Latest News
-
Gold gains on US-Iran agreement, jobs data and gold prices
Gold extended gains on Friday following a stronger-than-expected ?jobs report, with prices ?also heading for a weekly ?rise ?as optimism over a potential end to the Iran conflict helped ease concerns about inflation and elevated interest rates. As of 1322 GMT, spot gold was up 0.8%, at $4,723.28 an ounce. Bullion is up 2.4% this week. U.S. Gold Futures increased 0.5% to $4733.00. Data showed that U.S. Employment increased more than anticipated in April, while the unemployment rate held steady at 4.3%. This indicates a resilient labor market. "Traditionally, we would think that a stronger-than-expected jobs number ?would strengthen the dollar and apply some pressure to gold. We did not see this happen today, said David Meger of High Ridge Futures, the director of metals. Gold is trading more like a risky asset than a safe haven at this time. Gold's rebound is linked to the prospect of de-escalation with Iran. With energy prices falling, we are seeing the likelihood for Fed rate reductions increase in the future. Due to its non-yielding characteristics, gold, which is typically seen as a haven in times of global turmoil, is under pressure due to rising interest rates. According to CME FedWatch, the market is now expecting a rate increase of 14% this year. This is down from 22% the previous day. U.S. forces and Iranian forces clashed and renewed attacks on the United Arab Emirates in the Gulf. President Donald Trump, however, said that a ceasefire still held despite this flare-up. Gold demand in India this week was muted as price recovery caused?potential purchasers to postpone their purchases. Meanwhile, premiums on China remained stable due to the safe-haven demand. Silver spot rose by 3.1%, to $80.88 per ounce. Platinum gained 0.2%, to $2,026.80. Both are headed for weekly gains. Palladium fell 0.3% to $1,476.18, but was down almost 3% on the week. Ashitha Shivprasad reports from Bengaluru.
-
Russell: Exports of refined fuels from Asia to the US plummet after the closure of Hormuz
The impact of the 'crisis' on the physical fuel markets has worsened. While crude oil futures prices have fluctuated in line with headlines regarding the conflict between the United States, and Iran. Brent contracts fell 7.8% to close at $101.27 per barrel on Wednesday, despite the fact that a sustained and full reopening of the 'Strait of Hormuz is still a long time away. The United States and Israel's February 28th attack on Iran has led to a reduction in the volume of refined products shipped throughout Asia. The Strait of Hormuz is the main energy-consuming region in the world and the destination of about 80% of the pre-war cargoes. In April, the combined export volume of these three fuel types was about 3 million barrels a day (bpd), below the average in the three months before the start the conflict. According to commodity analysts Kpler, jet fuel is the part of the barrel that has been most affected. Asia's fuel exports fell to 596,000 BPD in April from 1.54 Million BPD in the three-month period prior to the beginning of the war. The Kpler data for April was the lowest since 2017. It shows that flow levels are about one-third lower than pre-conflict. Most of Asia's jet fuel exports are destined for other Asian countries who import it, while smaller quantities go to Africa, Europe, and North America. India's jet fuel exports fell to 48,600 barrels per day (bpd) in April, from 141,000 bpd before the war, and China's to 135,000 from 308,000 bpd. According to Kpler, the United Arab Emirates shipped zero jet fuel during the month of April, compared to an average of 106,000 barrels per day (bpd) in the three months preceding the war. Singapore assessment prices reflect the shortage of jet fuel cargoes. The price of oil ended at $158.91 per barrel on Wednesday. This is up 70% over the $93.45 it closed on the 27th February, the day before Israel and the U.S. launched their aerial attack against Iran. SUPPLY SQUEEZE