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The Independent
6 days ago
- Business
- The Independent
FTSE 100 takes breather ahead of tariff deadlines
The FTSE 100 ended a six-day winning streak to close a strong week on the back foot, ahead of pending US trade talk deadlines. The FTSE 100 index closed down 18.06 points, 0.2%, at 9,120.31. The FTSE 250 closed 37.43 points lower, 0.2%, at 22,117.98, and the AIM All-Share closed down 0.23 of a point at 776.64. For the week, the FTSE 100 rose 1.4%, hitting a new all-time high of 9,158.21. The FTSE 250 rose 1.0% and the AIM All-Share climbed 0.4%. Equities have enjoyed a strong run this week on expectations that governments will reach agreements with the US to avoid President Donald Trump's threatened tariffs before next Friday's deadline. Sentiment was lifted earlier in the week by the announcement of a Japan-US deal, as well as signals that the EU could be nearing its own agreement with Washington. That 'momentum has not been kept up, and European stocks are weaker at the end of the week,' said Kathleen Brooks, research director at trading group XTB. With no confirmation of a US-EU deal, sentiment towards European assets 'could be fragile as we lead up to that August 1 tariff deadline,' Ms Brooks added. On Friday, Mr Trump estimated there was a 50% chance of Washington being able to strike a deal with the EU to reduce import tariffs. 'I would say that we have a 50/50 chance, maybe less than that, but a 50/50 chance of making a deal with the EU,' Mr Trump told reporters while leaving the White House for a trip to Scotland. Mr Trump said his negotiators were working 'diligently' with EU officials. In European equities on Friday, the CAC 40 in Paris rose 0.4%, while the DAX 40 in Frankfurt fell 0.3%. Adding to the more cautious mood is the pending resumption of trade talks between the US and China at the start of next week, with investors looking for an extension to the August 12 deadline. The confirmation of a meeting, following talks in Geneva and then London earlier this year, comes ahead of the deadline when a pause on tariffs between China and the US is scheduled to expire. ING noted tariffs were drastically cut in a 90-day ceasefire agreement that was effective in May. This is set to expire on August 12. 'One big question for markets is whether the tariff ceasefire is extended. We expect that an agreement will be attainable, but, in the interim, markets will watch closely to see if there are adjustments to current tariff rates in either direction,' ING said. Retailers were mixed as figures from the Office for National Statistics showed UK retail sales improved in June following record-setting warm weather, but fell short of expectations. Total retail sales volumes rose 0.9% in June, compared to a fall of 2.8% in May, the latter downwardly revised from a decline of 2.7%. Sales fell short of an FXStreet-cited consensus for a 1.2% rise, however. Next edged up 0.7%, but sports retailer JD Sports Fashion fell 0.9% while Marks & Spencer ended flat. Further weighing on JD Sports was a profit warning from German sports brand Puma, which sent the latter's shares plunging 16%. Puma reported a drop in sales and gross margin during the second quarter, as demand weakened across several regions, prompting a warning of weaker performance for the rest of the year. Herzogenaurach, Germany-based Puma said preliminary sales fell 8.3% to 1.94 billion euros in the second quarter ended June 30 from 2.12 billion euros a year earlier. 'Looking ahead, Puma no longer expects to achieve the currency-adjusted sales growth previously anticipated for the remainder of 2025. The softer top line performance observed in the second quarter is expected to persist for the remainder of 2025, resulting in higher inventory levels,' Puma added. The pound eased to 1.3437 dollars late on Friday afternoon in London, compared to 1.3535 dollars at the equities close on Thursday. The euro traded at 1.1737 dollars, lower against 1.1773 dollars. Against the yen, the dollar was trading higher at 147.69 yen compared to 146.79 yen. In New York, the Dow Jones Industrial Average was up 0.2%, the S&P 500 was 0.3% higher, as was the Nasdaq Composite. The yield on the US 10-year Treasury was quoted at 4.42%, stretched from 4.40%. The yield on the US 30-year Treasury was quoted at 4.96%, widened from 4.94% on Thursday. New orders for US durable goods fell sharply in June, dragged lower by a steep drop in transportation equipment orders, according to data released by the US Census Bureau. Durable goods orders declined 9.3% month-on-month to 311.8 billion dollars, following a revised surge in May of around 17%. June's decrease, which was driven almost entirely by the volatile transportation category, marks the second decline in three months. However, it was milder than the around 11% decline expected by the FXStreet-cited consensus. Next week, the Federal Reserve is widely expected to leave interest rates unchanged, a move unlikely to please Mr Trump. T he US president has been vocal in his criticism of Fed chairman Jerome Powell, prompting much speculation as to his future at the helm of the central bank. Despite political pressure, the CME's FedWatch tool places a 97% probability that the Federal Open Market Committee will maintain the target range for the federal funds rate at 4.25%-4.50%. The unity of the decision will be in focus given calls from Fed officials, including Christopher Waller, for lower rates. On the FTSE 100, NatWest rose 3.4% as it raised its full-year guidance, and boosted its dividend, after a strong first half which saw loans and deposits grow. The Edinburgh-based lender reported operating pre-tax profit of £3.59 billion in the six months to June 30, rising 18% from £3.03 billion the year before. Net interest income grew 13% to £6.12 billion from £5.41 billion, while non-interest income improved 8.1% to £1.87 billion from £1.73 billion. Net interest margin is 2.28%, improved on-year from 2.07%. NatWest declared an interim dividend of 9.5 pence per share, up 58% on-year from 6p, and intends to launch a share buyback for £750 million in the second half of 2025. 