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Business Upturn
5 days ago
- Business
- Business Upturn
Hindustan Zinc shares jump over 4% today as silver prices hit 12-year high
By Aditya Bhagchandani Published on June 5, 2025, 14:58 IST Shares of Hindustan Zinc surged 4.07% today to close at ₹487.05 on the NSE, gaining ₹19.05 from the previous close of ₹468.00. The sharp uptick in the stock price came as global silver prices soared past $35 per ounce—marking the highest level since October 2012. The rise in silver prices follows fresh concerns over the US economy. Data released on Wednesday showed a sharp slowdown in private-sector job growth, with the ADP report revealing just 37,000 new jobs in May—the lowest in more than two years. Additionally, the ISM services PMI contracted, indicating economic pressure and rising costs, further worsened by new tariff measures. These indicators led investors to flock to safe-haven assets, driving up prices of precious metals. Hindustan Zinc, considered one of the few silver plays on Indian exchanges, was a key beneficiary of the rally. The company has significant exposure to silver production, making it a proxy bet for investors seeking to gain from the precious metal's surge. At current levels, Hindustan Zinc commands a market capitalization of ₹2.04 lakh crore, with a dividend yield of 7.26% and a P/E ratio of 19.68. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
New Straits Times
06-05-2025
- Business
- New Straits Times
US services sector expands with hints of rising price pressures
WASHINGTON: The US services sector's growth picked up in April, while a measure of prices paid by businesses for materials and services raced to the highest level in more than two years, signaling a building up in inflation pressures due to tariffs. The Institute for Supply Management (ISM) survey on Monday showed services businesses were worried about the impact of President Donald Trump's tariffs on prices and deep federal spending cuts as his administration seeks to drastically shrink the government. Trump's on-and-off again tariffs have heightened uncertainty over the once-resilient economy. Some real estate, rental and leasing firms in the ISM survey described the implementation of import duties as "maddeningly inconsistent." Risks of a recession have risen. Trump on Sunday announced a 100 per cent tariff on movies produced outside the United States. "The negative impact on services activity and inflation from the tariffs and government spending cuts are very real and already beginning to materialize," said Scott Anderson, chief US economist at BMO Capital Markets. "Without a hard pivot in U.S. tariffs and government spending cuts, we expect the ISM services readings to remain under downward pressure." The ISM said its nonmanufacturing purchasing managers index (PMI) increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2. A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy. The ISM associates a PMI reading above 49 over time with growth in the overall economy. Efforts by businesses and households to get ahead of the import duties likely accounted for some of the rise in the services PMI last month. The ISM survey's new orders measure increased to 52.3 from 50.4 in March. Inventories also rose, with some businesses saying they had "purchased some products in advance of tariffs." Others attributed the rise to increased sales volumes. "But overall, results are improving," said Steve Miller, chair of the ISM Services Business Survey Committee. The survey added to solid job growth in April in offering assurance that the economy was not near a recession despite gross domestic product contracting in the first quarter, burdened by a massive inflow of imports as businesses sought to avoid higher prices from tariffs. "The economy continued to expand at the start of second quarter, albeit at a slow pace," said Matthew Martin, a senior US economist at Oxford Economics. "We expect the services side of the economy to fare better than the manufacturing sector this year but will be unable to avoid the impact of higher prices and weaker consumer spending as real disposable incomes decline." Stocks on Wall Street were trading lower. The dollar slipped against a basket of currencies. US Treasury yields rose. TARIFFS, FUNDING CUTS ANXIETY Eleven industries including accommodation and food services, wholesale trade, mining and utilities reported growth. Among the six reporting a contraction were finance and insurance as well as public administration. Businesses in the agriculture, forestry, fishing and hunting sector said "tariffs are negatively impacting small business customers," many of whom "source their products from China." Trump hiked tariffs on Chinese imports to 145 per cent, sparking a trade war with Beijing. Educational services companies worried about the White House's cuts to research funding, while their counterparts in the healthcare and social assistance sector reported they were "seeing some vendors increasing their prices," adding that "we are actively pushing back on those increases." Providers of public administration services said "our business is in a state of crises with uncertainty caused by both the ongoing trade war and the threats to federal funding of programs." The swirling uncertainty was seen encouraging the Federal Reserve to leave interest rates unchanged on Wednesday. Suppliers' delivery performance worsened last month, suggesting supply chains were starting to get strained. The ISM survey's supplier deliveries index increased to 51.3 from 50.6 in the prior month. A reading above 50 indicates slower deliveries. A lengthening in suppliers' delivery times is normally associated with a strong economy, which would be a positive contribution to the PMI. Delivery times are, however, likely getting longer because of the rush to beat tariffs. Some businesses reported "steel conduit lead times have increased due to factories unable to keep up with demand." With supply bottlenecks emerging, the survey's measure of prices paid for services inputs jumped to 65.1. That was the highest reading since January 2023 and followed 60.9 in March. Seventeen services industries reported a rise in prices, with the exception of arts, entertainment and recreation. Most economists anticipate the tariff hit to inflation and employment could become evident by summer in the so-called hard economic data. Services sector employment continued to decline, though the pace slowed. The survey's measure of services employment increased to 49.0 from 46.2 in March. Companies attributed the rise to "backfilling many empty positions." Others noted hiring freezes "due to uncertainty of government grants." "A stable labor market remains key for the economic outlook as the potential determining factor for sustaining consumers through whatever tariff-related disruptions are lurking in the months ahead," said Tim Quinlan, a senior economist at Wells Fargo. "The labor market is holding up, but for how long remains a key question for growth this year."
