Latest News
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Scientists find 64,000 sq. miles of coral reef that can survive climate crisis
Researchers have found that scientists are able to identify a coral reef of 166,000 square kilometers (64,000 square miles) which is capable of recovering from climate change. This is three times greater than what was previously thought. Scientists have warned that the world's coral reefs, which support a quarter of all marine life on earth, are under extreme stress due to violent tropical storms and pollution, as well as mass "bleaching events" caused by rising ocean temperatures. A combination of decades of climate and ocean data and 45,000 coral surveys has revealed climate-resilient coral reefs in 71 countries. This includes parts of the Caribbean, Pacific and Atlantic Oceans and other areas that were not previously recognised. Emily Darling is the director of coral conservation at the Wildlife Conservation Society and one of the authors of the report. "This research shows that we are wrong: We?know the place where hope lies and we only need political will now." The countries are currently drafting action plans to protect 30% of their marine and land environments by the end of this decade. This target is known as "30 By 30". With the new research, governments will be able to take into account the location of corals reefs when planning. Darling stated at a press briefing that only 28% of reefs are currently protected or conserved. The opportunity and urgency is therefore clear, especially as we prepare for a super El Nino. Stacy Jupiter is the co-author of the report and the executive director of WCS Global Marine Program. She said that the data could provide governments with the information they need to make decisions about where funds should be spent and how best to give more resilient coral reefs a chance at survival. She said that in certain cases where reefs fall below certain benchmarks of ecosystem function, we might need to triage and leave these places. (Reporting and editing by David Stanway.
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Asia markets temper Iran deal optimism, BOJ hikes rates
Asian stocks gained modestly on Tuesday, following a rally on Monday on the news of a U.S. - Iran peace pact. Investors also assessed a widely anticipated Bank of 'Japan 'rate increase that reached a new high of 31 years. The Nikkei index rose 0.6% and briefly crossed the 70,000-mark to reach a new high after the Japanese central banks voted to raise its benchmark policy rates to 1%. This was the highest level since 1995. The yen was unchanged at 160.31 against the dollar. The Australian dollar, which was 0.3% weaker at $0.70515, was also little changed. This is because the Reserve Bank of Australia held interest rates as expected. S&P 500 futures are trading lower by 0.1%, after fluctuating in gains and losses. MSCI's broadest Asia-Pacific index outside Japan is up 0.4% with Korean shares rising by 2%. Hong Kong stocks weighed down the benchmark index after China's retail sales and fixed asset investment figures were weaker than expected. The markets have settled into a measured tone on Gulf developments, as initial excitement about the preliminary agreement between Washington & Tehran has begun to fade. Brent crude futures fell 0.3% overnight to $82.96 per barrel, reflecting the cautious approach. Oil prices finished at their lowest level in three months. Shipping companies in Asia and Europe say it could take several weeks to rebuild confidence in the resumption of transit through the Strait?Hormuz. The announcement by U.S. president?Donald Trump of a deal to end the Iranian nuclear program on Monday brought relief to investors, but it also put Washington at odds with Israel. Westpac analysts said in a research report that while the deal was an important diplomatic achievement, its durability would be tested in future. Many sticking points were left for future negotiations, such as the fate of Iran’s nuclear program. WALL STREET RALLY Overnight, stocks and bonds on Wall Street rallied due to optimism about the deal. The Nasdaq Composite jumped 3.1% and the S&P 500 rose 1.7%, while both the Dow Jones Industrial Average (DJIA) and STOXX 600 closed at new records. Beyond geopolitics and the Bank of Japan's decision to rescind its monetary policy, traders will also be waiting for a press briefing by Deputy Governor Shinichi Uchida, who will explain it to the media. Governor Kazuo Ueda is unable to attend due to medical treatments. In a research note, analysts at Mitsubishi UFJ stated that they did not expect any major changes in the Bank's assessment on current conditions. The note stated that "We expect the Deputy Governor Uchida press conference and the reasoning he will?present for the rate hike decision to be largely based on Governor Ueda’s speech of June 3," Mr. Uchida will also follow the governor's comments when discussing future policies. The U.S. Dollar Index, which measures the strength of the greenback against a basket six currencies, rose 0.1% at 99.75. It remained firmly in the trading channel that it has been stuck within for the last three sessions. The yield on the 10-year Treasury Bond in the United States increased by 0.8 basis points to 4.475%. Gold rose 0.4% to $4,324.32 per ounce. Early European trades saw a flat market, with DAX futures in Germany down 0.2% and FTSE Futures down 0.1%. Bitcoin fell 1%, to $65,799.61. Ether dropped 2.9%, to $1,762.15. (Reporting and editing by Gregor Stuart Hunter, Jamie Freed, and Shri Navaratnam).
