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European stocks are up on the back of optimism about earnings as traders consider Iran proposals
Investor sentiment recovered on Thursday as optimism about company earnings pushed stock markets to record highs. Traders interpreted a proposed agreement between Iran and 'Oman as progress in ending the U.S. - Iran?conflict. Wall Street stock markets fell overnight and during?Asian hours as investors became cautious about AI and certain earnings, including those of chipmakers Sandisk, Advanced Micro Devices, and data storage companies Western Digital, failed to meet expectations. The rally continued as European markets opened. Media and telecom stocks drove the pan-European STOXX 600 to a new all-time high. The STOXX 600 was last up by 0.4% for the day, at 0912 GMT, while London's FTSE 100 rose 0.3% and France's CAC40 was up by 0.8%. Germany's DAX was also up 0.1%. Hani Redha of MetLife's multi-assets portfolio manager said that the overnight losses are a natural correction in a rally which is set to continue. Wall Street has been pushed to new highs by strong earnings and renewed enthusiasm for AI-related technology stocks. He said: "This is part of a general hangover after a great party we had in the market during the last few sessions." "We are still pretty positive... I do not expect the same pace of returns as we have seen in the past few weeks but we should still be?in an environment that is conducive to risk assets and equities, particularly." IRAN-OMAN PROPOSED DEAL Oil prices dropped below $80 a barrel after reports of a?proposed deal between Iran and Oman that could?help to end the U.S.Iran conflict by giving Tehran control of ships entering the Gulf via the Strait of Hormuz. The U.S. has not commented on the proposal. It would be the largest concession to Iran ever. Brent crude futures rose 0.3% to $79.70 a barrel on the day, while U.S. West Texas intermediate futures gained 0.2% to $75.37. MetLife's Redha stated that the U.S. - Iran conflict was one of the major factors influencing the markets this year along with AI expenditure, but the market is?becoming more sensitive to it. "Overall, I would say that we have been less concerned about what appears to be negative developments in the region. "It is a negative when oil prices spike, but I don't believe that it will derail the cycle," said he. The yields on 10-year German government bonds were unchanged, and the yield on euro zone government bonds was only up by a little more than one basis point. Later in the session, nearly EUR13 billion ($15.00 million) of French government debt is expected to be traded. The currency markets were also quiet. The euro fell by less than 0.1% to $1.1540 while the U.S. Dollar Index rose 0.1% for the day, at 99.767. The Japanese yen is at 157.85 per dollar, after having fallen slightly in the past two sessions. It has also given back some gains that it had made following the U.S. government's intervention on Friday. Investors are waiting for the U.S. payroll data, which is due in the afternoon, to get an idea of what the Federal Reserve will do with interest rates. Federal Reserve Bank of San Francisco President Mary Daly, who is not a member of the Federal Open Market Committee, said that she "completely supported" the decision made last week by the Federal Open Market Committee to keep interest rates unchanged while the central bank collects more information about how to respond to an inflation rate well above the 2% target.
