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Clashes in Pakistan-administered Kashmir kill 11 ahead of protest
Clashes in Pakistan-administered Kashmir ahead of a protest called for Tuesday killed ?11 people and injured more than 70 as ?police and paramilitary forces sought to scatter a group of protesters from a ?banned alliance of civil society ?groups. The police said that the protesters from 'the Joint Awami Action Committee', which aims to protect economic and political freedoms, had gathered in front of the hospital morgue, where another member of the group was taken following his death by firing. Sardar Waheed Khan said that four police officers and one passerby were killed after miscreants fired at them. He added, "As a result of law enforcement's response, six protesters died." Liaqat Malik, the police chief in Pakistan's Himalayan region which is a flashpoint between India and Pakistan, said that 23 security officials were injured in the incident on Sunday. He also added that 50 protesters had been injured. Thirty offenders have since been arrested. Shaukat Mir, a JAAC member, said in a video on X that the state had begun a massacre against our people in Rawalakot. He pledged that the group will remain united in order to achieve the June 9 lockdown. Khan responded by saying, "The JAAC leaders are misleading the masses when they call it a massacre. The state's actions were meant to restore order. He said that when security forces attempted to disperse?protesters the group's militants used automatic rifles as well as petrol bombs to target them. The JAAC announced the strike in protest of the reservation 'of 12 seats for refugee candidates at the July 27 regional legislative?body elections, out?of?45 that were up for grabs. The alliance wants to abolish the reserved seats of the Azad-Jammu-and Kashmir Legislative assembly, which are contested by candidates from Pakistan, not Kashmir. The regional government declared the JAAC a prohibited group on Friday under an anti-terrorist law and advised 'domestic and international tourists to leave before June 9'. After clashes with the security forces, the JAAC's supporters turned the deadly protests against the rising cost of electricity and flour into mass demonstrations. Reporting by Tariq Mqbool, Writing by Mubasher Bukhari; Editing Clarence Fernandez
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NATO kills drone in Latvian airspace - army
NATO fighter jets shot down on Monday a 'drone' that entered Latvian airspace from Russia, according to the Baltic nation's military. This is the latest incident in a long line of security incidents near Europe's eastern borders. The origin of the drone was not immediately known. In recent months, Ukraine has increased its long-ranged drone attacks against Russia, including the Baltic Sea region, where several Ukrainian military aircraft have entered the airspace of Finland and Latvia. In a social media post, the Latvian army stated that "Allied fighter 'jets successfully shot down a drone which was flying into Latvian Airspace!" The authorities warned residents in eastern Latvian regions earlier Monday to take shelter inside due to the threat. The alert was lifted 'when the drone had been shot down,'?the army? said. The 'war in Ukraine' is spreading to NATO's northern border, according to fears sparked by military drones that have crossed into Russia's airspace. Last month, a NATO jet shot down a suspected Ukrainian drone in Estonia. (Reporting and writing by Janis Sytas and Andrius Laizans, editing by Terje Solsvik).
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London Copper nears 1-week Low on Continued Inflation Worries
London copper prices remained at a one-week low on Monday due to weaker Chinese 'prices, and expectations that the Federal Reserve will be influenced by strong U.S. job data and higher oil prices. The benchmark three-month copper price on the London Metal Exchange rose 0.19%, to $13,545 per metric ton at 0710 GMT. The LME copper fell to its lowest level since May 28 due to a rising dollar, and fears of inflation. Industrial metals are more dependent on economic growth as a result of higher?interest rates. The official data revealed that the U.S. added 172,000 new jobs in May. This was more than twice what analysts expected. The data was released less than two weeks before Kevin Warsh made his debut as the?head of U.S. Federal Reserve. According to CME's FedWatch, the expectation of a rate increase in December has risen to around 78%. The most traded copper contract at the Shanghai Futures Exchange fell 1.54%, to 104120 yuan (15,340.87 dollars) per ton. The stock market in China and Hong Kong opened lower on Monday, following their U.S. counterparts. Yangshan Copper Premium The price of copper, which reflects the demand for imported metals, dropped to $64 a ton by the end the day on the Friday. This is the lowest since April 30. Buyers in China are historically sensitive to high prices. Oil prices also increased by?4.84% after Iran and Israel traded fire on Monday. Aluminium fell by 0.06% on the LME, while zinc dropped by 0.31%. Lead?lost 0.5 %, and nickel grew 0.08%. Tin declined 2.71%. Aluminium fell 0.8% on?SHFE. Zinc dropped 0.87%. Lead slid by 0.37%. Nickel added 0.25%. Tin dropped by 6.62%.
