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Business Times
15 hours ago
- Automotive
- Business Times
Europe: Stocks rise as US-China trade tensions ease; auto stocks jump
[BENGALURU] European stocks closed at an over one-week high on Friday (Jun 27), fuelled by a rally in automakers, as investors took more risks on hopes for a truce in the US-China trade spat. The pan-European Stoxx 600 index closed 1.1 per cent higher, snapping a two-week losing streak and posting its first weekly gain in three. German stocks notched their strongest weekly rally in two months, while France and Spain's main indices clocked their best weeks in over a month. The Stoxx 600's energy sector, however, suffered its first weekly drop in weeks. The sector lost steam as oil prices plunged, after fears of a closure of the Strait of Hormuz – crucial to global supply – subsided following a 12-day conflict between Israel and Iran. 'We are surprised to see continued market strength in light of the current geopolitical events, but it's clear that the market thinks the conflict will remain contained, although that could change at anytime,' said Robert Ruggirello, chief investment officer, Brave Eagle Wealth Management. With geopolitical worries in the Middle East receding, investors have shifted their gaze to global trade developments. They are hoping for breakthroughs on new trade deals before the looming deadline for higher US tariffs in early July. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up A White House official revealed on Thursday that Washington and Beijing had struck a deal to fast-track rare earth shipments to the US. European auto stocks and the luxury sector, particularly sensitive to China-related headlines, jumped 4.1 per cent and 2.5 per cent, respectively, steering sectoral advances. Porsche jumped 7.6 per cent after Handelsblatt reported that the carmaker was looking to sell its consulting and IT services business MHP, which could be valued at over one billion euros (S$1.5 billion). Adding to the tailwinds, US Treasury Secretary Scott Bessent on Thursday asked Republicans in Congress to remove a 'retaliatory tax' proposal that would let Trump impose up to 20 per cent taxes on foreign investors from countries that levy 'unfair' taxes on US firms. Meanwhile, EU leaders discussed new proposals from the US on a trade deal at a summit in Brussels on Thursday. European Commission President Ursula von der Leyen did not rule out the likelihood of tariff talks failing, saying 'all options remain on the table'. 'There's lots of negotiation going on and it takes time... but any sign that tensions are not going to re-escalate, would be taken positively,' said Richard Flax, chief investment officer at Moneyfarm. Global market sentiment also received an extra boost from Wall Street, as both the S&P 500 and Nasdaq opened at record highs. On the data front, French consumer prices unexpectedly climbed in June, snapping a run of falling inflation, while Spain also saw its inflation rate tick higher during the month. UK's JD Sports advanced 7.6 per cent, while German sportswear makers Puma and Adidas gained 3 per cent and 3.8 per cent, respectively, after US peer Nike's first-quarter revenue outlook exceeded market expectations. Amplifon dropped 7.3 per cent after brokerage Exane BNP Paribas flagged weak consumer sentiment in the hearing aid company's main markets. REUTERS
Business Times
2 days ago
- Business
- Business Times
Europe: Stocks muted as investors gauge US interest rate outlook
EUROPEAN stocks seesawed throughout Thursday before closing largely flat, as investors weighed the latest signals on the US interest rate trajectory. The pan-European Stoxx 600 index closed up 0.09 per cent at 537.48 points. Other regional indexes also followed suit with similar moves, with only Germany's DAX up 0.6%. Federal Reserve Chair Jerome Powell suggested in his congressional testimony this week that if not for inflationary pressures tied to the Trump administration's tariffs, the central bank might have kept cutting rates. US President Donald Trump stepped up his criticism of Powell and hinted at a shortlist of potential replacements, while the Wall Street Journal reported that a shake-up could come as early as September. Markets are now focused on the July 9 US tariff pause deadline. With trade talks largely stalled — apart from a US-UK agreement — the European Union is trying to clinch its own deal with Washington. EU leaders, meeting on Thursday, must decide whether to opt for a quick accord, or dig in for a tougher fight. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We haven't heard much about a deal between US and Europe and as we approach closer to the tariff deadline, it's becoming more of a risk factor for Europe,' said Anthi Tsouvali, multi-asset strategist at UBS Global Wealth Management. Against this backdrop, the Stoxx 600 was on track for its first weekly gain in three weeks, buoyed by optimism that the fragile truce between Iran and Israel will hold. Among sectors, European defence rose 3.1 per cent. Nato leaders on Wednesday backed the big increase in defence spending that Trump had demanded. Industrial miners led sectoral gains, jumping nearly 4 per cent - logging their biggest intraday percentage gain in over a month, buoyed by copper prices that were near three-month highs. Rheinmetall and Airbus jumped 7.3 per cent and 2.7 per cent, respectively. Saab rose 6.3 per cent, while QinetiQ was up 7.3 per cent. Conversely, consumer-focused stocks were the biggest drag on the index, with the luxury sector and personal and household goods dropping more than 1.4 per cent each. Inchcape rose nearly 6 per cent after the car distributor reiterated its full-year financial outlook. Edenred advanced 6.3 per cent after a French minister gave an update on a proposed meal voucher reform. On the data front, German consumer sentiment is set to edge lower heading into July as households' increased willingness to save counteracts improving income prospects. REUTERS
Business Times
3 days ago
- Business
- Business Times
Europe: Shares sag as investors weigh Iran-Israel ceasefire
A RALLY in European stocks hit a roadblock as investors weighed the fragility of the Israel-Iran ceasefire, with attention quickly shifting to the looming US tariff pause deadline. The pan-European Stoxx 600 index lost steam after Tuesday's best intraday jump in over a month, dipping 0.74 per cent to 536.98 as a wave of red swept across most sectors. Only four sectors bucked the trend. Defence stocks jumped after Nato's pledge for a major boost in military spending. US President Donald Trump reassured allies of Washington's support. Meanwhile, major regional bourses closed lower. Spain led the slide with a 1.6 per cent drop. Concerns over its defence budget shortfall lingered. Data showed its economy cooled to a 0.6 per cent growth pace in early 2025. Germany shed 0.6 per cent, despite a new record investment budget, while France and Britain slipped 0.8 per cent and 0.5 per cent, respectively. Across the geopolitical stage, the US-brokered ceasefire between Israel and Iran appeared to hold, though scepticism lingered. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Hopes for a durable peace rose after promising US-Iran talks, but investors remained cautious, eyeing the fast-approaching July 8 US tariff pause deadline as the EU scrambled to secure trade deals, with progress limited outside of an agreement with London. 'European stocks still face trade tensions and the ECB's easing and interest in European defense stocks are now no longer strong factors anymore,' said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. 'That's why yesterday's rebound in the European stocks was overstretched and we might see some consolidation and even maybe some bearishness in the coming days.' European auto stocks accelerated 1.3 per cent. Data showed May car sales rose 1.9 per cent year-on-year. Stellantis rose 3 per cent after Jefferies upgraded the carmaker to 'buy' from 'hold'. Babcock topped the Stoxx index with a 10.7 per cent rise after the British defence engineering company upgraded its medium-term guidance. Shares of energy giants BP and Shell will be in focus on Thursday after the Wall Street Journal reported that Shell is in early talks to buy rival BP. Meanwhile, Wall Street looked to Washington, where Fed Chair Jerome Powell struck a cautious tone in Senate testimony, pledging a 'careful approach' on future policy moves. REUTERS
The Star
3 days ago
- Business
- The Star
Stocks edge up, dollar steady as ceasefire buoys confidence
TOKYO: Stocks ticked higher and crude oil held not far from multi-week lows on Wednesday, as investors took a ceasefire between Israel and Iran as a green light to head back into riskier assets and cast aside immediate worries about an energy shock. The dollar languished close to an almost four-year low versus the euro, with two-year U.S. Treasury yields sagging to 1-1/2-month troughs as lower oil prices reduced the risk to bonds from an inflation spike. The shaky truce has so far held, although Israel says it will respond forcefully to Iranian missile strikes that came after U.S. President Donald Trump announced an end to the hostilities. In addition, U.S. airstrikes did not destroy Iran's nuclear capability and only set it back by a few months, according to a preliminary U.S. intelligence assessment, contradicting Trump's earlier comments that Iran's nuclear programme had been "obliterated". Europe's Stoxx 600 index edged up 0.2% in early trade, while S&P 500 futures and Nasdaq futures were flat. Japan's Nikkei rose 0.4%, while Hong Kong's Hang Seng climbed 1.3% and mainland Chinese blue chips gained 1.44%, closing at their highest level since March 20. An MSCI index of global stocks held steady after pushing to a record high overnight. "If the still tense situation in the Middle