Latest news with #geopoliticaluncertainty
CNA
11 hours ago
- Business
- CNA
Stocks, dollar show resilience in Asia as oil gains
SYDNEY :Asian markets kept their nerve on Monday and oil prices climbed anew as the conflict between Israel and Iran showed no sign of cooling, adding geopolitical uncertainty to the world's economic troubles in a week packed with central bank meetings. The escalation came just as Group of Seven leaders were gathering in Canada with U.S. President Donald Trump's tariffs already straining ties. Yet there was no sign of panic among investors with currency markets calm and Wall Street stock futures steadying after an early dip. Oil did add 1 per cent to last week's 13 per cent surge in an inflationary pulse that, if sustained, should make the Federal Reserve even less likely to cut interest rates when it meets on Wednesday. Futures imply almost no chance of a reduction in the 4.25 per cent to 4.5 per cent rate band, and scant prospect of a move in July either. Markets will be particularly sensitive to any change in the Fed's "dot plot" path for rates. "The Committee will release a new set of economic forecasts, and we expect that the interest rate forecast 'dots', which last showed a median expectation of two cuts this year, will instead look for only one cut this year," said Michael Feroli, head of U.S. economics at JPMorgan. Markets are still wagering on two easings by December, with a first move in September seen as most likely. Data on U.S. retail sales on Tuesday will also be a hurdle, as a pullback in autos could drag the headline down even as core sales edge higher. A market holiday in Thursday, means weekly jobless claims figures are out on Wednesday. For now, investors were waiting on developments and MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1 per cent. Japan's Nikkei firmed 0.8 per cent and South Korean stocks added 0.5 per cent. Chinese blue chips added 0.1 per cent as data showed retail sales rose 6.4 per cent in May to handily top forecasts, while industrial output was in line with expectations. S&P 500 futures rose 0.1 per cent and Nasdaq futures gained 0.2 per cent, recovering from an early dip. EXPOSED TO OIL European markets were more pressured by the region's reliance on oil imports and EUROSTOXX 50 futures slipped 0.2 per cent, while DAX futures lost 0.3 per cent. FTSE futures were little changed. Yields on 10-year Treasuries were a shade higher at 4.41 per cent, showing little sign of safe haven demand. In currency markets, the dollar firmed 0.2 per cent on the Japanese yen to 144.39, while the euro dipped 0.1 per cent to $1.1530. The spike in oil prices is a negative for the yen and euro at the margin as both Japan and the EU are major importers of energy, while the United States is an exporter. Currencies from oil exporters Norway and Canada both benefited, with the Norwegian crown hitting its highest since early 2023. "We should expect that economies with a positive energy trade balance should see their currencies benefiting from the shock to oil prices," noted analysts at Deutsche Bank. "It's notable the dollar is in this category, highlighting how the U.S. has moved from a net energy-importer to a net exporter in recent years." Central banks in Norway and Sweden meet this week, with the latter thought likely to trim rates. The Swiss National Bank meets on Thursday and is considered certain to cut by at least a quarter point to take rates to zero, with some chance it may go negative given the strength of the Swiss franc. The Bank of Japan holds a policy meeting on Tuesday and is widely expected to hold rates at 0.5 per cent, while leaving open the possibility of tightening later in the year. There is also speculation it could consider slowing the rundown of its government bond holdings from next fiscal year. In commodity markets, gold was getting the safe-haven bid from Mid-East tensions and rose 0.5 per cent to $3,450 an ounce. Oil prices were underpinned by fears the Israeli-Iran conflict could spread and disrupt exports from the region, particularly through the vital Strait of Hormuz.
