Wall Street Live: Dow Jones, S&P 500, Nasdaq rise after US-EU trade deal
At the open, the Dow Jones Industrial Average rose 45.1 points, or 0.10%, to 44946.98. The S&P 500 rose 9.0 points, or 0.14%, to 6397.69, while the Nasdaq Composite rose 68.1 points, or 0.32%, to 21176.401.
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Mint
44 minutes ago
- Mint
Dollar rises against major peers after US-EU trade pact
By Alun John and Chibuike Oguh NEW YORK/LONDON (Reuters) -The dollar rose against the euro and yen on Monday as markets were buoyed by a trade agreement between the U.S. and the EU, which brought some market certainty and averted a global trade war. U.S. President Donald Trump and European Commission President Ursula von der Leyen reached a framework trade agreement on Sunday, which provides for an import tariff of 15% on EU goods, half the rate Trump had threatened from August 1. That follows last week's U.S. agreement with Japan, while top U.S. and Chinese economic officials resumed talks in Stockholm on Monday, aiming to extend a truce by three months and keep sharply higher tariffs at bay. "If you rewind back to early April or Liberation Day, the overarching theme has been selling US assets because of uncertainties due to the new trade regime," said Eugene Epstein, head of structuring for North America at Moneycorp in New Jersey. "I would argue that what you're seeing is some resemblance of return to normalcy." The dollar rose against the safe-haven Swiss franc, up 1% at 0.80325 francs. It rose against the Japanese yen, up 0.59% at 148.535. The euro was last down 1.25% at $1.159125, set for its biggest daily loss since mid-May, reversing an initial knee-jerk rise in Asia trade as investors' focus shifted to what an easing in global trade tensions meant for the dollar overall. The dollar tumbled sharply earlier this year, particularly against the euro, as fears that dramatically higher tariffs on trade with most of its major partners would hurt the U.S. economy caused investors to consider shifting out of U.S. assets. U.S. stocks were mostly lower but still trading near record highs. The Dow Jones Industrial Average fell 0.3%, the S&P 500 dipped 0.15% and the Nasdaq Composite rose 0.14%. Normally, the gap between yields on government bonds is a major factor for currency moves, but at present, the euro is significantly higher than the gap between U.S. and euro zone yields would imply. "If you think about what we expected in the beginning of the year, no one really thought that the euro was going to be so strong. We all thought that, especially post Liberation Day, the dollar will remain strong," said Anthi Tsouvali, multi-asset strategist at UBS Wealth. "We continue to see the dollar weakening." The euro fell against the yen and sterling, having hit a one-year high on the Japanese currency and a two-year high on the pound at the start of trade. The dollar strengthened against the pound, which was 0.67% lower at $1.33545. As concerns subside about the economic fallout from punishing tariffs, investor attention is shifting to corporate earnings and central bank meetings in the United States and Japan in the next few days. Both the Fed and the Bank of Japan are expected to hold rates steady at policy meetings this week, but traders will watch subsequent comments to gauge the timing of the next moves. Investors will also be watching to see Trump's reaction to the Fed's decision. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 1.5 basis points to 3.932%, from 3.917% late on Friday. Trump has been putting the Fed under heavy pressure to make significant rate cuts, and Trump appeared close to trying to fire Powell last week, but backed off with a nod to the market disruption that would likely follow. In cryptocurrencies, bitcoin fell 0.52% to $118,205.38. Ethereum declined 0.61% to $3,800.90. Descripti RIC Last U.S. Pct YTD High Low on Close Chan Pct Bid Bid Dollar 98.65 97.612 1.08 -9.06 98.68 97.4 Euro/Doll 1.158 1.1738 -1.2 11.95 $1.17 $1.1 Dollar/Ye 148.5 147.66 0.6% -5.6% 148.5 147. Euro/Yen 172.1 173.35 -0.6 5.48% 173.8 172. Dollar/Sw 0.803 0.7953 1.01 -11.4 0.803 0.79 Sterling/ 1.335 1.3445 -0.6 6.76% $1.34 $1.3 Dollar/Ca 1.373 1.3697 0.28 -4.48 1.374 1.36 Aussie/Do 0.651 0.6565 -0.7 5.31% $0.65 $0.6 Euro/Swis 0.930 0.933 -0.2 -0.89 0.935 0.93 Euro/Ster 0.867 0.8739 -0.7 4.88% 0.876 0.86 NZ 0.596 0.6016 -0.8 6.65% $0.60 0.59 Dollar/No 10.19 10.147 0.51 -10.2 10.21 10.1 Euro/Norw 11.81 11.921 -0.8 0.42% 11.93 11.8 Dollar/Sw 9.614 9.5035 1.17 -12.7 9.619 9.49 Euro/Swed 11.14 11.164 -0.2 -2.83 11.19 11.1 (Reporting by Chibuike Oguh in New York and Rocky Swift in Tokyo and Alun John in London; Additional reporting by Twesha Dikshit and Kevin Buckland; Editing by Kevin Liffey, Nick Zieminski, Rod Nickel)
Indian Express
an hour ago
- Indian Express
EU trade talks: India to offer regulatory certainty in manufacturing to woo FDI
In the first such offer made during trade deal negotiations, India is working on a 'new chapter' aimed at extending long-term regulatory certainty in the domestic manufacturing sector to attract investment from the European Union (EU), The Indian Express has learnt. This comes in the backdrop of shared concerns between India and the EU over Chinese overcapacity, which is viewed as a threat to domestic manufacturing of critical products such as pharmaceuticals, electronics and defence requirements, among others. 'In the EU deal, one of the new chapters that has come in is about investment in non-services, which is a new element where they (EU) are looking at certainty on the commitments for FDI in non-services sectors — basically the manufacturing sector,' a senior government official said. 