Gold prices rose to new record highs as hopes of interest rate cuts by the US Federal Reserve grew and geopolitical tensions increased in the Middle East.
Spot gold hit a record high of $2,453.30 (£1,931.61) an ounce shortly after Iranian President Ebrahim Raisi was killed in a helicopter crash. His death has heightened tensions in the Middle East, increasing the appeal of the metal as a safe haven in times of turmoil, analysts say.
Gold bullion has also seen a boost as traders have increasingly bet in recent sessions that the Federal Reserve could cut borrowing costs as early as September, a scenario that would strengthen gold as it pays no interest.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Demand for the safe haven has risen sharply as investors have digested the news of the death of Iranian President Ebrahim Raisi, who is believed to have been killed along with others including Foreign Minister Hossein Amir-Abdollahian in a helicopter crash.
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“Demand for the metal is also likely to be boosted by renewed speculation that the Federal Reserve will cut interest rates a few times this year.”
“Recent data suggests that inflation remains on the right downward trend and there are other signs that demand is being drained from the economy, such as weaker retail sales.”
Budget airline Ryanair has reported a sharp rise in full-year profits after increasing its fares by more than a fifth.
Profit after tax rose 34% to 1.9 billion euros in the 12 months to March 30 as demand rose 9% to 184 million passengers. Sales rose by 25% to 13.4 billion euros.
Chief executive Michael O’Leary said recent tariff prices were “weaker” than expected and the company had started to boost demand in the first quarter of its new financial year.
He added: “We remain cautiously optimistic that peak season tariffs in summer 2024 will be unchanged or slightly higher than last summer.”
Passenger numbers also surpassed previous all-time highs and are now well above pre-pandemic numbers at 184 million – a 23% increase compared to 2019 before the COVID-19 crisis. These passengers paid fares that cost an average of 21% more than last year through March 2023.
The airline said it expected to take delivery of 12 new Boeing 737 Max planes between March and July, but said it would default on the contract with the manufacturer by 23 after repeated safety scandals led to delivery delays.
Nvidia (NVDA)
The darling of AI and technology investors rose in premarket trading as the company is set to report results for its first quarter of fiscal 2025 on May 22.
Wall Street is banking on a blowout quarterly report from Nvidia on Wednesday, with shares approaching record highs as investors look for evidence that the AI chipmaker can sustain its explosive growth and stay ahead of rivals.
“A lot depends on Nvidia’s profits. It’s the most important stock in the industry,” Will Rhind, founder and CEO of GraniteShares, which runs an ETF investing in the chip company, told Reuters.
For the second quarter, analysts are forecasting earnings growth of over 120% and sales growth of almost 100%.
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“We see enough room for NVDA to potentially deliver up to $26 billion in revenue in the first quarter (April) (data center ~$22-23 billion) and potentially total revenue of around $27-28 billion (data center ~$25-26 billion) – both of which are good enough to keep the stock higher in our view,” UBS analyst Timothy Arcuri wrote in a note to clients
The stock is up more than 86% in 2024 and more than 200% last year.
AstraZeneca (AZN.L)
Shares of the drugmaker fell in London after the company announced a $1.5 billion investment in a manufacturing facility in Singapore dedicated to producing antibody-drug conjugates, an advanced form of chemotherapy that replaces conventional treatment could replace.
The pharmaceutical giant said the planned site, which it hopes will emit zero carbon from day one, will begin planning and construction this year and be “operational” by 2029.
CEO Pascal Soriot said Singapore is a world-leading investment destination with a reputation for excellence in complex manufacturing.
ADCs are engineered antibodies that bind to tumor cells and then release cell-killing chemicals.
The complex multi-step ADC manufacturing process includes antibody production, synthesis of the chemotherapy drug and linker, conjugation of the drug linker and filling of the finished ADC substance.
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