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Global markets sink as rally over eased trade tensions fades

Global stock markets sank Wednesday on evaporating cheer over eased tariff tensions, while oil prices climbed as Washington appeared closer to imposing new sanctions on Moscow over Ukraine.On Wall Street, all three major indices closed lower ahead of earnings from artificial intelligence titan Nvidia, with US Treasury bond yields ticking higher.The US chip designer’s shares jumped after the bell on news it had reported better-than-expected earnings despite increased export controls, recording a profit of $18.8 billion on revenue of $44.1 billion.Minutes from the most recent Federal Reserve meeting also published on Wednesday reported that US firms had warned the US central bank that the cost of President Donald Trump’s tariffs would likely be borne by consumers.Earlier, London, Paris and Frankfurt all closed lower, following Asia’s lead.- Oil prices rise -Crude prices surged more than two percent on Wednesday before paring some gains, ahead of an OPEC meeting to discuss output and hiked tensions over Russia and Iran.Trump’s rare rebuke Tuesday of Russian counterpart Vladimir Putin over stepped-up attacks on Ukraine — saying he was “playing with fire” — raised the prospect of tougher US sanctions on Russian energy and banking sectors.US-Iran talks on curbing Tehran’s nuclear programme have also yielded no breakthrough so far, additionally fuelling speculation of tightened sanctions.The US dollar picked up against major currencies, but analysts said that masked a fundamental weakness in the greenback, and in the US debt market, evident in recent weeks.”It’s the creeping realization that US assets no longer provide the same refuge,” said Stephen Innes of SPI Asset Management. “Dollar strength is no longer reflexive — it’s contested.”- Investors ‘looking past tariffs’ -Europe and Asia fell after a rally over the previous two days triggered by Trump’s announcement that he was pausing threatened 50-percent tariffs on the European Union to give space for trade negotiations.”The market no longer takes Trump at his word when he delivers swathing tariff hikes seemingly at random,” said Kathleen Brooks, research director at XTB.”It looks as if investors are looking past tariffs, assuming that all will be for the best, in the best of all worlds,” said David Morrison, senior market analyst at Trade Nation. “This Panglossian view could be severely tested, and a US-EU deal could prove hard to achieve.”In Europe, auto giant Stellantis, which makes Jeep, Peugeot, Chrysler and Fiat vehicles, named North America chief Antonio Filosa as its next chief executive, succeeding Carlos Tavares, who was sacked in December.”To give him full authority and ensure an efficient transition, the Board has granted him CEO powers effective June 23,” the company said.Stellantis’s shares closed more than two percent lower in Milan.- Key figures at around 2045 GMT -New York – S&P 500: DOWN 0.6 percent at 5,888.55 points (close)New York – Dow: DOWN 0.6 percent at 42,098.70 (close)New York – Nasdaq Composite: DOWN 0.5 percent at 19,100.94 (close)London – FTSE 100: DOWN 0.6 percent at 8,726.01 (close) Paris – CAC 40: DOWN 0.5 percent at 7,788.10 (close)Frankfurt – DAX: DOWN 0.8 percent at 24,038.19 (close)Tokyo – Nikkei 225: FLAT at 37,722.40 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,258.31 (close)Shanghai – Composite: DOWN less than 0.1 percent at 3,339.93 (close)Euro/dollar: DOWN at $1.1291 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3468 from $1.3504Dollar/yen: UP at 144.82 yen from 144.34 yenEuro/pound: DOWN at 83.84 pence from 83.88 penceBrent North Sea Crude: UP 1.3 percent at $64.90 per barrelWest Texas Intermediate: UP 1.6 percent at $61.84 per barrel burs-da/dw

