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Oil prices increase as stocks fall on new Iran attack
European stocks and U.S. Futures both fell slightly on Wednesday, as oil prices rose in a third session. This was due to the escalation of hostilities in the Gulf following a halting of U.S.-Iran talks. Early trading saw the STOXX 600 Index in Europe fall 0.4%, while U.S. S&P 500 futures slipped a mere 0.1%. In Asia, the AI bull market continued unabated, with stock indexes reaching record highs in Japan, Taiwan, and South Korea. The ceasefire agreement between the two parties was again put to the test when an Iranian missile struck Kuwait's airport and the U.S. military attacked sites near the Strait of Hormuz. Iran and the United States announced last week that they had reached an agreement to end the war. However, they have not signed anything. The Organisation for Economic Co-operation and Development (OECD) warned that if the conflict continues into next year it could cause inflation to rise sharply. Brent crude, the global benchmark, rose 2% to $98 per barrel. Chris Weston is the head of research for Pepperstone in Melbourne. Things are more precarious now. It seems that fewer people are willing to negotiate and we see some of these bets unwinding. The Iran crisis has hit the European stock markets harder than those in the United States, because Europe is an energy-importing country and there are fewer AI companies. The U.S. Dollar Index, which tracks currency values against each other, was flat, at 99.31. The dollar was on edge for currency traders, though, as it rose to 160 yens, a level where the market is prone to panic over possible intervention by Tokyo authorities. The dollar dropped to 159.65 Japanese yen. The Finance Minister issued a new warning on Wednesday due to the fall of the yen. AI HYPE ROLLS OUT The artificial intelligence theme in the tech sector seems to be immune to war concerns, and Wall Street indexes made small gains on Tuesday. They traded at record highs. Marvell Technology shares soared by 32.5%, reaching a new record high. This was after Nvidia's Jensen Huang referred to the chipmaker as the "next trillion-dollar company". SoftBank, Japan's largest company by value, has risen above Toyota thanks to AI. Matt Britzman is a senior equity analyst with Hargreaves Lansdown. He said, "The market remains upbeat despite the oil prices rising as investors attempt to understand what's happening in the Middle East." SpaceX, which has a major focus on AI, plans to raise $75 Billion in an IPO. This is according to a person familiar with the situation. The survey data for the U.S. service sector and private payrolls are due on Wednesday. The markets, who had anticipated rate cuts prior to the Iran War, have priced in 18 basis points worth of rate increases for this year. The market has almost fully priced in a hike in Europe this week, following data that showed inflation increased further last month. Traders see about a 75 percent chance of an increase in Japan in June.
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Sberbank, a Russian bank, says the rouble must weaken to US$90 per rouble for commodity exporters 'to breathe'
By Gleb?Elena Fabrichnaya and Gleb Bryanski MOSCOW, 3 June - A'strong rouble' is hurting Russian commodity exporters and reducing profits from higher oil prices. The rouble needs to drop to 90 dollars per U.S. to allow companies to breathe, said Alexander Vedyakhin, a top Sberbank executive. Sberbank has raised its forecast of commodity exports by 27% this year to $491 billion. This is based on a surge in prices caused by the war in the Middle East and the closing of the Strait of Hormuz. Sberbank also projects that the average price of Urals blend oil in 2026 will be $10 to $15 more than the $59 per a barrel forecast by the government. Vedyakhin, however, said that the strong rouble is a major problem. "...We need to also talk about the strong currency, which places significant pressure on exporters. The strong rouble has a negative impact on exporters, and therefore, the budget. "The gains in dollars that companies get from higher oil prices will be offset in large part by the stronger rouble," said Mr. Yergin ahead of Russia's largest economic conference, which is taking place in St. Petersburg. In the last two months, the?rouble has gained a?12% increase to 71 dollars on the back of a influx of foreign currency generated by?Russian exports. Since the beginning of 2025, the Russian currency has appreciated by more than 55%. The strength of the?rouble has affected companies from oil majors, fertilizer producers, grain traders and farmers. Reporting by Gleb and Elena Fabrichnaya, Writing by Gleb Brianski Editing Andrew Osborn
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Copper falls from two-week highs as investors pause following rally