'With positive momentum in our business, we are ambitious for the future and see clear opportunities for further disciplined growth,' said chief executive officer Paul Thwaite. On the FTSE 250, Wizz Air climbed 11% as Barclays upgraded the low-cost airline to 'overweight' with a 1,500 pence share price target. Close Brothers rose 4.5%, after agreeing to sell City broker Winterflood Securities to London-based Marex for £103.9 million in cash. Close Brothers expects the sale proceeds to benefit its CET1 ratio by around 30 basis points, increasing it to 14.3% from 14.0%. Brent oil was quoted lower at 68.66 dollars a barrel in London on Friday, from 69.40 dollars late on Thursday. Gold fell to 3,329.51 dollars an ounce against 3,373.34 dollars. The biggest risers on the FTSE 100 were NatWest, up 17.00 pence at 518.6p, Ashtead, up 104.00p at 5,136.0p, Entain, up 17.3p at 1,000.5p, Lloyds Banking Group, up 1.26p at 79.3p, and Beazley, up 12.5p at 902.0p. The biggest fallers on the FTSE 100 were 3i, down 114.0p at 4,150.0p, Informa, down 20.2p at 862.8p, Rightmove, down 17.6p at 777.4p, Fresnillo, down 31.0p at 1,402.0p and Melrose Industries, down 10.0p at 510.0p. Monday's local corporate calendar has half-year results from Primary Health Properties. Later in the week, results are due from Barclays, HSBC, Shell, GSK, Unilever and AstraZeneca. The global economic calendar next week sees interest decisions in the US, Canada and Japan and nonfarm payrolls in the US on Friday.
Kuwait Times
23-07-2025
- Business
- Kuwait Times
Markets caught between earnings optimism, tariff fears
LONDON: Stock markets largely rose on Monday, as traders focused on upbeat US corporate news, but President Donald Trump's August 1 deadline for ramped-up tariffs still weighed on European indices. New York extended its positive trajectory from the previous week, which had also pulled Asia higher. In Europe, London and Frankfurt rose, but Paris sank. 'As we start a new week, the focus is once again on tariffs and earnings reports,' said Kathleen Brooks, research director at trading group XTB. Investors in US equities have been encouraged by forecast-beating results from major corporations, against only a modest uptick in inflation that suggested Trump's tariffs impact was not yet a worry. But analysts warned the picture could change if Trump made good on his threat to slap higher tariffs on major US trading partners the European Union, Canada and Mexico. Brooks and others stressed 'the clock is ticking' towards August 1, when a bruising US-EU trade war could be unleashed. Brussels has readied reprisals against a range of US imports—including on Boeing planes and bourbon—should no breakthrough come in its negotiations with Washington. Trump has threatened 30-percent tariffs on EU goods, which would rise further if Brussels retaliated. 'The upcoming US tariff deadline, which is due to kick in a week this Friday, continues to cast a long shadow, particularly across the EU,' said David Morrison, senior market analyst at Trade Nation. US Commerce Secretary Howard Lutnick told CBS News over the weekend he was 'confident' a trade deal would be reached with the EU. But Jochen Stanzl, chief market analyst at CMC Markets, said that any agreement would likely be 'only a framework deal... requiring further negotiations on the details'. 'Realistically, there is a high probability that uncertainty will persist beyond August 1,' he said. That uncertainty will be part of the European Central Bank's calculus as it meets this week. Expectations are for it to hold eurozone interest rates steady, pausing a long cycle of easing. Asia's equities advance was led by Hong Kong and came after strong earnings from Taiwanese chip giant TSMC and news that US titan Nvidia will be allowed to export key semiconductors to China. The yen strengthened against the dollar after Japanese Prime Minister Shigeru Ishiba vowed to stay on even after his ruling coalition lost its majority in the upper house in elections on Sunday. Ishiba, too, is struggling to reach a trade deal with Trump, who has threatened tariffs of 25 percent on goods from Japan. In company news, Jeep maker Stellantis said it suffered a massive, 2.3-billion-euro ($2.7-billion) net loss in the first half of this year, on the back of slumping North America sales and partly from 'the early effects of US tariffs'. Its shares, which have lost more than a third of their value since the start of the year, dipped early on Monday before reversing course and ending up. Oil prices receded on worries of declining global trade. But US Treasury Secretary Scott Bessent suggested the next round of US-China talks could include Chinese purchases of Russian and Iranian oil, which might pressure supply. Trump has already warned he will impose tariffs on countries buying Russian oil if Moscow did not end its war on Ukraine, and Bessent said: 'I would urge our European allies, who have talked a big game, to follow us if we implement these secondary tariffs.' – AFP
Wall Street Journal
22-07-2025
- Business
- Wall Street Journal
Oil Edges Lower Amid Tariff, Demand Concerns