Zawya
11 hours ago
- Business
- Zawya
Stocks, dollar show resilience in Asia as oil gains
SYDNEY: Asian markets kept their nerve on Monday and oil prices climbed anew as the conflict between Israel and Iran showed no sign of cooling, adding geopolitical uncertainty to the world's economic troubles in a week packed with central bank meetings. The escalation came just as Group of Seven leaders were gathering in Canada with U.S. President Donald Trump's tariffs already straining ties. Yet there was no sign of panic among investors with currency markets calm and Wall Street stock futures steadying after an early dip. Oil did add 1% to last week's 13% surge in an inflationary pulse that, if sustained, should make the Federal Reserve even less likely to cut interest rates when it meets on Wednesday. Futures imply almost no chance of a reduction in the 4.25% to 4.5% rate band, and scant prospect of a move in July either. Markets will be particularly sensitive to any change in the Fed's "dot plot" path for rates. "The Committee will release a new set of economic forecasts, and we expect that the interest rate forecast 'dots', which last showed a median expectation of two cuts this year, will instead look for only one cut this year," said Michael Feroli, head of U.S. economics at JPMorgan. Markets are still wagering on two easings by December, with a first move in September seen as most likely. Data on U.S. retail sales on Tuesday will also be a hurdle, as a pullback in autos could drag the headline down even as core sales edge higher. A market holiday in Thursday, means weekly jobless claims figures are out on Wednesday. For now, investors were waiting on developments and MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%. Japan's Nikkei firmed 0.8% and South Korean stocks added 0.5%. Chinese blue chips added 0.1% as data showed retail sales rose 6.4% in May to handily top forecasts, while industrial output was in line with expectations. S&P 500 futures rose 0.1% and Nasdaq futures gained 0.2%, recovering from an early dip. EXPOSED TO OIL European markets were more pressured by the region's reliance on oil imports and EUROSTOXX 50 futures slipped 0.2%, while DAX futures lost 0.3%. FTSE futures were little changed. Yields on 10-year Treasuries were a shade higher at 4.41%, showing little sign of safe haven demand. In currency markets, the dollar firmed 0.2% on the Japanese yen to 144.39, while the euro dipped 0.1% to $1.1530 . The spike in oil prices is a negative for the yen and euro at the margin as both Japan and the EU are major importers of energy, while the United States is an exporter. Currencies from oil exporters Norway and Canada both benefited, with the Norwegian crown hitting its highest since early 2023. "We should expect that economies with a positive energy trade balance should see their currencies benefiting from the shock to oil prices," noted analysts at Deutsche Bank. "It's notable the dollar is in this category, highlighting how the U.S. has moved from a net energy-importer to a net exporter in recent years." Central banks in Norway and Sweden meet this week, with the latter thought likely to trim rates. The Swiss National Bank meets on Thursday and is considered certain to cut by at least a quarter point to take rates to zero, with some chance it may go negative given the strength of the Swiss franc. The Bank of Japan holds a policy meeting on Tuesday and is widely expected to hold rates at 0.5%, while leaving open the possibility of tightening later in the year. There is also speculation it could consider slowing the rundown of its government bond holdings from next fiscal year. In commodity markets, gold was getting the safe-haven bid from Mid-East tensions and rose 0.5% to $3,450 an ounce. Oil prices were underpinned by fears the Israeli-Iran conflict could spread and disrupt exports from the region, particularly through the vital Strait of Hormuz. Brent climbed 72 cents to $74.95 a barrel, while U.S. crude rose 84 cents to $73.82 per barrel.
Yahoo
14 hours ago
- Business
- Yahoo
Stocks, dollar stay calm in Asia as oil rises
By Wayne Cole SYDNEY (Reuters) -Asian markets kept their nerve on Monday and oil prices climbed anew as the conflict between Israel and Iran showed no sign of cooling, adding geopolitical uncertainty to the world's economic troubles in a week packed with central bank meetings. The escalation came just as Group of Seven leaders were gathering in Canada with U.S. President Donald Trump's tariffs already straining ties. Yet there was no sign of panic among investors with currency markets calm and Wall Street stock futures steadying after an early dip. Oil did add 2% to last week's 13% surge in an inflationary pulse that, if sustained, should make the Federal Reserve even less likely to cut interest rates when it meets on Wednesday. Futures imply almost no chance of a reduction in the 4.25% to 4.5% rate band, and scant prospect of a move in July either. Markets will be particularly sensitive to any change in the Fed's "dot plot" path for rates. "The Committee will release a new set of economic forecasts, and we expect that the interest rate forecast 'dots', which last showed a median expectation of two cuts this year, will instead look for only one cut this year," said Michael Feroli, head of U.S. economics at JPMorgan. Markets are still wagering on two easings by December, with a first move in September seen as most likely. Data on U.S. retail sales on Tuesday will also be a hurdle, as a pullback in autos could drag the headline down