The price of copper eased on Tuesday as investors locked in profits after prices reached a two-week high. Meanwhile, uncertainty around a U.S. metal tariff limited losses. As of 0715 GMT, the benchmark 'three-month copper' on the London Metal Exchange had fallen 1.09% to $13,887 per metric tonne. On Tuesday, it reached a two-week high of $14,056, surpassing the $14,000 barrier. The Shanghai Futures Exchange's most active copper contract gained 0.37%, closing daytime trading at 106.380 yuan. ($15,712.51) per ton. This is lower than the 3-week high of 107.420 yuan, which was set during evening trade. As the deadline for the U.S. government to submit its report by June 30 approaches, tariff uncertainty has continued to drive prices up. The commerce secretary will update President Donald Trump about domestic copper markets including refined copper and refinery capacity. Trump?this Week amended tariffs on certain steel, aluminum and copper imports. But?traders? said that the changes had little direct impact on refined Copper while keeping the broader tariff risks in mind. The LME's tightening supply also boosted sentiment. A widening premium for Comex copper over that of the LME increased the risk of dislocation. Cash-to-three month copper discount The price of metal dropped to $4 per ton from $77 per ton on May 19 and increased as the number of cancelled warrants increased, indicating that more metal is being prepared to be withdrawn. A ?stronger-than-expected U.S. job openings reading also weighed on metals, supporting the ?dollar and reducing expectations ?of near-term U.S. rate cuts. Diplomacy between?U.S. Iran and the United States made little progress, and the Strait of Hormuz was closed while oil prices soared. Aluminium, zinc, lead, and nickel all fell by 1% on the LME. Tin, however, fell 0.45%. The price of aluminium on the SHFE fell by 0.22%. Zinc gained 1.17%. Lead rose 0.36%. Nickel lost 1.05%. Tin increased 1.03%. $1 = 6.7704 Chinese Yuan Renminbi (Reporting and editing by Dylan Duan, Lewis Jackson)
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The price of gold eases due to Middle East tensions, which lift oil prices and US economic data.
The price of gold fell on Wednesday as renewed hostilities erupted in the Middle East, pushing crude prices higher, and stalling U.S. Iran talks. Investors awaited upcoming U.S. Economic Data. Gold spot fell by 0.5%, to $4460.36 an ounce, at 0702 GMT. It had risen more than 1% the previous session. U.S. Gold Futures for August Delivery fell 0.7% to $4488.90. Gulf?hostilities erupted again, as the U.S. Military said that Iranian missile attacks against Bahrain, Kuwait, and?other targets in the region were either foiled or failed. U.S. Secretary of state Marco Rubio stated on 'Tuesday' that the negotiating team of President Donald Trump has not offered Iran relief from sanctions in exchange for the reopening of?the Strait of Hormuz. He also insisted that any relief of sanctions was linked to a?Tehran renunciation of its nuclear programme. The market is now examining the possibility that Trump's peace plan resolution may not be enough to keep this ceasefire in place with Iran, said Kelvin Woong, senior analyst at OANDA. "We could see a further increase in the price of gold if we continue to escalate." Oil prices increased by more than 1% in the last week, causing inflation fears and interest rate increases to rise. Beth Hammack, the President of the Cleveland Federal Reserve, said that if inflation continues to rise at its current rate then it may be necessary to raise interest rates. Investors will now be awaiting U.S. Nonfarm Payroll?data due later today, as well as the employment report that is due on Friday, to gauge the Fed’s monetary policy. Gold is often viewed as an inflation hedge, but it tends to lose appeal as a non yielding asset when interest rates are high. Silver spot fell by 1.1%, to $74.27 an ounce. Platinum fell by 0.5%, to $1.928, while palladium dropped 0.6%, to $1.361.75. (Reporting and editing by Subhranshu, Ronojoy Mazumdar, and Mrigank Dahiwaka in Bengaluru)
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OVO Energy will pay OVO Energy $14 million to settle a probe, according to the UK regulator
The British energy regulator announced on Wednesday that OVO Energy had agreed to pay approximately PS10.4 million ($14million) as settlements after an investigation found that 'failures between 2018 and 2020 could have placed prepayment meter customers at risk. Ofgem, the regulator, said that the settlement included a PS7-million payment to a voluntary fund and a PS3.4-million credit for customers of the energy provider, instead of formal penalties or compensation. Cathryn scott, director of Ofgem's 'Market Oversight and Enforcement', said: "It's clear that OVO failed to support vulnerable PPM customers and they are right to have taken action 'to improve their processes." OVO apologized in a press release for the fact that some of its historical processes fell short of standards. We are committed to providing our customers with the best possible service and safety. However, we recognize that there are areas in which we could improve. A spokesperson stated that we have strengthened our policies and systems. Separately OVO?is paying around PS1.1 million in compensation to customers from Scotland's?Highlands?and?Islands?after a review revealed that some rural households lacked access to proper engineer support between?January?2022 and April?2024. The German utility group E.ON is set to acquire the company, resulting in one of?UK?s largest energy suppliers. Ofgem has taken similar action against British Gas. British Gas agreed to pay PS20million in compensation for installing prepayment meters without consent in homes.
