China's Shanghai Composite index ends 0.70% lower
Asian stocks ended mixed on Friday despite U.S. President Donald Trump announcing a trade deal with China on rare earths and hinting at a major upcoming deal with India.
The ceasefire between Iran and Israel continued to hold and weak U.S. data fueled rate cut hopes, helping limit regional losses.
Gold dipped over 1 percent below $3,300 per ounce and the dollar index hovered near its lowest level since March 2022 ahead of the U.S. May Personal Consumption Expenditures (PCE) Price Index data due later in the session.
Oil was on track for its worst weekly loss since March as supply concerns eased.
China's Shanghai Composite index fell 0.70 percent to 3,424.23 as new data showed China's industrial profits fell 9.1 percent year on year in the first five months of the year in the face of deepening deflationary pressures and a persistent property crisis.
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Economic Times
14 minutes ago
- Economic Times
US consumer spending falls unexpectedly in May
AP FILE - A shopping cart filled with groceries sits in an aisle at an Asian grocery store in Rowland Heights, Calif., Thursday, April 3, 2025. U.S. consumer spending unexpectedly fell in May as the boost from the pre-emptive buying of goods like motor vehicles ahead of tariffs faded, while monthly inflation increases remained moderate. Consumer spending, which accounts for more than two-thirds of economic activity, dropped 0.1% last month after an unrevised 0.2% gain in April, the Commerce Department's Bureau of Economic Analysis said on Friday. Economists polled by Reuters had forecast consumer spending would edge up 0.1%. President Donald Trump's sweeping tariffs, which have led businesses and households to front-run imports and goods purchases to avoid higher prices from duties, have muddled the economic picture. Economists warned it could take time for the tariff-related distortions to wash out of the data. A record goods trade deficit in the first quarter, thanks to a deluge of imports, accounted for much of the 0.5% annualized rate of decline in gross domestic product during that period. Consumer spending also nearly braked last quarter after being propelled by households pulling forward goods purchases. Households also spent less on services last quarter, helping to restrain growth in consumer spending to only a 0.5% pace, the slowest rate since the second quarter of 2020. That data potentially puts spending on a slow growth path in the second quarter. The combination of soft consumer spending and inflation is, however, unlikely to spur the Federal Reserve to resume cutting interest rates in July. Fed Chair Jerome Powell told lawmakers this week that the U.S. central bank needed more time to gauge the impact of tariffs on prices before considering a rate cut. Economists argue that price increases have remained moderate because businesses are still selling inventory accumulated before the tariffs went into effect. They expect inflation will start picking up, beginning with consumer price data for June. The Personal Consumption Expenditures (PCE) Price Index gained 0.1% in May, matching the rise in April, the BEA said. In the 12 months through May, PCE inflation increased 2.3% after climbing 2.2% in April. Stripping out the volatile food and energy components, the PCE Price Index increased 0.2% last month. That followed a 0.1% rise in the so-called core PCE inflation in April. In the 12 months through April, core inflation advanced 2.7% after rising 2.6% in April. The Fed tracks the PCE price measures for its 2% inflation target. The central bank last week left its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December.
India Today
27 minutes ago
- India Today
Unthinkable, but...: Trump wants full removal of trade barriers in India deal
US President Donald Trump, who earlier hinted that a "very big" trade deal with India would come soon, said on Friday that his country was looking to get all the trade barriers removed, which, he said, was "unthinkable".Addressing a press conference at the White House, Trump said the US would reach a deal with India, "where we have the right to go and do trade". His remarks came ahead of his July 9 deadline to impose reciprocal I think we are going to reach a deal where we have the right to go and do trade. Right now, it's restricted. You can walk in there and you can't even think about it. We are looking to get a full trade barrier dropping, which is unthinkable. I am not sure that that is going to happen. But, as of this moment, we agree to go to India and trade...," he said. Trump said he planned to send out a letter over the next week and a half telling countries what US tariff rate they will have to pay. He also said that his July 9 trade deadline was not a fixed date."We can do whatever we want. We could extend it. We could make it shorter. I'd like to make it shorter. I'd like to just send letters out to everybody: Congratulations, you're paying 25 per cent," he reiterated that the US had made a deal with China amid a tariff war between the world's two largest TRADE TALKS SEE IMPASSEThe US President's remarks came as trade talks between India and the US hit a roadblock over disagreements on import duties for auto components, steel and farm goods, news agency Reuters reported, citing is pushing for a rollback of the proposed 26 per cent reciprocal tariff set to take effect on July 9, along with concessions on existing US tariffs on steel and auto parts. But US negotiators have not yet agreed to the demands, three Indian government officials told April 2, Trump announced reciprocal tariffs on all countries and dependencies and said the measures would come into effect from April 9. The tariffs had a baseline of 10 per cent, with the highest rate at 49 per cent. However, on April 10, Trump announced a 90-day pause after global markets crashed to record told Reuters that India has offered tariff cuts on almonds, pistachios and walnuts and was willing to extend preferential treatment for American imports in sectors like energy, autos and the impasse, Indian officials stressed their long-term commitment to the US as a trusted economic partner, while maintaining policy Minister Narendra Modi and Trump agreed in February to conclude the first phase of a bilateral trade agreement by autumn 2025 and to expand trade to USD 500 billion by 2030, from about USD 191 billion in 2024.- Ends
