Stocks and dollar drift as US shifts tariff goal posts, oil skids
LONDON, (REUTERS)Stocks edged downwards and the dollar drifted near multi-year lows on Monday, after United States officials flagged a delay on tariffs but failed to provide specifics on the changes, while oil prices slid as OPEC+ opened the supply spigots more than expected.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, President Donald Trump said on Sunday, with the higher rates to take effect on August 1.Trump in April announced a 10% base tariff rate on most countries and higher "reciprocal" rates ranging up to 50%, with an original deadline of this Wednesday. However, Trump also said levies could range in value from "maybe 60% or 70%".With very few actual trade deals done, analysts suspect the date will be pushed out, though it was still not clear if the new deadline applied to all trading partners or just some.Investors have grown somewhat used to the uncertainty surrounding US trade policy and the initial market reaction was cautious. S&P 500 futures fell 0.44% and Nasdaq futures were down 0.6% in early European trading hours.Europe's benchmark STOXX index was down just 0.02%, while MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.6%.The muted market reaction to the latest tariff twist showed that investors were becoming more attuned to the cycle of dramatic lurches in US trade policy under Trump, analysts said.Safe-haven bonds were better bid, with 10-year Treasury yields down almost 2 basis points at 4.3379%.Major currencies were mixed as the dollar index nudged up 0.4% to 97.292. The euro held at $1.1738, just short of last week's top of $1.1830, while the dollar was 0.3% firmer at 145.02 yen.The export-exposed Australian dollar was again used as a proxy for trade risk and fell 0.8% to $0.6500.In commodity markets, gold slipped 0.7% to $3,311 an ounce , though it did gain almost 2% last week as the dollar fell.Oil prices slid anew after the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by a larger-than-expected 548,000 barrels per day in August.
Brent dropped 0.4% to $68.01 a barrel, while U.S. crude fell 1.1% to $65.28 per barrel.
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