📣 Market Wrap
Markets began with upward momentum earlier this week, buoyed by a US - China trade agreement and softer than expected US inflation data. Consumer prices rose 2.4% YoY in May, compared to the 2.5% forecast, helping underpin gains and bringing markets within 1.5% of their all-time highs.
However, sentiment shifted sharply following Israel’s overnight strikes on Iran’s nuclear facilities (including Natanz) and the reported death of senior IRGC commander Hossein Salami. Market reaction was swift: S&P 500 futures plunged ~1.5% mid-week as geopolitical tensions spooked investors.
Concurrently, the Boeing 787 Dreamliner crash in India provoked an immediate ~8% drop in Boeing shares. Oil prices surged, with Brent jumping on fears of Middle East conflict disrupting supply, while safe-haven assets benefited and Treasury yields pulled back to around 4.3% .
Elsewhere, a potentially impactful development is the emerging stimulus from Asia. China is reportedly considering a minimum wage hike, while Japan is weighing the use of helicopter payments to boost household spending. These measures could provide the next leg of support for global equities.
In the UK, the wave of overseas takeovers continued: Alphawave, Spectris, and Oxford Ionics were all announced this week. Since 2016, over 2,500 UK takeovers have underscored persistent undervaluation. At UK Tech Week, Nvidia’s Jensen Huang joined Labour leader Keir Starmer to announce increased tech investment in the UK.
📈 Market Data
S&P500: +0.9% WTD | +3.0% YTD
FTSE 100: +0.1% WTD | +7.4% YTD
Gold: +3.3% WTD | +29.3% YTD
Data accurate as at time of sending this briefing. wtd = week to date, ytd = year to date
💎 Spotlight Stock
Each week we want to shine a spotlight on a stock which is new on our platform.
ATOME - [ATOM] - £30m market cap
ATOME is a UK-listed company focused on developing international green fertiliser projects, with its flagship asset in Paraguay set to become the world’s largest dedicated green fertiliser facility. The company harnesses Paraguay’s abundant and low-cost renewable hydroelectric power to produce carbon-free calcium ammonium nitrate (CAN) for agricultural use.
As the global population is projected to reach 10 billion by 2050, fertilisers will remain critical to ensuring food security. Yet, conventional nitrogen fertilisers are responsible for approximately 5% of global greenhouse gas emissions – presenting a major challenge: how to increase fertiliser production while cutting emissions. ATOME provides a compelling solution to this dilemma.
Discover here
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