Stocks, dollar dip as Trump passes spending bill, trade deal deadline nears
The dollar also fell against major currencies, with U.S. markets already shut for the holiday-shortened week, as traders considered the impact of Trump's sweeping spending bill that is expected to add an estimated $3.4 trillion to the national debt.
The pan-European STOXX 600 index fell 0.5%, with banks, mining-related stocks and retailers among the top laggards.
U.S. S&P 500 futures edged down 0.6%, following a 0.8% overnight advance for the cash index to an all-time closing peak. Wall Street was closed on Friday for the Independence Day holiday.
Trump said Washington would start sending letters to countries on Friday specifying what tariff rates they would face on exports to the United States, a clear shift from earlier pledges to strike scores of individual deals before a July 9 deadline when tariffs could rise sharply.
Investors are "now just waiting for July 9", said Tony Sycamore, an analyst at IG, with the market's lack of optimism for trade deals responsible for some of the equity weakness in export-reliant Asia, particularly Japan and South Korea.
At the same time, investors cheered a surprisingly robust U.S. jobs report on Thursday, sending all three of the main U.S. equity indexes climbing in a shortened session.
"The U.S. economy is holding together better than most people expected, which suggests to me that markets can easily continue to do better ," Sycamore said.
Following Thursday's close, the House narrowly approved Trump's signature, 869-page bill, which averts the near-term prospect of a U.S. government default but adds trillions to the national debt to fuel spending on border security and the military.
TRADE THE KEY FOCUS IN ASIA
Trump said he expected "a couple" more trade agreements, after announcing a deal with Vietnam on Wednesday to add to framework agreements with China and Britain as the only successes so far.
U.S. Treasury Secretary Scott Bessent said earlier this week that a deal with India was close. However, progress on agreements with Japan and South Korea, once touted by the White House as likely to be among the earliest to be announced, appears to have broken down.
The U.S. dollar index had its worst first half since 1973 as Trump's chaotic roll-out of sweeping tariffs heightened concerns about the U.S. economy and the safety of Treasuries, but had rallied 0.4% on Thursday before retracing some of those gains on Friday.
As of 1430 GMT it was down 0.1% at 96.94.
The euro added 0.2% to $1.1778, while sterling held steady at $1.3662 as British assets steadied following investor fright over the last two days at a tearful appearance by Finance Minister Rachel Reeves in parliament on Wednesday.
The U.S. Treasury bond market was closed on Friday for the holiday, but 10-year yields rose 4.7 basis points to 4.34%, while the 2-year yield jumped 9.3 bps to 3.882%.
Gold firmed 0.4% to $3,336 per ounce, on track for a weekly gain as investors again sought refuge in safe-haven assets due to concerns over the U.S.'s fiscal position and tariffs.
Brent crude futures fell 57 cents to $68.23 a barrel, while U.S. West Texas Intermediate crude dropped 66 cents to $66.34, as Iran reaffirmed its commitment to nuclear non-proliferation.
This article was generated from an automated news agency feed without modifications to text.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
11 minutes ago
- Mint
Donald Trump says ‘first tariff letters' to be sent at 9.30 PM IST today
US President Donald Trump confirmed that he would start sending other countries the first letters on tariffs and trade deals on Monday, ahead of a deadline for the paused levies to take effect. 'I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th,' Trump said on his Truth Social network Sunday. So far, Washington has finalized deals only with the United Kingdom and Vietnam, while reaching a temporary agreement with China to reduce exceptionally high tariffs on each other's goods. Trump said he planned to send '12, maybe 15' tariff notification letters on Monday, PTI reported. He added, 'I think we'll have most countries done by July 9, either a letter or a deal,' noting that some agreements had already been reached. US Commerce Secretary Howard Lutnick confirmed that the new tariffs would take effect on August 1 but rejected the notion that the date was a delay tactic, AFP reported. Also Read: Donald Trump's tariff letters to hit 12 countries as trade deadline chaos looms 'The President is setting the rates and the deals right now,' Lutnick said. Senior advisor Bessent also dismissed suggestions that August 1 marked a new deadline. 'It's not a new deadline. We are saying this is when it's happening. If you want to speed things up, go ahead. If you want to stick with the old rates, that's your decision,' he explained, as reported by AFP. Bessent noted that the strategy was to apply 'maximum pressure,' citing the European Union as an example of a negotiating partner now making significant progress after initial reluctance. Still, unease persisted among several countries. Japan's Prime Minister Shigeru Ishiba stated on Sunday that he 'won't easily compromise' in trade talks with Washington. Meanwhile, BRICS leaders representing fast-growing economies such as Brazil, Russia, India, and China meeting in Rio de Janeiro expressed 'serious concerns' over what they described as 'indiscriminate' and potentially illegal import tariffs, warning of their impact on global trade. I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th. In response, Trump lashed out at BRICS, warning, 'Any country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% tariff. There will be no exceptions to this policy.'
