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India's ONGC plans a 1.75 million tonne national strategic oil reserve
India's Oil and Natural Gas Corp, India's largest explorer, will build a 1,75 million metric ton national strategic petroleum reserve at Mangalore (in southern India), the company announced in a late-night stock exchange filing. India, which is the third largest oil consumer and importer in the world, has been severely affected by the blockade of Strait of Hormuz following the Israeli-U.S. attack on Iran. Around a fifth (25%) of world energy passes through the waterway. To strengthen its emergency supply, the 'South Asian nation' is increasing its energy cooperation with other countries, such as Japan and the United Arab Emirates. In the?filing, ONGC said it would ask the federal government for permission to use the storage in "national interests" for commercial purposes. New Delhi has already allowed commercial use of part of its strategic storage, built in three locations in southern India - Mangalore Padur and Vizag. This allows up to 5,33 MT crude to be stored. The Indian Strategic Petroleum Reserves Ltd. manages these storage facilities. Mangalore Refinery and Petrochemicals Ltd is a subsidiary of ONGC that operates a refinery capable of processing 300,000 barrels per day in Mangalore. It has already leased the half of the 1.5MT Mangalore - SPR. The remaining capacity is leased by Abu Dhabi National Oil Co. ADNOC, during the visit of Indian Prime Minister Narendra Modi to the UAE in early this year, announced plans to expand crude oil'storage' in India up to 30,000,000?barrels. ADNOC announced that India would also explore the possibility of storing crude oil at Fujairah, as part of India's strategic reserves. India is also planning to build a 4 MT strategic storage facility in Odisha, and a 2.5 MT facility in Padur in southern India. (Reporting and editing by Nidhi verma)
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Gold prices to drop this week as Gulf attack reinforces rate-hike betting
Gold was?on course for a weekly 'fall' on Friday, amid?concerns about the potential impact of escalating U.S. - Iran tensions on inflation and keeping the Federal Reserve in a hawkish monetary policies. By 0426 GMT, spot gold had fallen 0.2% per ounce to $4113.29 and was on track for a weekly drop of 1.5%. U.S. Gold Futures for August Delivery fell by 0.4% to $4122.70. Tim Waterer is the chief market analyst for KCM Trade. He said that gold?is consolidating today after yesterday's gains. Traders are hesitant to commit further to a?gain due to the uncertainty surrounding US-Iran relationships. The oil prices were on course for a weekly increase as the U.S. & Iran traded strikes. Iranian armed forces launched attacks on U.S. Military Infrastructure in Gulf States on Thursday after?U.S. Strikes on Iran's eastern and southern provinces. The Fed is likely to raise rates this year as inflation fears have been heightened by the latest round of strikes. According to CME's FedWatch, the markets are now pricing in 63% of a rate hike for September, up from 54% just a week ago. Gold is often seen as an inflation hedge, but it can lose its appeal in a high interest rate environment. I expect gold to continue to attract buyers on dips, as long as oil remains at current levels. Waterer warned that a'sharp spike' in oil could reignite inflation fears and interest rate concerns, which would hurt gold. The minutes of the Fed’s June meeting, published earlier this week showed that policymakers were growing concerned about 'elevated inflation. HSBC reduced its average gold price predictions for 2026-2027 on Thursday. They cited a hawkish change in?U.S. Expectations about monetary policy and the'stronger dollar' were cited as reasons for HSBC to lower its average gold price forecasts for 2026 and 2027. Silver spot rose 0.6%?to $60.34 an ounce. Platinum gained 1.4% at $1,632.16. Palladium rose 1.6% to 1,267.71. All three metals are on course for a loss this week. (Reporting from Swati and Pablo Verma, Bengaluru. Editing by Sherry Phillips and Subhranshu Shu.