Hindustan Times
an hour ago
- Hindustan Times
Trump says July 9 trade deal date is not fixed date
President Donald Trump said that his self-imposed July 4 goal to pass his tax bill isn't an absolute deadline, remarks that give Republican negotiators additional breathing room as lawmakers remain at loggerheads over several issues in the massive economic package. US President Donald Trump arrives to speak in the East Room of the White House in Washington, DC, US, on Thursday, June 26, 2025.(Bloomberg) {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} 'It's important, it's not the end-all,' Trump told reporters on Friday about the Independence Day deadline. 'It can go longer, but we'd like to get it done by that time if possible.' {{^usCountry}} {{/usCountry}} {{^usCountry}} {{/usCountry}} House Speaker Mike Johnson suggested earlier Friday that the July 4 date may slip, even as he and Treasury Secretary Scott Bessent said they believed they could soon unlock a compromise over one of the key sticking points in the bill: the state and local tax deduction. Trump is planning to stay in Washington over the weekend to exert pressure on lawmakers to reach a deal on the bill, according to a White House official. Republicans remain divided over several thorny issues holding up the bill, including size of the SALT deduction, cuts to Medicaid health benefits and the price-tag of the legislation. {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^usCountry}} Bessent said that he met with a group of what he called the 'SALT Republicans' at the Treasury Department Thursday, where he said they made progress even as New York Republican Nick LaLota proclaimed he's a 'hard no' on a proposal being floated to raise the cap for only five years. {{/usCountry}} {{#usCountry}} Bessent said that he met with a group of what he called the 'SALT Republicans' at the Treasury Department Thursday, where he said they made progress even as New York Republican Nick LaLota proclaimed he's a 'hard no' on a proposal being floated to raise the cap for only five years. {{/usCountry}} {{^usCountry}} 'My sense is we're very close to a deal. It's going to help the voters in their district, but it is going to be fair for the overall American people,' Bessent told Fox Business on Friday. 'It's time for everyone to put away individual interests.' {{/usCountry}} {{#usCountry}} 'My sense is we're very close to a deal. It's going to help the voters in their district, but it is going to be fair for the overall American people,' Bessent told Fox Business on Friday. 'It's time for everyone to put away individual interests.' {{/usCountry}} {{^usCountry}} Those so-called SALT Republicans are pushing to preserve a deal included in the House bill that increased the deduction cap to $40,000, up from the $10,000 in current law. The Senate draft keeps the write-off at $10,000. {{/usCountry}} {{#usCountry}} Those so-called SALT Republicans are pushing to preserve a deal included in the House bill that increased the deduction cap to $40,000, up from the $10,000 in current law. The Senate draft keeps the write-off at $10,000. {{/usCountry}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} Some House lawmakers from New York, New Jersey and California have threatened to block the bill without an adequate SALT compromise. Talks between Bessent, House members and Senate leaders in recent days have coalesced around including a $40,000 cap in the legislation, but senators have pushed to water down other elements included in the House SALT plan, including a lower income limit to claim the credit and a slower annual increases to the write-off. The talks have been fraught, with LaLota calling an offer Bessent presented before the Treasury meeting on Thursday as 'insulting' and 'disgusting.' LaLota said then he would not go to the Treasury meeting but others attended. On Friday, LaLota said he'd heard talk of a proposal that would set the SALT cap at $40,000 for five years and then revert to $10,000 after that. {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} 'I can't be a yes on that. That just affirms the very thing I've been against for so long,' he said. New York Divisions Fellow New York Republican Mike Lawler, however, called the ongoing talks 'productive' but declined to disclose details. When asked if SALT Republicans are splintering, Lawler said, 'I'll let others speak for themselves.' Johnson told reporters Friday that he believes the long-running negotiations over the SALT deduction will be 'resolved in a manner that everybody can live with.' 'No one will be delighted about it, but that's kind of the way this works around here,' Johnson said, projecting that he believes other sticking points on the bill can be resolved Friday. Senator Markwayne Mullin, a key negotiator, added that they have spent hours negotiating alongside the White House on SALT, reiterating that neither side will feel 'great' about it, but that he hopes there will be more reasons to vote for it than against it. {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} 'The fact is: we need the SALT guys,' Mullin said on Fox News. 'It's expensive, though. It's a really, really expensive price tag.' Ongoing Talks House Budget Committee Chairman Jodey Arrington told Fox Business SALT is just one of several issues — including resolving differences over cuts to Medicaid and nutrition benefits — that still has to be addressed. He said that a key issue for many House members is the overall price tag of the bill, which may prove to be a challenge if the Senate produces a more costly version than the House proposal. Dozens of House conservatives in coordination with four Senate conservatives are raising objections to the cost of the House bill. They want to see deeper cuts to the safety net and are angered that some cuts have been tossed out of the bill by the Senate parliamentarian. {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} 'The Senate has to work through some issues. I'm not as concerned about SALT and about the healthcare and welfare reforms,' Arrington said. 'I'm mostly concerned about the cost.' Trump has said he wants Congress to send him the final bill to sign by July 4, a deadline that is looking increasingly elusive as lawmakers grind through the talks. The Senate is planning to stay in Washington through the weekend and could begin the voting process in the coming days. SHARE THIS ARTICLE ON
