Latest news with #EUROSTOXX50
The Market Online
13 hours ago
- Business
- The Market Online
Defense explodes, commodities boom, gold shines: Rheinmetall, Globex Mining, and Barrick Mining benefit
Three explosive markets dominate investor interest: defense, critical raw materials, and gold. Geopolitical rifts and economic upheavals are fueling these sectors like never before in decades. Defense giants are benefiting from an unprecedented wave of rearmament. Commodity markets are experiencing a new supercycle driven by structural demand pressure and tight supply. At the same time, capital investors are fleeing en masse to the safe haven of gold, whose price is inexorably breaking new records. These trends define the investment opportunities for 2025. We, therefore, take a closer look at Rheinmetall, Globex Mining, and Barrick Mining. Geopolitical tensions and the push for European defense autonomy are fueling demand for defense equipment. Rheinmetall, a leading German technology group, is clearly positioning itself as a key beneficiary of this trend. Exploding defense budgets in NATO and the EU, driven by new security realities, offer a massive sales environment. The Company already recorded a 46% increase in revenue in the first quarter, driven by military business, which grew by 73%. While the civilian sector is weakening, the defense division is dominating this positive development. Rheinmetall is strategically well-positioned. Its focus on state-of-the-art land systems, such as battle tanks and infantry fighting vehicles, secures its technological leadership. With a record order backlog of EUR 63 billion, capacities are fully utilized in the long term. Major orders, such as for over 100 battle tanks and international expansion through new plants in Poland and the UK, underpin growth. The operating margin climbed significantly in the military segment and is expected to rise to 12-14% in 2025, driven by economies of scale and strategic portfolio optimizations. Despite strong fundamentals, the business model harbors risks. Rheinmetall's success is closely linked to ongoing geopolitical tensions and government defense spending. Unexpected peace could slow momentum. At the same time, the Company is pushing ahead with its future viability. Strategic alliances, such as the satellite joint venture with ICEYE and partnerships with companies such as Lockheed Martin and Reliance in India, are strengthening the technological base and supply chains. The development of digital battlefield solutions such as the 'Battlesuite' highlights the Company's commitment to innovation. The share price, which currently stands at EUR 1,857.00, is rising in the EURO STOXX 50. Globex Mining – Diversification and momentum in the commodities sector Globex Mining (TSX:GMX) has a broad and diversified business model. The Company has an impressive portfolio of 258 mineral projects, including 129 focused on precious metals, 70 on base metals, and 59 on promising specialty minerals. These properties cover gold, silver, copper, nickel, lithium, rare earths, and more. This is further strengthened by 106 active royalty agreements. This broad diversification across commodity classes and regions, with a focus on North America, serves as a natural risk buffer and allows for flexibility in volatile markets. The debt-free company finances its activities from cash reserves. The Company generates revenue by granting options on its projects to other companies. Ideally, the partners will bring the projects into production, and Globex will receive royalty income in return. The first quarter of 2025 documents a strong operating performance. Globex increased revenue by 23% to CAD 542,000 compared to the same period last year. This growth is mainly due to successful option agreements and project sales. The Company expects revenues of approximately CAD 5 million by the end of the year. At the same time, a robust balance sheet highlights the Company's financial strength with working capital of CAD 33.1 million and cash reserves of CAD 8.6 million (as of March 2025). These resources offer significant scope for strategic acquisitions of projects with historical resources and high-quality exploration targets. Recent developments demonstrate the effectiveness of the business model. In the James Bay region of Quebec, high-grade nickel and platinum group element discoveries of up to 19.6% Ni and 7.25 g/t PGE on Azimut Exploration's adjacent Perseus project indicate significant potential for Globex's own Tyrone property with similar geology. At the same time, the value of the 3% gross metal royalty on the Parbec gold property increased significantly. An updated measured resource estimate recorded a 29% increase to 265,800 ounces of gold. These advances demonstrate how Globex generates value through targeted exploration and its royalty model, even without in-house production. The stock is currently trading at CAD 1.38, up approximately 16% from the beginning of the year. Barrick Mining – Strong start with strategic decisions The first quarter brought solid operational and financial performance for Barrick Mining, formerly Barrick Gold. The Company reported a significant 84% increase in adjusted net earnings per share compared to the previous year. Operating cash flow of USD 1.2 billion and free cash flow of USD 375 million enabled a 5% reduction in net debt. The Company continues to create value for its shareholders through a quarterly dividend of USD 0.10 per share and share repurchases worth USD 143 million. Gold production was at the upper end of the forecast at 758,000 ounces, while copper production rose to 44,000 tonnes. The realized gold price of USD 2,898 per ounce supported margins despite scheduled maintenance in Nevada and expansion activities in the Dominican Republic. Barrick is consistently advancing its key strategic projects. At the Reko Diq copper project in Pakistan and the Lumwana project in Zambia, dedicated teams have been mobilized, long-term procurement has been secured, and