United News of India
18 minutes ago
- United News of India
Musk is "completely off the rails" with his third party idea: Trump
Washington, July 7 (UNI) The differences between Donald Trump and Elon Musk have widened further after the US President called Tesla chief's plans to form a new political party "ridiculous" and said that he is becoming a "TRAIN WRECK". In a post on his Truth Social platform, the Republican said the Tesla and SpaceX boss was becoming a "TRAIN WRECK" and that a third political party "never succeeds" in the US, referring to Mr Musk's "America Party". Musk announcing the formation of his own political party, which he called "America Party" is being seen as as the "latest nail in the coffin". Trump emphasized that a third party will just add to more confusion and moreover stating that the idea of a three party system has never worked in the United States. "I am saddened to watch Elon Musk go completely 'off the rails,' essentially becoming a TRAIN WRECK over the past five weeks. He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States - The System seems not designed for them," President Trump said. Defending two-party system in the country, Trump told White House reporters, "I think it's ridiculous to start a third party. he can have fun with it. We have a tremendous success with the Republican Party. The Democrats have lost their way, but it's always been a two-party system, and I think starting a third party just adds to the confusion." He said the one thing third parties are good for is the creation of "complete and total DISRUPTION and CHAOS, and we have enough of that with the Radical Left Democrats, who have lost their confidence and their minds!" In response to the businessman's criticism of the bill, Trump said that without subsidies he would have to "close up shop and head back home to South Africa." In his Truth Social post, President Trump also slammed Musk for opposing his "one big beautiful bill", which was signed into law last week. "Republicans, on the other hand, are a smooth running 'machine,' that just passed the biggest Bill of its kind in the History of our Country. It is a Great Bill but, unfortunately for Elon, it eliminates the ridiculous Electric Vehicle (EV) Mandate, which would have forced everyone to buy an Electric Car in a short period of time. I have been strongly opposed to that from the very beginning. People are now allowed to buy whatever they want - Gasoline Powered, Hybrids (which are doing very well), or New Technologies as they come about - No more EV Mandate," Trump wrote in his post. Musk said his new party would look to unseat Republican lawmakers in Congress in next year's midterm elections who backed the sweeping measure known as the "big, beautiful bill." Trump in his social media comments also said it was "inappropriate" to have named Musk ally Jared Isaacman as NASA administrator considering Musk's business with the space agency. "Additionally, Elon asked that one of his close friends run NASA and, while I thought his friend was very good, I was surprised to learn that he was a blue blooded Democrat, who had never contributed to a Republican before. Elon probably was, also. I also thought it inappropriate that a very close friend of Elon, who was in the Space Business, run NASA, when NASA is such a big part of Elon's corporate life. My Number One charge is to protect the American Public!," the US president wrote in his post. UNI AAB GNK 1056
Time of India
20 minutes ago
- Time of India
Trump letters and who's talking: State of play as tariff deadline nears
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel U.S. President Donald Trump said on Sunday his administration is close to finalizing several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, with the higher rates scheduled to take effect on August promises to work on 90 deals in 90 days, Trump and his team have been able to complete only a limited deal with Britain and a not well-defined agreement with Vietnam. A long-promised deal with India has remained the state of play for several U.S. trading partners facing deadlines this week:U.S. officials said they were making good progress with the 27-member European Union, after its top trade negotiator Maros Sefcovic met with officials in Washington last week. EU diplomats said talks were continuing but they had not achieved a breakthrough