Stocks sink as rally over eased trade tensions fades

Stock markets sank Wednesday on evaporating cheer over eased tariff tensions, and oil prices climbed as Washington appeared closer to possibly putting fresh sanctions on Moscow over Ukraine.London, Paris and Frankfurt all closed lower, following Asia down.New York was trading in similar red territory.Much of the focus on Wall Street was on Nvidia, the US chipmaker, whose earnings report — to be released after New York’s close — was being viewed as a bellwether for tech stocks generally.”This is expected to be another quarter of monster revenue for Nvidia, however it may lead to the familiar question, can these results continue?” asked Kathleen Brooks, research director at XTB.She and others pointed to uncertainty over US restrictions on semiconductor exports, against a backdrop of effervescent chip demand as artificial intelligence development accelerates.Crude prices surged more than two percent, ahead of an OPEC meeting to discuss output and hiked tensions over Russia and Iran.President Donald Trump’s rare rebuke Tuesday of Russian counterpart Vladimir Putin over stepped-up attacks on Ukraine — saying he was “playing with fire” — raised the prospect of tougher US sanctions on Russian energy and banking sectors.US-Iran talks on curbing Tehran’s nuclear programme have also yielded no breakthrough so far, additionally fuelling speculation of tightened sanctions.The US dollar picked up against major currencies, but analysts said that masked a fundamental weakness in the greenback, and in the US debt market, evident in recent weeks.”It’s the creeping realisation that US assets no longer provide the same refuge” they used to, said Stephen Innes of SPI Asset Management. “Dollar strength is no longer reflexive — it’s contested.”Europe and Asia were down after a rally over the previous two days triggered by Trump’s announcement he was pausing threatened 50-percent tariffs on the European Union to give space to trade negotiations.”The market no longer takes Trump at his word when he delivers swathing tariff hikes seemingly at random,” said Brooks.David Morrison, senior market analyst at Trade Nation, said: “It looks as if investors are looking past tariffs, assuming that all will be for the best, in the best of all worlds. This Panglossian view could be severely tested, and a US-EU deal could prove hard to achieve.”In Europe, auto giant Stellantis, which makes Jeep, Peugeot, Chrysler and Fiat vehicles, named a new CEO — its North America chief Antonio Filosa — to succeed Carlos Tavares, who was sacked in December.”To give him full authority and ensure an efficient transition, the Board has granted him CEO powers effective June 23,” the company said.Stellantis shares closed more than two percent down.A Financial Times report that European Central Bank President Christine Lagarde had discussed leaving her post early to take the helm of the World Economic Forum had little impact on the euro.”It is trading in a relatively tight range, suggesting that reports Christine Lagarde may not fulfill her full term at the ECB is not having an impact on European markets,” said XTB’s Brooks.- Key figures at around 1545 GMT -New York – Dow: DOWN 0.3 percent at 42,198.20 pointsNew York – S&P 500: DOWN 0.3 percent at 5,905.81New York – Nasdaq Composite: DOWN 0.1 percent at 19,173.59London – FTSE 100: DOWN 0.6 percent at 8,726.01 (close) Paris – CAC 40: DOWN 0.5 percent at 7,788.10 (close)Frankfurt – DAX: DOWN 0.8 percent at 24,038.19 (close)Tokyo – Nikkei 225: FLAT at 37,722.40 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,258.31 (close)Shanghai – Composite: FLAT at 3,339.93 (close)Euro/dollar: DOWN at $1.1288 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3460 from $1.3504Dollar/yen: UP at 145.01 yen from 144.34 yenEuro/pound: DOWN at 83.85 pence from 83.88 penceBrent North Sea Crude: UP 2.3 percent at $64.99 per barrelWest Texas Intermediate: UP 2.6 percent at $62.44 per barrel

US stocks rise, focus on Nvidia

US stock markets rose on Wednesday as investors focused on prospects for Big Tech profitability, while European indices swung lower.Oil prices rose ahead of an OPEC+ meeting, and the dollar ticked up against major currencies.Investors were watching carefully to see how US chipmaker Nvidia — a bellwether for tech stocks — was faring, between US semiconductor export restrictions to China and surging demand by AI development.Nvidia shares were down at opening trade on Wednesday — after being strongly pushed up on Tuesday in advance of the company’s earnings report. The tech-heavy Nasdaq was up 0.3 percent.”This is expected to be another quarter of monster revenue for Nvidia, however it may lead to the familiar question, can these results continue?” asked Kathleen Brooks, research director at XTB.European shares, though, were in the red in mid-afternoon trading, echoing a sell-off in Asia.Analysts said it appeared the steam had gone out of a rally over the previous two days triggered by President Donald Trump announcing a pause in 50-percent tariffs on the EU.Investors have learned to take Trump’s tariff threats in their stride, knowing now that they are usually paused or rolled back before they took effect.”The market no longer takes Trump at his word when he delivers swathing tariff hikes seemingly at random,” said Brooks.David Morrison, senior market analyst at Trade Nation, said: “It looks as if investors are looking past tariffs, assuming that all will be for the best, in the best of all worlds. This Panglossian view could be severely tested, and a US-EU deal could prove hard to achieve.”The Japanese yen slid after an auction of 40-year Japanese government bonds was met with the worst take-up since July.The rising cost of government debt in Japan and the United States has been an underlying cause of concern over recent weeks. Some analysts said US debt — much of which is held by Japan and China — was undergoing a fundamental shift in perception, and the dollar’s rise on Wednesday masked a broader slide in its value. “It’s the creeping realisation that US assets no longer provide the same refuge” as they used to, said Stephen Innes of SPI Asset Management. “Dollar strength is no longer reflexive — it’s contested.”In Europe, auto giant Stellantis, which makes Jeep, Peugeot, Chrysler and Fiat vehicles, named a new CEO — its North America chief Antonio Filosa — to succeed Carlos Tavares, who was sacked in December.”To give him full authority and ensure an efficient transition, the Board has granted him CEO powers effective June 23,” the company said.A Financial Times report that European Central Bank President Christine Lagarde had discussed leaving her post early to take the helm of the World Economic Forum had little impact on the euro.”It is trading in a relatively tight range, suggesting that reports Christine Lagarde may not fulfill her full term at the ECB is not having an impact on European markets,” said XTB’s Brooks.- Key figures at around 1335 GMT -New York – Dow: UP 0.2 percent at 42,505.22 pointsNew York – S&P 500: UP 0.2 percent at 5,931.22New York – Nasdaq Composite: UP 0.3 percent at 19,248.13London – FTSE 100: DOWN 0.1 percent at 8,767.41 Paris – CAC 40: UNCHANGED at 7,824.29Frankfurt – DAX: DOWN 0.3 percent at 24,148.44Tokyo – Nikkei 225: FLAT at 37,722.40 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,258.31 (close)Shanghai – Composite: FLAT at 3,339.93 (close)Euro/dollar: DOWN at $1.1314 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3477 from $1.3504Dollar/yen: UP at 144.74 yen from 144.34 yenEuro/pound: UP at 83.96 pence from 83.88 penceBrent North Sea Crude: UP 1.3 percent at $64.37 per barrelWest Texas Intermediate: UP 1.5 percent at $61.81 per barrel

