Latest News
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The stakes are high for the morning bid in Europe.
Ankur Banerjee gives us a look at what the future holds for European and global markets Kevin Warsh, Federal Reserve chairman, held his first press conference. He revealed an ambitious review that had broad implications and he was tacitly hawkish in his tone by highlighting the central bank's determination to bring inflation under control. Nine of the Fed’s 19 policymakers expect at least one hike in interest rates by the year 2026. Warsh did not provide a rate prediction of his own. He said that markets should price assets according to their own interpretation of the data, and not second-guess central bank officials' interpretations. He said that if the Fed took this approach, it would avoid a situation where "all the markets do is reflect back what we have said." The markets have priced in an increase of the Fed's rate by October. This has boosted the yields on U.S. Treasury bonds and the dollar. The Fed's sweeping review could change the way the central bank communicates and makes decisions. A short policy statement, similar to the format used by the former Fed chairman Alan Greenspan, heralded the dawn of a new age. Markets may need time to adjust to an increasingly less transparent Fed. Investors scrutinize every word that policymakers say, and a central banking institution who keeps its cards to itself could end up fueling the volatility it hoped to avoid. Bank of England will likely hold its rates at 3.75 percent on Thursday, as it evaluates the impact of a tentative truce in the Iran War on inflation. The dollar's strength has cast a long shadow across the currency markets. This has left the yen on a knife edge, as fears of intervention have resurfaced following a fresh barrage from Tokyo. When asked about the decline of the yen, Chief Cabinet Secretary Minoru Kihara said at a regular press conference: "We're ready to respond as necessary to currency movements." The yen has been stuck around 160 per dollar for days. Even this week's Bank of Japan rate hike offered little relief, as speculative net shorts reached their highest level since July 2024. The following are key developments that may influence the markets on Thursday. UK Labour and Wage Data for April - BoE policy decision - Euro zone April current account data
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Fans in the US and Canada boo water breaks during World Cup matches
Fans booed loudly during the hydration breaks at World Cup Group L matches Wednesday, expressing their dislike for this innovation. First in Dallas Stadium when England played Croatia and then in Toronto when Ghana faced Panama. FIFA's three-minute mandatory hydration breaks, one per half, were introduced at the World Cup for the first time to help players cope with the heat and humid conditions of North America. Critics say the breaks disrupt the flow of the match, while others think they are a cynical way to divide the game into four halves and give broadcasters the opportunity to air more adverts. England fans announced on social media that they would protest at the match. The boos began from both groups of supporters when referee Clement Turpin whistled to signal the break. In Toronto, the hydration breaks were also met with a cold reception by fans for the other Group L game of the day. Fans booed as players from Ghana and Panama walked towards their respective benches in a steady downpour. Thomas Christiansen, Panama's coach, said that a break is needed to correct mistakes after the team's 1-0 defeat to Ghana. "It was not very hot but we must accept that television advertisers are paying for these things." The crowd booed when the first half-time break began in Tuesday's match between Norway and Iraq at Boston Stadium. It was a mild temperature of 23 degrees Celsius (73.4?Fahrenheit) during the match. Iraq was holding the 'Norwegians to a 0-0 draw and playing well at the time of?the first break but then conceded a 4-1 loss four minutes after resumed play. (Reporting and editing by Ken Ferris, Ed Osmond, and Karolos Grohmann; additional reporting by Frank Pingue and Nicole Fernandes, and Karolos Grhmann).
