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Lebanon's Health Ministry says eight people were killed by Israeli airstrikes on a highway south of Beirut.
Eight people were killed by Israeli airstrikes on a highway south Beirut on Wednesday, Lebanon's?health?ministry? said, as the conflict between Hezbollah, Israel and Lebanon continued, just before a third round U.S.-mediated negotiations between Lebanon and Israel. Hezbollah, backed by Iran, and Israel have been exchanging blows, despite the ceasefire announced last month through U.S. mediation. Hostilities are mostly focused in southern Lebanon, where Israeli troops occupy a self declared security zone. Security sources said that the three separate airstrikes targeted vehicles along the coastal highway, around 20 km (12miles) south of Beirut. According to the Lebanese Health Ministry, two of the victims were children. The Israeli military did not immediately respond to an inquiry for comment. Israel's military has announced that it is targeting Hezbollah in southern Lebanon and told residents to leave six towns where they intend to act against the group. Reporting by Menna Alaaedinn, Nazih Osseiran and Jana Choukeir in Beirut. Writing by Tom Perry. Editing by Toby Chopra, Ros Russell and Toby Chopra.
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European stocks are rising as sentiment improves, but oil and government bond yields remain elevated
European'stocks' rose on early Wednesday trading as markets recovered from previous session losses. The price of 'oil also declined from recent highs, even though hopes for a peace agreement between the United States and Iran dwindled. Wall Street stocks fell after U.S. consumer price data showed that energy costs increased the most since three years on Tuesday. The inflation data showed the economic impact of Israel and the United States' war against Iran. This pushed up government bond yields as traders believed that it would increase the likelihood that central banks might be forced to raise interest rates sooner than they expected. The market sentiment was impacted in Asian trade. However, by 0939 GMT there were signs of a recovery. Europe's STOXX600 rose 0.4% for the day. London's FTSE 100 rose 0.3%. The 10-year U.S. Treasury yield is still at 4.4629 percent, its highest level since late March. Japan's 10-year and 5-year government bond yields reached new records overnight. The oil prices have dipped a bit, but remain high. Brent crude is at $107.3 per barrel, down by 0.4% for the day, and West Texas Intermediate is at $101.45 per barrel, down by 0.7%. International Energy Agency has said that the Middle East war will have a devastating effect on oil production. Both sides have not made any progress in negotiating an agreement to end the?hostilities. Amelie Derambure said that markets were in a "wait-and see" mode, as they waited for the U.S. president Donald Trump to meet with his Chinese counterpart Xi Jinping later this week in Beijing. She said that the preferred scenario would be for China to influence the ceasefire in Iran or peace, but this is considered unlikely. This would be more of a positive surprise than the current market scenario. Trump stated on Tuesday that he does not believe he will need China's assistance to end the war against Iran. Some ships were able to cross the Strait of Hormuz. It was reported on Tuesday by both Iraq and Pakistan that they had made deals with Iran for the shipping of oil and natural gas liquefied from the Gulf. This demonstrated Iran's control over energy flows in the strait. Derambure stated that investors now expect Strait of the Hormuz to open during the summer. Energy prices have risen in Europe and America, which has helped boost corporate profits. However, it is putting pressure on consumers. U.S. earnings were also boosted by the technology companies' investments in artificial intelligence. "There is still this belief that equities - except in a recession but that's on no one's radar for the moment - are better positioned to resist, or to perform decently, in this higher-inflation ?stronger-nominal-growth environment," Derambure added. As Prime Minister Keir starmer's power began to wane, gilt yields in Britain soared. The 10-year yield at 5.08% is down from its previous session's high. The dollar index is at 98.566, which is up 0.2% for the day. The euro is down 0.3% to $1.1699. The Japanese yen is at 157.88 after briefly rising on Tuesday due to "rate-check" speculation. This is often seen as an indication of a possible intervention. Gold prices fell 0.4% in the last 24 hours, to $4,694 per ounce.
