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Stocks rise, dollar falls as US-China talks are in the spotlight
The dollar fell on Monday as the United States and China began talks in London to settle a trade conflict between their two largest economies. The dispute has gone beyond titt-for-tat trade tariffs and now includes restrictions on rare earths. This could cripple global supply chains, slowing growth. U.S. president Donald Trump said that his administration is doing well, and he's getting good feedback as U.S. officials are holding the talks with China. The market considers dialogues with Beijing to be progress, regardless of whether they produce tangible results. "The market will take the administration at its word until it is proven otherwise," said Jake Dollarhide of Longbow Asset Management, Tulsa. The Dow ended flat, as Morgan Stanley downgraded McDonald's to "equal weight" and Travelers. The Dow Jones Industrial Average rose 0.09 points to 42,761.76, while the S&P 500 gained 5.52 points or 0.09% to 6,005.88. Finally, the Nasdaq Composite climbed 61.28 or 0.31% to 19,591.24. The S&P 600 index rose 0.9%, indicating that small-cap stocks have outperformed. MSCI's global stock index gained 1.94 points or 0.22% to 893.90, and is on course for its second consecutive session of gains. In five of the six recent sessions, it has increased. In Europe, STOXX 600 closed down by 0.07%, ending a winning streak of four sessions, its longest consecutive run in three weeks. The U.S. Dollar fell against most major currencies as caution in anticipation of trade talks offset optimism about a better than expected U.S. Employment Report on Friday. In a post on social media, Trump stated that U.S. Treasury Sec. Scott Bessent and Commerce Sec. Howard Lutnick, as well as Trade Rep Jamieson Greer, would be representing Washington at the London talks. The Chinese Foreign Ministry said that Vice Premier He Lifeng attended the first China-U.S. Economic and Trade Consultative Mechanism meeting in Britain. U.S. data on the economy showed that wholesale inventories in April increased due to stockpiling prescription medications in anticipation of tariffs by the Trump administration. Investors will also be awaiting U.S. data on inflation that could affect expectations about the timing of rate cuts from the Federal Reserve. Morgan Stanley analysts said that they expect May to be the beginning of a series of core inflation readings which will become increasingly stronger. The impact from tariffs is expected to peak in the third quarter, and then begin fading in the fourth. According to LSEG, the market is not expecting a Fed cut before September's meeting. It currently prices in a 62% probability of a reduction of at least 25 base points. Fed officials are in an "invisible period" ahead of the policy decision on June 18. The dollar index (which measures the greenback in relation to a basket of currencies) fell 0.14%, while the euro rose 0.25%, reaching $1.1423. Treasury yields on longer-term U.S. Treasury notes were lower to start the week. This reversed after the Friday jobs report drove yields higher. The yield on the benchmark U.S. 10 year notes fell 2.8 basis points, to 4.482%. Investors will be watching the auctions for U.S. bonds and notes of 3, 10 and 30 year maturities this week to see if there is any investor demand. U.S. crude oil settled up 1.1% at $65.29 per barrel while Brent settled at $70.04 per barrel up 0.86% for the day. This was due to hopes that a trade agreement could boost the global economy along with a weaker dollar.
