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Indian shares are likely to open with a muted opening as US rate hikes offset oil relief
Indian shares will likely open Wednesday with little change, as the fall in crude prices due to U.S. - Iran peace negotiations has been tempered by "growing expectations" of a tighter Federal Reserve policy. The GIFT Nifty Futures are at 23,861.50 points as of 7:58 am IST. This means that the Nifty 50 may open near to Tuesday's close of 23,824.10, when Indian blue chips fell by about 1.2%. IT and metal stocks were the main culprits. The shares had risen by more than 4% over the seven previous sessions up to Monday as the Middle East Peace Talks pushed crude oil prices down, improving the outlook for growth and inflation in the world's third largest oil importer and consumer. The world's No. 3 oil consumer and importer. Wall Street stocks fell overnight due to a sell-off of technology and semiconductor shares. Profit-taking following a prolonged rally as well as expectations for a more hawkish Fed also weighed. Asian markets rose 0.4%, after losing 3.8% the previous session. The higher U.S. rates could reduce the appeal of emerging economies such as India to foreign investors, and cloud the outlook for growth in the largest economy on earth. This would affect sectors that are exposed to the United States. Brent crude futures dropped 0.5% and traded near four-month lows on signs more oil tankers stuck in the Gulf after the Iran War began are about to leave the Strait of Hormuz. On Tuesday, foreign portfolio investors bought Indian stocks worth 178.6 millions rupees ($1.9m) while domestic institutional investors bought?stocks valued at 6.80 billion rupees. Two traders say that the lower crude prices and measures to stabilize the rupee, as well as the increase in foreign inflows have helped moderate the overseas sales over the last two weeks. They said that a revival of monsoon rains and improved earnings could also attract?global investor, who sold Indian stocks worth a record amount of $29.84 billion so far this year. STOCKS TO WATCH ** The Indian government has announced that it will sell up to 2% of Indian Railway Finance Corp through an offer for sales ** Wipro extends partnership with cybersecurity company Palo Alto. Company also extends the 'timeline for buying Alpha Net Consulting?to September 30, from the original June 30 target ** NLC India signs an agreement with Indian Oil Corporation for a joint venture that will develop large-scale power plants using renewable energy in Tamil Nadu
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Iron ore prices rebound from multi-month lows due to dip buying
The iron ore price rebounded from the multi-month lows that were hit on Tuesday, thanks to a 'wave of dip buying and a short covering by some traders. After touching a 11-month-low on Tuesday, the most-traded contract for iron ore on China's Dalian Commodity Exchange rose 0.34% by 0305 GMT to 741 Yuan ($109.16). As of 0255 GMT the benchmark?July ore traded on the Singapore Exchange had risen 0.64% to $98.05 per?ton after having hit a four-month low?Tuesday. In anticipation of a seasonal slowdown in demand and a rising supply, Dalian and Singapore prices declined by 7.7% and 7% respectively in the last?month. According to data from Mysteel, lower prices fueled the buying interest among steelmakers and traders. The daily transaction volume of seaborne cargoes increased by 87% from Tuesday's previous day. Two analysts, who spoke on condition of anonymity because they are not authorized to speak with media, attribute the price rebound to a normal upward adjustment following "sharp drops". Analysts said that some traders have closed their short positions due to the increased buying interest in the spot market. This will eventually permeate the futures markets. Coking coal fell 0.64% while coke remained flat. Steel benchmarks at the Shanghai Futures Exchange have been moving in a narrow range. The price of rebar and hot-rolled coil was little changed. Wire rod rose by 0.48%, while stainless steel fell by 1.31%. ($1 = 6.7884 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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Asian stocks wobble following tech-led saledown, volatility risks highlighted
