Global investors to convene for Future Hospitality Summit

Global investors to convene for Future Hospitality Summit
Organized by The Bench, the 2024 edition of FHS Saudi Arabia resulted in over $1.1 billion in business opportunities and 17 major deals, reaffirming the event’s status as one of the region’s most impactful dealmaking platforms. (Supplied)
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Updated 11 May 2025
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Global investors to convene for Future Hospitality Summit

Global investors to convene for Future Hospitality Summit
  • Industry leaders will explore innovative investment models and strengthen partnerships

RIYADH: More than 1,000 tourism innovators, global investors and hotel operators from around the world will join government officials in Riyadh for the 2025 edition of the Future Hospitality Summit.

Scheduled for May 11–13 at the Mandarin Oriental Al Faisaliah, the three-day event will revolve around the theme “Where Vision Shapes Opportunity,” featuring a dynamic agenda of panel discussions, investment showcases, and high-profile deal signings.

Organized by The Bench, the 2024 edition of FHS Saudi Arabia resulted in over $1.1 billion in business opportunities and 17 major deals, reaffirming the event’s status as one of the region’s most impactful dealmaking platforms.

The 2025 summit, held alongside strategic partners such as NEOM, Red Sea Global, Taiba Investments, and the Tourism Development Fund, comes as Saudi Arabia advances one of the world’s most ambitious tourism and hospitality strategies. 

Backed by a $110 billion development pipeline, the Kingdom aims to deliver more than 362,000 new hotel rooms by 2030.

In 2023 alone, the hospitality sector contributed SR444.3 billion ($118.4 billion) to the national gross domestic product.

Industry leaders at FHS 2025 will explore innovative investment models, address talent development needs, and strengthen partnerships aligned with Vision 2030’s mission to diversify the economy and establish Saudi Arabia as a premier global destination for business, culture, and religious tourism.

“FHS Saudi Arabia continues to be a key engine for hospitality investment and 2025 is shaping up to be no exception,” Jonathan Worsley, chairman of The Bench told Arab News. 

“With over 1,000 delegates expected in Riyadh, including an expanded pool of investors, we anticipate a strong uplift in deal volume and a substantial wave of new opportunities. While it’s difficult to quantify exact outcomes, all signs point to another record-breaking year.”

According to Worsley, over a dozen agreements have already been confirmed ahead of the summit.

“Last year, 17 major agreements were signed at FHS Saudi Arabia and we’re well on track to exceed that number this year. We anticipate total deal value to surpass previous records driven by significant projects and opportunities across both primary hubs and emerging destinations such as Aseer, Al-Ahsa,” he said. 

Worsely added:“The partnerships forged at FHS Saudi Arabia will further elevate Saudi Arabia’s global hospitality positioning.” Riyadh, Jeddah, Makkah, and Madinah continue to serve as key investment hubs, while interest grows in mixed-use developments, branded residences, and eco-luxury projects.

Worsely said: “There’s strong demand for distinctive, high-end products — from fine dining and leisure assets to mixed-use developments that blend hospitality, retail, and culture.”

He added: “Our summit is not merely a forum for discussion — it’s a marketplace where investors meet opportunities. Every panel discussion and networking session is engineered to move the conversation forward.”

The 2025 agenda will also debut two new platforms: the “NextGen Investment Forum,” focused on addressing workforce development in the hospitality sector, and the second edition of “Startup Den,” spotlighting early-stage companies driving innovation.

Saudi Arabia’s tourism sector is experiencing rapid growth, with international arrivals reaching 30 million in 2024, with a target of hitting 70 million by 2030, according to a Ministry of Tourism press release.

Revenue from international tourists surged 148 percent in 2024 compared to 2019 — the highest growth rate among G20 nations. 

Saudi Arabia is undergoing one of the most ambitious hospitality and tourism transformations the world has ever seen.

Duncan O’Rourke Accor’s, CEO for the Middle East, Africa and Asia Pacific

An annual performance report published in April highlighted record-breaking pilgrim numbers, cultural milestones, and major international events, all driven by strategic investments, regulatory reforms, and transformative mega-projects. 