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Michaela Onyenwere, Sonia Citron shoot Mystics past Sun
Sonia Citron scored 26 points, 12 rebounds, and Michaela Onyenwere a season high 22?points as the Washington Mystics defeated the Connecticut Sun 88-81 on Wednesday at Uncasville in Conn. Citron made all 12 attempts at free-throws and 7 of 13 shots. Onyenwere, who had scored 17 points in three consecutive performances, followed that up by making 8 of 12 shots on the floor - including four from 3 point range. She hadn't scored as many points since July 7, 2023, when she had a 24-point explosion. Lauren Betts scored 13 points with?seven rebound in her first appearance for the Mystics, who were shorthanded (6-7, 3-3) in the Commissioner's Cup. They overcame Shakira Austin's (knee pain) and Kiki iriafen's (right ankle sprain) absences. Aneesah?Morrow of Connecticut came off the bench and produced 11 points with 10 rebounds, her ninth double-double for the season. Leila Lacan scored 11 points as well for the Sun (2-14, 0-6). They made only 4 of 20 3-point shots (20.0%), extending their losing streak to six consecutive games, which is a season low. Betts' free throws gave Washington a 61-50 lead, but Connecticut stepped up their game and tied the score at 70-70 on Lacan’s layup. There was 5:46 left to play. The Mystics recovered their composure. Citron, who had just scored a layup against the Sun and made a 3-pointer attempt by Onyenwere, went on his own 7-1 run to take Washington to a 86-75 advantage with 1:29 left. Diamond Miller's 3-pointer brought Connecticut to within 86-81, with just 35.2 seconds left. But the Sun couldn't get any closer. Kennedy Burke's 3-pointer brought Connecticut to within two points at 50-48 after the teams had?swapped their lead eight times during the first half. Washington's Cassandre prosper answered from beyond the arc in the next possession. Onyenwere then added another 3-pointer, helping to extend the lead to 60-53. Onyenwere scored 8 of Washington's 12 first points in the game. Her highlight was a 3-pointer that she drained on a contested shot to give her team an 18-14 advantage at the end the first quarter. The Mystics increased their lead to 34-27 after Georgia Amoore assisted Citron in his driving layup. She then made a 3-pointer during the Mystics' next possession. Field Level Media
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Oil prices fall as US and Iran reach peace agreement, but Asian stocks remain steady
Investors assessed the progress made in ending the Middle East war after the U.S. president and Iran's president signed an interim peace agreement, but uncertainties still lingered. The text of the agreement was released by both countries. It had circulated widely prior to its publication. The agreement extends the ceasefire that was announced in April for another 60 days, allowing both sides to negotiate an end to hostilities. Donald Trump, the U.S. president, has threatened to resume his attacks on Iran and to kill Iranian officials who fail to honor their commitments. Kyle Rodda is a senior analyst for Capital.com. He said that "major geopolitical risks persist?and will remain a major market driver." MSCI's broadest?Asia-Pacific share index outside Japan was flat. Japan's Nikkei average soared to a new record high, breaking the 71,000 mark for the first-time, thanks to?solid gains from semiconductor and AI related shares. South Korean shares also gained 0.9%. The S&P500 e-minis (U.S. stock?futures), which are the S&P 500 futures, rose 0.81% to 7,484.8. After earlier touching 2.63%, the benchmark yield on 10-year Japanese government bonds rose by 2 basis points to 2,620%. It is poised to close at its highest level since June 16. Prices of oil fell. U.S. crude dropped?1.25%, to $75.83 per barrel. Brent crude was down 1.4% at $78.41. All three major Wall Street indexes dropped overnight by close to or over 1%. Traders bet on the Federal Reserve raising interest rates next after the new Fed chair Kevin Warsh emphasized the need to curb inflation, and other policymakers predicted rising interest rates in the second half of the year. The Dow Jones Industrial Average dropped 507.12 points or 0.98% to 51,492.55, while the S&P 500 fell 91.25 or 1.21% to 7,420.10, and the Nasdaq Composite declined 354.69 or 1.34% to 26,021.66. The yield on 10-year Treasury bills rose to 4.471% from its U.S. closing of?4.463% Wednesday. The 2-year yield rose to 4.1759%, compared with a U.S. closing rate of 4.163%. As with the Fed, the Bank of England will meet on Thursday. No change is expected in interest rates, but the focus will be on the tone of the policymakers' comments. The dollar rose by 0.01% to 160.65 yen after hitting 160.79 overnight. This is the highest level since July 2024. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) fell by 0.03%, reaching 100.32. The euro rose?0.1% to $1.1511. Recent drops in oil prices are easing concerns about a slowdown in the economy, particularly in energy-importing Europe. The International Energy Agency stated on Wednesday that the oil market will move into a significant surplus in 2027, after recovering from the Strait of Hormuz closure. Spot gold is currently trading at $4,309.75 an ounce. Bitcoin gained 0.16%, reaching $64,464.75. Ethereum rose by 0.37% to reach $1,752.54. (Reporting and editing by Jamie Freed; Satoshi Sugiyama)
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Oil slips again as US, Iran sign peace deal