engineering partners have been appointed. These investments are expected to substantially increase the Company's copper and gold production and underpin the target of 30% organic growth in gold-equivalent ounces by 2030. The expansion of the Pueblo Viejo gold mine is proceeding in parallel. The high-grade Fourmile gold project in Nevada is in the preliminary study phase, with extensive drilling targeting significant resource expansions. At the same time, Barrick is optimizing its portfolio through the planned sale of interests such as Tongon and Hemlo. The ongoing legal dispute over the Loulo-Gounkoto mine in Mali poses a significant challenge. Activities there have been suspended since January after the government blocked gold exports and detained employees. Barrick vehemently denies the allegations of tax arrears. The government has so far unsuccessfully sought the appointment of a receiver for the mine site. A decisive ruling by the commercial court in Bamako is expected in early June. Barrick emphasizes the lack of legal basis for receivership and has initiated international arbitration proceedings in accordance with the mining agreements. The Company continues to seek a fair solution through dialogue. The share is currently trading at USD 20.10. The driving forces of defense, critical raw materials, and gold will define investment opportunities in 2025. Rheinmetall, Europe's defense powerhouse, is benefiting directly from exploding defense budgets and a record order backlog of EUR 63 billion, driven by state-of-the-art land systems and international expansion. Globex Mining impresses with its unique, debt-free royalty model and a broadly diversified portfolio of 258 projects, which recently delivered strong revenue growth and flexibility in volatile markets. Barrick Mining starts with strong quarterly figures and robust cash flow but faces challenges in strategically important Mali due to an escalating legal dispute over Loulo-Gounkoto. Conflict of interest Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as 'Relevant Persons') may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a 'Transaction'). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company. In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships. For this reason, there is a concrete conflict of interest. The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies. Risk notice Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such. The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user. The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Daily Maverick
2 days ago
- Business
- Daily Maverick
Shares dither, dollar falls as trade angst persists
By Rae Wee SINGAPORE, June 3 (Reuters) – Asia shares edged cautiously higher on Tuesday while the dollar fell to a six-week low as erratic US trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed US manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. 'The May ISM showed tariff pressure is beginning to bite for manufacturers who are seeing slowing activity, longer lead times and declining inventories,' said economists at Wells Fargo. China's factory activity in May also shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating US tariffs are starting to hurt manufacturers. The gloomy global trade situation left US futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2% each. In Europe, EUROSTOXX 50 futures advanced 0.28% and FTSE futures added 0.15%. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6% higher, while Japan's Nikkei rose 0.66%. 'Trump really does have sentiment in the palm of his hands once again,' said Matt Simpson, senior market analyst at City Index. 'I suspect we'll hear about 'a really great call' or words to the effect,' he said, referring to the expected call between Trump and Xi. 'But we'll need to wait for confirmation from China, who tends to take their time on these matters. Until we get concrete confirmation, price action could be shaky and vulnerable to false breaks…we also have the June 4 deadline for 'best trade deals' from US trading partners to factor in.' In China, mainland markets returned from an extended break on a muted note, with the CSI300 blue-chip index up 0.23% while the Shanghai Composite Index gained 0.3%. Hong Kong's Hang Seng Index jumped more than 1%, rebounding from Monday's one-month low. PAYROLLS ON DECK The dollar fell to a six-week low against a basket of currencies to 98.58 on Tuesday, ahead of Friday's US nonfarm payrolls data, which will offer a timely reading on the pulse of activity in the world's largest economy. A rise in unemployment is one of the few developments that could get the Federal Reserve to start thinking of easing policy again, with investors having largely given up on a cut this month or next. The euro scaled a six-week top earlier in the session before paring some of its gains to last trade at $1.1426, while sterling dipped 0.09% to $1.3532. A softer US jobs report would be a relief for the Treasury market, where 30-year yields continue to flirt with the 5% barrier as investors demand a higher premium to offset the ever-expanding supply of debt. The Senate this week will start considering a tax-and-spending bill that will add an estimated $3.8 trillion to the federal government's $36.2 trillion in debt. 'The evidence suggests term premium being re-priced considerably higher to account for US fiscal, trade, credit, and geoeconomic risks alongside some hedge against (U.S. dollar) debasement,' said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. The dollar was up 0.35% against the yen at 143.20, reversing some of its 0.9% decline from the previous session. Bank of Japan Governor Kazuo Ueda said on Tuesday it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remains extremely high. In commodities, oil prices rose on concerns about supply, with Brent crude futures climbing 0.88% to $65.20 a barrel, while US crude surged 1% to $63.13 per barrel. Spot gold rose to a roughly one-month high of $3,392.03 an ounce.
