Middle East tensions rise; UAE attacked, Iran denies plans for further strikes.

Trump Threatens Iran Over Attacks on US Ships

Key Statements and Military Movements

According to Fox News, President Trump warned that Iran would be "blown off the face of the Earth" if it attacks US ships. He noted that the US has increased its military presence in the region and that negotiations with Iran have become easier. Trump expressed his aversion to war, referring to the current situation as a "mini-war."

UAE's Defense Response

The UAE's Ministry of Defense reported that its air defense systems intercepted 12 ballistic missiles, 3 cruise missiles, and 4 drones launched from Iran. A fire broke out in the Fujairah oil industrial area due to these attacks. However, Iranian officials denied any plans to attack the UAE, leading to conflicting narratives and heightened uncertainty in the region.

US Department of Justice Withdraws Appeal

The US Department of Justice has decided to withdraw its appeal regarding a subpoena ruling against federal prosecutor Jeanine Pirro, who had sought a criminal investigation into Federal Reserve Chairman Jerome Powell. This move alleviates the immediate legal pressure on Powell, although it does not eliminate all legal uncertainties surrounding him and the Fed.

Indonesia's Export Tax Plans

Indonesia plans to impose export taxes and windfall taxes on coal and nickel to address rising subsidy costs in its national budget. The implementation of these taxes is expected to enhance customs authority and reduce revenue losses.

Germany's Response to US Tariffs

German Vice Chancellor and Finance Minister Olaf Scholz urged President Trump to adhere to a tariff agreement made with the EU last summer. He warned that any increase in tariffs on EU car imports would lead to retaliatory measures from the EU.

US Customs to Process Tariff Refunds

The US Customs and Border Protection (CBP) announced that it will begin processing electronic refunds for tariffs deemed illegal by the Supreme Court starting May 12. The refunds could total up to $166 billion, marking one of the largest fiscal reversals in recent US trade history.

March Factory Orders Exceed Expectations

In March, US factory orders rose by 1.5%, the largest monthly increase since November. Core capital goods orders also exceeded expectations, indicating a recovery in the manufacturing sector driven by the AI boom.

AI Companies Compete for Investment

OpenAI has raised over $4 billion from 19 investors to create a company focused on maximizing AI software value. Shortly after, competitor Anthropic announced a similar initiative with major financial firms.

Market Reactions to US-Iran Tensions

As US-Iran tensions escalated, all three major US stock indices closed lower. The S&P 500 fell by 0.41%, the Nasdaq by 0.19%, and the Dow Jones by 1.13%. Notably, storage stocks like Micron Technology and Seagate reached all-time highs despite the market downturn.

Cryptocurrency Market Activity

Following bipartisan agreement on a cryptocurrency market structure bill, several cryptocurrency stocks saw significant gains, including Circle and Coinbase.

Palantir's Q1 Earnings Report

Palantir reported Q1 revenue of $1.633 billion, an 85% year-over-year increase, with an adjusted EPS of $0.33. However, its US commercial sales fell short of expectations.

Amazon Launches Supply Chain Service

Amazon announced the launch of its Supply Chain Service, impacting FedEx and UPS stocks, which fell by 9.11% and 10.47%, respectively.

GameStop's Acquisition Bid for eBay

GameStop's stock dropped by 10.14% after announcing a non-binding acquisition offer for eBay, which saw a 5.05% increase.

Cerebras Systems IPO Plans

Cerebras Systems, a competitor to Nvidia, is set to launch its IPO with a pricing range of $115 to $125 per share, aiming for a valuation of up to $26.6 billion.

Hong Kong Stock Exchange Plans Gold Futures

The Hong Kong Stock Exchange is preparing to restart gold futures trading, responding to investor demand for risk diversification amid geopolitical tensions.

Recent Market Highlights

• Tianxing Medical (01609.HK) saw a significant rise in its stock price after its debut.
• Stone Pharmaceutical (02005.HK) reported a slight increase in revenue for Q1.
• Yihua Tong (02402.HK) reported a decline in revenue and an increased loss.

Upcoming Economic Data Releases

Key economic data releases include Australia's interest rate decision, US trade balance for March, and various PMI reports for April.