Latest News
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India's TCS rises on revenue beat and AI momentum Fueling Recovery Hopes
Shares of India's largest?software exporter,?Tata Consultancy Services, advanced by more than 4% the day after beating a?quarterly revenue estimate.?Deal wins and increasing AI-related revenues raised hopes for a slow earnings recovery. TCS traded 1.8% higher, at 2,086 Rupees, at 9:59 am IST in Mumbai. This boosted the?Nifty50 index by 1.1%. The IT index rose about 2%. The results of the IT company kicked off India's first-quarter earning season, which saw earnings downgrades due to a slowdown in client spending and concerns that AI could disrupt the business models of software companies. TCS's quarterly sales increased 14% over the previous year to 722.75 billion rupies ($7.58 billion). CEO K Krithivasan was "optimistic", he said, about a turnaround of tech spending by manufacturing and life science clients in the second quarter. The order book of the IT firm was $9.5 billion, while its AI revenue rose to $2.6 billion annually. CLSA said the ?firm's revenue ?growth was better-than-expected, helped by strength in banking, financial services and insurance, high-tech and ?regional markets. HSBC stated that the outlook for manufacturing, pharma and Energy was "incrementally optimistic". Nomura analysts said that despite macro-uncertainty, a near-term growth rebound was'reasonably visible' thanks to a $800 million megadeal.
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MORNING BID EUROPE - Japan calling capital home
Ankur Banerjee gives us a look at what the European and global markets will be like today. This is a much-anticipated'move' to encourage repatriation. Satsuki Katayama, Japan's Finance Minister, said the country wanted to encourage pension funds to invest "substantially more" in domestic financial assets. GPIF is the largest pension fund in the world, with assets of 293.4 trillion yen. Financial markets closely follow its movements, since any changes in strategy are often mirrored by other funds. The Takaichi Administration's fiscal expansion and the possibility of political interference with monetary policy sparked concerns, which led to a sell-off in Japanese government bond (JGB) yields reaching multi-decade highs this week. The 'latest broadside' lifted the yen and eased yield pressure, keeping the Nikkei on track. After Katayama's remarks, the yen firmed up more than 0.5% and reached 161,45 against the U.S. Dollar. The AI theme has returned ahead of the U.S. debut of chip bellwether SK Hynix, which is the AI poster child. SK Hynix raised $26.5 billion as part its offering. After a strong run, chip stocks have lost a bit of'momentum' in recent weeks as investors worry about AI spending, high valuations, and the pace at which profits are growing. Investors are awaiting the debut re-rating of SK Hynix against its U.S. competitor Micron. Retail investors will also be a focus. Micron is trading at a price-to earnings ratio of 6.66 in the 12-month future, compared to SK Hynix’s 5.5. The following are the key developments that may influence Friday's markets: Economic events: June data on inflation in Germany and France. (Edited by Jamie Freed; Ankur Banerjee, Singapore)
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The dollar is weakening, and the Middle East has not escalated.
The weakened?dollar helped copper to rise on Friday. This eased fears about a spate of?tit-fortat strikes between Iran and the U.S. The benchmark three-month copper price on the London Metal Exchange rose 0.29% to $13,528 per metric tonne by 0300 GMT. The Shanghai Futures Exchange's most traded copper contract rose by 1.61%, to 103950 yuan (about $15,334.80). This week, the LME saw a 1.2% rise. It was a volatile week in which fears of inflation and macroeconomic risks were raised by a new round of fighting between the U.S. The dollar is on course to drop for a third day in a row, which will support copper prices by making them cheaper for buyers who use other currencies. John Williams, the New York Federal Reserve president, downplayed on Thursday the inflationary impact caused by the latest Middle East conflict. Copper, a metal that is dependent on growth and heavily influenced by inflation and interest rates, has a high price. Interest rates that are higher dampen the demand for industrial metals like copper by reducing economic activity. Aluminium gained 0.55% at the LME, and 0.67% at the SHFE. Prices for light metals are expected to reach their highest level since April with a rise of more than 4% on the LME. Stockpiles of aluminium have been dwindling due to disruptions in Middle East supply. The Middle East, which is home to 9% of the world's smelting capacity, has lost production. This has helped push the market into deficit. Total LME aluminium stocks The lowest levels since 2022. LME zinc rose 0.06% after rallying over 3% on Friday?on reports of a fire at a South Korean Smelter. The SHFE price also gained 1.32%. Lead added 0.18% to the?LME, nickel added 0.29 and tin ticked up by 0.1%. Nickel gained 1.13% while tin grew 2.38%.