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Gold continues to fall on fears of an interest rate hike in the US
Gold prices fell on Monday to their lowest level in more than two-months, amid fears of an increase in U.S. interest rates following a positive jobs report. Meanwhile, renewed hostilities across the Middle East drove oil prices up and increased inflation concerns. Gold spot was down 0.3% to $4,315.71 an ounce at 0725 GMT. It had fallen to its lowest level since March 23 during the earlier session. Prices dropped by?3% Friday, reaching a two-month low. U.S. Gold Futures for August Delivery were down 0.6% to $4,341.10. Kelvin Wong is a senior analyst at OANDA. He said that gold was under pressure due to the increased Treasury yields. The yield on the benchmark 10-year U.S. Treasury Note rose, after reaching a two-week-high in the previous session. This increased the opportunity cost of holding non-yielding gold. Israel claimed it had struck military targets on the western and central Iranian coasts, despite reports that U.S. president Donald Trump told Israeli Prime Minister Benjamin Netanyahu not to launch any more attacks. Oil prices rose by more than $4 per barrel, causing inflation fears and interest rate increases to rise. Gold is often seen as a hedge to inflation. However, higher interest rates can weigh down on this non-yielding material. The U.S. Economy posted a strong third consecutive month in May. This confirms that the labour market is gaining momentum after last year's stumble. It also gives the central bank more leeway to keep rates stable amid rising inflation caused by the Iran War. According to CME Group’s FedWatch tool, the markets are pricing in an increase by the Federal Reserve before year-end. There is a 72% probability of this happening by December. Cleveland Fed President Beth Hammack stated on Friday that the new job numbers showed the labour market was?roughly in balance and close to?full employment', while the continued high inflation could?require the Fed raising rates soon to control it. Silver spot was down by 0.5% to $67.47 an ounce. Platinum fell 0.6% to 1,766.70 while palladium rose 0.3% to $1229. (Reporting and editing by Subhranshu sahu in Bengaluru, Sherry Jacob-Phillips).
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Wall Street Journal, June 8,
These are the most popular?stories from the Wall Street Journal. These?stories have not been?verified' and we cannot?guarantee? their?accuracy. Israel and Iran traded missile strikes Monday, after the U.S. brokered a ceasefire in early April. This was their first direct attack since the truce went into effect. - Nvidia is ?teaming up with South Korea's SK Telecom and Naver ?to build gigawatt-scale artificial-intelligence cloud infrastructure in Asia. - Intesa Sanpaolo said ?it has launched a EUR30.66 billion ($35.33 ?billion) unsolicited cash-and-share ?takeover bid for Monte dei Paschi di Siena. Roche has announced that it has signed an exclusive licensing agreement and collaboration with Nurix Therapeutics for the development of blood cancer drug,?bexobrutideg. The deal is worth up to $2.3 Billion. OPEC and their 'allies' agreed to increase oil production?by 188,000??barrels a day in July, amid Middle East tensions which have?disrupted a major oil?shipping?route. Ingredion announced that it had agreed to purchase Tate & Lyle, a British company, for PS2.7 billion ($3.6 'billion) cash. The deal stipulated a price of?595 per share.
