Stock market update: Tariff jitters cause U.S. volatility; Asian and European markets show resilience
Fed
policy uncertainty, and economic data releases interplay. Investors are adopting a cautious stance amid hopes for negotiation breakthroughs and the prospect of more accommodative monetary policy, while remaining alert to evolving geopolitical and inflationary pressures.
Global stock markets are navigating cautious optimism amid mixed economic signals and tariff-related uncertainties. Asian markets exhibited modest gains and subdued trading following the release of U.S. economic data that dampened hopes for immediate Federal Reserve rate cuts, while European indices showed steady performance as investors weigh ongoing geopolitical and trade developments.
Asian markets
In Asia, Japan's Nikkei 225 rose by 0.6 percent to close at 40,777.45, buoyed by optimism ahead of key corporate earnings from major automakers and electronics giants. Australia's S&P/ASX 200 also advanced by 0.5 percent to 8,290, reflecting resilience despite regional tariff concerns. Meanwhile, South Korea's Kospi slipped slightly by 0.3 percent to 3,357 amid caution over the impact of U.S. tariffs on chipmakers. Hong Kong's Hang Seng index fell 0.2 percent to 24,947.57, and the Shanghai Composite in China edged up by 0.3 percent to 3,627.54. The broader MSCI Asia Pacific Index finished the session with a modest 0.2 percent gain, reflecting a cautious but constructive tone in the region as investors assess the implications of President Trump's ongoing trade policies and pending tariff announcements for key sectors such as semiconductors and pharmaceuticals.
Read more: Stock markets display renewed optimism as investors embrace trade negotiation hopes
European indices
European stock markets continued to show resilience despite ongoing global uncertainties. Key indices such as the FTSE 100, DAX, and CAC 40 maintained steady levels, supported by stable commodity prices and improved corporate earnings outlooks. Market participants remain focused on upcoming economic indicators and the unfolding effects of trade negotiations between major economies.
U.S. equities
Turning to the U.S. equities market, the S&P 500 ended Tuesday at 6,299.19, down about 0.5 percent, continuing a volatile trend that saw sharp swings earlier in the week. The Dow Jones Industrial Average recorded a mild decline of 0.3 percent to finish at 44,736, while the Nasdaq Composite retreated 0.4 percent, closing near 20,550. Investors are digesting weaker-than-expected U.S. services sector data that raised doubts about the Federal Reserve's next moves on interest rates. This has injected caution into markets that had rallied on early week speculation of rate cuts following slack jobs numbers. The interplay of softening U.S. labor conditions and aggressive tariff policies is complicating the Federal Reserve's balancing act between controlling inflation and sustaining economic growth.
Commodities showed mixed signals with oil prices modestly rebounding to around $65.47 per barrel for both WTI and Brent crude, following a four-day decline as OPEC+ prepares to increase production in September to regain market share amid supply concerns. Gold futures slightly retreated to $3,430.10 per troy ounce, while copper futures edged down marginally, reflecting varying investor appetite for safe-haven and industrial metals.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
35 minutes ago
- Zawya
Hong Kong sees broad-based economic resilience under "One Country, Two Systems"
HONG KONG SAR - Media OutReach Newswire - 8 August 2025 - Last week, the Hong Kong Special Administrative Region (HKSAR) Government published a comprehensive report on the city's business environment, coinciding with the announcement of the city's advance estimates on economic performance in the second quarter of 2025. The report's analysis together with positive economic data accurately reflect Hong Kong's resilient business-friendly environment with strong appeal for companies and talent from around the world. In the April-to-June period, Hong Kong recorded solid 3.1% year-on-year GDP growth. This 10 th consecutive quarter of economic expansion was supported by strong exports performance and improved domestic demand: total exports of goods recorded an increase of 11.5% over a year earlier, while private consumption expenditure increased by 1.9%. This solid broad-based performance could be vividly seen in the high number of visitors to the city, including tourists and business visitors drawn by an array of events across town ranging from trade fairs to cultural festivals to mega sports events. One such event was the first Hong Kong Football Festival at the new Kai Tak Sports Park (KTSP) which saw close to 100,000 football fans packing the Kai Tak Stadium over two match days featuring games between Liverpool and AC Milan followed by Arsenal against Tottenham Hotspur. The crowd included the one-millionth spectator at the Kai Tak Stadium since it opened just five months ago. Hong Kong welcomed about 24 million visitors in the first half of 2025, representing a year-on-year increase of 12%. Visitor arrivals from the Mainland saw a year-on-year increase of 10% while those from the rest of the world increased 17% over the same period last year. Unique Strengths under 'One Country, Two Systems' The economic statistics fully endorse the analysis in the Government's 102-page "Report on Hong Kong's Business Environment: Unique Strengths under 'One Country, Two Systems'". Under "One Country, Two Systems", Hong Kong is known for its robust legal and financial systems, simple and low tax regime, strategic location