EU Races to Secure US Trade Deal; Japanese PM Suffers Election Setback
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The Hill
13 minutes ago
- The Hill
Asian shares mostly slip as focus shifts to US talks with China
TOKYO (AP) — Asian shares mostly declined Tuesday as some of the euphoria fizzled out over a tariff deal with Japan as proposed by President Donald Trump, which was followed by a similar deal with the European Union. Japan's benchmark Nikkei 225 slipped nearly 0.7% to 40,725.23. Australia's S&P/ASX 200 lost 0.3% to 8,670.50. South Korea's Kospi was little changed after reversing earlier losses, edging less than 0.1% higher to 3,212.59. Hong Kong's Hang Seng dropped 1.1% to 25,276.36, while the Shanghai Composite shed 0.3% to 3,586.93. Analysts said markets were watching for the latest from Trump, which are now focused on the talks with China. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting in Sweden. Bessent has said the negotiations will likely lead to an extension of current tariff levels. There was no significant new information after the first day of talks. 'Aside from addressing economic imbalances, tariffs are also now well entrenched in the geo-political arena,' Tan Boon Heng of the Asia & Oceania Treasury Department at Mizuho Bank said in a commentary. Last week, Trump announced a trade framework, placing a 15% tax on goods imported from Japan, a level far lower than the earlier 25% rate that the president had indicated. Trump also said Japan would invest $550 billion into the U.S. and open up to U.S. autos and rice. Details are still unclear, but the accord set off some momentary relief. U.S. stock indexes drifted through a quiet Monday after the United States agreed to tax cars and other products coming from the European Union at a 15% rate, lower than Trump had threatened. Many details of the trade deal are still to be worked out, and Wall Street is heading into a week full of potential flashpoints that could shake markets, including an interest rate decision Wednesday by the Federal Reserve. The widespread expectation on Wall Street is that Fed officials will wait until September to resume cutting interest rates, though a couple of Trump's appointees could dissent in the vote. The Fed has been on hold with interest rates this year since cutting them several times at the end of 2024. On Wall Street, the S&P 500 was nearly flat, edging up by less than 0.1% to 6,389.77 and setting an all-time high for a sixth straight day. The Dow Jones Industrial Average dipped 0.1% to 44,837.56, while the Nasdaq composite added 0.3% to its own record, closing at 21,178.58. Tesla rose 3% after its CEO, Elon Musk, said it had signed a deal with Samsung Electronics that could be worth more than $16.5 billion to provide computer chips for the electric-vehicle company. Samsung's stock in South Korea jumped 6.8%. Other companies in the chip and artificial-intelligence industries were strong, continuing their run from last week after Alphabet said it was increasing its spending on AI chips and other investments to $85 billion this year. Chip company Advanced Micro Devices rose 4.3%, and server-maker Super Micro Computer climbed 10.2%. But an 8.3% drop for Revvity helped to keep the market in check. The company in the life sciences and diagnostics businesses reported a stronger profit for the latest quarter than Wall Street expected, but its forecast for full year profit disappointed analysts. Companies are broadly under pressure to deliver solid growth in profits following big jumps in their stock prices the last few months. Much of the gain was due to hopes that Trump would walk back some of his stiff proposed tariffs, and critics say the U.S. stock market looks expensive unless companies will produce bigger profits. Hundreds of U.S. companies are lined up to report how much profit they made during the spring, with nearly a third of the businesses in the S&P 500 index scheduled to deliver updates. In energy trading, benchmark U.S. crude inched up 1 cent to $66.72 a barrel. Brent crude, the international standard, added 6 cents to $70.10 a barrel. In currency trading, the U.S. dollar rose to 148.56 Japanse yen from 148.54 yen. The euro cost $1.1600, up from $1.1593.