“Fueled by ambitious Vision 2030 goals, Saudi Arabia’s tourism sector presents a compelling investment landscape, evidenced by its record-breaking SR444.3 billion GDP contribution in 2023, accounting for 11.5 percent of the national economy,” Oussama El-Kadiri, partner and head of hospitality, tourism and leisure at Knight Frank said in a statement.

He added: “This growth reflects the Kingdom’s strategic initiative to position itself as a leading global tourism destination.”

Hospitality operators are swiftly expanding their presence to match the sector’s growth, with Accor — one of the event’s headline sponsors — broadening its footprint across both primary and secondary cities.

“Saudi Arabia is undergoing one of the most ambitious hospitality and tourism transformations the world has ever seen,” Duncan O’Rourke, Accor’s CEO for the Middle East, Africa and Asia Pacific told Arab News.

He added: “Accor’s footprint in Saudi Arabia includes 45 hotels across 15 brands and over 17,000 keys. This is more than growth. It’s about legacy, partnership, and purpose. And we are honored to be a part of it.”

O’Rourke stated that demand for diversified products is rising. “From Accor’s perspective, we are seeing strong traction across segments, with a focus on branded residences, extended stay, and midscale brands, which offer compelling value while supporting long-stay and group needs.” 

On pricing, O’Rourke noted that the Kingdom’s average daily rate in 2024 reflects solid fundamentals with “Riyadh’s ADR rising by approximately 10-12 percent year on year.” 

In preparation for global megaevents such as Expo 2030 and the FIFA World Cup 2034, Accor is also prioritizing flexibility and localized strategies to meet evolving market demands.

“Preparing our teams for the future is not just a strategic priority, it’s how çwe live our purpose,” said O’Rourke. “In short, we’re not just responding to labor market shifts, we’re helping to shape them.”

FHS Saudi Arabia 2025 will offer a dynamic blend of keynote sessions, investor roundtables, and sector-specific panels, with a strong focus on ESG, cultural integration, and effective project delivery.

As giga-projects gain momentum, record deal activity is forecast, and investor interest expands into new sub-sectors, this year’s summit is set to be a pivotal moment for Saudi Arabia’s hospitality industry.


Aramco cuts methane emissions by 11.4%, sets 2030 target to reduce upstream carbon intensity

Aramco cuts methane emissions by 11.4%, sets 2030 target to reduce upstream carbon intensity
Updated 12 sec ago
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Aramco cuts methane emissions by 11.4%, sets 2030 target to reduce upstream carbon intensity

Aramco cuts methane emissions by 11.4%, sets 2030 target to reduce upstream carbon intensity

RIYADH: Saudi Aramco has achieved an 11.4 percent reduction in methane emissions in 2024 and set a new 2030 target to cut upstream carbon intensity, according to its latest sustainability analysis.

Saudi Aramco President and CEO Amin Nasser reaffirmed the company’s commitment to embedding sustainability across all areas of its operations in a new report, saying the target is part of the firm’s “broader roadmap” to achieve net-zero operational emissions by 2050.

Saudi Arabia is aiming to be carbon neutral by 2060, a commitment announced by Crown Prince Mohammed bin Salman during the Saudi Green Initiative forum in 2021.

As the Kingdom’s flagship energy producer, Saudi Aramco plays a pivotal role in this transition by implementing decarbonization measures, expanding low-carbon energy investments, and deploying climate-focused technologies.

“This is Aramco’s fourth Sustainability Report since announcing our ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across our wholly-owned operated assets by 2050. To complement our net-zero ambition, we have also set a new 2030 interim target for reducing our upstream carbon intensity,” Nasser stated in the release.

The interim goal aims to reduce carbon intensity in upstream operations to 8.6 kg of carbon dioxide equivalent per barrel of oil equivalent or lower, compared to the current 9.7 kg CO2e/boe — already among its peers’ lowest upstream carbon intensity.

Aramco has also set a target to achieve a 15 percent reduction by 2035 compared to its 2018 baseline, and has outlined an ambition to mitigate 52 million tonnes of CO2 equivalent annually by 2035, relative to its business-as-usual emissions forecast.

Meanwhile, upstream methane intensity decreased to 0.04 percent in 2024, down from 0.05 percent the previous year.

The report outlines Aramco’s sustainability strategy, including efforts to minimize emissions from existing energy sources, increase efficiency through artificial intelligence, and boost investments in carbon capture, hydrogen, and renewables.

