Analysts see more upside for insurance giants after FY25's stellar run
IAG, behind the NRMA Insurance brand, delivered 33 per cent total return, while QBE, which operates in 27 countries, gained 44 per cent. Both outperformed the S&P/ASX 200's 15 per cent return.
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The Advertiser
10 hours ago
- The Advertiser
Stocks slump on latest tariffs, soft jobs data
US stocks slumped on Friday, and the S&P suffered its biggest daily percentage decline in more than two months as new US tariffs on dozens of trading partners and a surprisingly weak jobs report spurred selling pressure. Also weighing on equities was an 8.3 per cent tumble in shares after the company posted quarterly results but failed to meet lofty expectations for its Amazon Web Services cloud computing unit. Just hours before the tariff deadline on Friday, President Donald Trump signed an executive order imposing duties on US imports from countries, including Canada, Brazil, India and Taiwan, in his latest round of levies as countries attempted to seek ways to reach better deals. Further denting confidence in the economic picture, data showed US job growth slowed more than expected in July while the prior month's report was revised sharply lower, indicating the labour market may be starting to crack. The report significantly pushed up expectations the Federal Reserve will cut interest rates at its September meeting. "There's no way to pretty-up this report. Previous months were revised significantly lower where the labour market has been on stall-speed," said Brian Jacobsen, Chief Economist at Annex Wealth Management in Menomonee Falls, Wisconsin. "Last year the Fed messed up by not cutting in July so they did a catch-up cut at their next meeting. They'll likely have to do the same thing this year." Market expectations the Fed will cut rates by at least 25 basis points at its September meeting stood at 86.5 per cent, according to CME's FedWatch Tool, up from 37.7 per cent in the prior session. The Dow Jones Industrial Average fell 542.40 points, or 1.23 per cent, to 43,588.58, the S&P 500 lost 101.38 points, or 1.60 per cent, to 6,238.01 and the Nasdaq Composite lost 472.32 points, or 2.24 per cent, to 20,650.13. The S&P 500 recorded its biggest single-day percentage decline since May 21 while the Nasdaq suffered its biggest daily percentage drop since April 21. For the week, the S&P 500 fell 2.36 per cent, the Nasdaq declined 2.17 per cent, and the Dow fell 2.92 per cent. The CBOE Volatility Index, also known as Wall Street's fear gauge, closed up 3.66 points at 20.38, its highest close since June 20. Amazon was the biggest drag on the Dow, S&P 500 and Nasdaq and pushed the consumer discretionary index, down nearly 3.6 per cent as the worst performing of the 11 major S&P 500 sectors. Also reporting earnings was Apple, which lost 2.5 per cent after it posted a current-quarter revenue forecast well above Wall Street estimates, but CEO Tim Cook warned US tariffs would add $US1.1 billion ($A1.7 billion) in costs over the period. Stocks briefly extended declines after Trump said he ordered the commissioner of the US Bureau of Labor Statistics, Erika L. McEntarfer, to be fired in the wake of the jobs data. "(Trump) didn't seem to be disappointed with the last five jobs reports," said Art Hogan, Chief Market Strategist, B. Riley Wealth, Boston, saying that the firing stood out as irregular. "I think this is clearly something that happens in dictatorships, not in democracies." The Federal Reserve said Governor Adriana Kugler is resigning early from her term and will exit the central bank on Aug. 8, enabling President Donald Trump to select a new governor as he has ramped up pressure against Chair Jerome Powell recently to cut interest rates. Declining issues outnumbered advancers by a 2.17-to-1 ratio on the NYSE, and by a 2.69-to-1 ratio on the Nasdaq. The S&P 500 posted eight new 52-week highs and 29 new lows, while the Nasdaq Composite recorded 29 new highs and 202 new lows. Volume on US exchanges was 19.51 billion shares, compared with the 18.44 billion average for the full session over the last 20 trading days. US stocks slumped on Friday, and the S&P suffered its biggest daily percentage decline in more than two months as new US tariffs on dozens of trading partners and a surprisingly weak jobs report spurred selling pressure. Also weighing on equities was an 8.3 per cent tumble in shares after the company posted quarterly results but failed to meet lofty expectations for its Amazon Web Services cloud computing unit. Just hours before the tariff deadline on Friday, President Donald Trump signed an executive order imposing duties on US imports from countries, including Canada, Brazil, India and Taiwan, in his latest round of levies as countries attempted to seek ways to reach better deals. Further denting confidence in the economic picture, data showed US job growth slowed more than expected in July while the prior month's report was revised sharply lower, indicating the labour market may be starting to crack. The report significantly pushed up expectations the Federal Reserve will cut interest rates at its September