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Tinubu calls for global financial overhaul, as debt costs are limiting spending
Bola Tinubu, the President of Nigeria, said that Nigeria will spend $11.6 billion in 2026 servicing its debt, which is nearly half of the projected revenue for government. He called for a reform to a global financial structure he claimed penalized African borrowers. He said that debt-servicing costs were crowding out expenditures on infrastructure, health care and education despite the government's tax reform aimed at increasing revenues in Africa’s most populous nation. Data from the Debt Management Office shows that Nigeria will spend $5.15 billion servicing debt by?2025. Tinubu, speaking at the Africa Forward Summit, held in Nairobi on Tuesday, said that high borrowing costs, limited access to long term finance, and other factors were causing African economies to be structurally disadvantaged. The summit was co-hosted in Nairobi by France and Kenya, and brought together leaders from over?30 different countries. "Each dollar that leaves the treasury for punitive rates of interest is a dollar that didn't go to?our digital industries, steel industry, textile mills or agro-processing facilities," he added. Tinubu, who is now in his third term in office, and is aiming to be re-elected in January 2027 has implemented Nigeria's most significant reforms in decades. He has scrapped costly fuel and electricity subsidies, devalued the currency, and overhauled the tax system, all in an effort to stabilize an economy that was hit by high inflation, shortages of foreign exchange, and external shocks. He said that the "painful and homegrown" reforms stabilised macroeconomic indicator and raised?investor confidence. He added that gains are being undermined by the global financial system that views African sovereigns as high-risk borrowers and drives up interest rates. The Nigerian Economic Summit Group, a group of analysts led by Nigerian economists, said that debt service remains a major vulnerability for the nation. Tinubu called on Africans to be more prosperous and for their growth and development, including through cheaper financing. He called for a reduction in illicit financial flows, and for greater industrialisation support. Africa, he said, accounted for less than 2 percent of global manufacturing. He said, "Nigeria does not ask for charity." "We are demanding a financial structure that allows Africa to industrialize and refine its crude oil, produce its own pharmaceuticals and compete on the global market.
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Gold falls as US inflation data weighs down on Fed rate-cutting hopes
Gold prices extended ?losses on Wednesday as uncertainty over ?the Middle East conflict and stronger-than-expected ?U.S. ?Inflation data dampened hopes for Federal Reserve rate reductions, as attention focused on the upcoming summit between U.S. president Donald Trump and Chinese counterpart Xi Jinping. As of 0752 GMT spot gold was down 0.3% at $4,701.98 per ounce. This is a further retreat from the three-week high reached in the previous session. U.S. Gold Futures for?June Delivery gained 0.6%, to $4.712.70. The markets have begun to price in that the Fed could hike rates as early as the end the year. Kyle Rodda is a senior market analyst at Capital.com. Data revealed that U.S. consumer inflation rose further in April. The annual rate posted its biggest gain in three year, further reducing the hopes that the Fed would cut interest rates in this year. According to CME Group’s FedWatch, traders have priced in a rate hike this year. The tool shows that the market now sees a 30% probability of one by December. Investors are awaiting the Producer Price Index to be released later today, as well as the meeting between U.S. president Donald Trump and Chinese 'President Xi Jinping, which is scheduled for Thursday and Friday. Trump said on Tuesday that he doesn't think he needs China's assistance to end the Iran war, even though hopes of a lasting deal are fading and Tehran is tightening its grip on the Strait of Hormuz. Indian 'gold and silver futures' soared after New Delhi increased import tariffs from 6% to 15% as part of its efforts to reduce overseas purchases and ease pressure on the country’s foreign exchange reserves. Silver spot fell by 0.2%, to $86.34 an ounce. It had earlier reached its highest level since the 11th of March. Palladium rose 0.5% to $1,498,47, while platinum fell 0.4% at $2,118.13. (Reporting and editing by Subhranshu sahu, Rashmi aich, and Pablo Sinha from Bengaluru)
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Minutes show that Sweden's Riksbank is vigilant about inflation, but has not raised rates yet.
The central bank of Sweden can wait until it has a better picture to adjust policy. Erik Thedeen, Governor of the Riksbank, said that "the focus is on inflation risks and we will be monitoring closely any signs that 'inflationary trends are spreading more widely in the economy." It is too early to tell if a "change of direction" is required, but we are "ready to change our stance". Oil prices have risen dramatically due to the war in the Middle East. There is a growing consensus on the impact this will have on the global economy. Currently, conditions in Sweden are benign. As expected by the analysts in a poll, Riksbank held its policy rate at 1.75% on May 7. The growth in Sweden's first quarter was weak, and the annual underlying inflation rate, excluding energy prices, was at its lowest level in 30 years, 0.0% in April. This was partly due to the temporary reduction in VAT on food. Sweden is an exception in Europe because of its low inflation.
