Trump Sets Aug. 1 Start for Tariffs Ahead of Wednesday Deadline
The time line for the talks appeared to be reset after US officials signaled that trading partners will have until Aug. 1 before the tariffs kick in. That gives them the option of three more weeks for deal-making.
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Oil prices up; strong demand outweighs surprisingly big OPEC+ output hike
By Arathy Somasekhar HOUSTON (Reuters) -Oil prices rose nearly 2% on Monday as signs of strong demand more than offset the impact of a higher-than-expected OPEC+ output hike for August and fresh concerns about the potential impact of U.S. tariffs. Brent crude futures settled up $1.28, or 1.9%, at $69.58. U.S. West Texas Intermediate crude settled up 93 cents or 1.4%, at $67.93. Early in the session, Brent had fallen as low as $67.22 and WTI's session low was $65.40. "The supply picture definitely looks to be elevating, however, the stronger demand is remaining above expectations as well," said Dennis Kissler, senior vice president of trading at BOK Financial. Travel industry statistics released last week showed that a record number of Americans had been set to travel for the Fourth of July holiday by road and air. On Saturday, the Organization of the Petroleum Exporting Countries and allies in OPEC+ agreed to raise production by 548,000 barrels per day in August, exceeding the 411,000-bpd hikes they made for the prior three months. The OPEC+ decision will bring nearly 80% of the 2.2 million-bpd voluntary cuts from eight OPEC producers back into the market, RBC Capital analysts, led by Helima Croft, said in a note. However, the actual output increase has been smaller than planned so far and most of the supply has been from Saudi Arabia, analysts said. In a show of confidence about oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia. Goldman analysts expect OPEC+ to announce a final 550,000-bpd increase for September at the next meeting on August 3. Oil had also come under pressure as U.S. officials flagged a delay regarding when tariffs would begin, but failed to provide details on changes to the rates that will be imposed. Investors are worried that higher tariffs could slow economic activity and oil demand. The U.S. will make several trade announcements in the next 48 hours, Treasury Secretary Scott Bessent said on Monday, adding his inbox was full of last-ditch offers from countries to clinch a tariff deal before a July 9 deadline. "Although U.S. trade policy is still unfolding, the U.S. is extending deadlines and backing away from punitive tariffs, helping to lift some of the demand gloom in place since April," said Jeffrey McGee, managing director of advisory firm Makai Marine Advisors. Meanwhile, Yemen's Iran-aligned Houthis said on Monday a cargo ship they struck with gunfire, rockets and explosive-laden remote-controlled boats had sunk in the Red Sea, after their first known attack on the high seas this year. Israeli Prime Minister Benjamin Netanyahu was due to meet with Trump at the White House on Monday, while Israeli officials hold indirect talks with Hamas aimed at reaching a U.S.-brokered Gaza ceasefire and hostage-release deal. Iranian President Masoud Pezeshkian said he believes Iran can resolve its differences with the U.S. through dialogue, but trust would be an issue after U.S. and Israeli attacks on his country, according to an interview released on Monday. (Additional reporting by Florence Tan and Ahmad Ghaddar; Editing by Marguerita Choy, Nick Zieminski, Cynthia Osterman and David Gregorio) Sign in to access your portfolio
Yahoo
19 minutes ago
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Morning Bid: Tariff deja vu takes hold
A look at the day ahead in European and global markets from Rocky Swift U.S. President Donald Trump's assertion that his latest tariff deadline was "firm, but not 100% firm" was all Asian share markets needed to stage a weak rally. A July 9 date to secure trade deals with the United States was reset to August 1, and even as 14 nations received letters about tariff hikes on their goods, Trump's words left plenty of time and wiggle room for negotiation. Since Trump's unveiling of his sweeping "Liberation Day" tariffs on April 2, each additional policy change has obeyed the economic maxim of "diminishing marginal returns" in terms of market reaction. Still, 25% duties on goods from Japan and South Korea, America's second- and third-largest trade partners in Asia, are still a hefty burden. More letters are expected to be doled out to other countries this week, keeping tariffs on the front pages. For the time being, a sense of deja vu is keeping market moves muted. The European Union is not among those expected to get a letter, EU sources familiar with the matter told Reuters on Monday. The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a "good exchange," a commission spokesperson said. Since April, the Trump administration has put together just two, thinly sketched out trade agreements, with Britain and Vietnam, and a fragile trade truce with China. The U.S. dollar has been one of the biggest casualties from the tariff turmoil, but it bounced back strongly on Monday and held gains in Asia. Strength in the greenback against Japan's yen and the South Korean won added a tailwind to their major share indexes on Tuesday. Equity futures are indicating a down day broadly for Europe, whereas the U.S. market is poised for a flat open. But on the bright side, Goldman Sachs raised its return forecasts for the S&P 500, citing expectations for U.S. interest rate cuts and continued fundamental strength of major large-cap stocks. Key developments that could influence markets on Tuesday: - Germany trade data for May - Reopening of 5-year government debt auction in Germany – Reopening of 24-year government debt auction in the United Kingdom Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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20 minutes ago
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Australia's central bank keeps rates steady at 3.85%, stuns markets
By Stella Qiu and Wayne Cole SYDNEY (Reuters) - Australia's central bank on Tuesday left its cash rate steady at 3.85%, a shock for markets that had confidently wagered on a cut, saying the majority of the board wanted to wait for more information to confirm inflation was slowing. The Australian dollar jumped 0.8% to $0.6545, while three-year bond futures extended earlier losses and fell 13 ticks to 96.58. Wrapping up a two-day policy meeting, the Reserve Bank of Australia said it remained cautious about the inflation outlook, adding that six members had voted to hold rates steady while three voted against, a rare split decision for the board. Markets had been almost fully priced for an easing to 3.60% this week given core inflation had slowed to the mid-point of the RBA's 2% to 3% target range and consumer spending was proving weaker than expected. [AU/INT] "The Board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis," the board said in a statement. "It noted that monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia." On Monday, President Donald Trump ramped up his global trade war, telling trade partners like Japan and South Korea that higher U.S. tariffs would start on August 1, although there appeared to be opportunities for additional negotiations. The RBA cut interest rates in February and May, but the reductions did little to spur consumers into spending even as they lifted housing prices to record highs. The stubbornly frugal consumer is a reason that the economy barely grew in the first quarter and a slew of soft retail sales reports suggest households are saving rather than spending past tax cuts. A monthly inflation report had the closely-watched trimmed mean measure hitting 2.4% in May, a 3-1/2 year low and coming under the midpoint of the target band of 2-3%. That prompted many economists to bring forward their rate cut call to July from August. The labour market, however, remained resilient, which argues against the RBA rushing into stimulatory policy settings. The unemployment rate has been hovering at 4.1% for over a year now. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
