Global equity markets are under modest pressure again after sliding into the weekend. Oil prices popped – then dropped – in early trading, while gold and silver fluctuated. The dollar is modestly lower, while Treasuries are flat.
President Trump ramped up his anti-Iran rhetoric again over the weekend, saying the country’s leaders “better get moving, FAST” and that the “clock is ticking.” But no deal has emerged. Meanwhile, a drone strike targeted the Barakah nuclear power plant in the United Arab Emirates. Crude oil prices climbed overnight as a result, before easing back this morning.
Rising interest rates are also causing market headaches. Long-term bond yields in the US just hit their highest level since 2007, while 30-year yields in Japan climbed to the highest since 1999 – the first year that country sold debt of that maturity. UK 30-year yields are even higher, closing in on 6%. Rising inflation and worries about government indebtedness are fueling the move.
US, UK, Japan 30-Year Government Bond Yields
Source: TradingView
Meanwhile, we have a mega-merger in the utility industry. NextEra Energy Inc. (NEE) is buying Dominion Energy Inc. (D) for $67 billion in stock and cash to expand its footprint along the US east coast. NextEra operates in Florida, while Dominion focuses on North and South Carolina and Virginia. The deal comes as electricity demand is surging thanks to the AI boom – and the data center power usage it’s fueling. It will require federal regulatory approval and could take up to 18 months to close.
Last but not least, SpaceX is reportedly targeting a June 12 Initial Public Offering (IPO) date. That will require the firm to file detailed, publicly accessible financial statements this week. Outsiders are eagerly anticipating the in-depth look into company’s operations. SpaceX wants to raise up to $75 billion in the offering of “SPCX” shares on the Nasdaq exchange. That would value the Elon musk-led company at $2 trillion or more.
