S&P 500, Nasdaq open at record high after inflation data; focus on bank earnings
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U.S. stocks are drifting mostly higher following some mixed data on inflation and profits at some of the biggest U.S. banks. The S&P 500 was up 0.4% in early trading Tuesday and sitting a bit above its all-time high set on Thursday. The Dow Jones Industrial Average was down 42 points, and the Nasdaq composite was up 0.8%.Nvidia helped lead tech stocks higher after the chip giant won approval from the U.S. government to sell its advanced H20 computer chips used for artificial intelligence to China. Citigroup rose after reporting profits that beat forecasts.Shares were mostly higher in Europe on Monday following gains in Asian markets despite lingering worries about President Donald Trump's latest updates to his tariffs.Shares in tech giant Nvidia jumped 5.2% in pre-market trading after its CEO said the Trump administration will let it sell to China its advanced H20 chips used to develop artificial technology.Germany's DAX gained 0.3% to 24,222.95 and the CAC 40 in Paris was up less than 0.1% at 7,812.14. Britain's FTSE 100 was nearly unchanged at 8,996.90.The future for the S&P 500 gained 0.4% while that for the Dow Jones Industrial Average slipped 0.1%.In Asian trading, Japan's benchmark Nikkei 225 rose 0.6% to finish at 39,678.02.A nationwide election for the upper house of Japan's Parliament, set for Sunday, also added to the wait-and-see attitude among market players. Analysts say the ruling pro-business Liberal Democratic Party may face an uphill battle and will likely need coalition partners, including possibly new ones, to keep its grip on power.Australia's S&P/ASX 200 added 0.7% to 8,630.30. South Korea's Kospi edged up 0.4% to 3,215.28. Hong Kong's Hang Seng rose 1.6% to 24,590.12, while the Shanghai Composite dipped 0.4% to 3,505.00, after the government reported that China's economy slowed in the last quarter as Trump's trade war escalated.Tuesday's data showed the economy expanded at a robust 5.2% annual pace, compared with 5.4% annual growth in January-March. In quarterly terms, the world's second-largest economy expanded by 1.1%, according to government data.Despite worries about the damage Trump's tariffs may have on the region's exporters, speculation continues that he may ultimately back down on them. They don't take effect until Aug. 1, which leaves time for more negotiations.On Wall Street Monday, the S&P 500 edged up by 0.1%, the Dow added 0.2% and the Nasdaq composite rose 0.3%.If Trump were to enact all his proposed tariffs on Aug. 1, they would raise the risk of a recession. That would not only hurt American consumers but also raise the pressure on the U.S. government's debt level relative to the economy's size, particularly after Washington approved big tax cuts that will add to the deficit.For the time being, the uncertainty around tariffs could help keep markets unsteady. This upcoming week has several potential flashpoints that could shake things up.The latest reading on inflation across the U.S. comes Tuesday, with economists expecting it to show inflation accelerated to 2.6% last month from 2.4% in May.Companies are also lining up to report how they performed during the spring. JPMorgan Chase and several other huge banks will report their latest quarterly results Tuesday, followed by Johnson & Johnson on Wednesday and PepsiCo on Thursday.Fastenal, a distributor of industrial and construction supplies, reported Monday a stronger profit for the latest quarter than analysts expected. Its stock rose 2.9%, though it also said that market conditions remain sluggish.Shares of Kenvue rose 2.3% in shaky trading after the former division of Johnson & Johnson said CEO Thibaut Mongon is stepping down. Kenvue, the maker of Listerine and Band-Aid brands, is in the midst of a strategic review of its options, 'including ways to simplify the company's portfolio and how it operates,' according to board chair Larry Merlo.Some of the biggest moves in financial markets were for crypto, where bitcoin continues to set records. This upcoming week is Crypto Week in Washington, where Congress will consider several bills to 'make America the crypto capital of the world.'In energy trading, benchmark U.S. crude fell 18 cents to $66.80 a barrel. Brent crude, the international standard, declined 9 cents to $69.12 a barrel.In currency trading, the U.S. dollar inched up to 147.73 Japanese yen from 147.72 yen. The euro cost $1.1685, up from $1.1666.
