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Miami Herald
6 days ago
- Business
- Miami Herald
Stock Market Today: Elon Musk Speaks Out and the Globe Celebrates TACO Tuesday
It's been a choppy overnight session in the S&P futures. ThinkOrSwim Futures rallied 20 points in the early hours only to see them crashing back to even as we get closer to the market open. The big news is that President Trump took to social media to state that Xi, the Chinese leader is "extremely hard to make a deal with!!!" The assumption that a call between the two was imminent buoyed futures. Unfortunately, ADP's report on private sector payrolls showed a weaker than expected payroll increase. Just 37,000 new jobs and suggests that that the private sector is slowing in the face of so much uncertainty. Heading into market open, here's a look at the futures: ThinkOrSwim Stocks look set to open down slightly, while bond prices rally, pushing yields lower. Gold is up and Crude Oil down. Last night, I mentioned Wells Fargo (WFC) . Its shares remain 2.5% higher following the company's release from the asset growth cap imposed by the Fed in 2018 as punishment for fraudulent activities committed before the financial crisis. And, Tesla's (TSLA) Elon Musk isn't happy with President Trump. It seems as though the bromance is over. Now that Elon is out of the government, he is speaking out about the Big Beautiful Bill. Does this mean that Elon will get back to work at Tesla? In April, I said that Tesla has been a dead investment for the past five years and that the best thing Elon Musk could do was to step down. But I didn't realize that Build-A-Bear Workshop (BBW) had outperformed it! That's so comforting. What else? The Street Pro's Helene Meisler reviews global ETFs in her World Market Update published this morning. She's been bullish on Europe since November. And, while the U.S. market remains a little below all time highs, you know what isn't? The world. The iShares MSCI ACWI ETF (ACWI) hit a new high. I guess investors love TACO Tuesday, too. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Reuters
21-05-2025
- Business
- Reuters
Asian stocks edge up as US trade deals, fiscal health in focus
May 21 (Reuters) - Asian equities edged higher on Wednesday, with risk appetite contained by elevated bond yields as investors remained nervous about the fiscal outlook of major developed economies and the lack of progress on fresh trade deals. Crude prices rose more than $1 a barrel after a CNN report said that Israel was preparing a strike on Iranian nuclear facilities, raising supply concerns out of the key Middle East producing region and bringing geopolitical concerns back into focus. All eyes are also on the Japanese bond markets, a day after yields on super-long tenors surged to record highs on worries about demand for the country's debt after a weak 20-year auction. In early trading on Wednesday, the yield on 20-year bonds edged up 2 basis points, while those on the 30-year JGB slipped 1.5 bps. In stocks, China's blue-chip index (.CSI300), opens new tab was muted in early trading, while Hong Kong's Hang Seng Index (.HSI), opens new tab rose 0.58%. China said it could take legal action against any individual or organisation assisting or implementing U.S. measures that advise companies against using advanced semiconductors from China. The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab crept up 0.5%, while Japan's Nikkei (.N225), opens new tab was down 0.18%. "The markets are hungry for new catalysts to pique further risk appetite," said Kyle Rodda, senior financial market analyst at "The U.S.'s backflip on trade policy and the damage control that it went into to clean up the mess it created with the Liberation Day tariffs signals a determination to get all of this done. That's what is keeping equity valuations well supported." Data on Wednesday showed Japanese shipments to the U.S. fell in April even as exports rose for the seventh straight month, highlighting the toll President Donald Trump's tariffs could take on the fragile economic recovery in Japan. Fiscal woes were also reflected on Wall Street, with the benchmark S&P 500 (.SPX), opens new tab snapping a six-day winning streak on Tuesday, limited by a rise in U.S. Treasury yields, which were steady in Asian hours on Wednesday. A tax bill that could add about $3 trillion to $5 trillion to the U.S. federal government's mushrooming $36.2 trillion debt load is expected to be voted on later this week in Congress, just days after Moody's became the latest agency to lower the country's credit rating. Analysts also noted that any progress on new trade deals between the U.S. and its trade partners could fuel risk appetite, although concerns were that Trump's policies could have already damaged the global economy. On Tuesday, U.S. Federal Reserve officials said that higher prices were coming on the back of rising U.S. import tariffs and counselled patience before making any interest rate decisions. Traders were also wary of U.S. officials angling for a weaker greenback at Group of Seven finance minister meetings currently underway in Canada. In Europe, STOXX 50's futures were steady while FTSE 100 futures were muted, with caution setting in ahead of a consumer inflation report expected later in the day out of the United Kingdom. Economists polled by Reuters forecast the consumer price index to rise 3.3% in April from the previous month's 2.2%. The dollar index , which measures the U.S. currency against six other units, edged down 0.03% to 99.938, following a 1.3% two-day decline. The Japanese yen strengthened to 144.27 per dollar, hovering near its strongest level in two weeks. Gold prices rose on Wednesday as the dollar weakened and investors flocked to safe-haven assets. Spot gold was 0.14% at $3,293 per ounce, the highest in more than a week.