'There are two parts to it. One is deciding on sectors where India will allow 100 per cent FDI. Second, there are a number of conditions on things such as 'local employment', 'local value addition', 'use of local raw materials' and conditions around whether there will be local partners and joint ventures or not,' the official said. Another person aware of the development told The Indian Express that the government had undertaken extensive stakeholder consultations to work on the investment chapter that was offered to the EU during the last round of negotiations. This comes as India has begun seeking to attract investments from Western countries in exchange for lowering tariffs on key sectors. For instance, India has allowed 100 per cent FDI in telecom for the UK under the trade deal. In the insurance sector, the FDI ceiling has been kept at 74 per cent, providing investment certainty for UK insurers. A similar strategy was followed in the European Free Trade Association (EFTA) deal. India and the four-nation EFTA — an intergovernmental grouping comprising Iceland, Liechtenstein, Norway and Switzerland — signed a trade pact in March 2024, under which EFTA countries have committed to investing $100 billion in India over a 15-year period. However, officials indicated that the investment chapter in the EU deal would be far more extensive and legally robust. Shared challenge of China India and the EU have both been facing several challenges, particularly in the renewable energy sector. Another government official told The Indian Express that the Indian industry has been encountering pricing challenges, especially while trying to scale up the solar energy sector, and that India will have to work with 'Western countries' to achieve competitiveness and tackle the China challenge. According to a parliamentary report released last year, the EU is concerned about China's dominance in critical technologies, as China holds a leading global manufacturing position in several areas, exposing the EU to potential risks. The EU has said these sectors include raw or processed materials for robotics, as well as clean technologies including solar PV wafers, EV batteries and wind turbine blades. 'Despite a general decline in Chinese FDI into the EU since 2016 and a shift towards greenfield investments, China still holds stakes (full or partial ownership) in critical EU activities and infrastructure. These include automotive, fintech, advanced manufacturing, ports and shipyards, and electronics,' the parliamentary report said. India–EU negotiations making progress An EU trade deal status report earlier this month stated that India and the EU had made substantial progress on the text dealing with 'services and investment', marking a significant step forward towards concluding the Free Trade Agreement (FTA) that both sides aim to sign by the end of the year. The EU report also noted that negotiators had made substantial progress on the investment text, and that they had also made very good progress on rules for state-to-state mediation. Progress on dispute settlement is significant, as it suggests a breakthrough on long-standing EU concerns regarding investment protection in India. A European Parliament report had earlier expressed regret that 'uncertainties remain for EU investors, notably as a result of India's decision to unilaterally terminate all its bilateral investment treaties (BITs) in 2016'. However, India has since begun addressing the issue by negotiating new investment treaties under a revised framework. New chapter With Brussels looking at certainty on the commitments for FDI in India's manufacturing sector, investment in non-services opens a new chapter in the deal with the EU. The government had undertaken extensive stakeholder consultations on the investment chapter. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
NDTV
an hour ago
- NDTV
Trump Eyes 'World Tariff' Of 15-20% For Most Countries
President Donald Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he imposed in April. Trump told reporters his administration will notify some 200 countries soon of their new "world tariff" rate. "I would say it'll be somewhere in the 15 to 20% range," Trump told reporters, sitting alongside British Prime Minister Keir Starmer at his luxury golf resort in Turnberry, Scotland. "Probably one of those two numbers." Trump, who has vowed to end decades of US trade deficits by imposing tariffs on nearly all trading partners, has already announced higher rates of up to 50% on some countries, including Brazil, starting on Friday. The announcements have spurred feverish negotiations by a host of countries seeking lower tariff rates, including India, Pakistan, Canada, and Thailand, among others. The US president on Sunday clinched a huge trade deal with the European Union that includes a 15% tariff on most EU goods, $600 billion of investments in the US by European firms, and $750 billion in energy purchases over the next three years. That followed a $550-billion deal with Japan last week and smaller agreements with Britain, Indonesia, and Vietnam. Other talks are ongoing, including with India, but prospects have dimmed for many more agreements before Friday, Trump's deadline for deals before higher rates take effect. Trump has repeatedly said he favors straightforward tariff rates over complex negotiations. "We're going to be setting a tariff for essentially, the rest of the world," he said again on Monday. "And that's what they're going to pay if they want to do business in the United States. Because you can't sit down and make 200 deals." Canadian Prime Minister Mark Carney said on Monday trade talks with the US were at an intense phase, conceding that his country was still hoping to walk away with a tariff rate below the 35% announced by Trump on some Canadian imports. Carney conceded this month that Canada - which sends 75% of its exports to the United States - would likely have to accept some tariffs.
