Morning Note: A Round-up of Global Financial Market News.
Market News
Brent Crude has slipped back below $80 a barrel this morning, giving up earlier gains as investors reacted positively to signs of progress in ongoing peace talks between the US and Iran. According to a joint statement from Qatar and Pakistan, which are facilitating negotiations in Switzerland, both sides have agreed to a roadmap aimed at securing a final agreement within 60 days. Technical talks will continue this week, with communication established to ensure safe passage through the Strait of Hormuz. Iran’s Foreign Minister Abbas Araghchi said there’s been “major progress” to end the war in Lebanon. Millions of barrels of oil flowed through Hormuz over the weekend despite Iran’s claims that it had closed the chokepoint again.
Gold has climbed toward $4,200 an ounce, recouping some losses from recent sessions, while the yield on the US 10-year Treasury is 4.48%. This week will see the release of the US PCE price index, the Federal Reserve’s preferred measure of inflation. This follows last week’s hawkish tone at the Federal Reserve meeting.
In Asia this morning equity markets were generally firm: Nikkei 225 (+1.6%); Hang Seng (-0.6%); Shanghai Composite (+1.8%). China imposed export controls on two US rare earth producers that are part of Washington’s effort to establish alternative supply chains. Trading in US stocks will resume after Friday’s holiday, with the S&P Futures currently expecting a 0.3% rise at the open this afternoon.
The FTSE 100 is currently little changed at 10,367. easyJet rejected a third takeover offer from Global alternative investment manager Castlelake. The 625p a share proposal represents a 59% premium to the easyJet share price of 394.2p as at the close of business on 28 May, being the last day before Castlelake’s interest in easyJet became public. easyJet is trading 3% higher at 523p this morning, well below the current proposal.
Keir Starmer is expected to announce a timetable for his resignation immediately, possibly as soon as today, people familiar said. The move would pave the way for Andy Burnham to succeed him. Sterling has fallen to $1.3195 and €1.1520, while the 10-year Gilt yield trades at 4.84%.
Source: Bloomberg
