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Yahoo
a day ago
- Business
- Yahoo
Oil prices rise as US-EU deal lifts trade optimism
Oil (BZ=F, CL=F) Oil prices climbed in early European trading on Monday following a trade agreement between the United States and the European Union, easing fears of escalating transatlantic trade tensions ahead of a key tariff deadline. Brent (BZ=F) crude futures gained 0.9% to trade at $69.04 per barrel, at the time of writing, while West Texas Intermediate (CL=F) futures climbed by 0.8% to $65.70 a barrel. The modest gains came after Washington and Brussels struck a last-minute trade pact on Sunday, ahead of US president Donald Trump's 1 August deadline for a new round of tariffs on EU imports. Under the agreement, most European goods will now face a 15% import tariff, half the rate initially proposed by the US administration. Read more: FTSE 100 LIVE: Markets higher as EU agrees 15% tariff in US trade deal The agreement, which averts a broader trade conflict between two economies that together account for nearly a third of global trade, helped support sentiment in financial markets, including oil. "With the risk of a prolonged trade war and the importance of the August tariff deadlines being steadily defused, markets have responded positively," IG markets analyst Tony Sycamore said in a note. The deal also raised hopes of further de-escalation in global trade tensions, including a potential extension of the current tariff pause between Washington and Beijing. However, gains in crude prices were tempered by investor caution ahead of a meeting of the Opec+ alliance on Monday. The group is expected to review the pace at which it is easing supply curbs implemented during the pandemic-induced downturn. Gold (GC=F) Gold prices were muted on Monday morning, as the trade agreement between the US and the EU boosted investor confidence and dampened demand for the traditional safe haven asset. Gold futures were flat at $3,335.90 per ounce, at the time of writing, while spot gold advanced 0.1% to $3,341.97 per ounce. The precious metal lost some of its appeal as markets digested news of a new transatlantic trade deal that helped ease tensions between Washington and Brussels. The agreement has lifted broader market sentiment, weighing on gold, which tends to perform best during periods of heightened uncertainty. Stocks: Create your watchlist and portfolio Analysts noted that progress toward a trade truce lowered uncertainty, drawing funds into equities and reducing bullion's attraction. Gold's gains were further capped by investor caution ahead of a closely watched US Federal Reserve policy decision due later this week. The central bank is widely expected to leave its benchmark interest rate unchanged in the 4.25%-4.50% range when its two-day meeting concludes on Wednesday. "In the short term, we don't expect gold to experience wild swings. Investors are turning their focus to a pivotal week for US monetary policy and economic data," Jigar Trivedi, senior commodity analyst at Reliance Securities, told Reuters. Pound (GBPUSD=X, GBPEUR=X) The pound held flat against the US dollar on Monday morning, trading at $1.3424, as a quiet UK data calendar left the currency largely directionless and vulnerable to broader dollar moves ahead of a crucial week for US economic releases and Federal Reserve policy. The US dollar index ( which measures the greenback against a basket of six currencies, was higher at 97.88. Tuesday is set to bring the latest US job openings figures and consumer confidence data. While job openings are forecast to have declined in June, sentiment is expected to have improved in July, a combination that could generate mixed signals for the dollar. Wednesday's calendar features the first estimate of second-quarter US GDP growth and the Fed's interest rate decision. A strong GDP reading, coupled with continued resistance to near-term rate cuts, could provide fresh momentum for the dollar. Read more: How to get the best currency exchange deal for your holiday money Thursday sees the release of the core PCE price index, the Federal Reserve's preferred inflation gauge. A rise in June's figure, as anticipated, would likely bolster the greenback further. However, Friday's non-farm payrolls report may temper the rally. The July data is expected to show a sharp slowdown in employment growth and a slight uptick in the unemployment rate from 4.1% to 4.2%, a figure that could put some downward pressure on the dollar. Elsewhere in currencies, the pound pushed higher against the euro. Sterling was up 0.3% against the single currency to trade at €1.1473 at the time of writing. In equities, the FTSE 100 (^FTSE) was in the green this morning, up 0.3% to 9,148 points. For more details, on market movements check our live coverage here.
New Straits Times
a day ago
- Business
- New Straits Times
Oil rises as US-EU deal lifts trade optimism
SINGAPORE: Oil prices rose on Monday after the United States reached a trade deal with the European Union and may extend a tariff pause with China, reducing concerns that potentially higher levies would limit economic activity and impact fuel demand. Brent crude futures inched up 22 US cents, or 0.32 per cent, to US$68.66 a barrel by 0035 GMT, while US West Texas Intermediate crude was at US$65.38 a barrel, up 22 US cents, or 0.34 per cent. The US-European Union trade deal and a possible extension in the US-China tariff pause are supporting global financial markets and oil prices, IG Markets analyst Tony Sycamore said. The United States and the European Union struck a framework trade agreement on Sunday that will impose a 15 per cent import tariff on most EU goods, half the threatened rate. The deal averted a bigger trade war between two allies that account for almost one-third of global trade and could crimp fuel demand. Also, senior US and Chinese negotiators will meet in Stockholm on Monday, aiming to extend a truce keeping sharply higher tariffs at bay ahead of the Aug 12 deadline. Oil prices settled on Friday at their lowest in three weeks as global trade concerns and expectations of more oil supply from Venezuela weighed. Venezuela's state-run oil company PDVSA is getting ready to resume work at its joint ventures under terms similar to Biden-era licences, once US President Donald Trump reinstates authorisations for its partners to operate and export oil under swaps, company sources said. Though prices were up slightly on Monday, the prospect of OPEC+ further easing supply curbs limited the gains. A market monitoring panel of the Organisation of the Petroleum Exporting Countries and their allies is set to meet at 1200 GMT on Monday. It is unlikely to recommend altering existing plans by eight members to raise oil output by 548,000 barrels per day in August, four OPEC+ delegates said last week. Another source said it was too early to say. The producer group is keen to recover market share while summer demand is helping to absorb the extra barrels. JP Morgan analysts said global oil demand rose by 600,000 barrels per day in July on year, while global oil stocks rose 1.6 million barrels per day. In the Middle East, Yemen's Houthis said on Sunday they would target any ships belonging to companies that do business with Israeli ports, regardless of their nationalities, as part of what they called the fourth phase of their military operations against Israel over the Gaza conflict.
