
Most markets rise, euro boosted after EU strikes US trade deal
News of the deal, announced by Donald Trump and European Commission head Ursula von der Leyen on Sunday, followed US agreements last week, including with Japan, and comes ahead of a new round of China-US talks.
Investors were also gearing up for a busy week of data, central bank decisions and earnings from some of the world's biggest companies.
Trump and von der Leyen announced at his golf resort in Scotland that a baseline tariff of 15 per cent would be levied on EU exports to the United States.
"We've reached a deal. It's a good deal for everybody. This is probably the biggest deal ever reached in any capacity," Trump said, adding that the levies would apply across the board, including for Europe's crucial automobile sector, pharmaceuticals and semiconductors.
Brussels also agreed to purchase "US$750 billion worth of energy" from the United States, as well as make $600 billion in additional investments.
"It's a good deal," von der Leyen said. "It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic."
The news boosted the euro, which jumped to $1.1779 from Friday's close of $1.1749.
And equities built on their recent rally, fanned by relief that countries were reaching deals with Washington.
Hong Kong led winners, jumping around one percent, with Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta also up, along with European and US futures.
Tokyo fell for a second day, having soared about five per cent on Wednesday and Thursday in reaction to Japan's US deal. Singapore and Seoul were also lower.
The broad gains came after another record day for the S&P 500 and Nasdaq on Wall Street.
"The news flow from both the extension with China and the agreement with the EU is clearly market-friendly, and should put further upside potential into the euro... and should also put renewed upside into EU equities," said Chris Weston at Pepperstone.
Traders are gearing up for a packed week, with a delegation including US Treasury Secretary Scott Bessent holding fresh trade talks with a Chinese team headed by Vice Premier He Lifeng in Stockholm.
While both countries in April imposed tariffs on each other's products that reached triple-digit levels, US duties this year have temporarily been lowered to 30 per cent and China's countermeasures slashed to 10 per cent.
The 90-day truce, instituted after talks in Geneva in May, is set to expire on August 12.
Also on the agenda are earnings from tech titans Amazon, Apple, Meta Microsoft, as well as data on US economic growth and jobs.
The Federal Reserve's latest policy meeting is expected to conclude with officials standing pat on interest rates, though investors are keen to see what their views are on the outlook for the rest of the year in light of Trump's tariffs and recent trade deals.
The Bank of Japan is also forecast to hold off on any big moves on borrowing costs. - AFP
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Borneo Post
3 minutes ago
- Borneo Post
More pragmatic to work with PH - Hajiji
Hajiji replying to reporters at the recent Gagasan Rakyat annual convention. While the 'Go solo!' proponents continue their call, on the other side of the fence, the 'No solo!' advocates are also drumming up for support! The former are those who insist on fighting for independence from political meddling in Sabah by Peninsular-based parties, and continuing to push forward with the 'Sabah for Sabahans' slogan, while the latter feel such a desire, while noble, is not the best choice to win the next state general election (PRN17). Heading this group is no less than the Chief Minister, Datuk Seri Panglima Hajiji Hj Noor, who feels that the best strategic choice to win PRN17 and retain governance of Sabah is by keeping GRS intact and strengthened it with a strategic partnership with Pakatan Harapan (PH). He has assured this writer that GRS will definitely not be partnering with Barisan Nasional, hence denying the announcement by Umno President Datuk Seri Dr Zahid Hamidi that 'BN will maintain alliance with PH in the next Sabah state general election.' That might as well be because it's hard to picture GRS leaders in the same campaign team with Sabah Umno, headed by Datuk Seri Panglima Bung Mokhtar who once launched the infamous Kinabalu Move (Langkah Kinabalu) coup attempt against the GRS government. Hajiji sympathizes with those who are passionate about going solo, but he says the pragmatic approach to the critical D-Day for the next state government is to work with Pakatan Harapan. He reasons that the obvious tactical advantage with working the PH is the added strength for GRS which will predominate the power balance with complete alignment of the three racial groupings in Sabah – the Momogun, Muslim and Chinese voters. He sees that the PH will bring in the DAP with the pull-in power to attract the Chinese voters, a strength no local Chinese party has. As he has always maintained, Sabah's governance must continue a close co-operation with the federal government for continued development, and partnership with PH in the PRN17 will ensure election victory and pre-seal close state-federal relations post-election. 'We need to be pragmatic and not be unduly influenced by emotion,' he said. 