Analysts warned about the possibility of a new bout of volatility after the?day-long global selloff? in technology and semiconductor stocks. MSCI's broadest Asia-Pacific share index outside Japan fell 0.02%. South Korean shares, that plunged 10% in one day, their biggest drop since March, rose 2.2%. Japan's Nikkei fluctuated between gains and losses. It was last down 0.8%. Michael McCarthy, a market analyst with Moomoo Securities Australia, said that the price action on markets in the past seven days was alarming. Not only when it fell, but also when it rose. When markets are moving so quickly, either in one direction or the other, this is a sign of instability. Overnight, Wall Street was swept by a risk-off mood that tracked movements in Europe and Asia. U.S. shares fell due to concerns over debt-funded AI spending and speculation the Federal Reserve would adopt a more hawkish position. Treasury yields also declined as investors sought safety in government debt. The Dow Jones Industrial Average fell 0.09%. The S&P 500 dropped 1.4% and the Nasdaq Composite declined 2.2%. The yield on benchmark U.S. 10 year notes fell by 1.41 basis points, to 4.493%. The oil price extended its losses this week, trading at four-month lows, which were hit the previous session. This is on the back of signs that there will be more oil tankers leaving the Strait of Hormuz, after being stranded since the beginning of the Iran War. The durability of the agreement is still uncertain. Both the U.S.A. and Iran gave conflicting reports on the peace agreement, which included key elements like nuclear inspections and the control of the Strait of Hormuz. The strength of the dollar has put pressure on the Japanese yen. It is hovering?near a 40-year low at 161.57 to the dollar. This has kept markets on edge about a possible currency intervention to 'prop up the battered currency. The summary of the opinions expressed by the Bank of Japan board at its meeting earlier this month in which it decided to increase interest rates to a new 31-year high of 1.00% was released on Wednesday. It showed that some members wanted to see further rate increases to bring the central banks policy rate to levels considered neutral for the economy. The dollar index (which measures the greenback versus a basket of currencies including the yen, the euro and others) rose by 0.02%, to 101.43. It is now near its year-high. The euro fell 0.06% to $1.1375. The pound GBP= fell 0.08% in Britain to $1.3192. Spot gold continued to decline, falling 0.48%, to $4,088.71 per ounce, as expectations of higher rates reduced the appeal for non-yielding investments. Bitcoin gained 0.84%, reaching $62,914.94. Ethereum gained 0.43%, to $1.669.35. (Reporting and editing by Satoshi Feast; reporting by Satoshi sugiyama)
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Oil prices continue to decline as oil flows through Hormuz are expected to be smoother
On Wednesday, oil prices continued to fall, and traded 'near the four-month lows reached in the previous session. This was on the back of signs that more oil tankers stuck in the Gulf after the Iran war were set to leave the Strait of Hormuz. Brent crude futures fell 37 cents or 0.5% to $76.71 per barrel at 0043 GMT. U.S. West Texas Intermediate dropped 36 cents or 0.5% to $72.85 per barrel. Both benchmarks fell nearly 1% Tuesday, reaching their lowest levels since March. The price of oil has been under pressure since this week, after Washington gave Tehran a waiver from sanctions for 60 days following the initial peace talks. This allowed it to sell its oil. Tomomichi Akuta is a senior economist with Mitsubishi UFJ Research and Consulting. He said that crude oil prices fell due to hopes of easing U.S. - Iran tensions and a possible recovery in oil shipments across the Strait of Hormuz. He added that "further progress in the nuclear negotiations could push prices to pre-war levels." Oman and Iran agreed to continue discussions on Tuesday about the future administration of the Strait. U.S. Secretary Marco Rubio stated that any Iranian attempt at levying transit fees would be a violation of international law. The durability of the agreement remains uncertain. Donald Trump, the U.S. president, said that Iran agreed to "infinity" of nuclear inspections. Tehran denied this claim. Investors also watch to see how quickly Middle Eastern producers are able to restore exports, and whether or not more ships enter the region. A military source in Iran told the Fars News Agency that only a few vessels were allowed to?pass?through?the strait every day, under coordination with Iran’s Revolutionary Guards Navy. Data from ship-tracking showed that three supertankers stranded in the Gulf passed through the strait Tuesday. After the U.S. and Iran ceasefire agreement, the U.N. Shipping Agency said that an evacuation plan is in place to allow hundreds of ships carrying 11,000 seafarers stranded on the Gulf coast to pass through the strait. According to market sources, crude stocks dropped by 765,00 barrels in the week ending June 19. The data was released on Tuesday by the American Petroleum Institute. Nine analysts surveyed by estimated that crude inventories had fallen by an average of 4.5 million barrels over the past week. (Reporting and editing by Yuka Obayashi)