as of EU diplomat said the bloc's regulations on social media and other technology companies, stricter than those in the U.S., were not up for negotiation, and a 17% tariff proposed by the U.S. side on agriculture and food exports remained a big officials have said they are open to a U.S. deal that would apply a universal 10% tariff on many of its exports, but want to secure exemptions from sectoral tariffs already in place or planned for pharmaceuticals, alcohol, semiconductors, and commercial aircraft, Bloomberg EU is also pushing for U.S. quotas and exemptions to effectively ease Washington's 25% tariff on automobiles and auto parts, as well as its 50% tariff on steel and aluminum, the report said, citing people familiar with the says it is continuing to seek an agreement with the U.S. while defending its national interest. Japan's tariff negotiator Ryosei Akazawa held "in-depth exchanges" over the phone with U.S. Commerce Secretary Howard Lutnick on Thursday and Saturday, the Japanese government discussions came after Trump this week hammered Japan over what he said was Tokyo's reluctance to import U.S.-grown rice, and accusing Japan of engaging in "unfair" autos trade. He has also called on Japan to import more U.S. Monday, Trump said Japan could be among those receiving a tariff letter, and suggested it could face duties of up to 35%.Trump has long promised a trade deal with India, but talks have stalled on disagreements over U.S. tariffs on auto components, steel and agricultural which is facing 26% tariffs on its exports to the U.S., has signaled it is ready to slash its high tariff rates for the U.S. but has not conceded on Washington's demands for opening up the agriculture and dairy Friday, New Delhi also proposed retaliatory duties against the U.S. at the World Trade Organization , saying Washington's separate 25% tariff on automobiles and some auto parts would affect $2.89 billion of India's has offered to cut duties on key imports from the United States to "near zero" and to buy $500 million worth of U.S. wheat as part of its tariff talks to avert a 32% tariff rate. State-owned carrier Garuda Indonesia also plans to buy more Boeing planes as part of a $34 billion pact with U.S. partners due to be signed this by some other countries of excessive red tape, Indonesia eased import licensing requirements for some goods and waived import restrictions on plastics, chemical products and other industrial raw materials on June 30, a goodwill gesture ahead of the July 9 deadline. Indonesia has also invited the U.S. to jointly invest in a state-owned Indonesian minerals project as part of its tariff frequent rounds of talks and some preliminary agreements, South Korea had said it would seek an extension on Trump's July 9 deadline, although talks will continue this Sung-lac, President Lee Jae Myung's national security adviser, plans to visit Washington during July 6-8 to discuss a range of bilateral issues. The country's trade minister, Yeo Han-koo was also due to meet with U.S. Trade Representative Jamieson Greer and other U.S. Korea already imposes virtually no tariffs on U.S. imported goods under a free-trade agreement, and so the U.S. has focused on other issues, including foreign exchange rates and defense costs. Trump often complains about the cost-sharing arrangement for the 28,500 U.S. troops stationed in South is making a last-ditch effort to avert a 36% tariff by offering greater market access for U.S. farm and industrial goods, along with increased purchases of U.S. energy and Boeing jets, Finance Minister Pichai Chunhavajira told Bloomberg News on proposals have included reducing its own tariffs, purchasing more American goods and increasing initial proposal included measures to enhance market access for U.S. exports and tackle transshipment violations, as well as Thai investment that would create U.S. jobs. Bangkok said also pledged to import more U.S. natural gas and cut tariffs on imports of corn from the United is exploring what concessions it can make to avert a 31% tariff rate on goods it ships to the U.S., including granting the U.S. greater market access for produce like seafood and citrus as home to pharmaceutical giants Roche and Novartis, both big U.S. investors, Switzerland also wants assurances that it can avert pharmaceutical tariffs that Trump has threatened to impose at a later date.
