ASX set to edge up, Wall Street advances after US-Japan trade deal; $A stronger
The S&P 500 was 0.5 per cent higher, coming off its latest all-time high. The Dow Jones was up 431 points, or 1 per cent, in mid-afternoon trade, and the Nasdaq composite was 0.3 per cent higher. The Australian sharemarket is set to inch higher, with futures at 5.03am AEST pointing to a rise of 6 points, or 0.1 per cent, at the open. The ASX added 0.7 per cent on Wednesday.
The Australian dollar was 0.7 per cent higher at 66.01 US cents at 5.18am.
Stocks jumped even more in Tokyo, where the Nikkei 225 rallied 3.5 per cent after President Donald Trump announced a trade framework that would place a 15 per cent tax on imports coming from Japan. That's lower than the 25 per cent rate that Trump had earlier said would kick in on August 1.
'It's a sign of the times that markets would cheer 15 per cent tariffs,' said Brian Jacobsen, chief economist at Annex Wealth Management. 'A year ago, that level of tariffs would be shocking. Today, we breathe a sigh of relief.'
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Trump has proposed stiff taxes on imports from around the world, which carry the double-edged risk of driving up inflation for US households while slowing the economy. But many of Trump's tariffs are currently on pause, giving time to reach deals with other countries that could lower the tax rates. Trump also announced a trade agreement with the Philippines on Tuesday.
So far, the US economy has seemed to hold up OK despite the pressures on it. And tariffs already in place may be having less of an effect than expected, at least when it comes to the prices that US households are paying at the moment.
'The main lesson about tariffs so far is that passthrough to consumer prices is tracking somewhat lower than in 2019,' according to Goldman Sachs economist David Mericle.
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Sydney Morning Herald
20 minutes ago
- Sydney Morning Herald
EU and US agree trade deal with 15% tariffs for European exports
Frankfurt: The European Union has ended months of dispute with US President Donald Trump by accepting a deal that imposes 15 per cent tariffs on billions of dollars in exports, submitting to the terms out of concern he might otherwise punish Europe with higher penalties. The outcome appears set to lift prices for American consumers and hurt sales for European exporters, in the latest example of global brinksmanship as Trump forces tariffs on major economies in the hope of raising huge sums of revenue for the US government. In a surprise addition to the deal, the EU agreed to buy energy worth $US750 billion from the US over the years ahead – part of the bloc's broader objective of reducing reliance on Russian gas. Trump said the EU would also invest $US600 billion more in the US economy, echoing a vague investment pledge in a trade deal with Japan last week. The deal was unveiled in Scotland on Sunday during Trump's visit to his golf estates, as hundreds of protesters gathered to object to his visit, while supporters chanted his name outside some of his events. 'I think this is the biggest deal ever made,' Trump told reporters after he emerged from talks with European Commission President Ursula von der Leyen. European industries were divided on the trade dispute over recent weeks, with German car makers anxious to gain a deal because of the threat to their sales from even higher tariffs, while French industry canvassed retaliation against US demands. Von der Leyen confirmed the 15 per cent tariff applied 'across the board' and framed the outcome as a win for stability. 'We have a trade deal between the two largest economies in the world, and it's a big deal,' she said.
The Age
20 minutes ago
- The Age
EU and US agree trade deal with 15% tariffs for European exports
Frankfurt: The European Union has ended months of dispute with US President Donald Trump by accepting a deal that imposes 15 per cent tariffs on billions of dollars in exports, submitting to the terms out of concern he might otherwise punish Europe with higher penalties. The outcome appears set to lift prices for American consumers and hurt sales for European exporters, in the latest example of global brinksmanship as Trump forces tariffs on major economies in the hope of raising huge sums of revenue for the US government. In a surprise addition to the deal, the EU agreed to buy energy worth $US750 billion from the US over the years ahead – part of the bloc's broader objective of reducing reliance on Russian gas. Trump said the EU would also invest $US600 billion more in the US economy, echoing a vague investment pledge in a trade deal with Japan last week. The deal was unveiled in Scotland on Sunday during Trump's visit to his golf estates, as hundreds of protesters gathered to object to his visit, while supporters chanted his name outside some of his events. 'I think this is the biggest deal ever made,' Trump told reporters after he emerged from talks with European Commission President Ursula von der Leyen. European industries were divided on the trade dispute over recent weeks, with German car makers anxious to gain a deal because of the threat to their sales from even higher tariffs, while French industry canvassed retaliation against US demands. Von der Leyen confirmed the 15 per cent tariff applied 'across the board' and framed the outcome as a win for stability. 'We have a trade deal between the two largest economies in the world, and it's a big deal,' she said.
Sky News AU
20 minutes ago
- Sky News AU
US and European Union reach a trade deal
The United States and European Union have reached a trade deal. President Donald Trump and European Commission President Ursula Von Der Leyen finalised the deal during talks at one of Trump's golf courses in Scotland. The agreement will see a blanket 15 per cent tariff on all European goods imported into the US. Donald Trump says the deal will benefit both sides of the Atlantic.
