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Asian shares fall as US unleashes fresh tariffs, jobs data up next
Late on Thursday, President Donald Trump signed an executive order imposing tariffs ranging from 10 per cent to 41 per cent on US imports from dozens of countries and foreign locations. Rates were set at 25 per cent for India's US-bound exports, 20 per cent for Taiwan's, 19 per cent for Thailand's and 15 per cent for South Korea's.
He also increased duties on Canadian goods to 35 per cent from 25 per cent for all products not covered by the US-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal.
Taiwan's President Lai Ching-te said the rate is "temporary" and is expected to be reduced further once a deal is reached.
"At this point, the reaction in markets has been modest, and I think part of the reason for that is the recent trade deals with the EU, Japan, and South Korea have certainly helped to cushion the impact," said Tony Sycamore, analyst at IG.
"The market now, I think, has probably taken the view that these trade tariff levels can be renegotiated, can be walked lower over the course of time."
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 per cent, bringing the total loss this week to 1.8 per cent. South Korea's KOSPI plunged 3 per cent while Taiwanese shares fell 0.9 per cent.
Japan's Nikkei dropped 0.4 per cent. Chinese blue chips were flat and Hong Kong's Hang Seng index eked out a small gain of 0.2 per cent.
EUROSTOXX 50 futures slipped 0.2 per cent. Both Nasdaq futures and S&P 500 futures eased 0.2 per cent after earnings from Amazon failed to live up to lofty expectations, sending its shares tumbling 6.6 per cent after hours.
Apple , meanwhile, forecast revenue well above analysts' estimates, following strong June-quarter results supported by customers buying iPhones early to avoid tariffs. Its shares were up 2.4 per cent after hours.
Overnight, Wall Street failed to hold onto an earlier rally. Data showed inflation picked up in June, with new tariffs pushing prices higher and stoking expectations that price pressures could intensify, while weekly jobless claims signalled the labour market remained on a stable footing.
Fed funds futures imply just a 39 per cent chance of a rate cut in September, compared with 65 per cent before the Federal Reserve held rates steady on Wednesday, according to the CME's FedWatch.
Much now will depend on the US jobs data due later in the day and any upside surprise could price out the chance for a cut next month. Forecasts are centred on a rise of 110,000 in July, while the jobless rate likely ticked up to 4.2 per cent from 4.1 per cent.
The greenback has found support from fading prospects of imminent US rate cuts, with the dollar index up 2.5 per cent this week against its peers to 100.1, the highest level in two months. That is its biggest weekly rise since late 2022.
The Canadian dollar was little impacted by the tariff news, having already fallen about 1 per cent this week to a 10-week low.
The yen was the biggest loser overnight, with the dollar up 0.8 per cent to 150.7 yen, the highest since late March. The Bank of Japan held interest rates steady on Thursday and revised up its near-term inflation expectation but Governor Kazuo Ueda sounded a little dovish.
Treasuries were largely steady on Friday. Benchmark 10-year US Treasury yields ticked up 1 basis point to 4.374 per cent, after slipping 2 bps overnight.
In commodity markets, oil prices were steady after falling 1 per cent overnight. US crude rose 0.1 per cent to $69.36 per barrel, while Brent was at $71.84 per barrel, up 0.2 per cent.
Spot gold prices were off a fraction at $3,286 an ounce.
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The Hindu
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NDTV
30 minutes ago
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an hour ago
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Schengen visa of 29 European countries to get digital; will greatly benefit Indians as...
London: The Schengen visa of 29 countries of Europe is going to be completely digital as the European Union (EU) is preparing to do away with the traditional Schengen visa sticker. A secure digital barcode will be imprinted in its place. The foreign ministers of the European Union had decided last year to transfer the visa application process for travel to the Schengen area to the online platform. After this, a new change has been made. However, this is not the only change that travellers going to Europe will see. Apart from this, many changes are going to be made to the visa. What is the use of the 2D barcode? The European Union is moving towards digital innovation in the form of a secure 2D barcode. This is one of the biggest reforms made in the Schengen visa system in decades. This move will speed up the process and provide a completely digital travel experience. On reaching the border, passengers will now scan the barcode, which will be directly linked to the centralized EU visa system. This will give immigration officials information about the validity of the visa and personal data. What benefit will Indian travellers get? The European Union had issued 70,000 digital Schengen visas as a test to the players and staff participating in the 2024 Paris Olympics. After its success, it is now being fully implemented. People coming to Europe on a Schengen visa will have to submit their biometrics in person for the first time. This process will be fast and seamless for those who travel regularly to Europe. Indian citizens travelling to Europe are going to get many benefits from the change in the Schengen visa. The most important of these is that the digital visa will facilitate entry through biometric e-gate access. This will greatly reduce the need for paperwork. Things will be much easier, especially for those who travel to Europe regularly. What is the Schengen Visa? Schengen is a short-term visa, which allows travel within the Schengen area for up to 90 days. As such, it is quite popular among people who love to travel. The Schengen area includes 29 European countries like Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Spain, Sweden, and Switzerland.