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Dollar falls, stocks rise as US-China talks focus
The dollar fell on Monday as the United States and China began talks in London to settle a trade conflict between their two largest economies. The trade dispute has gone beyond tit for tat tariffs and now includes restrictions on rare earths. This could cripple supply chains, slowing global growth. Peter Cardillo is the chief market economist of Spartan Capital Securities. All three major Wall Street indexes rose, with the Dow erasing previous declines due to weakness in Travelers, McDonald's and Morgan Stanley, which downgraded the latter's rating from "equal weight" to "equal". The Dow Jones Industrial Average rose by 99.41 points or 0.23% to 42,862.26, while the S&P 500 gained 18.48 points or 0.31% to 6,018.84, and the Nasdaq Composite climbed 88.71 or 0.46% to 19,618.93. The MSCI index of global stocks rose 3.37 points (0.38%) to 895.33, and is on course for its second consecutive session of gains. In five of the six recent sessions, it has increased. In Europe, STOXX 600 closed down by 0.07%, ending a winning streak of four sessions, its longest consecutive run in three weeks. The U.S. Dollar fell against most major currencies as caution in anticipation of trade talks offset optimism about a better than expected U.S. Employment Report on Friday. In a post on social media, President Donald Trump announced that U.S. Treasury Sec. Scott Bessent will be joined by Commerce Sec. Howard Lutnick, and Trade Rep Jamieson Greer to represent Washington at the discussions with China. China's Foreign Ministry announced Vice Premier He Lifeng would be in Britain to attend the first meeting of China-U.S. Economic and Trade Consultative Mechanism. The U.S. economy data revealed that wholesale inventories in April increased amid stockpiling prescription medications in anticipation of tariffs by the Trump administration. Investors will also be watching Wednesday's U.S. Inflation data, which may change expectations about the timing of rate cuts from the Federal Reserve. Morgan Stanley analysts said that they expect May to be the beginning of a series of core inflation readings which will become increasingly stronger. The impact from tariffs is expected to peak in the third quarter, and then begin to decline in the fourth. According to LSEG, the market currently prices in a 59% probability of a central bank cut of at least 25% basis points during its September meeting. The Fed is in a "blackout" period before the policy decision on June 18. The dollar index (which measures the greenback in relation to a basket of currency) fell 0.14%, while the euro rose 0.24%, reaching $1.1421. Treasury yields on longer-term U.S. Treasury notes were lower to start the week. This reversed after the Friday jobs report drove yields higher. The yield on the benchmark U.S. 10 year notes fell 3.4 basis points, to 4.476%. U.S. crude oil rose by 0.51%, to $64.92 per barrel. Brent was up to $66.74 a barrel on the day. This is on hopes that a trade agreement could boost the global economy outlook.
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IAEA chief warns Israel against striking nuclear facilities
According to an interview that was broadcast on Monday, the chief of the International Atomic Energy Agency Rafael Grossi stated that Iranians warned him about a possible Israeli strike on Iran's nuclear facilities. This could lead Iran to become more determined to develop a nuclear weapon. Grossi stated in the interview published on the Jerusalem Post's website and broadcast on i24 TV on Sunday that a strike could have a compounding effect. It would solidify Iran's resolve - I say this plainly - either to pursue obtaining atomic weapons or to withdraw from the Treaty on the Non-Proliferation of Nuclear Weapons. The Jerusalem Post reported that Grossi doubted Israel's ability to strike Iran's nuclear sites. Grossi, speaking to the Jerusalem Post, said that Iran's nuclear program is "wide and deep". To disrupt them, it would take overwhelming and destructive force. Tehran and Washington recently held nuclear talks, mediated by Oman. Esmaeil baghaei, spokesperson for the Iranian Foreign Ministry, said that Iran will present a counter-proposal to the United States through Oman in response to an offer from Washington which Tehran finds "unacceptable". Last week, U.S. president Donald Trump claimed he warned Israeli Prime Minister Benjamin Netanyahu against taking actions that might disrupt nuclear negotiations with Iran. Trump told reporters at the Oval Office: "I told him that this was not appropriate to do now, because we are very close to finding a solution." "That could all change at any time." Trump and Netanyahu will likely speak on the phone Monday.
