Latest news with #tradeDeal
CNA
18 hours ago
- Business
- CNA
US stocks hit record on US-China trade progress
LONDON: Wall Street climbed into record territory on Friday (Jun 27) as the United States and China moved closer to a trade deal and Washington signalled it could reach tariff agreements with over a dozen other partners. With the Israel-Iran ceasefire holding, investors turned attention back to the wider economy and President Donald Trump's tariff blitz. Trump imposed a 10 per cent tariff on goods from nearly every country at the start of April, but he delayed higher rates on dozens of nations until Jul 9 to allow for talks. On Thursday, he said the United States had signed a deal relating to trade with China, without providing further details. China said on Friday that Washington would lift "restrictive measures", while Beijing would "review and approve" items under export controls. "While details remain sparse, the announcement removed another layer of uncertainty from the global risk environment," said David Morrison, an analyst at financial services firm Trade Nation. "Investors welcomed the confirmation as a positive signal for supply chains and global trade, even if the implementation timeline remains vague," he added. TRADE DEAL PROGRESS US Treasury Secretary Scott Bessent added on Friday that Washington could reach key tariff deals with over a dozen partners in the coming months and have its trade agenda completed by early September. The United States is focusing on agreements with 18 key trading partners. "If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labour Day (Sep 1)," Bessent told Fox Business. Wall Street stocks pushed higher, with both the S&P 500 and Nasdaq Composite indices entering record territory. The gains came despite the US Federal Reserve's preferred inflation measure, the core personal consumption expenditures price index, coming in at a higher-than-expected 0.2 per cent increase in May. "Today's inflation report should not be enough to give markets a significant scare, but it probably dashes the slim hopes investors had for a July rate cut," said eToro US investment analyst Bret Kenwell. "Further, it may give investors a bit of hesitation with stocks surging into record high territory as we near quarter-end," he added. EUROPEAN AND ASIAN MARKETS European stock markets also rose, with the Paris CAC 40 leading the way, boosted by a rise in luxury stocks. Traders brushed off data showing that inflation edged up in France and Spain in June, even as it added to speculation that the European Central Bank might pause its interest rate cut cycle. In Asia, Tokyo rallied more than one per cent to break 40,000 points for the first time since January, while Hong Kong and Shanghai equities closed lower. WEAKER DOLLAR The dollar held around three-year lows on Friday as traders bet on US interest rate cuts, especially after Trump hinted at replacing Fed chief Jerome Powell. The prospect of lower borrowing costs sent the Dollar Index, which compares the greenback to a basket of major currencies, to its lowest level since March 2022. Weak economic data on Thursday, showing that the world's top economy contracted more than previously estimated in the first quarter and softer consumer spending, further fuelled rate cut expectations. KEY FIGURES AT AROUND 1530 GMT New York - Dow: UP 0.9 per cent at 43,783.12 points New York - S&P 500: UP 0.6 per cent at 6,177.84 New York - Nasdaq Composite: UP 0.6 per cent at 20,280.39 London - FTSE 100: UP 0.7 per cent at 8,798.91 (close) Paris - CAC 40: UP 1.8 per cent at 7,691.55 (close) Frankfurt - DAX: UP 1.6 per cent at 24,033.22 (close) Tokyo - Nikkei 225: UP 1.4 per cent at 40,150.79 (close) Hong Kong - Hang Seng Index: DOWN 0.2 per cent at 24,284.15 (close) Shanghai - Composite: DOWN 0.7 per cent at 3,424.23 (close) Euro/dollar: UP at US$1.1714 from US$1.1701 on Thursday Pound/dollar: DOWN at US$1.3713 from US$1.3725 Dollar/yen: UP at 144.81 yen from 144.44 yen Euro/pound: UP at 85.43 pence from 85.22 pence
Bloomberg
18 hours ago
- Business
- Bloomberg
Europe Eyes US Trade Agreement Ahead of Deadline
The European Union and the US believe they can agree a trade deal before July 9 , the deadline by which Washington is threatening to impose 50% tariffs on almost all EU products — which would trigger a series of countermeasures from the bloc. European Commission President Ursula von der Leyen privately told EU leaders yesterday that she was confident a deal could be reached before the deadline to avoid an economically damaging escalation, according to people familiar with the matter. During the meeting there was a shift in tone from leaders, with many saying they would accept some imbalances to avoid the situation getting worse.