Yahoo
42 minutes ago
- Yahoo
Stock markets fall as trade relief fades, eyes on data and earnings
Stocks fell Tuesday as the positivity sparked by recent US trade deals dissipated, with investors now focused on the release of key data and earnings, and the Federal Reserve's next policy meeting. While Donald Trump's agreement with the European Union on Sunday was seen as better than a tariff standoff, observers pointed out that the US president's 15 percent levies -- with none on American goods -- were still much higher than before. The pact, which followed a similar one with Japan last week, still left many worried about the economic consequences, with auto companies particularly worried. "The 15 percent blanket levy on EU and Japanese imports may have helped markets sidestep a cliff, but it's no free pass," said Stephen Innes at SPI Asset Management. "With the average effective US tariff rate now sitting at 18.2 percent... the barrier to global trade remains significant. The higher tail risk didn't detonate, but its potential impact on the global economy hasn't disappeared either." And National Australia Bank's Ray Attrill added: "It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term (through 2025) implications for eurozone growth are concerned." Traders are also keeping an eye on US talks with other major economies, including India and South Korea. After a tepid day on Wall Street -- which still saw the S&P and Nasdaq hit records -- Asia turned negative. Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Wellington, Taipei, Manila and Jakarta were all in the red. The euro held its losses from Monday, having taken a hit from worries about the effects of the trade deal on the eurozone. The first of two days of negotiations between top US and Chinese officials in Stockholm concluded Monday with no details released, though there are hopes they will agree to extend a 90-day truce that ends on August 12. The two imposed triple-digit tariffs on each other earlier this year in a tit-for-tat escalation, but then walked them back under the temporary agreement reached in May. Investors are also looking ahead to a busy few days that includes earnings from tech titans Apple, Microsoft, Meta and Amazon, as well as data on US economic growth and jobs creation. That all comes as the Fed concludes its policy meeting amid increasing pressure from Trump to slash rates, even with inflation staying stubbornly high. While it is expected to stand pat on borrowing costs, its post-meeting statement and comments from boss Jerome Powell will be pored over for clues about its plans for the second half of the year in light of the tariffs. Oil prices extended Monday's rally after Trump shortened a deadline for Russia to end its war in Ukraine to August 7 or 9, following which he vowed to sanction countries buying its crude. - Key figures at around 0230 GMT - Tokyo - Nikkei 225: DOWN 0.9 percent at 40,623.32 (break) Hong Kong - Hang Seng Index: DOWN 1.1 percent at 25,290.03 Shanghai - Composite: DOWN 0.1 percent at 3,595.46 Euro/dollar: DOWN at $1.1592 from $1.1597 on Monday Pound/dollar: DOWN at $1.3354 from $1.3356 Dollar/yen: UP at 148.61 yen from 148.52 yen Euro/pound: UP at 86.81 pence from 86.80 pence West Texas Intermediate: FLAT at $66.72 per barrel Brent North Sea Crude: UP 0.1 percent at $70.11 per barrel New York - Dow: DOWN 0.1 percent at 44,837.56 (close) London - FTSE 100: DOWN 0.4 percent at 9,081.44 (close) dan/lb Sign in to access your portfolio
New York Post
43 minutes ago
- New York Post
CNBC's Jim Cramer drops F-bomb live on air while marveling over Trump's ‘great economy'
CNBC host Jim Cramer's excitement about President Donald Trump's latest trade deal got the better of him on Monday. Cramer blurted out 'What the f—!' during a segment of CNBC's 'Squawk on The Street' after seeing a graphic detailing the United States' recent trade deals with various countries, including a major trade deal made with the European Union on Sunday. 'Our biggest problem is we have so much growth that the Fed won't cut. What the f—!' the co-host exclaimed, regretting it as soon as he said it. 'Oh my God! I'm so sorry,' Cramer said. 'I'm so sorry. I take it right back. I take it right back. That was bad.' His co-hosts David Faber and Carl Quintanilla reassured their colleague it wasn't a big deal. 'It's OK. It's OK. It's OK!,' Faber told Cramer as he kept apologizing. 'We're in the moment. It's just the way we talk.' 4 Cramer blurted out 'What the f—!' during a segment of CNBC's 'Squawk on The Street'. MSNBC 'Real people doing live TV,' Quintanilla added. Cramer continued: 'I'm done. I think I'm out of here.' 'No, you're fine,' Faber replied, laughing. 'You're absolutely fine. You want me to say one?' Cramer said, 'No, I just feel like, enough with the rate cut and the economy's booming.' 4 'Oh my God! I'm so sorry,' Cramer said. 'I'm so sorry. I take it right back. I take it right back. That was bad.' REUTERS The anchor also apologized on X following the appearance. He wrote, 'I apologize to all viewers. I was too effusive in making my point about the great economy we have..' Trump averted a trade war and notched another win on Sunday. The president and European Commission President Ursula von der Leyen announced a trade deal between the U.S. and the European Union that set a 15-percent tariff on most EU goods imported into the U.S. 4 His co-hosts David Faber and Carl Quintanilla reassured their colleague it wasn't a big deal. MSNBC Von der Leyen said Europe will also purchase $150 billion worth of U.S. energy as part of the deal, in addition to making $600 billion in other investments. The agreement comes days after Trump secured a $550 billion trade deal with Japan. 'We just completed a massive Deal with Japan, perhaps the largest Deal ever made,' Trump wrote on Truth Social. 'Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.' 4 The agreement comes days after Trump secured a $550 billion trade deal with Japan. via REUTERS Some prominent critics of the president have admitted that they were wrong about the damage Trump's tariffs would do to the economy. Most recently, HBO host Bill Maher admitted on his 'Club Random' podcast that his predictions were incorrect. 'Just to take an example, tariffs. Now I remember that I, along with probably most people, was saying at the beginning, 'Oh, you know, by the 4th of July… the economy was going to be tanked by then,' and I was kind of like, 'Well, that seems right to me,'' he told guest, liberal pundit Brian Tyler Cohen. 'But, that didn't happen,' Maher said. 'It could happen tomorrow. I'm just saying, that's reality, so let's work first from the reality of that, not from 'I just hate Donald Trump,' because that's boring and doesn't get us anywhere and leads you to dishonesty.'
