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Global Markets: Gold, oil soar, shares slip as U.S. and Iran trade threats

A gauge of Asian shares was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks. The United States detected a heightened state of alert by Iran’s missile forces, as President Donald Trump warned the U.S. would strike back, “perhaps in a disproportionate manner,” if Iran attacked any American person or target. Oil prices added to their gains on fears any conflict in the region could disrupt global supplies. …read more […]

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Oil surges again after Trump threatens Iraq sanctions, Iran retaliation

Oil prices shot more than 2% higher on Monday, with Brent rising above $70 a barrel, after U.S. President Donald Trump issued a threat to impose sanctions on Iraq amid escalating tensions with Iran in the Middle East. The gains extended Friday’s more-than-3% surge after a U.S. air strike in Iraq killed top Iranian commander Qassem Soleimani on Friday. The killing has heightened concerns of a widening Middle East conflict that could disrupt oil supplies from a region that accounts for nearly half of the world’s oil production. …read more […]

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China's services sector expands at slower pace in December as confidence dips – Caixin PMI

The more downbeat reading suggests services companies remain cautious about the outlook for China’s economy despite a flurry of stimulus measures, signs of improvement in the manufacturing sector and a long-awaited U.S.-China trade deal. Beijing has been counting on a strong services sector to cushion a prolonged slowdown in manufacturing and investment and create jobs for workers laid-off in other areas. …read more […]

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Tensions Increase as Fallout From Soleimani Killing Widens

Jan.05 — President Donald Trump told U.S. lawmakers on Sunday he was prepared to strike Iran “in a disproportionate manner” if the Islamic republic hits any U.S. targets, and that his Twitter posts are sufficient to notify Congress of his intentions. Bloomberg’s Jodi Schneider speaks with Kathleen Hays and Haidi Stroud-Watts on “Bloomberg Daybreak: Asia.” …read more […]

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Oil extends gains on rising Mideast tensions

Oil prices added to recent gains on Monday, with Brent nearly at $70 a barrel as escalating tensions in the Middle East fanned worries about disruptions to supplies. Brent crude futures rose to a high of $69.95 a barrel and were at $69.65 a barrel at 0016 GMT, up $1.05, or 1.5%, from Friday’s settlement. Oil prices jumped more than 3% on Friday after the United States killed a top Iranian commander in an air strike on Baghdad airport. …read more […]

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Gold Climbs to Highest Level Since 2013 on Iran-U.S. Tension

(Bloomberg) — Gold rose to the highest level in more than six years as rising tensions in the Middle East stoked geopolitical uncertainty and demand for haven assets. Palladium also extended gains.Spot bullion climbed as much as 2.3% to $1,588.13 an ounce, the highest level since April 2013, and traded 1.5% higher at $1,575.36 as of 7:22 a.m. in Singapore, while futures gained as much as 2.5% to $1,590.90. Palladium jumped as much as 1.2% to $2,013.90 an ounce, a fresh record high, while silver and platinum also gained.Iran’s government said it would no longer abide by any limits on …read more […]

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Yen Rises, Asia Futures Dip on Mideast Tensions: Markets Wrap

(Bloomberg) — Stock futures dipped and the yen advanced in the wake of escalating Middle East tensions as Asian financial markets return to full strength following New Year holidays.Japan’s currency matched a three-month high in the wake of fallout from the U.S. killing of a top Iranian military commander in Iraq. Japanese equity futures also slid, while Australian contracts were little changed. The S&P 500 Index posted its biggest loss in a month Friday in the wake of the killing, which threatened to spur escalating violence across the Middle East.The tensions cast a cloud over largely positive forecasts for risk …read more […]

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Musk’s Moment of Truth Arrives With Made-in-China Teslas

(Bloomberg) — Elon Musk’s decision to assemble Tesla Inc. cars in China required years of planning and billions of dollars in spending. Now comes the challenging part.The electric Model 3 sedans rolling off the assembly line at Tesla’s Shanghai plant — its first outside the U.S. — face a market where total vehicle sales are expected to fall for a third straight year. After capturing about 5% of China’s car sales, electric vehicles have been losing steam as the economy cooled and the government scaled back subsidies for buyers.That could spell trouble for a launch that investors are watching closely …read more […]

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Low Rates Could Get Even Lower, Senior Central Bankers Warn

(Bloomberg) — The already low level of interest rates in the U.S. and the rest of the industrial world could fall further, three senior central bankers said on Sunday.Speaking at the American Economic Association’s annual meeting, Federal Reserve Bank of New York President John Williams, European Central Bank chief economist Philip Lane, and Bank of England Deputy Governor Ben Broadbent all saw a possibility that so-called R star — the neutral level of interest rates that neither spurs nor restricts growth in their economies — might drop in the future.“You could see R star go lower because of demographics,” Williams …read more […]