stock exchange

Published on 06/11/2025 – 20:47 GMT+1
•Updated
20:56

The Commission launched on Thursday an investigation into a potential collusion between the two stock exchange groups, Deutsche Börse and Nasdaq, in the market for derivative financial products.

At the heart of EU antitrust enforcer’s concerns is the potential coordination of their conduct in the listing, trading, and clearing of those derivatives, which, if proven, would be in violation of EU’s competition rules.

EU law encourage competition between different economic operators to ensure that prices are set fairly by the market, free from any collusion or abuse of dominant position.

In September 2024, the Commission carried out unannounced inspections at the premises of both financial groups, as permitted under EU rules.

It targeted their practices around financial derivatives, which are contracts whose value changes depending on the price of another asset, such as stocks or commodities.

“Deutsche Börse and Nasdaq entities may have entered into agreements or concerted practices not to compete,” the Commission said in a statement, “in addition, the entities may have allocated demand, coordinated prices and exchanged commercially sensitive information.”

A deal made in 1999

Deutsche Börse and Nasdaq are among the world’s largest stock exchange groups.

According to EU competition commissioner Teresa Ribera, such behaviours could also affect “the proper functioning of the Capital Markets Union – a cornerstone for innovation, financial stability and growth.”

The completion of the European Capital Markets Union — a barrier-free market for capitals aimed at reducing their costs for listed companies and improve investment conditions — is one of the priorities of Commission’s president Ursula von der Leyen.

If there was a collusion between Deutsche Börse and Nasdaq, it would constitute “an artificial barrier” on the EU market, Commission’s spokesperson Thomas Regnier told Euronews.

Deutsche Börse reacted in a statement saying : “We are engaging constructively with the European Commission.”

The stock exchange group explained that the Commission’s investigation concerned a 1999 deal, which Deutsche Börse considers “pro-competitive”.

“It aimed to build deeper liquidity in the respective Nordic derivatives markets and create efficiencies,” it argued, adding: “It provided clear benefits for market participants and was public.”

The 1999 deal was made between Deutsche Börse’s derivatives branch Eurex and the Helsinki Stock Exchange, which was acquired by Nasdaq in 2008, for the Nordic derivatives markets, it said.

An estimated half a trillion dollars was wiped out from the financial markets this week, as some of the biggest tech companies, including Nvidia, Microsoft, and Palantir Technologies saw a temporary but sizeable drop in their share prices on Tuesday. It may have been just a short-lived correction, but experts warn of mounting signs of a financial market crash, which could cost several times this amount.

With dependence on tech and AI growing, critics argue that betting on these profits is a gamble, stressing that the future remains uncertain.

Singapore’s central bank joined a global chorus of warnings from the IMF, Fed Chair Jerome Powell, and Andrew Bailey about overvalued stocks.

The Monetary Authority of Singapore said on Wednesday that such a trend is fuelled by “optimism in AI’s ability to generate sufficient future returns”, which could trigger sharp corrections in the broader stock market.

Goldman Sachs and Morgan Stanley predict a 10–20% decline in equities over the next one to two years, their CEOs told the Global Financial Leaders’ Investment Summit in Hong Kong, CNBC reported.

Experts interviewed by Euronews Business also agree that a sizeable correction could be on the way.

In a worst-case scenario, a market crash could wipe out trillions of dollars from the financial markets.

According to Mathieu Savary, chief European strategist at BCA Research, Big Tech companies, including Nvidia and Alphabet, would cause a $4.4 trillion (€3.8tn) market wipeout if they were to lose just 20% of their stock value.

“If they go down 50%, you’re talking about an $11tr (€9.6tr) haircut,” he said.

AI rally: Bubble or boom?

The US stock market has defied expectations this year. The S&P 500 is up nearly 20% over the past 12 months, despite geopolitical tensions and global trade uncertainty driven by Washington’s tariff policies. Gains have been strongest in tech, buoyed by optimism over future AI profits.

While Big Tech continues to deliver, with multibillion-dollar AI investments and massive infrastructure buildouts now routine, concerns are growing over a slowing US economy, compounded by limited data during the government shutdown. Once fresh figures emerge, they could rattle investors.

AI enthusiasm is most evident in Nvidia’s extraordinary stock gains and soaring valuation. The company is central to the tech revolution as its graphics processing units (GPUs) are essential for AI computing.

Nvidia’s shares have surged over 3,000% since early 2020, recently making it the world’s most valuable public company. Between July and October alone, it gained $1tr (€870bn) in market capitalisation — roughly equal to Switzerland’s annual GDP. Its stock trades at around 45 times projected earnings for the current fiscal year.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: “Much of this growth is backed by real financial progress, and despite the massive nominal increase in value, relative valuations don’t look overstretched.”

Analysts debate whether the current market mirrors the dot-com bubble of 2000. Nathan notes that many tech companies that failed back then never reached profitability, unlike today’s giants, which generate strong revenues and profits, with robust demand for their products.

Ben Barringer, global head of technology research at Quilter Cheviot, added: “With governments investing heavily in AI infrastructure and rate cuts likely on the horizon, the sector has solid foundations. It is an expensive market, but not necessarily a screaming bubble. Momentum is hard to sustain, and not every company will thrive.”

BCA Research sees a bubble forming, though not set to burst immediately. Chief European strategist Mathieu Savary said such bubbles historically peak when firms begin relying on external financing for large projects.

Investments in assets for future growth, or capital expenditures, as a share of operating cash flow, have jumped from 35% to 70% for hyperscalers, according to Savary. Hyperscalers are tech firms such as Microsoft, Google, and Meta that run massive cloud computing networks.

“The share of operating earnings is likely to move above 100% before we hit the peak,” Savary added. This means that they may soon be investing more than they earn from operations.

Recent examples of Big Tech firms turning to external financing for such moves include Meta’s Hyperion project with Blue Owl Capital and Alphabet’s €3 billion bond issue for AI and cloud expansion.

While AI investment growth is hard to sustain, Quilter’s Barringer told Euronews: “If CapEx starts to moderate later this year, markets may start to get nervous.”

Other factors to watch include return on invested capital and rising yields and inflation pressures, which could signal a higher cost of capital and a bubble approaching its end.

“But we’re not there yet,” said Savary.

Further concerns and how to hedge against market turbulence

Even as tech companies ride the AI wave, inflated expectations for future profits may prove difficult to meet.

“The sceptics’ main problem may not be with AI’s potential itself, but with the valuations investors are paying for that potential and the speed at which they expect it to materialise,” said AJ Bell investment director Russ Mould.

A recent report by BCA reflects the mounting reasons to question the AI narrative, but the technology “remains a potent force”, said the group.

If investor optimism does slow, “a sharp correction in tech could still have ripple effects across broader markets, given the sector’s dominant weight in global indices,” Barringer said. He added that other regions and asset classes, such as bonds and commodities, would be less directly affected and could provide an important balance during a downturn.

According to Emma Wall, chief investment strategist at Hargreaves Lansdown, “investors should use this opportunity to crystallise impressive gains and diversify their portfolios to include a range of sectors, geographies and asset classes — adding resilience to portfolios. The gold price tipping up is screaming a warning again — a siren that this rally will not last.”

