Latest news with #StoneXGroup
Yahoo
30-06-2025
- Business
- Yahoo
What Makes StoneX Group (SNEX) a Defensive Financial Services Firm?
Riverwater Partners, an investment management company, released its 'Small Cap Strategy' Q1 2025 investor letter. A copy of the letter can be downloaded here. The Small Cap Core Strategy outperformed the Russell 2000 in Q1 2025, driven by strong stock selection and sector allocation. Within this strategy, the firm focuses on bottom-up fundamental research rather than making top-down macroeconomic bets. While much of the market discourse today is centered on tariffs and U.S. fiscal policy, the firm's focus remains on identifying high-quality companies. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Riverwater Partners Small Cap Strategy highlighted stocks such as StoneX Group Inc. (NASDAQ:SNEX). StoneX Group Inc. (NASDAQ:SNEX) is a global financial services company. The one-month return of StoneX Group Inc. (NASDAQ:SNEX) was 7.92%, and its shares gained 82.81% of their value over the last 52 weeks. On June 27, 2025, StoneX Group Inc. (NASDAQ:SNEX) stock closed at $91.38 per share, with a market capitalization of $4.47 billion. Riverwater Partners Small Cap Strategy stated the following regarding StoneX Group Inc. (NASDAQ:SNEX) in its Q1 2025 investor letter: "Our largest weighting in the portfolio remains StoneX Group Inc. (NASDAQ:SNEX), a more defensive financial services firm. As a capital markets operator, SNEX stands to benefit from increased volatility. Looking ahead, should market conditions deteriorate and valuations compress further, we may look to add exposure to traditional banks when the risk/reward becomes more favorable." A commodities trader staring intently at an online trading platform, examining the trading opportunities. StoneX Group Inc. (NASDAQ:SNEX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held StoneX Group Inc. (NASDAQ:SNEX) at the end of the first quarter, which was 27 in the previous quarter. In Q1 2025, StoneX Group Inc. (NASDAQ:SNEX) reported earnings of $71.7 million reflecting increases of 35% year-over-year. While we acknowledge the potential of StoneX Group Inc. (NASDAQ:SNEX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of SNEX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
18-06-2025
- Business
- Yahoo
Play Short-Term Market Volatility With These ETFs
The Trump administration's chaotic tariff policies and escalating geopolitical tensions in the Middle East are making investors anxious, pushing them toward safe-haven assets. The S&P 500 has faced increased volatility in 2025, with the broad market index falling 2.7% and then rebounding 4.1% over the past month. The index fell about 1.1% on June 13, driven by intensifying protests and mounting Iran-Israel tensions. According to SP Global, U.S. investors remained risk-averse for the fifth consecutive month, even as equity market concerns have been easing. Per an investor sentiment survey, according to the S&P Global Investment Manager Index, the risk appetite of investors has been gradually increasing since April. Yet, June's reading has remained negative, highlighting continued caution. Even with easing in risk aversion, according to SP Global, investors continue to forecast net market losses in the month ahead. The survey's Equity Returns Index fell to -32% in June from -29% in May, reflecting a modest decline in investor confidence and a slightly more pessimistic outlook compared to the previous month. According to Kathryn Rooney Vera, chief market strategist at StoneX Group, as quoted on Reuters, with the market being highly sensitive to headlines and short-term events, short-term market swings have intensified. Struggling with escalating tensions in the Middle East after renewed military strikes between Israel and Iran, concerns over potential supply disruptions are a headwind. According to Rooney Vera, a possible closure of the Strait of Hormuz could restrict global oil supply chains, driving up prices and accelerating inflationary pressures. Planned protests across major U.S. cities are drawing investor attention. According to Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, as quoted on Reuters, the ongoing protests could dampen investor confidence, from a psychological perspective. Any blow to investor sentiment or risk appetite could further weigh on the S&P 500, adding to the headwinds it already faces in the near term. In periods of rising uncertainty, increasing exposure to volatility ETFs in the short term can be a winning move for investors. These funds have delivered short-term gains during periods of market chaos and could climb further if volatility endures. In the current economic environment, volatility-focused funds and strategies are ideal to reassess volatility exposure and for investors with a short-term horizon. With volatility rising due to trade tensions, policy uncertainty, geopolitical conflict and technical market breakdowns, increasing exposure to