US markets hit new heights despite Canada trade talks blow
Wall Street staged an end-of-week rally with American indices closing at new highs, boosted by the ceasefire in the Middle East and a renewed appetite for shares in artificial intelligence companies.
It was a close run thing, however. While the S&P 500 and Nasdaq had comfortably risen above previous records, the gains were pared or even erased after President Trump said he was calling off trade negotiations with Canada, citing its digital services tax and adding that he would set their tariff rate within a week.
At the close of official trading in New York on Friday night, the S&P 500 had its first record since February with a rise of 0.5 per cent to 6,173.07 and a weekly increase of 3.4 per cent.
Nvidia, the chip designer, led the charge back into AI stocks with a rise of 1.7 per cent to $157.75, a third successive record close and increasing its stock market valuation to $3.9 trillion, ahead of Microsoft's $3.7 trillion.
The AI effect was also enough to take the technology-heavy Nasdaq Composite to its first record close since December with a rise of 0.5 per cent to 20,273.46, up 4.3 per cent over the five days.
The upbeat market mood was in contrast to the start of the week after the US bombing raid on Iran's nuclear facilities and the exchanges of missiles between Israel and Iran, which sent the price of Brent crude, the international benchmark, closer to $80 a barrel.
The oil price had its steepest weekly decline since March 2023. In New York it was trading 4 cents a barrel higher on the day at $67.77, down 12 per cent on the week. Gold lost some of its recent shine, down 1.8 per cent on the day at $3,273.70 an ounce, after Trump said on Thursday night that the US had signed a trade deal with China.
On the currency markets, after a brief bout of buying early in the week, the dollar continued to lose favour with traders, leaving the pound close to the near four-year high it reached on Thursday, though a mid-afternoon sell-off left it 0.25 per cent down at $1.3691.
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Glasgow Times
an hour ago
- Glasgow Times
Trump says he is terminating trade talks with Canada over tax on tech firms
Mr Trump, in a post on his social media network, said Canada had just informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. The tax is set to go into effect on Monday. 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' Mr Trump said in his Truth Social post. Mr Trump's announcement was the latest move in the trade war he has launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president repeatedly suggesting it would be absorbed as a US state. Canadian Prime Minister Mark Carney (Patrick Doyle/The Canadian Press via AP) Canadian Prime Minister Mark Carney said on Friday that his country would 'continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation'. Mr Trump later said he expects that Canada will remove the tax. 'Economically we have such power over Canada. We'd rather not use it,' Mr Trump said in the Oval Office. 'It's not going to work out well for Canada. They were foolish to do it.' When asked if Canada could do anything to restart talks, he suggested Canada could remove the tax, predicted it will but said: 'It doesn't matter to me.' Mr Carney visited Mr Trump in May at the White House. Mr Trump last week travelled to Canada for the G7 summit in Alberta, where Mr Carney said Canada and the US had set a 30-day deadline for trade talks. The digital services tax will hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving US companies with a two billion US dollar (£1.4 billion) bill due at the end of the month. 'We appreciate the Administration's decisive response to Canada's discriminatory tax on US digital exports,' Matt Schruers, chief executive of the Computer & Communications Industry Association, said in a statement. Canada and the US have been discussing easing a series of steep tariffs Mr Trump imposed on goods from America's neighbour. The Republican president earlier told reporters that the US was soon preparing to send letters to different countries, informing them of the new tariff rate his administration would impose on them. Mr Trump has imposed 50% tariffs on steel and aluminium as well as 25% tariffs on cars. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire. Canada and Mexico face separate tariffs of as much as 25% that Mr Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Mr Trump's first term. Addressing reporters after a private meeting with Republican senators on Friday, Treasury Secretary Scott Bessent declined to comment on news that Mr Trump had ended trade talks with Canada. 'I was in the meeting,' Mr Bessent said before moving on to the next question. About 60% of US crude oil imports are from Canada, and 85% of US electricity imports as well. Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager to obtain. About 80% of Canada's exports go to the US. Daniel Beland, a political science professor at McGill University in Montreal, said it is a domestic tax issue, but it has been a source of tensions between Canada and the US for a while because it targets US tech giants. 'The Digital Services Tax Act was signed into law a year ago so the advent of this new tax has been known for a long time,' Mr Beland said. 'Yet, President Trump waited just before its implementation to create drama over it in the context of ongoing and highly uncertain trade negotiations between the two countries.'
