European shares tumble as trade, geopolitical tensions mount
ADVERTISEMENT The pan-European STOXX 600 was down 0.4% at 549.41 points at 0707 GMT, while most regional bourses were also in the red.
U.S. President Donald Trump said on Wednesday that he was willing to extend the deadline for trade talks but it was not likely necessary as the U.S. will send offer letters to countries in a week or so.
However, markets were a little concerned about the European Union being able to clinch a deal before Trump's July 8 deadline - when the tariff pause expires. Geopolitical worries added more caution to markets already navigating U.S. tariff-driven uncertainty after trade talks with China did not offer a solution to de-escalate longstanding tensions. U.S. personnel were being moved out of the Middle East because "it could be a dangerous place" amid rising tensions with Iran, Trump said on Wednesday.
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In the market, travel and leisure stocks were the worst hit, down 1.7%, while industrial miners fell 1.1%.
Among stocks, BE Semiconductor Industries (BESI) jumped 7.7% after raising its long-term financial targets ahead of its investor day.
ADVERTISEMENT Tesco gained 1.3% after Britain's biggest food retailer's domestic sales growth accelerated in its first quarter.
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Time of India
an hour ago
- Time of India
US to release result of probe into chip imports in two weeks
The Trump administration will announce the results of a national security probe into imports of semiconductors in two weeks, Commerce Secretary Howard Lutnick said on Sunday, as President Donald Trump suggested higher tariffs were on the horizon. Lutnick told reporters after a meeting between Trump and European Commission President Ursula von der Leyen that the investigation was one of the "key reasons" the European Union sought to negotiate a broader trade agreement that would "resolve all things at one time." Trump said many companies would be investing in semiconductor manufacturing in the United States, including some from Taiwan and other places, to avoid getting hit by new tariffs. He said von der Leyen had avoided the pending chips tariffs "in a much better way." Trump and von der Leyen announced a new framework trade agreement that includes across-the-board 15% tariffs on EU imports entering the United States. Trump said the agreement included autos, which face a higher 25% tariff under a separate sectoral tariff action. The Trump administration in April said it was investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors posed a national security threat. The probe, being conducted under Section 232 of the Trade Expansion Act of 1962, could lay the groundwork for new tariffs on imports in both sectors. The Trump administration has begun separate investigations under the same law into imports of copper and lumber. Earlier probes completed during Trump's first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto industry. Trump has upended global trade with a series of aggressive levies against trading partners, including a 10% tariff that took effect in April, with that rate set to increase sharply for most larger trading partners from August 1. The U.S. relies heavily on chips imported from Taiwan, something Democratic former President Joe Biden sought to reverse during his term by granting billions of dollars in Chips Act awards to lure chipmakers to expand production in the United States.
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Business Standard
an hour ago
- Business Standard
Stocks to Watch today, July 28: TCS, SAIL, Shriram Finance, Aadhar Housing
Stocks to Watch Today, Monday, July 28, 2025: The domestics stock markets today could open flat-to-positive with GIFT Nifty futures trading 7 points higher at 24,838 at 7:56 AM. Global markets traded mixed on Monday as investors awaited further clarity on US-China trade negotiations set to begin in Stockholm later today. In the Asia-Pacific region, Japan's Nikkei 225 benchmark fell 0.85 per cent, while South Korea's Kospi index was trading 0.15 per cent higher. Australia's ASX 200 also edged up, gaining 0.2 per cent. Earlier on Friday, July 26, Wall Street's major indices ended higher as investors braced for a busy week ahead, which includes a Federal Reserve policy meeting, key corporate earnings reports, and President Donald Trump's August 1 deadline for negotiating trade deals. The S&P 500 rose 0.40 per cent, the tech-heavy Nasdaq Composite added 0.24 per cent, and the Dow Jones Industrial Average closed up 0.47 per cent. Meanwhile, here is a list of stocks to watch today: Tata Consultancy Services (TCS): India's largest IT services firm plans to cut its global workforce by around 2 per cent, or approximately 12,260 employees, over the current financial year. The move is aimed at enhancing agility amid a shift toward AI-driven business transformation. Aadhar Housing Finance: BCP Topco VII Pte. Ltd., the promoter of Aadhar Housing Finance, has signed an agreement to sell up to 64.14 per cent stake in the company to BCP Asia II Holdco VII Pte. Ltd. at a price not exceeding ₹425 per share, in one or more tranches, subject to regulatory approvals. Additionally, the Acquirer, along with Blackstone Capital Partners (CYM) IX AIV - F L.P. (PAC 1) and Blackstone Capital Partners Asia II L.P. 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Balkrishna Industries: The company reported a decline of 41.2 per cent in its profit to ₹288.3 crore in Q1FY26 from ₹490 crore reported in Q1FY25. During the quarter under review, the company's revenue, however, witnessed a rise of 1.7 per cent Y-o-Y to ₹2,760 crore from ₹2,714 crore. Balkrishna Industries' earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at ₹506 crore in Q1FY26, down 24 per cent Y-o-Y from ₹664 crore. Steel Authority of India (SAIL): The state-owned company reported a multifold jump in standalone net profit to ₹685.48 crore in Q1FY26, against ₹10.68 crore posted in Q1FY25. The company's revenue from operations rose 8.01 per cent Y-o-Y to ₹25,921.46 crore in the quarter ended 30 June 2025. The company's Ebitda stood at ₹2,925 crore in Q1FY26, marking a 20.86 per cent increase from ₹2,420 crore reported in the same quarter last year. Kotak Mahindra Bank: Kotak Mahindra Bank reported a 40 per cent year-on-year (Y-o-Y) decline in its consolidated net profit to ₹4,472.18 crore in the April–June quarter of the financial year 2025-26 (Q1FY26), mainly due to the gain of ₹3,013 crore it had earned in the year-ago quarter from the divestment of a 70 per cent stake, through a combination of fresh growth capital and share sale, in its subsidiary Kotak Mahindra General Insurance Company (KGI) to Zurich Insurance Company. The consolidated net profit in the year-ago quarter was ₹7,448.16 crore. Zen Technologies: The company's revenue stood at ₹158.22 crore, reflecting a quarter-on-quarter (Q-o-Q) decrease of 51.31 per cent from ₹324.97 crore. This corresponds to a Y-o-Y decline of 37.86 per cent. Net profit stood at ₹47.75 crore, reflecting a Q-o-Q decrease of 52.75 per cent from ₹101.05 crore, and a decline of 37.83 per cent Y-o-Y. 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Mint
an hour ago
- Mint
US-EU trade deal: Winners, losers, and what's missing? Who benefits and what new deal mean?