at the heart of Asia, advanced infrastructure, pool of top-notch talent, and high-quality professional services. With its close connectivity to leading global business centres, Hong Kong offers a dynamic, free and open, convenient and safe place for doing business, making it a preferred destination for corporate investment. Beyond tourism services, developments in other sectors have been picking up in recent years, further boosting confidence in the local economy. Despite continued global uncertainties, the sentiment about Hong Kong's stock market has steadily improved. In the first half of 2025, the Hang Seng Index has risen by more than 4,000 points, registering an increase of about 20%. The amount of IPO fundraising reached over US$13.6 billion in the first six months of the year, placing Hong Kong in a leading position among major global exchanges. Vibrant IPO activities continued in July with nine IPOs raising more than US$2.3 billion. Meanwhile, overall investment expenditure increased further alongside the economic expansion. The HKSAR Government's Office for Attracting Strategic Enterprises (OASES) has successfully attracted 84 strategic enterprises to set up or expand their operations in Hong Kong. It is expected that they will invest a total of around US$6.4 billion and create more than 20,000 jobs in Hong Kong in the coming few years. Also, since January 2023, Invest Hong Kong has assisted more than 1,300 overseas and Mainland China companies to set up or expand their business in Hong Kong, bringing in foreign direct investment of more than US$20.3 billion. Initiatives to attract top talents and professionals from around the world are also paying dividends. Various talent attraction schemes have received nearly 500,000 applications with nearly 330,000 of them approved and almost 220,000 talents already arrived in Hong Kong. Amid lingering uncertainties in the external environment, the HKSAR Government will continue striving to promote economic growth on different fronts and make the most of the city's longstanding and unique "One Country, Two Systems" advantages to maintain the city's reputation as a resilient, open, free and competitive economy. Hashtag: #hongkong #brandhongkong #asiasworldcity #economicgrowth #business The issuer is solely responsible for the content of this announcement. Information Services Department, Hong Kong SAR Government
The National
4 hours ago
- The National
Trump picks top economic adviser for Federal Reserve Board
US President Donald Trump announced on Thursday that he will nominate top economic adviser Stephen Miran to temporarily serve on the Federal Reserve Board of Governors as he pushes for more control over the central bank. If confirmed by the US Senate, Mr Miran, chairman of the White House's Council of Economic Advisers, would fill the seat vacated by Adriana Kugler, who is due to step down as Fed governor on Friday. Her term expires on January 31, 2026. 'In the meantime, we will continue to search for a permanent replacement,' Mr Trump wrote on the Truth Social media platform, suggesting he could nominate another person to serve a full 14-year term. Ms Kugler's surprise resignation last week opened the path for Mr Trump to exert power over the Federal Reserve, the independence of which has been tested amid the President's repeated calls for lower interest rates. Ms Kugler was absent and did not vote when the Fed kept its target range for interest rates steady at 4.25 to 4.50 per cent last week. She did not provide a reason for her resignation. The Federal Reserve referred to the White House when asked for comment. The White House referred The National to Mr Trump's Truth Social post when asked for a statement. Mr Miran has been critical of the Federal Reserve in the past, arguing for reforms to the US central bank in a March 2024 paper. 'The Federal Reserve's record in recent years raises questions about whether it has been operating in line with the best practices of central bank independence,' he wrote along with Daniel Katz, who now works at the Treasury Department. Mr Miran is also known for co-developing the 'Mar-a-Lago Accord', a playbook to devalue the dollar while preserving its status as the world's reserve currency. His nomination to the Federal Reserve Board comes as Fed chairman Jerome Powell faces increasing pressure from the Trump administration to lower interest rates. Mr Trump has relentlessly attacked Mr Powell in recent months, even visiting the central bank's headquarters where renovation costs have become a new target for the White House. It also comes as speculation increases over who will replace Mr Powell, whose term as chairman expires in May 2026. On Thursday, Bloomberg reported Fed Governor Christopher Waller has emerged as a top choice to succeed him. Mr Waller was one of two Fed governors to dissent in last week's decision to keep rates unchanged, instead favouring a cut of 25 basis points. He based his reasoning on a forward-looking view that tariffs will lead to a one-off increase in prices and that current data shows the labour market is not as strong as it appears. 'I believe that the wait-and-see approach is overly cautious and, in my opinion, does not properly balance the risks to the outlook and could lead to policy falling behind the curve,' Mr Waller said in a statement last week. 'When labour markets turn, they often turn fast. If we find ourselves needing to support the economy, waiting may unduly delay moving towards appropriate policy.' Mr Powell has not indicated if he intends to serve out the remainder of his term on the central bank, which expires in 2028, after his term as chairman ends.
