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Australian shares fall as Middle East tensions reignite curb risk appetite
Australian shares fell on Friday, wiping?gains made in the previous two?sessions. The market was flooded with broad-based sales after the latest exchange of fire between Iran and the United States rattled the sentiment. The S&P/ASX 200 ended the week 1.5% lower, at 8,744.40. The benchmark index rose 0.2% in the past week despite the drop, but it still remained below the record highs set early in March. Investors concluded a week that saw the Reserve Bank of Australia raise its interest rates a third time in this year. The U.S. escalated hostilities with Iran, and the mood deteriorated over night. David Tuckwell is the chief investment officer of?ETF shares. He said that new clashes have dashed hopes for a diplomatic solution and caused investors to flee to safety. Mining stocks fell ?1% on declining metal prices. BHP, Rio Tinto and Fortescue, global mining giants, all fell by 1%, 0.8% and 0.7%, respectively. Banks fell 2.3%. Westpac, the largest lender, was the worst performer on the sub index after trading ex dividend, with the other "Big Four' banks ending 1.5% to 2.9% down. Tuckwell said that a weakening macroeconomic outlook combined with an increasingly hawkish central banking system, which has already raised rates three times this year, put pressure on banks. Macquarie, the top Australian investment bank, reversed its course and ended 1.1% lower after hitting a record high in the previous session. Its commodities arm also posted its highest annual profit in 3 years amid Middle East volatility. Energy stocks fell 1.6%. Woodside Energy, Santos and other oil?and -gas firms both fell 1.4%. Tabcorp, the betting firm, fell 14.2%. This was a continuation of losses that had already been incurred after it plunged more than 23 percent in the previous session. S&P/NZX 50 index fell 0.7% in New Zealand to 13,175.13, but the benchmark gained 1% over the past week.
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Acerinox Steels tops expectations for earnings in Q2
Acerinox, a Spanish company, reported earnings for the first quarter of its fiscal year that were above market expectations on Friday. This was due to?improved? orders in Europe and America. The stainless steel manufacturer reported core earnings of 140 million euros (119 million euros) for the third quarter. LSEG polled analysts who expected earnings to average?113.4 millions euros. The company estimated the direct impact of the Middle East war on its quarterly core profits at 2 million euros. It added that the 'rising costs of raw materials and energy' weighed heavily on margin recovery in Europe. Acerinox? stated that the increase in orders and decrease in imports would lead to higher core earnings in the second quarter. Acerinox's U.S. mills, which account for the majority of its earnings have benefited from protectionist measures taken by President Donald Trump, such as tariffs of 50% on steel imports, that protect it from competition. Acerinox is set to benefit from increased protection in its two main markets, thanks to the European Union's carbon-?levy on imports of high-emission products and a?coming trade policy that will halve import quotas.
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Profits for Evonik Germany are up as the Iran conflict leads to stockpiling by customers
Evonik, a German chemicals company, reported a first-quarter profit that was above expectations. This was due to short-term stockpiling by customers in response supply disruptions caused by the conflict in the Middle East. Essen-based Evonik said that it had seen a surge in sales due to supply chain?uncertainty related to the Iran War, echoing comments made by Dutch peers dsm and firmenich during first quarter. The group stated that "this is not due to an actual increase in demand, but rather due to the purchase of inventory as customers try to protect themselves against supply chain disruptions and rising prices." Evonik reported that orders for high-performance polymers, lubricant add-ins and cross-linkers which improve material durability, have increased. Jefferies analysts said they expect the share price to rise after the group shows "strong results and good momentum". Evonik expects its second-quarter core profits to increase 8% over the previous year to at least 647 million euros, making it the strongest fiscal quarter. The report also noted that inflation is on the rise, and a drop in demand in the second half will lead to lower volumes. Evonik's adjusted first-quarter earnings before interest taxes, depreciation and amortization (EBITDA), fell 15% to 475?euros. This was better than the analysts' expectations of 448?euros from Vara research. Since years, the?German chemical industry, which is the third-largest in Germany, has struggled with a subdued market, high?energy prices, supply chain problems, and a slow economy. Evonik stated that it was forced to increase prices due to the rapid rise in raw material and energy costs. Evonik will cut 1,000 jobs this year to manage costs as part of a 'ongoing restructuring program. In February, the group changed its dividend policy to one euro per share - its lowest level since 2014.