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South Korean shares rise 4.1% on chip stocks' recovery
South Korea's KOSPI recovered sharply on Wednesday morning. It surged 4.1% in the first 30 minutes after nearly a 10% plunge just a day earlier. Retail?investors were rushing to buy a dip. KOSPI increased by more than 330 points, to 8,550.21, just moments after trading started at 0000 GMT. Market leader Samsung Electronics jumped more?than 9% and SK Hynix gained 5%. Seo 'Sang-young is a strategist with Mirae Asset Securities Co. He said that the rebound immediately recouped the double-digit losses of the previous session as retail investors filled the order books. Seo stated that "retail investors are a major factor in this market volatility. They were waiting for the right time to enter the market due to FOMO (Fear Of Missing Out)." The U.S. waits for the inflation and job data while Micron reports earnings in a few weeks. Hyundai Motors and its sister automaker Kia Corp both saw gains of 1.66% and respectively 1.97%. POSCO Holdings rose 0.93% while Samsung BioLogics rose 2.04%. KOSPI is up 102.96% this year. The?won is down 6.2% this year against the dollar. On the money and debt markets, September futures for 3-year Treasury bonds lost 0.04 points to 102.99. The benchmark 10-year Korean bond yield increased by 0.6 basis point to 4.184%, while the most liquid 3-year Korean Treasury Bond yield rose by 1.1 basis points. Foreigners sold shares worth 626.9 billion won. Reporting by Cynthia Kim, Editing by Jacqueline Wong
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Pharrell Williams, designer at Louis Vuitton, borrows California surf culture during Paris heatwave
Pharrell, the Louis Vuitton designer and pop singer, created a giant artificial water fall to set a backdrop for his spring-summer 2027 collection. The launch of Paris Fashion Week took place on Tuesday as a heatwave that broke all records engulfed large parts of France. As they walked on the sand, models wore a mix of denims, hoodies, and flashy jackets. Others carried tiny monogrammed bags while others carried surfboards. The show was heavily influenced by American surf and skate culture. The silhouette of many looks included low-cut sneakers with white rubber soles and laces that resembled Californian lifestyle brand Vans. During the show outside Cite Universitaire in southern Paris, staff and viewers were seen shivering and gasping. Around 9 pm local time, temperatures remained above 30 C. Paris' runway shows began as temperatures in western and central France, which includes Paris, reached around 40 C. This forced tourist attractions like the Eiffel tower to close. So far, the heat has not caused any show cancellations. Fashion Week's organising body FHCM said in an email that some labels such as Dior and Rick Owens changed their schedules so they could hold morning shows. A spokesperson for LVMH's flagship Louis Vuitton brand said that the company had increased water supplies and 'increased breaks' ahead of Williams' performance to improve working conditions. Classic styles included dark green suits and coats, and pullovers with patches of leather. The?Paris men's fashion week?will be followed by a?high couture week?starting on July 6. Pierpaolo's first Balenciaga couture show is among the most anticipated. (Reporting and editing by David Gregorio; Tassilo Humble)
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The court lifts the deadline for Trump's administration to install US park exhibits in time for the 250th anniversary
A U.S. court of appeals ruled Tuesday that President Donald Trump's government does not have to restore dozens of exhibits it has removed from national parks, including those on slavery and climate changes. A unanimous three-judge panel from the Boston-based First U.S. Circuit Court of Appeals temporarily halted a judge’s July 3 deadline that the National Park Service must reinstall exhibits taken down under a Trump Directive targeting displays "inappropriately disparaging Americans past or present." Angel Kelley, a U.S. district judge in Boston, concluded that the displays had been removed as part the illegal effort by the administration to "rewrite the nation's?history with a whiteout pen." Critics accuse Trump of erasing parts of American history in