'Going solo may look heroic but that will be a path with huge potentials for mistakes!' He is not alone in his view. In a viral write-up by Usno Chief Information Officer, Iskandar Zulkarnain Ismail, he asserts that 'Let us not allow our common cause to be divided while our political opponents quietly reorganise to reclaim what we built. Let Sabahans see STAR, PBS, USNO and all GRS components rise as one, with clarity, maturity and determination — not out of frustration, but from a place of purpose and people's mandate. As Robert Greene wrote in The 48 Laws of Power, 'Strike the shepherd and the sheep will scatter.' Our opponents are not attacking us directly — they are striking at our unity, hoping we scatter ourselves. Let us not oblige them. In the end, unity is not submission. To struggle within GRS is not to betray principles. To defend our home is not to isolate ourselves. It is to build collective strength, so our political house remains unshakable, and Sabah's future remains in Sabahan hands.' Another write-up forwarded to me by Usno President Tan Sri Pandikar Amin Mulia, opines that 'going 'solo' in a five or sixcornered fight may sound heroic, but the number works against voters, especially newcomers to the ballot box. When the field is splintered, a candidate can scrape through with barely eight or ten percent of the vote, meaning each ballot counts for less and whole communities risk being represented by someone most people never chose …. 'Beyond the numbers, frequent changes in government trigger a cascade of administrative resets: every time a new ruling bloc takes over, files are reopened, tenders reviewed, and projects paused. The PanBorneo Highway's stopstart history is a textbook example. Tens of thousands of commuters and businesses waited years while successive administrations rechecked paperwork instead of laying asphalt. Instability also chills federal support. Like it or not, Malaysia's treasury sits in Kuala Lumpur; when Sabah's leadership keeps revolving, officials in Putrajaya grow reluctant to release large, multiyear allocations, unsure whether the next state cabinet will even honour existing agreements. Shut the door on constructive dialogue, and Sabah slides to the back of the funding queue while other states with steadier governance move ahead. In short, a solo crusade may satisfy an urge for defiance, but it fragments voter power, stalls essential projects, and risks freezing out the very development funds firsttime voters want to see invested in their future. As such, GRS leaders and supporters appear to be already split. PBS has repeatedly made the assurance about its loyalty to GRS while STAR has gone along with the flow in GRS with a sizable segment of its members wanting a different path, echoing out the solo dream. But for all we know, Hajiji's choice to continue aligning with PH may actually be the most practical, logical and pragmatic – and wise – approach towards ensuring GRS keeps the seat of government post-PRN17. While cynics may speak negatively against his decision, he may eventually be proven right. His task now, of course, is the sell the idea to all GRS leaders and the people to ensure his formula for victory works out and ultimately solidifying his legacy as a statesman with the record as the longest-serving assemblyman.


The Star
3 minutes ago
- The Star
Washington trade talks with India have stalled, sources say
US-India trade talks appear to have stalled, according to two sources familiar with the matter, as both sides remain unwilling to compromise on opening India's agriculture and dairy markets to US products. Before US President Donald Trump announced on Wednesday that he would impose 25 per cent tariffs on imports from the country, the Indian side was expected to visit. However, Indian negotiators will not be coming to Washington in mid-August as a planned follow-up to their previous meeting about two weeks ago, according to one person familiar with the issue. A scheduled trip by the US Trade Representative Jameison Greer to New Delhi later in the month also appears unlikely if the two sides do not reach a consensus on market access. The apparent setback follows five rounds of negotiations between April and July after Trump threatened India with 26 per cent so-called reciprocal tariffs on April 2. Adopting a harsh tone on India in a social media post on Thursday, Trump called the Indian economy 'dead', saying, 'we have done very little business' with the South Asian country because of 'too high' tariffs. 'I don't care what India does with Russia. They can take their dead economies down together, for all I care,' he wrote, referring to India's import of Russian oil and defence equipment. On Wednesday, he threatened a 'penalty' on India for buying Russian oil and defence equipment without making it clear what that penalty could be. India's agricultural sector supports the livelihoods of roughly 42 per cent of the country's population, making Trump's demand for access politically risky for Prime Minister Narendra Modi and ratcheting up tension between Washington and the world's most populous country. One of the sources said the mood in New Delhi felt 'bitter', while both sources said the US negotiators have remained firm in demanding a 'complete' opening of the Indian market, an approach India has rejected to protect its domestic industries and farmers. Last week, another person familiar with the matter had described the talks as a 'total mess' behind the scenes, adding that agriculture was a political no-go zone for Modi's government. US Treasury Secretary Scott Bessent on Thursday told CNBC that 'the whole trade team has been frustrated' with India, saying the country has not been a 'great global actor'. 'India's red lines on agriculture and dairy are probably inviolable,' according to Rick Rossow, chair in US-India Policy Studies at the Center for Strategic and International Studies, a Washington think tank. If the US demands that these areas be opened as part of any deal, he said, 'we may never conclude an agreement'. According to Rossow, Greer will only make the trip to New Delhi 'if there is a realistic chance of resolving any pending issues in the deal". 