Latest news with #TariffWar
South China Morning Post
04-07-2025
- Business
- South China Morning Post
De-dollarisation favours Asian assets despite record US stock run, Societe Generale says
The rotation to emerging markets in Asia that spurred the US dollar's worst performance in more than five decades will probably continue, as a de-dollarisation trend outweighs a record rally in US stocks, according to Societe Generale. Global investors had turned cautious about their estimated US$62 trillion in dollar-based assets – equivalent to the size of the Nasdaq – as the Trump administration's 'reciprocal tariffs' eroded the status of the world's reserve currency, analysts led by Frank Benzimra at the French bank said in a report on Friday. Also reducing the appeal of the dollar were a potential softening of US growth and the recent retreat in the price of crude oil, which is denominated in the US currency, according to the report. 'We acknowledge that US exceptionalism is diminishing and that de-dollarisation is under way,' said Benzimra, the bank's Hong Kong-based head of Asian equity strategy. 'As the resilience of the [US] economy is expected to wane, the risks to Treasury yields are skewed to the downside.' Societe Generale's call added to a drumbeat for selling US assets that started when the tariff war sowed global distrust in the dollar and a ballooning US budget deficit triggered currency debasement concerns. The pivot may have a profound impact on the global investment landscape, reversing years of outperformance by US assets. The US dollar index dropped 11 per cent in the first six months, the worst start to a year since 1973. In Asia, the Taiwan dollar appreciated the most versus the US currency, with a 14 per cent gain. Japan's yen strengthened 8.7 per cent, and South Korea's won advanced 7.8 per cent. The MSCI Asia-Pacific Index, a broad gauge of stock markets in the region, has risen 12 per cent this year, almost doubling the gain in the S&P 500.
Sydney Morning Herald
04-07-2025
- Business
- Sydney Morning Herald
ASX Runners: Santa Fe, Energy World, Next Science and Loyal Metals
The close to the financial year impressively saw the ASX crack 8600 points on the index for the first time in history. The all-time highs were welcomed largely thanks to all four major banks forecasting a July interest rate cut, as soft data brought forward forecasts and added a potential second rate cut within the calendar year. All-time highs on the back of weak global economic data and geopolitical instability don't seem like the strongest foundation for markets. Regardless, materials stacked on most of the Aussie index's gains as the copper price hit US$10,000 (A$15,200) per tonne for the first time this year. The red metal has turned into one of 2025's hottest commodities plays, with huge global M&A and copper-gold raisings forecasting continued strength into the new financial year. Dominoes was the market's most notable loser. Its share price dropped nearly 25 per cent, after its recently appointed revolutionary CEO and managing director resigned. The surprise 'see ya later' left the market reeling, asking the remaining board 'what the heck just happened?'. Gold finished the financial year flat, as safe haven demand dissipated, ending a near six-month winning streak for the yellow metal. The precious metal remains at all-time high prices thanks to threats of United States President Donald Trump's returning Tariff War looming large for next week's market digestion. This week's Bulls N' Bears Runners, like the broader ASX, was dominated by the materials sector. Taking out top spot was a microcap minnow vanadium explorer turned West African gold hopeful, which snapped up a huge project from a big brother goldie in the booming region. Up 416% (3.1c – 16c) This week's Runner of the week was snatched by Santa Fe Minerals, which blasted off on Thursday after unveiling its acquisition of the Eburnea gold project in Côte d'Ivoire from Turaco Gold.
The Age
04-07-2025
- Business
- The Age
ASX Runners: Santa Fe, Energy World, Next Science and Loyal Metals
The close to the financial year impressively saw the ASX crack 8600 points on the index for the first time in history. The all-time highs were welcomed largely thanks to all four major banks forecasting a July interest rate cut, as soft data brought forward forecasts and added a potential second rate cut within the calendar year. All-time highs on the back of weak global economic data and geopolitical instability don't seem like the strongest foundation for markets. Regardless, materials stacked on most of the Aussie index's gains as the copper price hit US$10,000 (A$15,200) per tonne for the first time this year. The red metal has turned into one of 2025's hottest commodities plays, with huge global M&A and copper-gold raisings forecasting continued strength into the new financial year. Dominoes was the market's most notable loser. Its share price dropped nearly 25 per cent, after its recently appointed revolutionary CEO and managing director resigned. The surprise 'see ya later' left the market reeling, asking the remaining board 'what the heck just happened?'. Gold finished the financial year flat, as safe haven demand dissipated, ending a near six-month winning streak for the yellow metal. The precious metal remains at all-time high prices thanks to threats of United States President Donald Trump's returning Tariff War looming large for next week's market digestion. This week's Bulls N' Bears Runners, like the broader ASX, was dominated by the materials sector. Taking out top spot was a microcap minnow vanadium explorer turned West African gold hopeful, which snapped up a huge project from a big brother goldie in the booming region. Up 416% (3.1c – 16c) This week's Runner of the week was snatched by Santa Fe Minerals, which blasted off on Thursday after unveiling its acquisition of the Eburnea gold project in Côte d'Ivoire from Turaco Gold.