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South African students combat eco-anxiety with the help of water tests
South Africa has high levels of pollution in its water Citizen water-testing spreads across country Environmental anxiety can be addressed by citizen science By Kim Harrisberg They are part a growing group of citizen scientists who collect water samples throughout the country in order to monitor pollution, and brainstorm on what can be done. Zeenat RAMDHARIE, 19, is a student of environmental science, geography, and development studies at Independent Institute of Education (IIE MSA), a private institution where the testing initiative has been launched. She said, "When more people join together to find these (environmental issues), things can be achieved." As she stood on the bank of the Wilgespruit River, a tributary of a transboundary, shared river by South Africa Botswana, and Mozambique. IIE MSA launched its Water Quality Monitoring Initiative (late May) to provide students in South Africa with the necessary tools and training to monitor freshwater ecosystems. IIE researchers say South Africa's rivers and waterways are threatened by pollution from mining, agriculture, industries, and poor wastewater management. All of these things harm biodiversity. According to the United Nations, about one-third (33%) of rivers in Africa and Latin America, as well as Asia, are severely polluted, which threatens human health, food safety, and ecosystems. According to the U.S. Environmental Protection Agency, climate change affects water through flooding, droughts, and increasing temperatures that heat up water bodies and encourage harmful algae growth. Students can win cash prizes by participating in the IIE MSA Water-Monitoring Initiative, which runs for three months. The initiative encourages students to collect and analyze data to determine how to maintain or improve water quality. Vanessa Stippel is a lecturer at IIE MSA in environmental science. She said, "We're interested in how citizen-science can lead to advocacy or action." She said that when people feel invested in the project, they will be more inclined to want to share their knowledge with others. FIGHTING ECO ANGST According to a policy paper by Earthwatch Europe, low-cost monitoring tools are able to help citizen scientists collect information, especially when government monitoring is absent. Kyle Kumst is a student at IIE MSA studying environmental science, geography and development studies. He said that the water testing allows him to "connect with nature once again". Stippel is aware of how citizen science helps combat climate anxiety and apathy in her students. "Climate Change is such a huge concept that you feel powerless." "We don't even know where to begin," she said. A report released in May by the U.N. Children's Agency UNICEF and consulting firm Capgemini found that more than two thirds of youth worldwide are worried about climate change. Stippel said, "Anytime you get out in nature, the problems become more granular and you can take action." In a study published in Frontiers in Environmental Science in Feburary, 48% of participants in citizen science environmental projects reported less stress and anxiety than before they participated. ACCOUNTABILITY Linda Downsborough is the head of environmental sciences at IIE MSA. She slowly wade up the Wilgespruit River with a large net before finding shallow water. She then turned her back on the river flow, stomped the gumboots and continued her journey. Downsborough said, "You want whatever you kick up by stomping to flow into the net." After two minutes Downsborough looked into her net. She pointed out small sluglike creatures. After returning to the riverbank, Downsborough collected her findings and poured them into a container with her students to help identify the macroinvertebrates. The miniSASS (miniStream Assessment Scoring System) assigned a score to each organism in order to determine the quality of the water. The results will be displayed on an online map in order to identify polluted areas. Downsborough, along with her team, encourages citizen scientists to test other water-testing kits such as Freshwater Watch or WaterCAN. These tests can detect a variety of pollutants like excess nitrates and excessive phosphates. Activists can use the findings to mobilize for government action by uploading them online. WaterCAN and other civil society organizations released a report in April on the Umbilo River, revealing pollution including high levels E. coli bacteria. Based on their findings, they called for urgent repairs to infrastructure. The report stated that "Civil Society must continue to push accountability, create awareness within communities and build actions through citizen science." The eThekwini Municipal Water and Sanitation Department in Durban acknowledged receiving questions about the report but had not responded to a comment request by publication time. GroundTruth, a consulting firm that developed the miniSASS kit and trains citizen scientists, including more than 1,000 young people in KwaZulu Natal, is a company that helps train environmental consultants. Early June, Downsborough and Stippel gave a presentation on their research about public participation at the Citizen Science for Water Quality Conference held in the Netherlands. The IIE MSA initiative for water monitoring will be expanded across schools and campuses next year.
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What is the High Seas Treaty for protecting world oceans?
While many countries have taken steps to protect vast, ungoverned areas of the oceans around the world, their High Seas Treaty has yet to come into force. The U.N. Oceans Conference, which is taking place in Nice this week, hopes to change this. What is the High Seas Treaty? Signed in 2023, the treaty provides a legal framework to create marine protected zones on the “high seas”, or ocean areas beyond national jurisdiction. Less than 3% are currently protected, despite the fact that the oceans cover more than two thirds of our planet. The treaty includes 75 points that cover areas like protecting, caring for, and ensuring responsible usage of marine resources. It also contains a provision requiring environmental impact assessment of any economic activity in international waters. The treaty also seeks to ensure that every country has an equal and fair access to ocean resources. Officially, it's called the Biodiversity beyond National Jurisdiction Treaty. On Monday, French president Emmanuel Macron announced that 50 countries have ratified the agreement, and 60 are needed to make it effective. In addition to the High Seas Treaty and a U.N. biodiversity