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Emirati Bourses Close Higher as Financial Stocks Rally

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Shares in the United Arab Emirates were back in the green on Thursday as the FTSE ADX General Index gained 0.708%, while the DFM General Index added 0.237%.

With the earnings season in full swing, investors welcomed the latest corporate earnings reports from the region's major lenders, including First Abu Dhabi Bank (ADX:FAB) and Emirates NBD Bank (DFM:EMIRATESNBD).

First Abu Dhabi Bank was the Abu Dhabi bourse's most traded by value during the session and closed 6.26% higher. The personal and private banking group recorded a higher first-half attributable net profit driven by a 7% annual growth in operating income.

Emirates NBD Bank's attributable profit for the period also rose amid strong growth in net interest and non-funded income, supported by disciplined cost management. Its shares closed the session 3% in the green.

In other news, DP World partnered with the Fujairah Ports Authority to develop the Al Rugaylat container and Dibba Al Fujairah Port in Fujairah under a 50-year concession agreement. The initiative aims to attract investment, enhance economic infrastructure, and create new job opportunities.

Across the pond, the US Central Command concluded a 12th consecutive night of strikes on Iran amid no signs of de-escalation. Keeping sentiment subdued were US President Donald Trump's threats to bomb and destroy Iran's bridges and power plants if the Middle Eastern country attacked any ship in the Strait of Hormuz.

"So far, the official news organs in Iran report that Iran isn't backing down on its claims to the Strait of Hormuz and that its officials have even dismissed US President Donald Trump's claim that Iran is seeking to begin a new round of negotiations, effectively shutting down the reports of 'peace' that emerged first on Monday. So Brent crude is higher again today by about USD 4/bbl, and back up to the levels not seen since early June, before the US-Iran MoU was signed," Macquarie said in a note.

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Update: US Equity Indexes Fall as Treasury Yields, Crude Oil Gains Reflect Concern Over Widening Disruption to Energy Supplies

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes fell on Wednesday as government bond yields followed crude oil prices higher amid concern that disruption to energy supplies is likely to both extend and expand in the Middle East.The Nasdaq Composite declined 0.6% to 25,690.90, with the S&P 500 down 0.1% to 7,498.96, while the Dow Jones Industrial Average leaned slightly lower to 52,218.58. Communication services and consumer discretionary led decliners while utilities and energy topped the gainers.Alphabet (GOOG, GOOGL) and Tesla (TSLA), both a part of the so-called Magnificent-7 group of stocks with a significant index sway, reported after the bell on Wednesday.Alphabet reported Q2 earnings of $9.11 per diluted share, up from $2.31 a year earlier. Analysts polled by FactSet expected $2.88. Revenue for the three months ended June 30 was $119.80 billion, up from $96.43 billion a year earlier. Analysts expected $117.06 billion.Tesla reported Q2 adjusted earnings of $0.33 per diluted share, versus $0.40 a year ago. Analysts polled by FactSet expected $0.53. Sales for the quarter were $28.24 billion, up from $22.50 billion a year earlier. Analysts expected $26.42 billion.In geopolitical news, the US plans to destroy an Iranian bridge or power plant, including those in and around Tehran, every time it attacks ships in the Strait of Hormuz, President Donald Trump said in a social media post on Wednesday. US Central Command has struck Iran for 11 consecutive nights to degrade the Iran Revolutionary Guards Corps' ability to attack maritime traffic in the chokepoint to about a fifth of global crude oil and gas flows.Meanwhile, seven tankers have changed course in the Red Sea to avoid the Bab el-Mandeb Strait since the Houthis' threat on Tuesday to block Saudi oil exports, Reuters reported. The Iran-aligned Houthis have reportedly completed preparations to target vessels near the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and Arabian Sea. The Bab el-Mandeb Strait is an alternative route to the Strait of Hormuz, which remains effectively closed due to tensions between the US and Iran."Any aggression against Iran, including our infrastructure, will compel a powerful and decisive response," Iran's Foreign Minister Abbas Araghchi posted on X, formerly Twitter, on Wednesday. "Those who contribute to such aggression, whatever the kind of support, will also be considered as legitimate targets."The front-month US West Texas Intermediate climbed 2.5% to $86.41 a barrel, and global benchmark North Sea Brent jumped 3% to $93.75 a barrel.US Treasury yields rose, extending gains from Tuesday. The 10-year marched 3.1 basis points higher to 4.66%, its strongest level in a month. The two-year jumped 4.3 basis points to 4.3% after yields hit the highest in 52 weeks.Markets are pricing in a more hawkish path for central banks, with yields moving higher around the world as a result, a Deutsche Bank note said, referring to the recent moves in real yields.Next week, the probability of the Federal Reserve leaving its policy unchanged for July slumped to 66% from 89% a week ago, the CME FedWatch tool showed Wednesday. The likelihood of a pause continuing across September, October, and December also declined.In precious metal markets, gold futures jumped 1.5% to $4,136.1, and silver futures advanced 1.5% to $59.98.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL$TSLA
Asia Markets