West Australian
04-07-2025
- Business
- West Australian
ASX Runners: Santa Fe, Energy World, Next Science and Loyal Metals
The close to the financial year impressively saw the ASX crack 8600 points on the index for the first time in history. The all-time highs were welcomed largely thanks to all four major banks forecasting a July interest rate cut, as soft data brought forward forecasts and added a potential second rate cut within the calendar year. All-time highs on the back of weak global economic data and geopolitical instability don't seem like the strongest foundation for markets. Regardless, materials stacked on most of the Aussie index's gains as the copper price hit US$10,000 (A$15,200) per tonne for the first time this year. The red metal has turned into one of 2025's hottest commodities plays, with huge global M&A and copper-gold raisings forecasting continued strength into the new financial year. Dominoes was the market's most notable loser. Its share price dropped nearly 25 per cent, after its recently appointed revolutionary CEO and managing director resigned. The surprise 'see ya later' left the market reeling, asking the remaining board 'what the heck just happened?'. Gold finished the financial year flat, as safe haven demand dissipated, ending a near six-month winning streak for the yellow metal. The precious metal remains at all-time high prices thanks to threats of United States President Donald Trump's returning Tariff War looming large for next week's market digestion. This week's Bulls N' Bears Runners, like the broader ASX, was dominated by the materials sector. Taking out top spot was a microcap minnow vanadium explorer turned West African gold hopeful, which snapped up a huge project from a big brother goldie in the booming region. SANTA FE MINERALS (ASX: SFM) Up 416% (3.1c – 16c) This week's Runner of the week was snatched by Santa Fe Minerals, which blasted off on Thursday after unveiling its acquisition of the Eburnea gold project in Côte d'Ivoire from Turaco Gold. The news and accompanying $1.2 million capital raising at an unheard of 61 per cent premium to its last traded share price, sent the market into a frenzy. The company's share price propelled up to a staggering 416 per cent to a high of 16 cents, from a previous week close of just 3.1c. For a company that has long slogged it out as a Western Australian vanadium battler, this bold pivot into West Africa to explore Eburnea's 20-kilometre plus mineralised corridor looks a promising and savvy pick up. Santa Fe secured the Eburnea project for a lean 12 million shares, 4 million performance rights and future 2.5 per cent net smelter royalty, valuing it at just $600,000 at the 5c vending price. The project includes the Satama and Bouake North permits covering 550 square kilometres. Satama has already shown its mettle with promising high-grade hits, such as 26m grading a juicy 4.82 grams per tonne (g/t) gold and a bonanza 3m at 35.8g/t along a 2km mineralised zone. The company says geophysical surveys hint at multiple parallel zones ripe for expansion. Bouake North is a little greener a prospect, sitting 35km along strike from Endeavour Mining's 3-million-ounce Lafigué gold mine with limited drilling or modern exploration. Santa Fe is gearing up to drill high-priority targets and extend the promising zones, aiming to unlock a major resource in this gold-hot region. The company's transformation from a vanadium underdog to a focussed African gold explorer comes as Côte d'Ivoire's goldfields heat up, with Turaco banking an impressive $60 million capital raise prior to offloading Eburnea to focus on its 3.6-million-ounce Afema project in the country's south. With a massive surge and a new lease on life near a world-class gold mine, Santa Fe looks primed to ride the West African gold wave as investors are betting this is just the opening salvo for a glittering run. ENERGY WORLD CORPORATION (ASX: EWC) Up 362% (2.1c – 9.7c) Bulls N' Bears' silver medal this week went to LNG developer Energy World Corporation, which unveiled a bombshell subscription agreement shake-up on Tuesday to erase a colossal US$440 million (A$659 million) in debt - plus accrued interest - sending its share price into the stratosphere. For a company long weighed down by its debt, this was the kind of news that had investors flocking back to the once high-flyer in the hope it might fulfil its promise of becoming a heavyweight in the Asian LNG arena. The transformative deal was ironed out with lenders Energy World International (EWI) and Slipform Engineering Group to convert the debt into fully paid ordinary shares at a conversion price of 88c per share – a staggering 44-fold premium on the 2c average share price of the previous month. If shareholders give the green light, the 782.2 million shares will equate to about 25 per cent of the current shares on issue. Translating to an equity cost of just $16.4 million for shareholders at its last traded 2.1c share price, a miniscule fraction of the debt wiped out. The deal boosts EWI and