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Hindustan Times
19 minutes ago
- Hindustan Times
In new deal, Trump keeps Indonesia tariff at 19%; country to buy 50 Boeing jets
A week after announcing a 32 per cent tariff on Indonesia, US President Donald Trump on Tuesday announced a new deal with the Southeast Asian country, saying that he would impose a 19 per cent tariff on goods from Jakarta. US President Donald Trump said he finalised the deal after speaking with his Indonesia counterpart Prabowo Subianto.(Reuters) Taking to Truth Social, Trump said, "This morning I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto. This landmark Deal opens up Indonesia's ENTIRE MARKET to the United States for the first time in History." US-Indonesia trade deal He said that as part of the deal, Indonesia has committed to purchasing US energy worth $15 billion and American agricultural products amounting to $4.5 billion. The US President added that Indonesia will also purchase 50 Boeing jets, many of which would be the 777 aircraft model. "For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people," he added. Since the US and Indonesia reached a trade deal before the August 1 deadline, the Southeast Asian country will now pay a 19 per cent tariff on the goods they export to America. "Indonesia will pay the United States a 19% Tariff on all Goods they export to us, while U.S. Exports to Indonesia are to be Tariff and Non Tariff Barrier FREE. If there is any Transshipment from a higher Tariff Country, then that Tariff will be added on to the Tariff that Indonesia is paying," the US President posted. He thanked Indonesians for their "friendship and commitment" to balancing their trade deficit. "We will keep DELIVERING for the American people, and the People of Indonesia," Trump added. This deal with the relatively minor trading partner of the US is among the handful of agreements struck so far by the Trump administration ahead of the August 1 deadline for tariffs on most US imports to rise again. While detailed information about the deal is yet to be released, the rough outline provided by Trump reportedly resembled the framework agreement struck with Vietnam in recent weeks. Indonesia's total trade deal with the US, just under $40 billion in 2024, does not rank in the top 15. However, it has been growing. Last year, US exports to Indonesia rose to 3.7 per cent, while imports were up by 4.8 per cent. According to the US Census Bureau data on the International Trade Centre's TradeMap tool, the top US import categories from Indonesia last year were palm oil, electronics equipment, including data routers and switches, footwear, car tires, natural rubber and frozen shrimp. Susiwijono Moegiarso, a senior official with Indonesia's Coordinating Ministry for Economic Affairs, told Reuters, "We are preparing a joint statement between US and Indonesia that will explain the size of reciprocal tariff for Indonesia including the tariff deal, non-tariff and commercial arrangements. We will inform (the public) soon." ALSO READ | Donald Trump releases new tariff letters for Mexico, European Union The August 1 deadline on Trump's sweeping reciprocal tariffs gives the targeted countries time to crack a deal with Washington that could lower the threatened levies. So far, framework agreements have been reached with Vietnam and the United Kingdom, and an interim deal has been made with China while negotiations continue to take place between Beijing and Washington. Additionally, Trump said that negotiations with India were also moving in a similar direction. "India basically is working along that same line. We're going to have access to India. And you have to understand, we had no access into any of these countries. Our people couldn't go in. And now we're getting access because of what we're doing with the tariffs," he said.
Mint
32 minutes ago
- Mint
Trump wields tariffs to sway Putin on Ukraine. Heres how they might work, or not
WASHINGTON — Russian President Vladimir Putin has sacrificed an estimated 1 million of his soldiers, killed and wounded, in a three-year campaign to crush Ukraine. Now President Donald Trump is betting that his go-to economic weapon — tariffs — can succeed where Ukrainian drones and rockets haven't, and finally persuade Putin to end his war. Tariffs, which the U.S. president has called ' the most beautiful word in the dictionary,'' are taxes on imports. They are Trump's all-purpose fix — a tool he deploys to protect American industry, lure factories to the United States, tackle drug trafficking and illegal immigration, and raise money to pay for his massive tax cuts. On the campaign trail last year, Trump promised he'd negotiate an end to the Russia-Ukraine conflict in 24 hours. But months have passed without a peace deal, and the president has recently expressed frustration with the Russians. 'We're very, very unhappy with them ... I thought we would have had a deal two months ago, but it doesn't seem to get there,' Trump told reporters Monday. So in addition to agreeing to send more weapons to Ukraine, he's once again unsheathing tariffs. He said Monday the U.S. would impose 100% tariffs on countries that buy Russian oil, natural gas and other products if there isn't a peace deal in 50 days. The levies are meant to cause Russia financial pain by making its trading partners think twice before buying Russian energy. 'I use trade for a lot of things,'' Trump said, "but it's great for settling wars.' Trump did not spell out exactly how these "secondary'' tariffs would work, and trade analysts are skeptical. 'Unilateral tariffs are likely to be ineffective in influencing Putin's actions,' said Douglas Irwin, a Dartmouth College economist who studies American trade policy. "Financial sanctions in cooperation with European and other allies are much more likely to damage Russian economy, but whether they soften Russia's approach is also uncertain.'' The secondary tariffs idea isn't new. Republican Sen. Lindsey Graham of South Carolina and Democratic Sen. Richard Blumenthal of Connecticut earlier this year introduced legislation that would impose a 500% tariff on countries that buy Russian oil, petroleum products and uranium. If Trump goes through with his threat, his 100% tariffs have the potential to disrupt global commerce and push oil prices higher. They might also complicate Trump's efforts to strike separate trade deals with countries like China and India. Since December 2022, when the European Union banned Russian oil, China and India have bought 85% of Russia's crude oil exports and 63% of its coal, according to the Centre for Research on Energy and Clean Air, a Finnish nonprofit. So they would likely be the two countries most affected by Trump's 100% import taxes. Trump has already tangled with China this year, and things did not go well. In April, Trump plastered a 145% levy on Chinese imports, and Beijing counterpunched with 125% tariffs of its own. The triple-digit tariffs threatened to end trade between the world's two biggest economies and briefly sent financial markets reeling. China also withheld shipments of rare earth minerals used in products such as electric vehicles and wind turbines, crippling U.S. businesses. After showing how much pain they could inflict on each other, the United States and China agreed to a ceasefire. A new 100% secondary tariff 'would blow up that deal,' said Gary Hufbauer, senior fellow at the Peterson Institute for International Economics. 