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Oil prices fall as markets assess return of supply after US-Iran peace agreement
Oil prices continued to fall on Tuesday as markets weighed the prospects of a resumption of oil supply through the 'Strait of Hormuz, against the shaky market conditions and the lack of information from the preliminary agreement to end the Iran War. Brent crude futures were down 25 cents (0.3%), or $82.92 per barrel, and U.S. West Texas Intermediate was down 9 cents (0.1%), or $80.66 per barrel, by 0436 GMT. Oil prices dropped nearly 5% on Monday to their lowest level since March 4 after U.S. president Donald Trump announced that a memorandum was signed for the U.S. and Israel to end its war with Iran. Full details, however, have not yet been released. Before the conflict, the Strait of Hormuz was a major oil transport route that carried a fifth of the world's supply of oil. Other factors are weighing on the physical market price. Some analysts predict a return of supply via the Strait in a short time. Morgan Stanley analysts stated in a note to clients that "it will likely take several weeks" for the tanker flow of oil to be restored. We expect to see 50% of the production returned by September and 80% by December. This is a little faster than previously. They added that a wide range of indicators indicated weakness on the physical oil market in recent weeks. In the short-term (i.e. Next weeks, they don't seem to be ending just yet." China's crude oil imports fell 29% in May, to the lowest level in eight years. This is a continuation of a dramatic drop for the world's largest importer. Its liftings from Saudi Arabia are expected to fall again in July. Early indications suggest that the U.S. and Iran deal will reopen blockaded Strait of Hormuz, extend a 60-day ceasefire, and allow negotiators the opportunity to address difficult?issues like the future of Iran’s nuclear program. The Iranian president Masoud Pezeshkian said on Monday that the U.S. and Iran pact was an "important step" towards stopping the fighting, but warned that a final agreement to create a lasting ceasefire "has not yet taken shape". The overall price decline is limited, but?until full details are revealed and a permanent truce has not been reached. Suvro Sarkar is the head of DBS Bank’s energy research. He said that the first phase of the deal, which included the signing in Geneva of a 60-day ceasefire extension, was simple, and would buy time, as well as push the “nuclear tin”?down to the future. The second phase is the reopening of Strait of Hormuz in phases and the gradual winding down of the US naval blocksade against Iranian ports and ships. This will be closely watched by the markets because of its physical impact. "Anything less than a?simultaneous?unlock will result in renewed volatility of oil prices," said?Sarkar. It will be interesting to see what happens over the next few weeks, given the current trust deficit. A senior Iranian official announced on Monday that Iran would cease its nuclear activities until there is a final deal, and will not enrich uranium or expand nuclear facilities. Reporting by Pranav Mathur in Bengaluru, and Trixie Yap from Singapore. Editing by Christian Schmollinger & Clarence Fernandez.
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The morning bid for Europe-Japan is a big hit!