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Dealers body: India's E20 gasoline rollout is pushing buyers to alternative-fuel vehicles
The country's auto dealers' body said on Thursday that consumer reluctance to switch from E20 petrol in India is driving demand for alternative fuels. Sales of CNG, electric and hybrid vehicles are "striking distances" away from petrol models. The Federation of Automobile Dealers Associations reported that alternative-fuel passenger cars accounted for 40.59 percent of the total sales in December, only 1.09 percentage points behind petrol models, which accounted 41.68%. India's Prime Minister Narendra Modi has announced the introduction of E20 petrol, which requires fuel sold at 90,000 retail outlets contain 20% ethanol. This replaces the previous E10 blend. FADA stated that consumer uncertainty about the transition drove buyers to CNG, hybrid, and electric vehicles. They added that better communication regarding the E20 launch could help convert petrol vehicle buyers who are hesitant. Some consumers have criticised the transition, saying that it will affect fuel efficiency and vehicle performance. FADA stated that "Passenger vehicles?enter the month of August with a healthy pipeline and new launches. But they need a clear and confident consumer communication about the E20 fuel switch to convert hesitant petrol purchasers." The dealers' association said that overall passenger vehicle retail sales increased?19.1% on an annual basis to 416.555 units in July. This was due to a?tax-cut-driven demand and the launch of new models. Reporting by Kashish and Abhinav in Bengaluru, editing by Sonia Cheema
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Governor of Yaroslavl, Russia says that oil refinery is on fire in Russia after a drone attack by Ukraine
The governor of the region, Mikhail Evrayev said that a major refinery in Russia's Yaroslavl area is on fire following a large Ukrainian drone attack. Emergency services are working to extinguish the flames. Images posted on social media that have not been verified show plumes of black smoke rising above the facility. Evrayev stated in a statement on Telegram that the refinery’s storage tanks were struck by falling drone debris. He described this as the largest enemy attack on Yaroslavl to date, located about 250 km (160 mi) northeast of Moscow. "Today, the region successfully repelled the biggest attack by enemy drones." "All 93 drones have been shot down by electronic warfare and air defence units," Evrayev said. He claimed that four people suffered shrapnel injuries, but no one was killed. Volodymyr Zelenskiy, the Ukrainian president, said earlier in the day on Telegram that the Ukrainian military had?hit two Russian oil refineries. The Bashneft - Novoil refinery is located in the Bashkortostan republic and the Slavneft - Yanos refinery is in the Yaroslavl area. Russian officials in Bashkortostan did not immediately comment. The Ukraine has intensified its attacks on Russian refineries over the past few months. This has caused fuel shortages in many areas of Russia, which have been'stabilised' by authorities. However, some problems still remain. The refinery at Yaroslavl, which was targeted by Ukraine in the past, has a capacity of 15,000,000 metric tons per annum, or about 300,000 barrels a day. Andrew Osborn, Reporting; Andrew Osborn, Editing
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Gold nears seven-week high amid easing concerns about rate hikes
Gold reached a seven-week high on Thursday and extended gains into the fourth session as the hopes of reopening the Strait of Hormuz helped ease fears of inflation and rising interest rates. Gold spot was up 0.6% to $4,271.33 an ounce at 0843 GMT after hitting its highest level in June 18 earlier. The bullion market posted its largest daily gain since February on Wednesday, with an increase of $4,267.24 for each ounce. U.S. Gold Futures increased 0.6% to $4330.20. Gold tries to hold on to its recent gains amid increasing optimism surrounding the Strait of Hormuz. The hope for a diplomatic victory that restores oil flow is easing inflationary concerns and reducing aggressive Fed tightening betting, said Nikos Tzabouras. Senior market analyst at Tradu.com owned by Jefferies. According to a senior Iranian official and two regional officials, the proposed deal between Iran & Oman would allow Tehran to control ships entering the Gulf via the Strait of Hormuz. This could help end the five-month-long 'war' between Iran & the United States. The market expectations of a rate increase in September have dropped to 55%, from 67% just two days ago. Gold is often seen as an inflation hedge, but it can lose its appeal as a low-yielding investment in high interest rate environments. Mary Daly, the president of the Federal Reserve Bank of San Francisco, said that she "completely supports" the decision made last week by the central bank to hold interest rates constant while it gathers additional data on?how to?respond to an inflation rate well above the 2% target. Investors await the release of the U.S. July nonfarm payroll report, scheduled to be released?on Friday. ADP's national employment report revealed that U.S. private payrolls growth slowed down in July. Gold remains vulnerable to new pressures and 2026 lows. Tzabouras said that despite lingering price tensions, dissenters against rate hikes are still active. Geopolitical risks have also been finely balanced. Any diplomatic setback would quickly revive 'those negative dynamics. Silver spot fell by 0.4%, to $61.84. Palladium rose 1% to $1.376.71 and platinum was up 1.2% at $1,755.55. Both metals were up for the third session in a row. (Reporting and editing by Devika Syamnath in Bengaluru)
