International News 15 May 2025
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Oil Prices Rally: WTI and Brent Close Up Over 2.5%
The price of crude oil futures rose by over US$1.60 per barrel, boosted by temporary US-China tariff reductions and positive US inflation figures. Brent crude for July 2025 delivery increased by US$1.67 to US$66.63 per barrel, while West Texas Intermediate for June 2025 delivery rose by US$1.72 to US$63.67 per barrel. This surge follows a 4% rally in the previous session, which was prompted by the US and China agreeing on tariff cuts, thereby boosting stock markets and the dollar. John Kilduff of Again Capital LLC has attributed the market catch-up to China's economic growth. The US Consumer Price Index's 2.3% increase in April, the lowest in four years, led financial institutions to adjust recession forecasts, with analysts suggesting the calmer inflation will ease concerns for the Federal Reserve.
Holcim Officially Spins Off Business Unit in North America and Creates New Company
Swiss cement producer Holcim has been given the green light by its shareholders to separate its North American business unit, forming a new company named Amrize which will concentrate on the North American market. The split is expected to be completed by June 2025, with Holcim retaining assets in other global regions, while Amrize will become the largest cement producer in the US and Canada, with over 1,000 operational sites and 19,000 employees. With projections of US$1.3 billion in net revenues by 2024, Amrize aims to leverage the area's substantial infrastructure investment. As part of Holcim's restructuring, Kim Fausing has been appointed as the new Chairman of the Board, while Jan Jenisch will continue in his role as CEO and Chairman. This strategic move is expected to enhance the focus of both Holcim and Amrize on their respective strategic and operational plans.
Asian Exchanges Weaken Thursday (15/5) Morning, Investors Watch US-China Trade Developments
On Thursday, Asia-Pacific stock markets experienced a decline following a previous session of gains, attributable to improved US-China trade relations. The Nikkei 225 and Topix in Japan experienced a decline, as did South Korea's Kospi and Kosdaq, and Australia's S&P/ASX 200. Hong Kong's Hang Seng Futures Index also experienced a decline. Citi has stated that the market has already taken into account the impact of tariff pressures. However, they have also warned of the potential for volatility due to fiscal policy uncertainties and weak US economic data. In the US, stock index futures experienced a slight decline despite the S&P 500 index's three-day gain, with the S&P 500 and Nasdaq Composite showing modest growth while the Dow Jones Industrial Average declined. This week also saw the conclusion of a provisional agreement between the US and China, with both parties agreeing to suspend their trade tensions.