MARKET MOVEMENTS:
–Brent crude oil is down 0.1% at $65.24 a barrel.
–European benchmark gas is down 1.8% at 35.97 euros a megawatt-hour.
–Gold futures are up 0.2% at $3,381.40 a troy ounce.
–LME three-month copper futures are flat at $9,713.50 a metric ton.
TOP STORY:
Iran Orders Material From China for Hundreds of Ballistic Missiles
Iran has ordered thousands of tons of ballistic-missile ingredients from China, people familiar with the transaction said, seeking to rebuild its military prowess as it discusses the future of its nuclear program with the U.S.
Shipments of ammonium perchlorate are expected to reach Iran in coming months and could fuel hundreds of ballistic missiles, the people said. Some of the material would likely be sent to militias in the region aligned with Iran, including Houthis in Yemen, one of the people said.
Iran wants to bolster regional allies and rebuild its arsenal while it pushes deeper into contentious talks with the Trump administration over its nuclear program. Iran has continued to expand its stockpiles of uranium enriched to just below weapons grade and ruled out negotiating limits on its missile program.
OTHER STORIES:
Food Prices Fell in May on Cheaper Cereal, Sugar and Vegetable Oil, UN Says
Food prices fell in May as declines in corn and palm oil outweighed historically high prices for butter and bovine meat, data from the Food and Agriculture Organization of the United Nations showed on Friday.
The FAO's food price index--which tracks global prices for a basket of staple foods--averaged 127.7 points, down 1.0 point from April. It is down 8.2% on year, and is now more than 20% below its all-time high in March 2022, shortly after the Russian invasion of Ukraine began.
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EQT Buys Majority Stake in Waga Energy for $331 Million Ahead of Potential Takeover
EQT is set to buy a majority stake in renewable natural gas producer Waga Energy ahead of a possible full takeover in a deal that values the company at 534.2 million euros ($611.4 million).
EQT said Friday that it has agreed to buy 54.1% of Waga for 21.55 euros a share. Based on this price, the stake would cost around 289 million euros and represents a 27% premium to Thursday's closing price.
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Australia Could Ease U.S. Beef Import Rules Amid Tariff Tensions
SYDNEY--Australia could ease rules on U.S. beef imports amid tensions over U.S. tariffs including on steel and aluminum.
Australia allows the import of beef from cattle raised and slaughtered in the U.S. However, beef from U.S.-slaughtered cattle raised in Mexico and Canada isn't allowed into a country with strict biosecurity rules designed to protect local industry and animals.
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FuelCell Energy Slashes Workforce Again in New Round of Restructuring Efforts
FuelCell Energy said it would cut its workforce by nearly one-quarter, half a year after its first round of layoffs, as part of a restructuring effort to focus on its technology and to lower costs.
Chief Executive Jason Few said Friday that the fuel-cell technology company will lay off 22% of its staff across its operations in the U.S., Canada and Germany as part of efforts to scale core carbonate technologies and achieving profitability.
MARKET TALKS:
Palm Oil Tracks Soybean Oil Gains to End Higher -- Market Talk
1014 GMT - Palm oil prices closed higher, tracking soybean oil prices, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Recent export strength is also seen as another factor supporting market sentiment, he adds. Recent prices are well supported above MYR3,800 and may face resistance at MYR4,000. The Bursa Malaysia Derivatives contract for August delivery rose 14 ringgit to 3,917 ringgit a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
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OPEC+ Expected to Implement Big Output Hikes in August, September -- Market Talk
1007 GMT - OPEC+ members are expected to agree to two large output hikes for August and September at their next meetings, according to HSBC Research. The group of oil producing countries is forecast to implement increases of 411,000 and 274,000 barrels a day, respectively, during the periods. "Our new scenario assumes regular hikes from October to December and leaves the 2.2 million barrels a day of voluntary cuts fully unwound by the end of 2025," analysts at the bank say. Should the group instead choose to continue with accelerated hikes even after the summer, it would confirm an intention to crack down on overproduction and regain market share from U.S. shale producers, HSBC analysts say. (giulia.petroni@wsj.com)
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Silver's Historic Highs Reflect Undervaluation Compared With Gold -- Market Talk
