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Germany opens window for dialogue between Europe and Russia
At a Wednesday briefing, a German government official said that a window of 'dialogue' is opening slowly between Russia and Europe on Ukraine. However, it will likely be months before any talks can begin. The official who requested anonymity said that it was important to create a dialogue format that Europeans would perceive as legitimate. The official also said that it was unclear who would lead these talks. However, there were strong indications that the E3 Group (Germany, France, and Britain) will continue to play a significant role in this regard. The Russian advance has slowed down this year. Ukrainian troops have intensified their 'long-range attacks in Russia and on St Petersburg, ahead of President Vladimir Putin’s annual economic forum, on Wednesday. The chief of staff to Ukrainian President Volodymyr Zelenskiy said that a deal ending the war before winter would be a "realistic outcome". According to the German official,'recent fighting suggests that it will take months rather than weeks to reach a stage where?talks could begin, and it is important to ensure they are conducted in full agreement with Ukraine. The official said that coordination - not competition - should be the guiding principle. Washington's mediated talks, which have been stalled due to its focus on Iran, are also at a standstill. The German and European governments rejected Putin's suggestion that the former German chancellor Gerhard Schroeder would represent them at future negotiations with Moscow. Reporting by Andreas Rinke; Writing by Miranda Murray; Editing by Madeline Chambers, Sharon Singleton and Madeline Chambers
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The Iran talks are at an impasse as Sterling struggles to find direction
The British pound has not changed much against the euro and dollar on Wednesday. Investors are still 'focused' on the conflict in?Middle East and the effects of a prolonged war on monetary policies. The talks to end the conflict are at a standstill. On Wednesday, an Iranian missile strike damaged Kuwait's Airport and the U.S. Military carried out strikes near Strait of Hormuz. Brent crude futures traded at their highest levels in a week on Wednesday. The United States is more vulnerable to rising fuel prices than Britain because of its greater dependence on imported energy. Prices have fallen from their late April highs but remain well above the levels they were before the U.S. and Israeli attacks on Iran in February that triggered the war. The pound last fell by about 0.1% to $1.3447. This is within the middle of its recent range. The?sterling exchange rate against the euro was unchanged at 86.34 cents. BOE RATE INCREASE PUSHED BACK Investors bet that the Bank of England will wait to raise rates. They have also lowered their expectations of future rate hikes since the beginning of the war. Money market futures do not fully price in a quarter point rate hike until September, and just under two are priced by the end of the calendar year. The market has given Bank of England the opportunity to wait it out as long as Strait of Hormuz opens soon, said Gustav Helgesson. The Bank of England can sit out this situation and, from a rate differential perspective, it should weaken sterling. Helgesson said that if the war ended, the pressure on public finances would be relieved, and this could have a positive effect on sterling. Investors are beginning to expect rate increases from the Federal Reserve, given the recent strong U.S. economic data and rising price pressures.
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Copper prices fall as new attacks in the Middle East reduce risk appetite
The copper price?retreated? on Wednesday, after renewed hostilities in Iran's?war undermined the optimism of an imminent resolution and boosted the?dollar. However, the prospect of U.S. Tariffs have limited the downside. Benchmark 'three-month copper at the London Metal Exchange fell 0.9% to $13,914 per metric tonne by 0930 GMT. In the previous session it had reached its highest level in over two weeks, with a 1.5% gain. Gulf hostilities erupted on Wednesday, as diplomacy between Washington & Tehran showed little progress. The markets have moved to a more risk-averse environment as a result of the exchange of fire. Oil prices rose in a third session following the halting of U.S.-Iran talks. A prolonged conflict will likely curb metals demand as inflation increases and economic growth is dampened. The Gulf skirmishes boosted demand for the dollar and made commodities priced in U.S. dollars more expensive to buyers who use other currencies. The speculation that the U.S. could impose tariffs for refined copper before a deadline of June 30 to make a "determination" boosted prices. U.S. Comex Copper Futures fell 1.2% to $6.60 a lb. This brings the premium of Comex to LME copper up to 4.5% or $631 a tonne. This premium has attracted metal flows to the U.S., and tightened supplies elsewhere. Shah stated that "the?premiums? are modest. If we hear any rumours about tariffs, copper could explode to the upside." The Shanghai Futures Exchange's most active copper contract gained 0.4%, closing daytime trading at 106 380 yuan (15,712.51) per ton. Nickel fell 1.1% to $19 045, while tin dropped 0.9% to $57450.