Mango deal sweetens ties between Bangladesh and China

Bangladesh waved off its first consignment of mangoes to China on Wednesday, a largely symbolic export as Beijing sweetens ties after relations soured between Dhaka and former ally and neighbour India.Bangladesh, still reeling from the political fallout of a 2024 uprising that ended the autocratic rule of Sheikh Hasina — who fled by helicopter to New Delhi — has since been courted by Beijing, India’s rival.”It is such a great pleasure to jointly witness this historic moment, as the first consignment of Bangladesh’s premium mangoes sets off for China,” China’s ambassador to Bangladesh Yao Wen said, alongside government officials.Bangladesh, largely encircled by land by India, has seen relations with New Delhi turn icy.Interim Bangladeshi leader Muhammad Yunus’s first state visit was to China, while Bangladesh has also moved closer to Pakistan, India’s arch-enemy.”President Xi Jinping has emphasised on several occasions that China’s door of opening up will not close, but will only open wider,” Yao said, at a small ceremony at the airport alongside Bangladeshi ministers.”I am confident that the export of Bangladeshi mangoes to China is just the beginning,” he added.In China, the fruit has a particular historic diplomatic resonance — including the curious cult of the mango.After Chairman Mao Zedong was pictured gifting a mango to a group of workers in 1968, during the mania of the Cultural Revolution, the fruit became an object of veneration.Those mangoes were reportedly a gift from the foreign minister of Pakistan — and at that time, in 1968, Bangladesh had yet to win its independence from Islamabad.Export levels are small so far, just 50 tonnes in an initial phase, but both Bangladesh and China said they hoped to increase that.In the past year, China has sponsored several tours for Dhaka’s political party leaders, and has begun hosting Bangladeshi patients in its hospitals.India has long been wary of China’s growing regional clout and the world’s two most populous countries compete for influence in South Asia, despite a recent diplomatic thaw.

