Global markets fall on latest tariff developments
Ahead, JP Morgan, Citigroup and Wells Fargo report earnings Tuesday followed by Goldman Sachs & Morgan Stanley on Wednesday. U.S. inflation data for June are released on Tuesday with inflation prints also due this week from Canada and the eurozone.
–U.S. stock futures for the S&P, Dow Jones Industrial Average and Nasdaq were all down around 0.5% early in European hours.
–European bourses started the day down between 0.6% and 0.8%, while the U.K.'s FTSE 100 bucked the trend, last trading up around 0.2%. At the close in Asia it was another mixed bag; China's trade sector received a boost from the recent pause in reciprocal tariffs between the U.S. and China. That helped push mainland stock markets up, while Japan's Nikkei 225 index fell 0.3%.
–The U.S. dollar rose to a nearly three-week high against a basket of currencies, as investors weigh how Trump's trade tactics may play out. 'If Trump actually manages to extract significant concessions from U.S. trading partners by threatening them with tariffs, this could be seen as positive for the dollar," said Commerzbank's Thu Lan Nguyen. The DXY dollar index hit a high of 98.100 in recent trading. Both the euro and Mexican peso were trading lower against the dollar.
–Bitcoin hit yet another record high above $121,000 amid higher institutional interest as confidence in sovereign currencies wanes. Key crypto legislation in the U.S. this week could further smooth barriers to institutional participation and add regulatory certainty.
–Inflation and trade-policy concerns continued to pose a headwind for U.S. Treasurys, amid a continued widening of the gap between short- and long-dated Treasury yields. The three-year Treasury yield was last down 1.6 basis points to 3.868% while the 30-year yield was up 1.5 basis points at 4.972%, according to Tradeweb.
–That gap is also widening in Japan's bond market ahead of the country's Upper House election on July 20 and amid concerns over fiscal spending. The two-year JGB yield earlier was up 1.5 basis points at 0.775%, while the 30-year yield climbed 10.5 bps to 3.145%.
—Oil prices were up as investors awaited further details on President Trump's 'major statement" on Russia later on Monday after he voiced frustration with Russian leader Vladimir Putin over the war in Ukraine. Brent crude and WTI were both up 0.5% to $70.69 and $68.80 a barrel, respectively, with potential further sanctions on Russia having the potential to shift the outlook.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
27 minutes ago
- Mint
Investors eye possible US-Europe trade deal as deadline looms
NEW YORK, July 26 (Reuters) - Investors are hopeful a potential trade deal between the U.S. and European Union could bring more certainty to markets ahead of next Friday's tariffs deadline. European Commission President Ursula von der Leyen was set to meet U.S. President Donald Trump on Sunday in Scotland after EU officials and diplomats said they expected to reach a framework deal this weekend. Trump on Friday said there was a 50-50 chance or perhaps less that the U.S. would reach a trade agreement with the EU. Trade tensions between the U.S. and Europe may have provided some investors with a rationale to be cautious, said Sameer Samana, head of global equities and real assets at the Wells Fargo Investment Institute. "It's one of our largest trading relationships... So if that last piece falls into place, then you've probably got at the margin more people that have to get back in the markets," Samana said. "It's been a source of uncertainty that will go away." A deal would likely include a 15% baseline tariff on all EU goods entering the U.S. and probably a 50% tariff on European steel and aluminum, the officials and diplomats said. Optimism over easing trade tensions broadly has helped push U.S. stocks to record highs. Trump's April 2 "Liberation Day" announcement of sweeping global tariffs sent stocks plunging in the immediate aftermath, due to spiking fears about a recession that have since faded. Still, investors have been bracing for increased volatility heading into August 1, which the U.S. has set as a deadline for raising levies on a broad swath of trading partners. The EU is facing U.S. tariffs on more than 70% of its exports - 50% on steel and aluminum, 25% on cars and car parts and a 10% levy on most other EU goods, which Trump has said he would hike to 30% on August 1. Hopes for a deal with Europe rose after Trump struck a trade agreement with Japan earlier in the week. "The deal with Japan and the likely one soon with the EU are especially important given both are major U.S. trading partners, together accounting for about a quarter of all goods imports," analysts at Capital Economics said in a note on Friday. In the agreement with Japan, the country's auto sector, which accounts for more than a quarter of its U.S. exports, will see existing tariffs cut to 15% from levies totaling 27.5% previously. An agreement that also lowers EU auto tariffs to 15% "would be no small deal" for the region as well, as about 10% of its shipments to the U.S. are in the same category, Capital Economics said. Investors over the weekend were also watching for developments on trade between the U.S. and China. Officials from the two countries plan to meet in Stockholm next week to discuss extending an August 12 deadline for negotiating a deal. (Reporting by Lewis Krauskopf; Editing by Alden Bentley and Edward Tobin)
Economic Times
27 minutes ago
- Economic Times
S&P 500, Nasdaq, Dow Jones climb to record high. Check top stocks
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads FAQs U.S. stocks capped another strong week with more records on Friday. S&P 500 rose 0.4% to set an all-time high, the fifth time it did so this week. The Dow Jones Industrial Average climbed 208 points, or 0.5%, and the Nasdaq composite added 0.2% to its own record set the day before. S&P 500 rose 25.29 points to 6,388.64. The Dow Jones Industrial Average climbed 208.01 to 44,901.92, and the Nasdaq composite added 50.36 to 21, the company behind Ugg boots and Hoka shoes, jumped 11.3% after reporting stronger profit and revenue for the spring than analysts expected. Its growth was particularly strong outside the United States, where revenue soared nearly 50%.Edwards Lifesciences rose 5.5% after likewise topping Wall Street 's expectations for profit in the latest quarter. It said it saw strength across all its product groups, and it expects profit for the full year to come in at the high end of the forecasted range it had given helped offset a drop of 8.5% for Intel, which fell after reporting a loss for the latest quarter, when analysts were looking for a profit. The struggling chipmaker also said it would cut thousands of jobs