US President Donald Trump and European Commission President Ursula von der Leyen have unveiled a broad trade agreement that sets 15% tariffs on most European imports. This averts Trump's earlier warning of a 30% rate if a deal isn't struck by 1 August. These tariffs, import taxes applied to European goods bought by Americans, could raise prices for US consumers and reduce profits for European businesses and their US partners. Here are some things to know about the trade deal between the United States and the European Union: Trump and von der Leyen's announcement, made during Trump's visit to one of his golf courses in Scotland, leaves many details to be filled in. The headline figure is a 15% tariff rate on 'the vast majority' of European goods brought into the US, including cars, computer chips and pharmaceuticals. it's lower than the 20% Trump initially proposed, and lower than his threats of 50% and then 30%. Von der Leyen said the two sides agreed on zero tariffs on both sides for a range of 'strategic' goods-Aircraft and aircraft parts, certain chemicals, semiconductor equipment, certain agricultural products, and some natural resources and critical raw materials. Specifics were lacking. She said the two sides 'would keep working' to add more products to the list. Additionally, the EU side would purchase what Trump said was USD 750 billion worth of natural gas, oil and nuclear fuel to replace Russian energy supplies, and Europeans would invest an additional USD 600 billion in the US. Trump said the 50% US tariff on imported steel would remain; von der Leyen said the two sides agreed to further negotiations to fight a global steel glut, reduce tariffs and establish import quotas, that is, set amounts that can be imported, often at a lower rate. Trump said pharmaceuticals were not included in the deal. Von der Leyen said the pharmaceuticals issue was 'on a separate sheet of paper' from Sunday's deal. Where the USD 600 billion for additional investment would come from was not specified. And von der Leyen said that when it came to farm products, the EU side made clear that 'there were tariffs that could not be lowered,' without specifying which products. The 15% rate removes Trump's threat of a 30% tariff. It's still much higher than the average tariff before Trump came into office, of around 1%, and higher than Trump's minimum 10% baseline tariff. Higher tariffs, or import taxes, on European goods mean sellers in the U.S. would have to either increase prices for consumers, risking loss of market share or swallow the added cost in terms of lower profits. The higher tariffs are expected to hurt export earnings for European firms and slow the economy. The 10% baseline applied while the deal was negotiated was already sufficiently high to make the European Union's executive commission cut its growth forecast for this year from 1.3% to 0.9%. Von der Leyen said the 15% rate was 'the best we could do' and credited the deal with maintaining access to the US market and providing 'stability and predictability for companies on both sides.' German Chancellor Friedrich Merz welcomed the deal, which avoided 'an unnecessary escalation in transatlantic trade relations" and said that 'we were able to preserve our core interests,' while adding that 'I would have very much wished for further relief in transatlantic trade.' The Federation of German Industries was blunter. "Even a 15% tariff rate will have immense negative effects on export-oriented German industry," said Wolfgang Niedermark, a member of the federation's leadership. While the rate is lower than threatened, "the big caveat to today's deal is that there is nothing on paper, yet," said Carsten Brzeski, global chief of macro at ING bank. 'With this disclaimer in mind and at face value, today's agreement would clearly bring an end to the uncertainty of recent months. An escalation of the US-EU trade tensions would have been a severe risk for the global economy," Brzeski said. 'This risk seems to have been avoided.' When asked whether European carmakers could still compete under the new 15% tariff, von der Leyen noted that the rate is significantly lower than the previous 27.5% which included Trump's 25% tariff on foreign cars, along with the existing 2.5% U.S. car import duty. The effect on some companies is expected to be considerable. Automaker Volkswagen, for instance, reported a $1.5 billion loss in profit during the first half of the year due to the higher tariffs. Mercedes-Benz dealers in the US have said they are holding the line on 2025 model year prices 'until further notice.' The German automaker has a partial tariff shield because it makes 35% of the Mercedes-Benz vehicles sold in the U.S. in Tuscaloosa, Alabama, but the company said it expects prices to undergo 'significant increases' in the coming years. Before Trump returned to office, the US and the EU maintained relatively low tariff rates within the world's largest bilateral trading relationship, totalling around $2 trillion annually. Combined, the U.S. and EU account for 44% of the global economy. According to the Brussels-based Bruegel think tank, the average U.S. tariff on European goods was 1.47%, while the EU's average tariff on American products stood at 1.35%. Trump has complained about the EU's 198 billion-euro trade surplus in goods, which shows Americans buy more from European businesses than the other way around, and has said the European market is not open enough for US-made cars. Von der Leyen said the 15% rate was 'the best we could do' and credited the deal with maintaining access to the US market. Even a 15% tariff rate will have immense negative effects on export-oriented German industry. However, American companies fill some of the trade gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services. And some 30% of European imports are from American-owned companies, according to the European Central Bank.