To underline the company’s drive to net-zero, Nasser highlighted a shareholder agreement signed by Aramco in 2024 to develop a carbon capture and storage hub in Jubail.

“When completed, this facility is expected to be one of the largest such projects in the world,” he said.

The CEO added that hydrogen is another area where the company sees potential growth opportunities, “leading to our acquisition of a 50 percent stake in a blue hydrogen company.” 

Aramco also signed a non-binding agreement with mining giant Ma’aden to form a joint venture focused on mineral exploration in Saudi Arabia.

“The joint venture would draw on Aramco’s extensive geoscience data and subsurface knowledge, with lithium production potentially commencing by 2027,” Nasser added.

The company’s growing use of AI is central to its decarbonization drive. AI-enabled analytics are now used to monitor and reduce greenhouse gas emissions across key facilities, while predictive algorithms help optimize equipment performance and reliability.

“Looking ahead, we believe a multi-source, multi-speed, and multi-dimensional approach is required for the global energy transition in order to properly address the energy security, affordability and sustainability priorities of individual countries,” Nasser concluded in his message.

According to the Net Zero Emissions in Saudi Arabia by 2060 report in 2023 by King Abdullah Petroleum Studies and Research Center, the Kingdom is targeting an annual reduction of 278 million tonnes of CO2 equivalent by the end of the decade in order to reach its net-zero goal by 2060.

The plan includes expanding renewables to 50 percent of the energy mix, phasing out liquid fuels in power generation, and planting 650 million trees.

The Kingdom is also aiming to capture 44 million tonnes of CO2 annually by 2035.


Saudi Arabia, China’s DHX Group to build first tinplate plant in Ras Al-Khair

Saudi Arabia, China’s DHX Group to build first tinplate plant in Ras Al-Khair
Updated 30 min 12 sec ago
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Saudi Arabia, China’s DHX Group to build first tinplate plant in Ras Al-Khair

Saudi Arabia, China’s DHX Group to build first tinplate plant in Ras Al-Khair

JEDDAH: Saudi Arabia is set to localize tinplate and tin-free steel production through a partnership with China, establishing the region’s first facility of its kind with an annual capacity of 400,000 tonnes. 

Al-Watania for Industries and China’s Donghexin Group, or DHX Group, have signed an agreement to build the plant in Ras Al-Khair Industrial City on the Kingdom’s eastern seaboard. The plant is scheduled to start commercial operations by mid-2027.
 
The initiative represents an achievement in Saudi Arabia’s efforts to localize the supply chain for the packaging industry. It aims to satisfy growing domestic demand for tinplate and tin-free steel — critical materials that underpin a wide range of sectors, including food and beverage, paints, oils, and chemicals. 

A memorandum of understanding to establish the facility was first signed on Jan. 15 during the fourth edition of the Future Minerals Forum, according to a statement from WFI issued that day, but now a full partnership has been agreed.

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef witnessed the signing ceremony, which was also attended by Vice Minister for Mining Affairs Khalid Al-Mudaifer, DHX Group Chairman Li Dong, and Al-Watania for Industries Chairman Mosaed Al-Ohali. 

In a press statement, Al-Ohali said: “This partnership marks a strategic step toward achieving one of our key expansion goals — vertical integration across the value chain of the metal packaging sector.” 

He added: “Establishing a technologically advanced tinplate manufacturing plant is a long-term investment in Saudi Arabia’s industrial security and reflects our deep commitment to localizing industrial knowledge, meeting domestic demand, and enhancing our export capabilities.” 

According to the Saudi Press Agency, the project is expected to generate over 500 direct jobs and will employ environmentally friendly technologies. Half of its output will be designated for domestic consumption, while the remaining will be exported.

The facility is also seen as a key enabler for Saudi Arabia to position itself as a manufacturing hub and reduce dependency on imported raw materials. 

DHX Group’s Dong said the venture is a model for global collaboration. “We are confident that our extensive experience of over two decades in this field will contribute to building a world-class metal manufacturing ecosystem that begins in the Kingdom and expands into regional markets,” he said. 

“The plant is designed with sustainability in mind and is fully prepared for a future shift to low-emission green electricity, reinforcing our shared commitment to the environment,” Dong added. 