agreement for 2022, countries have agreed to conserve 30% of their territorial water. WHY DO WE REQUIRE AN OCEAN TREATY? The oceans are vital to coastal economies, supporting them through tourism, fishing and other activities, such as shipping, mining and offshore energy. The oceans absorb about one-third of the carbon dioxide (CO2), the main gas that drives climate change. Phytoplankton in the oceans provide half the oxygen on the planet. Marine life is struggling now, and the human industry and development is almost entirely responsible. Scientists at the International Union for Conservation of Nature say that more than 1,500 marine plants and animals face extinction. This number is likely to increase due to pollution, overfishing and ocean acidification. Deep-sea mining of rare-earth metals may also pose a threat to the ocean ecosystems in the coming years. Macron will urge countries in Nice to postpone seabed exploration until researchers have a better understanding of deep sea ecosystems. Scientists worry that governments may try to alter ocean chemistry in order to increase its ability to absorb CO2. This scenario could limit global warming, but researchers warn that it could have unintended effects. What are the next steps for the Treaty? The treaty is still 10 signatures short, according to Macron's announcement on Monday that 50 countries have ratified it. After 60 countries ratify the treaty, it will come into effect 120 days later. The next step is to set up the institutions and committees that will implement the treaty. Signatories are expecting to hold their first conference in a year. The United States, under the current president Donald Trump, is not expected ratify this treaty despite its participation in the original negotiations. What else is happening at the U.N. OCEANS Conference? At least 55 heads-of-state, business leaders, and civil society groups are expected to attend this five-day event. This week, in addition to discussions on the progress of the treaty, it is expected that delegates will also discuss overfishing and water pollution, as well as other threats to marine wildlife. Ocean-related financing is far behind other areas of sustainable investment. Ocean-related expenditures totaled $10 billion for the five-year period 2015-2019. The U.N. estimates every year that at least $175 billion will be needed for marine protection. The last U.N. Oceans Summit was in Lisbon, co-hosted with Kenya in 2022. The next summit, which will be co-hosted jointly by Chile and Korea in 2028, has been set. Virginia Furness is reporting, Katy Daigle is editing and Hugh Lawson is producing.
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BlackRock says antitrust claims are "unprecedented" and "unsound".
BlackRock's attorney called Republican-led state antitrust claims "unprecedented and unsound" on Monday, and claimed that they failed to demonstrate how firms' involvement in industry climate groups affected market competition. Gregg Costa, an attorney with Gibson Dunn, spoke about the antitrust lawsuit brought by Texas and other states against BlackRock. The result could have major implications on how companies that together manage $27 trillion in passive and active funds manage their investments. States claim that the climate activism of fund firms pushed coal companies to cut production and increase utility bills. The companies that continue to hold fossil fuel stocks say their proxy votes have hardly changed, and there is no proof they pressured companies to reduce production. Brian Barnes, an attorney for Cooper & Kirk and speaking on behalf of the states said that even bringing environmental issues to attention could have a positive impact. Barnes stated that "jawboning" by the defendants about decisions regarding market strategy could influence the output decisions of the coal company.
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Dollar edged down, stocks rise as US-China discussions in focus
The dollar fell on Monday as the United States and China began talks in London to settle a trade conflict between their two largest economies. The trade dispute has now expanded to include restrictions on rare earths. This could cripple global supply chains and slow growth. The talks will need to continue for a while before we can decide if there is any progress. Most investors are still hopeful for positive results, said Peter Andersen of Andersen Capital Management. Wall Street saw the S&P 500, Nasdaq and the S&P 500 Tech sector all rise. The Dow fell modestly, with weakness at Travelers and McDonald's. Morgan Stanley downgraded McDonald's to "equal weight" rating. The Dow Jones Industrial Average dropped 164.43, or 0.38 percent, to 42 598.44. The S&P 500 rose by 4.70, or 0.08 percent, to 6,005.06, and the Nasdaq Composite gained 91.29, or 0.47 percent, to 19,622.33. The MSCI index of global stocks rose by 1.56 points or 0.17% to 893.52. This was the fifth time in six that the index had gained consecutively. The STOXX 600 Index fell 0.08% in Europe. The U.S. Dollar fell against most major currencies Monday as caution in anticipation of trade talks offset optimism about a better than expected U.S. Employment Report on Friday. The U.S. economy data revealed that wholesale inventories in April increased amid a stockpiling in prescription medications in anticipation of tariffs by the Trump administration. Investors will also be watching Wednesday's U.S. Inflation data, which may change expectations about the timing of rate cuts from the Federal Reserve. According to LSEG, the market currently prices in a 62% probability of a rate cut by at least 25 basis point at the central banks September meeting. Fed officials are in an "all-out" period before the 18th of June policy decision. The dollar index (which measures the greenback in relation to a basket of foreign currencies) fell 0.04%, reaching 99.07; the euro rose 0.11%, hitting $1.1407. U.S. Treasury Sec. Scott Bessent will be joined by Commerce Sec. Howard Lutnick, and Trade Rep Jamieson Greer to represent Washington at the talks with China. U.S. president Donald Trump announced this in a post on social media. China's Foreign Ministry announced Vice Premier He Lifeng would be in Britain to attend the first meeting of China-U.S. Economic and Trade Consultative Mechanism. The yields on U.S. Treasury bonds were not much different at the beginning of the week after the Friday jobs report drove yields higher. The yield on the benchmark 10-year U.S. notes dropped 1.8 basis points, to 4.492%. U.S. crude climbed 1.02% to $65.24 per barrel. Brent rose to $67.04 a barrel, up by 0.86% for the day. This was due to hopes that a trade agreement could improve the global economy outlook.