the below-mentioned funds can be a good strategic move (See: all Volatility ETFs here). iPath Series B S&P 500 VIX Short-Term Futures ETN seeks to track the performance of the S&P 500 VIX Short-Term Futures Index Total Return and has amassed an asset base of $375.1 million. The index offers exposure to a daily rolling long position in the first and second month VIX futures contracts. VXX charges an annual fee of 0.89% and has a one-month average trading volume of about 4.39 million shares. iPath Series B S&P 500 VIX Short-Term Futures ETN has gained 17.87% over the past three months and 16.56% over the past year. ProShares VIX Short-Term Futures ETF seeks to track the performance of the S&P 500 VIX Short-Term Futures Index and has amassed an asset base of $179.5 million. The index measures the movements of a combination of VIX futures and is designed to track changes in the expectation for one month in the future. The fund is ideal for investors looking to gain from an increase in expected volatility of the S&P 500. VIXY has a one-month average trading volume of about 1.1 million shares. ProShares VIX Short-Term Futures ETF has gained 17.48% over the past three months and 14.66% over the past year. The fund charges an annual fee of 0.85%. ProShares VIX Mid-Term Futures ETF seeks to track the performance of the S&P 500 VIX Mid-Term Futures Index and has amassed an asset base of $21.4 million. The index measures the movements of a combination of VIX futures and is designed to track changes in the expectation for VIX five months in the future. The fund is ideal for investors looking to gain from an increase in expected volatility of the S&P 500. VIXM has a one-month average trading volume of about 98,000 shares. ProShares VIX Mid-Term Futures ETF has gained 12.64% over the past three months and 22.03% over the past year. The fund charges an annual fee of 0.85%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research Reports ProShares VIX Short-Term Futures ETF (VIXY): ETF Research Reports ProShares VIX Mid-Term Futures ETF (VIXM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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First Post
16-06-2025
- Business
- First Post
Markets jitter and stagflation fears grow as Israel-Iran clash escalates
An escalating conflict between Israel and Iran has rattled global markets, pushing oil prices sharply higher and sparking renewed fears of stagflation read more People watch from a bridge as flames from an Israeli attack rise from Sharan Oil depot, following Israeli strikes on Iran, in Tehran, Iran, June 15, 2025. Reuters As intensified over the weekend, global financial markets responded with sharp volatility, sending investors scrambling for safety. The conflict, which has now escalated into direct military strikes, has heightened geopolitical risk and stoked fears of stagflation — a toxic mix of stagnant growth and rising inflation. Surge in oil prices and flight to safe havens One of the most immediate and visible effects of the Israel-Iran escalation was a surge in crude oil prices. Reports say Brent crude jumped 5.5 per cent in early trading on Monday, though it quickly pared gains to under 1 per cent later in the day. On Sunday, Brent futures surged by nearly 4 per cent, trading close to $76.94, following a 7 per cent rise on Friday, the largest single-day gain since the onset of the Russia-Ukraine war in 2022. West Texas Intermediate (WTI) crude also rose by $4.94, or 7.26 per cent, closing at $72.98 per barrel on Friday. Earlier, it had surged over 14 per cent, reaching its highest level since January 2025. This upward momentum continued as markets opened on Sunday evening. STORY CONTINUES BELOW THIS AD The spike in oil prices was accompanied by a corresponding rise in gold and the US dollar, traditional safe-haven assets during times of global uncertainty. Gold approached near-record highs, while the dollar strengthened, drawing in capital from riskier assets. Kathryn Rooney Vera of StoneX Group noted that the market is 'headline-driven and short-term focused,' emphasising the volatility and rapid shifts in investor sentiment. Market selloff reflects regional anxiety While oil and safe-haven assets gained, equity markets in the region suffered. West Asian stock markets fell amid the chaos and analysts warned that global markets were likely to follow suit. The Dow Jones Industrial Average dropped 769 points, or 1.8 per cent, while the S&P 500 fell over 1 per cent and the Nasdaq lost 1.3 per cent. US futures also opened marginally lower on Sunday night. Meanwhile, European equity futures edged downwards and Chinese stocks swung between gains and losses on Monday. However, some Asian markets displayed surprising resilience. Japan's Nikkei 225 gained 1.1 per cent, buoyed by a rally in defence stocks as Japan and the EU discussed deeper defence industry cooperation. Despite these localised gains, the general sentiment was one of caution and unease. Tim Waterer, chief market