Abdulrahman Al-Juaid, CEO of WFI, said the project represents a major step toward increasing local content and positioning Saudi Arabia as an exporter of critical tinplate.

“The partnership with Donghexin Group will contribute to the transfer of advanced manufacturing technologies and the training of national talent, enhancing Saudi Arabia’s readiness to become a leading regional industrial hub,” he added. 


Saudi banks’ March profits jump 27% on lending boom

Saudi banks’ March profits jump 27% on lending boom
Updated 19 May 2025
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Saudi banks’ March profits jump 27% on lending boom

Saudi banks’ March profits jump 27% on lending boom
  • Total bank credit reached SR3.1 trillion in March, an annual increase of 16.26%
  • Saudi banks are expected to maintain stable profitability throughout the year

RIYADH: Saudi banks recorded a 27.1 percent year-on-year increase in net profits in March, reaching SR8.81 billion ($2.35 billion).

According to the Saudi Central Bank, also known as SAMA, this figure reflects earnings before zakat and tax.

The robust performance marks one of the strongest monthly earnings in recent years. It underscores growing confidence in the Kingdom’s banking sector amid steady economic activity and a strong pipeline of Vision 2030-related projects.

According to a January report by S&P Global Ratings, Saudi banks are expected to maintain stable profitability throughout the year. The analysis highlighted a favorable economic environment and declining interest rates as key enablers of continued credit expansion.

The robust banking performance aligns with the Kingdom’s broader non-oil economic momentum. Shutterstock

In particular, corporate lending is anticipated to remain the primary driver of loan growth in 2025, supported by increased construction activity, infrastructure investment, and government-led initiatives.

S&P expects lending growth to hover around 10 percent for the year, with corporate lending closely tied to Vision 2030 implementation leading the surge. Meanwhile, mortgage lending is projected to recover moderately in response to lower borrowing costs.

Saudi banks are also expected to continue leveraging international capital markets to fund growth. S&P estimated credit losses will stabilize at 50 to 60 basis points, supported by strong provisioning cushions built in recent quarters.

The March performance aligns with broader credit dynamics observed in Saudi Arabia. According to SAMA, total bank credit reached SR3.1 trillion in March, an annual increase of 16.26 percent, the highest growth in over three years.

Corporate loans accounted for 55.19 percent of the total, rising 22.3 percent year-on-year to over SR1.71 trillion.

The King Abdullah Financial District in Riyadh, Saudi Arabia. Shutterstock

This trend reflects a shift in Saudi lending priorities, with businesses now driving the lending landscape. The uptick in business credit signals increased private sector activity, particularly across construction, real estate, and manufacturing.

This robust banking performance aligns with the Kingdom’s broader non-oil economic momentum. According to the Riyad Bank Saudi Arabia Purchasing Managers’ Index compiled by S&P Global, the Kingdom recorded a PMI of 58.1 in March, the highest among its Middle Eastern peers and well above the 50.0 threshold, indicating expansion.

Saudi Arabia’s Ministry of Economy and Planning reported in February that non-oil activities now make up 52 percent of gross domestic product, having grown 20 percent since the launch of Vision 2030.

With the government targeting $100 billion in annual foreign direct investment by 2030, the expansion of the banking and non-oil sectors plays a critical role in attracting global capital and supporting long-term economic sustainability. As corporate activity intensifies and lending strategies evolve, Saudi banks appear well-positioned to balance growth, profitability, and resilience.


MAGRABi Retail Group acquires Kefan Optics, eyes potential IPO

MAGRABi Retail Group acquires Kefan Optics, eyes potential IPO
Updated 6 min 54 sec ago
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MAGRABi Retail Group acquires Kefan Optics, eyes potential IPO

MAGRABi Retail Group acquires Kefan Optics, eyes potential IPO
  • Kefan Optics provides MAGRABi a strategic entry point in Kuwait’s competitive optical retail sector
  • MAGRABi CEO Yasser Taher told Arab News the deal would elevate the company’s market share in Kuwait to an estimated 30%

RIYADH: Eyewear giant MAGRABi Retail Group has signed a deal to acquire Kuwait’s optical chain, Kefan Optics, as part of its strategy to expand its footprint in the Gulf market.

Known for its professional eye care services, technical expertise, and loyal customer base, Kefan Optics provides MAGRABi a strategic entry point in Kuwait’s competitive optical retail sector.