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Ukraine reaches Russia's energy goals after US-brokered truce ends
Ukraine resumed drone attacks on Russia’s oil refineries on Wednesday, just two days after the three-day ceasefire that was proposed by U.S. president Donald Trump had expired. As the four-year conflict continues, Ukraine has targeted Russian oil infrastructure to reduce Moscow's revenue from the energy industry and dent its military strength. The Russian defence ministry announced on Wednesday that two-hundred and eighty-six Ukrainian drones were intercepted, destroyed and destroyed over Russian regions. Authorities in southern Krasnodar said that a 'drone fragment' fell near an industrial facility and caused a fire. The village of Volna is where the oil products terminals at Taman Port are located. Authorities in the region of Astrakhan, Russia, said that debris from a separate Ukrainian attack on a drone caused an?incident at a gas-processing plant which also produces fuel. Igor Babushkin wrote on Telegram that "all enemy aircraft have been either shot down or neutralized by electronic warfare systems." The debris started a fire. Babushkin said that there were no injuries or casualties and the fire is expected to be put out 'within hours. The plant is located 1,675 km from the Ukrainian border. Sharon Singleton, Editor and Reporter (Reporting).
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Australia shares drop as CBA drops 10% on earnings missed, housing tax changes
Australian shares fell on Wednesday as investors sold Commonwealth Bank and other lending institutions. The?top?bank's missed profit heightened fears that Canberra's proposed curbs to tax incentives for property-investors could slow down mortgage demand. The S&P/ASX 200 closed 0.5% lower, at 8,630.40. This brings its overall decline to 2.8% in the last four sessions. Australia's biggest mortgage lender Commonwealth Bank plunged 10.4%, posting its weakest ever session. The bank erased a market value of?A$29.93 billion ($21.66billion) after an earnings missed and new Middle East-related provisions bleakened the outlook for the banking industry. The financials index is down 4% at a five-month low. The budget proposes to limit negative?gearing on newly constructed homes and replace the 50% capital gain tax discount with an inflation indexation. These changes are intended to shift?investor demand from existing properties toward new housing. Reduced tax incentives to property investors could slow the buying and selling existing homes. Dilin WU, Research Strategist, Pepperstone, says that the tax burden for most long-term investors will be higher under the new regime. This anticipated behaviour adjustment could impact rate-sensitive sectors of the financial services sector, and cause a wave?of prereform sales as July 2027 approaches. These stocks are owned by retirement funds and retail investors for the yield and franking credit. You can change the marginal buyer by changing the calculation of after-tax returns. It's a slow but real burn." In contrast, the real estate sector gained 1.2% on optimism that the budget's?first home buyer support would help to drive demand for new construction. Mirvac and 'LendLease' rose by 3.9% and 1,3% respectively. The copper price has boosted the miners to a 2.1% increase, a two-month high. BHP and Rio Tinto, two mining giants, jumped by 2.9%?and 1.9%?to new record highs. S&P/NZX50, the benchmark index for New Zealand's stock market, fell 0.1% at 13,063.06 following a budget that was tight on spending.