order to fit what they say is his false narrative about the country. The 1st Circuit has declined to temporarily pause Kelley’s decision to halt Interior Secretary Doug Burgum’s implementation of Trump’s March 2025 Executive Order. The 1st Circuit panel of judges, made up of three Democratic presidents appointed judges, stated that it is still evaluating whether Kelley's June 12 ruling should be put on hold until the appeals process and will rule "promptly." Kelley was involved in a lawsuit brought by the National Parks Conservation Association and American Association for State and Local History, who contested the legality and removal of exhibits. In a statement released jointly, the two called the 1st Circuit decision to extend the deadline "disappointing". The decision of the administration to not reinstall or reinstate censored material, especially in advance our nation's 250th anniversary celebrations, is a disservice both to park visitors this summer and to broader American public, they stated. The U.S. Department of Interior overseeing the National Park Service did not respond immediately to a comment request. Trump's executive orders took aim at what he termed a "revisionist" movement that painted the United States in a negative light, portraying it as "inherently racist or sexist or oppressive, and otherwise irredeemably flawed." It also directed changes to be made across all parks. In accordance with Trump's directive, at least 51 exhibits were removed or thrown away from 37 different sites. One exhibit was at the former U.S. Presidential mansion located in Philadelphia's Independence National Historical Park, which described the ownership of slaves by George Washington. Kelley, appointed by Democratic president Joe Biden, ordered that the signs and exhibits be restored "by the 250th anniversary" to honor the remarkable achievements of the United States. The anniversary falls on July 4th. The U.S. Justice Department filed an appeal, calling Kelley’s ruling judicial abuse. It said that complying with Kelley’s deadline of July 3, to reinstall all the software, would be "herculean" and "unmanageable."
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U.S. Senate votes against Trump's war on Iran
The Republican-majority U.S. Senate passed legislation Tuesday that would halt U.S. military action against Iran. However, it is not clear what impact it will have on the war while President Donald Trump's Administration negotiates a deal with the Islamic Republic. The Senate voted in favor of a concurrent resolution that was passed by the House of Representatives earlier this month. This reflects a growing concern among Trump's Republicans over the unpopular conflict which began on February 28, despite the majority of Republicans voting for it. Four 'Republicans joined all Democrats except one in voting for the resolution. ?Two Republicans did not vote. The resolution directs Trump that U.S. forces should not be involved in hostilities against or with Iran. However, it is likely to only remain a symbolic vote. The 1973 War Powers Act states that the measure is not sent to Trump for his signature. The White House, however, has maintained that the 'legislation' is not constitutional and therefore not binding. Legal experts say it's likely that the court will decide this contested question. Scott Anderson, senior fellow at the Brookings Institution, and senior editor for Lawfare, said that "the executive 'branch' will likely ignore this on constitutional grounds. It is not clear who would have the standing to sue in order to enforce it." (Reporting and editing by Sanjeev Mglani; Additional reporting by Richard Cowan)
The Philippines flood control project fails the poor
Infrastructure is key to flood control in the Philippines
Advocacy group calls out'misalignment of flood control projects'
Risk management must be 'holistic' to protect communities
By Mariejo Ramos
She said that heavy rains in Bulacan - a densely populated region north of Manila - knocked over trees and a bamboo stilt home one night in the summer.
Bulacan is one of the provinces that are most prone to flooding in the country. In the last three years, Bulacan has seen the most projects for flood control built.
The government spent over 500 billion Philippine Pesos (8.5 billion dollars) to build infrastructure, such as dykes and seawalls. It also laid down large stones called ripraps to control stormwater.
State investigations revealed that many flood-prone residents were still not protected by the state due to overpriced construction contracts, unfinished buildings and projects that did not match flood risk.