East does indeed continue to calm down, the stock markets could have a pleasant July ahead of them, in line with their typical seasonal pattern," analysts at Frankfurt-based Metzler said. "This would result in new all-time highs in the U.S., possibly further fuelled by renewed expectations of interest rate cuts by the Fed." A series of U.S. macroeconomic data released overnight including on consumer confidence showed possibly weaker than expected economic growth in the world's largest oil consumer, bolstering expectations of Federal Reserve rate cuts this year. Brent crude rose 2% to $68.43 per barrel, bouncing a bit following a plunge of as much as $14.58 over the previous two sessions. U.S. West Texas Intermediate crude was up as much to trade at $65.60 per barrel. "While concerns regarding Middle Eastern supply have diminished for now, they have not entirely disappeared, and there remains a stronger demand for immediate supply," analysts at ING wrote in a note to clients. The two-year U.S. Treasury yield was at its lowest since May 8 at 3.7848%. The euro slipped 0.1% to $1.1594, still close to the overnight high of $1.1641, a level not seen since October 2021, while the U.S. dollar index, which measures the currency against six major counterparts, was only slightly higher at 98.079. Gold rose marginally to about $3,328 per ounce. Aside from geopolitics, U.S. monetary policy continues to dominate investor concerns. Federal Reserve Chair Jerome Powell said on Tuesday that higher tariffs could begin raising inflation this summer, a period that will be key to the U.S. central bank considering possible rate cuts. Markets continue to price in a roughly 19% chance that the Fed will cut rates by a quarter point in July, according to the CME FedWatch tool. - Reuters
Mint
3 days ago
- Business
- Mint
Stocks edge up, dollar steady as ceasefire buoys confidence
TOKYO (Reuters) -Stocks ticked higher and crude oil held not far from multi-week lows on Wednesday, as investors took a ceasefire between Israel and Iran as a green light to head back into riskier assets and cast aside immediate worries about an energy shock. The dollar languished close to an almost four-year low versus the euro, with two-year U.S. Treasury yields sagging to 1-1/2-month troughs as lower oil prices reduced the risk to bonds from an inflation spike. The shaky truce has so far held, although Israel says it will respond forcefully to Iranian missile strikes that came after U.S. President Donald Trump announced an end to the hostilities. In addition, U.S. airstrikes did not destroy Iran's nuclear capability and only set it back by a few months, according to a preliminary U.S. intelligence assessment, contradicting Trump's earlier comments that Iran's nuclear programme had been "obliterated". Europe's Stoxx 600 index edged up 0.2% in early trade, while S&P 500 futures and Nasdaq futures were flat. Japan's Nikkei rose 0.4%, while Hong Kong's Hang Seng climbed 1.3% and mainland Chinese blue chips gained 1.44%, closing at their highest level since March 20. An MSCI index of global stocks held steady after pushing to a record high overnight. "If the still tense situation in the Middle East does indeed continue to calm down, the stock markets could have a pleasant July ahead of them, in line with their typical seasonal pattern," analysts at Frankfurt-based Metzler said. "This would result in new all-time highs in the U.S., possibly further fuelled by renewed expectations of interest rate cuts by the Fed." A series of U.S. macroeconomic data released overnight including on consumer confidence showed possibly weaker than expected economic growth in the world's largest oil consumer, bolstering expectations of Federal Reserve rate cuts this year. Brent crude rose 2% to $68.43 per barrel, bouncing a bit following a plunge of as much as $14.58 over the previous two sessions. U.S. West Texas Intermediate crude was up as much to trade at $65.60 per barrel. "While concerns regarding Middle Eastern supply have diminished for now, they have not entirely disappeared, and there remains a stronger demand for immediate supply," analysts at ING wrote in a note to clients. The two-year U.S. Treasury yield was at its lowest since May 8 at 3.7848%. The euro slipped 0.1% to $1.1594, still close to the overnight high of $1.1641, a level not seen since October 2021, while the U.S. dollar index, which measures the currency against six major counterparts, was only slightly higher at 98.079. Gold rose marginally to about $3,328 per ounce. Aside from geopolitics, U.S. monetary policy continues to dominate investor concerns. Federal Reserve Chair Jerome Powell said on Tuesday that higher tariffs could begin raising inflation this summer, a period that will be key to the U.S. central bank considering possible rate cuts. Markets continue to price in a roughly 19% chance that the Fed will cut rates by a quarter point in July, according to the CME FedWatch tool.