analyst at KCM Trade, remarked that markets were showing 'a surprisingly brave face' given the uncertain trajectory of the conflict. Strait of Hormuz in focus: A chokepoint for global oil At the heart of global energy market anxiety is the Strait of Hormuz, a narrow waterway between Iran and Oman through which roughly 20 per cent of the world's oil flows. A potential closure or disruption of this strategic corridor would send shockwaves through oil markets. Rooney Vera of StoneX expressed concern over the possibility of the Strait being closed due to military action or retaliation, warning that such a scenario 'could worsen inflationary pressures' globally. Although Iran's oil export facilities had not been directly hit by Israeli strikes, images of a massive blaze at a Tehran fuel depot only heightened these fears. Eric Beyrich, a portfolio manager at Sound Income Strategies, highlighted that while the attacks had not yet damaged Iran's oil infrastructure, the situation was fluid and could change quickly. Any escalation that endangers the free flow of oil could prompt prices to spike to triple digits, adding further stress to an already fragile global economy. STORY CONTINUES BELOW THIS AD Escalating geopolitical risk and the threat of stagflation With energy prices rising sharply and economic growth slowing in several regions, analysts have raised the spectre of stagflation. This concern mirrors the economic conditions of the 1970s, when oil shocks contributed to prolonged inflation and weak growth. Jim Carroll of Ballast Rock Private Wealth told Bloomberg that 'it's more of an oil story than an equity story at this point,' suggesting that the implications of the conflict could manifest most strongly through inflation rather than immediate financial market collapse. But inflation has a way of seeping into all corners of the economy. Higher oil prices increase costs for transportation, manufacturing, and food, which in turn erode consumer purchasing power. Analysts fear that central banks could find themselves in a bind. On one hand, they may want to lower interest rates to support slowing economies. On the other, rising energy costs risk reigniting inflation, potentially forcing monetary authorities to delay or reverse any planned rate cuts. The Federal Reserve, Bank of Japan and other major central banks are set to announce interest rate decisions this week, adding further uncertainty. Historical echoes: Lessons from the Russia-Ukraine war The recent conflict has reignited memories of the oil market shock following Russia's invasion of Ukraine in February 2022. That conflict pushed Brent crude to over $139 per barrel and WTI to $133, according to historical data cited in multiple analyses. The war caused Brent to surge by 56.33 per cent and WTI by 52.33 per cent, fundamentally altering the volatility landscape of crude markets. A 2023 study using multiresolution causality testing found that the Russia–Ukraine war accounted for over 70 per cent of oil price fluctuations during its peak impact period. Similar dynamics may be in play with the Israel-Iran conflict, though so far, the oil market response has been more tempered. STORY CONTINUES BELOW THIS AD Rahul Kalantri, Vice President of Commodities at Mehta Equities, noted that 'the recent sharp rally and heightened volatility' due to the Israel-Iran conflict warrant a cautious trading approach. He identified $74.80 as a key resistance level for WTI, suggesting that the current price spikes could persist if geopolitical instability continues. Investors struggle to price in risk As markets try to absorb the implications of the widening conflict, many investors remain unsure of how to position themselves. Bond markets offered mixed signals, with yields on US Treasuries and Asian government bonds rising, suggesting that investors were not yet fully embracing risk-off strategies. However, the Cboe Volatility Index (VIX), often referred to as Wall Street's 'fear gauge,' closed at 20.82 on Friday — its highest level in three weeks — indicating a growing sense of unease among traders. Although Israeli assets initially took a hit, the shekel rebounded by more than one per cent against the dollar after several days of losses. Jack Ablin, Chief Investment Officer at Cresset Capital, pointed out that some investors were relieved that Iran's military response had not been as robust as feared. 