European benchmarks began the week with gains. Oil and gold prices increased, but the euro weakened against the dollar. Sentiment was influenced by OPEC+’s decision to pause production hikes in the first quarter of next year, which led to a modest rise in oil prices as fears of oversupply eased. Gains were, however, mostly lost by late morning.

The international benchmark, Brent crude futures, traded at $64.76, while US West Texas Intermediate cost $60.92 a barrel.

Alongside pauses in the new year, OPEC+ countries agreed on Sunday to increase output by a small 137,000 barrels per day in December, maintaining the pace set for October and November.

Meanwhile, investors expect fresh Western sanctions on Russia, targeting Rosneft and Lukoil, to hinder the country’s ability to boost production further.

At the same time, major Western oil companies are benefitting from the disrupted supply of Russian refined fuels due to attacks and sanctions. Refining margins have risen substantially, giving the oil majors a boost. Both BP and Shell share prices were slightly up on Monday before noon in Europe.

“The decision by producers’ cartel OPEC+ to pause further output hikes at the start of next year, amid concerns about a glut of supply, helped give oil prices a lift and, in turn, boosted UK market heavyweights BP and Shell,” said AJ Bell investment director Russ Mould.

The movements also came as BP announced it had agreed to divest stakes in US shale assets to Sixth Street investment firm on Monday.

Winners in Europe

At 11:00 CET, the UK’s FTSE 100 was up by a few points. The DAX in Frankfurt was leading the gains, up 0.8% after an initial stutter. The CAC 40 in Paris started climbing, reaching gains of nearly 0.2%. The lift in France came despite national budget uncertainties and the release of negative PMI data, which showed that the country’s manufacturing sector was still contracting in October.

US futures were positive around the same time, rising between 0.1% and 0.5%.

Meanwhile, the earnings season continues. A number of European companies are reporting this week, including AstraZeneca, BP, BMW, and Commerzbank.

Ryanair opened the week by posting stronger-than-expected results for the first half of its financial year, spanning April to September. Revenues rose 13% to €9.82bn, as traffic grew 3% and fares increased by 13%. Over the same period, profit rose by 42% year-on-year to €2.54bn, driven by a strong Easter season.

The airline’s shares were up 2.90% in Dublin at around midday.

Looking ahead, Ryanair’s outspoken CEO Michael O’Leary criticised countries in Europe where airlines face high taxes, including environmental duties. In an interview with CNBC, he threatened to move capacity outside the UK should the new budget include such a levy.

“Ryanair is also one of several airline operators with an eagle eye on taxes and costs. It is no longer putting up with unfavourable tax systems, preferring to switch flights and routes to less punitive locations,” Mould commented.

In other markets, the euro weakened against the US dollar by more than 0.2%, hitting a rate of $1.1517 by 11:00 CET. At the same time, the Japanese yen and the British pound were also losing ground against the greenback, with the dollar trading at ¥154.15 and the pound costing $1.3136.

Gold traded just above $4,000, rising slightly by 0.3%.

Global markets were buoyed on Monday morning by expectations of another Fed rate cut and growing optimism that the US and China are moving closer to a trade deal, following comments from President Donald Trump.

The optimism wiped out gains in safe-haven assets such as gold futures and boosted stock exchanges across the globe.

Yet, leading European benchmark indexes opened mostly flat, except for Milan’s FTSE MIB, which was up by 0.61%. Madrid IBEX 35 also gained 0.37% by around 11:00 CEST.

At the same time, European benchmark STOXX 600, as well as the FTSE 100 in London, remained nearly flat. The DAX in Frankfurt gained 0.15% while Paris’ CAC 40 lost less than 0.1%. This came after credit rating agency Moody’s changed France’s outlook from stable to negative on Friday.

Investors in Europe are closely watching for signs of economic health, with one of the strongest indicators — the first reading of the eurozone’s third-quarter GDP — due on Thursday.

On the same day, the European Central Bank (ECB) is scheduled to hold its monetary policy meeting. Given that inflation in the bloc has remained around the bank’s 2% target, the ECB is expected to hold interest rates steady this week for its third straight meeting. The key deposit rate has been at 2% since June.

US-China relations

Across the globe on Monday, US futures were mostly up in pre-market trading. This came as Asian shares rallied too, with Japan’s benchmark Nikkei 225 topping 50,000 for the first time.

Later this week, the US President has a scheduled meeting with the Chinese leader Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation forum (known as APEC), to discuss the trade deal between the world’s two strongest economies.

US and Chinese officials confirmed on Sunday that they had reached an initial consensus for Trump and President Xi Jinping to finalise during a meeting later in the week.

“I have a lot of respect for President Xi,” Trump told reporters after visiting Malaysia for a summit of Southeast Asian nations, where he reached preliminary trade agreements with Malaysia, Thailand, Cambodia, and Vietnam.

“I think we’re going to come away with a deal,” Trump said.

And investors see it as a strong signal. According to Stephen Innes of SPI Asset Management: “This isn’t just photo-op diplomacy. Behind the showmanship, Washington and Beijing’s top trade lieutenants have quietly mapped out a framework that might, just might, keep the world’s two largest economies from tearing up the field again.”

The enthusiasm brought about a shift in risk-taking among investors, demonstrated by a fall in gold futures. The safe-haven asset’s continuous contract fell by almost 2% on Monday morning, as an ounce was priced at $4,055.50.

The euro and Japanese yen remained flat against the US dollar. One euro was traded at $1.1638, while the greenback cost ¥152.8070. The British pound climbed 0.26% against the US dollar, and the rate was at $1.3345.

Crude oil prices fell after European markets opened, with both benchmarks trading nearly 1% lower. The US benchmark WTI crude’s price was $61.06 a barrel, and Brent was at $65.47.

In other dealings, leading cryptocurrencies were up. CoinDesk’s Bitcoin Price Index (XBX) gained 4.86% and climbed to $115,395.34. Ethereum cost $4,171.84, up by 4.82% on Monday morning in Europe.

Another Fed rate cut on the cards, coupled with Big Tech reports

Wall Street hit record highs on Friday, after lower-than-expected inflation numbers from the US fuelled further hope that the Federal Reserve is about to cut interest rates further this Wednesday.

The data on inflation was encouraging because it could mean less pain for lower- and middle-income households struggling with still-high increases in prices. Even more importantly for Wall Street, it could also clear the way for the Federal Reserve to keep cutting interest rates in hopes of giving a boost to the slowing job market.

The Fed just cut its main interest rate last month for the first time this year, but it’s been hesitant to promise more relief because lower rates can make inflation worse, beyond boosting the economy and prices for investments.

Meanwhile, a flood of big tech companies’ earnings is on its way this week, with Microsoft, Meta and Google-parent Alphabet reporting on Wednesday. Apple and Amazon’s numbers are due to be released on Thursday.

Better-than-expected profits could fuel hopes for steady growth in the US. Information is scarce about the current state of the world’s biggest economy due to the prolonged government shutdown.

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European stocks rose on Wednesday morning after a string of strong corporate results a day earlier, while equities were also boosted by remarks from Federal Reserve Chair Jerome Powell. In Philadelphia on Tuesday, Powell suggested that another interest rate cut could come later this month in the US.

