Silver Surged By 4.5% To Above $31 Saxo Bank MENA Market Report - Middle East Business News And Information

(MENAFN- Mid-East)

• Commodities: Silver surged by 4.5% to above $31.

• Equities: HSI rose on profit increase, NIKKEI rallied on bond support.
• Fixed income: Japan's 10-year yield highest in 12 years.

Commodities: Oil increased as tensions escalated in the Middle East following the death of an Egyptian soldier in a clash with Israeli troops. WTI rose by approximately 1% from Friday's close to near $79 a barrel, while brent traded close to $83. Egypt's military confirmed the death at the Rafah crossing into Gaza, potentially heightening tensions with Israel. Meanwhile, Gold surpassed $2,350 per ounce, and Silver surged by 4.5% to above $31 on Monday, rebounding from the previous session's two-week low of $2,330 per ounce. These gains were supported by safe-haven demand as markets continued to evaluate the Fed's policy outlook, with both metals set to maintain significant gains for May. Wheat reached a 43-week high of 717.25 USD/Bu. Over the past four weeks, it has surged by 17.47%, and in the last 12 months, it has risen by 15.83%

Equities: US and UK stock markets are closed on Monday for Memorial Day. On Monday, Hong Kong stocks surged 1.17% to 18,827, returning from the index's most prominent weekly drop since January. The upswing was driven by news that profits for industrial companies in China increased by 4 per cent in April compared to the previous month. The Nikkei 225 share average rose by 0.66% to end at 38,900, while the broader Topix increased by 0.87%vclosing at 2,766. Ongoing concerns about the Bank of Japan's bond purchases and potential rate hikes were in focus as Governor Kazuo Ueda and Deputy Shinichi Uchida spoke, leading to higher government yields. Financial and insurance stocks rose, with chip-related shares gaining after solid performances by their US counterparts following Nvidia's earnings report last week.

Fixed income: Following an extended weekend, cash trading for U.S. Treasuries reopens with market participants keenly anticipating insights from Federal Reserve officials, which could indicate the timing for anticipated interest rate reductions. Both Japan and Australia are poised to conduct bond auctions in the near term. The yield on the 2-year U.S. Treasury note marginally declined by a basis point to 4.94%, while the yield on the 10-year note remained unchanged at 4.46%. A roster of Federal Reserve speakers is scheduled for today, with Cleveland Fed President Loretta Mester and Fed Governor Michelle Bowman set to address an audience at a Bank of Japan event. Minneapolis Fed President Neel Kashkari is slated to deliver remarks in London. In a separate engagement, Fed Governor Lisa Cook and San Francisco Fed President Mary Daly are expected to participate in a panel discussion on artificial intelligence and its economic implications.

In Japan, the benchmark 10-year government bond yield peaked at 1.025% on Monday, marking its highest level since April 2012. Bank of Japan Governor Kazuo Ueda, along with Deputy Governor Shinichi Uchida, signalled a potential for a gradual uptick in interest rates as the nation moves away from a long-standing deflationary baseline of zero per cent.

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