'The equity market will breathe somewhat of a sigh of relief,' he said, though he also cautioned that the situation remains unpredictable. STORY CONTINUES BELOW THIS AD Broader global impacts: From energy security to inflation policy The global economy was already grappling with slow growth and uneven recovery. The conflict in West Asia threatens to further destabilise trade flows, particularly energy supply chains. Disruptions or even perceived threats to oil exports from the Gulf region can tighten supply and raise shipping costs due to increased insurance premiums and rerouting. In Europe and Asia, governments are likely to reassess their energy strategies. China has already signalled interest in diversifying supply routes and expanding strategic oil reserves. Meanwhile, the US may consider tapping its own Strategic Petroleum Reserve to mitigate price spikes, though such moves offer only temporary relief. For energy-importing nations, this latest crisis serves as a reminder of the need to diversify away from geopolitical chokepoints. Longer-term solutions may involve increased investment in renewables, more robust storage capacity and international coordination on emergency reserves. Volatility set to continue amid unresolved conflicts With both the Israel-Iran confrontation and the ongoing war in Ukraine showing no sign of resolution, markets are expected to remain volatile. Investors are likely to continue shifting between risk-on and risk-off modes, depending on developments on the ground and central bank signals. Analysts are divided on how long the current oil price rally will last. Norbert Rücker of Julius Baer emphasised that the oil market today is far more resilient, with ample global storage and growing exports from outside West Asia. However, he conceded that oil 'is the fever measure' of such conflicts, often reacting faster and more strongly than other indicators. In the meantime, central banks will need to tread carefully. A premature rate cut could risk reigniting inflation, while holding rates too high for too long could stall growth, particularly in emerging economies already dealing with debt stress and slowing demand. STORY CONTINUES BELOW THIS AD A world on edge The latest escalation between Israel and Iran has once again exposed the fragility of global markets in the face of geopolitical upheaval. While the oil markets have not reached crisis levels seen during the Russia-Ukraine war, the risk premium is clearly back, with investors bracing for further shocks. The conflict highlights the interconnectedness of global financial systems, where a regional flare-up can ripple through commodity markets, monetary policy decisions, and consumer prices worldwide. Whether the world is on the brink of another oil crisis or merely witnessing a temporary spike, one thing is clear: the days of energy market stability are behind us—at least for now.
Zawya
16-06-2025
- Business
- Zawya
Investors unnerved as Israel-Iran conflict fuels oil market rally
NEW YORK/GDANSK: Investors were on edge as financial markets reopened on Sunday, with crude oil prices initially up near 4% as markets were gripped by the escalating threat of a sweeping conflict in the Middle East. U.S. stock futures opened marginally lower. Israel and Iran launched fresh attacks on each other on Sunday, killing and wounding civilians and raising concerns of a broader regional conflict, with both militaries urging civilians on the opposing side to take precautions against further strikes. Yemen's Iran-aligned Houthis joined the fray. Images from Tehran showed the night sky lit up by a huge blaze at a fuel depot after Israel began strikes against Iran's oil and gas sector - raising the stakes for the global economy and the functioning of the Iranian state. "The market is very headline-driven and short-term focused, so there's just a lot of volatility over the near term," said Kathryn Rooney Vera, chief market strategist at StoneX Group. Brent crude futures prices added just under 4% to trade near $76.94 after resuming trading on Sunday, having risen 7% on Friday as Israel and Iran first traded strikes. They later pared gains to trade up $2.14 at $76.37. "It is noteworthy that while the Israelis have attacked Iran's natural gas processing facility, which fuels its power grid, it hasn't as of now hurt its oil export facilities," said Eric Beyrich, portfolio manager at Sound Income Strategies. Of the early market moves, he said "this could all change as the day unfolds." Israel's air offensive against Iran that began early on Friday, killing commanders and scientists and bombing nuclear sites in a stated bid to stop Tehran from building an atomic weapon, knocked risky assets including stocks, on Friday. It also lifted oil prices and prompted a rush into gold and the dollar, which resumed its role as a safe-haven asset for the first time in months. Rallying oil prices pose a risk to the inflation outlook, as central banks around the world grapple with the impact on prices from Trump's trade tariffs and the effect on economic growth. Rooney Vera at StoneX said she was worried about possible supply restrictions in case of a closure of the Strait of Hormuz, a narrow shipping lane between Iran and Oman. Any closure could restrict trade and further impact global oil prices. "That could worsen inflationary pressures," she said. Investors are skittish, and the S&P 500 appears to have stalled after rallying about 20% from its trade war-induced April low to near-record highs. Futures opened slightly lower on Sunday, with S&P 500 futures down 0.2% early in the overnight session. "The equity market will breathe somewhat of a sigh of relief that Iranian military muscle is not at the level that some of us feared," said Jack Ablin, chief investment officer of Cresset Capital. Meanwhile, protests, organised by the "No Kings" coalition to oppose Trump's policies, and the assassination of a Minnesota state lawmaker on Saturday, added to downbeat sentiment. 