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Copper prices drop from 12-week highs as Chinese demand is tempered
After a recent rally of three sessions, copper prices fell on Thursday, after reaching a new '12-week high. The price increase dampened demand from the top consumer, China, and investors were taking profits. This was offset by tightening supply outside of the United States. Benchmark?copper? on the LME dropped 0.35% at $7,060.50 per metric ton by 0700 GMT after reaching $14,178 an hour earlier, its highest level since May 13. The most active copper contract on SHFE closed at 107330 yuan (15,903.33) per ton after briefly reaching the highest price since May 2014. Yangshan Copper Premium Since July 22, a measure of Chinese appetite for copper imports has dropped. It reached $106 per ton on Tuesday, an indication that buyer resistance is increasing as prices rise. Traders said that the pullback was also due to profit-taking after LME copper rose above $14,000. The supply of copper outside the United States was tight. The premium of LME cash copper to the three-month contract The price of metal widened on Thursday to $113 per ton, signaling a strong demand for immediate?available metal. COMEX inventories have risen above London benchmarks due to uncertainty over potential U.S. import tariffs. This has led metals into U.S. storage. COMEX inventories LME rose to 653,300 tonnes, or 720,140 tons, on Wednesday. SHFE Stocks have fallen. StoneX estimates that at least 1.2 millions tons of copper has entered the United States, since the Section 232 investigation was ordered on February 20, 2025. This leaves about 64% global visible inventories within the country. Nickel fell after SMM (a Chinese information hub) reported that Weda Bay Nickel received an additional nickel ore production quota for the second half of?25million tons. Eramet, a WBN owner, stated that the mine had suspended production at the end of May, after exhausting its initial RKAB for 2026 of 12 million tonnes, and they were seeking a larger allocation from Indonesian authorities. LME nickel dropped 3.06%, to $16,590 per ton. SHFE nickel ended the day at 127460 yuan, a?2.69% decline. Other?metals: LME aluminium dropped 0.14%.?Zinc fell 0.11%. Lead lost 0.19%. Tin declined 1.19%. Aluminium rose by 0.19% on SHFE. Zinc gained 1.37%. Lead added 0.06%. Tin edged up by 0.03%.
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Mike Dolan: The G7's historic role in FX is undermined by the action between Japan, US and ROI
The absence of full G7 firepower in last week's joint U.S. and Japanese intervention to support yen was as telling as the actual operation. The coordinated global show of force has been replaced by a bilateral transaction, reducing the effectiveness of the effort and lowering hopes for a "grand bargain" in exchange rates. The timing and rationale for the joint yen purchase have been the subject of reams?of analysis. Scott Bessent, the U.S. Treasury secretary and Satsuki Katayama, his Japanese counterpart have both spoken out publicly on this move and its many nuances and intentions. The?yen is still holding on to much of its initial boost amid fears over possible repeat interventions. Currency markets are left with more questions than answers. Will Bank of Japan rate increases reinforce the salvo? Why was Washington concerned about the impact of a massive Japanese interference on the U.S. Treasury Bond Market? Japan, as the largest foreign owner of U.S. Treasuries at that time, may have been forced to liquidate its Treasury holdings in order to fund an extensive, long-term dollar selling campaign. Bessent might have calculated that U.S. involvement -- the Federal Reserve providing Japan dollars through repo transactions, while the U.S. was selling euros instead of dollars -- would lower that risk. If the goal was to curb excessive weakness and speculation - a goal that is likely shared by the G7 countries - then why wasn't the entire club involved to give it more weight? This is a stark statement about the relationship within the G7 and the retreat away from multilateralism, especially in Washington and Tokyo. It even coincides with President Donald Trump’s 18-month retreat on?global military, diplomatic and trade alliances. The G7 round has been the catalyst for most coordinated exchange rate actions among major Western economies, excluding the famous Plaza and Louvre agreements of the 1980s that weakened and stabilised the dollar. The last coordinated intervention on the yen currency was to sell it after its dangerously inflated in response to the devastating earthquake and tsunami of 2011. All G7 countries played a role in this. The last time the G7 nations bought yen together was during the Asian Crisis in 1998. This was a bilateral exchange with Washington that