Slipform's combined stake from 41 per cent to 53 per cent, cementing their grip over Energy World while slashing its financial baggage. Energy World is no small-scale gas fryer. The independent energy player has substantial infrastructure assets, including LNG projects throughout South East Asia. Its crown jewel is its Philippines LNG Hub, which is poised to be a linchpin in the growing nation's emerging gas industry. Management says the terminal's strategic importance can't be overstated, especially as the Philippines ramps up its energy infrastructure to meet growing demand. When the deal is set in stone, the company says its net asset value will be pegged at a massive 31c per share, making the company's current valuation look like an absolute bargain. The company also hailed EWI, Slipform and the Elliott family for slashing its debt pile and backing it with below-market, unsecured loans – a level of support described as 'unprecedented on the ASX'. The market couldn't get enough of the news on Tuesday, before things kicked into top gear on Wednesday with $4.2 million in stock traded, as its share price screamed to a high of 9.7c, a massive 362 per cent leap from last week's close of just 2.1c. For years Energy World's share price has languished at about a 90 per cent discount to its net tangible assets, a reflection of the debt albatross hanging over its head. Now that it's no longer the case, the company can push for the debt-to-equity deals it needs to commercialise its assets and cash in a burgeoning Philippines' gas frontier. NEXT SCIENCE LTD (ASX: NXS) Up 108% (7.2c – 15c) Bulls N' Bears' bronze was scooped up by medical tech innovator Next Science Limited. The company offloaded a majority of its assets on Tuesday, unveiling a blockbuster binding asset purchase agreement with Italy's Demetra Holding S.p.A for US$50 million (A$76 million), sending its share price soaring. The hefty deal to sell Next Science's proprietary bacterial eradicating XBIO technology, regulatory approvals and intellectual property, came in at a cool US$50 million, plus Demetra taking on a bunch of liabilities. The asset purchase is subject to shareholder approval, but is expected to net the company about US$30 million (A$45.6 million) after debts, taxes, and costs, translating to a tidy shareholder return of about 15.6c per share. While it's a nice leg up from last week's traded price of 7.2c, it's not quite the nearly 50c highs from a little over a year ago. One could imagine shareholders might not be jumping for joy over the deal. However punters who scooped up shares last week will be cheering. With $1.7 million in stock traded on Tuesday, the company's share price shot up 108 per cent to a high of 15c intraday, up from last week's close of a 7.2c low, giving the company a much needed shot in the arm. Sydney-based Next Science has its R&D hub in Jacksonville, Florida, where it has been pioneering its infection-eliminating XBIO tech since 2012. The company says its arsenal ranges from antimicrobial gels to surgical solutions and has made waves in North America, Australia, and New Zealand. The opportunistic Demetra on the other hand is a heavyweight in bone cement and preformed spacer tech for orthopaedic infections. It says it is the perfect buyer for XBIO to wholly own the in-house infections solutions, allowing Next Science to focus on its remaining durable medical equipment assets. The cash-flushed Next Science will now weigh its options. If the deal gets the green light, the injection could be a warm-up act for the company. Having done it once, Next Science will try to replicate its success in the lucrative med-tech arena. LOYAL METALS LTD (ASX: LLM) Up 92% (13c – 25c) Bulls N' Bears' final Runners' spot this week was clinched by another Aussie explorer in Loyal Metals, which took off on the bourse on Wednesday after revealing a timely pivot from lithium to the sizzling copper-gold sector. The pivot came in the form of the historic high-grade Highway Reward mine in central Queensland. The binding option to acquire the long-dormant gem will cost the company up to nine million shares, five million performance shares, a 2 per cent royalty and $250,000 cash to seal the deal. It will also set the stage for Loyal to revive high-grade copper-gold pipes at Highway Reward, which has remained untouched since mining ceased way back in 2005. The project is a former high-grade titan that delivered 3.65 million tonnes at a blistering 5.7 per cent copper and 260,000 ounces of gold at a massive 4.5g/t. The aptly named open pit mine was so rich, they Gregory highway was rerouted to mine it. Nestled in the Mount Windsor volcanic belt, it sits alongside giants such as Newmont's 3.2-million-ounce Mt Leyshon and Yuxin Holding's 3.4-million-ounce Pajingo gold mines. Hysteria took over on the announcement, spiking the share price up to 92 per cent on Wednesday on more than $2.5 million worth of paper trading hands. Loyal says that no exploration has happened since 2005, despite copper prices soaring 680 per cent