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Speaker 1: Well, let's take a look at some stocks on the
Speaker 1: move today in Europe. I'm Stephen Carroll and I'm joined
Speaker 1: by Bloomberg reporter Chloe Melet. Chloe, good morning. So plenty
Speaker 1: of market reaction to the news of the Iran ceasefire.
Speaker 1: Let's start with airlines. The likes of easy Jet among
Speaker 1: those seeing big moves higher.
Speaker 3: Yeah, definitely very much in the green. And the rest
Speaker 3: of that airline sector also doing very well. So that's
Speaker 3: both on both the budget airline side, so easy Jet, Ryanair,
Speaker 3: but also more established players like luftanzo Iag all of
Speaker 3: those and names moving high. And of course you, as
Speaker 3: you mentioned, to the news of the ceasefire with the
Speaker 3: US and around agreeing to this ceasefire in exchange for
Speaker 3: the reopening of the straight off home moves and this
Speaker 3: happened less than two hours before the deadline that was
Speaker 3: imposed by Trump and now by some time for both
Speaker 3: sides to reach a longer term agreement, and that's really
Speaker 3: boosted stocks across the board, but airlines in particular because
Speaker 3: of how vulnerable they had been to the conflict in
Speaker 3: the Middle East, so it had impacted them both in
Speaker 3: terms of the flight cancelations and all of that disruption
Speaker 3: because the Middle East has of course some key aviation
Speaker 3: hubs like Dubai for example. But then also in particularly
Speaker 3: in terms of energy prices, with oil rising meant that
Speaker 3: jet fuel prices were rising, and we'd already seen the
Speaker 3: impact of that with a few airports in Italy, for example,
Speaker 3: restricting access to jet fuel over the last few days
Speaker 3: because of that shortage. So this news of the ceasefire
Speaker 3: comes as a huge relief for airlines, both on that
Speaker 3: energy price front and then also on the flight cancelation front.
Speaker 1: Of course, the news very much in focus too for
Speaker 1: energy companies as well. They had been benefiting from higher
Speaker 1: energy prices, and today we're looking at SHALL among others, yeah.
Speaker 3: Shall BP, all of those struggling quite a bit today.
Speaker 3: Of course, the fact that the Strait of Homos is
Speaker 3: reopening means that the disruption in those global energy supplies
Speaker 3: is going to ease a little bit, and so oil
Speaker 3: prices are falling quite dramatically today, and you know, that
Speaker 3: means that shell BP any all of those names are
Speaker 3: in the red. It's obviously quite a fragile state of affairs.
Speaker 3: Some economists are saying that almost anything going wrong in
Speaker 3: those ceasepire talks could very quickly put oil back above
Speaker 3: one hundred dollars a barrel, but that on the other hand,
Speaker 3: it would take something really major, really tremendous to get
Speaker 3: back down to below eighty a barrel. So the market
Speaker 3: reaction has been quite dramatic. But then on the ground,
Speaker 3: physical traders are still quite cautious. They're waiting for clearer
Speaker 3: science that the ceasefire is actually going to hold before
Speaker 3: are seeking cargoes from the region. And some ship owners
Speaker 3: are also saying they need to see vessels exiting safely
Speaker 3: the region before they send in tankers. So we are
Speaker 3: seeing that maybe that difference between what's happening in the
Speaker 3: market and what's happening on the ground. But in the meantime,
Speaker 3: those oil shares definitely love.
Speaker 1: And one of the aspects of the market reaction to
Speaker 1: the war as well that's been somewhat curious has been
Speaker 1: gold prices haven't been rising in a traditional safe haven trade.
Speaker 1: Now today gold is up over two percent, trading backup
Speaker 1: of four thy eight hundred dollars a barrel. How is
Speaker 1: that affecting mining companies like Fresnil.
Speaker 3: Yeah, Fresnio is higher today. So yeah, as you mentioned,
Speaker 3: since the war started, we've seen gold trading mostly in
Speaker 3: tandem with equities, which meant that when they were in
Speaker 3: the red, gold was also struggling, so it had lost
Speaker 3: some of that traditional safe haven appeal which had really
Speaker 3: benefited from since at the beginning of the year. And
Speaker 3: so that's happening today as well. We're seeing equities and
Speaker 3: gold moving higher together, really rising quite strongly after the
Speaker 3: announcement of the ceasefire, and that's really beneficial for all
Speaker 3: of those miner has been particular those gold miners, so
Speaker 3: we've seen the likes of Fresnio, Oschal Mining and Devon Mining,
Speaker 3: all of those London listed gold miners moving definitely higher
Speaker 3: as alongside those airlines as well.
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