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Russia and Ukraine accuse one another of violating the ceasefire
Russia and Ukraine both accused each other of a violation of a ceasefire that was announced by Moscow to cover the celebrations marking the Soviet Union's triumph over Nazi Germany. Sergei Sobyanin, the Moscow mayor, said that the city had been targeted. Officials also said that the Urals region of Perm was attacked by drones. Russia has announced a ceasefire from May 8 to 10, when they celebrate the Soviet Union's triumph over Nazi Germany. They will also hold a military parade in Moscow. Russia warned that any attempt to disrupt the celebrations by Ukraine would result in a massive'missile strike' on Kyiv. Moscow also told foreign diplomats to evacuate the Ukrainian capital to avoid a possible retaliation. Volodymyr Zelenskiy, the Ukrainian president, said that Russian forces continued to attack Ukrainian positions throughout the night of Friday. He said this showed Russia had not even made a token effort to cease fire at the front. He stated that by 7 a.m. local (0400 GMT), there had been more than 140 Russian strikes against Kyiv frontline positions. He said that Russian forces launched 850 drone strikes and carried out 10 assaults in the night. Ukraine will respond in kind to the same extent as it did yesterday. Zelenskiy stated that "we will defend both our positions and the lives of people." In response to the 'Moscow announcement', Zelenskiy proposed this week an open-ended truce starting on?6 May, which he claimed Russia had violated. The proposals of the other side were not accepted by either party. The Soviet Union suffered 27?million deaths in World War Two, including millions in Ukraine. But it pushed Nazi forces to Berlin where Adolf Hitler took his own life and the red Soviet Victory Banner, which was raised above the Reichstag, in May 1945. Reporting by Guy Faulconbridge; editing by Lincoln Feast and Guy Faulconbridge.
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MORNING BID EUROPE - Markets hold on to ceasefire as it is tested
Tom Westbrook gives us a look at what the future holds for European and global markets. On Friday, oil prices rose and European futures wiggled as the U.S. and Iran exchanged fire in the Middle East. Investors chose to concentrate on the hope of a lasting peace agreement. In Asia, AI stocks dominated weekly gains. Sterling remained steady at $1.36 as traders watched the early results of Britain's local elections. Keir Starmer and his Labour Party suffered heavy losses. The UAE was again attacked by the U.S. forces and Iranian forces in the?Gulf. U.S. president Donald Trump told reporters that the 'ceasefire' was still in place and tried to play down the exchange by leaving oil at $101 per barrel. Toyota announced a 20% drop in profits for the current fiscal year, as the Iran War and cost and supply uncertainty weighs on its earnings. Its shares dropped about 1.5%. The majority of Asian markets logged modest losses on Friday, but are set to make big gains for the week. South Korea is leading this charge, with runaway rallies by chipmakers Samsung Electronics & SK Hynix putting?the KOSPI in line for a 13% rise for the week, its highest since 2008. German trade data is due Friday, along with the?U.S. Jobs figures are expected to be stable at 4,3%, which will allow the Federal Reserve to keep interest rates where they are. The following are key developments that may influence the markets on Friday. U.S.-Iran Negotiations - German trade data Payrolls of non-farm workers in the U.S.
