Global Markets React As UAE Quits OPEC; Starbucks Earnings Offer Wall Street A Lifeline

We are back with quick updates about global stock markets and major developments across some of the top companies worldwide.

Asia-Pacific markets traded mixed on Wednesday after a weak overnight session on Wall Street, as investors weighed major developments around Organization of the Petroleum Exporting Countries (OPEC). The United Arab Emirates said it will exit OPEC on May 1. This could significantly impact the cartel, which coordinates production among some of the world’s largest oil producers.

The announcement came after weeks of escalating tensions with Iran. The UAE has faced repeated missile and drone attacks, while disruptions to shipping in the Strait of Hormuz have constrained its oil exports and raised concerns about the stability of its energy-driven economy. The UAE has been an influential member of OPEC for nearly six decades, and its exit marks a major shift for the group and the broader global oil market.

Meanwhile, in Asia, South Korea’s Kospi gained 0.7% to 6,686, while Hong Kong Hang Seng index added 1.6% to 26,111. However, Singapore’s Straits Times Index declined 0.4% at 4,864. Australia’s S&P/ASX 200 was down 0.2% to 8,687. Japan markets were closed for a holiday.

US stocks closed lower on Tuesday, pulling back from record highs as renewed concerns around the artificial intelligence boom weighed on tech shares ahead of key earnings. The S&P 500 fell 0.4% to 7,138, while the Nasdaq Composite dropped 0.9% to 24,663. The Dow Jones Industrial Average ended the session flat at 49,141.

European stocks are likely to open lower as investors await earnings and assess the impact of the United Arab Emirates’ exit from OPEC.

Oil prices were mixed on Wednesday as markets reacted to fresh geopolitical developments. Prices had begun to stabilise after a tentative US-Iran ceasefire, but sentiment shifted following the UAE’s decision to exit OPEC. Brent crude for June delivery rose 0.2% to $112 a barrel, while West Texas Intermediate futures for May delivery dipped 0.3% to $99.

Gold slipped as investors awaited comments from US Federal ‌Reserve Chair Jerome Powell to assess the economic impact of the Iran war. Spot gold fell 0.5% to $4,568 per ounce after hitting its lowest level since April 2 in the previous session. US gold futures for June delivery also gained 0.6% to $4,580, while spot silver climbed 0.5% to $72 per ounce.

Gold prices in the UAE rose on Wednesday, crossing Dh3 per gram after the country announced its exit from OPEC. The 24K variant was trading at Dh554.75 per gram at the market open, up from Dh551.75 at the previous close. Other variants also edged higher, with 22K at Dh513.75, 21K at Dh492.50, 18K at Dh422.25 and 14K at Dh329.25 per gram.

Here’s a look at some of the important developments across the global markets:

UBS Q1 profit jumps 80% to $3 billion, beats estimates

Swiss banking giant UBS reported a net profit of $3 billion for the first quarter, up 80% from a year earlier and above analyst estimates of $2.8 billion. Underlying profit before tax came in at $3.9 billion, rising 54% year-on-year and beating expectations of $3.2 billion, according to a consensus compiled by LSEG. The bank’s common equity tier 1 ratio, a measure of capital strength, stood at 14.7%, compared with 14.4% in the previous quarter. UBS said it remains on track to complete $3 billion in share buybacks before its second-quarter results. It repurchased $900 million worth of shares during the first quarter.

Starbucks raises forecast after strong Q2 results, shares gain 5%

Starbucks raised its annual forecast after reporting stronger-than-expected second-quarter results, helped by improved service and higher staffing levels. Shares rose about 5% in after-hours trading after the company beat estimates for both sales and profit. Global same-store sales grew 6.2% in the quarter, ahead of expectations of a 3.7% increase, according to data compiled by LSEG. CEO Brian Niccol said sales momentum continued through April, while the company expects pressure from tariffs and coffee prices to ease later this year. Starbucks now forecasts fiscal 2026 adjusted earnings per share of $2.25 to $2.45, up from its earlier outlook of $2.15 to $2.40.