Stocks wobble as relief rally fades, Japan debt sale disappoints

Stock markets dipped Wednesday as optimism over easing trade tensions ran out of steam and a weak Japanese debt sale fuelled concerns about rising bond yields.European and Asian equities struggled to track a rally the previous day on Wall Street fuelled by forecast-beating US consumer confidence data and easing tensions between the US and European Union.”The fizz of relief boosting stocks so far this week looks set to go a little flat, as a wait-and-see mood looks set to spread on Wall Street,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Investors also awaited first-quarter earnings from US chipmaking giant Nvidia later on Wednesday for signs of uncertainty on the business, particularly from US chip export restrictions, analysts said. Markets had been lifted at the start of the week after US President Donald Trump delayed 50 percent tariffs on the EU that had sparked a market rout. But “risk sentiment has lost some steam on Wednesday”, said Kathleen Brooks, research director at trading group XTB.”There are no major drivers of sentiment this morning, however, multiple factors have led to a softening in risk appetite including, higher bond yields after a weak auction of Japanese debt,” she added.London, Paris and Frankfurt were all lower in midday deals, after giving up earlier gains. In Asia, Hong Kong fell while Shanghai and Tokyo were flat at the close. Wellington was also in the red even after New Zealand’s central bank cut interest rates for the sixth meeting in a row.The yen lost some of its early gains after the auction of 40-year Japanese government bonds (JGBs) was met with the worst take-up since July.That came after last week saw the worst auction of 20-year notes for more than a decade.The cost of government debt has risen around the world in recent weeks — notably hitting record highs last week in Japan — amid worries about rising spending as leaders try to support their economies and after Trump’s April 2 tariff blitz.The Bank of Japan’s decision to reduce its purchases of JGBs as it looks to tighten monetary policy in the face rising inflation has added to the rising yields.The gloomy auction reversed Tuesday’s rally that came after Japan’s Ministry of Finance sent a questionnaire to market players regarding issuance, fuelling talk that it was considering slowing its sales, meaning there would be less supply.Bonds yields rise and prices fall when demand is weak.Still, Masahiko Loo, senior fixed-income strategist at State Street Global Advisors, said the JGB panic may have been overdone.”Any perceived supply-demand imbalance is more a matter of timing mismatches, which is a technical dislocation rather than a fundamental flaw.”We expect these imbalances to be resolved as early as the third quarter of 2025,” he said.- Key figures at around 1045 GMT -London – FTSE 100: DOWN 0.2 percent at 8,762.29 pointsParis – CAC 40: DOWN 0.1 percent at 7,820.84Frankfurt – DAX: DOWN 0.2 percent at 24,188.93Tokyo – Nikkei 225: FLAT at 37,722.40 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,258.31 (close)Shanghai – Composite: FLAT at 3,339.93 (close)New York – Dow: UP 1.8 percent at 42,343.65 (close)Euro/dollar: UP at $1.1330 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3500 from $1.3504Dollar/yen: DOWN at 144.26 yen from 144.34 yenEuro/pound: UP at 83.93 pence from 83.88 penceBrent North Sea Crude: UP 1.0 percent at $64.15 per barrelWest Texas Intermediate: UP 1.0 percent at $61.52 per barrel

France, Indonesia call for Israeli-Palestinian progress as Macron visits

France and Indonesia called Wednesday for progress on “mutual recognition” between Israel and the Palestinians at a key meeting next month as Emmanuel Macron visited Jakarta, bringing the world’s most populous Muslim-majority nation into his diplomatic efforts.It came as Paris and Jakarta signed a series of cooperation agreements, with Macron seeking to deepen trade and defence ties with Southeast Asia’s largest economy on a three-country tour promoting France as a balancing power between the United States and China.Speaking next to his French counterpart, Indonesian President Prabowo Subianto made a rare pledge to recognise Israel if it allowed for a Palestinian state. Indonesia has no formal ties with Israel and support for the Palestinian cause runs high there.”Indonesia sees that the two-state solution and the freedom of Palestine is the only way to achieve the true peace,” Prabowo told a news conference.”We must acknowledge and guarantee Israel’s rights as a sovereign country that must be paid attention to and guaranteed safety. Indonesia has stated that once Israel recognises Palestine, Indonesia is ready to recognise Israel and open the diplomatic relationship.”Macron said Paris hopes to “trigger a movement of recognition for a Palestinian state under certain conditions”, including the demilitarisation of Hamas and recognition of Israel’s right to exist and protect itself.”This is the only way and your president this morning made a very important speech,” he said of Prabowo’s remarks.Macron earlier issued a joint statement with Prabowo that condemned Israeli plans to take control of Gaza and any moves to “forcibly remove the Palestinian population from their homeland”.But they also called for restoring the political prospect of the two-state solution at a conference Paris will co-chair with Saudi Arabia at the UN headquarters in New York next month, and expressed hope for a “credible roadmap”.They said the event “should allow for an irreversible path towards the realisation of a Palestinian State, (and) mutual recognition between Israel and Palestine”.Macron held talks with Prabowo after being greeted by a gun salute and thousands of young Indonesians waving French flags.”Our partnership on all the fields, defence and security, economy, culture is already strong, but we are strengthening it,” Macron told Prabowo.”Thank you very much for your support, our friendship and your very special attachment to France.”Prabowo replied: “Merci beaucoup, monsieur!”- ‘Third way’ -The nations on Wednesday signed a series of memoranda of understanding on cooperation in a range of fields including defence, trade, agriculture, disaster management, culture and transport.The French president was later scheduled to meet investors and students, and attend a state dinner. On Thursday, he will travel to Yogyakarta on Indonesia’s Java island to visit the world’s largest Buddhist temple, before heading to Singapore to conclude his six-day tour. In the face of US President Donald Trump’s tariffs and Washington’s economic confrontation with China, Macron was seeking to turn his “third way” position into contracts for French companies, particularly in defence, energy and critical minerals.French Armed Forces Minister Sebastien Lecornu said Indonesia signed a letter of intent for future purchases of more Rafale jets from French company Dassault Aviation, without specifying figures or a timeline.Indonesia also pledged to buy light frigates and Scorpene submarines, as well as Caesar howitzers and ammunition from French-German defence group KNDS, the minister wrote on X.French mining giant Eramet also signed a memorandum of understanding with Indonesia’s new sovereign wealth funds Danantara and the Indonesian Investment Authority “to explore the establishment of a strategic investment platform in the nickel sector”, the mining firm said in a statement.In Vietnam on Tuesday, Macron presented France as a “power of peace and balance”, committed to an international order “based on law”.This was viewed as a message both to Beijing, which has become increasingly assertive in its territorial claims in the South China Sea, and to Washington over Trump’s threats of wide-ranging tariffs.Macron warned that “constantly creating uncertainty” with trade policy was “holding back investment and the economy”.