The Independent
an hour ago
- The Independent
Starmer urged to act after Trump threatens Commonwealth ally Canada
Keir Starner is facing calls to act after Donald Trump cut off talks with Canada and threatened the Commonwealth country with more trade tariffs. Just weeks before president Trump is due to meet King Charles, Canada's official head of state, on a visit to the UK, he claimed he had 'such power' over the country but added 'I'd rather not use it.' In a move that caused market turmoil amid fears of a renewal of Trump's trade war, he said he would tell Canada the levies they will have to pay on goods entering the US '....within the next seven day period.' The call for Starmer to intervene comes after a similar diplomatic row exploded earlier this year when the PM declined to back Canada against Trump's ambitions to turn it into the 51st state of the USA. A Conservative MP in Canada and a former ambassador were among those to criticise the UK prime minister for failing to stand up for their country. The latest attack on Canada comes at a a difficult time for the Labour leader. He is hoping to woo President Trump on a historic second state visit to the UK in September, when he will meet the King, a keen champion of the Commonwealth. Liberal Democrat deputy leader Daisy Cooper said: "Once again, Donald Trump has shown contempt for his allies by continuing his damaging war on trade. With such an unreliable partner in the White House, the government needs to strengthen our economy, by establishing a bespoke UK-EU Customs Union, and work closer with our European and Commonwealth allies to create a coalition of the willing to end Trump's trade war." SNP MP Stephen Gethins said: 'The Trump project, just like Brexit, is about throwing up barriers to trade with our partners that will cost jobs and damage public finances. The UK needs to be building bridges with states like Canada and the EU that will help deliver sustainable economic growth. There have to be serious questions around the Labour government's judgement over the offer of a state visit to Trump.' The latest row erupted over Canada's plans for a digital services tax. In a post on Truth Social, the president complained that he had 'just been informed' of the move, which could leave some American technology companies with large bills. Trump called the plans 'a direct and blatant attack on our Country.' 'They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also,' he wrote, added that as a result the US was 'hereby terminating ALL discussions on Trade with Canada, effective immediately.' Trump later claimed the US has 'a great relationship with the people of Canada' but that its government, headed by the former governor of the Bank of England Mark Carney, had made things 'very difficult'. He added: 'We don't want to do anything bad, but ... economically ... we have such power over Canada. I'd rather not use it, but they did something with our tech companies today, trying to copy Europe.'
Daily Mirror
an hour ago
- Daily Mirror
M&S' 'flattering' £29.50 linen top is 'light and comfortable'
Shoppers love the 'light and comfortable' linen top that's been praised for its 'flattering' shape M&S shoppers are smitten with a "stylish" linen top that's "very flattering" and "comfortable." Customers have shared glowing reviews for the £29.50 Linen Rich Square Neck Vest Top. Not all sizes are available, but the top is currently in stock in sizes 8 to 20. M&S ' product description says: "Breeze through sunny days in style with this lightweight linen-blend top. It's designed in a regular fit with a flattering square neckline for a modern touch. The sleeveless style keeps you cool while offering effortless freedom of movement." Similar styles from M&S include the £25 Linen Rich Square Neck Vest Top, the £35 Linen Rich V-Neck Lace Insert Top, and the £39.50 Linen Rich Cutwork Detail Top. Elsewhere, various retailers offer alternative styles. For example, Next has a £26.50 White Sleeveless Shirt With Linen that could suit shoppers looking for workwear, Nobody's Child has a £42 White Linen-blend Swing Top that could impress those looking for a relaxed fit. Seasalt Cornwall also offers a £47.95 Lighthouse Station Linen Vest. That said, shoppers may still prefer the M&S Linen Rich Square Neck Vest Top. It's loved by reviewers, who praised the look and feel of the product. However, some reported sizing issues, with many commenting on the straps. One happy shopper said: "Lovely material, falls really nicely, wide straps are very flattering, bought for summer, good with jeans and satin skirt etc." A second reviewer wrote: "Very flattering, light and comfortable summer top." Another fan agreed: "Easy and flattering. Some of us need a sun top which is more than a vest top. This one ticks that box very well. Good feel to the fabric." However, a shopper who had a problem with the fit said: "This top is light weight and very versatile. My only gripe with it is that it makes this weird looking crease in the middle & the straps fall down (a lot!) I suggest sizing down." A similar response read: "This is a nice top and this may be down to me but when trying it on the left shoulder kept slipping off onto my arm, so returned it." Someone else replied: "Great fabric. Good value. But no strap adjustment. "Liked the style and fabric. Good cover on the top, however had to return as the straps would not stay up when I tried it on and there is no adjustment. Bought for holiday." There were also mixed views on the silhouette. A reviewer shared: "Lovely top which will be perfect in warmer weather. My only slight criticism is that it's rather shapeless but I'm sure I'll be grateful for it being baggy when I'm hot." But another wrote: "I love a denim top, this is nice but I didn't like it quite enough to keep for the price. It's nice fabric but I would have liked it to have a bit more structure. The neckline is a good shape though." Despite some criticism, the majority of shoppers liked the top. For instance, someone said they liked the top when they sized down, explaining: "Fabric is soft and looks very fresh for summer. But it sizes very big. "Buy small otherwise it does a strange crease in the front." Another pleased fan said: "Love this top, great quality, comfortable and stylish."