meeting. "There's no way to pretty-up this report. Previous months were revised significantly lower where the labour market has been on stall-speed," said Brian Jacobsen, Chief Economist at Annex Wealth Management in Menomonee Falls, Wisconsin. "Last year the Fed messed up by not cutting in July so they did a catch-up cut at their next meeting. They'll likely have to do the same thing this year." Market expectations the Fed will cut rates by at least 25 basis points at its September meeting stood at 86.5 per cent, according to CME's FedWatch Tool, up from 37.7 per cent in the prior session. The Dow Jones Industrial Average fell 542.40 points, or 1.23 per cent, to 43,588.58, the S&P 500 lost 101.38 points, or 1.60 per cent, to 6,238.01 and the Nasdaq Composite lost 472.32 points, or 2.24 per cent, to 20,650.13. The S&P 500 recorded its biggest single-day percentage decline since May 21 while the Nasdaq suffered its biggest daily percentage drop since April 21. For the week, the S&P 500 fell 2.36 per cent, the Nasdaq declined 2.17 per cent, and the Dow fell 2.92 per cent. The CBOE Volatility Index, also known as Wall Street's fear gauge, closed up 3.66 points at 20.38, its highest close since June 20. Amazon was the biggest drag on the Dow, S&P 500 and Nasdaq and pushed the consumer discretionary index, down nearly 3.6 per cent as the worst performing of the 11 major S&P 500 sectors. Also reporting earnings was Apple, which lost 2.5 per cent after it posted a current-quarter revenue forecast well above Wall Street estimates, but CEO Tim Cook warned US tariffs would add $US1.1 billion ($A1.7 billion) in costs over the period. Stocks briefly extended declines after Trump said he ordered the commissioner of the US Bureau of Labor Statistics, Erika L. McEntarfer, to be fired in the wake of the jobs data. "(Trump) didn't seem to be disappointed with the last five jobs reports," said Art Hogan, Chief Market Strategist, B. Riley Wealth, Boston, saying that the firing stood out as irregular. "I think this is clearly something that happens in dictatorships, not in democracies." The Federal Reserve said Governor Adriana Kugler is resigning early from her term and will exit the central bank on Aug. 8, enabling President Donald Trump to select a new governor as he has ramped up pressure against Chair Jerome Powell recently to cut interest rates. Declining issues outnumbered advancers by a 2.17-to-1 ratio on the NYSE, and by a 2.69-to-1 ratio on the Nasdaq. The S&P 500 posted eight new 52-week highs and 29 new lows, while the Nasdaq Composite recorded 29 new highs and 202 new lows. Volume on US exchanges was 19.51 billion shares, compared with the 18.44 billion average for the full session over the last 20 trading days. US stocks slumped on Friday, and the S&P suffered its biggest daily percentage decline in more than two months as new US tariffs on dozens of trading partners and a surprisingly weak jobs report spurred selling pressure. Also weighing on equities was an 8.3 per cent tumble in shares after the company posted quarterly results but failed to meet lofty expectations for its Amazon Web Services cloud computing unit. Just hours before the tariff deadline on Friday, President Donald Trump signed an executive order imposing duties on US imports from countries, including Canada, Brazil, India and Taiwan, in his latest round of levies as countries attempted to seek ways to reach better deals. Further denting confidence in the economic picture, data showed US job growth slowed more than expected in July while the prior month's report was revised sharply lower, indicating the labour market may be starting to crack. The report significantly pushed up expectations the Federal Reserve will cut interest rates at its September meeting. "There's no way to pretty-up this report. Previous months were revised significantly lower where the labour market has been on stall-speed," said Brian Jacobsen, Chief Economist at Annex Wealth Management in Menomonee Falls, Wisconsin. "Last year the Fed messed up by not cutting in July so they did a catch-up cut at their next meeting. They'll likely have to do the same thing this year." Market expectations the Fed will cut rates by at least 25 basis points at its September meeting stood at 86.5 per cent, according to CME's FedWatch Tool, up from 37.7 per cent in the prior session. The Dow Jones Industrial Average fell 542.40 points, or 1.23 per cent, to 43,588.58, the S&P 500 lost 101.38 points, or 1.60 per cent, to 6,238.01 and the Nasdaq Composite lost 472.32 points, or 2.24 per cent, to 20,650.13. The S&P 500 recorded its biggest single-day percentage decline since May 21 while the Nasdaq suffered its biggest daily percentage drop since April 21. For the week, the S&P 500 fell 2.36 per cent, the Nasdaq declined 2.17 per cent, and the Dow fell 2.92 per cent. The CBOE Volatility Index, also known as Wall Street's fear gauge, closed up 3.66 points at 20.38, its highest close since June 20. Amazon was the biggest drag on the Dow, S&P 500 and Nasdaq and pushed the consumer discretionary index, down nearly 3.6 per cent as the worst performing of the 11 major S&P 500 sectors. Also reporting earnings was Apple, which