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Gold prices to drop this week as Gulf attack reinforces rate-hike betting
Gold prices rose on Friday as the dollar weakened, but were on course for a weekly decline on fears that the escalating tensions between the U.S. and Iran could fuel inflation. This would keep the U.S. Federal Reserve in a hawkish policy direction. As of 0303 GMT spot gold was up by 0.2%, at $4,128,92 per ounce. It is heading for a weekly decline of over 1%. U.S. Gold Futures for August Delivery were unchanged at $4,139.50. Dollars were at their lowest level in a week, which made greenbacks priced bullion more accessible to holders of other currencies. Tim Waterer is the chief market analyst for KCM Trade. He said that gold?is consolidating today after yesterday's gains. Traders are hesitant to commit further upside due to the?prevailing uncertainties over US-Iran relationships. Oil prices are on course for a weekly gain as U.S. armed forces and Iran continue to exchange strikes. Iranian armed forces launched attacks on U.S.?military?infrastructures in Gulf states after U.S. strikes against Iran's eastern and southern provinces. The recent round of strikes have fueled inflation concerns, and reinforced the likelihood that the U.S. Federal Reserve will raise interest rates in this year. According to CME’s FedWatch tool, the markets are now pricing in a 64% probability of a September rate hike. This is up from 54% just a week ago. Gold is often seen as an inflation hedge, but it can lose its appeal when interest rates are high. "I think gold will continue to be attractive on dips, as long as oil remains at current levels." Waterer said that a sharp rise in oil prices could rekindle inflation and interest-rate fears, which would hurt gold. The minutes of the Fed's meeting in June, which were released earlier this week, revealed that policymakers are increasingly concerned about inflation. HSBC cut their average gold price predictions for 2026-2027 on 'Thursday. They cited a hawkish change in 'U.S. Expectations about monetary policy and a stronger dollar were cited as reasons for HSBC's downward revision of its average gold price forecasts for 2026 and 2027. Silver spot rose 0.8%, to $60.46 an ounce. Platinum gained 1.6%, to $1.636.68. Palladium increased 1.6%, to $1.267. All three metals are on course for a loss this week.
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Japan's Nikkei gains 2% as AI rally lifts yen and bonds
The Nikkei index rose on Friday due to a rally of AI-related stocks. Also, the currency and bond markets in Japan advanced as a result of a possible reorientation in the investment strategies by Japan's large pension funds. The benchmark Nikkei 225 rose by 2% to 69,121.02 while the Topix grew by 0.76%, reaching 4,050.82. The yield on Japan’s 10-year government bonds fell by 10 basis points to 2.775%. This is a decline from the three-decade high. The yen gained 0.43% versus the dollar to 161.69. Wall Street tech shares soared after Micron Technology announced plans to invest over $250 billion in the U.S.A. through 2035. Shuutarou Yasuda is a market analyst with Tokai Tokyo Intelligence Laboratory. He said that Japanese stocks were influenced by the overnight rally in U.S. tech stocks. The market became optimistic about the U.S.-Iran peace talks and oil prices dropped. The Nikkei gained the most thanks to chip-related stocks, with Sumco soaring 15.40% and Advantest gaining 8.54%. SoftBank Group, an investment conglomerate in the tech sector, rose 11.33%. The rise in bond prices and currency follows comments made by Finance Minister Satsuki Catayama, who said on Thursday that the Government would investigate measures to encourage pension funds to increase their investments in domestic financial assets. Bonds and the yen both experienced a boost in sentiment as the prospect of Japan's biggest pension investors investing more money into local markets was raised. "Katayama’s remarks helped reverse the?selling trends of Japanese government bonds and the yen," Masahito. Sugawara said, a senior analyst at Daiwa Securities. "Now, half of the assets held by Japanese pension funds is invested in foreign assets. The market bet that a possible change in asset allocation would favor Japanese assets. Fast Retailing?fell 4.23% in a single day, its steepest drop since November 2025. Tokio marine Holdings lost 3.02%. The Nikkei225 saw 116 stocks advance against 107 declining ones, while two stocks remained unchanged.
