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Oil Prices Rise as Investors Await Key US Inflation Data

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Oil prices rose on Wednesday while global stock markets delivered mixed results as investors focused on a closely watched US inflation report and developments surrounding stalled efforts to end the conflict involving Iran.

Brent crude, the international benchmark, climbed 0.9 per cent to $89.67 a barrel in early trading. US West Texas Intermediate crude also gained 0.9 per cent to $83.98. Gold increased 0.8 per cent to $4,400.44 an ounce, while silver advanced 1 per cent to $65.30.

Energy markets remain sensitive to developments in the Middle East. Iran rejected remarks by US President Donald Trump suggesting Washington could seek compensation if Tehran demands compensation as part of negotiations to end the conflict.

The United States and Israel launched attacks against Iran in late February, leading to the closure of the Strait of Hormuz and disrupting the movement of oil through a critical global shipping route. Brent crude prices have experienced significant volatility, moving between $72 and $102 a barrel over the past month.

Concerns over regional security also increased after Iran-backed Houthi rebels attacked a vessel in the Bab el-Mandeb strait near Yemen. The incident raised fears that further violence could threaten shipping through another important route connecting the Red Sea with the Gulf of Aden.

Rising energy costs are adding to inflation concerns in the United States. The average price of regular petrol reached $4.01 a gallon, according to AAA, compared with less than $3.14 a year earlier.

Investors are now awaiting the US government’s July inflation report. Economists expect annual inflation to have eased to 3.4 per cent from 3.5 per cent in June.

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A softer inflation reading could reduce pressure on the Federal Reserve to raise interest rates. Higher rates can help contain price increases, but they can also increase borrowing costs for households and businesses and weigh on stock valuations.

Wall Street retreated further from its record levels on Tuesday. The S&P 500 declined 0.3 per cent for its second consecutive modest loss after reaching an all-time high on Friday. The Dow Jones Industrial Average fell 184 points, or 0.3 per cent, while the Nasdaq Composite dropped 0.6 per cent.

US Treasury yields have climbed since the conflict with Iran began, reflecting concerns about higher oil prices and inflation. Rising yields have also pushed long-term mortgage rates to their highest level in a year.

Asian markets were mostly higher on Wednesday. Tokyo’s Nikkei 225 gained 0.6 per cent to 67,334.94.

South Korea’s Kospi jumped more than 4 per cent to 6,597.90 as investors bought technology stocks. Samsung Electronics rose 7.7 per cent, while SK Hynix gained 7.1 per cent.

Taiwan’s Taiex advanced 0.8 per cent, while Shanghai’s Composite index added 0.3 per cent. Hong Kong’s Hang Seng fell 1.2 per cent and Australia’s S&P/ASX 200 declined 0.6 per cent.

In currency trading, the dollar strengthened to 159.41 yen from 159.30 yen, while the euro slipped to $1.1535 from $1.1544.

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European Stocks Challenge August’s Weak Reputation as Markets Reach Record Highs

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European stock markets have entered August 2026 with remarkable strength, defying a long-standing belief that the month is traditionally one of the weakest periods for investors.

The EURO STOXX 50 and Germany’s DAX have climbed to record highs, while France’s CAC 40 remains close to its peak. The strong performance has surprised many market participants, as August has often been associated with poor returns across Europe’s major equity markets.

Historical data shows that the reputation is only partly accurate. While August has delivered average losses over several decades, analysts say those figures are heavily influenced by a small number of severe financial crises rather than consistent yearly declines.

The EURO STOXX 50 has recorded an average August decline of 1.42% since its creation. Germany’s DAX has averaged a 1.03% loss since 1970, and France’s CAC 40 has fallen an average of 1.22% in August since 1988. September has historically been an even weaker month for all three indexes.

This year tells a different story. On August 11, the EURO STOXX 50 closed above 6,560 points for the first time, marking an all-time high and a gain of about 13% since the beginning of the year. The DAX also surpassed 26,450 points, while the CAC 40 finished near 8,740.

Analysts argue that the median return provides a clearer picture of August’s typical performance. For the EURO STOXX 50, the median August return is only -0.19%, suggesting that most years are relatively stable and that extreme events have distorted the long-term average.

Five historic crises account for much of August’s negative reputation. The Russian debt default in 1998, Iraq’s invasion of Kuwait in 1990, the eurozone debt crisis in 2011, the Asian financial crisis in 1997 and China’s yuan devaluation in 2015 all triggered sharp market declines during August. Excluding those years, the EURO STOXX 50’s average August return turns slightly positive.

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Market specialists also point to seasonal trading conditions. August is traditionally a holiday period across Europe, leaving thinner market liquidity and making share prices more sensitive to unexpected news. With fewer monetary policy meetings scheduled during the summer, investors often have limited guidance until central bankers gather later in the month at the annual Jackson Hole symposium in the United States.