Canada approves first generic version of Ozempic as price pressure builds

Health Canada has approved the first generic version of Ozempic, the diabetes drug originally developed by Novo Nordisk. The generic version will be made by India’s Dr. Reddy's Laboratories, marking a key step in the rollout of lower-cost alternatives to the widely used GLP-1 drug. Many drugmakers have been working on developing lower-cost versions of Ozempic, pushing down monthly treatment costs for some patients. In March, India became the first major market to introduce such versions after certain patent protections expired. The move prompted Novo Nordisk to cut prices for Ozempic and its weight-loss drug Wegovy in the country.

Visa beats profit estimates as spending stays strong, shares rise 6%

Visa beat Wall Street profit estimates for the quarter, supported by steady consumer spending and higher payment volumes. Shares rose more than 6% in after-hours trading following the results. Payment volumes on Visa’s network increased 9% in the second quarter, reflecting continued strength in consumer and business spending. CEO Ryan McInerney said spending remained resilient, with growth across consumer payments, commercial transactions and value-added services. Data processing revenue rose 18% year-on-year to $5.54 billion.

Seagate sees upbeat Q4 on AI-driven demand;, shares surge 16%

Seagate Technology’s fourth-quarter revenue and profit were above Wall Street estimates, driven by strong demand for data storage linked to artificial intelligence. Shares surged about 16% in after-hours trading. Seagate expects fourth-quarter revenue of about $3.45 billion, compared with estimates of $3.16 billion, according to data compiled by LSEG. The company projected adjusted earnings per share of around $5, ahead of expectations of $3.97. Companies are investing more in storage infrastructure as they expand AI capabilities, increasing demand for hardware that can handle large volumes of data.

Bill Ackman’s Pershing Square raises $5 billion in US IPO for new fund

Bill Ackman’s Pershing Square has raised $5 billion for a new closed-end fund as part of a US IPO. The listing marks Ackman’s long-standing plan to launch a flagship fund in New York, with the new vehicle structured without performance fees and aimed at both institutional and retail investors. The fund, Pershing Square USA, is set to begin trading on the New York Stock Exchange under the symbol “PSUS,” while Pershing Square will trade under “PS” from Wednesday. Ackman had previously attempted to take the fund public in 2024 but withdrew the IPO days before listing due to weaker-than-expected demand.

Shell to buy Canada’s ARC in $16.4-billion deal

British company Shell has agreed to acquire Canada’s ARC Resources in a deal valued at $16.4 billion, marking its largest acquisition since it bought gas giant BG in 2016. The transaction will be paid with around 25% cash and 75% shares, offering ARC shareholders a 20% premium to the stock’s average price over the past 30 days. Shell said it will take about $2.8 billion in net debt and leases as part of the deal, with the equity portion valued at $13.6 billion. The acquisition is expected to boost Shell’s production by about 370,000 barrels of oil equivalent per day, strengthening its overall output.

Finnish lift maker Kone to buy Germany’s TK Elevator in €29.4 billion deal

Finnish lift maker Kone said it has agreed to buy German rival TK Elevator in a cash-and-stock deal valued at 29.4 billion euros ($34.4 billion). The transaction is one of Europe’s largest takeovers this year and the biggest in Finland’s corporate history. Kone will pay 5 billion euros in cash and issue 270 million new shares worth about 15.2 billion euros. It will also assume around 9.2 billion euros of TK Elevator’s net debt, which it plans to refinance.

Australia inflation spikes, but core price pressures stay steady

Australian Bureau of Statistics (ABS) data showed headline inflation rose to 4.6% in March, up from 3.7% in February, driven by higher fuel costs. The consumer price index increased 1.1% for the month, with transport prices rising 9.2% as automotive fuel jumped 32.8%. The rise comes amid a global energy shock linked to tensions in the Middle East, which had already pushed fuel prices higher. However, trimmed mean inflation, the Reserve Bank of Australia’s preferred measure of underlying price pressures, held steady at 3.3%. The ABS said this measure helps smooth out sharp price swings in items like fuel, offering a clearer view of underlying inflation trends.

OpenAI to offer models on AWS after ending Microsoft exclusivity

OpenAI’s generative AI models will become available on Amazon Web Services (AWS) after the ChatGPT parent ended its exclusivity with Microsoft. OpenAI made this announcement a day after it revamped its relationship with Microsoft so that it can run all its products on any cloud. AWS customers will be able to access OpenAI’s models and its Codex coding agent through Amazon Bedrock. The services are expected to become generally available in the coming weeks, expanding access to OpenAI’s tools beyond Microsoft’s cloud.