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French and Benelux stocks: Factors to watch on May 8
Here are some company news stories and updates from France and Benelux that could impact the markets in these regions or specific stocks. Airbus: Airbus, the European planemaker, delivered 67 aircraft in April. This brings its 2026 total down to 181, or a 5.7% decrease compared to 2025. The company is stepping up delivery after engine shortages caused a slow start. Eurocommercial Property: Eurocommercial Properties, a property investment company that owns shopping centres and reports a first-quarter?gross rent income of 70.94 millions euros (60.46 million dollars), has confirmed its guidance for direct investment results 2026. Groep Brussel Lambert: The Belgian investment holding firm Groep Bruxelles?Lambert announced its net asset value as of the end March to be 13.30 billion euro. The company's net result for the first quarter was 65 millions euros and its cash balance at 1.22 billion euros. KBC Groep: Belgian bank KBC Groep has decided to pay an annual gross dividend of 5,10 euros per share. Nextensa: Nextensa and Promobe, a Belgian real-estate company, sold B&B Hotels in Luxembourg to Aberdeen Investments on behalf of Irish Life Investment Managers for 37.4 millions?euros. Voltalia: Voltalia, a French renewable energy firm, has installed three solar power plants with a combined capacity of 26.9MW in the south of France. The plants produce 34.3GWh annually. It signed a corporate power purchase contract with CERN for 15 years. Pan-European market data: European ?Equities speed guide................... FTSE Eurotop 300 index.............................. DJ STOXX ?index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurotop 300 sectors..................... Top 25 European pct ?gainers....................... Top 25 European pct losers........................ Main ?stock markets: Dow Jones............... Wall Street report ..... Nikkei ?225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt items......... CAC-40................. Paris items............ World Indices..................................... survey of world bourse outlook......... European Asset Allocation........................ News at a glance: Top News............. Equities.............. Main oil report........... Main currency report..... ($1 = 0.8523 euros)
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Evonik, a German company, reports a profit increase as the Iran conflict leads to stockpiling by customers
Evonik, a German chemicals company, reported a first-quarter profit that was above expectations on Friday. This was largely due to short-term stockpiling by customers in response to disruptions in the supply chain caused by conflict?in the Middle East. The group based in Essen said that it had'recorded' a surge in sales due to uncertainty about the supply chain linked to Iran War, echoing comments made by Dutch peers dsm firmenich during first quarter. "(The free flow of goods) had already been severely restricted by protectionism." "A war in the Middle East has added to the problem by blocking entire sea routes," Christian Kullmann, CEO of the company, said in a press release. He added, "This is a risk that's not to be taken lightly." Evonik expects the second quarter core profit to increase 8% over the previous year to at least 647 million euros. Evonik beat analysts' expectations of 448 millions euros in the first quarter. Since years, the German chemical industry, which is the third-largest in Germany, has struggled with low demand, high energy costs and supply chain problems, as well as a slow economy. Chemicals companies are the most affected by the actions taken in the first quarter of the financial year. Just over half of the 29 actions in the sector were a result of financial pressures, guidance reductions or price increases in response to the rising cost for fuel and petrochemicals. Evonik will?cut 1,000 jobs in this year as part of a?restructuring program. In February, the?group also lowered its dividend policy to 1 euro per share - its lowest level since 2014.
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Unilever investors want assurances on ESG in McCormick deal
Investors plan to push the combined entity, which will be formed by the merger of Unilever's food unit with McCormick in the United States, to adopt the same standards as the UK consumer goods giant. The $65 billion deal announced in March will merge the Unilever division and McCormick's to create a giant food company with iconic brands such as Hellmann's mayonnaise, Cholula, and Cholula Hot Sauce. McCormick's will oversee a business that is nearly twice as large and has a global supply chain with more complexity. This will present new challenges in agriculture, commodities, and small-scale farms. Investors are interested in hearing the plans of the new company regarding sourcing, given Unilever's history as a leader on sustainability. Vemund Olesen, a senior analyst with Norwegian asset manager Storebrand and a shareholder of McCormick according to LSEG, said: "We'll be looking for assurances that the combined company will uphold and improve upon the best practices in regard to deforestation free sourcing of commodities." He added that these practices included not sourcing from land that has been deforested or converted along the supply chain. They also included a system of public complaints and full traceability to plantations. According to LSEG, a spokesperson from Frankfurt-based Union Investment said that it would be transparent "about its integration of sustainable practices going forward". U.S. ESG NORMS ARE LESS STRICT McCormick, based in Hunt Valley, Maryland, is not required to disclose the same detailed information about sustainability that Unilever, based in UK, must provide for Europe. The EU requires that companies with significant European operations comply with sustainability reporting regulations. This compliance could take several years. During this transitional period, disclosure standards will be largely determined by company commitments. Cailin Dendas is the senior coordinator of environmental health programs at shareholder group As You Sow. We saw this when Kellanova split from Kellogg and dropped its pesticide commitments among other sustainability goals in 2023. Mars, the company that acquired Kellanova in 2012, has not responded to a comment request. Unilever is the largest investor with nearly 10% of the company and four directors on the board. Smaller shareholders, however, will be limited in their ability to influence the board. A spokesperson for Unilever responded to the question of whether it would use its stake in McCormick as leverage to force the spice maker to live up to Unilever standards. "We are working with McCormick before the completion of the deal to support the transition and sustainability of our Foods related programmes and commitments." Hannah Schalk is an analyst with ESG rating firm Sustainalytics. She classifies McCormick in the sustainability category as "medium risk". She said that the company's sustainability report does not contain an explicit commitment to no deforestation across the company, and it provides less information on auditing, certification and traceability. McCormick's sustainability challenges are also increasing as its supply chain grows, she said. McCormick acknowledged that meeting indirect emissions and sourcing goals depends, in part, on improving data and engagement among its suppliers. McCormick wrote in written comments that "while we can't comment on future goals at this time, our comprehensive strategic update for our sustainability program is already underway. We will share more details as the process progresses."