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Gold gains more than 1%, but focus shifts to Middle East tensions
Gold prices rose by more than 1% 'Thursday, as bargain hunters emerged after the price fell to a one-week low. Investors also kept an eye on developments in Middle East. Gold spot rose by 1.3%, to $4130.58 an ounce at 2:05 pm EDT (1805 GMT) after Wednesday's drop to its lowest price since July 1. U.S. Gold Futures for August Delivery settled 1.4% higher, at $4.140.80 an ounce. After yesterday's drop, there is a lot of bargain-hunting going on. Bob Haberkorn is a senior market strategist with StoneX. He said that the Fed will be the primary driver of gold in the short-term. Haberkorn said that if the Fed adopts a more dovish approach to interest rates then gold and silver will move higher. If it indicates a need to increase rates further, both metals are likely to be under pressure. The geopolitical situation is also tense. After U.S. airstrikes in Iran's eastern and southern provinces, the?Iranian military launched attacks against U.S. infrastructure in Gulf neighbouring states. The war may cause higher energy prices, which can lead to inflationary pressures. This could also fuel expectations that central banks will raise interest rates. Gold is often seen as a hedge to inflation. However, rising interest rates tend to make gold less attractive by increasing the appeal for assets that pay interest. According to the CME FedWatch Tool, traders are pricing in a 62% probability of a rate hike in September. The minutes of the Federal Reserve's June meeting showed that inflation was a growing concern. A few policymakers saw grounds for an increase in rates before the central bank decided to hold them. Investors will also closely follow?next weeks inflation data as well as Fed Chair Kevin Warsh’s congressional testimony to gain further insight on the direction of monetary policy. In a Thursday note, HSBC reduced its average 'gold price forecasts' for 2026-2027 to $4,560 and $5,925 respectively. Silver spot gained 3.4%, to $60.25 an ounce. Platinum rose 2.3%, to $1,615.25, while palladium rose 3.3%, to $1,253.25. (Reporting by Sukanya Mitra in Bengaluru; Editing by Joe Bavier, Diti Pujara and Jonathan Ananda)
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US EPA suggests easing Biden heavy truck emissions regulations
The U.S. Environmental Protection Agency (EPA)?on Wednesday proposed to ease heavy-truck and engines emissions regulations?adopted by Democratic President Joe Biden under 2023. This will allow for the sale of certain engines that don't meet the stricter tailpipe?rules. The EPA has proposed reducing the requirements for emissions warranties and allowing additional time to implement longer regulatory useful lives. The EPA has noted that certain 2027 medium- and heavy-duty engines have faced technical challenges. It proposes allowing manufacturers to sell their current products until they complete the development of 2027 compliant engines. EPA stated that even after its proposed changes the reduction in smog-forming Nitrogen?oxides would still be almost 90% of the forecasted Biden emission standards. EPA Administrator Lee Zeldin'said that the existing requirements are unworkable and would increase costs, resulting in fewer options. According to him, the rule will'save up to $6,000 per truck or $12 billion. Environmental groups claim that the proposed changes will increase pollution and harm the public's health. Environmental Defense Fund said in a press release that the Trump EPA's proposal to weaken clean air protections would result in more health problems and higher costs. "EPA should abandon its proposal and maintain strong pollution protections for new heavy duty vehicles. The Trump administration is taking a number actions to reverse Biden regulations to require cleaner and more electric vehicles. Last month, ?the EPA sent the Republican-controlled Congress landmark California vehicle emissions rules for potential repeal, ?its latest effort ?to prevent tougher state tailpipe requirements. Trump's administration also passed rules that make it easier for automakers sell more gasoline powered cars and trucks while making it costlier to buy electric vehicles. The White House also significantly weakened federal tailpipe regulations. Congress passed legislation to end penalties in 2025 for vehicles not meeting tailpipe'standards. This saved automakers hundreds of millions if dollars for selling cars that were not compliant with pollution rules. In February, the EPA repealed a scientific conclusion that greenhouse gas emissions are harmful to human health and removed federal tailpipe emission standards for cars.