In Europe, shares in Netherlands-headquartered ASML, which makes equipment used in the production of AI chips, jumped after the company posted promising results on Wednesday.

The shares rose more than 4%, after Europe’s largest company by market value reported third-quarter earnings fuelled by the AI boom. ASML’s stocks have rallied by almost 50% since August.

Meanwhile, on Wednesday, French multinational luxury group LVMH said its organic growth re-entered positive territory in the third quarter. The luxury giant’s shares jumped by more than 14% by 13.00 CEST.

The mood in France also shifted on news that the government had significantly improved its chances of surviving a looming no-confidence vote on Thursday.

On Tuesday, Prime Minister Sébastien Lecornu won the much-needed support of the Socialist Party in France’s National Assembly, in exchange for suspending a pension law that raises the retirement age. The CAC 40 in Paris jumped over 2% by 13.00 CEST.

The main European benchmark stock exchanges were also in the green, except for London’s FTSE 100, which lost 0.43%. Meanwhile, the DAX in Frankfurt gained less than 0.1%. Milan’s FTSE MIB was up by 0.36%, Madrid’s Ibex 35 gained 0.71% and the STOXX 600 saw a 0.6% gain.

Gold continued its rally, hitting a high of $4,217 per ounce. Gold has soared over 60% in 2025 as investors seek a safe haven during a period of uncertainty, notably driven by US tariffs and trade tensions.

Global markets are on the rise after the Fed Chair’s words

Federal Reserve Chair Jerome Powell signalled on Tuesday that the Fed is slightly more worried about the job market, raising expectations that the central bank will come through with another rate cut.

“Rising downside risks to employment have shifted our assessment of the balance of risks,” he said at a meeting of the National Association of Business Economics in Philadelphia.

Traders took his words to heart, particularly as the US government shutdown has prevented the release of fresh economic data.

“[Investors were] reading Powell like a haiku — every pause, every syllable weighed for hidden meaning,” Stephen Innes of SPI Asset Management said in a commentary.

“The message, once decoded, was clear enough: two rate cuts aren’t just a possibility, they’re the main course,” Innes said.

The central bank cut its benchmark interest rate by a quarter of a percentage point in September amid worries that unemployment could worsen.

“Markets have been lifted by the rekindling of rate cut expectations in the US after comments from Fed chair Jerome Powell, which highlighted sluggish hiring were taken as an indication that not one, but two further cuts were very much on the table for 2025,” said Danni Hewson, AJ Bell head of financial analysis.

“Buoyed by continued deal-making in the frothy AI sector, investors seem prepared to overlook the growing number of warnings about the potential for a market correction at the moment, but this earnings season will be crucial if that optimism is to continue.”

S&P 500 futures rose 0.64% during the early afternoon in Europe, while Dow Jones Industrial Average futures gained 0.41%. Nasdaq futures were up by 0.79%.

On Tuesday, US markets closed a mixed trading day, with the S&P 500 giving up 0.16% and the Dow climbing 0.44%. The Nasdaq composite dropped 0.76%.

Markets remain volatile as the US and China exchange threats of new trade sanctions and tariffs.

Technology stocks are hypersensitive to trade issues since big chipmakers and other companies rely on China for raw materials and manufacturing. China’s large consumer base is also important for its sales growth.

In other dealings early Wednesday, US benchmark crude oil was circling around $58.65 per barrel (€50.43) and Brent crude, the international standard, was traded around $62.24 (€53.52) per barrel.

The US dollar slipped 0.25% against the Japanese yen, while the euro rose 0.19% against the dollar. The British Pound gained 0.35% against the greenback.

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Rare earth stocks climbed in the US after Beijing tightened its control over these critical materials, used in the vast majority of electronic devices, from smartphones and cars to ballistic missiles.

Across the Atlantic, European markets opened in a mixed mood while the Middle East peace deal progresses, brokered by US President Donald Trump.

With investors also watching political uncertainty in France, the pan-European STOXX 600 was up around 0.1% at 11.45 CEST, and Paris’ CAC 40 also gained 0.1%.

Frankfurt’s DAX and London’s FTSE 100 both slipped 0.1%, after an earlier rise for the DAX.

“The FTSE 100 was stuck in the mud as the rest of Europe ploughed ahead at the end of the trading week,” said Russ Mould, investment director at AJ Bell.

“Strength in consumer stocks and utilities was offset by weakness in miners and healthcare,” he said — adding: “it was also notable that defence stocks were being sold down, including Babcock, which has rocketed this year.”

In other news, oil prices were down on Friday morning. The US benchmark crude cost around 0.4% less than at the previous close, and traded at $61.26 per barrel at around 11.45 CEST. The international benchmark Brent lost 0.49% and cost $64.90 per barrel at the same time.

Gold prices also rose after hitting new records recently, trading at $4,018.00 on Friday morning in Europe.

US futures were up slightly, the euro gained against the dollar at $1.1575, and the greenback slipped against the Japanese yen, to ¥152.7950. The British pound also fell against the dollar and cost $1.3290.

Rare earths companies gained overseas

As mining stocks led losses in Europe on Friday amid developments in Beijing, the STOXX Europe Basic Resources index shed 0.78%.

This follows a rally in the US, where rare earth stocks rose considerably after China announced that it would tighten control over its exports of these materials.

The country is dominating the market for rare earths. The world’s second-largest economy accounts for 70% of the global supply of these assets that are hugely significant for defence and technological infrastructure.

Following the news, investors in the US placed their hopes on American alternatives. US rare earth and critical mineral miners’ share prices surged on Thursday, partially due to market speculation that Washington will invest more in building out a domestic supply chain.

Many of these companies have seen their prices increase for months now, with several doubling or tripling since the beginning of the year.

USA Rare Earth Inc., a firm building a domestic rare earth magnet supply chain, gained nearly 15% on Thursday. Since January, it has risen 151%.

MP Materials Corp, an American rare-earth materials company headquartered in Las Vegas, Nevada, also gained more than 2.4% on Thursday, while it is up 341% since January.

Another company, Denver-based Energy Fuels Inc., gained 9.4%, bring its year-to-date rise to 284%.

NioCorp Developments, which benefits from Pentagon support, gained more than 12%, Rare Element Resources Ltd gained more than 10%, and Texas Mineral Resources Corp. gained 9.6% on Thursday.

Meanwhile, Australian rare-earth mining company Lynas Rare Earths lost nearly 3.8% in the Asian trade, and Australia’s Iluka Resources lost 3.22%.

Chinese Shenghe Resources, a partly state-owned rare earths mining and processing company listed on the Shanghai stock exchange, lost 5%.

Beijing’s measures mean that companies need to apply for a licence to export products containing certain Chinese-sourced rare earth metals.

By&nbspAP with Doloresz Katanich

Published on
09/10/2025 – 16:44 GMT+2

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Traders on Wall Street showed caution on Thursday morning although US stocks continue to hover near their record highs.

The S&P 500 rose 0.1% in the first few minutes of trading on Thursday, before slipping 0.35%. The index is coming off its eighth gain in the last nine days.

The Dow Jones Industrial Average fell 0.41%, and the Nasdaq Composite dropped 0.43%, following a tech rally that kept US markets in a good mood over recent weeks. On Wednesday, AI chip giant Nvidia and the tech-heavy Nasdaq index both hit new records.