'If it looks like an empty trip – circling the drain on the last issues without hope of a breakthrough – the visit might be cancelled,' he said. One source said India wants its recent free trade agreement with Britain, which opened British markets to Indian agricultural and textile products, among others, to serve as a model for a deal with the US. Meanwhile, the US side views its recent trade agreement with South Korea, which Trump claimed opened Korean agricultural markets to American goods, as the kind of access it expects from New Delhi. Another source familiar with the thinking on the US side said that Trump has also been keen on some headline-worthy announcements that include big investments or significant energy and defense purchases. Rossow said he suspects that a Phase 1 deal will 'not vary dramatically from the other deals India has signed.' He added that India seemed 'willing to commit to some big announcements in terms of investment and government-directed purchases in areas like hydrocarbons.' 'With President Trump's characterisation of Prime Minister Modi as the 'tariff king' paired with the enormous size of the Indian market, the deal itself will be big news – if and when it's concluded,' Rossow said. India's membership in Brics, a bloc of emerging Global South economies, and Trump's closeness with Pakistan have also become irritants in the US-India relationship. Hours after announcing new tariffs on India, the US president said his team had reached a deal with Islamabad and criticised New Delhi's active role in Brics. 'Brics, which is basically a group of countries that are anti-the United States, and India is a member of that if you can believe it ... It is an attack on the dollar and we are not going to let anybody attack the dollar. So it's partially Brics and it's partially trade,' Trump told reporters on Wednesday. On the other hand, the deal with Pakistan, according to Trump, allows the two countries to 'work together on developing their massive oil reserves'. As per an executive order signed by Trump on Thursday, a 19 per cent tariff will be imposed on imports from Pakistan. The US is one of Pakistan's top export destinations. India's arch-rival sold over US$5 billion worth of goods to the US last year and imported about US$2.1 billion. In June, Pakistan's army chief, Field Marshal Asim Munir, met with Trump at the White House. He offered Pakistan's support in such sectors as crypto and critical minerals. 'India is still an important partner for the United States and vice versa; a success on the trade talks would have been a strategic win, especially under the complex regional circumstances, but all is not lost yet,' according to Farwa Aamer, director of South Asia Initiatives at the Asia Society Policy Institute. New Delhi is 'cautious but committed', she said. 'As deals come through with its neighbours and competitors, it may just provide it enough impetus to make bold moves and accelerate progress on negotiations on a more comprehensive deal while weathering the temporary storm,' she said. - SOUTH CHINA MORNING POST

Malay Mail
33 minutes ago
- Malay Mail
Bursa eyes higher ground next week on US tariff boost, 13MP momentum
KUALA LUMPUR, Aug 2 — Bursa Malaysia is likely to trade higher next week, supported by improved investor sentiment following the reduction in United States (US) tariffs and the upcoming debate on the 13th Malaysia Plan (13MP) during the Parliamentary sitting beginning Aug 4. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research, Mohd Sedek Jantan, said the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade within the 1,545 to 1,555 range. He noted that export-oriented stocks are expected to lead the rebound, with technology counters poised to benefit benefit from both global supply chain repositioning and the country's ongoing digitalisation agenda. 'The 13MP unveiled by the Prime Minister Datuk Seri Anwar Ibrahim on Thursday anchors the medium-term policy around geoeconomic resilience, supply chain realignment, and digital transformation. 'Of particular note is the plan's emphasis on artificial intelligence, which reinforces our constructive view on the long-overdue re-rating of the technology sector,' he told Bernama. Mohd Sedek also noted that recent domestic data supports the case for recovery, highlighting the S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI), which rose for the third consecutive month—from 49.3 in June to 49.7 in July. 'While the index remains just below the expansion threshold, the steady improvement signals ongoing stabilisation in the manufacturing sector,' he said. Furthermore, Malaysian equities remain undervalued compared to regional peers as investors shift their focus to China's July trade data, which is due next Thursday. 'As such, we remain cautiously optimistic that foreign investors will return as net buyers, particularly as they look to diversify away from the overstretched US equity markets. On a weekly basis, the benchmark index eased 0.41 of-a-point to 1,533.35 on Friday from 1,533.76 a week earlier. The FBM Emas Index increased 18.51 points to 11,525.33, the FBMT 100 Index gained 15.91 points to 11,285.63, and the FBM Emas Shariah Index climbed 11.78 points to 11,540.76. The FBM 70 Index increased 106.305 points to 16,607.57 while the FBM ACE Index dropped 14.65 points to 4,624.37. By sector, the Financial Services Index put on 25.97 points to 17,480.2, the Energy Index went up 9.75 points to 749.60, while the Plantation Index decreased 63.82 points to 7,370.97. Weekly turnover expanded to 15.94 billion units worth RM11.88 billion from 11.92 billion units worth RM11.43 billion in the previous week. The Main Market volume swelled to 8.33 billion units valued at RM10.46 billion compared with 6.63 billion units valued at RM9.70 billion previously. Warrants turnover declined to 5.50 billion units worth RM859.03 million from 7.10 billion units worth RM1.15 billion in the preceding week. The ACE Market volume improved to 2.10 billion units valued at RM561.51 million versus 1.68 billion units valued at RM577.05 million a week ago. — Bernama