Free Malaysia Today
08-07-2025
- Business
- Free Malaysia Today
Emerging market currencies rise as focus shifts to negotiations
The South Korean won led a pullback in emerging currencies today, rising as much as 0.9% to pare most of its overnight decline. (EPA Images pic) TOKYO : Emerging market currencies recovered some of their losses after US President Donald Trump signalled he is open to negotiations shortly after setting tariff rates for more than a dozen countries. The South Korean won led a pullback in emerging currencies today, rising as much as 0.9% to pare most of its overnight decline. The Philippine peso, the Thai baht and the South African rand also rose to pull back some of their losses from yesterday. MSCI's gauge of emerging market stocks rose 0.1%. These moves came after mixed messages from Trump yesterday: The president sent letters to a variety of countries setting tariff rates, but also suggested he was open to negotiations. Trump added that the levies were 'firm, but not 100% firm'. That has left markets playing a now familiar guessing game about how bad the damage could be. 'The 'firm but not 100%' headline has opened the way for another round of TACO today Trump style,' said Tony Sycamore, an analyst at IG Markets in Sydney, using an acronym for bets that Trump ultimately backs down from his worst threats. 'Markets remain headline driven so to a large degree it depends on what he says next,' Sycamore said. Trump began the tariff notifications by announcing his intent to impose 25% levies on goods from Japan and South Korea. More followed throughout yesterday, with the president outlining plans to tariff foreign goods from trading partners including South Africa, Indonesia, Thailand and Cambodia. Governments across emerging market countries are still working to secure favourable deals. Malaysia said it will continue to engage with the US, while Thailand's finance minister Pichai Chunhavajira said he is optimistic about securing a lower tariff rate than the announced 36% levy. There are signs investors are seeing local bond markets as a safe place to invest amid the turmoil. Thailand's 2028 bond auction today saw strong demand, getting a bid-to-cover ratio of 3.39 times – the highest since March 2021. Whether currency movements follow a similar pattern to April, when the dollar weakened sharply after a landmark tariff announcement, will depend on which countries are targeted and whether that adds fuel to policy uncertainty, wrote Michael Wan, a senior currency analyst at MUFG in Singapore, in a note. 'This modest reaction is perhaps a function of the market pricing in the ability to negotiate down tariffs, or perhaps a continuation of the TACO trade,' Wan added.
News24
08-07-2025
- Business
- News24
Rand steadies after tariff shock as markets bet on TACO trade
• For more financial news, go to the News24 Business front page. Emerging market currencies recovered some of their losses after US President Donald Trump signalled he is open to negotiations shortly after setting tariff rates for more than a dozen countries. The South Korean won led a pullback in emerging currencies on Tuesday, rising as much as 0.9% to pare most of its overnight decline. The Philippine peso, the Thai baht and the South African rand also rose to pull back some of their losses from Monday. Early on Tuesday, the rand was trading at R17.80/$ after hitting R17.87 overnight following news of a 30% US tariff hit on SA. Last week, the rand strengthened to below R17.50. MSCI's gauge of emerging market stocks rose 0.1%. These moves came after mixed messages from Trump on Monday: The president sent letters to a variety of countries setting tariff rates but also suggested he was open to negotiations. Trump added that the levies were 'firm, but not 100% firm.' That has left markets playing a now familiar guessing game about how bad the damage could be. 'The 'firm but not 100%' headline has opened the way for another round of TACO [Trump Always Chickens Out] Tuesday Trump style,' said Tony Sycamore, an analyst at IG Markets in Sydney, using an acronym for bets that Trump ultimately backs down from his worst threats. 'Markets remain headline driven so to a large degree it depends on what he says next.' Trump began the tariff notifications by announcing his intent to impose 25% levies on goods from Japan and South Korea. More followed throughout Monday, with the president outlining plans to tariff foreign goods from trading partners including South Africa, Indonesia, Thailand and Cambodia. Governments across emerging market countries are still working to secure favourable deals. Malaysia said it will continue to engage with the US, while Thailand's Finance Minister Pichai Chunhavajira said he is optimistic about securing a lower tariff rate than the announced 36% levy. There are signs investors are seeing local bond markets as a safe place to invest amid the turmoil. Thailand's 2028 bond auction on Tuesday saw strong demand, getting a bid-to-cover ratio of 3.39 times — the highest since March 2021. Whether currency movements follow a similar pattern to April, when the dollar weakened sharply after a landmark tariff announcement, will depend on which countries are targeted and whether that adds fuel to policy uncertainty, wrote Michael Wan, a senior currency analyst at MUFG in Singapore, in a note. 'This modest reaction is perhaps a function of the market pricing in the ability to negotiate down tariffs, or perhaps a continuation of the TACO trade.'
The Advertiser
20-06-2025
- Business
- The Advertiser
Australian stock market snaps five-week winning streak
Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents