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India's TCS rises on revenue beat and AI momentum Fueling Recovery Hopes
Shares of India's largest?software exporter,?Tata Consultancy Services, advanced by more than 4% the day after beating a?quarterly revenue estimate.?Deal wins and increasing AI-related revenues raised hopes for a slow earnings recovery. TCS traded 1.8% higher, at 2,086 Rupees, at 9:59 am IST in Mumbai. This boosted the?Nifty50 index by 1.1%. The IT index rose about 2%. The results of the IT company kicked off India's first-quarter earning season, which saw earnings downgrades due to a slowdown in client spending and concerns that AI could disrupt the business models of software companies. TCS's quarterly sales increased 14% over the previous year to 722.75 billion rupies ($7.58 billion). CEO K Krithivasan was "optimistic", he said, about a turnaround of tech spending by manufacturing and life science clients in the second quarter. The order book of the IT firm was $9.5 billion, while its AI revenue rose to $2.6 billion annually. CLSA said the ?firm's revenue ?growth was better-than-expected, helped by strength in banking, financial services and insurance, high-tech and ?regional markets. HSBC stated that the outlook for manufacturing, pharma and Energy was "incrementally optimistic". Nomura analysts said that despite macro-uncertainty, a near-term growth rebound was'reasonably visible' thanks to a $800 million megadeal.
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The dollar is weakening, and the Middle East has not escalated.
The weakened?dollar helped copper to rise on Friday. This eased fears about a spate of?tit-fortat strikes between Iran and the U.S. The benchmark three-month copper price on the London Metal Exchange rose 0.29% to $13,528 per metric tonne by 0300 GMT. The Shanghai Futures Exchange's most traded copper contract rose by 1.61%, to 103950 yuan (about $15,334.80). This week, the LME saw a 1.2% rise. It was a volatile week in which fears of inflation and macroeconomic risks were raised by a new round of fighting between the U.S. The dollar is on course to drop for a third day in a row, which will support copper prices by making them cheaper for buyers who use other currencies. John Williams, the New York Federal Reserve president, downplayed on Thursday the inflationary impact caused by the latest Middle East conflict. Copper, a metal that is dependent on growth and heavily influenced by inflation and interest rates, has a high price. Interest rates that are higher dampen the demand for industrial metals like copper by reducing economic activity. Aluminium gained 0.55% at the LME, and 0.67% at the SHFE. Prices for light metals are expected to reach their highest level since April with a rise of more than 4% on the LME. Stockpiles of aluminium have been dwindling due to disruptions in Middle East supply. The Middle East, which is home to 9% of the world's smelting capacity, has lost production. This has helped push the market into deficit. Total LME aluminium stocks The lowest levels since 2022. LME zinc rose 0.06% after rallying over 3% on Friday?on reports of a fire at a South Korean Smelter. The SHFE price also gained 1.32%. Lead added 0.18% to the?LME, nickel added 0.29 and tin ticked up by 0.1%. Nickel gained 1.13% while tin grew 2.38%.
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Twelve people have died in wildfires that raged through southern Spain, according to the emergency agency
The Emergency Agency of Andalucia announced early Friday that 12 people had died in a blaze in Almeria, southern Spain. Antonio Sanz, Minister of Presidency, health, and Emergencies, called the fire the "most devastating fire in our region to date"? and described the situation as "unprecedented". Six deaths were reported earlier due to the wildfire. In a recent post on X, Juanma Moreno wrote: "Our deepest sympathies to the families of the six people that lost their lives at Los Gallardos. And?the affection of all of us for?the municipalities that were affected by the fire." Los Gallardos, a municipality in the Almeria Province of southern Spain's Andalusia region, is known for its wildfires. This blaze comes after a wildfire that was burning out of hand in southern France earlier this week, which forced the evacuation of more than 10,000 people from a dozen small?towns? and villages near Spain's border. The early summer heatwaves in western Europe between?May? and?June? have parched large areas of land, making it particularly vulnerable to fires this year. The World 'Meteorological Organisation has stated that Europe is warming at a rate more than double the global average. This makes prolonged heat events increasingly likely. (Reporting and editing by Kim Coghill in Bengaluru, and Lincoln Feast.