Zawya
8 hours ago
- Zawya
Trump tariffs hit India's garment makers as US buyers say move production
Ever since Donald Trump's tariff salvo on India this week, garment maker Pearl Global - whose U.S. client list includes Gap and Kohl's - has been receiving midnight panic calls with an ultimatum: share the tariff hit or move production out of India. To calm U.S. customers' nerves, Pearl Global has offered to shift production to its 17 factories in Bangladesh, Indonesia, Vietnam and Guatemala to bypass the steep U.S. levies on Indian imports. "All the customers are already calling me. They want us to ... shift from India to the other countries," Managing Director Pallab Banerjee told Reuters in an interview. Trump's initial tariff proposals in April - which were lower for India than for the rival Asian garment hubs of Bangladesh, Vietnam and China - had been seen as an opportunity for India to rapidly expand in the $16 billion apparel exports market. But the tables have turned as relations between New Delhi and Washington have soured, with India now facing a 50% tariff, versus 20% for Bangladesh and Vietnam, and 30% for China. Pearl gets roughly half of its business from the United States. Some clients offered to continue taking products from India if it could share the tariff burden, but that is not viable, Banerjee said, without naming the customers. 'IN THE DOLDRUMS' The 50% U.S. tariff - comprising 25% that kicked in on Thursday and another 25% due to come into force on August 28 as a penalty for buying Russian oil - has stunned U.S. garment buyers and their Indian suppliers, who say they are considering taking their manufacturing operations beyond Indian shores, even to less-established garment hubs like Ethiopia and Nepal. Some exporters also say they have been asked by U.S. clients to put orders on hold. New Delhi has called Trump tariffs "extremely unfortunate". India's garment sector was already grappling with a labour crunch and limited production capacity. But the prospect of exporters shifting production outside India would also be a blow to Prime Minister Narendra Modi's "Make in India" policy drive. While Pearl can use its foreign factories to meet U.S. orders, exporters that rely on domestic factories are set to be hit much harder. RichaCo Exports has shipped $111 million of garments to the U.S. this year, with clients such as J. Crew Group, customs data shows. All were made in its more than two dozen factories across India. Around 95% of its annual Indian revenues come from the United States, said general manager Dinesh Raheja. "We're exploring setting up a manufacturing base in (Nepal's capital) Kathmandu," he said. "The industry is in the doldrums." ORDERS ON HOLD Earlier this week, India's biggest jeweller and watchmaker Titan told Reuters it was looking at shifting some manufacturing to the Middle East to maintain low-tariff access to U.S. markets. Amit Agarwal, finance chief of top Indian garment maker Raymond, said he was pinning hopes on the company's one factory in Ethiopia - which faces just a 10% U.S. tariff and could possibly add more production lines within three months to cater to U.S. clients. The tariff threat comes as India was emerging as a big alternative for U.S. garment buyers like Walmart, as Bangladesh faces a political crisis, and companies look to diversify supply chains beyond China. Indian garment hub Tiruppur in the south, considered the country's knitwear capital and which accounts for nearly one-third of apparel exports, was bullish about the future earlier this year when Reuters visited and talked to exporters. Panic has now descended on the hub. Some factories in Tiruppur have been asked by customers to hold orders, while some plan to ship as many goods as possible before the full 50% tariff kicks in, said Naveen Micheal John, executive director at Cotton Blossom India. "An importer, which had placed orders for underwear, has come back saying that if you haven't purchased yarns ... keep it on hold for now," he said. Some garments in Tiruppur cost U.S. clients as little as $1, while a women's or men's T-shirt can vary from about $3.5-$5, which could soon face 50% tariffs, said N. Thirukkumaran, general secretary of the Tiruppur Exporters Association. (Writing by Aditya Kalra. Editing by Mark Potter)