The Advertiser
2 days ago
- Business
- The Advertiser
Shares dither, dollar falls as trade angst persists
Asia shares have edged cautiously higher while the dollar fell to a six-week low as erratic US trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed US manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. "The May ISM showed tariff pressure is beginning to bite for manufacturers who are seeing slowing activity, longer lead times and declining inventories," said economists at Wells Fargo. China's factory activity in May also shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating US tariffs are starting to hurt manufacturers. The gloomy global trade situation left US futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2 per cent each. In Europe, EUROSTOXX 50 futures advanced 0.28 per cent and FTSE futures added 0.15 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6 per cent higher, while Japan's Nikkei rose 0.66 per cent on Tuesday. "Trump really does have sentiment in the palm of his hands once again," said Matt Simpson, senior market analyst at City Index. "I suspect we'll hear about 'a really great call' or words to the effect," he said, referring to the expected call between Trump and Xi. "But we'll need to wait for confirmation from China, who tends to take their time on these matters. Until we get concrete confirmation, price action could be shaky and vulnerable to false breaks ... we also have the June 4 deadline for 'best trade deals' from US trading partners to factor in." In China, mainland markets returned from an extended break on a muted note, with the CSI300 blue-chip index up 0.23 per cent while the Shanghai Composite Index gained 0.3 per cent. Hong Kong's Hang Seng Index jumped more than 1 per cent, rebounding from Monday's one-month low. The dollar fell to a six-week low against a basket of currencies to 98.58 on Tuesday, ahead of Friday's US nonfarm payrolls data, which will offer a timely reading on the pulse of activity in the world's largest economy. A rise in unemployment is one of the few developments that could get the Federal Reserve to start thinking of easing policy again, with investors having largely given up on a cut this month or next. The euro scaled a six-week top earlier in the session before paring some of its gains to last trade at $1.1426, while sterling dipped 0.09 per cent to $1.3532. A softer US jobs report would be a relief for the Treasury market, where 30-year yields continue to flirt with the five per cent barrier as investors demand a higher premium to offset the ever-expanding supply of debt. The Senate this week will start considering a tax-and-spending bill that will add an estimated $US3.8 trillion ($A5.9 trillion) to the federal government's $US36.2 trillion ($A55.8 trillion) in debt. "The evidence suggests term premium being re-priced considerably higher to account for US fiscal, trade, credit, and geoeconomic risks alongside some hedge against (US dollar) debasement," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. The dollar was up 0.35 per cent against the yen at 143.20, reversing some of its 0.9 per cent decline from the previous session. Bank of Japan Governor Kazuo Ueda said on Tuesday it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remains extremely high. In commodities, oil prices rose on concerns about supply, with Brent crude futures climbing 0.88 per cent to $US65.20 ($A100.52) a barrel, while US crude surged one per cent to $US63.13 ($A97.32) per barrel. Spot gold rose to a roughly one-month high of $US3,392.03 ($A5,229.33) an ounce. Asia shares have edged cautiously higher while the dollar fell to a six-week low as erratic US trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed US manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. "The May ISM showed tariff pressure is beginning to bite for manufacturers who are seeing slowing activity, longer lead times and declining inventories," said economists at Wells Fargo. China's factory activity in May also shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating US tariffs are starting to hurt manufacturers. The gloomy global trade situation left US futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2 per cent each. In Europe, EUROSTOXX 50 futures advanced 0.28 per cent and FTSE futures added 0.15 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6 per cent higher, while Japan's Nikkei rose 0.66 per cent on Tuesday. "Trump really does have sentiment in the palm of his hands once again," said Matt Simpson, senior market analyst at City Index. "I suspect we'll hear about 'a really great call' or words to the effect," he said, referring to