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Stocks edge up, oil prices continue pullback on peace optimism
On Thursday, global stocks mostly maintained their gains - despite the fact that oil prices fell again due to optimism about a U.S. Iran peace deal. Meanwhile, it appeared as if there was no resolution for the Strait of Hormuz. The previous session's highs were maintained on?Wall Street. The?S&P500 was little changed and the Nasdaq composite rose 0.27%. Dow Jones Industrial Average increased by 0.12%. The STOXX Europe 600 index was down 0.37% after a 2.2% jump on Wednesday. MSCI's broadest Asia-Pacific share index outside Japan also hit a new all-time record. Last up 1.75 %. Japan's Nikkei surpassed 62,000 for first time after trading resumed following an extended holiday weekend. MSCI's All-Country World Index grew by 0.37%, trading at record highs. Samy Chaar, Chief Economist at Lombard Odier, said that while the Middle East situation was uncertain, "the market has taken notice" of this momentum. He said: "The oil price is now down from its peak, which relieves pressure on bond yields and yield curves. This is good news for the equity market and makes currencies move." Chaar said that a strong earnings season, coupled with a macroeconomic climate that is relatively robust, contributed to the positive mood on the market. TRUMP PROMISES A SHORT END TO THE WAR Sources and officials reported on Thursday that the United States and Iran are moving toward a temporary, limited agreement to end their war. The draft framework would stop fighting, but leave unresolved?the most contentious questions. Brent crude dropped almost 4%, to $97.38 per barrel. It had fallen nearly 8% Wednesday. Brent oil is still 40% higher than it was in late February, when the conflict started, despite the recent drop. Meanwhile, 10-year Treasury yields are surging, a sign of the pressure that high energy prices continue to place on the world economy. The 10-year Treasury yields fell by the last 2 basis points on this day to 4.334%. Nick Twidale said that the market is grappling with execution risk. "Both?in terms of if a deal has been finalised, and how quickly disrupted flow would normalize, even if they have." A spike in oil prices shook the global markets back in March, but a fragile truce and the prospect of a settlement have fueled a risky rally that has been fuelled since April by strong tech earnings. S&P COMPANIES SET TO ROBUST PROFIT GREENWICH S&P '500 companies are on track for their best profit growth in over four years. Meanwhile, Samsung, SK Hynix, and TSMC all posted record results, which have boosted the positive tone in Asia. Survey of economists indicates that investors are waiting for the U.S. non-farm payrolls data on Friday. Jobs should have increased by 62,000 in April after recovering 178,000 in March, according to a survey. The euro has been gaining ground on the currency markets. It last traded at $1.1773 The pound was up slightly at $1.3624, as UK local elections were in focus. The dollar index (which'measures U.S. currencies against six units) was a little lower at 97.85. The yen was in the spotlight after recent spikes prompted speculation on the market that Tokyo intervened in order to support the battered currency. The yen remained unchanged at 156.36 to the dollar after hitting a 10-week-high of 155.36 on Wednesday.
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Gold gains continue as US-Iran hopes for peace ease inflation concerns
Gold prices rose on Thursday for the third time in a row, as investors became more optimistic about a possible peace deal between the U.S. As of 9:08 am EDT (1308 GMT), spot gold had risen 1.1%, to $4,740.42 an ounce. This was after the metal reached a peak for two weeks earlier in this session. U.S. Gold futures increased 1.2% to $4.749.20. Bob Haberkorn is a senior market strategist with RJO Futures. He said that if the ceasefire holds and we are able to put this war to rest and return to business, gold could reach $5,000/oz. The?market just watches the Middle East situation, and the direction that the U.S. Federal Reserve looks at." U.S. president Donald Trump predicted that the war with Iran would be over quickly 'as Tehran considered an?U.S. Sources said that the peace proposal would end the war formally, but leave unresolved U.S. requirements that Iran suspend its nuke programme and reopen Strait of Hormuz. Brent crude, the benchmark for oil prices, is now trading at less than $100 per barrel. Inflation is often a result of rising energy prices. In this scenario, policymakers might be less likely to "cut interest rates" to control price pressures. Gold, despite its role as a hedge against inflation, becomes less appealing in a high-rate environment since it offers no yield. TD Securities stated in a report that there is a way to get gold above $5,200/oz once the pressures of conflict and 'oil-driven inflation' fade. The report added that a later pivot towards the Fed's mandate of maximum employment, lower yields, and a softening?U.S. The softer dollar, as well as renewed demand from central banks and investors, could re-ignite the "bull trend", it said. The markets are awaiting the U.S. monthly employment report, which will be released on Friday, to determine how the Fed plans to move forward with its monetary policy in 2019. Data showed that China's central bank piled up gold for the 18th consecutive month in April. Silver spot rose 5%, to $81.19 - its highest price since April 17. Palladium rose 0.1%, to $1,539.01, while platinum gained 1.2%, at $2,085.75. Ashitha Shivprasad, Bengaluru (reporting) and Barbara Lewis (editing).