The price of gasoil, the building block for diesel, ended at $141.30 per barrel on Wednesday. This is up by 55% compared to the level before the war. Kpler reports that Asia's transport fuel exports dropped to a 9-year low in April of 2,22 million bpd, down from a 3.54 million average in the three month period before the start the the?Iran War. Exports from Japan fell to 32,600 BPD in April, from 148,600 BPD before the conflict. South Korea's exports dropped from 507,000 to?451,000 BPD, India's to 371,000 from 494,000, and China's to 22,000 from 126 300. The same is true for gasoline. Asia's exports fell to 1,59 million bpd from an average of 2,28 million bpd during the three months before the Iran War. South Korea's shipments fell to 181,300 bpd (from pre-war levels) while China's decreased to 47,000 from 116,000. Data shows how quickly refiners in Asia have struggled to secure enough crude to keep refineries running. As commercial and strategic stocks are depleted, the longer the Strait of Hormuz is closed to most vessels the greater the likelihood that crude shortages will be in Asia. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
-
Amazon's Chile datacenter moves forward after residents win environmental challenge
Patricio Hernández lives in the north of Chile's capital, Santiago. He and his neighbors fear that a massive Amazon data center could destroy their area. He said that the hill was very important for the community. It is a green area, a place to relax and for community. He and other local residents attempted to block the construction of the data center. They argued that the permit failed to take into consideration the possibility of building a high voltage power line, which they claimed would be needed to supply the site. They lost their case. Early April, environmental authorities ruled that the data center was allowed to proceed. They said any plans for a powerline should be evaluated separately. Amazon Web Services stated that it is aiming to have the data centers consume as little energy and water as possible and that its plan has met environmental requirements. Construction of data centers has exploded worldwide due to the growing demand for physical infrastructure for computer processing, artificial intelligence and data storage. Data centers are also a source of opposition due to concerns that they could be a drain on resources and cause noise pollution. Rafael Mattje, AWS Southern Cone's technology chief, said from New Zealand: "Our approach was to design the infrastructure with an emphasis on resource efficiency. We incorporated technologies that minimize energy and water usage." Last year, the branch of Jeff Bezos’ tech giant that is responsible for data centres announced a large expansion plan in Santiago. AWS announced that it would invest $4 billion in Chile over the next 15 years in order to build, maintain and operate infrastructure. This will make Chile its third largest hub in Latin America, after Brazil's Sao Paulo, and central Mexico. The new president of Chile, Jose Antonio Kast has promised to reduce redtape and increase connectivity through fiber optic cables. This could make Santiago more attractive for data center developers. "Chile is an industry magnet," said Sebastian Diaz a sustainable city expert and former advisor for Chile's National Data?Center Plan. He warned Chile and the region to balance attracting investments with protecting people and the environment from negative effects. AWS anticipates that its complex located in Santiago, about 8 km north of the center, will last for 30 years. The center will be one of over 900 AWS data centers worldwide and dozens in the Americas. The construction of the datacenter and any infrastructure related to it could have a dramatic impact on the lives of residents, according to Hernandez. He said, "We wake every morning to a hill of green that brings us joy in the gray city." (Reporting and writing by Nicolas Cortes, Carolina Fernandez, Sarah Morland. Editing by Stephen Coates.)