However, the rally has been increasingly accompanied by a growing chorus of concerns that AI-related investments are overpriced. On Wednesday, the Bank of England and the IMF both issued warnings about growing risks of an AI-led market bubble bursting. The announcements add to the current uncertainty due to the shutdown in the US, among others.

“Concerns around excessive valuations, elevated levels of government borrowing, uncertain economic growth, and political turbulence are omnipresent,” said Russ Mould, investment director at AJ Bell.

“There are a multitude of factors that could trigger a market pullback, but for now, it is another day where there are more bulls than bears.”

In other corporate news, Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, on Thursday reported its third-quarter revenue climbed 30% year-on-year, beating market forecasts.

“There is no real sign of a slowdown in AI-driven demand in the latest numbers from TSMC,” Mould said. “The chip manufacturing giant may have seen a slight easing in demand month-on-month, but year-on-year the levels of growth are still impressive for a company of its size.”

Shutdown weighs on the market sentiment

Trading has been relatively muted recently following the US government’s latest shutdown. The closure is delaying the release of several major economic reports that usually move the market. Stocks have been drifting without them or other signals to change expectations for cuts to interest rates by the Federal Reserve, one of the major reasons the stock market has been on a tear since April.

Oil prices fell after Israel and Hamas agreed Wednesday to pause fighting in Gaza so that the remaining hostages there can be freed in the coming days in exchange for Palestinian prisoners.

The acceptance of elements of a plan put forward by the Trump administration represents the biggest breakthrough in months in the devastating two-year war.

US benchmark crude dipped 21 cents to $62.34 per barrel. Brent crude, the international standard, edged down 18 cents to $66.07 per barrel.

Gold shed some of its stellar gains but was still at $4,054.50 per ounce as of Thursday morning in the US.

Corporate news fuelling the trade

PepsiCo shares inched up over 1% on Thursday after the snack and beverage giant reported better-than-expected revenue in the third quarter despite weaker demand for its snacks and drinks in North America.

PepsiCo’s net income fell 11% to $2.6 billion (€2.24bn), but adjusted for one-time items, the company earned $2.29 per share, beating analysts’ forecasts by 3 cents.

Delta Air Lines easily topped Wall Street expectations for third-quarter profit. Delta expects recent momentum to carry through the end of the year and forecasts full-year profit of $6 per share, in the upper half of its previous guidance range. Delta shares rose 5.8% in premarket, lifting other major airlines’ shares along with it. United rose 3.9% and American jumped 4.9%.

Danish pharmaceutical company Novo Nordisk, the maker of weight-loss drug Wegovy, announced that it was acquiring San Francisco’s Akero Therapeutics for $4.7bn (€4.05bn) in cash.

Meanwhile, Ferrari saw its shares lose more than 13.8% after the Italian luxury sports carmaker offered a cautious earnings forecast on Thursday.

European sentiment remains mixed

Elsewhere, European markets opened in a mixed mood as traders weighed the details of the Israel–Hamas peace deal and mounting concerns over an AI bubble, with corporate updates, the looming US shutdown, and France’s political turmoil humming in the background.

Germany’s DAX added 0.28% while France’s CAC 40 was mostly flat. Britain’s FTSE 100 fell 0.29%.

Published on
29/09/2025 – 11:58 GMT+2

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In order to attract global investors, AstraZeneca said it will directly list its ordinary shares on the New York Stock Exchange, in addition to its shares trading in the UK and Sweden.

To do so, the Anglo-Swedish pharmaceutical giant needs to replace its existing US listing of AstraZeneca American Depositary Receipts (ADRs) on the Nasdaq.

The company said that the move aims to harmonise its listing structure “while remaining headquartered in the UK”.

“The Board of AstraZeneca is recommending to shareholders a Harmonised Listing Structure for the Company’s ordinary shares across the London Stock Exchange (LSE), Nasdaq Stockholm (STO) and the New York Stock Exchange (NYSE),” the company said in a statement.

The announcement follows increased speculation that the pharma company may move its shares entirely from the London Stock Exchange, where it is one of the largest companies traded. And according to analysts, the current announcement doesn’t exclude this possibility in the future.

“While there is logic to shifting to a direct listing in the US rather than American Depositary Receipts beyond setting up for any longer-term moves, it does at least hint at the possibility of a more dramatic shift at some point in the future,” said AJ Bell investment director Russ Mould.  

The US has the world’s largest and most liquid public markets by capitalisation. A direct listing makes it easier for US investors to buy AstraZeneca shares directly without going through ADRs.

Compared to ordinary shares, American Depositary Receipts come with additional costs and extra steps. ADR investors may be subject to fees and double taxation, and ADRs come through a custodian bank.

“Enabling a global listing structure will allow us to reach a broader mix of global investors and will make it even more attractive for all our shareholders to have the opportunity to participate in AstraZeneca’s exciting future,” said Michel Demaré, Chair of AstraZeneca.

In response to the announcement, AstraZeneca’s shares listed on the FTSE 100 rose 0.71% at around 11.30 CEST.

By&nbspAP with Doloresz Katanich

Published on
11/09/2025 – 8:13 GMT+2

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Klarna stock opened at $52 (€45) a share on Wednesday, a 30% premium on the company’s $40 pricing. It took roughly three-and-a-half hours for the specialists on the floor of the NYSE to manually price the first batch of trades of the company. The shares rose as high as $57 before losing some momentum and ending at $45.82, up 14.6%.

More than 34 million shares worth approximately $1.37 billion (€1.17bn) were sold to investors, making it the largest IPO this year, according to Renaissance Capital. That’s notable because 2025 has been one of the busier years for companies going public.

Founded in 2005 as a payments company, Klarna entered the US buy-now-pay-later market in 2015 in partnership with department store operator Macy’s. Since then, Klarna has expanded to hundreds of thousands of merchants and embedded itself in internet browsers and digital wallets as an alternative to credit cards. The company recently announced a partnership with Walmart.

The company is trading under the symbol “KLAR”. While Klarna was founded in Sweden and is a popular payment service in Europe, company executives said they made the decision to go public in the US as a signal that Klarna’s future growth opportunities lay with the American shopper.

“It’s the largest consumer market in the world, and it’s the biggest credit card market in the world. It’s a tremendous opportunity, from our perspective,” said CEO and co-founder Sebastian Siemiatkowski in an interview with The Associated Press ahead of the IPO.

Over the years and in multiple interviews, Siemiatkowski has made it clear that Klarna wants to steal away customers from the big credit card companies and sees credit cards as a high-interest, exploitative product that consumers rarely use correctly.

Klarna’s most popular product is what’s known as a “pay-in-4” plan, where a customer can split a purchase into four payments spread over six weeks. The company also offers a longer-term payment plan where it charges interest. The business model has caught on globally, particularly among consumers who are reluctant to use credit cards. The company said 111 million consumers worldwide have used Klarna.

The buy-now-pay-later market is booming

Klarna and other buy-now-pay-later companies have attracted increased public interest in recent years as the business model has caught on. State and federal regulators, as well as consumer groups, have expressed some degree of worry that consumers may overextend themselves financially on buy-now-pay-later loans just as much as they do with credit cards.