Tom Westbrook gives us a look at what the future holds for European and global markets. The central bank moves in Asia were as expected on Tuesday, with Japan increasing its short-term rate to 1% (the highest since 1995) and Australia keeping its?rates at 4.35%. The?yen and the Australian dollar did not react sharply at first. Investors are expecting hawkish views at the press conferences to be held in Sydney and Tokyo. They have priced in another hike for Japan this year, and a 66% chance of an additional hike in Australia. Reserve Bank of Australia Governor,?Michele Bullock, is expected at 0530 GMT, and Bank of Japan Vice Governor Shinichi Uchida is expected an hour later. Uchida is filling in for Kazuo Ueda who is hospitalised. The hike in Japan brought the rates down to the "bottom" of what policymakers believe the neutral rate for the economy is. However, it also came with a pause that had been previously signaled - the central bank was stepping back from the bond markets. The company will cut its bond buying by 200 billion yen ($1.25billion) per quarter until April 2027, when it will stop. JGB purchases will be around 2 trillion yen per month. Traders elsewhere were reluctant to push markets higher despite the tentative agreement reached between the U.S.A. and Iran over the weekend. Details of the deal, which kept oil prices above $80 per barrel, were scanty and shippers warned that it would take weeks for them to regain confidence in order to safely navigate through the Strait of Hormuz. SoftBank's shares remained steady following the news that the chief financial of Vision?Fund, the company's investing arm, is leaving after a decade. The Chinese data for May was mixed. Retail sales fell in Hong Kong, the first time they had done so in over three years. This weighed on market sentiment, and stocks were down. Overnight, Wall Street had notched gains. After-hours trading saw SpaceX's value surpass $2.6 trillion, as the stock surged to 48% over its listing price. Nvidia surprised the debt markets with its surprisingly large $25 billion bond issue, which they say will be used for refinancing as well as general purposes. The following are key developments that may influence the markets on Tuesday. - Economy: German ZEW Survey
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Asia markets temper Iran deal optimism, BOJ hikes rates
Asian stocks gained modestly on Tuesday, following a rally the previous day?on news of a U.S. peace deal with Iran?. Investors also assessed a widely anticipated Bank of Japan interest rate?increase to a high of 31 years. The Nikkei rose 0.9%, to a record high of 70,000. This was after the Japanese central banks voted to raise its benchmark rate to 1%. S&P 500 futures recovered from early losses and traded flat. MSCI's broadest Asia-Pacific index outside Japan rose 0.4%. Korean shares rose 2.3%. Stocks in Hong Kong weighed down the benchmark index after China's retail sales and fixed asset investment data were weaker than expected. The markets have taken a more measured approach to Gulf developments, as initial excitement over the preliminary deal between Washington and Tehran has begun to fade. Brent crude futures fell 0.3%, to $82.90 per barrel, reflecting the cautious attitude. Shipping companies in Asia and Europe say it could take several weeks to rebuild confidence that transit will resume through the Strait of Hormuz. Although the announcement by U.S. president Donald Trump of a "deal" with Iran brought relief to investors on Monday, Washington is now on a collision path with Israel. Westpac analysts said in a research report that while the deal was an "important diplomatic breakthrough" and should eliminate a major source of volatility in the market, its durability would be tested over time. Many sticking points were left for future negotiations, such as the fate of Iran’s nuclear program. WALL STREET RALLY Stocks and bonds rose overnight on Wall Street on the optimism surrounding the deal. The S&P 500 rose 1.7%, the Nasdaq Composite soared 3.1% and both the Dow Jones Industrial Average (DJIA) and STOXX 600 closed at new records. A poll of economists shows that traders are waiting for a decision by the Reserve Bank of Australia. The bank is expected to stop its tightening cycle at their meeting later on Tuesday. Shinichi Uchida, the Deputy Governor of the Bank of Japan, will hold a briefing for the media later in the day to explain the central banks decision. Governor Kazuo ueda, however, won't be able to attend because he is undergoing medical treatments. In a research note, analysts at Mitsubishi UFJ stated that they did not expect any major changes in the Bank's assessment on current conditions. The note stated that "we expect the Deputy Governor Uchida press conference and the reasoning he uses to justify the rate hike decision will be heavily influenced by Governor Ueda’s speech on June 3," "Mr. Uchida will?likely follow the Governor's remarks in discussing future policy decisions." The U.S. Dollar Index, which measures greenback strength against a basket six currencies, has remained at 99.70. It is firmly "within" the tight trading range in which it's been for the last three sessions. The yield of the 10-year Treasury bond in the U.S. The yield on the 10-year Treasury bond increased 0.4 basis points to 4.471%. Gold rose 0.4% to $4,321.22 per ounce. Early European trading saw pan-regional futures down 0.1%. German DAX Futures were down by 0.2%. FTSE Futures also slipped 0.1%. Bitcoin fell 0.8% to $65,938.29 while ether dropped 2.1% to $17,777.02. (Reporting and editing by Gregor Stuart Hunter, Jamie Freed, and Shri Navaratnam).
