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Morning bid Europe-Peace advances stalls and AI rally fails
Tom Westbrook gives us a look at what the future holds for European and global markets. The markets still 'want to believe' that neither Iran nor the U.S. aims to escalate their conflict. The path to resolution is still as unclear as ever, despite a new round of hope that 'little' experienced over the weekend. The distance between the two parties is evident in the rejection of the Iranian peace proposal by U.S. president Donald Trump as "totally unacceptable". The dollar rose and oil prices increased by more than 4% during the Asia session. Iran released on Sunday a proposal to end 'the war on all sides. It included a request for compensation for damages caused by war and emphasized Iranian sovereignty over the Strait of Hormuz. The U.S. proposed that the fighting should stop before talks could begin on other, more controversial issues such as Iran's nuclear program. S&P futures slid lower after the news, while European futures remained flat. However, it was the artificial intelligence sector that drove equities. South Korean shares soared by almost 5%, reaching new'record highs. Keir starmer, the British prime minister, will start a political retaliation in a speech on Monday. He will say that rebuilding relationships with Europe will be the government's main mission as he moves against growing calls for?quit. Data from China showed that producer prices in April exceeded expectations to reach a 45-month peak, adding more pressure to manufacturers who are already struggling with weak demand at home. U.S. Treasury Sec. Scott Bessent is in Japan to discuss the yen after recent Japanese interventions. According to U.S. official previewing Trump's upcoming?two-day trip to China, Trump and Chinese president Xi Jinping will discuss Iran, Taiwan and AI as they 'weigh extending a crucial minerals deal. Cisco, a maker of networking equipment for the tech industry, and Applied Materials, a manufacturer of semiconductor equipment? are amongst those releasing results this week. Nvidia, Walmart and other heavyweights are due to report their results later this month. SoftBank's and Nippon Yusen's after-market results from Tokyo will be released on Monday, along with the U.S. home sales data. Market developments on Monday that may have a significant impact Earnings: SoftBank, Nippon Yusen, Fox Corp Economics: U.S. home sales
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New Zealand's state-owned farming supports the nature credit market
The New Zealand state-owned farm Pamu says it will convert 600 hectares (1.483 acres), of farmland, into a?native?forest in order to generate high quality nature credits. This follows a move by the government on Monday to encourage a voluntary market for nature credits. New Zealand's Emissions Trading Scheme favors pine forestry, which grows faster than native trees. Native forests grow slower and are less attractive to carbon investors. Large-scale pine plantations have sparked a debate about erosion, pest control and land-use changes. In the coming months, new native reforesting initiatives will be able to choose a path that is assessed by an independent assurer. The government also said it would recognise schemes accredited by respected international bodies. The goal is to direct funding towards projects that restore ecosystems and remove greenhouse gasses. Pamu, a 365,000-hectare farm network, signed a contract with True Nature (an independent non-profit) to explore native forest regeneration on its less productive or vulnerable lands. The restoration could generate credits under this proposed framework. Annabel Davies, Pamu's Nature Investment Officer, said: "For many years, farmers have generally?talked? about ineffective acres. Pamu believes that these are not ineffective acres... So this is about realising the value of those areas." True Nature said it would use nature credits in order to expand the work of Trees that Count. The non-profit has been funding native reforestation initiatives with high integrity, funded by philanthropy. The credits will meet the criteria of the Integrity Council for Voluntary Carbon?Market, and they will be sold to both domestic and international buyers. True Nature Chief Executive Robyn Haaugh stated that "to date, New Zealand doesn't have anyone restoring land or generating credits from New Zealand based projects." Haugh explained that the project "solves a problem for the private sector - for large companies who want to offset their emissions and meet their targets (for carbon reduction), and for landowners who wish to restore land, but do not have the capital or funding to do so." True Nature announced that it would be using a "grouped project" model in accordance with an international voluntary standard for the carbon market. This will allow sites of different sizes and types to be combined into one project. This could help landowners reduce their?technical and legal costs. The work would be focused primarily on marginal or unproductive land. This includes riparian areas and steep slopes. It will also include areas that are prone to erosion. "Our goal is to have native reforestation work with traditional farming operations. Haugh explained that native reforestation can work alongside traditional farming operations, but not necessarily replace them. Lucy Craymer, Wellington reporter; Lincoln Feast, Wellington editor.
