Latest news with #SEB
Zawya
2 days ago
- Business
- Zawya
Euro zone bond yields edge higher with Middle East conflict, central bank meetings in focus
Euro zone yields were slightly higher on Thursday, as investors focused on a series of monetary policy decisions while watching developments in the Middle East. The U.S. central bank held rates steady as widely expected on Wednesday, with Chair Jerome Powell saying he expected to see more tariff-driven price hikes in coming months. Investors were also watching a series of central bank policy decisions in Europe, with Norway's central bank's surprise rate cut in focus. Meanwhile, financial markets remained on edge over the possible entry of the United States into the week-old Israel-Iran conflict. Germany's 10-year bond yield was up 2 basis points on the day at 2.52%, retracing some of the previous day's fall, but still trading within its recent range. The yield on the two-year Schatz was up half a basis point at 1.85%. Norway's central bank unexpectedly cut its policy interest rate by 25 basis points to 4.25% on Thursday, its first reduction of borrowing costs in five years. The decision sent yields on the 3-year Norwegian bond down 17 bps in their biggest intraday drop since March 2023. "Obviously, today's decision to cut rates was a big surprise," said Erica Dalstoe, chief strategist for Norway at SEB. After the earlier-than-expected reduction on Thursday, markets have now priced in the risk of an additional rate cut by the end of the year compared to the two cuts in 2025 expected previously, Dalstoe said. She said that "pretty much explains the reactions we're seeing in the short end of the yield curve." Elsewhere, the Swiss National Bank cut its interest rate to zero as expected. Investors will now turn to the Bank of England's policy decision and outlook later in the day, with the bank expected to keep rates unchanged. If the European Central Bank decides to move on interest rates in the next six months, it would most likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday, while Bundesbank President Joachim Nagel said the ECB was on the right track when it came to monetary policy. The ECB signalled a pause in policy easing this month despite projections showing price growth dipping below its 2% target temporarily due to the strong euro and low oil prices. Italy's 10-year bond yield, the benchmark for the euro zone periphery, was 3 bps higher at 3.515%. The gap between Italian and German yields was wider on the day at 99.10, after hitting its widest in three weeks earlier in the session. (Reporting by Linda Pasquini; Editing by Amanda Cooper, Emelia Sithole-Matarise and Jane Merriman)
Yahoo
2 days ago
- Business
- Yahoo
Potential fee misses at Nordic banks may catch attention this quarter
- Potential fee misses at Nordic banks are likely to be in focus when these lenders report their latest quarterly returns, according to analysts at Barclays. The brokerage has recently been selective in its approach to banks in the region, as investors remain on the lookout for any signs that recent global trade tensions are impacting growth. On Thursday, Norway's central bank also unexpectedly slashed its policy interest rate for the first time since 2020, citing an "uncertain" economic picture. Earlier in the week, Norges Bank's counterpart in Sweden also slashed its key interest rate to 2.00% from 2.25%. Writing in a note to clients, the Barclays analysts predicted that the Sweden's Riksbank will reduce borrowing costs by 25 basis points once more this year. Against this backdrop, the strategists noted that Sweden's SEB has said it will bring down its deposit rates by 20 basis points later this month, possibly weighing on net interest income, a metric for measuring banks' income from lending and deposits. Their estimates for SEB's fees in its second quarter are also seen 2% below consensus, although they estimated that there will be "larger fee misses at other Nordic banks." The Barclays analysts said they prefer SEB (ST:SEBa) over regional peers Handelsbanken (ST:SHBa) and Swedbank (ST:SWEDa), adding that their per-share projections between this year and 2027 for SEB are 7-8% above consensus expectations. Danske Bank (CSE:DANSKE) is also preferred above DNB (OL:DNB) and Nordea (CSE:NDADK), the analysts added, arguing that the latter two "lack catalysts." "[I]f [Danske] can demonstrate second-quarter net interest income is the trough [...], we believe this may be a positive catalyst for the shares," the Barclays analysts said. Related articles Potential fee misses at Nordic banks may catch attention this quarter - Barclays Berenberg initiates coverage of these two mid-cap U.K. names Airbus notches $21 bn in orders at Paris Air Show while Boeing keeps low profile