took place shortly before the formation of the euro in 1999. The three G7 central bankers acted in concert to provide liquidity after the 2001 9/11 market shocks. G7 SHOCK and AWE The euro?s early troubles are perhaps best example of non-yen. The European Central Bank intervened late in 2000 due to steep, persistent losses against both the dollar and the yen following the formation of the euro in 1999. This campaign began as well with a collective G7 Thunderbolt. Joint euro purchases allowed the ECB continue, and eventually draw a line beneath the new common currency. Other G7 members were conspicuously absent last week, particularly as the U.S. was the only one involved in the operation. An ECB spokesperson refused to comment when contacted by despite a source who was familiar with events stating that the ECB and the Fed had spoken about this matter. This doesn't indicate much coordination and the communication seems to have been after the event. The International Monetary Fund has also not made a statement about the issue, which is responsible for monitoring exchange rate policies and external imbalances. The French-led G7 summits this year and the finance meetings did not mention exchange rate coordination, except for brief references to the standard language about excessive volatility that has been embedded in communiqués since 2017. The Evian G7 Summit conclusions in June on the global economy and trade imbalances stated that "we also reaffirm existing G7 exchange rates commitments." It didn't seem like the leaders - or their finance chiefs a month earlier - spent much time discussing the issue. Even though the yen had already reached a 40 year low. Trump's administration, which rejects multilateralism openly, seems to prefer to do things their way: through one-to-one negotiations rather than global agreements. Perhaps Prime Minister Sanae Takaichi's Japan sees it similarly. Both are bound by the bilateral trade agreements that were produced by Trump's unilateral policy last year. Japan's countervailing promise of half a trillion dollars worth of U.S. investments to secure its tariff ceasefire may have even contributed to the excessive pressure on the Japanese yen. Bessent explained that there was also a local angle. China's currency, the yuan, is the most important, but is outside of the G7's jurisdiction. This will only become a collective issue when the G20 meets in Miami,?in December. The G7 big guns have either ceased to speak on foreign exchange or they may be absorbed by the currency markets over time. Markets are now wondering if Washington's dislike of multilateralism will continue beyond the current administration, or if it will lead to increased or decreased currency volatility. The opinions expressed are those of Mike Dolan a columnist at. This column is great! Check out Open Interest, your new essential source for 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.
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Officials say six people were killed in Balakliia and Sumy by Russian airstrikes.
Authorities said that on Thursday, firefighters worked to put out fires and clear debris in the eastern Ukrainian city of Balakliia following Russian attacks on homes overnight. In the northern region of Sumy, at least '19 people were wounded and three killed in Russian airstrikes. The Ukrainian police reported on Telegram that 12? more people were injured in the city of Sumy following an attack using guided aerial bombs. Six people were injured in a 'drone attack' on a van in the southern region of Kherson. Both Russia and Ukraine deny that they have targeted civilians in the conflict sparked by Russia's invasion?of?Ukraine?in February 2022.
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SBM Offshore's revenue has more than doubled, resulting in a new upward revision of its outlook
SBM Offshore, a Dutch floating production specialist, raised its '2026 forecast for the second year in a row on Thursday. The company said that the first-half revenue had more than doubled due to the sale of FPSO One Guyana and increased activity. The company's consensus estimate of $4.65 billion was beaten by the $4.9 billion generated in revenue. Earnings before interest, taxes, depreciation and amortization (EBITDA), which is a measure of earnings, rose 92%, to $1.3 billion. The company increased its 2026 revenue forecast from $6.9 billion to $7.6 billion and raised?its EBITDA directional target from $1.8 billion to $1.9 billion. The company stated that the revenue upgrade reflected both new contracts won by Brazil's state run oil?firm,?Petrobras, and additional work completed during the period. The pro-forma 'directional backlog' increased by 14% at the end of June to $35.6 billion. The company employs a 'direction reporting' system, which "books revenue from payments made during construction phase before leases start."
What is the risk of nuclear contamination from Israel's attack on Iran?
Israel claims it wants to prevent a nuclear catastrophe in the region, which is home to millions of people as well as producing much of the oil in the world. Israel's military announced that it had hit a Bushehr site on the Gulf Coast, home to Iran’s only nuclear power plant. But later said the announcement was an error.