lost 2.5 per cent after it posted a current-quarter revenue forecast well above Wall Street estimates, but CEO Tim Cook warned US tariffs would add $US1.1 billion ($A1.7 billion) in costs over the period. Stocks briefly extended declines after Trump said he ordered the commissioner of the US Bureau of Labor Statistics, Erika L. McEntarfer, to be fired in the wake of the jobs data. "(Trump) didn't seem to be disappointed with the last five jobs reports," said Art Hogan, Chief Market Strategist, B. Riley Wealth, Boston, saying that the firing stood out as irregular. "I think this is clearly something that happens in dictatorships, not in democracies." The Federal Reserve said Governor Adriana Kugler is resigning early from her term and will exit the central bank on Aug. 8, enabling President Donald Trump to select a new governor as he has ramped up pressure against Chair Jerome Powell recently to cut interest rates. Declining issues outnumbered advancers by a 2.17-to-1 ratio on the NYSE, and by a 2.69-to-1 ratio on the Nasdaq. The S&P 500 posted eight new 52-week highs and 29 new lows, while the Nasdaq Composite recorded 29 new highs and 202 new lows. Volume on US exchanges was 19.51 billion shares, compared with the 18.44 billion average for the full session over the last 20 trading days. US stocks slumped on Friday, and the S&P suffered its biggest daily percentage decline in more than two months as new US tariffs on dozens of trading partners and a surprisingly weak jobs report spurred selling pressure. Also weighing on equities was an 8.3 per cent tumble in shares after the company posted quarterly results but failed to meet lofty expectations for its Amazon Web Services cloud computing unit. Just hours before the tariff deadline on Friday, President Donald Trump signed an executive order imposing duties on US imports from countries, including Canada, Brazil, India and Taiwan, in his latest round of levies as countries attempted to seek ways to reach better deals. Further denting confidence in the economic picture, data showed US job growth slowed more than expected in July while the prior month's report was revised sharply lower, indicating the labour market may be starting to crack. The report significantly pushed up expectations the Federal Reserve will cut interest rates at its September meeting. "There's no way to pretty-up this report. Previous months were revised significantly lower where the labour market has been on stall-speed," said Brian Jacobsen, Chief Economist at Annex Wealth Management in Menomonee Falls, Wisconsin. "Last year the Fed messed up by not cutting in July so they did a catch-up cut at their next meeting. They'll likely have to do the same thing this year." Market expectations the Fed will cut rates by at least 25 basis points at its September meeting stood at 86.5 per cent, according to CME's FedWatch Tool, up from 37.7 per cent in the prior session. The Dow Jones Industrial Average fell 542.40 points, or 1.23 per cent, to 43,588.58, the S&P 500 lost 101.38 points, or 1.60 per cent, to 6,238.01 and the Nasdaq Composite lost 472.32 points, or 2.24 per cent, to 20,650.13. The S&P 500 recorded its biggest single-day percentage decline since May 21 while the Nasdaq suffered its biggest daily percentage drop since April 21. For the week, the S&P 500 fell 2.36 per cent, the Nasdaq declined 2.17 per cent, and the Dow fell 2.92 per cent. The CBOE Volatility Index, also known as Wall Street's fear gauge, closed up 3.66 points at 20.38, its highest close since June 20. Amazon was the biggest drag on the Dow, S&P 500 and Nasdaq and pushed the consumer discretionary index, down nearly 3.6 per cent as the worst performing of the 11 major S&P 500 sectors. Also reporting earnings was Apple, which lost 2.5 per cent after it posted a current-quarter revenue forecast well above Wall Street estimates, but CEO Tim Cook warned US tariffs would add $US1.1 billion ($A1.7 billion) in costs over the period. Stocks briefly extended declines after Trump said he ordered the commissioner of the US Bureau of Labor Statistics, Erika L. McEntarfer, to be fired in the wake of the jobs data. "(Trump) didn't seem to be disappointed with the last five jobs reports," said Art Hogan, Chief Market Strategist, B. Riley Wealth, Boston, saying that the firing stood out as irregular. "I think this is clearly something that happens in dictatorships, not in democracies." The Federal Reserve said Governor Adriana Kugler is resigning early from her term and will exit the central bank on Aug. 8, enabling President Donald Trump to select a new governor as he has ramped up pressure against Chair Jerome Powell recently to cut interest rates. Declining issues outnumbered advancers by a 2.17-to-1 ratio on the NYSE, and by a 2.69-to-1 ratio on the Nasdaq. The S&P 500 posted eight new 52-week highs and 29 new lows, while the Nasdaq Composite recorded 29 new highs and 202 new lows. Volume on US exchanges was 19.51 billion shares, compared with the 18.44 billion average for the full session over the last 20 trading days.
The Advertiser
12 hours ago
- The Advertiser
Markets plummet as Trump issues more steep tariffs