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Investors wait for details on US-Iran peace agreement
Investors awaited more details about the U.S. - Iran peace deal. Gold prices were mostly stable on Tuesday. As of 0231 GMT spot gold was up by 0.2% to $4,315.87 an ounce after rising as high as 3.6% on Sunday, when it reached its highest level since the 5th of June. U.S. Gold Futures for August delivery fell 0.3% to $4,337.10. U.S. president Donald Trump announced on Monday that the U.S. had signed a preliminary deal with Iran to end the Gulf War, but no details were made public. Both countries also said they have yet to negotiate a permanent ceasefire. Since late Thursday, the Iran news has fueled a good run in gold. Edward Meir is an analyst with Marex. He said, "I think that this euphoria might last for a few more days and culminate in the signing ceremony on Friday." The U.S. Dollar held near its 10-day lows before the Bank of Japan announced their interest rate decision. Investors will also be watching the Federal Reserve's policy announcement and remarks on Wednesday. This is the first time that Kevin Warsh has been the chair. Rates are expected to stay the same. Markets expect no rate reductions this year. Meir stated that if Warsh indicates at least one rate cut may be on the table this year, then the dollar could decrease even further and we could see another rally in the gold price. Gold could be under pressure if he appears to be more hawkish about rates. CME FedWatch? tool shows that traders have reduced their expectations of a U.S. interest rate increase in December to 57%, from 70% last week. In a high interest rate environment, gold is not attractive as it does not yield. Citi has raised its gold price forecast for the 0-3 months by $500 per ounce to $4,500. Silver fell by 1%, to $69.29 an ounce. Platinum dropped 0.9%, to $1.751.55, while palladium dropped 1.6%, to $1.327.27. (Reporting by Noel John in Bengaluru; Editing by Subhranshu Sahu)
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BOJ to make decision on Iran deal in the near future
Asian stocks fell on Tuesday, as investors focused on 'central bank decisions. This included an expected 'rate hike by the Bank of Japan. The markets have taken a more measured approach to Gulf developments, as the initial excitement surrounding the preliminary agreement reached between Washington and Tehran has begun to fade. Brent crude futures rose 0.1% to $83,25 per barrel, reflecting the cautious approach. Shipping companies in Asia and Europe say it could take several weeks to rebuild confidence that the Strait of Hormuz will be open for business again. MSCI's broadest Asia-Pacific index outside Japan has lost gains and is now trading flat. Stocks in Hong Kong are weighing down the benchmark due to weaker-than-expected data on retail sales from China, as well as fixed-asset investments. Japan's Nikkei was down by 0.3% from its record high, while S&P 500 futures fell 0.1%. Although the announcement by Donald Trump of a nuclear deal with Iran on Monday brought relief to investors, it also put Washington on a collision course with Israel. Westpac analysts said in a research report that while the deal was a diplomatic success, its durability would be tested over time. Many sticking points were left for future negotiations, such as the fate of Iran’s nuclear program. WALL STREET RALLY Stocks and bonds rose overnight on Wall Street on the optimism surrounding the deal. The S&P 500 rose 1.7%, the Nasdaq Composite soared 3.1% and both the Dow Jones Industrial Average (DJIA) and STOXX 600 closed at new records. Traders are waiting for several major central banks decisions.?Including the Bank of Japan which is expected Tuesday to increase interest rates to their highest level in 31 years. After the meeting, Deputy Governor Shinichi Uchida is scheduled to hold a briefing for the media. Governor Kazuo Ueda will miss this because he's undergoing medical treatments. In a research report, analysts at?Mitsubishi UFJ stated that they did not expect any major changes in the Bank's assessment on?current conditions. The note stated that "We expect the Deputy Governor Uchida to base his press conference and the reasoning he uses for the rate hike decision on the Governor Ueda speech of June 3rd." "Mr. Uchida will also follow the Governor's remarks in discussing future policy decisions." According to a survey of economists, the Reserve Bank of Australia is likely to stop its tightening cycle at a later meeting. The U.S. Dollar Index, which measures the strength of the "greenback" against a basket six currencies, has been firmly anchored at 99.69. It is still firmly in the same tight trading channel that it has been in for the last three sessions. The yield of the 10-year Treasury bond in the United States was up by 0.2 basis points to 4.469%. Gold rose 0.1% to $4,311.12 per ounce. Bitcoin was down by 0.3%, at $66,281.99. Ether fell 1.3%, to $1,791.39. (Reporting and editing by Gregor Stuart Hunter, Shri Navaratnam, and Jamie Freed).