ABC News
19 hours ago
- Business
- ABC News
US and China confirm trade deal framework after months-long trade war
China has confirmed details on the framework of a trade deal with the United States, saying Washington would lift "restrictive measures" while Beijing would "review and approve" items under export controls. A top priority for Washington in the talks with Beijing had been ensuring the supply of the rare earths essential for products including electric vehicles, hard drives and national defence equipment. China, which dominates global production of the elements, began requiring export licences in early April, a move widely viewed as a response to blistering tariffs imposed by US President Donald Trump. The two sides agreed after talks in Geneva in May to temporarily lower steep tit-for-tat tariffs on each other's products. China also committed to easing some non-tariff countermeasures, but US officials later accused Beijing of violating the pact and slow-walking export licence approvals for rare earths. They eventually agreed on a framework to move forward with their Geneva consensus following talks in London this month. A White House official told AFP on Thursday that the Trump administration and China had "agreed to an additional understanding for a framework to implement the Geneva agreement." That clarification came after the US president told an event that Washington had "just signed" a deal relating to trade with China, without providing further details. Beijing confirmed on Friday that an agreement had been reached. "It is hoped that the United States and China will meet each other halfway," a spokesperson for the commerce ministry said in a statement. It said both sides had "further confirmed the details of the framework". Under the deal, China "will review and approve applications for the export control items that meet the requirements in accordance with the law". "The US side will correspondingly cancel a series of restrictive measures against China," the commerce ministry said. US Treasury Secretary Scott Bessent said Friday that Washington could wrap up its agenda for trade deals by early September, indicating more agreements could be concluded although likely extending past an upcoming deadline. Speaking to Fox Business ahead of a July 9 deadline for steeper US duties to kick in on dozens of economies, Mr Bessent reiterated that there are 18 key partners Washington is focused on pacts with. "If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day," Mr Bessent said. That holiday falls on September 1. About the July date, US Commerce Secretary Howard Lutnick told Bloomberg Television on Thursday that "we're going to do top 10 deals, put them in the right category, and then these other countries will fit behind". Countries have been moving to negotiate and reach trade pacts with Washington to avoid further tariff hikes following a 10 per cent levy Mr Trump imposed on most trading partners in April. Wall Street's major indexes bounced on hopes for deals with China and others. The broad-based S&P 500 hit a new record in a stunning comeback from lows in April, while most stock markets rose in Europe and Asia indexes were mixed. The White House suggested Thursday that the Trump administration could extend the July deadline. Press secretary Karoline Leavitt told reporters on Thursday, local time: "Perhaps it could be extended, but that's a decision for the president to make." She added: "The deadline is not critical." This means Mr Trump can "pick a reciprocal tariff rate that he believes is advantageous for the United States", she added. AFP/ABC
The National
19 hours ago
- Business
- The National
S&P 500 hits new high but cracks appear in US economy
The S&P 500 reached a new high on Friday, completing a stunning turnaround driven by rising hopes of a trade deal with China, as fresh cracks appear in the US economy. The index rose 0.3 per cent to 6,156.80 after trading opened, surpassing its previous record of 6,147.43 in January. The Nasdaq Composite also hit a new high of 20,218 while the Dow Jones Industrial Average rose 0.4 per cent, or 156 points. Powering Friday's gains was optimism about a US-China trade deal, with Commerce Secretary Howard Lutnick telling Bloomberg that such an agreement had been finalised. He also previewed 10 other trade deals with partners that were expected to be reached soon. The index's new high caps a remarkable comeback after global markets plunged following President Donald Trump's announcement of his universal and 'reciprocal' tariff policy in April. The benchmark has risen more than 23 per cent since April 8. Much of the market turmoil was spurred on by fears that the tariffs would lead to a global economic slowdown. While the US economy has held up since Mr Trump's announcement, cracks are beginning to appear. A Commerce Department report on Friday showed consumer spending fell 0.4 per cent in May, largely brought on by a drop-off in car sales. 'Even so, there is a clear weakening in discretionary services spending, notably in travel and hospitality, reflecting the drop in overseas visitors as well as the chilling effect of the plunge in consumer sentiment,' Michael Pearce, deputy chief US economist at Oxford Economics, wrote in a note. Revised gross domestic product (GDP) estimates released on Thursday showed the economy contracted 0.5 per cent in the last quarter. The broad-based drop in consumer spending broke the idea of an 'unshakable consumer', as recent data shows a plunge in confidence amid Mr Trump's shifting trade policies. 'Some of that message was already revealed in yesterday's GDP revisions which showed consumer spending is now estimated to have increased at a limping-along pace of just 0.5 per cent,' Wells Fargo economists Tim Quinlan and Shannon Green wrote. The University of Michigan's Survey of Consumers showed sentiment surged from May, with consumers' fears of tariffs somewhat softening. 'Consumer views are still broadly consistent with an economic slowdown and an increase in inflation to come,' it said. The dip in consumer spending also comes as divisions grow within the Federal Reserve on the near-term path for rate cuts. Fed officials are debating whether tariff-related inflation will be a one-time bump or have a more persistent effect. Separate data from the Commerce Department on Friday showed the inflation picture changed little last month. The Personal Consumption Expenditures (PCE) Price Index rose 0.1 per cent on a monthly basis and 2.3 per cent year-on-year. Core PCE, which excludes food and energy, rose 0.2 per cent monthly and 2.7 per cent year-on-year, slightly higher than expected. Economists mostly expect inflation to pick up in the coming months as businesses pass on higher prices to consumers. 'PCE inflation remained benign in May, but we are only just starting to see the impact of tariffs in consumer goods prices, and several favourable one-offs depressing inflation over the past few months will go into reverse from June onwards,' Mr Pearce said. US central bank officials currently project to cut rates twice this year, according to their most recent economic projections. Fed Governor Christopher Waller, who supported the idea of a July rate cut in an interview with CNBC last week, has maintained his belief the central bank can look through tariff-related inflation. He was joined by Fed Vice Chair Michelle Bowman, whose support of a July rate cut was a surprising turn for the typically hawkish official. However, Fed chairman Jerome Powell poured cold water on the possibility of a July rate cut during congressional testimony this week. 'For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,' he said. Mr Powell later said that most economic forecasters 'expect a fairly substantial wave of price increases to come through to the consumer', reflecting a similar argument he made after the Fed held rates steady last week. New York Fed President John Williams also supported taking a cautious posture, saying in a speech that the current 4.25 to 4.50 per cent target range for rates remains 'entirely appropriate'. 'In terms of public communications, it seems that there's Waller and Bowman, and then there's everyone else,' Kevin Burgett, senior analyst at LHMeyer, wrote on Thursday. Expectations of a July rate cut have grown slightly this week, although a large majority of traders still anticipate the Fed will hold rates steady for a fifth straight meeting next month, according to CME Group data.
CNA
20 hours ago
- Business
- CNA
China confirms trade deal framework reached with United States
BEIJING: China confirmed on Friday (Jun 27) details on the framework of a trade deal with the United States, saying Washington would lift "restrictive measures" while Beijing would "review and approve" items under export controls. A top priority for Washington in talks with Beijing had been ensuring the supply of the rare earths essential for products including electric vehicles, hard drives and national defence equipment. China, which dominates global production of the elements, began requiring export licences in early April, a move widely viewed as a response to blistering tariffs imposed by Trump. The two sides agreed after talks in Geneva in May to temporarily lower steep tit-for-tat tariffs on each other's products. China also committed to easing some non-tariff countermeasures, but US officials later accused Beijing of violating the pact and slow-walking export licence approvals for rare earths. They eventually agreed on a framework to move forward with their Geneva consensus following talks in London this month. A White House official also told AFP on Thursday that Donald Trump's administration and China had "agreed to an additional understanding for a framework to implement the Geneva agreement". That clarification came after the US president told an event that Washington had "just signed" a deal relating to trade with China, without providing further details. Beijing confirmed on Friday that an agreement had been reached. "It is hoped that the United States and China will meet each other halfway," a spokesperson for the commerce ministry said in a statement. It said both sides had "further confirmed the details of the framework". Under the deal, China "will review and approve applications for the export control items that meet the requirements in accordance with the law". "The US side will correspondingly cancel a series of restrictive measures against China," the commerce ministry said. Separately on Thursday, the White House also indicated that Washington could extend a July deadline when steeper tariffs affecting dozens of economies are due to kick in. Trump imposed a sweeping 10 per cent levy on most trading partners this year but also unveiled - then halted - higher rates on dozens of economies while negotiations took place. That pause is set to expire on Jul 9. When asked if there would be another delay, press secretary Karoline Leavitt told reporters: "Perhaps it could be extended, but that's a decision for the president to make. "The deadline is not critical. The president can simply provide these countries with a deal if they refuse to make us one by the deadline." This means Trump can "pick a reciprocal tariff rate that he believes is advantageous for the United States", she added.