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Iron ore prices rise for the sixth consecutive day, thanks to positive Chinese data
Iron ore futures rose for a sixth session on Monday, boosted by a number of positive data from China, the world's largest steel consumer. Lower steel exports will 'help rebalance prices and margins at steel mills. As of 0257 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 1.16% higher. It was 826 yuan (US$121.56) per metric ton. The benchmark June Iron Ore on the Singapore Exchange is now $111.8 per ton, a 1.24% increase. Customs data showed that China's exports of steel fell by 9% from April last year. China exported 9.5 million tons of steel in April, up by 4% compared to March but still down on the record pace set last year. Steel prices and steel mill margins are pushed up by lower steel exports. Imports of iron ore in April were down 0.8% compared to the previous month, as steel margins shrank. This slowed the demand for this key ingredient. Last month, the world's biggest iron ore consumer imported 103.9 million tonnes. This is down from 104.74 millions tons in March and 103.14 in 2025. According to data from Mysteel, the average daily output of hot metal, which is a measure of iron ore demand, increased by 4.6% in April. Portside inventory Data from consultancy Steelhome revealed that iron ore inventories at major Chinese?ports fell by 0.79% week-on-week, according to data released on Friday. According to Steelhome's data, the iron ore stock at China's major?ports fell by 0.79% from week to week. Coking coal and coke are also up on the 'DCE, at 1% and 1.68 % respectively. The benchmarks for steel on the Shanghai Futures Exchange have mostly risen. Rebar rose 0.61%; hot-rolled coils hardened by 0.57%; and wire rod increased by 1.12%. Stainless steel, meanwhile, fell by 0.16%.
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As US-Iran talks fail, gold falls due to inflation fears caused by oil.
Gold prices fell Monday as a lack progress in the 'U.S. - Iran peace negotiations' pushed up?oil?prices, fueling concerns that inflation could continue to keep interest rates high. As of 0223 GMT, spot gold was down 0.6%, at $4,684.32 an ounce. U.S. Gold Futures for June Delivery fell 0.8% to $4,692.70. Dollar strengthened, causing greenback-priced gold to be more expensive for holders other currencies. U.S. president Donald Trump rejected Iran's response on Sunday to a U.S. peace proposal, destroying hopes of an imminent end to this 10-week conflict which has caused extensive damage in Iran and Lebanon and paralyzed the maritime traffic?in the Strait of Hormuz and driven up the global energy prices. Tim Waterer is the chief market analyst for KCM Trade. He said: "We are essentially witnessing a dissipation of hope in an imminent?peace?deal. Gold is feeling the pinch due to the renewed rise in?crude?prices." Oil prices rose as the Strait of Hormuz was largely closed and global energy supplies were tight. Increasing crude oil prices could lead to higher inflation, which would increase the likelihood of high interest rates. Gold is often seen as a hedge to inflation. However, rising interest rates can weigh down on this 'non-yielding' asset. According to a report by the Federal Reserve released on Friday, the ongoing war with Iran has pushed oil prices and supplies to the top of financial stability concerns. Investors will be watching the U.S. Consumer Price Index for April, which is due this week, to get a better idea of how the Fed intends to orient its monetary policy. China's gold output fell by a quarter in the first three months of 2026 compared to a year ago, according to the China Gold Association. Safety inspections forced some smelters to suspend production. "In the ?near-to-medium term, the $4,400 to $4,800 range still looks ?firmly in play while we remain in this ceasefire-without-a-peace-deal stalemate," Waterer added. Silver spot rose by 0.7% to $80.88 an ounce. Platinum fell 0.6% to 2,042.71, while palladium dropped 0.4% to $1,484.99. (Reporting and editing by Rashmi aich in Bengaluru)
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China's April producer price inflation reaches 45-month high on energy price shock
China's producer price surpassed expectations to?hit 45-month high in April, while consumer inflation also increased as global energy costs remained high. This added more pressure to manufacturers who are already struggling with weak domestic demand. National Bureau of Statistics data revealed on Monday that the producer price index (PPI), a measure of prices for producers, had increased by 2.8% compared to a year ago. A poll predicted a rise of 1.6%. In March, the gauge reversed a 41 month decline streak when prices rose 0.5%. The Consumer Price Index (CPI), which measures consumer prices, rose by 1.2% compared to a year ago. This was a much higher rate than the 0.9% expected. It rose 1% in the previous month. China's policymakers repeatedly pledged to boost domestic consumption, curb excessive competition on the market and?drive up prices due to deflationary pressures that weigh heavily on profit margins. Export-led economies could face new problems if they experience inflation driven by external price fluctuations. According to Huo Lihui, a statistician at the NBS, higher factory-gate prices are due to rising prices in certain sectors, such as nonferrous metals and oil and gas. Beijing's large energy reserves and diverse supply mix cushioned the economy from disruptions of energy supplies in the Middle East. Its exports were resilient this year, due to a robust demand for AI related goods and because?firms stored up components out of fear over rising costs. China's export engine can be affected by fluctuations in global demand, as many countries are trying to contain the effects of the Middle East conflict. Global energy costs are also increasing the cost of living. China's state planner increased retail prices for gasoline and diesel after the U.S. and Israeli attacks against Iran began late?February. Major Chinese airlines also increased fuel surcharges on domestic flights. Living costs are likely to further dampen household consumption. This has been a problem for years, despite a slowdown of the economy and a slump in the property market. The Core CPI (which excludes volatile food and fuel prices) grew by 1.2% from a year ago, compared to a 1.1% rise in March. CPI rose 0.3% on a monthly basis compared to an expected dip of 0.1% and a drop of 0.7% in March. (Reporting and editing by Yukun Zhi, Liz Lee, Jacqueline Wong.)