Siemiatkowski says the company is actively monitoring how consumers use their products, and the average balance of a Klarna user is less than $100 (€85.50). Because the company issues loans that are six weeks or less, Klarna argues it can more easily adjust its underwriting standards depending on economic conditions.

With Klarna going public, its co-founders are now billionaires. At Klarna’s IPO price of $40, Siemiatkowski’s 7% stake in the company is worth around $1bn (€850 million), while Victor Jacobsson, who left the company in 2012, owns an 8.4% stake in the company now worth $1.3bn (€1.11bn). Siemiatkowski said he did not sell shares as part of the IPO.

But with Klarna’s 20-year-long incubation period before going public, and several fundraising rounds, major parts of Silicon Valley are walking away with a handsome return for their patience. Sequoia Capital, the storied venture capital firm that was an early backer in the company, has accumulated a 21% ownership in Klarna worth roughly $3.15bn (€2.69bn). Silver Lake, another major VC firm, owns roughly 4.5% of the company.

Klarna reported second-quarter revenue of $823 million (€703.64mn) in August before going public and had an adjusted profit of $29m (€24.8mn). The delinquency rate on Klarna’s “pay-in-4” loans is 0.89% and on its longer-term loans for bigger purchases, the delinquency rate is 2.23%. Those figures are below the average 30-day delinquency rates on a credit card.

Klarna will now be the second-largest buy-now-pay-later company by market capitalisation behind Affirm. Shares of Affirm have surged more than 40% so far this year, putting the value of the company around $28bn (€23.94bn), helped by a belief among investors that buy-now-pay-later companies may take away market share from traditional banks and credit cards. Affirm fell slightly on Wednesday.

Klarna’s primary underwriters for the IPO were JPMorgan Chase and Goldman Sachs.

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As investors digested the news of a potential rate cut from the United States’ Federal Reserve in the coming months, European markets saw a correction on Monday morning. Benchmark stock indexes dipped into negative territory except for the FTSE 100, which remained closed because of a bank holiday in the UK. 

The Dax in Frankfurt lost 0.4% soon after the opening, the CAC 40 in Paris dipped by 0.6%, the Madrid IBEX 35 was down by more than 0.4% and the European benchmark STOXX 600 decreased by 0.3% after 10.00 CEST. 

At the same time, the euro was slightly down against the US dollar, with the exchange rate at 1.1707.

Turning to market outliers, Danish energy company Orsted shares saw its shares fall to a record low, losing more than 17% of their value in Copenhagen. This came after the US administration halted the company’s offshore wind farm construction project called Revolution Wind on Friday, raising alarm among the company’s investors.

Meanwhile, JDE Peet’s shares soared more than 17% on the news that Keurig Dr Pepper would buy the Dutch coffee company in a €15.7 billion deal.

Asian trade followed US rally

The movements followed a cheerful trading session in Asia, where shares advanced on Monday, tracking Wall Street’s rally after the head of the Federal Reserve hinted that interest rate cuts may be on the way.

Fed chair Jerome Powell said on Friday at an annual conference in Jackson Hole, Wyoming, that he is aware of risks to the labour market — which could prompt faster rate cuts.

A surprisingly weak report on job growth this month has led many traders to expect a cut as soon as the Fed’s next meeting in September, after months of pressure from US President Donald Trump for lower rates.

Hong Kong’s Hang Seng index jumped 1.9% by the close, and the Shanghai Composite index surged 1.5%. The latter is trading at its highest level in a decade, despite worries over higher tariffs on exports to the United States under Trump and weak domestic demand at home.

Tokyo’s Nikkei 225 gained 0.4%, and the Kospi in South Korea climbed 1.3%. 

“Asia is set to rally in catch-up mode, feeding off Wall Street’s Friday rebound after Powell cracked the door open to rate cuts,” Stephen Innes of SPI Asset Management said in a commentary.

In other dealings on Monday morning, US benchmark crude oil gained 0.4% and was traded at $63.92 per barrel at around 11.00 CEST, while Brent crude, the international standard, added 0.25% to $67.39 per barrel.

The US dollar rose to 147.24 Japanese yen from 146.88 yen. 

Gold prices inched lower, by 0.2% to $3,410 an ounce. 

What to look out for this week

Nvidia’s earnings report, due on Wednesday after markets on Wall Street close, is a key focus of attention this week.

The firm’s role as a key supplier of chips for artificial intelligence, along with its heavy weighting, give it outsized influence as a bellwether for the broader market.

In Europe, inflation figures from France, Germany, Italy and other key European countries will be released on Friday.

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Leading European stock markets reflected a cautiously positive sentiment on Friday as investors watched for progress on Ukraine peace talks and awaited a speech from US Federal Reserve chair Jerome Powell. He will speak on Friday at Jackson Hole, where central bankers gather for their annual meeting. 

Markets also digested details of an EU-US trade truce and better-than-expected business activity data, announced on Thursday.

Despite the news that the German economy shrank more than initially estimated in the second quarter, the German DAX changed direction and made up its earlier losses, gaining around 0.1% after 11.00 CEST.

The FTSE 100, though trading in negative territory all morning, also followed suit and changed course, gaining a few points by late morning.

The Paris CAC 40 was up 0.2%, the Madrid IBEX 35 rose by 0.4%, and the European benchmark STOXX 600 increased by 0.2%. 

As for the London blue chip index, the early morning slight dip appeared to be just a small correction. “The FTSE 100 saw a subdued start on Friday after achieving a record close above 9,300 yesterday,” said AJ Bell investment analyst Dan Coatsworth in his note.

Investors are focusing on the message Federal Reserve chair Jerome Powell might deliver at the Jackson Hole summit in Wyoming.

“Investors had been expecting a rate cut from the Fed next month so if Powell were to say anything suggesting rates might be kept on hold, it could see stocks come under greater pressure,” said Coatsworth. He added that robust PMI data from the US on Thursday pointed to a strong economy, potentially reducing the chances of the Fed lowering borrowing costs.

A cut in interest rates would be the first of the year and it would give asset prices and the economy a boost — but it could also risk worsening inflation.

The Fed has been hesitant to cut interest rates this year out of fear that President Donald Trump’s tariffs could push inflation higher, but a surprisingly weak report on employment growth earlier this month suddenly shifted focus towards the job market. Trump, meanwhile, has forcefully pushed for cuts to interest rates, directing fierce criticism towards Powell.

US markets closed in a gloomy mood

On Wall Street on Thursday, the S&P 500 slipped 0.4% to 6,370.17, continuing a gradual decline since a record on 14 August. The Dow Jones Industrial Average dropped 0.3% to 44,875.50, and the Nasdaq composite fell 0.3% to 21,100.31.

In other dealings early on Friday, the US dollar rose to 148.48 Japanese yen, from 148.37 yen. The euro slipped to $1.1590 from $1.1606.

Meanwhile, oil prices fell by midday in Europe; the US benchmark crude lost 0.2% and was traded at $63.38 per barrel. Brent crude, the international standard, also was down by 0.2% at $67.52 per barrel.

Oil prices moved higher yesterday, “as the initial enthusiasm over progress towards a ceasefire between Russia and Ukraine continues to fade”, said ING in a note. Expectations of increased global uncertainty are driven by the difficulties of setting up a Putin-Zelensky summit and securing potential security guarantees for Ukraine.

