Key Takeaways
- Gold prices are consolidating amidst optimism for new trade deals, particularly between the US and EU, and upcoming central bank meetings, with potential for further weakness if safe-haven demand diminishes.
- Oil prices are surging due to heightened geopolitical risks, including President Trump's shortened deadline for a Russia-Ukraine truce and new EU sanctions on Russian oil, alongside a US-EU trade agreement that includes significant US energy purchases.
- Alphabet's (GOOGL) Waymo is set to expand its robotaxi service to Dallas next year in a partnership with Avis, diversifying its strategy beyond Uber.
- Woodside Energy (WDS) is taking over operatorship of Bass Strait assets, expecting over US$60 million in annual synergies and identifying potential for up to 200 petajoules of sales gas from new wells.
- Fireworks AI is reportedly in funding talks that could value the company at $4 billion, a significant jump from its previous $552 million valuation in July 2024.
Global financial markets are navigating a complex landscape marked by ongoing trade negotiations, evolving geopolitical tensions, and significant corporate developments. Investors are closely watching the outcomes of US-China trade talks and the implications of a new US-EU trade agreement.
Commodities React to Geopolitical and Trade News
Gold is currently in a consolidation phase, with prices influenced by hopes of further trade deals and upcoming central bank policy meetings. The breakthrough US-EU trade agreement, which includes a 15% US tariff on EU goods and opens European markets to certain US exports tariff-free, has reduced geopolitical risk and softened safe-haven demand for gold. Analysts suggest that gold prices may remain range-bound, especially with the August 1 tariff deadline approaching and central banks like the US Federal Reserve and Bank of Japan expected to keep rates steady.
Meanwhile, oil prices have seen a notable rally, with Brent crude futures rising to over $70 a barrel and US West Texas Intermediate (WTI) near $67. This surge is primarily driven by renewed concerns over Russian oil supply after President Trump announced a shortened 10-12 day deadline for Russia to agree to a truce in Ukraine, threatening new sanctions. The US-EU trade deal, which includes a commitment from the EU to purchase $750 billion in American energy products, is also contributing to the upward pressure on oil prices.
Tech and Energy Sectors See Strategic Moves
Alphabet's (GOOGL) Waymo is expanding its autonomous vehicle footprint, with plans to launch a robotaxi service in Dallas next year. This move, in partnership with Avis, signifies Waymo's strategy to diversify its service offerings and expand its presence across the US. Waymo is currently testing its service in 10 cities, including New York and Philadelphia, with aspirations for full launches in these areas soon.
In the energy sector, Woodside Energy (WDS) is set to assume operatorship of the Bass Strait assets, a move expected to generate over US$60 million in annual synergies. The company has also identified four potential wells in the region that could yield up to 200 petajoules of sales gas, significantly boosting its Australian operations.
In the artificial intelligence space, Fireworks AI is reportedly in discussions for a new funding round that could value the company at a substantial $4 billion. This potential valuation marks a significant increase from its $552 million valuation following a Series B funding round in July 2024, which raised $52 million and was led by Sequoia Capital.
Other Noteworthy Developments
Asia-Pacific markets are anticipated to decline as traders await the outcome of the ongoing US-China trade talks. Japan's Nikkei 225 futures edged down approximately 0.2% in early trading, while benchmark 10-year JGB futures ticked up 0.01 point.
In other news, Colombia's ex-President Álvaro Uribe has been found guilty of bribery and abuse of process in a witness tampering case, marking the country's first criminal conviction of a former head of state. Additionally, heavy rainfall in Beijing has resulted in at least 30 fatalities due to flash floods and landslides, according to state broadcaster CCTV.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.