Asian stocks rally fades as Japan debt sale disappoints

Asian equities wobbled Wednesday as investors struggled to track a Wall Street rally fuelled by forecast-beating US consumer confidence data, with a weak Japanese debt sale adding to worries about rising bond yields.New York investors returned to their desks after a long weekend break in a good mood after Donald Trump delayed until July the 50 percent tariffs on the European Union he announced out of the blue on Friday, sparking a market rout.The US president’s announcement Sunday delaying them soothed worries about a fresh flare-up in his trade war that has rattled global sentiment, fanned uncertainty and led some to question their confidence in the world’s biggest economy.Buying was also boosted by Trump’s post on social media flagging progress with Brussels.”I have just been informed that the E.U. has called to quickly establish meeting dates,” he said on his Truth Social platform.”This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America.”Markets also cheered data showing a bigger-than-expected jump in US consumer confidence thanks to a slight easing of trade tensions, particularly with China.However, investors were unable to maintain their momentum, with optimism sapped by the disappointing sale of 40-year Japanese government bonds (JGBs).Hong Kong, Sydney, Mumbai and Jakarta all fell, with Wellington also in the red even after New Zealand’s central bank cut interest rates for the sixth meeting in a row.Shanghai and Jakarta were barely moved, while Singapore, Seoul, Taipei, Manila and Bangkok rose with London, Frankfurt and Paris.Tokyo was flat and the yen lost early gains after the auction of the long-term JGBs was met with the worst take-up since July. That came after last week saw the worst auction of 20-year notes for more than a decade.The cost of government debt has surged around the world in recent weeks — hitting record highs last week in Japan — amid worries about rising spending as leaders try to support their economies and after Trump’s April 2 tariff blitz.The Bank of Japan’s decision to reduce its purchases of JGBs — as it looks to tighten monetary policy in the face rising inflation — has added to the rising yields.The poor result reversed Tuesday’s rally that came after Japan’s Ministry of Finance sent a questionnaire to market players regarding issuance, fuelling talk that it was considering slowing its sales down, meaning there would be less supply.Bonds yields rise and prices fall when demand is weak.Still, Masahiko Loo, senior fixed income strategist at State Street Global Advisors, said the JGB panic may have been overdone.”We maintain our long-standing view that the challenges in the JGB market are technical rather than structural. These issues are largely addressable through adjustments in issuance volume or composition,” he wrote in a commentary.”We believe the concern on loss of control over the super-long end is overblown. Around 90 percent of JGBs are domestically held, and the ‘don’t fight the BOJ/MOF’ mantra remains a powerful anchor,” he added, referring to the Bank of Japan and Ministry of Finance.”Any perceived supply-demand imbalance is more a matter of timing mismatches, which is a technical dislocation rather than a fundamental flaw.”We expect these imbalances to be resolved as early as the third quarter of 2025. The MOF potential reduction headline reinforces our view.”- Key figures at around 0810  GMT -Tokyo – Nikkei 225: FLAT at 37,722.40 (close)Hong Kong – Hang Seng Index: DOWN 0.5 percent at 23,258.31 (close)Shanghai – Composite: FLAT at 3,339.93 (close)London – FTSE 100: UP 0.2 percent at 8,795.26Euro/dollar: DOWN at $1.1326 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3501 from $1.3504Dollar/yen: DOWN at 144.33 yen from 144.34 yenEuro/pound: DOWN at 83.86 pence from 83.88 penceWest Texas Intermediate: UP 0.5 percent at $61.21 per barrelBrent North Sea Crude: UP 0.5 percent at $64.41 per barrelNew York – Dow: UP 1.8 percent at 42,343.65 (close)