Asian markets were also mixed on Friday

Asian shares were also mixed on Friday. In Tokyo, the Nikkei 225 rose less than 0.1% to 42,633.29 after Japan’s core inflation rate slowed to 3.1% in July, from 3.3% in June.

ING Economics said in a note that price pressures were broadly in line with market consensus. Inflation staying above 3% raises the likelihood of a rate hike as soon as October, it said.

In Chinese markets, Hong Kong’s Hang Seng index rose 0.9% to 25,339.14. The Shanghai composite index climbed 1.5% to 3,825.76.

South Korea’s Kospi added 0.9% to 3,168.73. Australia’s S&P/ASX 200 fell 0.6% to 8,967.40 as traders sold to lock in gains after the benchmark surged to record highs in recent trading sessions.

Published on
20/08/2025 – 13:13 GMT+2

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Shares in Pop Mart soared over 12.5% in daily trading in Hong Kong on Wednesday after the Chinese company released stellar earnings.

The creator of the Labubu doll saw its revenue jump 204% year-on-year in the first half of 2025, coming in at 13.88 billion yuan (€1.66bn). Net profit soared 386% to 4.68bn yuan (€559.39 million), beating forecasts.

Around 40% of sales were made up by purchases outside of mainland China thanks to the international appeal of the firm’s Labubu brand, part of its “The Monsters” range.

“The Monsters” brought in 4.81bn yuan (€574.99mn) in the first half of the year, accounting for 34.7% of total revenue.

The elf-like dolls have become a viral sensation, boosted by the endorsement of celebrities like Dua Lipa, Kim Kardashian and David Beckham.

Part of the attraction is that the toys are sold in blind-box packaging. This means that customers don’t know what they have purchased until they open the product.

Although the firm was created back in 2010, Pop Mart launched its first blind-box series in 2016. The popularity of the range allowed the company to list in Hong Kong in December 2020, achieving a market capitalisation of around €6bn. Since the IPO, shares have risen by over 300%.

Pop Mart opened its first European store in London in January 2022, hoping to expand in overseas markets. Today, the company operates around 2,600 vending machines and almost 600 stores across the globe, meaning Labubu dolls can be bought in more than 30 countries. 

Given the demand for dolls, Pop Mart is now considering expansion in the Middle East, Central Europe, and Central and South America. The firm operates around 40 stores in the US, with 10 more sites expected to open by the end of 2025.

In an earnings call on Wednesday, CEO Wang Ning also said that Pop Mart would this week launch a new, mini version of Labubu that can be attached to phones.

Wang added that his firm was on track to meet its 2025 revenue goal of 20bn yuan (€2.39bn), noting that “30bn this year should also be quite easy”.

Some analysts have nonetheless raised doubts over the sustainability of the company’s rise, driven by social media sites like TikTok.

“The craze for the elf-like Labubu dolls is translating into big profit and cash flow,” said AJ Bell head of financial analysis, Danni Hewson. ““Consumers can be capricious when it comes to this type of fad though and Pop Mart will have to work hard to build on this success if it is to avoid being a one-hit wonder.”

By&nbspEuronews&nbspwith&nbspAP

Published on 13/08/2025 – 12:38 GMT+2
•Updated
12:54

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Shares charged higher in Europe and Asia on Wednesday after US stocks hit new records when data that showed inflation across the United States improved slightly last month.

Tokyo’s benchmark Nikkei 225 added to its record set a day earlier.

The future for the S&P 500 was up 0.2%, while that for the Dow Jones Industrial Average was little changed.

A recent rally in share prices has been driven partly by relief over an extended truce in President Donald Trump’s trade war with China, and partly by persisting hopes the Federal Reserve will cut interest rates. Those were reinforced by a moderation in the consumer price index in July.

Germany’s DAX rose 0.8% to 24,207.78 and the CAC 40 in Paris picked up 0.4% to 7,784.63. Britain’s FTSE 100 edged 0.1% higher, to 9,157.26.

Asian markets

“Asia woke up in full risk-on mode, riding the coattails of a US session that looked like someone hit the ‘infinite bid’ button after CPI didn’t blow the inflation doors off,” Stephen Innes of SPI Asset Management said in a commentary.

China and the US agreed to a 90 day extension, from 12 August, of their pause in drastically higher tariff rates on each others’ exports to allow more time for talks on a broad trade agreement. Although uncertainty over what the negotiations will yield remains, the truce has relieved pressure on companies and countries across Asia that rely heavily in supply chains routed through China.

Hong Kong’s Hang Seng surged 2.6% to 25,613.67, while the Shanghai Composite index added 0.5% to 3,683.46.

In Japan, relief over the Trump administration’s confirmation that its exports will face a flat 15% US import duty has driven strong buying of computer chip-related companies and other exporters.

The Nikkei 225 gained 1.3% to 43,274.67.

Elsewhere in Asia, South Korea’s Kospi advanced 1.1% to 3,224.37. In Australia, the S&P/ASX 200 shed 0.6% to 8,827.10.

Taiwan’s Taiex was up 0.9% and the Sensex in India gained 0.5%. In Bangkok, the SET climbed 1% after the Bank of Thailand cut its key interest rate by 0.25 percentage points to 1.5%.

US markets

On Tuesday, the S&P 500 rose 1.1% to top its all-time high set two weeks ago. It closed at 6,445.76.

The Dow Jones Industrial Average climbed 1.1% to 44,458.61, while the Nasdaq composite jumped 1.4% to set its own record of 21,681.90.

The better-than-expected report on inflation raised hopes the Federal Reserve will have the leeway to cut interest rates at its next meeting in September.

Tuesday’s report said US consumers paid prices for groceries, gasoline and other costs of living that were overall 2.7% higher in July than in the previous year. That’s the same inflation rate as June’s, and it was below the 2.8% that economists expected.

Lower rates would give a boost to investment prices and to the economy by making it cheaper for US households and businesses to borrow to buy houses, cars or equipment. President Donald Trump has angrily been calling for cuts to help the economy, often insulting the Fed’s chair personally while doing so.

The Fed has hesitated, worried that Trump’s tariffs could make inflation much worse.

The Fed will get one more report on inflation and another on the US job market, before its next meeting, which ends 17 September. The most recent jobs report was a stunner, coming in much weaker than economists expected.

Critics say the broad US stock market is looking expensive after its surge from a bottom in April. That’s putting pressure on companies to deliver continued growth in profit.

In other dealings early Wednesday, US benchmark crude oil dropped 26 cents to $62.91 per barrel. Brent crude, the international standard, declined 20 cents to $65.92 per barrel.

The U.S. dollar fell to 147.24 Japanese yen from 147.84 yen. The euro climbed to $1.1727 from $1.1677.

Published on
12/08/2025 – 19:03 GMT+2

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Evergrande, once China’s second-largest property developer and now the world’s most indebted company, said on Tuesday it will be delisted from the Hong Kong stock exchange on 25 August.

The company, founded in 1996, grew on a wave of debt-fuelled expansion by aggressively borrowing to buy land and build projects. It later diversified into wealth management, electric vehicles, theme parks, bottled water and even a soccer club.