Dubai Eye
13-06-2025
- Business
- Dubai Eye
Oil jumps nearly 9% after Israel's strikes on Iran
Oil prices jumped nearly 9 per cent on Friday to near multi-month highs after Israel launched strikes against Iran, sparking Iranian retaliation and raising worries about a disruption in Middle East oil supplies. Brent crude futures were up $6.19, or around 8.9 per cent, to $75.55 a barrel at 1019 GMT, after hitting an intraday high of $78.50, the highest since January 27. US West Texas Intermediate crude was up $6.22, or 9.1 per cent, at $74.26 after hitting $77.62, its highest level since January 21. Friday's gains were the largest intraday moves for both contracts since 2022, after Russia's invasion of Ukraine caused a spike in energy prices. Israel said it had targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon, while Iran has promised a harsh response. US President Donald Trump urged Iran to make a deal over its nuclear programme, to put an end to the "next already planned attacks". The National Iranian Oil Refining and Distribution Company said oil refining and storage facilities had not been damaged and continued to operate. The primary concern was whether the latest developments would affect the Strait of Hormuz, said SEB analyst Ole Hvalbye. The key waterway had been at risk of impact from increased regional volatility previously but had not been affected so far, Hvalbye said. There also was no impact to oil flow in the region so far, he added. About a fifth of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel. Analysts at consultancy Sparta Commodities said that any significant crude supply disruptions would lead to sour crude grades being marginally priced out of refineries in favour of light sweets. Under a worst case scenario, JPMorgan analysts said on Thursday that closing the strait or a retaliatory response from major oil producing countries in the region could lead to oil prices surging to $120-130 a barrel, nearly double their current base case forecast. "The key question now is whether this oil rally will last longer than the weekend or a week - our signal is that there is a lower probability of a full-blown war, and the oil price rally will likely encounter resistance," said Janiv Shah, analyst at Rystad. "Fundamentals show nearly all Iranian exports going to China, so Chinese discounted purchases would be most at risk here. OPEC+ spare capacity can provide the stabilizing force," he added. In other markets, stocks dived and there was a rush to safe havens such as gold and the Swiss franc. An increase in oil prices would also dampen the outlook for the German economy, the economic institute DIW Berlin said on Friday. It is the only G7 nation that has recorded no economic growth for two consecutive years. "The increased uncertainty speaks in favour of a higher risk premium on the oil price, which is why it is unlikely to fall below $70 on a sustained basis for the time being... Fundamental data is taking a back seat in the current situation," analysts at Commerzbank said in a note.
ARN News Center
13-06-2025
- Business
- ARN News Center
Oil jumps nearly 9% after Israel's strikes on Iran
Oil prices jumped nearly 9 per cent on Friday to near multi-month highs after Israel launched strikes against Iran, sparking Iranian retaliation and raising worries about a disruption in Middle East oil supplies. Brent crude futures were up $6.19, or around 8.9 per cent, to $75.55 a barrel at 1019 GMT, after hitting an intraday high of $78.50, the highest since January 27. US West Texas Intermediate crude was up $6.22, or 9.1 per cent, at $74.26 after hitting $77.62, its highest level since January 21. Friday's gains were the largest intraday moves for both contracts since 2022, after Russia's invasion of Ukraine caused a spike in energy prices. Israel said it had targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon, while Iran has promised a harsh response. US President Donald Trump urged Iran to make a deal over its nuclear programme, to put an end to the "next already planned attacks". The National Iranian Oil Refining and Distribution Company said oil refining and storage facilities had not been damaged and continued to operate. The primary concern was whether the latest developments would affect the Strait of Hormuz, said SEB analyst Ole Hvalbye. The key waterway had been at risk of impact from increased regional volatility previously but had not been affected so far, Hvalbye said. There also was no impact to oil flow in the region so far, he added. About a fifth