Markets caught between earnings optimism and tariff fears
LONDON (AFP)Stock markets largely rose on Monday, as traders focused on upbeat US corporate news, but President Donald Trump's August 1 deadline for ramped-up tariffs still weighed on European indices.New York extended its positive trajectory from the previous week, which had also pulled Asia higher.In Europe, London and Frankfurt rose, but Paris sank.'As we start a new week, the focus is once again on tariffs and earnings reports,' said Kathleen Brooks, research director at trading group XTB.Investors in US equities have been encouraged by forecast-beating results from major corporations, against only a modest uptick in inflation that suggested tariffs impact was not yet a worry.That uncertainty will be part of the European Central Bank's calculation as it meets this week. Expectations are for it to hold eurozone interest rates steady, pausing a long cycle of easing.Asia's equities advance was led by Hong Kong and came after strong earnings from Taiwanese chip giant TSMC and news that US titan Nvidia will be allowed to export key semiconductors to China.The yen strengthened against the dollar after Japanese Prime Minister Shigeru Ishiba vowed to stay on even after his ruling coalition lost its majority in the upper house in elections on Sunday.In company news, Jeep maker Stellantis said it suffered a massive, 2.3-billion-euro ($2.7-billion) net loss in the first half of this year, on the back of slumping North America sales and partly from 'the early effects of US tariffs.'It shares, which have lost more than a third of their value since the start of the year, dipped early on Monday before reversing course and ending up.
Oil prices receded on worries of declining global trade.
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