The acquisition is projected to increase MAGRABi’s top-line sales by 5 percent and boost its earnings before interest, taxes, depreciation, and amortization by more than 10 percent within the first year following integration.

In an exclusive interview with Arab News, MAGRABi CEO Yasser Taher said the deal would elevate the company’s market share in Kuwait from 5 percent to an estimated 30 percent, positioning the company as a market leader in the country’s optical retail sector.

MAGRABi is exploring the possibility of going public, though no formal steps have been taken yet. X/@MagrabiOpt

“Kefan is a highly trusted optician in Kuwait,” said Taher, adding: “They are highly recognized as a very professional optician, they provide high-quality technical service, and the brand is associated with professional optometry ... so they come across as a great fit in terms of clientele.”

Instead of phasing out the Kefan brand, MAGRABi plans to preserve its legacy while enhancing its operations. Planned changes include a refreshed logo, redesigned stores, and a revamped customer experience, all supported by advanced omnichannel capabilities tailored to younger demographics, particularly Gen Z.

Amin Magrabi, chair of MAGRABi Retail Group, called the deal a milestone in the company’s regional expansion. “This acquisition marks another defining moment in our transformation journey. We are proud to strengthen our presence in Kuwait and reinforce our leadership in a region poised for consolidation,” he said in a press statement.

“Our goal remains clear: to lead the evolution of eye care in the Middle East,” Magrabi added.

Kefan Optics Chairman Wael Al-Subaih noted the brand’s long-standing history and welcomed the transition.

Kefan Optics is known for its professional eye care services, technical expertise, and loyal customer base. Instagram/@_kefanoptics

“For 47 years, Kefan Optics — a proud, family-owned business — has been at the forefront of the optics and lenses industry in Kuwait, serving its valued clients through 37 branches across the country,” he said in a press statement. 

“Today marks a significant milestone as Kefan Optics continues its journey of excellence under the Magrabi Retail Group. We celebrate this new chapter with great optimism and extend our best wishes to all involved,” Al-Subaih added.

Deal timeline and financing

Although the acquisition agreement has been signed, the deal remains subject to regulatory approvals from Kuwait’s Competition Authority and Saudi Arabia’s General Authority for Competition. Taher anticipates a formal closing by late August or early September 2025.

“There are a lot of approvals that we should be able to get,” he said. “There are also other stakeholders, including shopping malls and so on. So it’s the usual closing process of any transaction. Yet, the deal is done, and we have already assigned a signed agreement that we are presenting accordingly to authority approvals.”

Regarding the financing structure, Taher said the company follows a hybrid model.

“We would usually try to fund 70 percent from banks and 30 percent from our own equity,” he added.

MAGRABi Retail Group was certified as a Best Place to Workin Saudi Arabia for 2024/2025. MAGRABi

IPO on the horizon

Looking ahead, MAGRABi is exploring the possibility of going public, though no formal steps have been taken yet.

“There is a strong intention to become a publicly listed company. No official approvals have been obtained from the board or the shareholders yet, we’re still working toward the plan and to be ready. The timelines are not in the immediate future,” Taher said.

Interestingly, as part of the Kefan Optics transaction, existing shareholders will have the opportunity to participate in MAGRABi’s future IPO, aligning both companies’ long-term interests.

M&A vs. organic growth

MAGRABi has been expanding through a combination of organic growth and strategic acquisitions, including its purchase of Rivoli Vision in 2024. Still, Taher emphasized that mergers and acquisitions only make sense when there are strong operational synergies.

“To have a successful M&A strategy, you must have very strong synergies to deploy; otherwise, you’re paying a very high premium for an acquisition, and you will not be able to improve results,” he said. “If that’s the case, then for sure, organic would be a better option, because M&A definitely comes at a premium.”

In Kefan Optics’ case, the synergies are clear. MAGRABi gains a well-established brand with loyal customers, while Kefan benefits from enhanced operational support.

“We chose that option because it makes financial sense for us, but strategically, we would like to be as well recognized as a local player in every market. So, if our brand is not necessarily highly recognized in this market. We would prefer to operate with a highly recognized and trusted brand in this market, which is the case in Kuwait,” Taher explained.