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Gold continues to fall on fears of an interest rate hike in the US
Gold prices sank on Monday due to a growing 'fear of an increase in U.S. interest rates? after a positive jobs report. Meanwhile, renewed hostilities across the Middle East drove oil prices up and increased inflation fears. Gold spot fell 1% at $4,287.66 an ounce as of 0544 GMT. Prices dropped about 3% Friday, reaching their lowest level since March 24. U.S. Gold futures for August delivered?were down by 1.2% to $4,311. The market's hawkishness is reflected in the Fed futures, said Kelvin Woong, senior analyst at OANDA. He added that higher Treasury yields are further pushing gold down. The yield on benchmark 10-year U.S. Treasury notes rose, after jumping to two-week highs in the previous session. This increased the opportunity cost for holding non-yielding gold. Israel claimed it had struck military targets in western and central Iran, despite the fact that U.S. president Donald Trump reportedly warned Israeli Prime Minister Benjamin Netanyahu not to launch any further attacks. Oil prices increased by more than $3 per barrel, causing inflation fears and interest rate increases to rise. Gold is often seen as a hedge to inflation. However, rising interest rates can weigh on this non-yielding precious metal. The U.S. Economy posted a strong third consecutive month of job gains in the month of May. This confirms that the labour market is gaining momentum after its stumble last year, and gives the central bank more room to maintain rates despite rising inflation caused by the Iran War. According to CME Group’s FedWatch tool, the markets are pricing in an increase by the Federal Reserve before year-end. There is a 72% probability of this happening by December. Cleveland Fed President Beth Hammack stated on Friday that the new jobs numbers showed the 'labour market is roughly balanced?and close to full employment. Meanwhile, continued high inflation may require the Fed raising rates soon to control it. Silver spot was down by 2.2% to $66.33, platinum fell 2.1% to 1,739.78 and palladium dropped 1.5% to 1,207.50. (Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu Sahu)
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Gold continues to fall on fears of an interest rate hike in the US
Gold prices extended their?losses Monday due to a growing?fear of an U.S. rate?hike?following a strong jobs?report, while renewed hostilities and inflation concerns in the Middle East drove oil prices up. By 0429 GMT, spot gold had fallen 0.2% to $4319.09 an ounce. Prices dropped by about 3% Friday, reaching their lowest level since March 24. U.S. Gold Futures for August Delivery?were down by 0.5% to $4,343.20. The market's hawkishness is reflected in the Fed futures, said Kelvin Woong, senior analyst at OANDA. He added that higher Treasury yields are further pushing gold down. The yield on benchmark 10-year U.S. Treasury notes rose, after soaring to a 2-week high in the previous session. This increased the opportunity cost for holding non-yielding gold. Israel claimed it had struck military targets in western and central Iran, despite the fact that U.S. president Donald Trump reportedly warned Israeli Prime Minister Benjamin Netanyahu not to launch any further attacks. Oil prices increased by more than $3 per barrel, causing inflation fears and interest rate increases to rise. Gold is often seen as a hedge to inflation. However, rising interest rates can weigh down on this non-yielding precious metal. The U.S. Economy posted a strong third consecutive month of job gains in the month of May. This confirms that the labour market is gaining momentum after its stumble last year, and gives the central bank more room to maintain rates despite rising inflation caused by the Iran War. According to CME Group’s FedWatch tool, the markets are pricing in an increase by the Federal Reserve before year-end. There is a 72% probability of this happening by December. Cleveland Fed President Beth Hammack stated on Friday that the new jobs figures show the labour market is roughly in balance and near full employment. However, the continued high inflation could require the Fed raise rates quickly to contain it. Silver spot was steady at $67.86 an ounce. Platinum lost 0.5% at $1,767.42 and palladium remained unchanged at $1.225.67. (Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu Sahu)
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London Copper nears 1-week Low on Continued Inflation Worries
London copper was near its one-week lows Monday due to a combination of 'weaker Chinese metal prices' and a growing expectation that the Federal Reserve will be pushed towards rate hikes by strong U.S. job data and higher oil costs. Benchmark 'three-month copper' on the London Metal Exchange rose 0.38% at $13,570.5 per metric ton as of 0331 GMT. LME copper fell to its lowest level since May 28 due to a rising dollar, and inflation fears. Industrial metals are more dependent on economic growth, so higher interest rates can dampen their prospects. Official data showed that the U.S. economy created 172,000 new jobs in May. This was more than double what analysts expected. The strong data was released less than two weeks before Kevin Warsh made his debut as the head of the U.S. Federal Reserve. According to CME's FedWatch, expectations of a rate hike in December have risen to 78%. The most traded copper contract at the Shanghai Futures Exchange fell 1.5%, to 104160 yuan (15,354.45) per ton. The trend was a sell-off in tech stocks across Asia as China and Hong Kong opened lower Monday, following their U.S. counterparts. The Yangshan Copper Premium The price of copper in China, which reflects the demand for imports, dropped to $64 a ton at the end of Friday's trading, its lowest level since April 30. China has historically been sensitive to high prices. Oil prices increased by?3.68% Monday, after Iran and Israel exchanged?fire Sunday and Monday. Aluminium, zinc, and lead all saw a slight increase. Nickel also increased by 0.4%. Tin, however, fell by 1.48%. On the SHFE, elsewhere, aluminum fell 0.74%. Zinc also dropped 0.74%. Lead dipped by 0.21%. Nickel gained 0.79%. Tin plunged 5.97%.