Delisting in Hong Kong

Evergrande was the world’s most heavily indebted real estate developer, with over $300 billion (€257.1bn) owed to banks and bondholders, when the court handed down a liquidation order in January 2024.

The court had ruled that the company had failed to provide a viable restructuring plan for its debts, which fuelled fears about China’s rising debt burden, and trading of its shares has been halted since the ruling.

The Hong Kong stock exchange stipulates that the listing of companies may be cancelled if trading in their securities has remained suspended for 18 months consecutively.

China Evergrande Group received a letter on 8 August from the city’s stock exchange notifying the firm of its decision to cancel the listing as trading had not resumed by 28 July. The last day of the listing will be 22 August and Evergrande will not apply for a review of the decision, the company said in a statement.

“All shareholders, investors and potential investors of the company should note that after the last listing date, whilst the share certificates of the shares will remain valid, the shares will not be listed on, and will not be tradeable on the Stock Exchange,” the statement said.

A trouble-ridden sector

Evergrande is among scores of developers that defaulted on debts after Chinese regulators cracked down on excessive borrowing in the property industry in 2020. Unable to obtain financing, their vast obligations to creditors and customers became unsustainable.

The crackdown also tipped the property industry into crisis, dragging down the world’s second-largest economy and rattling financial systems in and outside China.

Once among the nation’s strongest growth engines, the industry is struggling to exit a prolonged downturn. House prices in China have continued to fall even after the introduction of supportive measures by policymakers.

The Hong Kong court system has been dealing with liquidation petitions against several Chinese property developers, including one of the largest Chinese real estate companies, Country Garden, which is expected to have another hearing in January.

China South City Holdings, a smaller property developer, was also ordered to liquidate on Monday.

Evergrande, founded in the mid-1990s by Hui Ka Yan, also known as Xu Jiayin, had over 90% of its assets on the Chinese mainland, according to the 2024 ruling. The firm was listed in Hong Kong in 2009 as “Evergrande Real Estate Group” and suspended its share trading on 29 January 2024, at 0.16 Hong Kong dollars (€0.017).

The liquidators said they have assumed control of over 100 companies within the group and entities under their direct management control with collective assets valued at $3.5 billion (€2.99bn) as of 29 January 2024. They said an estimate of the amounts that may ultimately be realised from these entities wasn’t available yet.

About $255 million (€218.5m) worth of assets have been sold, the liquidators said, calling the realisation “modest.”

“The liquidators believe that a holistic restructuring will prove out of reach, but they will, of course, explore any credible possibilities in this regard that may present themselves,” they said.

Hui, Evergrande’s founder, was detained in China in September 2023 on suspicion of committing crimes, adding to the company’s woes.

Published on
29/07/2025 – 16:24 GMT+2

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Novo Nordisk shares fell by over 20% on Tuesday after the firm slashed its full-year guidance, blaming weaker US sales expectations for its obesity drug Wegovy and Ozempic diabetes treatment.

In the wake of the sell-off, the pharma giant said long-time employee Maziar Mike Doustdar would take over as president and CEO, replacing Lars Fruergaard Jørgensen — who unexpectedly stepped down in May.

Doustdar, the first non-Dane to lead the company, will take over on 7 August.

Novo cut its financial guidance for the year on Tuesday, expecting yearly sales to grow by 8% to 14%, compared to a previous forecast of up to 21%. Operating profit is now expected to grow 10% to 16%, compared to a previously predicted upper limit of 24%.

Depressed sales expectations for Wegovy and Ozempic are linked to rival products from drug maker Eli Lilly, as well as other, cheaper dupes of the pharmaceuticals.

“For Wegovy in the US, the sales outlook reflects the persistent use of compounded (drugs), slower-than-expected market expansion and competition,” said Novo.

The firm’s sales rose 18% in constant currencies in the first six months of the year, while operating profit was up 29%.

In 2024, Wegovy’s popularity helped Novo to become Europe’s most valuable listed company, but its value has since plummeted. 

The company previously downgraded its outlook in May due to intensifying competition in the weight-loss drug markets.

Novo is due to report its full second-quarter sales on 6 August.

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Bitcoin has reached a new all-time high, trading at more than $118,000 (€100,000) on Friday. It followed an enthusiastic trading day on the US stock markets on Thursday, where the main index for tech companies, the Nasdaq, hit a record value.

Interest in Bitcoin was fuelled by a bullish, optimistic trading outlook across risk assets and an appetite for investment in tech companies, such as Nvidia, which recently surged to a $4 trillion valuation. 

Bitcoin’s all-time high also comes days before what the US House of Representatives, one of Congress’ two chambers, has labelled as “Crypto Week”, starting on 14 July. This is when lawmakers are expected to debate a series of bills that could define the regulatory framework for the industry in the United States. 

Bitcoin gained more than 20% this year against the US dollar. 

Bloomberg’s data shows that investors poured around $1.2 billion (€1bn) into Bitcoin ETFs (exchange-traded funds) on Thursday, pushing the price to a new high beyond $116,000 before the rally continued on Friday. 

Much of the investments pouring into crypto came through ETFs. Cryptocurrency-based ETFs make it easier for investors to gain exposure to cryptocurrencies without having to buy them directly. These funds have exploded in popularity since bitcoin ETFs began trading in US markets last year.

The strong interest in crypto boosted the price of the second-biggest crypto asset, too. Ethereum gained more than 6%, and traded at around $3,000 (€2,600) on Friday.

Meanwhile, the US President continues to expand his crypto-related offerings. Trump was once a bitcoin sceptic but has since warmly embraced the cryptocurrency industry.

On Tuesday, his family business Trump Media filed paperwork at the Securities and Exchange Commission for approval to launch the “Crypto Blue Chip ETF” later this year.

This is a new exchange-traded fund tied to the prices of five popular cryptocurrencies. The proposed ETF would have 70% of its holdings in bitcoin, 15% in Ethereum, and 8% in Solana, a cryptocurrency popular in the meme coin community.

The Trump administration has pushed for crypto-friendly regulations and laws, in line with the president’s ambitions to make the US the world capital for crypto.

“If we didn’t have it, China would,” Trump said.

Published on
04/07/2025 – 10:57 GMT+2

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The AI chipmaker Nvidia’s shares hit a new all-time high on Thursday, briefly giving the company a market capitalisation of $3.92 trillion (€3.33tn), the highest in history for any company.

This surpassed Apple’s record of $3.91tr set in December 2024, even though Nvidia’s market capitalisation dipped once again below this level at market close. 

The chipmaker’s shares traded as high as $160.98 at their peak on Thursday, before the price dipped below this level, placing the market capitalisation at around $3.89tr when daily trading wrapped up.

Tech companies’ shares benefitted from a better-than-expected nonfarm payrolls report in the US, an indicator of a resilient US economy.

This optimism was boosted by forecasts that businesses would continue to spend on AI advances, boosting demand for AI chips.

Nvidia shares are up more than 50% in just less than two months. Analysts expect that the company will break the valuation record soon and retain its elevated share price by the close of the trading day.

“Chip giant Nvidia is on track to achieve a new closing high,” said Dan Coatsworth, investment analyst at AJ Bell, adding that the “AI revolution is still intact”.