Economic Times
18-05-2025
- Business
- Economic Times
India-US trade deal, Q4 results among 6 factors likely to impact D-St activity this week
The Indian equity market experienced a significant rally, closing above 25,000 and recovering losses since October 2024, fueled by Operation Sindoor and positive market sentiment. Investors are closely watching corporate earnings, potential progress on the India-US trade deal, and foreign capital flows. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads 1. Corporate earnings 3. Foreign inflows 4. Technical outlook 5. Currency moves Tired of too many ads? Remove Ads 6. Crude Oil impact The Indian equity market witnessed a stellar rally this week with a more than 1,000 point gain on the benchmark Nifty 50. The Nifty managed to close above the 25,000 mark and recovered all the losses seen since October week started with a bang, with rapid developments over the weekend on the border front that led to a stoppage in hostilities between India and Pakistan. Operation Sindoor, conducted by the Indian armed forces, was a decisive success that translated into improved market strength in the frontline indices translated into broader market gains with the BSE Midcap/Smallcap indices gaining 6.9%/9.2% respectively.'From a technical standpoint, the current chart structure suggests that the bullish momentum is likely to extend into the coming week. We expect Nifty to move toward 25,300 in the short term, with the potential to stretch further toward 25,600,' noted domestic brokerage firm SBI Securities further noted that on the downside, the zone of 24,750-24,700 is likely to provide a cushion in case of any immediate that are likely to impact movement when markets reopen this week:Next week, the markets will focus on the remainder of the earnings market will also look out for any likely developments on the India-US trade will continue to monitor foreign capital flows, which have played a significant role in sustaining the current broken out of a three-week consolidation, the Nifty is expected to sustain its upward momentum.'The index is now targeting levels of 25,200–25,600. On the downside, the earlier resistance at 24,800 is likely to act as immediate support, with a stronger support base at 24,400,' said Ajit Mishra, SVP of Research at Religare Indian Rupee appreciated marginally by 5 paise against the US dollar, closing at 85.50. This gain was supported by a weakening dollar index and easing crude oil traded in a narrow range between 85.45 and 85.48 against the US dollar, reflecting a largely range-bound session. The dollar index hovered around 100.70, showing limited directional bias.'With no major triggers, the rupee is expected to continue trading within a broader range of 85.00 to 85.75 in the near term,' noted Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP prices have inched higher to $62.3/barrel on the back of a weaker dollar. However, any sharp gains may be capped by the potential US-Iran deal and ongoing uncertainty surrounding global trade and economic growth.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Business Recorder
15-05-2025
- Business
- Business Recorder
Oil and gas sector tax proposals for Federal Budget 2025-26
The upcoming Federal Budget 2025-26 of the country is arriving in a scenario when world is reeling from the shocks of US sanctions on the rest of the world, especially China. The trade war between two superpowers of the world has sent the world economy, particularly oil and gas sector, into a recessionary circle, whereby Crude Oil prices and refinery margins are squeezing, leading to projected closure of upstream and downstream businesses world over. Simultaneously, contrary to the expectations from the alternate sources of energy, Oil and Gas demand continues to grow. Oil and gas sector is the biggest contributor to the national economy. Upstream Exploration and Production (E&P) and downstream (Refineries and Oil Marketing Companies) contribute a substantial chunk of country's budget in the form of Petroleum Development Levy (PDL), Windfall and Discount, Sales Tax and Income Tax and other Federal, Provincial and Local Government levies and taxes. In view of its importance, the budgetary policies and measures should be designed in a way so as to boost the earning capacity of this sector. Challenges being faced by Oil & Gas sector Last year, we witnessed some positive developments in oil and gas sector of Pakistan as major international players had entered the marketing business while all the local refineries of the country were gearing to sign their respective upgrade agreements under the Pakistan Oil Refining Policy-2023 for existing/ Brownfield refineries with potential investment of around US$ 6 billion to the ailing economy of the country. Ideally, the budgetary measures should have been positively inclined to facilitate this investment environment. Unfortunately, the measures adopted were contrary to the expectations; whereby in order to resolve the operational issue of outstanding refunds of OMCs, the major petroleum products were declared as 'Sales Tax Exempt Supplies' disallowing OMCs and refineries from adjusting their input sales tax. Proposals for upcoming budget The government is urged to adopt tax measures proposed by the Overseas Investors Chamber of Commerce and Industry (OICCI), which should restore the confidence of local and foreign investors and facilitate the implementation of Pakistan Oil Refining Policy — 2023 for existing/ Brownfield refineries. The OICCI urges the government to undo the exemption of sales tax on major petroleum products; namely, Motor Spirit (Petrol), High Speed Diesel Oil, Kerosene, and Light Diesel Oil, brought through Finance Act 2024 and these should be declared as Taxable Supplies at an appropriate sales tax rate. The disallowance of input tax has increased the operating costs as well as cost of infrastructure development of the industry; impact for TY 2025 is expected to be more than Rs. 33 billion. The excessive tax burden on the formal corporate sector and especially the oil industry, which is already bearing the brunt of compliance and regulation, requires urgent review to ensure long-term sustainability and competitiveness. Further, taxation regime of E&P companies is governed under the respective Petroleum Concession Agreements (PCAs) signed by the President of Pakistan. The PCAs contain a freezing clause for pricing and taxation to provide fiscal stability and long-term investment security to E&P Companies. Imposing Super Tax on E&P companies violates the fiscal stabilization/freezing clause of the PCAs. Super Tax, originally introduced as a one-time levy, has been extended well beyond its initial scope. In light of the current economic climate and the need to support documented and responsible businesses, OICCI recommends the gradual abolishment of Super Tax in three years. Prices of Petroleum Products (High Speed Diesel and Motor Spirit — Petrol) and the margins thereon are fixed by the Government of Pakistan and cannot be changed unless approval of the relevant Ministries of the Government is obtained. This fixed margin covers all costs related to establishment, development, and set-up of the business and running of the business, including capital cost and financial costs, at the current price, the Minimum Tax eats up around 16% of OMCs' fixed margin. It's recommended that Minimum Tax applicable on Refineries and OMCs should be reduced to 0.25% and abolished in the subsequent year. Since the early 1990s, petroleum products produced by refineries have been exempt from withholding tax under the Income Tax Ordinance, 2001, with the Commissioner granting exemptions in accordance with the law. This exemption was provided because, despite the high sales volume of refineries, their profit margins are low. Due to this change, refineries are facing significant withholding tax liabilities without corresponding income to offset it. It is, therefore, OICCI's recommendation that the Commissioner's power for issuing Exemption Certificates should be reinstated. (The writer is the Managing Committee member of OICCI) Copyright Business Recorder, 2025
India Gazette
06-05-2025
- Business
- India Gazette
End consumers are unlikely to get benefits of reduced raw material prices by Consumer Companies: Report
ANI 06 May 2025, 16:46 GMT+10 New Delhi [India], May 6 (ANI): Consumer sector companies are unlikely to pass on the benefits of reduced raw material prices to the end customers and instead use this opportunity to improve their gross profit margins, according to a report by Nomura, a global financial services report added that the gross margin of such companies will start improving from second quarter of FY 26 onwards while it will be down year-over-year in the first quarter of FY26. The consumer price inflation (CPI) for the month of March saw a sharp decline, it dropped to a 67-month low of 3.34 per cent, mainly due to a significant decline in food highest moderation in raw materials (RMs) is seen in Wheat, Palm Oil and Crude Oil, while inflation is still seen in Copra, Amla, Milk and Gold.'Most raw material (RM) prices have started to moderate down after remaining inflationary over the past year. Key RMs such as palm oil, wheat and crude oil have softened rapidly by 7-10 per cent over the past month. Given gross profit margins (GPMs) are still under pressure, we believe Consumer companies will direct this softness in input cost towards improving GPM rather than cutting prices in the near-term,' the report deep into the data, in the recent quarter, palm oil prices fell by 7 per cent quarter-on-quarter (q-o-q) and 8 per cent month-on-month (m-o-m), though they are still up 20 per cent year-on-year (y-o-y). It is expected that the palm oil prices will stay stable at these levels for the next few quarters, which could help improve gross margins (GPMs) for food prices also dropped by 11 per cent q-o-q, helped by a good rabi harvest. This should further ease margin pressure for food companies, the report crude oil and HDPE prices declined by 10 per cent and 7 per cent y-o-y respectively. This is an opportunity for paint companies, as well as consumer goods companies with packaging costs linked to crude report mentioned that Robusta coffee prices eased slightly by 4 per cent q-o-q but are still up 29 per cent y-o-y. Prices of palm fatty acid distillate (PFAD), used in making soaps, fell 3 per cent q-o-q and 5 per cent m-o-m. Now, with PFAD softening, the companies in the sector will see their margins prices stayed flat q-o-q after being inflationary for a while, which should benefit food companies, the report added. (ANI)