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Gold gains in the spotlight of US-China trade talks
The gold price edged up on Monday as a result of a weaker dollar. Market participants were also keeping a close watch on the ongoing U.S. - China trade talks. Gold spot rose 0.3%, to $3320.15 per ounce at 0956 ET (1356 GMT), from its previous session low of over $1,300. U.S. Gold Futures dropped 0.1% to $3341.90. The U.S. Dollar Index remained low, making the greenback price of bullion more affordable for holders of other currencies. Senior U.S. officials and Chinese officials will meet in London on Monday to discuss the tit-fortat tariffs that each country has imposed this year, along with other restrictions. Last month, both sides agreed on a temporary pause to provide some relief to investors. Bart Melek is the head of commodity strategy at TD Securities. I think that a weaker economic environment, likely rate cuts, and a lower risk appetite are driving people into gold. "And, of course, expectations of higher inflation." Russia also said its forces had gained control of additional territory in the east-central region Dnipropetrovsk of Ukraine, where it said the fighting was partly intended to create a "buffer area." Gold becomes more appealing during times of geopolitical or economic uncertainty. Gold is also a non-yielding investment, so it tends to do well in low interest rate environments. Investors are also awaiting the U.S. Consumer Price Index data, due Friday, in order to gauge the economy and predict Federal Reserve rate cuts. The data released over the weekend shows that China's central banks added gold to their reserves for the seventh consecutive month in May. Spot platinum rose 3.1% to $1.205.01, its highest level since May 2021. Silver spot rose 1.3%, to $36.41 an ounce. Palladium rose almost 3%, to $1,077.59. (Reporting by Sarah Qureshi in Bengaluru; Editing by Sharon Singleton)
Canada's Allied Gold may look into options for power supply at Sadiola Mine
In an interview with its CEO on Monday, Allied Gold said it could consider other options for a deal to supply power at its Sadiola Mine in Mali due to the surge in gold prices. In February, the gold miner had signed an agreement with UAE-based Ambrosia Investment to give Ambrosia Investment a 50% stake of the mine for the installation of a new system which would have reduced the costs. Ambrosia was supposed to pay Allied Gold $500 million and $250 million upfront in cash.
The deal has not yet closed.
Peter Marrone, CEO of Allied Gold, said that the deal could close in June. If it doesn't, then the company has other options. Marrone stated that "our position in the country along with gold prices has changed dramatically." "The world is different since we made the deal."
Gold prices are up nearly 30% so far this year and reached a record of $3,500.05 an ounce on the 22nd April.
Ambrosia Investment didn't immediately respond to an inquiry for comment.
Marrone stated that the world of power solutions has changed drastically for the company since Allied Gold signed a mining convention with Mali's government last year. Mali, Africa's largest gold producer, wants to increase revenues from the mining industry. The government has stated that it believes the current arrangement is unfair, and foreign multinationals are required to comply with their demands in order to continue operations. Barrick Mining is another Canadian gold miner who has refused to sign Mali's mining code. Allied Gold stated that it was pragmatic in its approach to settling the dispute with the government.
Marrone stated, "We examined how we could best deliver returns to investors and decided to take action on the basis of cooperation and support." Allied Gold began its dual listing Monday at the New York Stock Exchange. The company was already listed on Toronto Stock Exchange.
(source: Reuters)