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Zawya
08-07-2025
- Business
- Zawya
Shares steady, yen slides after US issues tariff letters
TOKYO - Global stocks were flat to marginally higher on Tuesday, as investors took in their stride the latest twist in U.S. President Donald Trump's tariff roll-out, while the yen slid on 25% duties facing Japanese goods. Trump sent letters to 14 countries on Monday, including top Asian trade partners such as Japan and South Korea, unveiling sharply higher tariffs on imports into the United States. However, market reaction has broadly been guarded, compared to the sharp declines witnessed in the aftermath of "Liberation Day" three months ago, on expectations that countries would strive to seal trade deals with the United States before the new August 1 deadline. Europe's STOXX 600 wavered near the unchanged mark and the euro firmed 0.4% as sources said the monetary union will not be receiving a letter setting out higher tariffs and that the EU could reach a trade deal by Wednesday. "While a comprehensive trade deal is unlikely before the deadline, there is cautious optimism that a preliminary agreement can be reached to avert the immediate imposition of higher tariffs," Daniela Hathorn, a senior market analyst at said. "Such an agreement would provide a foundation for continued negotiations aimed at resolving the broader trade disputes between the EU and the U.S., improving risk appetite in European stocks and the euro." Across the Atlantic, futures tracking Wall Street's S&P 500 steadied after a knee-jerk selloff in the previous session. Goldman Sachs raised its return forecasts for the benchmark index, citing expectations of U.S. interest rate cuts and continued fundamental strength of major large-cap stocks as key drivers of its positive outlook. Still, the lack of progress on the trade front has been looming over markets ever since Trump capped all of the so-called reciprocal tariffs with trading partners at 10% for three months in April to allow for negotiations. However, only two agreements, with Britain and Vietnam, have been reached and in June, Washington and Beijing agreed on a framework covering tariff rates, restoring a fragile truce in their trade war. Concerns are that Trump's erratic style of policymaking could put off business investment, stall global economic growth and stoke inflation pressures. This would also complicate the work of central banks such as the U.S. Federal Reserve that have currently taken a wait-and-see approach on monetary policy. TARIFFS ON ASIA Southeast Asia's biggest economies are among those hit with the highest of U.S. tariffs. Japanese Prime Minister Shigeru Ishiba called the 25% hike deeply regrettable and said his nation would continue negotiations with the U.S. Thailand's finance minister Pichai Chunhavajira said his country is preparing a back-up plan to deal with the 36% tariff imposed on its exports. Hopes of trade deals buoyed risk appetites for regional assets on Tuesday. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6%, while Nikkei stock index reversed early declines and was last up 0.26%. South Korean shares recorded their strongest daily gain in two weeks and the won firmed 0.6%. Export-dependent Japan's yen was steady after hitting a two-week low against the dollar, but continued to weaken against a host of other currencies. Elsewhere, the Aussie dollar surged 0.8% against the greenback after the Reserve Bank of Australia left policy rates unchanged, defying expectations for a cut. The RBA left its cash rate steady at 3.85%, a shock for markets that had confidently priced in a cut, saying the majority of the board wanted to wait for more information to confirm inflation was slowing. In commodities, U.S. crude dipped 0.6% to $67.5 a barrel after surging nearly 2% on Monday. Traditional safe-haven assets such as gold prices and government bond yields in Europe and the U.S. were broadly muted.