0839 GMT - Silver prices rise to 13-year highs, with LBMA silver up 4.2% at $35.80 a troy ounce. Silver has underperformed gold over a long period of time and looks significantly undervalued. This appears to be attracting investors, Commerzbank analysts say in a note. Silver ETFs have seen continuous inflows since April. The silver market is expected to be in a supply deficit for the fifth consecutive year. However, the deficit is expected to be significantly smaller as demand is expected to decline and supply to increase, Commerzbank says. The price rise of the precious metal has been faster than expected, and Commerzbank puts its price expectations under review. (joseph.hoppe@wsj.com)
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Base Metal Prices Slip; Copper Tariff Concerns Grow -- Market Talk
0838 GMT - Base metal prices fall, with LME three-month copper down 0.2% at $9,685.50 a metric ton and LME three-month aluminum down 0.85% at $2,454 a ton. Copper remains up 3.5% on month, while aluminum is up 0.7% on month. President Trump's doubling of steel and aluminum tariffs to 50% on Wednesday is hitting other metal markets, particularly copper, Commerzbank analysts say in a note. The rise in U.S. copper inventories is likely to continue, as the probability of copper tariffs being introduced has increased, Commerzbank says. This should provide good support for copper prices, particularly when combined with persistent concerns of a copper ore shortage that threatens to stymie global metal production, analysts write. Commerzbank raises its copper price expectations for both the next two quarters to $9,500 a ton, from $9,200 and $9,400 previously. (joseph.hoppe@wsj.com)
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Gold Futures Set to End Week Higher on Renewed Safe-Haven Demand -- Market Talk
0838 GMT - Gold futures rise, on-track to finish the week higher. Futures are up 0.25% at $3,383.60 a troy ounce. The precious metal has gained on renewed trade tensions, geopolitical risks and a weaker U.S. dollar, BMI analysts say in a note. Earlier in the week, President Trump doubled existing steel and aluminum tariffs to 50%, the Russia-Ukraine war intensified and the dollar slid, improving gold's safe-haven appeal. Gold looks like it has further room to rise, given the U.S. Federal Reserve should eventually cut interest rates again and significant volatility is set to persist as global markets remain on edge, BMI says. Lower interest rates are typically a boon for non-interest bearing bullion. (joseph.hoppe@wsj.com)
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European Gas Price on Track for Weekly Gain on Storage Pressures -- Market Talk
0738 GMT - European natural-gas prices are on track for a weekly gain of 6% as traders focus on EU efforts to refill storage sites ahead of the winter season. "Storage pressures continue to provide upwards pressure on pricing, with EU gas inventories currently at 49.2% as of June 2, down 21.7% from the same day last year," analysts at BMI say. The firm forecasts the benchmark Dutch TTF contract at an average of 40 euros a megawatt hour this year, likely supported by rising prices in the third and fourth quarters as EU countries rush to fill up inventories. The TTF currently trades 0.1% lower at 36.38 euros a megawatt hour. (giulia.petroni@wsj.com)
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Oil Poised for Weekly Gain After U.S.-China Trade Talks Resume -- Market Talk
0727 GMT - Oil prices dip in early trade but are on track for a weekly gain of more than 3% after President Trump and Chinese leader Xi Jinping agreed to further trade talks. Still, expectations the OPEC+ will agree to another large output hike to regain market share and take advantage of seasonal demand continue to hang over the market. Brent crude slips 0.6% to $64.95 a barrel, while WTI is down 0.7% to $62.95 a barrel. Traders now await the U.S. jobs report due later on Friday for more cues on the state of the U.S. economy. "Investors are bracing for potentially weak labour data following disappointing indicators earlier in the week, which could reinforce stagflation concerns and push the Federal Reserve toward a rate cut, possibly as early as September," analysts at IG say. (giulia.petroni@wsj.com)
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Iron Ore Prices Higher Amid Resilient Demand -- Market Talk
0304 GMT - Iron ore prices are higher in early Asia trade amid resilient demand. Demand is relatively resilient as inventory pressure is easing, Guangfa Futures analysts write in a note. On the supply side, the shipments from Australia fell while shipments from Brazil rose, and there is a trend of clear inventories, they add. In the short term, there might be some price volatility, they say. The most actively traded January iron ore contract on the Dalian Commodity Exchange is up 1.3% at CNY710.5 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
June 06, 2025 08:36 ET (12:36 GMT)
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