Here are some details about the damage that Israel has caused and what experts have to say about the dangers of contamination and other disasters.
What has Israel done so far? Israel has declared attacks on nuclear sites at Natanz, Isfahan and Arak, as well as Tehran. Israel claims it wants to prevent Iran from building an atom-bomb. Iran has denied ever wanting one. IAEA, the international nuclear watchdog, has reported damage at the Natanz uranium plant, the Isfahan nuclear complex, including the Uranium Conversion Facility and the centrifuge production plants in Karaj, Tehran and Karaj. Israel announced on Wednesday that it had targeted Arak (also known as Khondab), the location of a heavy-water research nuclear reactor. This type of reactor can produce plutonium easily, which can be used, like enriched Uranium, to make an atom bomb's core.
The IAEA reported that they had received information that Khondab Heavy Water Research Reactor had been struck, but it was not operating and had no reported radiological effects.
WHAT RISKS DO STRIKES LIKE THIS PRESENT?
Peter Bryant, professor of radiation protection science at the University of Liverpool, England, who specializes in nuclear energy policy and radiation protection, has said that he's not concerned with the fallout risk from the strikes.
He pointed out that the Arak facility was not in operation while the Natanz site was underground. No radiation leakage was reported. He said that the issue was controlling what happened in that facility. Nuclear facilities were designed to do that. He said that uranium is only dangerous when it's inhaled, ingested, or gets into your body.
Darya Dolzikova is a senior researcher at London's think tank RUSI. She said that attacks on the facilities at the front of the nuclear fuel chain - where uranium gets prepared to be used in a reactor -- pose chemical risks, and not radiological ones.
UF6, or uranium hexafluoride is the main concern at enrichment plants. She said that when UF6 reacts with the water vapour in air, it creates harmful chemicals.
She added that the weather conditions would affect how much material was dispersed. In low wind, material is likely to settle near the facility. In high winds, material will travel further, but also disperse widely.
Underground facilities have a lower risk of dispersion.
What about nuclear reactants?
A strike on Iran’s Bushehr nuclear reactor would be of major concern.
Richard Wakeford is Honorary Professor of Epidemiology, University of Manchester. He said that whereas contamination from attacks on the enrichment facilities will be "primarily a chemical issue" for the nearby areas, extensive damage of large power reactors would "be a different tale".
He added that radioactive elements could be released into the ocean or through a plume containing volatile materials.
James Acton, director of the Nuclear Policy Program for the Carnegie Endowment for International Peace said that an attack on Bushehr could "cause an absolute radiological disaster", but that an attack on enrichment plants was "unlikely" to have significant off-site effects.
He said that uranium is barely radioactive before it enters a nuclear reactor. "The chemical form of uranium is toxic, but it doesn't travel long distances. It's also barely radioactive." "Israel's attacks so far have had virtually no radiological effects," he said, despite his opposition to Israel.
Why are Gulf States particularly concerned?
The Gulf States' impact on any attack on Bushehr will be exacerbated by the possible contamination of Gulf water, putting at risk a vital source of desalinated drinking water.
According to the authorities, in the UAE, more than 80% drinking water is desalinated, and Bahrain has become fully dependent on desalinated waters since 2016. 100% of the groundwater was reserved for contingency planning.
Qatar is completely dependent on desalinated drinking water.
According to the General Authority for Statistics, in Saudi Arabia, which is a larger country with more natural groundwater reserves, 50% of water supplies will be desalinated by 2023.
Some Gulf States, such as Saudi Arabia, Oman, and the United Arab Emirates, have access to multiple seas to draw their water, but countries like Qatar and Bahrain are congested along the Gulf shoreline with no other coastline.
If a natural catastrophe, an oil spill or even a targeted assault were to disrupt a water desalination facility, hundreds of thousands would lose their access to freshwater instantly, said Nidal Ilal, Professor and Director of the Water Research Center at New York University Abu Dhabi.
He said that coastal desalination plants were particularly vulnerable to regional hazards such as oil spills and nuclear contamination.
(source: Reuters)