U.S. stock markets jump despite Trump tussle with Canada
NEW YORK, New York - U.S. President Donald Trump dropped a bombshell on Friday announcing he had terminated trade talks with Canada. Such is the strength of the U.S. stock market though, that after an early dip, buyers again took the upper hand, sending the Standard and Poor's 500 to a new record.
"We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country," the U.S. president posted on his own social media platform Truth Social on Friday.
"They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately."
"We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period," Mr Trump said.
Despite the ruckus with Canada, there were some stand-outs on Friday. Nvidia rose for the fifth day in a row, taking it to a record high.
The stock after hitting a one-year low in April, has since surged 66 percent and is now capitalized at $3.85 trillion, ahead of Apple and Microsoft. The stock rose $2.66 or 1.72 percent on Friday, to close at $157.75, its highest closing level ever.
Wall Street Extends Gains
The Standard and Poor's 500 (^GSPC) rose 32.08 points (up 0.52 percent) to close at 6,173.10, marking another record high, as investors remained optimistic about corporate earnings and economic growth.
The Dow Jones Industrial Average (^DJI) outperformed with a strong gain of 432.43 points (up 1.00 percent), finishing at 43,819.27—its best close since early June.
Tech stocks also advanced, with the Nasdaq Composite (^IXIC) climbing 105.54 points (up 0.52 percent) to 20,273.46, supported by gains in semiconductor and AI-related shares.
Market Outlook
Analysts attributed Wall Street's strength to renewed confidence in the Federal Reserve's potential rate cuts later this year, while weaker oil prices and the breakdown in trade talks pressured Canadian equities. Trading volumes were robust, with the S&P 500 seeing 4.147 billion shares exchanged.
Friday's foreign exchange session saw theU.S. dollar (USD)gaining against some major currencies while weakening against others, as traders assessed economic data and central bank outlooks.
The EUR/USD pair on Friday edged up slightly to 1.1704, rising 0.04 percent as the euro held steady amid mixed European economic signals. Meanwhile, the USD/JPY climbed 0.25 percent to 144.71, as the yen remained under pressure amid expectations of continued loose monetary policy from the Bank of Japan.
The USD/CAD saw a notable jump Friday, gaining 0.54 percent to 1.3712, as the United States terminated trade talks with Canada.
Pound and Aussie Dollar Decline Against Greenback
The GBP/USD fell 0.16 percent to 1.3703, as the British pound softened following cautious remarks from Bank of England policymakers. The AUD/USD dropped 0.37 percent to 0.6520, reflecting broader risk-off sentiment in commodity-linked currencies.
The NZD/USD dipped slightly by 0.05 percent to 0.6049, while the USD/CHF saw a marginal decline of 0.01 percent to 0.7995, as the Swiss franc held firm amid global market uncertainty.
Market Outlook
Traders are now looking ahead to next week's key economic data, including inflation figures and central bank speeches, which could influence currency movements. The dollar's mixed performance suggests markets remain cautious.
Global markets wrap up Friday, European and UK bourses finish with solid gains
Friday's trading session saw a mixed performance across global indices. Overall, European markets outperformed, while Asian indices showed a split between gains and losses as investors weighed economic data and central bank policies.
The S&P/TSX Composite (^GSPTSE) declined 59.63 points (down 0.22 percent) to 26,692.32, weighed down by losses in energy and materials sectors as news of the ending of trade tades with the United States broke.
UK and European Indices Rally
The FTSE 100 (^FTSE) in London closed at 8,798.91, rising 63.31 points (up 0.72 percent).
In Germany' theDAX (^GDAXI) surged 383.92 points (up 1.62 percent) to 24,033.22, while France's CAC 40 (^FCHI) climbed 134.24 points (up 1.78 percent) to 7,691.55.
The broader EURO STOXX 50 (^STOXX50E) also advanced Friday, gaining 81.61 points (up 1.56 percent) to 5,325.64.
Belgium's BEL 20 (^BFX) added 38.13 points (up 0.85 percent) to 4,509.03, and the Euronext 100 (^N100) rose 19.45 points (up 1.25 percent) to 1,575.55.
Split Results in Asia and Pacific
In Asia on Friday, Hong Kong's Hang Seng (^HSI) dipped 41.25 points (down 0.17 percent) to 24,284.15, while Australia's S&P/ASX 200 (^AXJO) fell 36.60 points (down 0.43 percent) to 8,514.20. The Australian All Ordinaries (^AORD) slipped 30.00 points (down 0.34 percent) to 8,743.60.
However, India's S&P BSE SENSEX (^BSESN) gained 303.03 points (up 0.36 percent) on Friday to 84,058.90, while in Indonesia, the IDX Composite (^JKSE) rose 65.26 points (up 0.96 percent) to 6,897.40.
Malaysia's KLSE (^KLSE) edged up 8.37 points (up 0.55 percent) to 1,528.16, and New Zealand's NZX 50 (^NZ50) jumped 103.54 points (up 0.83 percent) to 12,583.59.
South Korea's KOSPI (^KS11) declined 23.62 points (down 0.77 percent) to 3,055.94, while Taiwan's TWII (^TWII) added 87.74 points (up 0.39 percent) to 22,580.08.
Japan and China Show Divergence
Japan's Nikkei 225 (^N225) continued its strong run on Friday, climbing 566.21 points (up 1.43 percent) to 40,150.79, marking another milestone. However, China's Shanghai Composite (000001.SS) fell 24.23 points (down 0.70 percent) to 3,424.23.
African equities slide
South Africa's JSE Top 40 (^JN0U.JO) dipped 26.92 points (down 0.50 percent) to 5,319.61, while Singapore's STI (^STI) rose 27.74 points (up 0.70 percent) to 3,966.20.
Middle East Markets Closed
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