-
Ukraine considers sending security experts in Baltic States amid drone incidents
The 'foreign minister' of Ukraine said on Friday that the country is considering sending a team to help improve air security in the Baltic States after two drones, allegedly from Ukraine, crashed into Latvia. NATO members Latvia and Lithuania, which border Russia have reported several incidents of this nature in the last few months, as Ukraine intensified its 'long-range attacks' against their enemy. Andrii Sybiha said that if it is confirmed that the drones were Ukrainian and were intentionally knocked from their course by Russia's electronic war, we will sincerely apologize to our Latvian Friends. He said that "we are also looking at the possibility of sending Ukrainian experts to directly help?strengthen airspace security for our friends in order to prevent any incidents," Sybiha said that Ukraine is trying to minimize the chance of such incidents recurring. Police and firefighters in Latvia said that four empty oil tanks had been damaged by the incident in Rezekne on Thursday, which occurred about 40 km (25 miles) from Russia's border. In the wake of these incidents, Latvia and Lithuania called on NATO to boost air defences. (Reporting by Yuliia Dysa; Editing by Alexandra Hudson)
-
'We Are American': Acerinox is considering a NYSE listing of US arms
Acerinox's CEO on Friday left a 'door open' for a potential?New York IPO of its U.S. operations, which make up?the majority of the Spanish steelmaker’s earnings. Acerinox, in a Bloomberg News interview last year, floated the idea of listing its U.S. businesses locally after Haynes International is integrated. The acquisition was completed in late 2024. "We can't not consider it," CEO ?Bernardo Velazquez told . "While U.S. valuations and U.S. liquidities remain far higher than those in Spain I believe that we are obliged?to explore all?possibilities." Acerinox will maintain its majority stake in the U.S. company if it proceeds with an IPO, said Miguel Ferrandis, the Chief Corporate Officer, during a call after earnings. He added that the timing for such a move has not been decided. Velazquez said that Acerinox "was not at all concerned" about possible U.S. retaliation against Spain because it refused to allow the U.S. military to use bases in Iran. "The only people who should be concerned about this are those that have to export into the United States." We are Americans, we're regarded as Americans, and we're?fully integrated," said Velazquez, referring the U.S. part of the company, which is a member of U.S. trade associations. Analysts and academics are in agreement that it would be difficult for the U.S. government to impose an embargo against Spain. However, the Trump administration has not yet indicated how they might retaliate. UBS analysts said in a note from March that Acerinox is one of the Spanish companies with the most exposure to the U.S. (Reporting from Gdansk by Javi Larranaga, editing by Milla Nissi-Prussak).
-
US hybrid car sales are on the rise, as is gas prices
According to new industry data and dealers, many American car buyers are turning to hybrid vehicles in order to offset the recent spike in gas prices due to the Iran War. Motor Intelligence, a research firm, says that hybrid sales in the U.S. have risen 37% over the past two months. This was a faster growth than the general car market's 15% increase in sales during that time period. According to the American Automobile Association, fully electric cars did not attract the same level consumer interest even though U.S. gas prices reached $4 in late April and hit a four-year peak. Motor Intelligence data shows that U.S. EV sales have risen just 11% over the past two months, below the broader pace of sales. EV sales are still far below what they were one year ago. This is due to the fact that a $7500 federal tax credit expired last fall. The relative apathy of Americans towards EVs is a stark contrast to the trend in Europe where sales of electric vehicles are booming despite higher fuel prices. In Europe, there are more affordable EVs for sale because the tailpipe emissions rules are stricter than in the U.S. In the United Kingdom EV sales jumped by 79% in the two months following the Iran conflict, a much greater increase than on the broader market. Germany's fully electric car sales also outpaced industry growth, increasing 39% during that time period. HYBRIDS ARE EASIER FOR SOME SHOPPERS TO HOLD Analysts and dealers have pointed out several reasons for why hybrids, which are vehicles that use a battery and an electric motor in conjunction with a gas engine to save fuel, have become the preferred choice of U.S. consumers looking for a "green" car. Hybrids tend to be less expensive than EVs and offer more options. Owners don't have to change their routines to adapt to a new technology, such as plugging a car in at night. Kevin Roberts said that hybrids were popular even before the gas prices began to rise. He is director of economics and market intelligence for online marketplace CarGurus. "Higher gasoline prices only kind of increased this interest." Data from digital shopping shows that consumers are increasingly interested in hybrids and electric vehicles. In April, CarGurus saw a 14% increase in hybrid searches, compared to 12% the month before. Searches for electric vehicles (EVs) increased from 3.4% to 5% in April. Brad Sowers is a car dealer in St. Louis who sells Kias, Stellantis, and General Motors. Hybrids made up 35% of sales at Brad Sowers'?Kia dealer in April. This is an increase from 30% in March. Toyota Motors has benefitted from the increasing popularity of hybrids. The Prius, which was introduced in the late 90s, pioneered this technology. Toyota Motor has been focusing on hybrids for two of its best-selling models, the RAV4 and Camry. Toyota's U.S. electrified vehicle sales have grown 34% in the 'two months following the Middle East conflict. This is mainly due to the 'growing hybrid business and a small number of fully electric vehicles. Toyota's U.S. overall sales increased by 23% during that time period. TRUCKS STILL ROLL OUT EVEN WITH HIGH GAS PRICES Some car buyers have not been affected by the rise in fuel costs. According to CatalystIQ, a company that sells data to dealerships, the number of large trucks purchased in March and April was up 20% from before the war. Todd Szott is a car dealership in Michigan with Toyota, Ford Motor, and Stellantis. He said that customers are aware of gas prices but more interested in the deals offered by carmakers. Gas-powered cars are often the ones that offer the largest discounts. He said, "We are still selling a lot of pickup trucks."