Oil prices rise on Gulf clashes, as AI fuels weekly stock increase
As the U.S. and Iran traded?fires in the Middle East many Asian markets were still on track for stellar gains this week as AI 'demand' swept over chipmakers. Benchmark Brent crude futures rose about 1% in Asia to $101 per barrel, while European stock?futures fell 0.8%. FTSE futures dropped 0.7% while S&P futures rose 0.3%.
Sterling remained steady at $1.3575, but traders were wary of Labour Party losses, which could put pressure on Prime Minister Keir starmer. The United States and Iran clashed over the Gulf, and the UAE was again attacked in a test for a month-long truce. However, the warring parties played down the situation in order to keep investors hopeful.
Kerry Craig, J.P. Morgan Asset Management's global market strategist said: "The focus is still on the strength and volume of earnings from the U.S."
He said that efforts by both sides to reach a temporary agreement to allow traffic to pass through the Strait of Hormuz, while they discussed a more comprehensive peace settlement, had also been encouraging to markets.
The stock markets in Asia have slid from record highs, despite the fact that they had been surging thanks to the strong revenue and spending plans of the U.S. AI Hyperscalers. This means rivers gold for the chipmakers in the region. MSCI's broadest Asian share index outside Japan dropped 0.9%. South Korea's KOSPI was down only 0.1%, but is set to have a 'weekly gain' of more than 13% – the largest since 2008 – on the back of a surge of Samsung and SK Hynix.
Taiwan's benchmark index is up 7% and Japan's Nikkei has risen 5.2% this week. The currency markets were largely stable, with the dollar recovering after recent lows and yen as the focus. Japan intervened on the foreign exchange markets during the early May holidays to prevent further declines in the battered yen, according to a source with knowledge of the matter.
The dollar was worth $1.1736 to the euro, $0.7221 to the Aussie and the yen at 156.8 to the yen after a surge of $70 billion on suspicion of intervention since last Thursday.
China's currency, the yuan is Asia's best performing currency since the outbreak of the war. It's on the verge of surpassing 6.8 dollars to the dollar, and it's at its highest level since 2023.
U.S. JOBS & UK ELECTIONS IN CENTER
A survey of economists indicates that investors are eagerly awaiting Friday's non-farm payrolls data in the United States. The report is expected to show a 62,000 increase in jobs in April, after a 178,000 rebound in March.
Local elections are also planned in Britain. Investors are worried that if the Labour Party's results turn out to be poor, it could put Prime Minister Keir starmer's leadership into doubt.
Analysts at ING said that "Gilts - already under scrutiny because of inflation risks - could be further pushed to look elsewhere by political uncertainty." The U.S. Trade Court ruled that Trump's latest 10% temporary global duty is unjustified by a 1970s trade law. Analysts expect an appeal to be filed quickly and that the levies will have a?small impact on U.S. trade.
Treasury yields tracked crude oil prices higher on Thursday, as traders were worried about inflation. However, they did not move significantly more on Friday. The benchmark 10-year yield was at 4.39%.
The yields on Australian 10-year bonds jumped by six basis points, to 4.99%. Bitcoin was edging towards its sixth consecutive weekly gain at $79 680. (Reporting and editing by Tom Westbrook, Kim Coghill, and Lincoln Feast.
(source: Reuters)