AJ Bell head of financial analysis Danni Hewson added that, “After all the gloomy predictions that this might be the year the AI bubble bursts, Nvidia’s found another gear. The chipmaker is on track to smash a coveted record and become the world’s most valuable company ever.”

The value of Nvidia currently is more than three times the total market capitalisation of the stock market in Spain and more than four times that of the Italian stock exchange.

Published on
25/06/2025 – 8:08 GMT+2

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Investors kept an eye on the Middle East on Wednesday as a fragile ceasefire between Iran and Israel appeared to hold after initial shakiness.

Both sides claimed victory; Iran’s president said Israel had suffered a “historic punishment”, while Israel’s prime minister argued the offensive had removed “the Iranian nuclear threat”.

A new US intelligence report nonetheless found that Tehran’s nuclear programme had only been set back by a few months by US strikes. Washington denied the findings of the leaked report.

Early in Europe, Brent crude had risen around 1.15% to $67.91 a barrel, while WTI was 1.21% higher at $65.15. The prices suggest the market has still not fully calmed after the conflict in the Middle East, with investors continuing to monitor the shaky ceasefire.

US President Trump rebuked both countries for violating the announced ceasefire on Tuesday. 

“Israel, as soon as we made the deal, they came out and they dropped a load of bombs, the likes of which I’ve never seen before, the biggest load that we’ve seen,” he said.

On his social media platform, Truth Social, he wrote: “Israel, do not drop those bombs. If you do, it is a major violation. Bring your pilots home, now!”

Trump claimed that neither Iran nor Israel “know what the f*** they’re doing”.

Stocks, meanwhile, rose modestly on Wednesday. Dow Jones futures rose 0.06% to 43,452.00, while S&P 500 futures gained 0.05% to 6,149.25.

In Asian trading, the Shanghai Composite index climbed 0.44% to 3,435.60, the Nikkei 225 rose 0.31% to 38,910.93, Hong Kong’s Hang Seng jumped 0.78% to 24,364.79, while South Korea’s Kospi was almost flat, rising 0.01% to 3,104.20.

Australia’s S&P/ASX 200 notched up 0.09% to 8,563.20.

The US Dollar Index was up 0.13% at 97.98 although the currency has still failed to recover from losses seen earlier this year. The euro rose less than 1% against the dollar while the Japanese Yen dropped around 0.12% against its US safe-haven alternative.

“The situation in the Middle East is fluid. While the downside risks have subsided, the situation can change quickly and the balance of risks remains weighted toward higher oil prices,” said Ryan Sweet, Chief US Economist at Oxford Economics, on Tuesday.

Published on
24/06/2025 – 7:59 GMT+2

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Stocks rallied on Tuesday after US President Trump said that a “complete and total ceasefire” between Iran and Israel would take effect in the coming hours.

Iran’s foreign minister denied that an official ceasefire agreement had been reached, but noted that Tehran would not continue its attacks as long as Israel halted its “aggression”. At the time of writing, Israel had yet to comment.

The truce, which Trump is labelling the end of the “12-day war”, came after Iran attacked a US base in Qatar on Monday, retaliating against the US bombing of its nuclear sites over the weekend.

In response to Tuesday’s development, oil prices dropped as fears over a blockage to the Strait of Hormuz subsided. 

About 20% of global oil and gas flows through this narrow shipping lane in the Gulf.

Brent crude, the international standard, dropped 2.92% to $69.39, while WTI dropped 3.18% to $66.35.

Last week, Brent reached over $78 a barrel, a level not seen since the start of this year.

Looking to the US, S&P 500 futures rose 0.58% to 6,112.00 on Monday, while Dow Jones futures increased 0.51% to 43,118.00.

Australia’s S&P/ASX 200 jumped 0.89% to 8,550.10, South Korea’s Kospi rose 2.75% to 3,097.28, and the Shanghai Composite index climbed 1.07% to 3,417.89.

Hong Kong’s Hang Seng rose 2% to 24,162.70 and the Nikkei 225 increased 1.16% to 38,796.39.

The US Dollar Index slipped by 0.32% to 98.10. The euro gained 0.25% against the dollar while the yen dropped 0.48% in comparison to the greenback.

Economists had suggested that persistent threats to oil would increase the value of the US dollar and hurt other currencies such as the euro, notably as the US economy is more energy independent.

Greg Hirt, chief investment officer with Allianz Global Investors, told Euronews earlier this week that although the dollar may see a short lift on the Iran-Israel conflict, “structural issues around a twin deficit and the Trump administration’s volatile handling of tariffs should continue to weigh on an overvalued US dollar”.

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Investors reacted to US strikes on Iran over the weekend as Iran and Israel continued to trade missile fire on Monday morning.

The price of Brent crude oil rose around 1.53% to $78.19 a barrel as of around 7.15 CEST, while WTI rose 1.48% to $74.93 a barrel.

On Sunday, US forces attacked three Iranian nuclear and military sites, stating that Tehran must not be allowed to possess a nuclear weapon.

President of Iran Masoud Pezeshkian said that the country “will never surrender to bullying and oppression”, while Iranian foreign minister Abbas Araghchi has arrived in Moscow for talks with Russian president Vladimir Putin.

Futures for the S&P 500 slipped 0.13% to 6,010.25 and Dow Jones Industrial Average futures dropped 0.2% to 42,431.00. Nasdaq futures fell 0.18% to 21,804.50 on Monday morning.

In Asian trading, Tokyo’s Nikkei 225 index fell 0.19% to 38,331.12, the Kospi in Seoul dropped 0.3% to 3.012,88, and Australia’s S&P/ASX 200 declined 0.37% to 8,474.40.

Hong Kong’s Hang Seng and the Shanghai Composite Index were in positive territory, with respective gains of 0.35% to 23,611.68 and 0.13% to 3,364.29.

The conflict, which flared up after an Israeli attack against Iran on 13 June, has sent oil prices higher linked to Iran’s status as a major oil producer.

The nation is also located on the narrow Strait of Hormuz, through which much of the world’s crude oil passes.

Investors are concerned that Tehran might decide to bomb oil infrastructure in neighbouring countries or block tankers from travelling through the Strait of Hormuz.

Shipping company Maersk said on Sunday that it was continuing to operate through the strait, adding: “We will continuously monitor the security risk to our specific vessels in the region and are ready to take operational actions as needed.”

According to vessel tracking data compiled by Bloomberg, two supertankers Coswisdom Lake and South Loyalty U-turned in the Strait of Hormuz on Sunday.

The situation now hinges on whether Tehran decides to opt for aggression or a more diplomatic response to US and Israeli strikes.

Iran could attempt to close the waterway by setting mines across the Strait or striking and seizing vessels. Even so, this would likely be met by a forceful response from the US navy, meaning the oil price spike may not be sustained.

Some analysts also think Iran is unlikely to close down the waterway because the country uses it to transport its own crude, mostly to China, and oil is a major revenue source for the regime.

If Tehran did successfully close the Strait, this would cause a wider price spike for transported goods and complicate the deflationary process in the US, potentially keeping interest rates higher for longer.

On Monday morning, Trump also floated the possibility of regime change in Iran.

“If the current Iranian regime is unable to make Iran great again, why wouldn’t there be regime change?” said the US president on Truth Social.

Vice-president J.D. Vance had commented earlier that the administration did not seek regime change in Iran.