'China is particularly well-placed to hold out,' said Nicholas Mulder, a Cornell University historian. "All this would get us back to a position of full confrontation that would be uncomfortable for all sides.'' Hufbauer also noted that the secondary tariffs would also likely end 'any rapprochement with India'' — the world's fifth-biggest economy and one with which Trump is pursuing a trade deal. If Trump goes ahead with the tariffs, 'it would invariably lead to higher global energy prices,'' especially for natural gas, economists Kieran Tompkins and Liam Peach of Capital Economics wrote in a commentary Monday. Other oil-exporting countries have enough spare capacity to ramp up production and offset any loss of Russian oil exports in global market. But if they did, the world would have no buffer to rely on if there were an oil shock caused by, say, conflict in the Middle East — and prices could skyrocket. 'Removing that spare capacity would be akin to riding a bike with no shock absorbers,'' Tompkins and Peach wrote. After Putin's full-scale invasion of Ukraine in February 2022, the United States and its allies slammed Russia with sanctions. Among other things, the U.S. froze the assets of Russia's central bank and barred some Russian banks from using a key international payments system run by Belgium. With its allies from the Group of Seven rich nations, it also capped the price that importers could pay for Russian oil. The sanctions were expected to crush the Russian economy, but they didn't. Putin put Russia on a wartime budget, and high defense spending kept unemployment low. Military recruits were given big sign-up bonuses and the families of the fallen received death benefits, pumping income into some of Russia's poorer regions. To keep its oil sales going, Russia deployed "shadow fleets,'' hundreds of aging tankers of uncertain ownership and dodgy safety practices that delivered oil priced above the G7 price cap. 'The experience of the G7 oil price cap against Russia showed how challenging the enforcement of measures against the Russian oil trade can be,' Mulder said. Last year, the Russian economy grew 4.1%, according to the International Monetary Fund. But strains are showing, partly because Putin' war has made Russia a pariah to foreign investors. The IMF forecasts growth will decelerate to 1.5% this year, and last month the Russian economy minister warned the country is "on the brink of going into a recession.'' Trump's tariffs could increase the pressure, in part by driving down Russia's energy exports — and the revenue the Russian government collects from an energy tax. 'To my knowledge, tariffs have never been applied as an explicit anti-aggression measure,' said Mulder, author of a 2022 history of economic sanctions. "I am skeptical that the secondary tariffs threat will be effective.'' For one thing, he said, it's unclear whether Trump will actually impose them after 50 days. The president has repeatedly announced tariffs against other countries, and then sometimes suspended or tweaked them. For another, the secondary tariffs would target countries — namely China and India — that might have some sway in Moscow. 'The United States needs cooperation and collaboration to bring Russia to the negotiating table,' said Cullen Hendrix, senior fellow at the Peterson Institute. "Threatening to harm the actors who actually have leverage over Moscow may backfire.'' writers Katie Davies in Manchester, England, and Chris Megerian in Washington, contributed to this report. This article was generated from an automated news agency feed without modifications to text.
Mint
an hour ago
- Mint
TSX retreats from record high as US bank earnings weigh on financials
TSX ends down 0.5% at 27,054.14 Financials lose 0.6%, energy was down 0.9% Canada's annual inflation rate rises to 1.9% Eight of 10 major sectors end lower July 15 - Canada's main stock index pulled back on Tuesday from a record high, with heavily weighted financials among the sectors that declined as investors assessed U.S. bank earnings and after domestic inflation data reduced prospects of Bank of Canada interest rate cuts. The S&P/TSX composite index ended down 144.71 points, or 0.5%, at 27,054.14, after posting a record closing high on Monday. Wall Street opened the second-quarter earnings season on a somber note, with banking stocks whipsawing in volatile trade. "We're seeing profit-taking against the news because we've seen markets run up so hard for three months," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "With the U.S. banks down, it's dragging on the Canadian banks, especially because some of the Canadian banks have large U.S. operations." The financials sector, which accounts for 33% of the TSX's weighting, fell 0.6%. Eight of the TSX's 10 major sectors ended lower. "Canadian inflation doesn't help here either because it suggests the Bank of Canada may not be able to cut much further," Cieszynski said. Canada's annual inflation rate rose to 1.9% in June from 1.7% in May and CPI-median, one of the core measures of inflation closely tracked by the BoC, rose to 3.1% from 3%. Money markets have largely priced out the chances of a rate cut at the BoC's next policy decision on July 30 in response to the inflation data as well as stronger-than-expected jobs data on Friday. The energy sector lost 0.9% as the price of oil settled down 0.7% at $66.52 a barrel. Gold also fell. The materials sector, which includes metal mining shares, was down 0.7%. Technology ended 0.8% lower. This article was generated from an automated news agency feed without modifications to text.