of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel. Analysts at consultancy Sparta Commodities said that any significant crude supply disruptions would lead to sour crude grades being marginally priced out of refineries in favour of light sweets. Under a worst case scenario, JPMorgan analysts said on Thursday that closing the strait or a retaliatory response from major oil producing countries in the region could lead to oil prices surging to $120-130 a barrel, nearly double their current base case forecast. "The key question now is whether this oil rally will last longer than the weekend or a week - our signal is that there is a lower probability of a full-blown war, and the oil price rally will likely encounter resistance," said Janiv Shah, analyst at Rystad. "Fundamentals show nearly all Iranian exports going to China, so Chinese discounted purchases would be most at risk here. OPEC+ spare capacity can provide the stabilizing force," he added. In other markets, stocks dived and there was a rush to safe havens such as gold and the Swiss franc. An increase in oil prices would also dampen the outlook for the German economy, the economic institute DIW Berlin said on Friday. It is the only G7 nation that has recorded no economic growth for two consecutive years. "The increased uncertainty speaks in favour of a higher risk premium on the oil price, which is why it is unlikely to fall below $70 on a sustained basis for the time being... Fundamental data is taking a back seat in the current situation," analysts at Commerzbank said in a note.
Zawya
13-06-2025
- Business
- Zawya
Oil jumps nearly 9% after Israel's strikes on Iran
Oil prices jumped nearly 9% on Friday to near multi-month highs after Israel launched strikes against Iran, sparking Iranian retaliation and raising worries about a disruption in Middle East oil supplies. Brent crude futures were up $6.19, or around 8.9%, to $75.55 a barrel at 1019 GMT, after hitting an intraday high of $78.50, the highest since January 27. U.S. West Texas Intermediate crude was up $6.22, or 9.1%, at $74.26 after hitting $77.62, its highest level since January 21. Friday's gains were the largest intraday moves for both contracts since 2022, after Russia's invasion of Ukraine caused a spike in energy prices. Israel said it had targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon, while Iran has promised a harsh response. U.S. President Donald Trump urged Iran to make a deal over its nuclear programme, to put an end to the "next already planned attacks." The National Iranian Oil Refining and Distribution Company said oil refining and storage facilities had not been damaged and continued to operate. The primary concern was whether the latest developments would affect the Strait of Hormuz, said SEB analyst Ole Hvalbye. The key waterway had been at risk of impact from increased regional volatility previously but had not been affected so far, Hvalbye said. There also was no impact to oil flow in the region so far, he added. About a fifth of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel. Analysts at consultancy Sparta Commodities said that any significant crude supply disruptions would lead to sour crude grades being marginally priced out of refineries in favour of light sweets. Under a worst case scenario, JPMorgan analysts said on Thursday that closing the strait or a retaliatory response from major oil producing countries in the region could lead to oil prices surging to $120-130 a barrel, nearly double their current base case forecast. "The key question now is whether this oil rally will last longer than the weekend or a week - our signal is that there is a lower probability of a full-blown war, and the oil price rally will likely encounter resistance," said Janiv Shah, analyst at Rystad. "Fundamentals show nearly all Iranian exports going to China, so Chinese discounted purchases would be most at risk here. OPEC+ spare capacity can provide the stabilizing force," he added. In other markets, stocks dived and there was a rush to safe havens such as gold and the Swiss franc. An increase in oil prices would also dampen the outlook for the German economy, the economic institute DIW Berlin said on Friday. It is the only G7 nation that has recorded no economic growth for two consecutive years. "The increased uncertainty speaks in favour of a higher risk premium on the oil price, which is why it is unlikely to fall below $70 on a sustained basis for the time being ... Fundamental data is taking a back seat in the current situation," analysts at Commerzbank said in a note. (Reporting by Seher Dareen and Florence Tan; Editing by Stephen Coates, Rachna Uppal and Kim Coghill)