0005 GMT — Oil edges lower in the early Asian session amid tariff and demand concerns. Lingering uncertainty over U.S. tariff decisions could continue to damp sentiment around forward demand for crude, XTB MENA's Milad Azar says in an email. Also, U.S. crude inventories have introduced more uncertainty, the market analyst says. 'U.S. crude stocks posted a draw last week, but this was offset by builds in gasoline and distillate inventories, suggesting underlying demand may be underwhelming relative to seasonal expectations,' Azar adds. Front-month WTI crude oil futures are down 0.15% at $67.10/bbl; front-month Brent crude oil futures are 0.2% lower at $69.07/bbl. (
Qatar Tribune
21-07-2025
- Business
- Qatar Tribune
Markets caught between earnings optimism, tariff fears
Agencies Stock markets largely rose on Monday, as traders focused on upbeat US corporate news, but President Donald Trump's August 1 deadline for ramped-up tariffs still weighed on European indices. New York extended its positive trajectory from the previous week, which had also pulled Asia higher. In Europe, London and Frankfurt rose, but Paris sank. 'As we start a new week, the focus is once again on tariffs and earnings reports,' said Kathleen Brooks, research director at trading group XTB. Investors in US equities have been encouraged by forecast-beating results from major corporations, against only a modest uptick in inflation that suggested Trump's tariffs impact was not yet a worry. But analysts warned the picture could change if Trump made good on his threat to slap higher tariffs on major US trading partners the European Union, Canada and Mexico. Brooks and others stressed 'the clock is ticking' towards August 1, when a bruising US-EU trade war could be unleashed. Brussels has readied reprisals against a range of US imports—including on Boeing planes and bourbon—should no breakthrough come in its negotiations with Washington. Trump has threatened 30-percent tariffs on EU goods, which would rise further if Brussels retaliated. 'The upcoming US tariff deadline, which is due to kick in a week this Friday, continues to cast a long shadow, particularly across the EU,' said David Morrison, senior market analyst at Trade Nation. US Commerce Secretary Howard Lutnick told CBS News over the weekend he was 'confident' a trade deal would be reached with the EU. But Jochen Stanzl, chief market analyst at CMC Markets, said that any agreement would likely be 'only a framework deal... requiring further negotiations on the details'. 'Realistically, there is a high probability that uncertainty will persist beyond August 1,' he said. That uncertainty will be part of the European Central Bank's calculus as it meets this week. Expectations are for it to hold eurozone interest rates steady, pausing a long cycle of easing. Asia's equities advance was led by Hong Kong and came after strong earnings from Taiwanese chip giant TSMC and news that US titan Nvidia will be allowed to export key semiconductors to China. The yen strengthened against the dollar after Japanese Prime Minister Shigeru Ishiba vowed to stay on even after his ruling coalition lost its majority in the upper house in elections on Sunday. Ishiba, too, is struggling to reach a trade deal with Trump, who has threatened tariffs of 25 percent on goods from Japan.
Al Etihad
18-07-2025
- Business
- Al Etihad
Stocks consolidate after bumper week buoyed by resilient US economy
18 July 2025 20:18 London (AFP)US and European stock markets stalled or trimmed gains on Friday after a bullish week buoyed by US data and upbeat company York -- whose S&P 500 and Nasdaq Composite struck record highs on Thursday -- mainly held on to gains but made little further headway. The Dow Europe, London's blue-chip FTSE was up though just under its all-time record reached on Tuesday. Paris was flat and Frankfurt slipped a little on markets had closed higher -- except for Tokyo, which was dragged down ahead of weekend upper-house elections that could spell trouble for Prime Minister Shigeru week's strong performance in equities showed that worries -- for now -- were largely being set aside over US President Donald Trump's threats of piling on further tariffs from August 1 if governments did not agree on trade deals."With the president toning down his rhetoric, markets are quick to forget tariff risks and concentrate on the positives including a resilient US economy," Kathleen Brooks, research director at trading firm XTB, overall optimism was fuelled by data suggesting the US economy was still well, with no persuasive indication that the tariffs were pushing up inflation.A June consumer price index report released this week "does not reveal tariff-induced price increases, but a closer look shows clear signs" they could be building, said Holger Schmieding, chief economist at Berenberg Federal Reserve governor, Christopher Waller, on Thursday argued for a July rate cut, saying he saw limited upside inflation this week denied he was planning to sack Fed boss Jerome Powell, whom he had been urging to reduce US borrowing costs to further boost the world's top economy.A meeting in South Africa of G20 finance ministers on Friday pointedly stressed that "central bank independence is crucial" around the corporate news, American Express followed big US banks in reporting better-than-expected second-quarter from streaming giant Netflix also outperformed -- though its share price slipped on Friday as investors weighed whether it had been overvalued. In London, British luxury brand Burberry said sales had not fallen as much as analysts expected, "which is a sign that the company's new strategic direction could be working", said XTB's Brooks. Its shares rose nearly six percent. Stock Markets Continue full coverage
