European shares subdued as investors brace for Trump's tariff deadline
The pan-European STOXX 600 index was flat at 541.15 points, as of 0835 GMT.
Other major regional indexes were mixed, with Germany's DAX up 0.4%, while France's CAC 40, Spain's IBEX , and the UK's FTSE 100 each fell 0.1%.
President Trump said on Sunday, the US is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9.
The new rates are set to take effect from August 1.
He also said the US will send letters to 12 countries on Monday, detailing the different tariff levels they will face on goods they export to the US 'Trade deals have taken years to agree…suddenly the US is trying to negotiate so many deals in three months.
It will be surprising if they get proper long-lasting deals signed very quickly', said Andrew Lapping, Chief Investment Officer at Ranmore Fund Management.
Meanwhile, Trump threatened an extra 10% tariff on countries aligning themselves with the 'anti-American policies' of the BRICS group of developing nations.
He added to the confusion by mentioning that some tariffs could reach up to 70% levels far higher than the 10%-50% range he announced in April.
'Trump is in a teasing mood, hinting that more deals will be inked in the coming days….investors are bracing for another burst of volatility, as another cloud of unpredictability descends.', said Susannah Streeter, head of money and markets, Hargreaves Lansdown in a note.
Meanwhile, a White House official said on Friday that US trade talks with the European Union were ongoing, and there was optimism that an agreement could be reached in the near future.
European shares fall as banks, mining stocks losses weigh
European energy stocks fell 1.6%, tracking lower oil prices —meanwhile, insurance stocks were up 0.8%.
Among individual stocks, Shell fell 3% after the energy major trimmed its second-quarter gas, LNG output outlook and guided for weaker trading results in a quarterly update ahead of full results.
Capgemini fell 4.1% after the French IT services firm agreed to buy technology outsourcing company WNS for a cash payment of $3.3 billion.
China's finance ministry said on Sunday it would restrict government purchases of medical devices from the EU that exceed 45 million yuan ($6.3 million) in value, in retaliation for Brussels' curbs last month.
Carl Zeiss Meditec and Merck Kgaa fell 1.7% and 2.1%, respectively, following China's reciprocal curbs on EU medical devices.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
35 minutes ago
- Business Recorder
Japan's Nikkei slips as election, US tariffs weigh; Disco gains
TOKYO: Japan's Nikkei share gauge slipped on Thursday, stalling ahead of the key 40,000 level, as trade frictions and an upcoming election weighed on investor sentiment. The Nikkei 225 Index lost 0.6% to 39,584.11 after two days of gains. The broader Topix shed 0.8%. Retailer Aeon plunged 3.5% after postponing its earnings announcement due to the discovery of inappropriate accounting practices at a Vietnamese subsidiary. Chip-maker supplier Disco led gains with a 4.3% surge after it raised its first-quarter earnings forecast, citing strong demand related to artificial intelligence. Earlier this week, US President Donald Trump announced 25% tariffs on Japan and other trade partners starting August 1, a date he said was final. Export-dependent Japan remains an outlier among the US's key trading partners, with multiple rounds of trade talks failing to produce a breakthrough. Meanwhile, Japanese policymakers are increasingly focused on a critical upcoming election on July 20. 'The Nikkei has been struggling to move higher ahead of the 40,000 mark,' said Wataru Akiyama, a strategist at Nomura Securities. 'The stock market may be taking a wait-and-see attitude given the lack of progress in the Japan-US tariff negotiations and the upper house election.' Japan is seeking talks between its tariff negotiator, Ryosei Akazawa, and US Treasury Secretary Scott Bessent during the latter's visit to Japan for the World Expo next week, the Yomiuri newspaper reported, citing Japanese government sources. There were 40 advancers on the Nikkei against 180 decliners. The biggest losers by percentage were Nikon, down 4.68%, followed by Tokyo Electric, which slid 3.9%. The biggest percentage gainers were Disco, followed by Rakuten Group, which rose 4%.
Business Recorder
an hour ago
- Business Recorder
Australia, NZ dollars lean on support as stocks shrug off tariff concerns
SYDNEY: The Australian and New Zealand dollars edged up on Thursday, having managed to hold onto key support levels as global stocks shook off the latest tariff salvos from US President Donald Trump. The Aussie was helped by a surprise central bank decision to hold interest rates this week, whereas the kiwi was undermined by prospects of central bank policy easing. In the tariff world, Trump on Wednesday announced a 50% tariff on copper imports and also a 50% tariff on goods from Brazil, both to start on August 1. He also sent letters detailing tariffs to seven small trading partners. Wall Street was little bothered and ended the day higher with chip giant Nvidia hitting a market value of $4 trillion. That helped the two Antipodean currencies as they are often traded as proxies for global risk sentiment. The Aussie inched up 0.1% to $0.6544, having also eked out a 0.1% gain overnight. It kept well off Monday's low of $0.6485 due to the Reserve Bank of Australia's rate decision, with support at 65 cents. The kiwi was also 0.1% higher at $0.6005, after two sessions ending flat. It seems to have found support at 60 cents, but remained well below its nine-month peak of $0.6120. Swaps now imply a 62% chance that the Reserve Bank of New Zealand could cut interest rates in August, after holding fire in a widely expected decision on Wednesday. A total easing of 37 basis points has been priced in until February. If the RBNZ does cut in August, that could give a small boost to the Australian dollar versus the kiwi, said senior economist Kristina Clifton at the Commonwealth Bank of Australia. On the other hand, 'a deferred RBA rate cutting cycle can lend some support to AUD. But AUD/USD will mostly be driven by tariff news over the rest of the week,' Clifton said. The Aussie held at NZ$1.089, a touch below a two-month top, and fetched 95.5 yen, some distance away from a five-month peak of 96.21 yen hit on Wednesday.
Business Recorder
an hour ago
- Business Recorder
Bulls return to bourse, KSE-100 gains over 1,000 points
After observing a sharp correction in the previous session, optimism returned to the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining over 1,000 points during the opening minutes of trading on Thursday. At 10:25am, the benchmark index was hovering at 133,608.99 level, a gain of 1,032.01 points or 0.78%. Buying was observed in key sectors including automobile assemblers, cement, commercial banks, OMCs, power generation and refinery. Index-heavy stocks including PRL, HUBCO, SNGPL, INDU, HCAR, MCB, MEBL and UBL traded in the green. The bullish momentum continued amid improved economic indicators. In a historic economic milestone, Pakistan recorded its highest-ever home remittance inflows, exceeding $38 billion during the last fiscal year FY25. This unprecedented surge is credited to robust policy measures and sustained efforts by the federal government and the State Bank of Pakistan (SBP) to channelise remittances through formal avenues. On Wednesday, the PSX witnessed a sharp correction as investors opted to book profits following the market's recent record-breaking rally. The benchmark KSE-100 Index dropped by 826 points or 0.62% to settle at 132,577 points. Internationally, Asian stocks rose slightly on Thursday, riding on optimism from Nvidia's brief rise to a world-record $4 trillion valuation and as investors largely shrugged off US President Donald Trump's latest tariff salvos. US copper futures widened their premium to the London benchmark overnight after Trump announced plans to impose a 50% tariff on copper. He later said on Wednesday the levies would come into effect on August 1. Trump also turned his trade ire against Brazil on Wednesday as he threatened a punitive 50% tariff on exports to the US and issued tariff notices to seven minor trading partners. The latest moves did little to rattle markets, leaving MSCI's broadest index of Asia-Pacific shares outside Japan up 0.2%. The Nikkei fell 0.56%, while China's CSI300 blue-chip index rose 0.2% and Hong Kong's Hang Seng Index added 0.1%. EUROSTOXX 50 futures gained 0.18% and FTSE futures advanced 0.33%. This is an intra-day update