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CSL plunges to near-decade low after Trump rejects Iran
Australian shares dropped on Monday, as risk aversion grew after U.S. President Donald Trump rejected Iran’s response to an?outline of peace?. CSL also fell to a low not seen in over a decade, with the biotech company cutting its?outlook? and announcing $5 billion worth of?impairments. As of 0031 GMT, the?S&P/ASX 200 was down 1% to 8,661.4 points. The benchmark index closed Friday 1.5% lower. Investors' appetite for risk was drained by the escalating geopolitical uncertainties, as Middle East tensions revived demand for safe haven assets. This weighed on equity markets. On Sunday, President Trump rejected Iran's response on a U.S. peace proposal, destroying hopes for an imminent end to a 10-week conflict that has caused extensive damage in Iran and?Lebanon and paralyzed the maritime traffic in Strait of Hormuz. CSL, an Australian company, fell by more than 20 percent to register its worst trading day. It also hit its lowest level since December 2016 after reducing its fiscal 2026 earning outlook and announcing $5 billion in non-cash losses over the next two year. The health sub-index lost over 9% on Monday. Financials fell 1.7% with "Big Four" banks falling between 0.6% to 2.6%. The Reserve Bank of Australia announced its third consecutive rate hike of the year last week. If current momentum continues, technology stocks will see a 1.3% drop and be 'on track' for their biggest intraday decline since April 28. Oil prices rose on fears that the failed peace plan could cause global supplies to be tighter for longer. Woodside, a sub-index heavyweight, added 0.9% and Santos gained 0.6%. The mining subindex also gained 0.8%, with the top players Rio Tinto and BHP each gaining 1,1% and 1,2%. The benchmark S&P/NZX 50 Index in New Zealand fell by 0.7% or 93.1 points to 13,082.1.
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Dollar gains, but share futures are a little erratic as Gulf talks falter
Dollar prices rose in Asia Monday as signs of deadlock between the United States, Iran and other countries led to the Strait of Hormuz being closed and oil prices rising. U.S. Stock Futures wiggled, and in Asia, gains in AI-related stocks lifted Tokyo and Seoul share markets. Donald Trump rejected Iran's response on Sunday to the U.S. proposal to hold peace talks in order to end the conflict, calling Tehran's requests "totally unacceptable." Iranian media reported that an Iranian plan sent to Washington stressed the need to end the war?on every front and lift sanctions against Tehran. It also called for reparations and a formal recognition of Iran’s control over the Strait. Bruce Kasman noted that the conflict in the Middle East has now entered its 11th week. Energy prices are up but still at levels that act as headwinds, not obstacles to expansion. Our commodities team expects to see operational stress levels beginning in June. Brent oil futures rose quickly 3.3% in early trade, to $104.67 per barrel. U.S. crude rose 3.5% to $98,82 a barrel. The dollar gained 0.2% against the Japanese yen, reaching 156.88yen, while the euro fell 0.2%, to $1.1760. Japan bets that a shift to a more hawkish stance at the Bank of Japan, and the endorsement of U.S. Treasury Sec. Scott Bessent will give the yen buying intervention an extra boost and help slow down the currency's decline. The U.S. and Europe are both major oil importers, while Japan is the net exporter. S&P futures fell 0.1% while Nasdaq's futures were down 0.2%. Shares hit record highs on the backs of positive corporate earnings and a "solid" payrolls report. Cisco, a manufacturer of networking equipment, and Applied Materials, a maker of semiconductor equipment are among the companies releasing results this week. Nvidia, Walmart and other heavyweights are expected to release their results later this month. Nikkei rose?0.8% early in the morning, catching up with Wall Street's Friday surge. The KOSPI, which is heavily weighted towards chipmakers in South Korea, rose by nearly 5%. Trump will visit China on Wednesday and meet Chinese?President Xi Jinping for their first face-toface talks in more than six months. As they consider extending an important minerals deal, trade, Taiwan, artificial intelligence and nuclear weapons will be discussed. Gold fell 0.5% on commodity markets to $4,690 per ounce, despite the fact that it was not widely regarded as a safe-haven or a hedge against inflation. (Reporting by Wayne Cole, Editing by Edmund Klamann).