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India's antitrust body takes aim at beauty pageants, Mrs India Inc.
India's antitrust agency is investigating Mrs.?India Inc., an organiser?of a beauty pageant for?married?women?that sent winners to global events. It accuses it of abusing their position and setting burdensome contracts for participants. The Competition Commission of India is conducting its first investigation into allegations of wrongdoing made by some of the largest companies in the world, including France's Pernod Ricard and India's Tata Steel. The focus is on a niche market that the regulator has described as "a market?for beauty pageants in India for married women" with the goal of sending the winners to major international contests. In an order issued on Wednesday, the CCI said that it had analyzed agreements submitted by one of its contestants and found "onerous conditions". Many contestants and winners are prohibited from competing in another beauty pageant for a period of five years, either as a judge or mentor. The CCI also added that "participants may not sign or accept any professional assignments or contract without the express written consent" of the company. A request for a comment from Mrs India Inc was not responded to. A COMPLAINT BY RUNNER-UP TRIGGERED CASE Mrs India Inc. claims to be the "most credible" beauty contest for married women in India. It also says that it is "associated with the most prestigious international beauty pagesants for married women". CCI stated that its case was triggered by a complaint filed by Rinima Agarwal. She is a 2024 "Mrs. India Galaxy", and also the runner-up. This allows her to represent India at the 2025 "International Mrs. Galaxy". In its review of these accusations, the watchdog stated that it had asked for 'comments and details about Mrs India Inc’s tie-ups by 2025,' but the company did not respond despite multiple opportunities. The watchdog also pointed out that another onerous contract term requires the pageant's winners and participants to "join hands with a social cause recognized and promoted" by Miss India Inc. Typically, the regulator will investigate for several months before issuing a final decision. (Reporting and editing by Clarence Fernandez; Aditya Kalra)
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Voestalpine expects a higher profit for the year as EU trade regulations boost steel
Voestalpine, an Austrian steelmaker, expects to see its core profit?increase in the coming year after reporting a?beat on Wednesday. The new EU safeguards are expected to boost performance. The Steel and Technology Group forecasts earnings before interest taxes, depreciation, and amortization between EUR1.60 and EUR1.85 (between $1.86 billion and $2.15 billion), for its financial year 2026/27, compared to the EUR1.49 bn recorded during the year up until March. The average EBITDA for the fiscal year 2026/27 was EUR1,76 billion, according to analysts polled by Vara. The dividend per share will also increase to EUR0.75 from EUR0.60 in the previous year. Since the beginning of 2026, the EU has imposed a carbon tax on imports with high emissions. It is now implementing a trade policy that will halve steel import quotas starting July 1. This is part of measures to protect local steelmakers from cheaper products coming in from Asia. Voestalpine, however, said that delays in energy projects for its heavy-plate segment would reduce gains made by its steel division.
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Mike Dolan: Wild stock is moving beneath a surface that appears to be calm.