Despite the positive momentum, risks remain. Strong corporate earnings have supported European equities, but higher energy prices linked to Middle East tensions could revive inflation and pressure consumer spending and company profits.

Rather than proving August is destined to be a losing month, this year’s performance suggests investors should focus less on the calendar and more on the possibility of unexpected global shocks during a period of reduced market activity.

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Trump Media’s Truth API Attracts Wall Street Traders Despite Ethical Questions

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More than 10 customers have signed up for a controversial service launched by Trump Media and Technology Group that gives financial firms faster access to influential posts published on Truth Social.

The service, called Truth API, was introduced at the beginning of August and provides Wall Street traders with early access to posts from some of the social media platform’s most influential accounts. Many of its first customers are high-frequency trading firms paying between $60,000 and $100,000 a month, interim chief executive Kevin McGurn said during the company’s earnings call.

The service has raised concerns because US President Donald Trump frequently uses Truth Social to make announcements and comment on markets, companies and economic issues. Trump’s family remains the majority shareholder of Trump Media, creating questions over whether the company could financially benefit from faster access to statements made by the president.

Trump Media said in its latest earnings statement that Truth API is expected to create a new source of revenue. McGurn said the company believes the service could become a significant and lasting contributor to its business.

The announcement came as Trump Media reported a net loss of $238 million for the second quarter, covering April through June. The loss was more than 10 times the deficit recorded during the same period a year earlier.

The company generated $1.7 million in revenue during the quarter, an increase of 89% from a year earlier. However, losses linked to the decline in cryptocurrency values weighed heavily on its overall results.

Trump Media ended June with about $2 billion in total assets, including roughly $1.9 billion in financial assets such as cash, short-term investments and digital currencies.

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The company has expanded beyond its original social media business into cryptocurrency and clean-energy investments. It has also explored possible partnerships involving technology companies, news organisations and betting markets.

Analyst Markus Thielen of 10x Research described the company as being heavily focused on cryptocurrency, with its media operation surrounding that business. He said the company was now attempting to diversify, although its newer ventures have yet to produce substantial income.

Truth API has also attracted scrutiny over whether paying customers could gain a trading advantage by receiving market-sensitive posts before the wider public. The issue is particularly sensitive because of Trump’s political position and his frequent use of Truth Social.

Trump Media has said the service fits within its broader strategy to expand revenue from Truth Social. The company recently abandoned plans for a separate partnership with Crypto.com to add prediction-market features to the platform.

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Germany Faces Growing Teacher Shortage as New School Year Begins

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Germany is entering the new school year with a serious shortage of teachers, leaving schools struggling to fill vacancies and maintain regular lessons in several subjects.

The staffing crisis is particularly severe in mathematics, computer science, physics and chemistry. Schools also continue to report shortages in special-needs education, art and music.

According to the latest projection from the Standing Conference of the Ministers of Education and Cultural Affairs, Germany has a calculated shortage of about 27,000 fully qualified teachers. State governments have responded by creating additional positions, recruiting people from other professions and offering financial incentives, but shortages remain widespread.

The situation is especially difficult in some regions. Brandenburg Education Minister Gordon Hoffmann warned in June that the state might not be able to guarantee regular timetables everywhere during the new school year. Rural areas and subjects including biology and chemistry are among those facing particular pressure.

North Rhine-Westphalia is also struggling despite having more than 166,000 teaching positions. More than 7,770 posts remained vacant in the state, according to the latest figures.

Long-term sickness is adding another challenge. In Berlin, 380 teachers had been absent because of illness for at least one year, according to figures from the city’s education administration. The total includes 225 civil servants and 155 salaried teachers among roughly 35,000 teachers employed in the capital.

Eighteen Berlin teachers had reportedly been on sick leave for at least 10 years. Primary schools were the most affected, with 98 teachers absent for extended periods, followed by secondary schools with 54.

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Berlin lawmaker Alexander King said staffing shortages were contributing to heavier workloads for teachers who remained in their jobs, potentially increasing pressure on their health.

Other states are reporting similar concerns. In North Rhine-Westphalia, teachers spent an average of 8.43% of working days on sick leave in 2025, higher than the rate across the wider state administration. In Saxony-Anhalt, about 8.6% of lessons were cancelled during the 2024/25 school year because replacement teachers could not be found.

Nationwide comparisons remain difficult because states collect data differently and use varying definitions for long-term illness.

The staffing problem is expected to continue as many experienced teachers approach retirement. Federal statistics show that 35.4% of teachers at general education schools were aged 50 or older during the 2024/25 school year.

At the same time, Germany’s pupil population is expected to rise. The education ministers’ conference projects the number of pupils to increase from nearly 11.2 million in 2024 to almost 11.8 million by 2032.

The combination of retirements, rising pupil numbers and lengthy teacher training means German schools are likely to face staffing pressure for years to come.

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