'It's more of an oil story than an equity story at this point,' said Jim Carroll, senior wealth adviser and portfolio manager at Ballast Rock Private Wealth. 'Stocks right now seem to be hanging on." The Cboe Volatility Index, often called the Wall Street "fear index," finished at 20.82 on Friday, its highest close in three weeks. (Reporting by Suzanne McGee, Saqib Iqbal Ahmed and Davide Barbuscia in New York, and Linda Pasquini in Gdansk; Editing by Alden Bentley, Richard Chang, Amanda Cooper, Susan Fenton and Matthew Lewis)
Globe and Mail
15-06-2025
- Business
- Globe and Mail
Investors unnerved as Israel-Iran conflict fuels turmoil in oil markets
Investors were on edge ahead of markets reopening late on Sunday, gripped by anxiety over nationwide protests against President Donald Trump and the escalating threat of a sweeping conflict in the Middle East. Israel and Iran launched fresh attacks on each other into Sunday, with Prime Minister Benjamin Netanyahu saying Israeli strikes would intensify as Tehran called off nuclear talks that Washington had held out as the only way to halt the bombing. Meanwhile, Yemen's Iran-aligned Houthis joined the fray. 'The market is very headline-driven and short-term focused, so there's just a lot of volatility over the near term,' said Kathryn Rooney Vera, chief market strategist at StoneX Group. Oil prices rose by 7% on Friday, as Israel and Iran traded strikes, and investors will be watching closely to see how prices react when markets open later. 'So far we are at a stage of 'controlled confrontation,'' said Lombard Odier's chief economist, Samy Chaar, in which it is too soon to call for real and persistent economic damage despite high risk. 'For now, you get spikes in the oil price, you get volatility, everyone's a bit nervous, but there is no clear sign that we're moving toward the no-return type of scenario.' On Saturday, Israel appeared to have also hit Iran's oil and gas industry for the first time, with Iranian state media reporting a blaze at a gas field. A timeline of the Israel-Iran conflict and tensions between the two countries Israel's air offensive against Iran that began early on Friday, killing commanders and scientists and bombing nuclear sites in a stated bid to stop Tehran from building an atomic weapon, knocked risky assets including stocks, on Friday. It also lifted oil prices and prompted a rush into gold and the dollar, which resumed its role as a safe-haven asset for the first time in months. Oil prices at close to six-month highs could pose a risk to the inflation outlook, as central banks around the world grapple with the impact on prices from Trump's trade tariffs and the effect on economic growth. Rooney Vera at StoneX said she was worried about possible supply restrictions in case of a closure of the Strait of Hormuz, a narrow shipping lane between Iran and Oman. Any closure could restrict trade and impact global oil prices. 'That could worsen inflationary pressures,' she said. Lombard Odier's Chaar said a spike in oil prices should not in theory derail monetary policy for now, as possible disruption to Iranian oil supplies could be partly offset by output rises elsewhere. 'It seems to me that long gone are the days when a central bank would hike rates because of a spike in the oil prices,' Chaar said, adding that policy-makers will more likely stay focused on economic fundamentals and demand-drivers. Investors are nervous though, and the S&P 500 appears to have stalled after rallying about 20% from its trade war-induced April low to near-record highs. 'The overall risk profile from the geopolitical situation is still too high for us to be willing to rush back into the market,' said Alex Morris, chief investment officer of F/m Investments in Washington. Meanwhile, protests, organized by the No Kings coalition to oppose Trump's policies, and the assassination of a Minnesota state lawmaker on Saturday, added to downbeat sentiment. U.S. stock futures are set to resume trading at 6 p.m. (2200 GMT) on Sunday. With risky assets sinking, investors' expectations for near-term stock market gyrations jumped. The Cboe Volatility Index, often called the Wall Street 'fear index,' rose 2.8 points to finish at 20.82 on Friday, its highest close in three weeks. Michael Thompson, co-portfolio manager at boutique investment firm Little Harbor Advisors, said he would be watching near-term volatility futures prices for any rise toward or above the level for futures set to expire months from now. 'This would indicate to us that near-term hedging is warranted,' he said.