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Gold prices to drop this week as Gulf attack reinforces rate-hike betting
Gold prices rose on Friday as the dollar weakened, but were on course for a weekly decline on fears that the escalating tensions between the U.S. and Iran could fuel inflation. This would keep the U.S. Federal Reserve in a hawkish policy direction. As of 0303 GMT spot gold was up by 0.2%, at $4,128,92 per ounce. It is heading for a weekly decline of over 1%. U.S. Gold Futures for August Delivery were unchanged at $4,139.50. Dollars were at their lowest level in a week, which made greenbacks priced bullion more accessible to holders of other currencies. Tim Waterer is the chief market analyst for KCM Trade. He said that gold?is consolidating today after yesterday's gains. Traders are hesitant to commit further upside due to the?prevailing uncertainties over US-Iran relationships. Oil prices are on course for a weekly gain as U.S. armed forces and Iran continue to exchange strikes. Iranian armed forces launched attacks on U.S.?military?infrastructures in Gulf states after U.S. strikes against Iran's eastern and southern provinces. The recent round of strikes have fueled inflation concerns, and reinforced the likelihood that the U.S. Federal Reserve will raise interest rates in this year. According to CME’s FedWatch tool, the markets are now pricing in a 64% probability of a September rate hike. This is up from 54% just a week ago. Gold is often seen as an inflation hedge, but it can lose its appeal when interest rates are high. "I think gold will continue to be attractive on dips, as long as oil remains at current levels." Waterer said that a sharp rise in oil prices could rekindle inflation and interest-rate fears, which would hurt gold. The minutes of the Fed's meeting in June, which were released earlier this week, revealed that policymakers are increasingly concerned about inflation. HSBC cut their average gold price predictions for 2026-2027 on 'Thursday. They cited a hawkish change in 'U.S. Expectations about monetary policy and a stronger dollar were cited as reasons for HSBC's downward revision of its average gold price forecasts for 2026 and 2027. Silver spot rose 0.8%, to $60.46 an ounce. Platinum gained 1.6%, to $1.636.68. Palladium increased 1.6%, to $1.267. All three metals are on course for a loss this week.
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Japan's Nikkei gains 2% as AI rally lifts yen and bonds
The Nikkei index rose on Friday due to a rally of AI-related stocks. Also, the currency and bond markets in Japan advanced as a result of a possible reorientation in the investment strategies by Japan's large pension funds. The benchmark Nikkei 225 rose by 2% to 69,121.02 while the Topix grew by 0.76%, reaching 4,050.82. The yield on Japan’s 10-year government bonds fell by 10 basis points to 2.775%. This is a decline from the three-decade high. The yen gained 0.43% versus the dollar to 161.69. Wall Street tech shares soared after Micron Technology announced plans to invest over $250 billion in the U.S.A. through 2035. Shuutarou Yasuda is a market analyst with Tokai Tokyo Intelligence Laboratory. He said that Japanese stocks were influenced by the overnight rally in U.S. tech stocks. The market became optimistic about the U.S.-Iran peace talks and oil prices dropped. The Nikkei gained the most thanks to chip-related stocks, with Sumco soaring 15.40% and Advantest gaining 8.54%. SoftBank Group, an investment conglomerate in the tech sector, rose 11.33%. The rise in bond prices and currency follows comments made by Finance Minister Satsuki Catayama, who said on Thursday that the Government would investigate measures to encourage pension funds to increase their investments in domestic financial assets. Bonds and the yen both experienced a boost in sentiment as the prospect of Japan's biggest pension investors investing more money into local markets was raised. "Katayama’s remarks helped reverse the?selling trends of Japanese government bonds and the yen," Masahito. Sugawara said, a senior analyst at Daiwa Securities. "Now, half of the assets held by Japanese pension funds is invested in foreign assets. The market bet that a possible change in asset allocation would favor Japanese assets. Fast Retailing?fell 4.23% in a single day, its steepest drop since November 2025. Tokio marine Holdings lost 3.02%. The Nikkei225 saw 116 stocks advance against 107 declining ones, while two stocks remained unchanged.