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Wall Street rises and oil prices fall as Middle East conflict returns
Wall Street surged Thursday, despite a drop in oil prices. Investors focused more on the strength of technology shares and the economy as compared to concerns about a renewed military campaign in the Middle East. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all rose in midday trading. The MSCI index of global stocks was up by 0.72%. Stocks rose in spite of renewed conflict in Middle East. Both the U.S. & Iran announced military strikes in Gulf, as their fragile interim peace agreement frayed. The oil prices that jumped on Wednesday when the U.S. announced its strikes, fell on Thursday, as investors awaited more clarity. U.S. crude oil was down by 2.14% last week at $71.94 per barrel. Brent fell by 2.44% to $76.12 a barrel. U.S. data on Thursday painted a mixed image. The number of Americans who filed for unemployment benefits dropped last week. However, a separate report showed that home sales had unexpectedly declined as house prices reached a record-high. The Labor Department reported on Thursday that initial claims for state unemployment benefits fell by 2,000, to 215,000 seasonally-adjusted for the week ending July 4. The economists polled had predicted 218,000 claims for this latest week. The National Association of Realtors' report found that tight inventories were driving up prices, complicating sales and highlighting the affordability issues facing many potential homeowners in the U.S. Last month home sales fell?2.4% to a seasonal adjusted annual rate of 4,09 million units. The economists surveyed by predicted that home resales will increase to a rate 4,20 million units. Treasury markets saw benchmark 10-year U.S. Treasury Yields drop to 4.535% for the day. They had started the month at around 4.40%. The dollar index, which measures greenbacks against a basket including the yen, euro and yen, fell 0.14% at 100.88. The pound rose 0.17%, to $1.3409 after hitting a low of seven months in late June. TECH FOCUS Global mood was also boosted by a report that China may allow limited access to AI leaders Nvidia's chips H200 and reports that SK Hynix’s $28 billion U.S. listing of shares was more than'seven times' oversubscribed. South Korean chipmaker plans to price their American Depositary Receipts (ADRs) at $149 in order to raise $26.5 billion. The IPO of SpaceX, the record-breaking $85.7 Billion IPO, last month, was the second largest share sale in the world. In midday trading the Philadelphia SE Semiconductor Index gained 4.6%, indicating that it will be a second consecutive day of gains. The June FOMC minutes released on Wednesday, the first under new Federal Reserve Chairman Kevin Warsh showed some concerns over inflation. According to CME FedWatch, the implied probability that a Fed rate hike will occur this year has increased to 87%. John Williams, the New York Fed president, said on Thursday that he didn't expect sustained increases in energy prices throughout the year. As oil prices fell, gold edged up to $4132.78 per ounce. (Editing by Ni Williams, Ros Russell and Tomasz Janowsk; Additional reporting by Stella Qiu and Marc Jones, Sydney)
Twelve people have died in wildfires that raged through southern Spain, according to the emergency agency
The Emergency Agency of Andalucia announced early Friday that 12 people had died in a blaze in Almeria, southern Spain.
Antonio Sanz, Minister of Presidency, health, and Emergencies, called the fire the "most devastating fire in our region to date"? and described the situation as "unprecedented".
Six deaths were reported earlier due to the wildfire.
In a recent post on X, Juanma Moreno wrote: "Our deepest sympathies to the families of the six people that lost their lives at Los Gallardos. And?the affection of all of us for?the municipalities that were affected by the fire."
Los Gallardos, a municipality in the Almeria Province of southern Spain's Andalusia region, is known for its wildfires. This blaze comes after a wildfire that was burning out of hand in southern France earlier this week, which forced the evacuation of more than 10,000 people from a dozen small?towns? and villages near Spain's border.
The early summer heatwaves in western Europe between?May? and?June? have parched large areas of land, making it particularly vulnerable to fires this year.
The World 'Meteorological Organisation has stated that Europe is warming at a rate more than double the global average. This makes prolonged heat events increasingly likely. (Reporting and editing by Kim Coghill in Bengaluru, and Lincoln Feast.
(source: Reuters)