Latest news with #tradenegotiations
Yahoo
3 days ago
- Business
- Yahoo
Wall Street bull calls for 11% rally in S&P 500 to end 2025 as trade 'uncertainty' subsides
The high water mark for Wall Street's S&P 500 (^GSPC) targets has moved up amid the market rally. Oppenheimer chief market strategist John Stoltzfus boosted his year-end target to 7,100 from 5,950 in a note to clients on Sunday night as "progress on trade negotiations removes an uncertainty that had weighed on our market outlook." The new target is now the highest on Wall Street and calls for another 11% rally in the S&P. Should the S&P 500 close out 2025 above 7,100, the benchmark index will have rallied more than 20% for a third-straight year. Stoltzfus is one of several Wall Street strategists that has now reverted back to their initial year-end forecasts after previously slashing their target during April's near-20% tariff-driven market drawdown. Stolzfus' update came just hours after President Trump announced a deal with the European Union that includes a baseline 15% tariff rate on EU goods imported to the US. "We believe that enough 'tariff hurdles' have been overcome for now to reinstate our original price target for the S&P 500 of 7100 by year-end," Stoltzfus wrote. Stoltzfus reached his year-end target by projecting S&P 500 earnings per share at $275 for 2025 and the market trading at a forward twelve-month price to earnings ratio of 25.8. The S&P 500 is now valued at 22.4 times next year's earnings, above the five- and 10-year averages of 19.9 and 18.4, per FactSet data. This already has some wondering if the market rally has become overstretched. But strategists like Stoltzfus have recently been pointing out that corporate profits are proving more resilient than initially feared following Trump's initial April tariff announcements. With 34% of the S&P 500 having reported results, earnings in the second quarter are on pace to grow 6.4%, up from the 5% expected on June 27, per FactSet data. Estimates for year-over-year earnings growth in the final two quarters of 2025 and for the full year 2026 have been moving higher. As of July 25, FactSet data showed analysts expect the S&P 500 to grow earnings by 13.9% in 2026, slightly higher than the 13.8% that had been expected a month ago. In a Sunday note to clients, Citi head of US equity strategy Stuart Kaiser pointed out that earnings guidance for future quarters has been increased more than the prior reporting period in April. Kaiser points out that thus far, 41% of companies have raised their full-year guidance, up from 10% seen in April. Kaiser noted this is an added "tailwind" for US stocks. Morgan Stanley Chief Investment Officer Mike Wilson agrees. Data Wilson shared with Yahoo Finance shows that earnings revisions breadth — or the ratio of companies raising forecasts to those cutting forecasts — has rebounded as dramatically as the S&P 500 itself. "We are currently experiencing one of the strongest V-shaped recoveries in history, rivaling the Covid rebound in 2020, the last time we were so out of consensus on the market," Wilson told Yahoo Finance via email. "Many market participants do not appreciate how strong this very fundamental driver has been over the past several months, which helps to not only justify the rally to date, but also why we remain bullish on the next 6-12 months." Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malay Mail
3 days ago
- Business
- Malay Mail
Bank Negara trims 2025 GDP forecast to 4.0–4.8pc amid global uncertainties
KUALA LUMPUR, July 28 — Bank Negara Malaysia (BNM) has revised Malaysia's 2025 gross domestic product (GDP) growth projection to between 4.0 per cent and 4.8 per cent from 4.5 per cent - 5.5 per cent previously. The projection takes into account various tariff scenarios, ranging from continued elevation of tariffs to more favourable trade negotiation outcomes. In a statement today, the central bank said the forecast remains subject to uncertainties surrounding the global economy, both on the downside and the upside. 'Favourable trade negotiation outcomes, pro-growth policies in major economies, continued demand for electrical and electronic goods, and robust tourism activity could raise Malaysia's export and growth prospects,' it said. Meanwhile, BNM Governor Datuk Seri Abdul Rasheed Ghaffour said the Malaysian economy remains resilient despite global uncertainties, supported by the outcome of structural reforms undertaken over the years. 'The sustained strength in economic activity and moderate inflation provides a supportive environment to pursue structural reforms for a more resilient and competitive Malaysia in the future,' he said. — Bernama