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Gold gains more than 1%, but focus shifts to Middle East tensions
Gold prices rose by more than 1% 'Thursday, as bargain hunters emerged after the price fell to a one-week low. Investors also kept an eye on developments in Middle East. Gold spot rose by 1.3%, to $4130.58 an ounce at 2:05 pm EDT (1805 GMT) after Wednesday's drop to its lowest price since July 1. U.S. Gold Futures for August Delivery settled 1.4% higher, at $4.140.80 an ounce. After yesterday's drop, there is a lot of bargain-hunting going on. Bob Haberkorn is a senior market strategist with StoneX. He said that the Fed will be the primary driver of gold in the short-term. Haberkorn said that if the Fed adopts a more dovish approach to interest rates then gold and silver will move higher. If it indicates a need to increase rates further, both metals are likely to be under pressure. The geopolitical situation is also tense. After U.S. airstrikes in Iran's eastern and southern provinces, the?Iranian military launched attacks against U.S. infrastructure in Gulf neighbouring states. The war may cause higher energy prices, which can lead to inflationary pressures. This could also fuel expectations that central banks will raise interest rates. Gold is often seen as a hedge to inflation. However, rising interest rates tend to make gold less attractive by increasing the appeal for assets that pay interest. According to the CME FedWatch Tool, traders are pricing in a 62% probability of a rate hike in September. The minutes of the Federal Reserve's June meeting showed that inflation was a growing concern. A few policymakers saw grounds for an increase in rates before the central bank decided to hold them. Investors will also closely follow?next weeks inflation data as well as Fed Chair Kevin Warsh’s congressional testimony to gain further insight on the direction of monetary policy. In a Thursday note, HSBC reduced its average 'gold price forecasts' for 2026-2027 to $4,560 and $5,925 respectively. Silver spot gained 3.4%, to $60.25 an ounce. Platinum rose 2.3%, to $1,615.25, while palladium rose 3.3%, to $1,253.25. (Reporting by Sukanya Mitra in Bengaluru; Editing by Joe Bavier, Diti Pujara and Jonathan Ananda)
MORNING BID EUROPE - Japan calling capital home
Ankur Banerjee gives us a look at what the European and global markets will be like today. This is a much-anticipated'move' to encourage repatriation. Satsuki Katayama, Japan's Finance Minister, said the country wanted to encourage pension funds to invest "substantially more" in domestic financial assets. GPIF is the largest pension fund in the world, with assets of 293.4 trillion yen. Financial markets closely follow its movements, since any changes in strategy are often mirrored by other funds. The Takaichi Administration's fiscal expansion and the possibility of political interference with monetary policy sparked concerns, which led to a sell-off in Japanese government bond (JGB) yields reaching multi-decade highs this week. The 'latest broadside' lifted the yen and eased yield pressure, keeping the Nikkei on track. After Katayama's remarks, the yen firmed up more than 0.5% and reached 161,45 against the U.S. Dollar. The AI theme has returned ahead of the U.S. debut of chip bellwether SK Hynix, which is the AI poster child. SK Hynix raised $26.5 billion as part its offering. After a strong run, chip stocks have lost a bit of'momentum' in recent weeks as investors worry about AI spending, high valuations, and the pace at which profits are growing. Investors are awaiting the debut re-rating of SK Hynix against its U.S. competitor Micron. Retail investors will also be a focus.
Micron is trading at a price-to earnings ratio of 6.66 in the 12-month future, compared to SK Hynix’s 5.5. The following are the key developments that may influence Friday's markets:
Economic events: June data on inflation in Germany and France. (Edited by Jamie Freed; Ankur Banerjee, Singapore)
(source: Reuters)