and eliminate other expenses as it tries to turn around its fortunes. Intel, which helped launch Silicon Valley as the U.S. technology hub, has fallen behind rivals like Nvidia and Advanced Micro Devices while demand for artificial intelligence chips pressure is on companies to deliver solid growth in profits in order to justify big gains for their stock prices, which have rallied to record after record in recent weeks. Wall Street has zoomed higher on hopes that President Donald Trump will reach trade deals with other countries that will lower his stiff proposed tariffs, along with the risk that they could cause a recession and drive up inflation. Trump has recently announced deals with Japan and the Philippines, and the next big deadline is looming on Friday, August potential trade talks, next week will also feature a meeting by the Federal Reserve on interest rates. Trump again on Thursday lobbied the Fed to cut rates, which he has implied could save the U.S. government money on its debt Chair Jerome Powell, though, has continued to insist he wants to wait for more data about how Trump's tariffs affect the economy and inflation before the Fed makes its next move. Lower interest rates can help goose the economy, but they can also give inflation more rates also may not lower the U.S. government's costs to borrow money, if the bond market feels they could send inflation higher in the future. In that case, lower short-term rates brought by the Fed could actually have the opposite effect and make it more expensive for Washington to borrow money over the long widespread expectation on Wall Street is that the Fed will wait until September to resume cutting interest the bond market, Treasury yields held relatively steady following Trump's latest attempt to push Powell to cut interest rates. Trump also seemed to back off on threats to fire the Fed's chair.A1. Top three indexes of US Stock Market are S&P 500, Dow Jones, Nasdaq.A2. Chairman of Federal Reserve is Jerome Powell.
Hindustan Times
34 minutes ago
- Hindustan Times
Trade on agenda as Trump lands in Scotland for diplomacy and golf
US President Donald Trump landed in Scotland on Friday for a five-day visit set to mix diplomacy, business and leisure, as a huge UK security operation swung into place amid planned protests near his family-owned golf resorts. HT Image The president, whose mother was born in Scotland, will split his time between two seaside golf courses bearing his name, in Turnberry on the southwestern coast and Aberdeen in the northeast. Air Force One, carrying the president and White House staff, touched down at Prestwick Airport near Glasgow shortly before 8:30 pm (1930 GMT). Police officers lined surrounding streets and several hundred curious Scots came out hoping for a glimpse of the US leader as he made his way to Turnberry. Trump has no public events scheduled for Saturday and is expected to play golf at his picturesque resort, before meeting EU chief Ursula von der Leyen on Sunday for trade talks. Trump is also due to meet UK Prime Minister Keir Starmer during the trip. "We're going to do a little celebrating together, because we got along very well," Trump told reporters as he left the White House Friday, calling Starmer "a good guy" doing "a very good job". He said they would discuss "fine tuning" the bilateral trade deal struck in May, and would "maybe even improve it". But the unpredictable American leader appeared unwilling to cede to a UK request for reduced steel and aluminium tariffs. Trump has exempted British exports from blanket 50 percent tariffs on both metals, but the fate of that carve-out remains unclear. "If I do it for one, I have to do it for all," Trump told reporters, when asked if he had any "wiggle room" for the UK on the issue. The international outcry over the conflict in Gaza may also be on the agenda, as Starmer faces growing pressure to follow French President Emmanuel Macron and announce that Britain will also recognise a Palestinian state. Trump is due to return to the UK in September for a state visit -- his second -- at the invitation of King Charles III, which promises to be lavish. During a 2023 visit, Trump said he felt at home in Scotland, where his mother Mary Anne MacLeod grew up on the remote Isle of Lewis before emigrating to the United States at age 18. "He's original, he does things the way he wants to. I think a lot of our politicians could take a good leaf out of his book," 45-year-old Trump fan Lisa Hart told AFP as she waited to see his plane touch down. But the affection between Trump and Scotland is not always mutual. Residents, environmentalists and elected officials have voiced discontent over the Trump family's construction of a new golf course, which he is expected to open before he departs the UK on Tuesday. Police Scotland, which is bracing for mass protests in Edinburgh and Aberdeen as well as close to Trump's golf courses, have said there will be a "significant operation across the country over many days". Scottish First Minister John Swinney, who will also meet Trump during the visit, said the nation "shares a strong friendship with the United States that goes back centuries". Trump has also stepped into the sensitive debate in the UK about green energy and reaching net zero, with Aberdeen being the heart of Scotland's oil industry. In May, he wrote on his Truth Social platform that the UK should "stop with the costly and unsightly windmills" as he urged incentivising drilling for oil in the North Sea. The trip to Scotland puts physical distance between Trump and the latest twists in the case of convicted sex offender Jeffrey Epstein, the wealthy financier accused of sex trafficking who died in prison in 2019 before facing trial. In his heyday, Epstein was friends with Trump and others in the New York jet-set, but the president is now facing backlash from his own MAGA supporters who demand access to the Epstein case files. Many support a conspiracy theory under which "deep state" elites protected rich and famous people who took part in an Epstein sex ring. But Trump is urging his supporters to move on from the case. The Wall Street Journal, which published an article detailing longstanding links between Trump and the sex offender, is being punished by the White House. Its reporting team plans to travel to Scotland on their own and join the White House press pool. But it has now been denied a seat on Air Force One for the flight back home. While Trump's family has undertaken many development projects worldwide, the president no longer legally controls the family holdings. But opponents and watchdog groups have accused him of having many conflicts of interest and using his position as US president to promote private family investments, especially abroad. aue-jkb-jj-pdh/dc