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Gold drops on stronger dollar and oil amid renewed Middle East hostilities
The 'dollar' strengthened on Wednesday, and oil prices rose as the conflict in the Middle East continued. This dimmed the hopes of a quick resolution to the U.S. - Iran conflict. By 0922 GMT, spot gold had fallen 0.8% to $4449.19 an ounce. U.S. Gold Futures for August Delivery fell 0.9% to $4478.40. On Wednesday, Gulf hostilities erupted again, with an Iranian missile attack damaging Kuwait’s airport, and U.S. strikes near the Strait of Hormuz. Diplomacy between Washington, D.C., and Tehran had made little progress. Due to the renewed conflict in the Middle East, gold is under pressure. Oil prices will likely remain high despite fading hopes for a U.S. Iran peace pact, according to Lukman Otunuga senior?research analysts at FXTM. The dollar rose by 0.2%, and oil prices continued to rise for the third consecutive session. Oil prices rising increase inflation risk, which increases the likelihood of longer-term interest rate hikes. Gold is often viewed as an inflation hedge, but it loses its appeal when interest rates are high. According to CME Group’s FedWatch tool, the markets, which had anticipated two U.S. rate cuts in this year, before the Iran War, are now pricing in a 42 percent chance of a 25 basis-point rate increase in December. Cleveland Federal Reserve President Beth Hammack said that the U.S. Central bank could need to increase interest rates in the near future if inflation pressures continue to rise. Investors are now awaiting the U.S. Nonfarm Payrolls Data for May, due on Friday, to gauge the U.S. Federal Reserve monetary policy direction. Otunuga said that a strong jobs report could add momentum to the gold's decline, particularly if it leads more traders to price in an interest rate increase by December. Spot silver dropped 1.1% to $74.28 an ounce. Platinum fell 0.4% to $1.928.35 and palladium declined 1.2% to $1.353.50.
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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.
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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)
Zambia extends duty free copper concentrate export duty exemption amid smelter failures
Zambia has extended the suspension on a 10% duty for copper concentrate exports until September 30 to clear the'stockpiles' of unprocessed material as the smelters in the country undergo extensive maintenance and repairs.
The copper miners of Africa's second largest producer of metals used in electrical infrastructure have undertaken lengthy smelter-maintenance programmes in response to technical challenges which have affected?processed production.
Zambia exports copper mainly in the form of refined cathodes rather than concentrate. Zambia exported 890 346?metric tonnes of copper in 2025, and aims to increase national production to?3 millions tons by 2031.
According to a government announcement seen on Wednesday, the suspension was first implemented in August 2025 and covers 271,742 tonnes of copper concentrates.
Mopani Copper Mines is owned jointly by International Resources Holding, based in Abu Dhabi, and Zambia’s state mining company ZCCMIH. It has the largest duty free export quota, which is 100,000 tons of concentrates.
Lumwana Mining Company, owned by Barrick?Mining Corp, has a quota?of?56,986?metric tonnes. First Quantum Minerals, and Nkana Mining?and Minerals?Processing, both Chinese-owned, have a quota?of about 43,000?metric tons each.
According to a government notice, the Lubambe Copper Mine is 70% owned by China’s JCHX Mining and has a duty-free quota for exports of?15,541 tons. Vedanta’s Konkola Copper Mines?has a 12541-ton quota.
(source: Reuters)