Stocks diverge, as US inflation puts focus on Trump's tariffs
LONDON (AFP)Global stock markets went in different directions on Tuesday, as an uptick in US inflation suggested President Donald Trump's tariffs could be beginning to feed into the American economy.New York was generally trading higher on the back of healthy results from major US banks and buoyant news in the tech sector.The S&P 500 and Nasdaq were up, though the Dow Jones was struggling.Most Asian indices rose but Europe's stock markets slipped into the red late in the day.The US consumer price index for June showed an acceleration to 2.7 percent from a year earlier, in line with economists' forecasts.While US inflation remained relatively tame, analysts said businesses were working through stockpiles amassed in anticipation of Trump's duties and further price rises could be expected later this year.Since April, the United States has imposed a baseline 10-percent tariff on goods imported from almost all trading partners, with steeper levies on steel, aluminium and cars.Trump has threatened 30-percent tariffs on European Union and Mexican goods from August 1 if they do not cut trade deals.The US Federal Reserve, which has an inflation target of two percent, could cut rates in September -- but not if the tariffs also end up putting a brake on US economic growth.China, which has negotiated a US tariff truce, issued economic growth data that met expectations, largely thanks to an April-June export surge to get ahead of Trump's levies.But the US president on Monday warned of new tariffs of up to 100 percent on Russia's trading partners -- which include China -- if Moscow does not end its war on Ukraine within 50 days.Even though Russia is a major crude producer, oil prices dropped after Trump's announcement and continued lower on Tuesday.Meanwhile, OPEC said in its latest monthly market report it expected its production forecasts for this year and next to hold, despite uncertainties generated by the US tariffs.It forecast that oil demand would rise by 1.3 million barrels in 2025 and again in 2026."Continued robust global economic growth is expected... despite ongoing US-centred trade challenges and geopolitical uncertainties," it said.In corporate news, US banks JPMorgan Chase and Wells Fargo posted better-than-expected second-quarter results.JPMorgan boss Jamie Dimon described the US economy as "resilient" while facing "significant risks", including over tariffs uncertainty.And tech darling Nvidia's share price jumped after it said US export restrictions will be eased to allow it to sell its H20 artificial intelligence chips to China.That gave fuel to the Nasdaq, which had closed on Monday on another record high.
Bitcoin slid on likely profit-taking, after having hit a record high above $123,200 on Monday, thanks to optimism over possible regulatory changes for crypto assets in the US.
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Sovereignty and self-determination cannot coexist with fragmentation, dependency and occupation. This struggle must take precedence over all others - not as a vague ideal, but as a strategic necessity. The twilight of American primacy may not come overnight, but it is clearly underway. Its uncritical alignment with Israeli extremism risks sparking another wave of regional unrest - an Arab Spring 2.0 - directed not only at domestic autocrats, but also at dismantling Zionist racist structures and the US imperial order that sustains them. In this critical moment, the peoples of the Arab and Muslim world must chart a new course - one that asserts agency, reclaims sovereignty and redefines their place in a just and multipolar global order. The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Eye.
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Trump tariffs threaten US economy as much as European one, says German finmin
U.S. President Donald Trump's tariffs threaten the American economy at least as much the European one, German Finance Minister Lars Klingbeil said on Wednesday, calling for a "fair deal" with the Americans. "Trump's tariffs have only losers," Klingbeil said. The 30% tariff on European goods threatened by Trump would, if implemented, be a game-changer for Europe, wiping out whole chunks of transatlantic commerce and forcing a rethink of its export-led economic model. "We are experiencing global trade conflicts, and we are firmly and jointly convinced that European sovereignty is all the more important in these times," Klingbeil said in Berlin, speaking to the press with his French counterpart, Eric Lombard. If a deal is not possible, decisive countermeasures are needed. "To sum up: Our hand remains extended, but we will not go along with everything, possible countermeasures must continue to be prepared," Klingbeil said. "On this, France and Germany are in complete agreement." (Reporting by Maria Martinez, Editing by Miranda Murray)