-
HSBC still sees AI as a positive for China's software stocks despite the global jitters
Analysts at HSBC said that China's software industry is likely to benefit from the?rapid implementation of artificial intelligence. This will counter investor concerns about AI disrupting or undermining demand for traditional software suppliers. China's software stock prices are now trading below historical averages due to fears that enterprise software could be replaced by large language models. HSBC stated that these concerns are now overstated, and have been largely factored in. "We believe AI presents opportunities to the software industry rather than a threat," HSBC Analysts Yiran Liu, and Heng Zhu said in a note published on Thursday. They cited software firms' familiarity of business workflows, regulations, and data security - areas where AI models have still limitations. The report is released as global software stocks and services?have been under pressure this past year, after the release new AI tools by Anthropic rekindled concerns about disruption. With the?S&P 500 Software and Services index down approximately 15% year-to date. HSBC stated that lower AI model 'costs' and gains in coding efficiency help Chinese software companies develop products faster, add features, and adapt business models. The brokerage has also suggested that alternative pricing methods, such as outcome- or workflow-based charging could support earnings growth, as AI adoption accelerates. HSBC prefers Intsig, a provider of smart text?recognition and ArcSoft - a company that provides imaging algorithms - among individual stocks. The brokerage began coverage of both companies with the word "buy", citing AI's ability to be monetised through new applications and overseas expansion. HSBC has also identified Kingdee and Yonyou, two enterprise software companies as potential 'beneficiaries' of the rising demand for AI-native enterprise planning tools. The brokerage reported that AI-related orders increased among Chinese software companies, and now account for about 7% of the total revenue in 2025 on average, up from 6% at the beginning of the year. HSBC noted that overseas markets were also becoming a major growth driver. They noted a higher 'willingness to pay' for AI-powered subscription software. HSBC stated that AI has become a "new growth engine" for China's Software Sector. They added that a strong AI order trend combined with a recovery in earnings could lead to a revaluation of the sector. (Reporting and editing by Sumana Niandy in Bengaluru)
-
Brent reaches $100 after renewed Gulf conflict, while AI propels Asia stocks to a weekly rise
As the U.S. exchanged "fire" with Iran in the Middle East the oil prices rose, while stocks fell. However, many equity markets in Asia were on track for stellar gains this week due to booming AI demand. Benchmark Brent crude futures rose about 1% to $101 per barrel, while European shares fell 0.9%. As the results came in, traders were also keeping an eye on Labour Party's losses, which could put pressure on Prime Minister Keir starmer. Sterling was up a little, while British bonds and shares traded in line with their European counterparts. Middle East Clashes The United States and Iran clashed over the Gulf, and the UAE was again attacked in a test for a month long ceasefire. However, the warring parties played down the situation and left investors in the dark. Jan von Gerich is the chief analyst at Nordea. "But I don't think there will be an agreement." "I still believe there will be disruptions along the Strait of Hormuz for some time to come and that it won't get resolved anytime soon." The stock markets in Europe fell. STOXX 600, the pan-continental index, was down by 0.9%. Major bourses of Frankfurt and Paris also fell by a similar amount. The stock markets in 'Asia', which had been surging thanks to the strong revenue and expenditure plans of the U.S. AI Hyperscalers (which will benefit the region’s chipmakers) have slipped from record highs. The MSCI index for Asian stocks outside Japan dropped 1%. However, the KOSPI of South Korea rose 0.1%. This represents a gain of 13.5% in a week, the biggest since 2008. Taiwan's benchmark rose 7% and Japan's Nikkei gained 5.4% this week. The European benchmark is heading towards a weekly drop of 0.1%. Dollar inches lower Currency markets were generally steady, with the dollar slightly falling and headed for its second consecutive weekly loss. However, the yen was still in the spotlight. 