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Fire caused by drone debris at an oil depot in Russia’s Krasnodar Region near Crimea
Authorities?said Tuesday that a fire was caused by debris from a drone at an oil depot located in southern Krasnodar, Russia. They also?closed the local road linking the area with the Crimean Peninsula. The fire that broke out at the oil depot in the Poltavskaya region?of Krasnodar was not fatal, according to a telegram message from the regional authorities. The authorities said that they had closed a local route connecting the area to a regional road leading to a?bridge over the Kerch Strait? linking Crimea with the Krasnodar Region, which was built by Moscow following the annexation. The bridge is one way to supply the Black Sea Peninsula, along with a few other roads that connect to Russia-held parts of Ukraine. Ukraine struck two bridges on Monday that connect the Russian-held area of Ukraine's Kherson Region?with Crimea. Kyiv's recent intensification of attacks on Crimea supply routes has led to a fuel shortage in the peninsula. In the Krasnodar area, a popular tourist destination in summer, disruptions in?fuel supply have led to panic buying, according to the regional governor. Ukraine is continuing its attacks on Russian energy assets. (Reporting and editing by Tom Hogue in Tokyo, Lincoln Feast and Jekaterina Gólubkova.)
Gold prices rise as US-Iran agreement eases concerns about rate hikes
Gold prices rose on Tuesday, extending gains to a fourth session. Investors awaited more details about the deal, which was a result of a preliminary U.S. peace agreement with Iran.
As of 0431 GMT spot gold was up by 0.4% to $4,322.99 an ounce after a rise as high as 3.6% on Sunday, when it reached its highest level since the 5th of June.
U.S. Gold Futures for August delivery were down by 0.2% to $4,343.50.
U.S. president Donald Trump announced on Monday that the U.S. had signed a preliminary agreement with Iran to end the war in the Persian Gulf, but details are yet to be made public. Both countries have also said a permanent ceasefire is still to be negotiated.
Since late Thursday, the Iran news has boosted gold prices. Edward Meir is an analyst with Marex. He believes that this euphoria rally could last for a few more days, culminating on Friday in the signing ceremony.
The U.S. Dollar held near its 10-day lows before the Bank of Japan announced their interest rate decision.
Investors will also be watching the Federal Reserve's policy announcement and remarks on Wednesday. This is the first time that Kevin Warsh has been the chair of the Federal Reserve. Rates are expected to remain the same.
Markets expect no rate reductions this year. Meir stated that if Warsh indicates at least one rate cut may be on the table this year, then the dollar could?decrease even further and we might see another rally in the gold.
Gold could be under pressure if he comes across as "hawkish" on rates.
CME FedWatch shows that traders have reduced their expectations of a U.S. interest rate increase in December to 57%, from 70% last week.
In a high interest rate environment, gold is not attractive as it does not yield.
The Bank of Japan has raised its interest rates for the first time since December, a move that aligns it with other central bankers who are pursuing tighter policies to combat inflation.
Silver spot fell by 0.4%, to $69.76 an ounce. Platinum dropped 0.3%, to $1.761.95, while palladium fell 1.2%, to $1.331.86. (Reporting and editing by Subhranshu sahu, Ronojoy Mazumdar and Noel John from Bengaluru)
(source: Reuters)