Macron in Indonesia to deepen trade, defence ties

French President Emmanuel Macron met his Indonesian counterpart on Wednesday, seeking to deepen trade and defence ties with Southeast Asia’s largest economy on the second leg of a three-country tour promoting France as a balancing power between the US and China.Macron met Prabowo Subianto at the presidential palace in capital Jakarta, hailing their countries’ close relationship after being greeted by a guard of honour, gun salute and thousands of young Indonesians waving French flags.”Our partnership on all the fields, defence and security, economy, culture is already strong, but we are strengthening it,” Macron told Prabowo.”I think this is to the best way to… handle the business in challenging times. So thank you very much for your support, our friendship and your very special attachment to France.”Prabowo replied: “Merci beaucoup, monsieur!”The French president will later meet investors and students and attend a state dinner. On Thursday he will travel to Yogyakarta on Indonesia’s Java island to visit the world’s largest Buddhist temple, before heading to Singapore to conclude his six-day tour. Indonesian Defence Minister Sjafrie Sjamsoeddin said after welcoming Macron that the countries would “strengthen their strategic partnership in the defence sector” by signing a letter of intent on defence equipment, the presidency said in a statement.In the face of Donald Trump’s tariffs and the United States’ economic confrontation with China, Macron is seeking to turn his “third way” position into contracts for French companies, particularly in defence, energy and critical minerals.He has indicated he will also try to get the world’s most populous Muslim-majority country on board as he pushes for a two-state solution for the decades-long Israeli-Palestinian conflict at a United Nations conference in June.”Naturally, the question of recognising Israel is an issue,” one of Macron’s advisers told reporters before the trip. “We understand perfectly well the sensitivities of the Muslim communities in the region” regarding the situation in Gaza, the adviser added.Macron wants to show that he is “particularly committed” to “achieving peace in the Middle East” while demonstrating no double standards on the issue in light of his efforts to solve the Ukraine war, he said.- ‘Power for peace’ -In Vietnam Tuesday, Macron presented France as a “power of peace and balance”, committed to an international order “based on law”.This was viewed as a message both to Beijing, which has become increasingly assertive in its territorial claims in the South China Sea, and to Washington over Trump’s threats of wide-ranging tariffs. Macron warned that “constantly creating uncertainty” with trade policy was “holding back investment and the economy”.His remarks came as the Association of Southeast Asian Nations (ASEAN) — of which Indonesia is a member — said at the bloc’s summit in Malaysia it would speed up efforts to diversify trade networks in the face of Trump’s tariffs.So Macron’s office is looking for economic wins in the Southeast Asian archipelago of around 280 million people.The new chief executive of French mining giant Eramet, Paulo Castellari, was to be part of a French delegation trying to get Jakarta to increase production at the world’s largest nickel mine in eastern Indonesia.Paris also intends to step up cooperation on arms with Indonesia’s Prabowo, a former defence minister and general.While Jakarta has previously sourced fighter jets from Russia, in recent years it has acquired Rafales from French company Dassault Aviation, whose chief Eric Trappier will join the French delegation.