Sustained financial growth

Taher highlighted MAGRABi’s consistent financial performance, with the company targeting a 15-20 percent compound annual growth rate — and achieving it. In 2024, organic growth reached 14-15 percent compared to 2023.

When including the impact of the Rivoli Vision acquisition, net sales and EBITDA each rose by 43 percent year over year.

The company’s mainstream brand, Doctor M, also saw a 70 percent increase in sales, while online sales grew 25 percent during the same period.

“The big growth drivers remain our M&A,” Taher noted. “The introduction of Rivoli Vision as part of the MAGRABi Retail Group, also our mainstream banner, Doctor M, is a very big contributor. We’ve also been able to grow our online business by 25 percent year over year.”

Elevating the brand

MAGRABi intends to apply its retail expertise and backend capabilities — such as procurement, supply chain logistics, lens manufacturing, and retail analytics — to optimize Kefan Optics’ performance.

“We can definitely modernize the brand,” Taher explained. “Our intention is to keep the brand but evolve it into a premium and more appealing modern brand. We will refresh the brand, create a more appealing positioning, push the brand a bit more into the premium segment, and rebrand the logo and stores.”

He also pointed to the benefits of incorporating MAGRABi’s central glazing lab and digital retail tools to improve operational efficiency and enhance customer service.

Omnichannel strategy and future plans

As part of its growth strategy, MAGRABi aims to become a leading omnichannel retailer in the Middle East, investing in technology, customer experience, and product innovation.

“The objective is to really become one of the best omnichannel retailers in the Middle East, across all categories,” Taher said. “We’re investing a lot on tech and new customer experience, new services, and new product ranges. It’s a fully empowered proposition.”

The company is also actively pursuing further acquisitions across the region.

“M&A is a key pillar of our growth. We are active, and we have a pipeline that we’re working on, and we’re extremely excited about being able to deploy our capabilities across more and more banners, in different markets,” Taher confirmed.

With the Kefan Optics acquisition and IPO plans in motion, MAGRABi is positioning itself as the dominant force in the region’s optical retail sector.

Taher concluded: “It will be a very proud moment for us to take a brand that is highly trusted, like this in Kuwait, highly recognized in Kuwait, and evolve it to the next level and modernize it.”


Oil Updates — crude retreats as US, China growth concerns weigh 

Oil Updates — crude retreats as US, China growth concerns weigh 
Updated 19 May 2025
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Oil Updates — crude retreats as US, China growth concerns weigh 

Oil Updates — crude retreats as US, China growth concerns weigh 
  • US credit rating cut by Moody’s
  • China’s retail sales disappoint

LONDON: Oil slipped on Monday, weighed down by Moody’s downgrade of the US sovereign credit rating and official data that showed slowing growth in China’s industrial output and retail sales.
Both developments raised concerns over the outlook for the world’s two biggest economies and oil consumers, a week after Beijing and Washington’s agreement to roll back most tariffs on each other’s goods pushed oil prices higher.
“The weaker-than-expected Chinese data is not helping crude oil, although I would describe the setback as modest,” said UBS analyst Giovanni Staunovo.
Brent crude futures lost 46 cents, or 0.7 percent, to $64.95 a barrel by 11:43 a.m. Saudi time, while US West Texas Intermediate crude slipped by 26 cents, or 0.4 percent, to $62.23. The nearby June WTI contract expires on Tuesday.
Both contracts rose more than 1 percent last week.
Also weighing on the market were comments from US Treasury Secretary Scott Bessent that President Donald Trump will impose tariffs at the rate he threatened last month on trading partners that do not negotiate in “good faith.”
“Today’s weakness is simply a continuation of crude’s wild ride going nowhere, with the latest move triggered by the Moody’s downgrade and not least Scott Bessent’s warning,” said Ole Hansen of Saxo Bank.
The official Chinese data on Monday showed growth in industrial output slowed in April, though performance was still better than economists had expected.
Investors are keeping an eye on progress in the Iran-US nuclear talks, with uncertainty over the outcome limiting losses in oil prices.
US special envoy Steve Witkoff said on Sunday that any deal must include an agreement not to enrich uranium, a comment that swiftly drew criticism from Tehran.
“The US-Iran nuclear negotiations are not clear cut and may take many months,” said John Evans of oil broker PVM.