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 fell 0.1% last week to 156.8 Japanese yen. It was on track for its second consecutive weekly decline against Japan's currency. However, it was unable to maintain gains above 155, after surges due to suspected interventions to the tune of $70 billion since Thursday. The euro was worth $1.1742. The euro bought $1.1742. U.S. JOBS & UK ELECTIONS IN CENTER A survey of economists indicates that investors are waiting for the U.S. Non-farm Payrolls Report on Friday. The jobs report is expected to show an increase in April of 62,000, after a rebound in March of 178,000, according to?the survey. Nordea's von Gerich stated that the labour market is still doing well. The payrolls report may not be as important as in the past, since the focus is now on the Middle East, and inflation is more of a factor than growth in the U.S. The ruling Labour Party suffered heavy losses in the local government elections held across Britain, even though Prime Minister Starmer stated that he would not be resigning. Analysts at ING said that "Gilts have already been under scrutiny because of inflation risks and the addition of political uncertainty could push (global investors) to look elsewhere." Britain's 10-year?yield remained at 4,936% on the same day, but was still close to its three-decade-high. TARIFFS The U.S. Trade Court ruled that Trump's latest 10% temporary global duty is unjustified by a trade law from the 1970s. Analysts expect an appeal to be filed quickly and that the overall impact of U.S. levies will be minimal. 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 4.38%. Bitcoin is heading towards its sixth consecutive weekly gain at $79 680. (Reporting and editing by Tom Westbrook, Lincoln Feast, Elaine Hardcastle, Kim Coghill)
JFE Holdings, Japan's largest investment company, aims to invest nearly $3 billion overseas in growth.
JFE Holdings (parent of Japan's second largest steel manufacturer) has set aside 400 billion Japanese yen ($2.8billion) to invest overseas over a three-year period. It expects the domestic demand to remain weak, and that China's exports will continue to pressure global markets.
The company stated that its key strengths outside Japan include its partnerships with JSW Steel Limited India and Nucor Corporation North America. It also plans to increase its exposure overseas through strategic local partners.
It added that "in parallel with considering large scale overseas investments, such as the acquisition of raw materials interests, promising opportunities will be pursued through local partnerships in growing markets to capture increasing steel demand abroad."
JFE aims to increase its consolidated profit by 700 billion yen in fiscal 2035 from 135.3 billion last year. It expects that the steel business will remain challenging due to the declining demand in Japan, the increasing exports from China, and the uncertainty for the global economic situation resulting from U.S. Tariffs.
JFE Holdings reported a net loss of 54% for the year ending March 31. This was below LSEG's forecast of 105.4 Billion Yen. The company also posted lower steel production due to weaker domestic and international demand.
The company projected a profit for fiscal year of 75 billion yen. JFE stated that in addition to the low demand at home and U.S. Tariff measures, which are a major risk to its exports to North America, there is also a "significant risk" from the auto and construction machine sectors.
(source: Reuters)