Daily Summary: Failure of negotiations in the gulf, oil and gas prices soar

USA

• Monday’s session was marked by an unusually low level of volatility, not seen in recent months. The main US indices fell by about 0.2% to 0.6%. Russell 2000 valuations proved the most volatile.
• With no major corporate releases and no macroeconomic data, investors’ attention turned to Iran. Another round of negotiations is increasingly in doubt, and investors’ anxiety and impatience are clearly reflected in commodity prices.
  • Donald Trump himself addressed a series of Iranian demands in a post on the Truth Social platform. He reportedly responded negatively to Iran’s demands regarding reparations.
  • Iranian representatives reportedly stated that the status of the Strait of Hormuz will not return to its pre-February 2025 state.
• A number of investment firms raised their year-end targets for the S&P 500.
• The new Federal Reserve Chair, Kevin Warsh, completed the process of selling his financial assets, in line with the procedure mandated by the Fed ethics committee.

Company news, USA

• Apple (AAPL.US): The stock falls about 1% after receiving a negative recommendation from an investment bank. Analysts cited pressure on margins and pricing for new iPhones as the main factor.
• Intel (INTL.US): The US chipmaker drops as much as 3% at the open after announcing a new share issuance to fund its investments. The offering is worth as much as USD 15 billion.
• Monday.com (MNDY.US): The software provider plunges as much as 9% after its earnings release. Despite a clear beat versus market consensus (Revenue: USD 364.6m vs USD 355m; EPS: USD 1.48 vs USD 1.11), disappointing guidance clearly worried shareholders.
• Berkshire Hathaway (BRKB.US): The investment company rises more than 2% today despite moderate results. Slight operating gains are offset by an announcement of substantial share buybacks.

Europe

• European indices are under strong pressure from gas prices, which surged as negotiations with Iran appear increasingly unpromising. Futures on most major European indices end the day slightly lower. The UK’s FTSE 100 performs worst on the day, sliding about 0.5%.

Company news, Europe

• Vistry Group: Shares fall 12% following reports that Allianz may reduce trade credit insurance coverage among building materials suppliers in the UK.
• Stabilus: The group drops about 5% after announcing the termination of its contract with the company’s current CFO.
• Volkswagen AG: The company’s main shareholders, the Porsche and Piëch families, are reportedly pressuring other major shareholders to support a planned program of radical reforms at the company. Shares fall about 1%.

Forex

• The yen weakens sharply again. Japan’s currency is posting crushing losses against most major currencies. The British pound gains the most versus the yen, up as much as 1%. It is followed by the US dollar and the euro, up 0.9% and 0.7%, respectively.
• The Swiss franc is also weaker, sliding 0.3% to 0.5% against major currencies.

Commodities

• Hydrocarbon prices return to strong gains, driven by the presumed failure of negotiations between Oman, Iran, and the US.
• Oil, both Brent and WTI, rises by more than 6%. Brent moves back above USD 87 per barrel.
• Natural gas prices in Europe surge. Contracts rose more than 13% in today’s session, reaching EUR 61.
• Silver recovers part of its losses after bouncing off around USD 55. Prices rise about 2%.

Crypto

• Crypto market sentiment on Monday is clearly negative. The vast majority of tokens are down.
• The biggest decliner among major tokens is Ethereum, down about 2.5% and below USD 1,880.
• Bitcoin and Solana follow close behind, also down about 2%. Bitcoin falls back below USD 64,000.