Globe and Mail
08-07-2025
- Business
- Globe and Mail
Premarket: Wall Street futures steady following trade-driven selloff
Global stocks were flat to marginally higher on Tuesday, as investors took in their stride the latest twist in U.S. President Donald Trump's tariff roll-out, while the yen slid on 25-per-cent duties facing Japanese goods. Mr. Trump sent letters to 14 countries on Monday, including top Asian trade partners such as Japan and South Korea, unveiling sharply higher tariffs on imports into the United States. However, market reaction has broadly been guarded, compared to the sharp declines witnessed in the aftermath of 'Liberation Day' three months ago, on expectations that countries would strive to seal trade deals with the United States before the new August 1 deadline. Europe's STOXX 600 wavered near the unchanged mark and the euro firmed 0.4 per cent as sources said the monetary union will not be receiving a letter setting out higher tariffs and that the EU could reach a trade deal by Wednesday. 'While a comprehensive trade deal is unlikely before the deadline, there is cautious optimism that a preliminary agreement can be reached to avert the immediate imposition of higher tariffs,' Daniela Hathorn, a senior market analyst at said. 'Such an agreement would provide a foundation for continued negotiations aimed at resolving the broader trade disputes between the EU and the U.S., improving risk appetite in European stocks and the euro.' Across the Atlantic, futures tracking Wall Street's S&P 500 steadied after a knee-jerk selloff in the previous session. Goldman Sachs raised its return forecasts for the benchmark index, citing expectations of U.S. interest rate cuts and continued fundamental strength of major large-cap stocks as key drivers of its positive outlook. Still, the lack of progress on the trade front has been looming over markets ever since Mr. Trump capped all of the so-called reciprocal tariffs with trading partners at 10 per cent for three months in April to allow for negotiations. However, only two agreements, with Britain and Vietnam, have been reached and in June, Washington and Beijing agreed on a framework covering tariff rates, restoring a fragile truce in their trade war. Concerns are that Mr. Trump's erratic style of policymaking could put off business investment, stall global economic growth and stoke inflation pressures. This would also complicate the work of central banks such as the U.S. Federal Reserve that have currently taken a wait-and-see approach on monetary policy. Southeast Asia's biggest economies are among those hit with the highest of U.S. tariffs. Japanese Prime Minister Shigeru Ishiba called the 25-per-cent hike deeply regrettable and said his nation would continue negotiations with the U.S. Thailand's finance minister Pichai Chunhavajira said his country is preparing a back-up plan to deal with the 36-per-cent tariff imposed on its exports. Hopes of trade deals buoyed risk appetites for regional assets on Tuesday. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent, while Nikkei stock index reversed early declines and was last up 0.26 per cent. South Korean shares recorded their strongest daily gain in two weeks and the won firmed 0.6 per cent. Export-dependent Japan's yen was steady after hitting a two-week low against the dollar, but continued to weaken against a host of other currencies. Elsewhere, the Aussie dollar surged 0.8 per cent against the greenback after the Reserve Bank of Australia left policy rates unchanged, defying expectations for a cut. The RBA left its cash rate steady at 3.85 per cent, a shock for markets that had confidently priced in a cut, saying the majority of the board wanted to wait for more information to confirm inflation was slowing. In commodities, U.S. crude dipped 0.6 per cent to US$67.5 a barrel after surging nearly 2 per cent on Monday. Traditional safe-haven assets such as gold prices and government bond yields in Europe and the U.S. were broadly muted. Reuters
Zawya
04-07-2025
- Business
- Zawya
Dollar holds firm against euro, yen as US trade pressure mounts
TOKYO: The dollar held gains on Friday after President Donald Trump got his signature tax cut bill across the final hurdle and pressure mounted on countries to secure trade deals with the United States. The greenback rallied from multi-year lows against the euro and the British pound hit earlier in the week after stronger than expected U.S. jobs data pushed out the timing for potential rate cuts by the Federal Reserve. The Republican-controlled House of Representatives narrowly passed Trump's "One, Big, Beautiful Bill" of spending and tax cuts that is estimated to add $3.4 trillion to the nation's $36.2 trillion debt. Trump is expected to sign the bill into law on Friday. With the U.S. closed for Independence Day, attention turns to Trump's July 9 deadline when sweeping tariffs take effect on countries like Japan that have not yet secured trade agreements. "The dynamic is raising questions about fiscal sustainability and bond market stability," said Kyle Rodda, senior financial markets analyst at referring to the bill's passage. "However, for now, those risks are being looked through as the markets embrace signs of labour market resilience and hopes for further U.S. trade deals." The dollar index, which tracks the greenback against major peers, had its worst first half since 1973 as Trump's chaotic roll-out of sweeping tariffs stoked concerns about the U.S. economy and the safety of Treasuries. The gauge stood little changed at 97.056 after a 0.4% advance on Thursday. The euro edged up 0.1% to $1.1765. Trump said the U.S. will start sending letters to countries on Friday specifying what tariff rates they will face, a shift from earlier pledges to ink individual deals. European Commission President Ursula von der Leyen said the common-currency bloc was aiming for a trade agreement "in principle" with the U.S. before the deadline. Japan, which has been a focus of Trump's ire of late, is reportedly sending its chief trade negotiator to the U.S. again as early as this weekend. On the data front, the U.S. Labor Department's closely watched employment report on Thursday showed that nonfarm payrolls increased by 147,000 jobs in June, well ahead of economists' forecast in a Reuters poll for a rise of 110,000. "The U.S. labour market is gradually slowing down, but the fact that it hasn't experienced a sudden change is reassuring," said SMBC chief currency strategist Hirofumi Suzuki. "I personally predict that the tariff negotiations will not be very favourable, leading to continued dollar weakness and yen strength." Market expectations that the Fed will leave rates unchanged at its July meeting are now at 94.8% probability, up from 76.2% on July 2, according to the CME's Fedwatch tool. Economists continue to expect the Fed would not start cutting rates again until September or even later. The dollar slid 0.2% to 144.69 yen, trimming a 0.8% surge in the previous session. Sterling was little changed at $1.36495.