the expected call between Trump and Xi. "But we'll need to wait for confirmation from China, who tends to take their time on these matters. Until we get concrete confirmation, price action could be shaky and vulnerable to false breaks ... we also have the June 4 deadline for 'best trade deals' from US trading partners to factor in." In China, mainland markets returned from an extended break on a muted note, with the CSI300 blue-chip index up 0.23 per cent while the Shanghai Composite Index gained 0.3 per cent. Hong Kong's Hang Seng Index jumped more than 1 per cent, rebounding from Monday's one-month low. The dollar fell to a six-week low against a basket of currencies to 98.58 on Tuesday, ahead of Friday's US nonfarm payrolls data, which will offer a timely reading on the pulse of activity in the world's largest economy. A rise in unemployment is one of the few developments that could get the Federal Reserve to start thinking of easing policy again, with investors having largely given up on a cut this month or next. The euro scaled a six-week top earlier in the session before paring some of its gains to last trade at $1.1426, while sterling dipped 0.09 per cent to $1.3532. A softer US jobs report would be a relief for the Treasury market, where 30-year yields continue to flirt with the five per cent barrier as investors demand a higher premium to offset the ever-expanding supply of debt. The Senate this week will start considering a tax-and-spending bill that will add an estimated $US3.8 trillion ($A5.9 trillion) to the federal government's $US36.2 trillion ($A55.8 trillion) in debt. "The evidence suggests term premium being re-priced considerably higher to account for US fiscal, trade, credit, and geoeconomic risks alongside some hedge against (US dollar) debasement," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. The dollar was up 0.35 per cent against the yen at 143.20, reversing some of its 0.9 per cent decline from the previous session. Bank of Japan Governor Kazuo Ueda said on Tuesday it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remains extremely high. In commodities, oil prices rose on concerns about supply, with Brent crude futures climbing 0.88 per cent to $US65.20 ($A100.52) a barrel, while US crude surged one per cent to $US63.13 ($A97.32) per barrel. Spot gold rose to a roughly one-month high of $US3,392.03 ($A5,229.33) an ounce. Asia shares have edged cautiously higher while the dollar fell to a six-week low as erratic US trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed US manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. "The May ISM showed tariff pressure is beginning to bite for manufacturers who are seeing slowing activity, longer lead times and declining inventories," said economists at Wells Fargo. China's factory activity in May also shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating US tariffs are starting to hurt manufacturers. The gloomy global trade situation left US futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2 per cent each. In Europe, EUROSTOXX 50 futures advanced 0.28 per cent and FTSE futures added 0.15 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6 per cent higher, while Japan's Nikkei rose 0.66 per cent on Tuesday. "Trump really does have sentiment in the palm of his hands once again," said Matt Simpson, senior market analyst at City Index. "I suspect we'll hear about 'a really great call' or words to the effect," he said, referring to the expected call between Trump and Xi. "But we'll need to wait for confirmation from China, who tends to take their time on these matters. Until we get concrete confirmation, price action could be shaky and vulnerable to false breaks ... we also have the June 4 deadline for 'best trade deals' from US trading partners to factor in." In China, mainland markets returned from an extended break on a muted note, with the CSI300 blue-chip index up 0.23 per cent while the Shanghai Composite Index gained 0.3 per cent. Hong Kong's Hang Seng Index jumped more than 1 per cent, rebounding from Monday's one-month low. The dollar fell to a six-week low against a basket of currencies to 98.58 on Tuesday, ahead of Friday's US nonfarm payrolls data, which will offer a timely reading on the pulse of activity in the world's largest economy. A rise in unemployment is one of the few developments that could get the Federal Reserve to start thinking of easing policy again, with investors having largely given up on a cut this month or next. The euro scaled a six-week top earlier in the session before paring some of its gains to last trade at $1.1426, while sterling dipped 0.09 per cent to $1.3532. A softer