World Street | China's services activity eases in April, Oil prices trend higher, Buffett cuts Apple stake, and more

World Street offers sneak peak into top global news developments

Leafing through some of the top global news developments, we have China's services activity easing in April, followed by Warren Buffett's stake cut in Apple, and oil prices trending higher after Saudi Arabia hikes crude oil prices. Take a deep dive into May 6 World Street's edition!

Overnight, US stock index futures climbed, buoyed by a robust performance on Wall Street driven by investor speculation of a potential rate cut in September due to disappointing labor data. Additionally, positive earnings reports, particularly from Apple Inc, contributed to the upbeat sentiment, as the company recorded a revenue and profit decline smaller than anticipated.

On May 3, US Treasury yields declined following the release of April's employment report, which revealed slower-than-anticipated growth in payrolls and an unexpected uptick in the unemployment rate. The yield on the 10-year Treasury dropped approximately 7 basis points to 4.5 percent, while the 2-year Treasury yield decreased by 6 basis points to 4.8 percent.

Berkshire Hathaway, led by Warren Buffett, has reduced its investment in Apple, seemingly motivated by tax considerations. According to the conglomerate's first-quarter earnings report released on Saturday, its stake in the tech giant was valued at $135 billion. During a question-and-answer session at Berkshire's annual meeting in Omaha, Buffett hinted that the sale may have been prompted by tax concerns, particularly given substantial gains.

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A private sector survey on Monday revealed that China's services sector expansion slightly decelerated due to increasing costs. However, there was an acceleration in growth for new orders, and business sentiment improved significantly, providing optimism for a continued economic recovery. The Caixin/S&P Global Services Purchasing Managers' Index (PMI) dipped to 52.5 from March's 52.7 but remained above the 50-mark, indicating expansion for the 16th consecutive month.

Chinese President Xi Jinping commenced a tour of three European countries on May 5 amidst a continent grappling with divergent views on addressing Beijing's expanding influence and the rivalry between the United States and China. Xi's journey is of significant interest to Washington, which seeks insights into any potential waning European backing for its primary foreign policy objectives. Concurrently, Europe faces mounting uncertainty regarding future US commitment to trans-Atlantic alliances.

According to reports, Paramount has opted to initiate formal negotiations with a bidding consortium headed by Sony Pictures Entertainment and private equity titan Apollo. This decision follows the expiration of a period of exclusive discussions with the Hollywood studio Skydance on May 4.

Oil futures rose on May 6 after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil producing region. Brent crude futures climbed 28 cents, or 0.3 percent, to $83.24 a barrel while US West Texas Intermediate crude futures were at $78.40 a barrel, up 29 cents, or 0.4 percent.