Early trading on Thursday saw oil prices fall after the U.S. signed an interim deal with Iran that would end the Iran War, reopen Strait of Hormuz, and waive U.S. sanction s on Tehran's crude, ending the largest energy supply disruption ever. Brent crude futures fell 89 cents or 1.12% to $78.66 per barrel at 0005 GMT. U.S. West Texas Intermediate dropped 98 cents or 1.28% to $75.81 per barrel. The benchmarks have resumed their fall, reversing the gains made on Wednesday after U.S. president Donald Trump stated that he would resume his bombing campaigns if Iran's leaders "don't behave". The sell-off continued as energy markets continued aggressively pricing in a faster than expected return?of Iranian crude barrels after the recent U.S. -Iran Memorandum of Understanding," IG Market Analyst Tony Sycamore stated in a report. The?14 point memorandum starts a 60 day negotiation period in which Iran will allow?toll free passage through the Strait?of Hormuz - a crucial oil and gas shipping lane. The agreement calls for the Strait of Hormuz to be reopened to full capacity in 30 days. The preliminary agreement defers some of the most difficult issues, such as Iran's nuke program. It also requires that the U.S.?and its partners come up with $300 billion in financing for Iran's recovery. The IEA warned on Wednesday that if the agreement is implemented successfully and the strait reopened the supply crisis this 'year could become a significant glut in 2027. In its monthly report, the IEA predicted that the supply would outstrip the demand by 5,05 million barrels a day next year, as Middle East oil returns back to the'market. The U.S. Federal Reserve also weighs whether it needs to increase interest rates to curb inflation later this year, which could slow down economic growth and impede oil demand. Wednesday's projections revealed that nine of the 19 Fed policymakers think a rate increase will be necessary. Three months ago, none held this view. Colleen howe reports.
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Stocks fall, bond yields increase; Fed maintains rates but projects hike later this year
The Federal Reserve kept the benchmark rate unchanged and officials now expect to raise borrowing costs later this year due to rising inflation fears. Kevin Warsh, the Fed's new chief, took over last month and opened a whole new era. In his first press conference, he said that the forward guidance wasn't "well-suited" to current economic conditions. Officials projected that the policy interest rate would increase by a quarter percentage point at the end of the year. The rate has been in the range of 3.50-3.75 since December last year. A revised policy statement did away with language that indicated the possibility of "further reductions" in borrowing costs for this year. According to CME Group’s FedWatch tool, after the meeting, the short-term U.S. rate futures priced in a higher probability that the Fed would raise rates as soon as September, rather than keep them at their current level. Kay Haigh is global head of Fixed Income and Liquidity Solutions at Goldman Sachs Asset Management, New York. She said that today's meeting confirmed the Fed's recent shift to a hawkish stance was not only about higher energy prices. "Despite recent oil price declines, half of members of the FOMC are expecting rate hikes this year due to strong inflation and labor market data." The 10-year Treasury yield rose 3 basis 'points to 4.461%, and the 2-year Treasury yield, which is most sensitive to market expectations of Fed rate actions, jumped 16 basis points to 4.207%. This was its highest level since February 2025. Treasury yields had been little changed in the morning. The Dow Jones Industrial Average dropped 507.12 points or 0.98% to 51,492.55, while the S&P 500 lost 91.25 or 1.21% to 7,420.10, and the Nasdaq Composite declined 354.69 or 1.34% to 26,021.66. SpaceX shares are down for the very first time since their debut on the market last Friday. The stock fell 4.9%. MSCI's global index of stocks fell 7.18 points or 0.64% to 1,121.12. The pan-European STOXX 600 ended the day up 0.52%. As with the Fed, the Bank of England will meet on Thursday, and no policy change is expected. Instead, the focus will be on the tone of the policymakers' comments. Following the Fed announcement, the?dollar gained strength across the board. The dollar index (which measures the greenback versus a basket currencies, including the yen, and the euro) rose by 0.5% to reach 100.01, its highest level in almost a week. The euro dropped 0.5% to $1.1549. The oil prices rose. U.S. president Donald Trump defended the interim agreement he made with Iran. He said it had prevented a global economic disaster, but warned he would launch new attacks if Tehran did not honour its commitments. Brent crude futures rose 59 cents or 0.75% to settle at $79.55 per barrel. U.S. West Texas Intermediate increased 74 cents or 0.97% to $76.79. Recent drops in oil prices have begun to calm fears of an economic slowdown, especially in Europe which imports energy. International Energy Agency (IEA)?said that the oil market would move into a significant surplus in 2027, after recovering from the Strait of Hormuz closure. Gold spot fell by 1.71%, to $4255.97 per ounce. Investors digested the data that showed U.S. Retail Sales jumped by 0.9% in May after a downwardly-revised 0.4% increase in April.