South China Morning Post
7 days ago
- Business
- South China Morning Post
China steps up to protect trade war edge as rare earth smugglers get creative
Beijing has further institutionalised its export-control regime on critical minerals – widely considered a trump card held by Chinese authorities in trade negotiations with the US – as officials intensify crackdowns on smuggling. In the two months since China launched a campaign to combat illegal exports of strategic minerals, authorities have identified attempts by 'a small number of lawbreakers' to circumvent regulations through various means, leading to escalating risks of illegal technology outflows, said He Yadong, a spokesman for the Ministry of Commerce, at a press conference on Thursday. 'Government agencies have strengthened interdepartmental coordination, adopting a zero-tolerance approach and taking forceful measures against the smuggling and illegal export of strategic minerals,' He said. 'A number of illicit export cases have been investigated, with multiple smuggling suspects apprehended. 'These concerted efforts have demonstrated resolute enforcement and established a powerful deterrent effect.' With its stranglehold on the global supply chain for critical minerals, China has been increasingly leveraging that dominance to exert influence in geopolitical matters.
Bloomberg
7 days ago
- Business
- Bloomberg
ECB Keeps Rates Unchanged to Wait for Clarity on US Tariffs
By , Alexander Weber, and Mark Schroers Updated on Save The European Central Bank kept interest rates unchanged for the first time in more than a year after inflation hit 2% and messy trade negotiations with the US continued to cast a shadow over the economy. The deposit rate was left at 2% on Thursday — as predicted by the overwhelming majority of analysts in a Bloomberg survey. Still lacking clarity on the eventual level of tariffs, the ECB offered no guidance on future steps.
CTV News
22-07-2025
- Business
- CTV News
B.C. Premier to discuss tariffs and pipelines during annual summer summit
B.C. Premier David Eby appears in Vancouver, on Monday, May 26, 2025. THE CANADIAN PRESS/Darryl Dyck B.C Premier David Eby joined his counterparts in Ontario's cottage county Monday for an annual summer summit, hosted this year by Premier Doug Ford. The focus of the three-day summit is fighting U.S. President Donald Trump's looming tariffs, set to kick in Aug. 1. Eby said Monday that he wants to see softwood lumber front and centre in trade negotiations and is open to export quotas on Canadian lumber. 'If we could get a deal on this, it would support Americans, it would support Canadians and it would be a net win,' he told reporters. 'I'm a huge fan of the idea, I've been advocating for that with the prime minister. Let's get a deal done, and I'm hopeful he's been hearing that message.' Monday's events included a session with First Nations leaders who have pushed back on legislation designed to fast-track infrastructure and energy projects and are calling for more consultation. The premiers emerged from the day's meeting expressing support for including the prime minister in a follow-up meeting with First Nations leadership. Another issue on deck is removing inter provincial trade barriers, something the provincial leaders seem to unanimously support. More controversial are ongoing calls, particularly from Alberta Premier Danielle Smith for more pipelines through B.C. Eby is on record as opposing the idea, but the Opposition says the province would benefit. 'British Columbia is in a unique position where we could be the nation builder, we could be opening up our ports, getting our natural gas out to international markets, getting our oil out to international markets and becoming that unifying factor of all of Canada,' said B.C. Conservative Leader John Rustad. Pipelines didn't come up during the day's meetings, but Ford said he expected they would during an evening barbecue at his family's cottage. 'There's going to be a great conversation around the dinner table tonight, and everyone lets their hair down,' he told reporters. The premiers will be back at it Tuesday, along with the prime minister, plotting ways to strengthen Canada's economy to respond to the latest tariff threats from Trump.