Nickel rush for stainless steel, EVs guts Indonesia tribe’s forest home

Sitting deep in east Indonesia’s lush jungle, Bokum, one of the country’s last isolated hunter-gatherers, has a simple message for the nickel miners threatening his home: “This is our land.”He belongs to the Hongana Manyawa Indigenous tribe, which includes around 3,000 “contacted” members like him, and another 500 who reject contact with the modern world.Their home on Halmahera Island was once a breathtaking kaleidoscope of nature that provided sanctuary and sustenance. But it is being eaten away by the world’s largest nickel mine, as Indonesia exploits vast reserves of the metal used in everything from electric vehicles to stainless steel.”I’m worried if they keep destroying the forest,” Bokum told AFP in a clearingin central Halmahera.”We have no idea how to survive without our home and food.” The plight of the Hongana Manyawa, or “People of the Forest”, started gaining attention in Indonesia last year after a video widely shared on Facebook showed emaciated, uncontacted members emerging from their rapidly changing forest home to beg for food. But the remote region — about 1,500 miles (2,414 kilometres) from capital Jakarta — mostly remains far from the public consciousness.AFP travelled into the Halmahera jungle to see how the sprawling Weda Bay Nickel concession has affected the once-pristine tribal lands that the Hongana Manyawa call home.During a three-day, 36-kilometre (22-mile) trek across parts of the 45,000-hectare concession, the mining operation’s impacts were starkly clear.Booms from controlled explosions to expose nickel shook birds from trees, while helicopters buzzing overhead shared the skies with green parrots, Moluccan owls, hornbills and giant bees.Tree stumps provided evidence of logging, and off-duty mine guards were seen hunting tropical birds with air guns.Throughout the night, the sound of excavators scratching the topsoil penetrated the thick vegetation, competing with frog calls and the drone of insects.Mud that locals say is stirred up by mining has stained rivers copper, and the water leaves skin irritated.In 22 river crossings, only a few fish were visible. Tribe members say they have mostly disappeared.AFP did not seek to meet uncontacted Hongana Manyawa.Bokum emerged from isolation earlier in his life, but still has very limited contact with the outside world.He and his wife Nawate agreed to meet AFP around 45 minutes from his home deeper in the jungle.But he could not stay long: en route, he spotted miners and wanted to return to ward them off.”The company workers have been trying to map our territory,” he told AFP, wearing a black cowboy hat, shirt and rolled-up jeans.”It’s our home and we will not give it to them.”- ‘Prevent their annihilation’ -Indonesia’s constitution enshrines Indigenous land rights, and a 2013 Constitutional Court ruling promised to give local communities greater control oftheircustomary forestsBut environmental groups say the law is not well enforced.With no land titles, the Hongana Manyawa have little chance of asserting their claims to stewardship of forest that overlaps with Weda Bay’s concession.According to Weda Bay Nickel (WBN), its mine on Indonesia’s Maluku islands accounted for 17 percent of global nickel production in 2023, making it the largest in the world. WBN is a joint venture of Indonesia’s Antam and Singapore-based Strand Minerals, with shares divided between French mining giant Eramet and Chinese steel major Tsingshan.WBN told AFP it is “committed to responsible mining and protecting the environment”, and trains employees to “respect local customs and traditions”.It said there is “no evidence that uncontacted or isolated groups are being impacted by WBN’s operations”.Eramet told AFP it has requested permission from WBN’s majority shareholders for an independent review of “engagement protocols” with Hongana Manyawa, expected this year.Further review of how the tribe uses the area’s forests and rivers is also underway, it added, though it said there was currently “no evidence” of members living in isolation in its concession.The Indonesian government, which acknowledges most of the concession was previously protected forest, told AFP otherwise.There is “recognition of evidence of the existence of isolated tribes around Weda Bay”, said the directorate general of coal and minerals at Indonesia’s energy ministry.It said it was committed to “protecting the rights of Indigenous peoples and ensuring that mining activities do not damage their lives and environment”.Indigenous rights NGO Survival International said that was Jakarta’s first acknowledgement of uncontacted, or “isolated”, Hongana Manyawa in the area. It called the admission a “hammer blow” to Eramet’s claims and said a no-go area to protect the tribe was “the only way to prevent their annihilation”.Both WBN and Eramet said they work to minimise impact on the environment. Eramet’s new CEO will be in Indonesia this week, seeking permission to expand the mine’s capacity.Tsingshan and Antam did not respond to AFP requests for comment.Bokum said mining has driven away the wild pigs, deer and fish he once caught for food. Now, he looks for shrimp and frogs in less-affected smaller streams.”Since the company destroyed our home, our forest, we’ve been struggling to hunt, to find clean water,” he said in the Indigenous Tobelo language.”If they keep destroying our forest we cannot drink clean water again.”- ‘Go away’ -Nickel is central to Indonesia’s growth strategy. It banned ore exports in 2020 to capture more of the value chain.The country is both the world’s largest producer, and home to the biggest-known reserves.Mining — dominated by coal and nickel — represented nearly nine percent of its GDP in the first quarter of 2025, government data shows.Nickel mined in the Halmahera concession is processed at the Weda Bay Industrial Park.Since operations began in 2019, the area has transformed rapidly, into what some call a “Wild West”.At a checkpoint near the industrial park, men stopped AFP to demand cash and forced their vehicle to move elsewhere, before a local government official intervened.The towns on the mine edge — Lelilef Sawai, Gemaf and Sagea — form a chaotic frontier. Employees in hard hats crisscross muddy roads that back up with rush-hour traffic.Shops catering to labourers line the roadside, along with prostitutes looking for business in front of bed bug-infested hostels.The mining workforce has more than doubled since 2020 to nearly 30,000 people. Locals say these are mostly outsiders whose arrival has sparked tensions and coincided with rising cases of respiratory illness and HIV/AIDS.Smelter towers belch a manmade cloud visible from kilometres away.”Mining companies have not implemented good practices, have violated human rights and there is rarely any evaluation,” said Adlun Fiqri, spokesman for the Save Sagea campaign group.Inside the jungle, a similar story is playing out, said Hongana Manyawa member Ngigoro, who emerged from the uncontacted as a child.”Long before the mining, it was really quiet and good to live in the forest,” said the 62-year-old, as he marked his route by slicing pock-marks into trees with his machete.He remains at ease in the forest, using reeds for shade and bamboo shoots to boil water.”There was no destruction. They were not afraid of anything,” he said.He climbed nimbly down a steep slope by clinging to tree roots before crossing a riverbed peppered with garnierite — green nickel ore.”This land belongs to the Hongana Manyawa,” he said.”They existed living in the rainforest before even the state existed. So go away.”That sentiment echoes elsewhere on Halmahera. At least 11 Indigenous people were recently arrested for protesting mining activity in the island’s east, Amnesty International said Monday.- ‘We will not give our consent’ -Despite their “contacted” status, Bokum and Nawate have rarely met outsiders.They approached haltingly, with Nawate refusing to speak at all, instead surveying her visitors with a cautious smile.Bokum described moving at least six times to outrun encroaching miners. NGOs fear the mine operation risks wiping out the tribe.”They rely entirely on what nature provides for them to survive and as their rainforest is being devastated so too are they,” said Callum Russell, Asia research and advocacy officer at Survival International.”Any contact with workers in the forest runs the risk of exposing them to deadly diseases to which they have little to no immunity.”The government told AFP it has “conducted documentation” to understand isolated tribes near Weda Bay, and involved them “in the decision-making process”.Activists say this is impossible given most of the group do not use modern technology and limit contact with outsiders.Amid growing scrutiny, there have been rumblings of support for the tribe, including from some senior politicians.Tesla, which has signed deals to invest in Indonesian nickel, has mooted no-go zones to protect Indigenous peoples.And Swedish EV company Polestar last year said it would seek to avoid compromising “uncontacted tribes” in its supply chain. For Bokum however, the problem is already on his doorstep.A 2.5-kilometre-long (1.5 miles) open pit lies just over the hill from a plot where he grows pineapple and cassava.Bokum and Nawatereceived mobile phones from mine workers — in an unsuccessful attempt to convince them to approve mining operations.They and other tribe members use numerical codes to identify contacts and make calls.They must approach the concession to pick up signal, but when mine workers near his home, Bokum wields his machete to scare them off.”This is our land. Our home,” he said.”We will not give our consent to destroy it.”