Update: US Equity Indexes Mixed as Treasury Yields Jump With Crude Oil Amid Red Sea Chokepoint Disruption

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes traded mixed as government bond yields followed crude oil prices higher amid worsening Iran geopolitics and a disruption of maritime traffic in the Red Sea chokepoint.The Nasdaq Composite slipped less than 0.1% to 25,826.1 after midday Wednesday. The S&P 500 rose 0.1% to 7,519.5, and the Dow Jones Industrial Average climbed 0.3% to 52,369.4.In geopolitical news, the US will destroy an Iranian bridge or power plant, including those in and around Tehran, every time it attacks ships in the Strait of Hormuz, President Donald Trump said in a social media post on Wednesday.Iran's Islamic Revolutionary Guard Corps said it hit Jordan's King Faisal and Prince Hassan bases with missiles and drones, claiming to target US military equipment in response to recent American strikes, CNN reported. The US Central Command said Tuesday it struck Iran for the 11th consecutive evening.Seven tankers have changed course in the Red Sea to avoid the Bab el-Mandeb Strait since the Houthis' threat on Tuesday to block Saudi oil exports, Reuters reported. The Iran-aligned Houthis have reportedly completed preparations to target vessels near the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and Arabian Sea. The Bab el-Mandeb Strait is an alternative route to the Strait of Hormuz, which remains effectively closed due to tensions between the US and Iran.The front-month US West Texas Intermediate climbed 2.4% to $86.40 a barrel, and global benchmark North Sea Brent jumped 2.8% to $93.52 a barrel.US Treasury yields rose, extending gains from Tuesday. The 10-year marched 1.8 basis points higher to 4.65%, its strongest level in a month. The two-year jumped 3.7 basis points to 4.3% after yields hit the highest in 52 weeks.Markets are pricing in a more hawkish path for central banks, with yields moving higher around the world as a result, Jim Reid, global head of macro and thematic research at Deutsche Bank, said in a note Wednesday, referring to the recent moves in real yields. The US 30-year real yield at over 1.0 basis point reached a post-2008 high on Tuesday, he added.Next week, the probability of the Federal Reserve leaving its policy unchanged for July slumped to 66% from 89% a week ago, the CME FedWatch tool showed Wednesday. The likelihood of a pause continuing across September, October, and December also declined. The possibility of a Fed rate increase had surged earlier this month following soft consumer and producer price inflation data.Alphabet (GOOG, GOOGL) and Tesla (TSLA) will report quarterly earnings after the bell on Wednesday.Shares of Super Micro Computer (SMCI) soared 24% after the company said it expects fiscal Q4 GAAP and non-GAAP gross margins in the range of 15% to 17%, significantly above its 8.2% to 8.4% forecast due to a favorable customer and product mix. The stock was the top gainer on the S&P 500.In precious metal markets, gold futures jumped 2% to $4,159.3, and silver futures advanced 2.6% to $60.64.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL$SMCI$TSLA
Asia Markets

Exchange-Traded Funds, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM fell and IVV rose. Actively traded Invesco QQQ Trust (QQQ) eased 0.1%.US equity indexes traded mixed ahead of quarterly earnings from Alphabet (GOOG, GOOGL) and Tesla (TSLA) and as government bond yields followed crude oil prices higher amid worsening Iran geopolitics.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added about 1.2%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) rose fractionally; iShares US Technology ETF (IYW) shed less than 0.1%, and iShares Expanded Tech Sector ETF (IGM) was down 0.1%.The State Street SPDR S&P Semiconductor (XSD) rose 1%, and iShares Semiconductor (SOXX) advanced 1%.FinancialThe State Street Financial Select Sector SPDR (XLF) shed 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 0.3%.CommoditiesCrude oil rose 2.6%, and the United States Oil Fund (USO) added 2.4%. Natural gas gained 1.9%, and the United States Natural Gas Fund (UNG) was up 2.1%.Gold on Comex added 1.8%, and the State Street SPDR Gold Shares (GLD) gained 1.4%. Silver was up 2%, and iShares Silver Trust (SLV) climbed 2%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) added 0.5%. The Vanguard Consumer Staples ETF (VDC) gained 0.4%, and iShares Dow Jones US Consumer Goods (IYK) was up 0.9%.The State Street Consumer Discretionary Select Sector SPDR (XLY) slipped 0.5%. VanEck Retail ETF (RTH) dipped 0.7%, and the State Street SPDR S&P Retail (XRT) was up 0.4%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) shed 0.3% and iShares US Healthcare (IYH) eased 0.3%, and Vanguard Health Care ETF (VHT) fell 0.5%. IShares Biotechnology ETF (IBB) was down 0.8%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 0.4%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were higher as well.CryptocurrencyIn midday activity, bitcoin (BTC-USD) dipped 0.7%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) fell 0.8%, ProShares Ether ETF (EETH) was up 1%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 0.1% higher.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH