Commission tasked to propose directive safeguarding workers against radiation hazards
10:59 AM - British clothing retailer Joules' shares plummet as it anticipates a significant loss for the year due to reduced demand for outdoor and rainwear during the heatwave and consumer caution over higher costs. The stock had fallen by almost 41% at its peak.
10:31 AM - The dollar's strength is pushing gold prices down. Gold dropped by 0.4%, hitting its three-week low, as expectations of additional interest rate hikes in the U.S. make commodities more expensive for investors outside the country.
10:05 AM - Just Eat Takeaway's shares skyrocket following the announcement of the sale of its iFood stake to Prosus, Europe's largest food delivery company's stock jumped by up to 29.6%, reaching its highest level in over two months. Prosus will pay €1.5 billion in cash and an additional contingent consideration of up to €300 million for the 33% stake.
09:35 AM - Bitcoin takes a steep dive as the week comes to an end. The digital currency has dropped by up to 8.6% to a three-week low of $21,397 due to unclear reasons. Over the weekend, Bitcoin had breached the psychologically important $25,000 milestone, elevating due to hopes for a more cautious U.S. monetary policy that attracted investors to riskier asset classes.
09:19 AM - Hypoport shares sank to the bottom of the SDax, declining by up to 9% to €227.60, following a downgrade from "Hold" to "Sell" by Metzler.
07:32 AM - The dollar index has been boosted by the prospect of more substantial interest rate hikes in the U.S., increasing by 0.2 percent to 107.72 points, its highest level in a month. The ECB, however, is struggling to keep up with the U.S. Federal Reserve, and the euro is losing ground, despite assurances of continued interest rate increases from ECB board members.
according to an analyst from Commerzbank, the debate over the ECB's potential interest rate increase - either 25 or 50 basis points - in September underscores how far behind the ECB is compared to the Fed. This disparity is problematic for the euro.
Although traditionally, higher interest rates strengthen the dollar and raise the opportunity cost of holding gold, recent trends have defied this pattern. Institutional demand and macroeconomic risks are driving gold's popularity as a hedge against currency devaluation, debt concerns, and global instability, even in the face of rate hikes. Gold reached record highs of $3,500/oz, despite expectations of future Fed rate cuts, and analysts predict a retest of this level soon.
In contrast, near-term softness in the dollar due to dovish Fed policies could be countered by safe-haven demand during geopolitical crises. Key upcoming events, like the Federal Open Market Committee meeting in May, the April jobs report, and potential tariff developments, could influence both markets significantly.
- Despite the traditional pattern of higher interest rates strengthening the dollar and making gold less appealing, institutional demand and macroeconomic risks have made gold a popular hedge against currency devaluation, debt concerns, and global instability.
- Even with expectations of future Fed rate cuts, gold reached record highs of $3,500/oz, indicating analysts' predictions of a retest of this level soon.
- The near-term softness in the dollar due to dovish Fed policies could be offset by safe-haven demand during geopolitical crises.
- Key upcoming events, such as the Federal Open Market Committee meeting in May, the April jobs report, and potential tariff developments, could significantly influence both the gold market and the dollar.
- The debate over the ECB's potential interest rate increase - either 25 or 50 basis points - in September underscores how far behind the ECB is compared to the Fed, which could be problematic for the euro in the context of finance and investing, particularly when considering the business and technology trends.