US jobs report would be a relief for the Treasury market, where 30-year yields continue to flirt with the five per cent barrier as investors demand a higher premium to offset the ever-expanding supply of debt. The Senate this week will start considering a tax-and-spending bill that will add an estimated $US3.8 trillion ($A5.9 trillion) to the federal government's $US36.2 trillion ($A55.8 trillion) in debt. "The evidence suggests term premium being re-priced considerably higher to account for US fiscal, trade, credit, and geoeconomic risks alongside some hedge against (US dollar) debasement," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. The dollar was up 0.35 per cent against the yen at 143.20, reversing some of its 0.9 per cent decline from the previous session. Bank of Japan Governor Kazuo Ueda said on Tuesday it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remains extremely high. In commodities, oil prices rose on concerns about supply, with Brent crude futures climbing 0.88 per cent to $US65.20 ($A100.52) a barrel, while US crude surged one per cent to $US63.13 ($A97.32) per barrel. Spot gold rose to a roughly one-month high of $US3,392.03 ($A5,229.33) an ounce. Asia shares have edged cautiously higher while the dollar fell to a six-week low as erratic US trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed US manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. "The May ISM showed tariff pressure is beginning to bite for manufacturers who are seeing slowing activity, longer lead times and declining inventories," said economists at Wells Fargo. China's factory activity in May also shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating US tariffs are starting to hurt manufacturers. The gloomy global trade situation left US futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2 per cent each. In Europe, EUROSTOXX 50 futures advanced 0.28 per cent and FTSE futures added 0.15 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6 per cent higher, while Japan's Nikkei rose 0.66 per cent on Tuesday. "Trump really does have sentiment in the palm of his hands once again," said Matt Simpson, senior market analyst at City Index. "I suspect we'll hear about 'a really great call' or words to the effect," he said, referring to the expected call between Trump and Xi. "But we'll need to wait for confirmation from China, who tends to take their time on these matters. Until we get concrete confirmation, price action could be shaky and vulnerable to false breaks ... we also have the June 4 deadline for 'best trade deals' from US trading partners to factor in." In China, mainland markets returned from an extended break on a muted note, with the CSI300 blue-chip index up 0.23 per cent while the Shanghai Composite Index gained 0.3 per cent. Hong Kong's Hang Seng Index jumped more than 1 per cent, rebounding from Monday's one-month low. The dollar fell to a six-week low against a basket of currencies to 98.58 on Tuesday, ahead of Friday's US nonfarm payrolls data, which will offer a timely reading on the pulse of activity in the world's largest economy. A rise in unemployment is one of the few developments that could get the Federal Reserve to start thinking of easing policy again, with investors having largely given up on a cut this month or next. The euro scaled a six-week top earlier in the session before paring some of its gains to last trade at $1.1426, while sterling dipped 0.09 per cent to $1.3532. A softer US jobs report would be a relief for the Treasury market, where 30-year yields continue to flirt with the five per cent barrier as investors demand a higher premium to offset the ever-expanding supply of debt. The Senate this week will start considering a tax-and-spending bill that will add an estimated $US3.8 trillion ($A5.9 trillion) to the federal government's $US36.2 trillion ($A55.8 trillion) in debt. "The evidence suggests term premium being re-priced considerably higher to account for US fiscal, trade, credit, and geoeconomic risks alongside some hedge against (US dollar) debasement," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. The dollar was up 0.35 per cent against the yen at 143.20, reversing some of its 0.9 per cent decline from the previous session. Bank of Japan Governor Kazuo Ueda said on Tuesday it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remains extremely high. In commodities, oil prices rose on concerns about supply, with Brent crude futures climbing 0.88 per cent to $US65.20 ($A100.52) a barrel, while US crude surged one per cent to $US63.13 ($A97.32) per barrel. Spot gold rose to a roughly one-month high of $US3,392.03 ($A5,229.33) an ounce.