CNA
04-07-2025
- Business
- CNA
Dollar holds firm against euro, yen as US trade pressure mounts
TOKYO :The dollar held gains on Friday after President Donald Trump got his signature tax cut bill across the final hurdle and pressure mounted on countries to secure trade deals with the United States. The greenback rallied from multi-year lows against the euro and British pound hit earlier in the week after stronger than expected U.S. jobs data pushed out the timing for potential rate cuts by the Federal Reserve. New Zealand's kiwi dollar, a common proxy for risk appetite, rose 0.2 per cent to $0.608 after U.S. stocks climbed to new record levels. The Republican-controlled House of Representatives narrowly passed Trump's "One, Big, Beautiful Bill" of spending and tax cuts that is estimated to add $3.4 trillion to the nation's $36.2 trillion debt. With the U.S. closed for Independence Day, attention turns to Trump's July 9 deadline when sweeping tariffs take effect on countries like Japan that have not yet secured trade agreements. "The dynamic is raising questions about fiscal sustainability and bond market stability," said Kyle Rodda, senior financial markets analyst at referring to the bill's passage. "However, for now, those risks are being looked through as the markets embrace signs of labour market resilience and hopes for further U.S. trade deals." The dollar index, which tracks the greenback against major peers, had its worst first half since 1973 as Trump's chaotic roll-out of sweeping tariffs stoked concerns about the U.S. economy and the safety of Treasuries. Trump said the U.S. will start sending letters to countries on Friday specifying what tariff rates they will face, a shift from earlier pledges to ink individual deals. Against the yen the dollar was traded at 144.69 yen, down 0.2 per cent from late in the U.S. trading day when it surged 0.8 per cent. The euro added 0.1 per cent to $1.1769, while sterling traded at $1.3668, up 0.1 per cent. The Australian dollar fetched $0.6577, up 0.1 per cent in early trade. U.S. Labor Department's closely watch employment report on Thursday showed that nonfarm payrolls increased by 147,000 jobs in June, well ahead of economists' forecast in a Reuters poll for a rise of 110,000. Market expectations that the Fed will leave rates unchanged at its July meeting rose to a 95.3 per cent probability, up from 76.2 per cent previously, according to the CME's Fedwatch tool.
Reuters
04-07-2025
- Business
- Reuters
Dollar holds firm against euro, yen as US trade pressure mounts
TOKYO, July 4 (Reuters) - The dollar held gains on Friday after President Donald Trump got his signature tax cut bill across the final hurdle and pressure mounted on countries to secure trade deals with the United States. The greenback rallied from multi-year lows against the euro and British pound hit earlier in the week after stronger than expected U.S. jobs data pushed out the timing for potential rate cuts by the Federal Reserve. New Zealand's kiwi dollar, a common proxy for risk appetite, rose 0.2% to $0.608 after U.S. stocks climbed to new record levels. The Republican-controlled House of Representatives narrowly passed Trump's "One, Big, Beautiful Bill" of spending and tax cuts that is estimated to add $3.4 trillion to the nation's $36.2 trillion debt. With the U.S. closed for Independence Day, attention turns to Trump's July 9 deadline when sweeping tariffs take effect on countries like Japan that have not yet secured trade agreements. "The dynamic is raising questions about fiscal sustainability and bond market stability," said Kyle Rodda, senior financial markets analyst at referring to the bill's passage. "However, for now, those risks are being looked through as the markets embrace signs of labour market resilience and hopes for further U.S. trade deals." The dollar index , which tracks the greenback against major peers, had its worst first half since 1973 as Trump's chaotic roll-out of sweeping tariffs stoked concerns about the U.S. economy and the safety of Treasuries. Trump said the U.S. will start sending letters to countries on Friday specifying what tariff rates they will face, a shift from earlier pledges to ink individual deals. Against the yen the dollar was traded at 144.69 yen , down 0.2% from late in the U.S. trading day when it surged 0.8%. The euro added 0.1% to $1.1769 , while sterling traded at $1.3668 , up 0.1%. The Australian dollar fetched $0.6577 , up 0.1% in early trade. U.S. Labor Department's closely watch employment report on Thursday showed that nonfarm payrolls increased by 147,000 jobs in June, well ahead of economists' forecast in a Reuters poll for a rise of 110,000. Market expectations that the Fed will leave rates unchanged at its July meeting rose to a 95.3% probability, up from 76.2% previously, according to the CME's Fedwatch tool. Economists continue to expect the Fed would not start cutting rates again until September or even later.