and gold a whopping 1250 per cent since a 1997 feasibility study. A 5000m drilling campaign will shortly kick off, targeting the prospective mineralisation around the project's dunite intrusion. With $4.4 million in the bank, Loyal can hit the ground running to hunt for new copper-gold-rich discoveries along a 3km strike of polymetallic sulphides. Fuelled by excitement over this long-dormant gem's potential to cash in on sky-high copper and gold prices, the company has made a well-timed grasp away from a long-suffering lithium market. Should it find a repeat of the grades of Highway Reward past, the share price boost this week will look like a blip on the price chart for this exciting exploration hopeful. Is your ASX-listed company doing something interesting? Contact:
Yahoo
23-06-2025
- Business
- Yahoo
EUR/USD: How to Trade the Pair With Fed Decision Imminent Tomorrow
Market reactions remain muted despite Middle East tensions, with volatility limited outside of oil. Focus shifts to Fed as rate cut expectations hinge on data and tariff war impact. EUR/USD eyes a breakout above 1.16, supported by dovish Fed signals and weakening US outlook. Looking for actionable trade ideas to navigate market volatility? For a limited time, get access to InvestingPro's AI-selected stock winners for under $7/month. The sharp rise in tensions between Israel and Iran was expected to create massive turmoil in global financial markets. But apart from oil, both stock and currency markets have shown only limited volatility. If Iran does not go as far as closing the Strait of Hormuz, investors will likely turn their attention to this week's Fed meeting. The general expectation is that interest rates will remain unchanged, so markets will look for any signals about what the Fed might do in the coming months. Meanwhile, the EUR/USD pair is still moving upward. If the Fed takes a more dovish tone on Wednesday, the euro could rise past $1.16 and hold above that level. Based on current market expectations, the Federal Reserve is likely to make its next interest rate cut in September. This is later than what was expected in the first quarter. The delay is mainly due to uncertainty caused by the growing trade tensions, as the US has effectively started a broad tariff war. However, some key economic indicators suggest that the Fed could ease rates sooner. One such sign is the recent GDP data, which showed a quarterly decline for the first time since November 2022. If upcoming data also shows a decline, the Fed will find it hard to ignore the negative trend. As for inflation, the current range of 2–2.5% does not rule out the possibility of rate cuts—especially since inflation has come in below expectations for four straight months. This suggests that if not for the ongoing tariff war, interest rates in the US would likely be lower. As a result, any news about a possible trade deal—especially with China or the EU—could put downward pressure on the US dollar. At the same time, the Fed is also watching the labor market closely. As long as job data remains strong and does not show a sharp decline, the Fed has little reason to rush into further rate cuts. Meanwhile, in the eurozone, the cycle of monetary easing is still in progress. However, early signs suggest that this cycle may be nearing its end. This is reflected in recent comments from ECB President Christine Lagarde and concerns that inflation could rise again if the EU and the US fail to reach a satisfactory trade agreement. In recent days, buyers have been pushing against the resistance level around 1.16. So far, sellers have managed to hold the line, but if the upward pressure continues, a breakout above this level seems likely given the current macroeconomic conditions. If the 1.16 resistance is broken, it could open the path toward much higher levels, with a technical target potentially above 1.23. However, reaching that level would depend on key factors that could weaken the US dollar, such as progress on trade deals or signs of a softer Fed stance. *** If you've been on the hunt for professional-grade investing tools to take your investment strategy to the next level, here's your chance. For a very limited time only, you can get full access to InvestingPro - our all-in-one investing platform - for just under $7 a month using this link. That means immediate access to insightful tools like: ProPicks AI: AI-selected stock winners with a proven track record. InvestingPro Fair Value: Instantly find out if a stock is underpriced or overvalued. Advanced Stock Screener: Search for the best stocks based on hundreds of selected filters and criteria. Top Ideas: See what stocks billionaire investors such as Warren Buffett, Michael Burry, and George Soros are buying. This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services. Related articles EUR/USD: How to Trade the Pair With Fed Decision Imminent Tomorrow US Dollar: Can Rising Geopolitical Tensions Spark a Trend Reversal? USD/JPY Wavers Near Major Support, BoJ's Potential Rate Hold Could Spur Volatility