Business bolster currency hedges after Trump win as tariffs loom
Multinational companies are boosting their foreign exchange hedging methods to safeguard their overseas revenues from bigger currency swings that might come from a 2nd Donald Trump presidency. Considering that the U.S. election 3 weeks ago, strategists and lenders said they are seeing more interest in choices and crosscurrency swaps as business, including those in healthcare and commercial sectors, concentrate on how volatile currencies might be under Trump.
The election is a big catalyst for hedgers to think about currency threat, stated Karl Schamotta, chief market strategist at payments business Corpay in Toronto.
Services that for a long time were relatively comfy with the instructions and the scale of exchange-rate moves are being shocked out of that complacency. Trump's election is introducing volatility into foreign-exchange markets as his success clears the method for tariffs and protectionist trade policies that were the hallmark of his very first term. Trump said on Monday he would enforce a 25% tariff on all items from Mexico and Canada, and an additional 10% tariff on Chinese items, on his first day in office, citing concerns over prohibited immigration and illicit drugs.
The news prompted the peso to drop as much as 2%. while the Canadian dollar fell as much as 1.4%. The U.S. dollar index, which determines the U.S. currency's. strength against 6 peers, has risen 3.5% given that the Nov. 5. election, broadly on expectations Trump's policies on trade and. tariffs will be dollar-supportive. Scott Bessent, Trump's U.S. Treasury secretary pick, has actually preferred a strong dollar and. supported tariffs. Contributing to the unpredictability is the 2026 evaluation of the United. States-Mexico-Canada trade contract that described tariff. arrangements and was carried out throughout Trump's very first term. Trump. has stated he means to make the arrangement a better offer,. although information of modifications are unclear.
Trump's first term, which was marked by big swings in. trade-sensitive currencies, highlighted the need for more. hedging, experts stated.
At the very same time, global central banks are trying to. stabilize interest-rate policy while balancing growth and. inflation concerns, another possible source of volatility in. the coming months.
About 94% of senior finance decision-makers at UK and U.S. companies in a Nov. 7-18 MillTechFX survey stated the U.S. election outcome was prompting them to change their. foreign-exchange hedging techniques.
Some are seeking to extend the duration of hedges, while. others aim to bump up their hedge ratios - the proportion of. their general foreign-exchange exposure that is safeguarded.
LOWER FOREIGN EARNINGS
Among currencies that companies are wanting to hedge are the. Mexican peso and the euro.
A stronger dollar means U.S. business' foreign revenue is. worth less when transformed to dollars, which erodes revenues. The. S&P 500 produces 41% of revenues outside the U.S., according to. John Butters, senior revenues analyst at FactSet. The Mexican peso, which has actually fallen 2% since the election and. almost 17% year-to-date since Monday's close, is especially in. Trump's crosshairs. The close U.S. trading partner is vulnerable. to tariffs, which could interfere with corporate supply chains.
Although the interest-rate differential in between the U.S. and. Mexico has actually tightened up because the election, the cost of hedging. long peso positions has increased since of the peso's slide,. stated Paula Comings, head of foreign-exchange sales at United States Bank .
Those offering MXN and buying dollars may be reluctant right. now to contribute to forward hedging volumes, however are looking at. alternatives as a possible alternative, Comings said.
Services are likewise faced with tighter credit requirements from. lenders and rising hedging expenses, said Tom Hoyle, service. development director at MillTechFX, a currency trading platform,. which has increased FX alternative usage.
Eventually, if organizations want to safeguard themselves. longer-term, they will either have to take in greater costs or. search for alternatives, he added.
Lots of business expect trade unpredictability to tax. East Asia and Europe as well, according to the study.
Comings said the influence on the euro, down some 4% versus. the dollar given that the election, was not priced in ahead of the. election as much as in Mexico's and China's currencies. It is. now being pressed by tariff talks, an ailing German economy. and weakness in producing throughout parts of Europe.
Comings is seeing some U.S. health care and industrial. companies express interest in using euro cross-currency swaps to. handle currency threats and lower their interest payments. Annual. return on these euro/dollar agreements has increased since the. election to as much as 2% on agreements two years or longer,. highlighting the appeal of these agreements.
The election results have worsened the requirement to. understand at what rates some companies might not have the ability to pay for. doing worldwide organization if included tariffs and/or guidelines. are something that will likewise require to be accounted for, stated. Juan Perez, director of trading at Monex USA.
(source: Reuters)