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Asia stocks turn green as AI cheer trumps Iran, inflation gloom
After an initial selloff, Asian stocks recovered their footing on Thursday. This was helped by a rebound in Korean shares. MSCI's broadest Asia-Pacific share index?outside Japan rose 0.3%, after a decline as high as 1%. Japan's Nikkei rose by 0.8% while S&P500 e-minis futures gained 0.2%. The Korean stock market fell by as much as 3.2 percent on the news that Samsung Electronics failed to reach an agreement with its union on pay. However, the shares recovered to close at a record high of 2.6% on the back of reports the government is trying to control the situation. In recent weeks the Korean market has exploded, breaking records on an AI-led rally. Some traders believe that this was due for a correction. Nomura analysts wrote in a report that "Robust AI exports from South Korea, and to a lesser degree, Japan, Singapore, and Malaysia, are buffering energy price shock." U.S. president Donald Trump stated on Tuesday that he did not believe he would need China's assistance to end the conflict with Iran. This was ahead of his meeting later this week with President Xi Jinping. Morgan Stanley stated in a research report that the U.S. China summit could lead to moderate index gains if the ceasefire continues. The firm also raised its price targets for several Chinese benchmarks. The report noted that earnings were improving, supply chain dominance was growing and the yuan was stronger. The bank upgraded its recommendation for developed market equity to overweight. The bank said that the Middle East conflict has created a wide range of returns, but fundamentals on the micro- and macro-level are generally supportive. "AI and capex related AI will remain relevant across asset classes, and regions." Investors expressed scepticism about the meeting between Trump and Xi leading to a significant improvement in relations. Phillip Wool, Chief Research Officer and Head of Portfolio Management at Rayliant Investment Research, said: "We have seen this movie before.?And we know that it won't end with an agreement that resets U.S. China relations." "This creates a low bar for success. As long as Trump can get along with Xi and the trade detente is maintained, this should be enough for both sides to consider this meeting a success." Brent crude fell 1.4% to $106.32, ending a three-day rally. Since late February when U.S., Israeli and Tehran strikes against Iran and the effective closure of Strait of Hormuz by Tehran rattled supply, oil prices have remained at or above $100 per barrel. Samsung Electronics' shares in Seoul fell as much as 6.1% on Wednesday after the electronics giant failed to reach an agreement with the South Korean labour union. This set the stage for over 50,000 employees to strike. Stocks rose by 1.8% later after South Korean PM Kim Min-seok stated that the government would support any talks to avoid a strike, Yonhap News Agency reported. The S&P 500 fell 0.2% and the Nasdaq Composite dropped 0.7% on Tuesday after U.S. Consumer inflation rose by the'most in three year in April. This increased the risk that the Federal Reserve would be forced to increase rates sooner than expected. According to CME’s FedWatch Tool, the markets have priced in any possibility of a Fed rate cut this year. Meanwhile, expectations for an increase?of atleast 25 basis points?at the December meeting are now over 35%, up from 22% earlier that week. The yield on U.S. Treasury bonds 10-years was down by 1.0 basis points to 4.459%. This is a slight retreat after reaching its highest level since July. The U.S. Dollar Index, which measures the strength of the greenback against a basket six major counterparts, held steady at 98.369 and is on course for its third straight day of gains. The dollar was 0.1% higher at 157.73 yen after the Japanese currency briefly surged on Tuesday due to "rate-check" speculation. This is often seen as an indication of intervention. Sources claim that Tokyo intervened to stop the decline of the yen in the last two weeks. Early European trades saw pan-regional futures up 0.9%. German DAX Futures climbed 0.8%, and FTSE Futures gained 0.6%. Gold was down by 0.1% to $4,708,24. Bitcoin was up by 0.5% to $81,110.13, and ether was up 0.8% at $2,301.66. (Reporting and editing by Shri Navaratnam, Sam Holmes, and Gregor Stuart Hunter)
Nippon Steel to earn $1.4 billion in fiscal year profit, as one-off items fade
Nippon Steel is Japan's largest steelmaker. On?Wednesday, it said that its net profit for the fiscal year ending in March will?increase dramatically to a?220 billion ($1.4 billion). This is because the effects of one-off losses are fading from its results.
Nippon Steel also reported a 95% decline in profits for the previous financial year, to 17.2 billion Japanese yen.
In February, the company announced that it "expected" to lose 70 billion yen in the fiscal year ending in March. This was due to an explosion at a blast-furnace and to costs related to the U.S. Steel transaction.
Nippon Steel said it was able to "turn a profit" due to increased profitability, cost reductions, and gains in inventory and foreign exchange value, because raw material prices rose while the yen remained low.
It said that it expects to suffer a loss of around 50 billion yen due to Middle East risks in the first quarter. However, the company added that its impact on full-year earnings 'wasn't yet possible to estimate.
JFE Holdings, a Japanese steelmaker, and Kobe Steel warned earlier this month that the U.S. and Israeli 'war on iran' could lead to a rise in commodity prices and fuel shortages.
JFE Holdings (Japan's second largest steelmaker) said that it was working to raise the price of steel in response to rising raw materials prices.
(source: Reuters)