In September, President Ferdinand Marcos Jr. created a commission to investigate corruption in flood-control projects after thousands of Filipinos protested on the streets of Manila to demand accountability from the government.
Dela Cruz has lived on the Angat River's banks for over 40 years. "We were disappointed when we learned how much money was being spent for flood control. We were left behind," he said.
A concrete dam releases water into the Angat reservoir when heavy rains fall to prevent overflow. This exposes downstream communities, like Dela Cruz, to riverbank erosion.
Dela Cruz said, "A state engineer told us that they would build a wall around us to protect us against disasters... But I hope the Government will act soon to prevent another major storm from hitting us."
According to studies, floods in communities on the front lines of climate change are getting worse every year. This is despite the fact that the government has allocated 1.47 trillion pesos (25.23 billion dollars) over the past 15 years for flood mitigation and control programs.
MISMATCH AND CORRUPTION
Residents of another settlement in Sipat along the Angat River were happy to see construction begin in August this year for a riverbank structure that would help prevent flooding.
They learned a month later that the project, worth 96 million pesos ($1.650 millions), had been completed by a different contractor in 2024, even though they had seen no work.
This structure is among several "ghosts" or nonexistent projects for flood control in Bulacan that were marked as completed based upon a database released by the President.
The lawmakers are looking into contractors and officials of the government who could have been involved with stealing funds intended for flood control projects which never materialized.
Oscar Gabriel, the chief of Sipat Village in Plaridel, said, "I was shocked to learn about this ghost project and felt sorry for my community."
"We were pleased that this project came our way, but were lied to and tricked."
As of early this month, the project was still unfinished.
According to a report by Pro-People Engineers and Leaders, a local non-profit that promotes equitable engineering, in Bulacan too, certain flood control projects are not aligned with the actual flood hazards.
Jose Antonio Montalban is an engineer at Propel and a public information officer. He said that there was a feeling of misalignment, and he felt the DPWH did not prioritize flood hazard zones for flood control.
Propel discovered that flood-prone areas of several towns in Bulacan were lacking in flood control infrastructure. This was based on the data of Project NOAH, the Philippines' disaster reduction and management program.
According to the group 411 of the 668 projects for flood control in Bulacan do not fall within any flood-prone areas.
Failure of Infrastructure
Montalban noted that scientific assessments are needed to assess water resources and flood hazards, such as the hydrogeographical condition of a particular area.
He claimed to have seen infrastructure built without any feasibility studies or other necessary studies.
He said that flaws in engineering and design, which are linked to corruption and lack proper planning, can lead to disasters such as the collapse of seawalls and dykes.
The burden on the communities affected by these disasters is great. The engineer explained that when a flood control system collapses, it has a severe and immediate impact on the safety of people.
In a 2022 study, architecture scholars found that the Philippines' costly flood control structures are rendered ineffective if they are not completed or maintained.
The study concluded that the best solutions for reducing the impact of flooding were non-structural.
The report suggested a mix of structural and nonstructural solutions such as improving flood warning and forecasting systems, and assessing water and land resources.
COMMUNITY BASED SOLUTIONS
Greenpeace Philippines stated that corruption in flood infrastructure "cripples the ability of millions Filipinos to survive amidst an escalating global climate crisis".
"Each year, flooding is causing more and more deaths, destruction of homes, and loss of livelihoods for millions Filipinos. Floods also resulted in massive economic losses to local governments and the national government," Greenpeace stated in a Sept. 8 statement.
Propel calls for holistic flood risk mitigation, including community consultations and natural-based solutions.
The Asian Development Bank has identified a few solutions, including restoring wetlands that absorb excess water, creating areas for water retention and revitalizing old river channels.
Propel proposes a comprehensive drainage plan to replace the Philippines "fragmented" framework for flood risk management.
Gabriel, in Sipat, said that transparency is crucial to public works.
He said that flood control infrastructure was a good idea, particularly in areas susceptible to erosion.
(source: Reuters)