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Melia Hotel Group expects strong sales as Iran War redirects tourism to Spain
Melia, Spain's largest chain of hotels, expects strong sales in its own country, as the Middle East conflict has redirected tourists. However, it remains cautious due to extreme ambiguity surrounding international trade. Gabriel Escarrer, CEO of Escarrer Hotels and Resorts in Spain, said that bookings were up by double-digits during the summer season. He also predicted a high single-digit increase in revenue per hotel room in the second quarter. This marks the beginning of the peak summer season after Easter. Escarrer told shareholders at Thursday's annual meeting that Spain and the Caribbean were far enough away from conflict zones, but close enough to important source markets to be a safe haven for summer vacations. He warned that the short-term effects of the U.S. and Israeli airstrikes against Iran, which began at the end February, were a mirage. The uncertainty around international trade is also higher than what he had previously experienced. The company had told its shareholders that it expected to earn at least 565 millions euros ($665million) this year. This is up from 545million euros in 2025 as the demand on its main markets remained stable. These include Spain, Latin America, and Europe. Bookings for 'Mediterranean Countries away from Middle East Instability' have risen despite uncertainties including the possibility of higher ticket prices.
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Evergy exceeds profit expectations on the back of regulated investment recovery and stronger demand
Utility Evergy exceeded analysts' expectations for the first-quarter adjusted profit on Thursday. This was helped by a recovery in regulated investment, stronger demand, and higher large customer revenues. The U.S. electricity demand is expected to reach record levels in 2025 as technology companies ramp up their power consumption at rapidly growing data centers. Some sites are using as much power as an entire city. David Campbell, CEO of Kansas Central Service Territory, said: "We have continued to progress our large customer strategy in the first quarter. We are happy to announce the signing of an electric service contract for a large project. U.S. utilities are looking to raise their customers' power bills, mostly to pay for upgrades in infrastructure, as extreme weather conditions and a growing demand from data centers and electrification have put pressure on the grids. Evergy Kansas Central and Evergy Metro are its operating subsidiaries. The company confirmed its forecast for 2026 of?adjusted earnings?per share ranging from $4.14 per share to $4.34. It is expected that the annual adjusted profit growth per share will exceed 8% starting in 2028 and continuing through 2030. According to data compiled and analyzed by LSEG, Evergy's adjusted profit for the quarter ended March 31 was 69 cents, which is higher than analysts' estimates of 65 cents. (Reporting by Varun Sahay in Bengaluru; Editing by Shailesh Kuber)
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Vistra makes a quarterly profit due to rising electricity demand
Vistra Corp posted a quarterly profit Thursday. The company attributed the increase in profits to rising electricity prices and demand. Companies across the United States are launching new power plants. They are increasing?prices? and ramping up capital expenditure to expand infrastructure in order to keep pace with the demand of tech giants who are building artificial intelligence data centres. These price increases are determined by rate-case procedures, which determine the amount that regulated utilities can charge for electricity, gas, and other services, such as private water, steam, and so on. The U.S. is also expected to see a sharp increase in power consumption this year and the next due to cryptocurrency growth, and the move towards electric heating and transportation. In early January, the company agreed to purchase Cogentrix Energy from Quantum Capital Group at a cost of about $4.7 billion. This follows its acquisition of 2025 Lotus to meet rising power demand. The power producer anticipates annual load growth between 5% and 6% on the ERCOT grid of Texas, and 2% to 3% in the PJM area. Interest expenses for the company fell by over 17% in the first quarter, to $263 millions. The Texas 'unit posted an adjusted core-profit of $586m, up?more?than?19% compared to a year ago, while the East segment, which includes PJM and the New?England region, rose by 55.8%. Irving, Texas based company posted a net profit of $980 millions for the three-month period ended March 31 compared to a loss of 317 million dollars a year ago. Vistra has reaffirmed that its outlook for 2026 is to have an adjusted core profit of between $6,8 billion and $7.6 billion. (Reporting and editing by Vijay Kishore in Bengaluru, Pranav Mathur from Bengaluru)