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Europe BEV shares reach record high in May
In May, battery electric vehicle registrations in Europe hit a record market share, continuing a strong growth due to?subsidies and policy support?and higher petrol prices. Data from E-Mobility Europe (EME), New Automotive and Fier Automotive revealed that battery electric vehicle registrations in 17 European markets increased by 34.4% compared to the previous year, reaching 212,387 cars in May. This gives fully electric vehicles a market share of 23.6%. This followed growth of 34.1% in March and 51.3% in April, according to data from E-Mobility Europe. In a press release, Chris Heron, secretary general of E-Mobility Europe said that "consumers and governments are both responding to Europe's energy challenge" by buying electric cars. These vehicles reduce fuel costs, and oil imports, permanently. Data showed that local manufacturers had seven of the top 10 best-selling BEV models, despite increasing pressure from Chinese competitors. France had a market share of 29.5% in May for electric cars, Germany was at 25% and 'BEV registrations' grew by 41% during the first five months. Italy is the fastest growing market. Registrations have doubled in this year alone, thanks to new subsidies. Northern Europe and Benelux also remained strong.?With BEV market shares?reaching as high as 78.7% in Denmark.
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LME Issues Notice on Warranting of Russian Copper, Cobalt in EU
In a Wednesday notice, the London Metal Exchange stated that Russian-origin cobalt and copper could only be'registered' in its listed warehouses within the European Union with proof they were imported before July 25, 2026. The exchange stated that the notice was intended to update the market on the measures it is implementing to comply a EU Council Regulation which amends existing sanctions and prohibits "the purchase or import of cobalt or copper into the EU if they are exported or imported from Russia." The LME stated that it has not warranted any cobalt or Copper of Russian Origin at an LME listed warehouse in the EU since more than a yea, and that they do not expect this process to have'significant market impact. The EU's 20th set of sanctions against Russia was adopted on April 23. It included a ban of imports of Russian scrap metals such as aluminium, nickel bars, iron ore concentrates and ores, unrefined copper, etc. (Reporting by Ishaan Arora in Bengaluru; Editing by Paul Simao)
Gold increases by over 1% on US-Iran interim agreement
Gold rose more than 1% on Thursday, recovering losses from the previous session, as oil prices dropped following an interim agreement between the U.S. and Iran, which dampened inflation expectations.
As of 0242 GMT spot gold rose 1.4% to $4,316.42 an ounce after falling 1.7% on Tuesday. U.S. Gold Futures for August Delivery fell 1% to $4336.70.
The reason for this short unwinding was also the 'positive news' coming out of the Middle East which caused oil prices fall, said Kelvin Wong, senior market analyst at OANDA. On Wednesday, the United States and Iran published their interim agreement. The?U.S. Donald Trump has threatened to resume attacks on Iran and kill Iranian officials, if they fail to honor their commitments. The 14-point agreement extends a ceasefire that was announced in April for another 60 days, allowing both sides to negotiate an end to the conflict.
After Trump's statement that he would resume his bombing campaign against Iran if its leaders "don't behave", oil prices dropped, reversing the gains made on Tuesday.
The rise in oil prices has sparked inflation fears and raised expectations for higher interest rates. Gold tends to lose its appeal when interest rates are high because it doesn't yield any interest.
Wong stated that "I expect gold to remain muted to the upside due to the fact that the market has now repriced the possibility of the Federal Reserve kicking off an interest-rate-hike cycle." Nine out of 19 U.S. policymakers believe that they will have to?raise the policy rates this year. This is according to projections made on Wednesday, after the Fed announced their decision to keep the policy rates in the current range of 3.50% to 3.75%.
CME FedWatch Tool shows that traders now expect a U.S. rate hike of 85% in December. This is up from 61% before the Fed's decision.
Silver spot rose by 1.8%, to $69.18 an ounce. Platinum gained 1.2%, to $1,757.53, while palladium rose 1.3%, to $1,329.99. (Reporting and editing by Subhranshu sahu, Sherry Jacob Phillips, and Noel John from Bengaluru)
(source: Reuters)