Asian stocks track Wall St rally as trade fears ease, eyes on Japan debt

Asian equities rose Wednesday following a Wall Street rally as traders cheered forecast-beating US consumer confidence data and a drop in bond yields, with eyes now on a key sale of Japanese debt.New York investors returned to their desks after a long weekend break in a good mood after Donald Trump delayed until July the 50 percent tariffs he announced out of the blue on Friday, sparking a market rout.The US president’s announcement Sunday soothed worries about a fresh flare-up in his trade war that has rattled global sentiment, fanned uncertainty and led some to question their confidence in the world’s biggest economy.Buying was also boosted by Trump’s post on social media saying progress with Brussels was being made.”I have just been informed that the E.U. has called to quickly establish meeting dates,” he said on his Truth Social platform.”This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America.”Markets also cheered data showing a bigger-than-expected jump in US consumer confidence thanks to a slight easing of trade tensions, particularly with China.The lift in the Conference Board’s index was the first improvement after five months of decline and dragged it up from lows last seen at the onset of the Covid-19 pandemic. However, the report did warn that tariffs remained a key concern.Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta all rose. Wellington was in the red even after New Zealand’s central bank cut interest rates for the sixth meeting in a row.Tokyo was also on the front foot as investors eye the crucial sale of Japanese 40-year government bonds, after an auction of 20-year notes this month saw the worst take-up in more than a decade.The cost of government debt has surged around the world in recent weeks — hitting record highs last week in Japan — amid worries about rising spending as leaders try to support their economies and after Trump’s April 2 tariff blitz.However, yields tumbled Tuesday after Japan’s Ministry of Finance sent a questionnaire to market players regarding issuance, fuelling talk that it was considering slowing its sales down, meaning there would be less supply.Masahiko Loo, senior fixed income strategist at State Street Global Advisors, said the recent panic over the Japanese government bond (JGB) market may have been overdone.”We maintain our long-standing view that the challenges in the JGB market are technical rather than structural. These issues are largely addressable through adjustments in issuance volume or composition,” he wrote in a commentary.”We believe the concern on loss of control over the super-long end is overblown. Around 90 percent of JGBs are domestically held, and the ‘don’t fight the BOJ/MOF’ mantra remains a powerful anchor,” he added, referring to the Bank of Japan and Ministry of Finance.”Any perceived supply-demand imbalance is more a matter of timing mismatches, which is a technical dislocation rather than a fundamental flaw.”We expect these imbalances to be resolved as early as the third quarter of 2025. The MOF potential reduction headline reinforces our view.”The drop in Japanese yields sent the yen lower Tuesday, and it held those losses in early trade Wednesday, sitting around 144.30 per dollar.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37.918.86 (break) Hong Kong – Hang Seng Index: UP 0.2 percent at 23,421.96Shanghai – Composite: UP 0.2 percent at 3,346.13Euro/dollar: DOWN at $1.1323 from $1.1329 on TuesdayPound/dollar: DOWN at $1.3502 from $1.3504Dollar/yen: DOWN at 144.26 yen from 144.34 yenEuro/pound: DOWN at 83.86 pence from 83.88 penceWest Texas Intermediate: UP 0.8 percent at $61.36 per barrelBrent North Sea Crude: UP 0.7 percent at $64.56 per barrelNew York – Dow: UP 1.8 percent at 42,343.65 (close)London – FTSE 100: UP 0.7 percent at 8,778.05 (close)