even as core sales edge higher. A market holiday in Thursday, means weekly jobless claims figures are out on Wednesday. For now, investors were waiting on developments and MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%. Japan's Nikkei firmed 0.8% and South Korean stocks added 0.5%. S&P 500 futures rose 0.1% and Nasdaq futures gained 0.2%. European markets were more pressured by the region's reliance on oil imports and EUROSTOXX 50 futures slipped 0.1%, while DAX futures lost 0.2%. FTSE futures were flat. Yields on 10-year Treasuries nudged up 1 basis point to 4.42%, showing little sign of safe haven demand. In currency markets, the dollar firmed 0.3% on the Japanese yen to 144.49, while the euro dipped 0.1% to $1.1537. The spike in oil prices is a negative for the yen and euro at the margin as both Japan and the EU are major importers of energy, while the United States is a net exporter. Currencies from oil exporters Norway and Canada both benefited, with the Norwegian crown hitting its highest since early 2023. Central banks in Norway and Sweden meet this week, with the latter thought likely to trim rates. The Swiss National Bank meets on Thursday and is considered certain to cut by at least a quarter point to take rates to zero, with some chance it may go negative given the strength of the Swiss franc. The Bank of Japan holds a policy meeting on Tuesday and is widely expected to hold rates at 0.5%, while leaving open the possibility of tightening later in the year. There is also speculation it could consider slowing the rundown of its government bond holdings from next fiscal year. In commodity markets, gold was getting the safe-haven bid from Mid-East tensions and rose 0.5% to $3,450 an ounce. [GOL/] Oil prices were underpinned by fears the Israeli-Iran conflict could spread and disrupt exports from the region, particularly through the vital Strait of Hormuz. [O/R] Brent climbed $1.11 to $75.34 a barrel, while U.S. crude rose $1.05 to $74.03 per barrel. Sign in to access your portfolio
Yahoo
14 hours ago
- Business
- Yahoo
Stocks, dollar stay calm in Asia as oil rises
By Wayne Cole SYDNEY (Reuters) -Asian markets kept their nerve on Monday and oil prices climbed anew as the conflict between Israel and Iran showed no sign of cooling, adding geopolitical uncertainty to the world's economic troubles in a week packed with central bank meetings. The escalation came just as Group of Seven leaders were gathering in Canada with U.S. President Donald Trump's tariffs already straining ties. Yet there was no sign of panic among investors with currency markets calm and Wall Street stock futures steadying after an early dip. Oil did add 2% to last week's 13% surge in an inflationary pulse that, if sustained, should make the Federal Reserve even less likely to cut interest rates when it meets on Wednesday. Futures imply almost no chance of a reduction in the 4.25% to 4.5% rate band, and scant prospect of a move in July either. Markets will be particularly sensitive to any change in the Fed's "dot plot" path for rates. "The Committee will release a new set of economic forecasts, and we expect that the interest rate forecast 'dots', which last showed a median expectation of two cuts this year, will instead look for only one cut this year," said Michael Feroli, head of U.S. economics at JPMorgan. Markets are still wagering on two easings by December, with a first move in September seen as most likely. Data on U.S. retail sales on Tuesday will also be a hurdle, as a pullback in autos could drag the headline down even as core sales edge higher. A market holiday in Thursday, means weekly jobless claims figures are out on Wednesday. For now, investors were waiting on developments and MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1%. Japan's Nikkei firmed 0.8% and South Korean stocks added 0.5%. S&P 500 futures rose 0.1% and Nasdaq futures gained 0.2%. European markets were more pressured by the region's reliance on oil imports and EUROSTOXX 50 futures slipped 0.1%, while DAX futures lost 0.2%. FTSE futures were flat. Yields on 10-year Treasuries nudged up 1 basis point to 4.42%, showing little sign of safe haven demand. In currency markets, the dollar firmed 0.3% on the Japanese yen to 144.49, while the euro dipped 0.1% to $1.1537. The spike in oil prices is a negative for the yen and euro at the margin as both Japan and the EU are major importers of energy, while the United States is a net exporter. Currencies from oil exporters Norway and Canada both benefited, with the Norwegian crown hitting its highest since early 2023. Central banks in Norway and Sweden meet this week, with the latter thought likely to trim rates. The Swiss National Bank meets on Thursday and is considered certain to cut by at least a quarter point to take rates to zero, with some chance it may go negative given the strength of the Swiss franc. The Bank of Japan holds a policy meeting on Tuesday and is widely expected to hold rates at 0.5%, while leaving open the possibility of tightening later in the year. There is also speculation it could consider slowing the rundown of its government bond holdings from next fiscal year. In commodity markets, gold was getting the safe-haven bid from Mid-East tensions and rose 0.5% to $3,450 an ounce. [GOL/] Oil prices were underpinned by fears the Israeli-Iran conflict could spread and disrupt exports from the region, particularly through the vital Strait of Hormuz. [O/R] Brent climbed $1.11 to $75.34 a barrel, while U.S. crude rose $1.05 to $74.03 per barrel.
