-time. However, the unemployment rate remained at 4.3%.
Capital Economics analysts wrote in a report that the latest data would confirm the RBA's assessment, which is that the upside risks of inflation are greater than the downside risks of the labour market. (Reporting and editing by Hugh Lawson; Reporting by Marc Jones)
(source: Reuters)