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Oil prices fall on optimism for peace, but global stocks are mixed
Oil prices fell on the back of optimism about a U.S. Iran peace deal. The fate of the Strait of Hormuz, a critical waterway, remained unresolved. MSCI's All-Country World Index increased?0.17%, trading around record highs. Europe's STOXX 600 was down 0.25% after a 2.2% jump on Wednesday. Last up by 1.7%. After a long holiday weekend, trading on the Nikkei 225 index resumed. Samy Chaar, chief economist at Lombard Odier, said that while the Middle East situation is uncertain, "the market momentum is moving in a positive direction", and they have taken notice. He said, "The oil price has dropped from its peak, which relieves pressure on bond yields and yield curves. This is good news for the equity market and causes currencies to move a little." Chaar said that a strong earnings season, coupled with a macroeconomic climate that was relatively robust, contributed to the positive mood in the market. TRUMP PRONOTES A SWIFT END OF WAR Sources and officials stated on Thursday that the United States and Iran were moving toward a temporary, limited agreement to end their war. The draft framework would put an end to the fighting, but leave unresolved the most controversial issues. Brent crude dropped almost 3%, to $98.3, after falling nearly 8% Wednesday. Brent crude is still 40% higher than its level in late February, when the conflict started, even after this slide. Meanwhile, 10-year Treasury yields are surging, reminding us of the pressure that 'higher energy costs' continue to place on the global economy. The 10-year Treasury yields fell by 2.2 basis point to 4.334% on the day. Nick Twidale said that the market is grappling with execution risk. "Both in terms of whether or not a deal has been finalised, and how quickly disrupted flow would normalise, even if they have." In March, the global market was shook by soaring oil prices. However, a fragile ceasefire in Syria and the prospect of a settlement have fueled a rally that is risky since April. This rally has also been fueled by strong earnings reports from tech companies. S&P COMPANIES SET TO ROBUST PROFIT GREENWICH S&P 500 'companies on track to their strongest profit growth for more than four year, and blowout results by Samsung, SK Hynix, and TSMC has reinforced the positive tone in Asia. Survey of economists indicates that investors are waiting for the U.S. Non-farm Payrolls Report on Friday. Jobs?are expected to have increased by 62,000 in April after recovering 178,000 in March. On the currency market,?the Euro nudged up and?last traded at $1.1764. The pound was up at $1.3611, as UK local elections were in focus. The dollar index (which measures the U.S. money against six other currencies) was slightly lower at 97.901. The yen remains in the spotlight, after recent spikes prompted speculation on the market that Tokyo intervened in order to support this battered currency. The yen was unchanged at 156.35 to the dollar after hitting a 10-week-high of 155.35 on Wednesday. OCBC analysts stated that intervention would not be able to change the trend without "stronger support" from "the BOJ, or relief from high oil prices and U.S. Yields are maintained at 155, with a target for the end of the year. Atsushi Mmura, Japan's currency diplomat, said that the country had no restrictions on how frequently it could intervene. He also stated that he was in constant contact with U.S. authorities. Scott Bessent, the U.S. Treasury secretary, is scheduled to visit Tokyo in the coming week. Analysts expect him to discuss yen movements with his Japanese counterpart Satsuki Katayama. Reporting by Sophie Kiderlin and Ankur Banerjee from London, Singapore, and Elaine Hardcastle, Bernadette, Neil, and Bernadette Baum.