Yahoo
29-05-2025
- Business
- Yahoo
Down 42%, Can This Growth Stock Double a $1,000 Investment in 5 Years?
Revenue for this powerful consumer brand only grew 6% in Q1, slower than the double-digit gains over the past few years. Investors can appreciate management's relentless focus on product innovation. Unless earnings can skyrocket during the rest of this decade, the current valuation doesn't look compelling. 10 stocks we like better than Airbnb › The S&P 500 Index is clawing back its losses from earlier this year, as investor sentiment starts to improve. But not all businesses are trading anywhere close to their records. One growth stock is currently 42% off its peak. However, the well-known consumer brand might still be a worthy investment candidate. Can a $1,000 investment in shares double over the next five years? Here's the important information investors must know. During the three-month period that ended March 31 (first quarter of 2025), Airbnb's (NASDAQ: ABNB) revenue increased 6% from Q1 2024 to $2.3 billion. That gain was much slower than the 11.9% sales jump registered for all of 2024. The latest gain was driven by a 7% hike in gross booking value. The leadership team called out North America as a weaker-performing region in the quarter. Nights and experiences booked here only rose by low-single digits, worse than any other region. No shareholder wants to see slower growth. However, in this case, the blame might not fall squarely on Airbnb. Companies across the board keep calling out the current macro-environment, with geopolitical uncertainty, shifting trade policy, and high interest rates commanding all the attention. It makes sense that consumers might be tightening their spending a little bit. This can have a direct impact on discretionary activities like travel. Airbnb forecasted revenue to total slightly less in Q2 than Wall Street analysts had hoped. That won't help to instill confidence right now. For investors looking to own businesses for the long term, Airbnb provides some compelling qualities. First, the company is consistently profitable. In the past 12 months, Airbnb raked in $2.5 billion of net income, translating to a stellar net profit margin of 22%. Free cash flow is also being generated, which is used to repurchase shares. The Airbnb brand is a key competitive advantage in the travel sector. This is evident by the fact that the company name is often used interchangeably as a verb. Another competitive strength is the presence of a network effect. As the platform has more hosts and listings, travelers have more choices. And with more travelers looking at Airbnb to book an accommodation, hosts have greater rental opportunities to make money. Another positive trait is Airbnb's continuous emphasis on innovation, with an aim to better serve its user base. On May 13, the business revealed a newly designed app. And there's a lot for investors to get excited about. Airbnb introduced a services tab on its app, which allows guests to book private chefs, photography sessions, and massages, among many other items, while on vacation. New experiences are also being offered in 650 cities across the globe, with a focus on activities that provide an authentic feel. At the end of the day, Airbnb's main objective is to get more hosts, and now service and experience vendors, to list on the platform. On the other side, the company wants travelers to keep the app on top of their minds before starting the planning process for any trip. It will be interesting to watch how these new feature launches are received. If successful, it could have a positive impact on Airbnb's financials over the long term. Shares of Airbnb might be trading 42% below their peak, but that doesn't necessarily mean they provide investors with good value. As of this writing, the stock sells for a forward price-to-earnings (P/E) ratio of 30. According to consensus analyst estimates, earnings per share are projected to grow at a compound annual rate of 11% between 2024 and 2027. If you believe this outlook is even remotely accurate, then the current valuation is too steep, which lowers the chances that the stock can double a $1,000 investment in five years. Before you buy stock in Airbnb, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Airbnb wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb. The Motley Fool has a disclosure policy. Down 42%, Can This Growth Stock Double a $1,000 Investment in 5 Years? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