Wild swings in stock prices could indicate a market that is in its final stages of a speculative frenzy. Wall Street's fear gauge is dozing. It may take some good news to get it moving again. The AI boom is accelerating and attracting more and more tech and chip names from around the world. Even companies with a market cap of more than $200 billion have seen a 20% to 30% one-day increase. Dell's stock soared by 32% after its disastrous results on Friday. Hewlett Packard Enterprise soared 28% Tuesday after its own earnings report. Marvell Technology gained 25 percent on a single positive comment from Nvidia's Jensen Huang. Software stocks experienced a series of sharp declines before staging equally impressive rallies in the last month. The overall volatility gauges should be "flashing" red. It's not a little bit. The Cboe Volatility Index benchmark, known on Wall Street as the "fear index", is currently snoozing below historical averages, and at its lowest point of the year. The calmness is deceiving. Adam Turnquist, a financial strategist at LPL Financial, compares the sleepy VIX to the Cboe VIXEQ which measures implied volatility for individual S&P 500 constituents stocks. The VIXEQ has returned to its highest level in April of last year, when tariffs caused a storm. The gap between these two indexes has increased by almost three times since the last decade. Turnquist stated that the divergence was largely due to historically low correlations between S&P 500 stock. "Significant earnings related reactions, both up and down; widening gaps in performance between AI laggards versus beneficiaries and other more idiosyncratic factors have contributed to an elevated dispersion within the index." The speculative purchase of call options on individual technology stocks rather than the index is also a factor in stoking volatility. Turnquist cautioned that the current background "could be vulnerable if correlations start to rise." This could lead to "dispersion trading" whereby index volatility is sold and single stock equivalents are bought. RE-CORRELATE Paradoxically, this re-correlation may not be caused by a new event, but rather by a convergence of positive news, such as economic and political developments. The dispersion is understandable on one level because the AI theme is concentrated in a small group of stocks that are hot, with winners and losers clearly visible, much like the Iran War jolts the sectors affected by energy prices and interest rate fluctuations. What if, despite the fear of robot displacement, the war ends? Oil prices fall. The AI boom spreads across the entire economy. The dramatic recovery in software stocks already suggests that fears of AI losers have been exaggerated. The job market shows little sign of disruption. Could a wave positive economic news reduce dispersion and push the VIX up in the process, if it were to occur? This is not your usual scenario: a calmer geopolitical situation, lower oil prices, or even broader AI gains can also reduce index volatility and dispersion. The interest rate markets could also play a role, especially if it stoked inflation. A rising VIX could act as a brake on the overall equity rally. This is important because the current calmness of the market provides a favorable backdrop for three major IPOs scheduled this summer, including SpaceX, Anthropic, and likely OpenAI. Three companies with a combined value of $3.75 trillion are targeting public listings that could raise $200 billion. The majority of deep dives on how the market will absorb the new equity influx, such as Alphabet's announcement this week that it would be investing $80 billion, are fairly optimistic. The focus is on index inclusions and passive fund demand. They also consider some weighting changes as the lock-up period ends. Successful debuts and the target valuations set the tone. The low volatility environment is also important, as it reduces the risks of pricing mistakes. A re-awakening fear gauge can make for an extremely bumpy summer if the herd suddenly moves in one direction. The opinions expressed are those of Mike Dolan a columnist at. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
Shareholders of Kone Lift support TK Elevator's $34 billion takeover plan
The Finnish?elevator manufacturer Kone announced on Wednesday that its shareholders had approved the planned $34 billion purchase of German rival TK Elevator. This will create the largest lift group in the world.
LSEG data shows that the deal announced with Advent International and Cinven in April is one of Europe's?"biggest takeovers" in recent years, and it is also the largest private equity sale in Europe since records began in 1980.
Kone said shareholders who controlled 74% of the voting power pre-committed themselves to support the deal.
After the shareholders meeting, CEO Philippe Delorme spoke at a press briefing. "Now we are working on the second step, which is to file with?the various regulatory authorities and bring?specific teams into one place to begin building the integration plan."
Kone, in April, said that it may take 12 to 18 month to complete the transaction.
The cash-and shares deal, valued at EUR29.4bn ($34.2bn) including debt, at the time it was announced, would propel Kone ahead of U.S. competitor Otis and create a European champ, as well as strengthen its presence in the Americas.
The final value of the deal is dependent on the fluctuations in the share price of?Kone.
Kone announced in April that it would pay EUR5billion in cash and issue an additional 270mn new class?B share, as well as take over TKE's EUR9.2bn net interest bearing debt.
Shareholders approved the issue of shares on Wednesday, giving Advent and Cinven a combined equity stake of approximately one third, 18% voting power and two seats in Kone's Board. Shareholders also elected Ranjan Sen, a managing director at Advent and Bruno Schick a co-managing Partner at Cinven to Kone's Board, subject to regulatory approval.
(source: Reuters)