Arab News
06-05-2025
- Business
- Arab News
Oil Updates — crude climbs $1 as price drop triggers buying; oversupply worries weigh
SINGAPORE: Oil gained more than $1 per barrel on Tuesday, rebounding on technical factors and bargain hunting after a decision by OPEC+ to boost output sent prices down the previous session, although concerns about the market surplus outlook persisted. Brent crude futures rose $1.15 to $61.38 a barrel by 9:23 a.m. Saudi time, the first time gain after six consecutive declines, while US West Texas Intermediate crude added $1.11 to $58.24 a barrel. Both benchmarks had settled at their lowest since February 2021 on Monday, driven by an OPEC+ decision over the weekend to further speed up oil production hikes for a second consecutive month. 'Today's slight rebound in oil prices appears more technical than fundamental,' said Yeap Jun Rong, a market strategist at IG. 'Persistent headwinds including a pivotal shift in OPEC+ production strategy, uncertain demand amid US tariff risks, and price forecast downgrades are continuing to weigh on the broader price movement.' Driven by expectations that production will exceed consumption, oil has lost over 10 percent in six straight sessions and dipped over 20 percent since April when US President Donald Trump's tariff shocks prompted increased bets on a slowdown in the global economy. The return of Chinese market participants after a five-day public holiday since May 1 was seen supporting prices on Tuesday. 'China also reopened today, and being the largest importer, buyers would have likely jumped to secure oil at current low levels,' said Priyanka Sachdeva, senior market analyst at Phillip Nova. Also lending some support was data showing a pick-up in services sector's growth in the US, the world's major oil consumer, as orders increased. The Institute for Supply Management said on Monday its nonmanufacturing purchasing managers index increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2. The US Federal Reserve will likely leave interest rates unchanged on Wednesday as tariffs roil the economic outlook. Barclays lowered its Brent crude forecast on Monday by $4 to $70 a barrel for 2025 and set its 2026 estimate at $62 a barrel, citing 'a rocky road ahead for fundamentals' amid escalating trade tensions and OPEC+'s pivot in its production strategy. Goldman Sachs also lowered its oil price forecast on Monday by $2-3 per barrel, as they now expect another 400,000 barrels per day production increase by OPEC+ in July.
Economic Times
05-05-2025
- Business
- Economic Times
US service sector picks up in April; price pressures rise
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The U.S. services sector's growth picked up in April as orders increased, boosting a measure of prices paid by businesses for materials and services to the highest level in more than two years, signaling a building up in inflation pressures due to Institute for Supply Management (ISM) said on Monday that its nonmanufacturing purchasing managers index (PMI) increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2.A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy. The ISM associates a PMI reading above 49 over time with growth in the overall survey added to solid job growth in April in offering assurance that the economy was not near a recession despite gross domestic product contracting in the first quarter, burdened by a massive inflow of imports as businesses sought to avoid higher prices from President Donald Trump 's by businesses and households to get ahead of the import duties likely accounted for some of the rise in the services PMI last month. The ISM survey's new orders measure increased to 52.3 from 50.4 in March. Inventories also delivery performance worsened, suggesting supply chains were probably starting to get strained. The ISM survey's supplier deliveries index increased to 51.3 from 50.6 in the prior month. A reading above 50 indicates slower deliveries.A lengthening in suppliers' delivery times is normally associated with a strong economy, which would be a positive contribution to the PMI. Delivery times are, however, likely getting longer because of the rush to beat supply bottlenecks emerging, the survey's measure of prices paid for services inputs jumped to 65.1. That was the highest reading since January 2023 and followed 60.9 in economists anticipate the tariff hit to inflation and employment could become evident by summer in the so-called hard economic data. Services sector employment continued to decline, though the pace slowed. The survey's measure of services employment increased to 49.0 from 46.2 in March.
Reuters
05-05-2025
- Business
- Reuters
US service sector picks up in April; price pressures rise
WASHINGTON, May 5 (Reuters) - The U.S. services sector's growth picked up in April as orders increased, boosting a measure of prices paid by businesses for materials and services to the highest level in more than two years, signaling a building up in inflation pressures due to tariffs. The Institute for Supply Management (ISM) said on Monday that its nonmanufacturing purchasing managers index (PMI) increased to 51.6 last month from 50.8 in March. Economists polled by Reuters had forecast the services PMI dipping to 50.2. A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy. The ISM associates a PMI reading above 49 over time with growth in the overall economy. The survey added to solid job growth in April in offering assurance that the economy was not near a recession despite gross domestic product contracting in the first quarter, burdened by a massive inflow of imports as businesses sought to avoid higher prices from President Donald Trump's tariffs. Efforts by businesses and households to get ahead of the import duties likely accounted for some of the rise in the services PMI last month. The ISM survey's new orders measure increased to 52.3 from 50.4 in March. Inventories also rose. Suppliers' delivery performance worsened, suggesting supply chains were probably starting to get strained. The ISM survey's supplier deliveries index increased to 51.3 from 50.6 in the prior month. A reading above 50 indicates slower deliveries. A lengthening in suppliers' delivery times is normally associated with a strong economy, which would be a positive contribution to the PMI. Delivery times are, however, likely getting longer because of the rush to beat tariffs. With supply bottlenecks emerging, the survey's measure of prices paid for services inputs jumped to 65.1. That was the highest reading since January 2023 and followed 60.9 in March. Most economists anticipate the tariff hit to inflation and employment could become evident by summer in the so-called hard economic data. Services sector employment continued to decline, though the pace slowed. The survey's measure of services employment increased to 49.0 from 46.2 in March.