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McDonald's fails to meet its US sales target due to tighter consumer spending
McDonald's missed Wall Street estimates on Thursday for growth in U.S. quarter-to-quarter comparable sales, as the company struggled to attract diners who were already stretched by rising fuel and grocery prices. After years of price increases, operators in fast-food have been forced to rely on value-driven promotional campaigns to revive the demand. The largest burger chain in the world posted U.S. sales growth of just 3.9% during the first quarter, falling short of expectations for a 4.2% rise. McDonald's CEO Chris Kempczinski stated that the operating environment was "challenging" even though it beat its quarterly revenue and profit estimates, sending shares up by about 3% during?premarket trade. Some U.S. restaurants chains, such as Wingstop and Domino's, have reported a weaker quarter-on-quarter sales growth. They cited a drop in customer spending due to the soaring gas prices caused by Iran's war. Wall Street analysts say that lower-income consumers have become more selective and are ordering fewer items rather than full meals. Placer.ai data showed that McDonald's U.S.'s traffic was uneven throughout the first quarter. Winter storms caused a 1.3% drop in same-store visits in January. Traffic surged 3.8% in Febraury on pent up demand but fell to 1.2% in March as a result of a muted response from new menus and rising fuel prices. McDonald's expanded its McValue program in April to attract cost-conscious customers. McDonald's global comparable sales increased 3.8%. This was slightly below the analysts' expectations of 3.95% but still an improvement over a 1% drop a year earlier. LSEG data shows that the company's 'total revenue' of $6.52bn exceeded expectations of $6.47bn. It earned $2.83 in adjusted earnings per share, compared to expectations of $2.74.
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Hong Kong's bourse wants to revive gold futures amid market volatility
HKEX is looking to launch gold futures as it strives to become a 'global gold trading and storage hub' amid volatile gold prices caused by geopolitical tensions. According to a video review of the meeting, Gregory Yu, the head of markets at the bourse, said to local legislators this week that they plan to revive gold futures. HKEX launched gold futures for the last time in 2017, after an earlier product that was introduced in 2008 had been suspended in 2015. However, both efforts failed due to low liquidity and competition with established global markets. Yu, who didn't give a time frame, said HKEX will "continue to consult with market participants and stakeholders and refine contract design, and improve delivery mechanisms." Yu said that many investors need to diversify their risk due to the geopolitics and therefore are interested in trading gold and storing it. "We believe that it is essential to connect the gold-futures market with the physical gold ecosystem here." HKEX has confirmed that the proposal, which was not previously reported, was made at a meeting on Monday. Hong Kong's government is pushing to expand its bullion storage, and position the city as a gold trading hub. Since the onset of the Iran war, gold prices have fluctuated sharply as investors decide whether to buy safe-haven assets or reassess the impact the conflict will have on oil prices and inflation, dollar values and interest rate expectations. Reporting by Selena Li. Mark Potter edited the article.
US construction spending increases in March
U.S. Construction spending rebounded during March, thanks to a surge of single-family homes. However, higher mortgage rates may limit future gains.
Census Bureau of the Commerce Department?said?on?Thursday? that construction spending rose by 0.6%, after falling by 0.2% in February. The economists polled had predicted that construction spending would increase by 0.2% in March.
Construction spending increased 1.6% in March on an annual basis. The Census Bureau is now releasing construction spending data after the delays caused by last year's federal government shutdown.
The increase in private construction spending in March was 0.8%, after falling by 0.2% in February. Residential construction investment grew 1.7% in March after declining 0.1% in the previous month. Spending on single-family housing projects increased by 2.7%. Inflation is a result of the U.S./Israeli war against Iran, which keeps mortgage rates high. Tariffs are also a factor in the higher costs for builders. Residential investment has fallen for five consecutive quarters. The spending on multi-family housing units, which make up a small part of the housing market in March, increased by 0.3%.
In March, spending on non-residential private structures like offices and factories fell by 0.2%. The spending on non-residential buildings has been declining for nine quarters in a row, which is the longest stretch of time on record.
After falling by?0.3% in January, investment in public construction projects fell 0.2% in March. In March, state and local government construction expenditures fell 0.1% while federal government spending dropped 2.6%. Lucia Mutikani, Paul Simao and Paul Simao are responsible for reporting.
(source: Reuters)