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Police report six dead bodies found in a boxcar in Laredo.
According to police, six?bodies?were found in a boxcar on Sunday?in Laredo, Texas. An employee of Union Pacific discovered the bodies in a trainyard at a remote location, near the border with Mexico. Police and firefighters confirmed their deaths later, according to a Laredo Police investigator Joe Baeza. Baeza said that the police have not yet determined how they died. He said that the investigation was?ongoing'. He said that there were no survivors. The police did not specify where the suspects were from. In the past, migrant deaths on trains and tractor-trailers near the U.S./Mexico border have mainly involved migrants. One incident from 2022 saw 53 people buried in an abandoned truck with faulty air conditioning just outside of San Antonio. Reporting by Noel Randewich, San Francisco. Editing by Sergio Non & Tom Hogue
Dollar gains, but share futures are a little erratic as Iran talks falter
Dollar prices rose in Asia on Monday as signs of a deadlock between Iran and the United States led to the closure of 'the Strait of Hormuz, which is vital for oil exports.
U.S.?futures? shook and in Asia, gains in AI-related stocks helped share markets in Seoul as well as mainland China.
Donald Trump rejected Iran's response on Sunday to the U.S. proposal to hold peace talks in order to end the conflict, calling Tehran's demands "totally unacceptable."
Iranian media reported that an Iranian plan sent to Washington stressed the need to end the war on all sides and lift sanctions against Tehran. It also called for?reparations' and recognition of Iran’s control over the Strait.
Bruce Kasman noted that the conflict in the Middle East has now entered its "11th week". Energy prices are up, but they remain at levels which are more of a headwind than an obstacle to expansion.
Our commodities team expects to see operational stress levels beginning in June.
Since the start of the war in late February, Iran has effectively closed the Strait. This is a corridor which normally transports a fifth of the oil and gas around the world.
Brent oil futures rose quickly in Asian trade by 4.3% to $105.47 per barrel. U.S. crude oil gained 4.7%, to $99.92 per barrel.
The dollar gained 0.33% against the Japanese yen, reaching 157.16yen, while the euro fell 0.24%, to $1.1757.
Japan bets that a shift in hawkishness at the Bank of Japan, and the endorsement of U.S. Treasury Sec. Scott Bessent will give the yen buying intervention an extra boost and help?slow down the embattled currencies slide.
The U.S. and Europe are both major oil importers, whereas Japan is the net exporter.
S&P futures fell 0.1% while Nasdaq's futures fell 0.05%. Shares hit record highs last week, thanks to a strong payrolls report and upbeat corporate earnings.
Cisco, a manufacturer of networking equipment, and Applied Materials, a maker of semiconductor equipment are among the companies that have announced their results this week. Nvidia, Walmart and other heavyweights are expected to be announced later this month.
Japan's Nikkei fell 0.36%, erasing earlier gains. The KOSPI, which is heavily influenced by South Korea's chipmakers, rose 4%.
China's blue-chip index?CSI300 rose 1.4%. Hong Kong's Hang Seng Index fell 0.3%.
On Monday, data showed that China's producer price jumped 45 months to the highest level in history. Consumer inflation also increased due to higher global energy prices.
Trump will visit China on Wednesday and meet Chinese President Xi 'Jinping for their first face-to -face meeting in over six months.
As they consider extending an important minerals deal, trade, Taiwan, artificial Intelligence, and nuclear weapons will all be discussed.
Gold fell 0.5% on commodity markets to $4,690 per ounce, despite the fact that it was not widely regarded as a safe-haven or a hedge against inflation. (Reporting by Wayne Cole, Editing by Edmund Klamann & Shri Navaratnam).
(source: Reuters)