BHP Group has made an all-share offer to acquire Anglo American, which would create the world's largest copper producer. The deal aims to capitalise on the high valuation of copper and its demand driven by the energy transition. Anglo American rejected the "unsolicited" offer, citing uncertainty about the terms. However, analysts view Anglo American's copper assets as an attractive strategic fit for BHP. The consolidation could trigger further mergers and acquisitions in the mining industry as companies seek exposure to critical metals.

EQUITY

Wall Street closed slightly higher in choppy trading as positive corporate earnings from tech giants offset concerns over rising Treasury yields. Meta Platforms plunged on higher projected costs for AI investments, dragging down other tech stocks in after-hours trading. Asian markets fell, tracking tech losses. Tesla jumped 12% even after the battery firm reported lower profit on waning EV sales, riding on its plan to make cheaper cars. Microsoft and Google earnings calls are now in focus.

GOLD

Gold prices slightly higher on Thursday, reversing their decline for the third straight session. The decline in gold prices was attributed to profit-taking after an extended rally and pressure from institutional investors looking to raise cash by selling commodity positions. Investors turned their attention to the upcoming U.S. economic data releases, including the first-quarter GDP and March PCE reports.

OIL

U.S. fuel demand is showing signs of slowing down, with gasoline and distillate stockpiles not decreasing as much as expected. This drove oil prices lower on Wednesday, but they are recovering as tensions in the Middle East raise the risk of a wider war that could potentially disrupt oil supplies. OPEC eyes Namibia's oil potential, estimating 2.6 billion barrels by 2030 to offset Angola's exit, with recent finds akin to those in Guyana.

CURRENCY

The greenback extended its rally against the yen, shattering the 155 intervention level as traders remained sceptical about intervention warnings by Japanese authorities. Ahead of the Bank of Japan's policy decision, investors do expect a somewhat hawkish stance from the central bank, reflecting rising inflation expectations. The next dollar's trajectory hinged on forthcoming U.S. economic data, including GDP and PCE price index figures.