The Star
2 days ago
- Business
- The Star
Shares dither, dollar falls as trade angst persists
SINGAPORE: Asia shares edged cautiously higher on Tuesday while the dollar fell to a six-week low as erratic U.S. trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. U.S. President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed U.S. manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. "The May ISM showed tariff pressure is beginning to bite for manufacturers who are seeing slowing activity, longer lead times and declining inventories," said economists at Wells Fargo. China's factory activity in May also shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating U.S. tariffs are starting to hurt manufacturers. The gloomy global trade situation left U.S. futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2% each. In Europe, EUROSTOXX 50 futures advanced 0.28% and FTSE futures added 0.15%. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6% higher, while Japan's Nikkei rose 0.66%. "Trump really does have sentiment in the palm of his hands once again," said Matt Simpson, senior market analyst at City Index. "I suspect we'll hear about 'a really great call' or words to the effect," he said, referring to the expected call between Trump and Xi. "But we'll need to wait for confirmation from China, who tends to take their time on these matters. Until we get concrete confirmation, price action could be shaky and vulnerable to false also have the June 4 deadline for 'best trade deals' from U.S. trading partners to factor in." In China, mainland markets returned from an extended break on a muted note, with the CSI300 blue-chip index up 0.23% while the Shanghai Composite Index gained 0.3%. Hong Kong's Hang Seng Index jumped more than 1%, rebounding from Monday's one-month low. PAYROLLS ON DECK The dollar fell to a six-week low against a basket of currencies to 98.58 on Tuesday, ahead of Friday's U.S. nonfarm payrolls data, which will offer a timely reading on the pulse of activity in the world's largest economy. A rise in unemployment is one of the few developments that could get the Federal Reserve to start thinking of easing policy again, with investors having largely given up on a cut this month or next. The euro scaled a six-week top earlier in the session before paring some of its gains to last trade at $1.1426, while sterling dipped 0.09% to $1.3532. A softer U.S. jobs report would be a relief for the Treasury market, where 30-year yields continue to flirt with the 5% barrier as investors demand a higher premium to offset the ever-expanding supply of debt. The Senate this week will start considering a tax-and-spending bill that will add an estimated $3.8 trillion to the federal government's $36.2 trillion in debt. "The evidence suggests term premium being re-priced considerably higher to account for U.S. fiscal, trade, credit, and geoeconomic risks alongside some hedge against (U.S. dollar) debasement," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. The dollar was up 0.35% against the yen at 143.20, reversing some of its 0.9% decline from the previous session. Bank of Japan Governor Kazuo Ueda said on Tuesday it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remains extremely high. In commodities, oil prices rose on concerns about supply, with Brent crude futures climbing 0.88% to $65.20 a barrel, while U.S. crude surged 1% to $63.13 per barrel. Spot gold rose to a roughly one-month high of $3,392.03 an ounce.- Reuters
New Straits Times
2 days ago
- Business
- New Straits Times
Shares dither, dollar falls as trade angst persists
SINGAPORE: Asia shares edged cautiously higher on Tuesday while the dollar fell to a six-week low as erratic US trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. US President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed US manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. "The May ISM showed tariff pressure is beginning to bite for manufacturers who are seeing slowing activity, longer lead times and declining inventories," said economists at Wells Fargo. China's factory activity in May also shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating US tariffs are starting to hurt manufacturers. The gloomy global trade situation left US futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2 per cent each. In Europe, EUROSTOXX 50 futures advanced 0.28 per cent and FTSE futures added 0.15 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6 per cent higher, while Japan's Nikkei rose 0.66 per cent. "Trump really does have sentiment in the palm of his hands once again," said Matt Simpson, senior market analyst at City Index. "I suspect we'll hear about 'a really great call' or words to the effect," he said, referring to the expected call between Trump and Xi. "But we'll need to wait for confirmation from China, who tends to take their time on these matters. Until we get concrete confirmation, price action could be shaky and vulnerable to false also have the June 4 deadline for 'best trade deals' from US trading partners to factor in." In China, mainland markets returned from an extended break on a muted note, with the CSI300 blue-chip index up 0.23 per cent while the Shanghai Composite Index gained 0.3 per cent. Hong Kong's Hang Seng Index jumped more than one per cent, rebounding from Monday's one-month low. PAYROLLS ON DECK The dollar fell to a six-week low against a basket of currencies to 98.58 on Tuesday, ahead of Friday's US nonfarm payrolls data, which will offer a timely reading on the pulse of activity in the world's largest economy. A rise in unemployment is one of the few developments that could get the Federal Reserve to start thinking of easing policy again, with investors having largely given up on a cut this month or next. The euro scaled a six-week top earlier in the session before paring some of its gains to last trade at US$1.1426, while sterling dipped 0.09 per cent to US$1.3532. A softer US jobs report would be a relief for the Treasury market, where 30-year yields continue to flirt with the five per cent barrier as investors demand a higher premium to offset the ever-expanding supply of debt. The Senate this week will start considering a tax-and-spending bill that will add an estimated US$3.8 trillion to the federal government's US$36.2 trillion in debt. "The evidence suggests term premium being re-priced considerably higher to account for US fiscal, trade, credit, and geoeconomic risks alongside some hedge against (US dollar) debasement," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. The dollar was up 0.35 per cent against the yen at 143.20, reversing some of its 0.9 per cent decline from the previous session. Bank of Japan Governor Kazuo Ueda said on Tuesday it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remains extremely high. In commodities, oil prices rose on concerns about supply, with Brent crude futures climbing 0.88 per cent to US$65.20 a barrel, while US crude surged one per cent to US$63.13 per barrel. Spot gold rose to a roughly one-month high of US$3,392.03 an ounce.