US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling and countries and companies scrambling to seek ways to strike better deals. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39 per cent tariffs, sought more talks, as did India, hit with a 25 per cent rate. New tariffs announced on Friday also included a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10 per cent to 41 per cent starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18 per cent, from 2.3 per cent last year, according to analysts at Capital Economics. US stocks took a hit. By afternoon on Friday, the Dow Jones Industrial Average had dropped 1.46 per cent to 43,486.45, the S&P 500 1.8 per cent to 6,225.55 and the Nasdaq Composite 2.42 per cent to 20,610.91. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labour market. Global shares stumbled, with Europe's STOXX 600 tumbling 1.89 per cent on the day. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on August 7, a White House official said. Trump administration officials defended the president's approach saying the uncertainty was "critical" for him to be able to leverage a better deal. "The trade deals we've seen over the last few weeks... have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. Trump's tariff rollout also comes amid evidence they have begun driving up prices of home furnishings and household equipment. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10 per cent for Australia. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Switzerland said it would push for a "negotiated solution" with the US, with industry insiders saying they were "stunned" by the 39 per cent tariffs. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30 per cent US tariff it faces. Southeast Asian countries largely breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19 per cent across the region's biggest economies. Thailand's finance minister said a reduction from 36 per cent to 19 per cent would help his country's economy. While India is in talks after being slapped with a 25 per cent tariff, which could impact about $US40 billion ($A62 billion) worth of its exports. Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. This is contrast to his decision to allow Mexico a 90-day reprieve from higher tariffs to allow time to negotiate. Businesses and analysts said the impact of Trump's new trade regime would not be positive for economic growth. "No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative." US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling and countries and companies scrambling to seek ways to strike better deals. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39 per cent tariffs, sought more talks, as did India, hit with a 25 per cent rate. New tariffs announced on Friday also included a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10 per cent to 41 per cent starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18 per cent, from 2.3 per cent last year, according to analysts at Capital Economics. US stocks took a hit. By afternoon on Friday, the Dow Jones Industrial Average had dropped 1.46 per cent to 43,486.45, the S&P 500 1.8 per cent to 6,225.55 and the Nasdaq Composite 2.42 per cent to 20,610.91. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labour market. Global shares stumbled, with Europe's STOXX 600 tumbling 1.89 per cent on the day. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on August 7, a White House official said. Trump administration officials defended the president's approach saying the uncertainty was "critical" for him to be able to leverage a better deal. "The trade deals we've seen over the last few weeks... have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. Trump's tariff rollout also comes amid evidence they have begun driving up prices of home furnishings and household equipment. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10 per cent for Australia. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Switzerland said it would push for a "negotiated solution" with the US, with industry insiders saying they were "stunned" by the 39 per cent tariffs. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30 per cent US tariff it faces. Southeast Asian countries largely breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19 per cent across the region's biggest economies. Thailand's finance minister said a reduction from 36 per cent to 19 per cent would help his country's economy. While India is in talks after being slapped with a 25 per cent tariff, which could impact about $US40 billion ($A62 billion) worth of its exports. Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. This is contrast to his decision to allow Mexico a 90-day reprieve from higher tariffs to allow time to negotiate. Businesses and analysts said the impact of Trump's new trade regime would not be positive for economic growth. "No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative." US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling and countries and companies scrambling to seek ways to strike better deals. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39 per cent tariffs, sought more talks, as did India, hit with a 25 per cent rate. New tariffs announced on Friday also included a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10 per cent to 41 per cent starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18 per cent, from 2.3 per cent last year, according to analysts at Capital Economics. US stocks took a hit. By afternoon on Friday, the Dow Jones Industrial Average had dropped 1.46 per cent to 43,486.45, the S&P 500 1.8 per cent to 6,225.55 and the Nasdaq Composite 2.42 per cent to 20,610.91. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labour market. Global shares stumbled, with Europe's STOXX 600 tumbling 1.89 per cent on the day. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on August 7, a White House official said. Trump administration officials defended the president's approach saying the uncertainty was "critical" for him to be able to leverage a better deal. "The trade deals we've seen over the last few weeks... have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. Trump's tariff rollout also comes amid evidence they have begun driving up prices of home furnishings and household equipment. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10 per cent for Australia. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Switzerland said it would push for a "negotiated solution" with the US, with industry insiders saying they were "stunned" by the 39 per cent tariffs. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30 per cent US tariff it faces. Southeast Asian countries largely breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19 per cent across the region's biggest economies. Thailand's finance minister said a reduction from 36 per cent to 19 per cent would help his country's economy. While India is in talks after being slapped with a 25 per cent tariff, which could impact about $US40 billion ($A62 billion) worth of its exports. Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. This is contrast to his decision to allow Mexico a 90-day reprieve from higher tariffs to allow time to negotiate. Businesses and analysts said the impact of Trump's new trade regime would not be positive for economic growth. "No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative." US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling and countries and companies scrambling to seek ways to strike better deals. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39 per cent tariffs, sought more talks, as did India, hit with a 25 per cent rate. New tariffs announced on Friday also included a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10 per cent to 41 per cent starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18 per cent, from 2.3 per cent last year, according to analysts at Capital Economics. US stocks took a hit. By afternoon on Friday, the Dow Jones Industrial Average had dropped 1.46 per cent to 43,486.45, the S&P 500 1.8 per cent to 6,225.55 and the Nasdaq Composite 2.42 per cent to 20,610.91. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labour market. Global shares stumbled, with Europe's STOXX 600 tumbling 1.89 per cent on the day. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on August 7, a White House official said. Trump administration officials defended the president's approach saying the uncertainty was "critical" for him to be able to leverage a better deal. "The trade deals we've seen over the last few weeks... have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. Trump's tariff rollout also comes amid evidence they have begun driving up prices of home furnishings and household equipment. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10 per cent for Australia. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Switzerland said it would push for a "negotiated solution" with the US, with industry insiders saying they were "stunned" by the 39 per cent tariffs. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30 per cent US tariff it faces. Southeast Asian countries largely breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19 per cent across the region's biggest economies. Thailand's finance minister said a reduction from 36 per cent to 19 per cent would help his country's economy. While India is in talks after being slapped with a 25 per cent tariff, which could impact about $US40 billion ($A62 billion) worth of its exports. Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. This is contrast to his decision to allow Mexico a 90-day reprieve from higher tariffs to allow time to negotiate. Businesses and analysts said the impact of Trump's new trade regime would not be positive for economic growth. "No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative."
Perth Now
15 hours ago
- Perth Now
Markets plummet as Trump issues more steep tariffs
US President Donald Trump's latest wave of tariffs on exports from dozens of trading partners sent global stock markets tumbling and countries and companies scrambling to seek ways to strike better deals. As Trump presses ahead with plans to reorder the global economy with the highest tariff rates since the early 1930s, Switzerland, "stunned" by 39 per cent tariffs, sought more talks, as did India, hit with a 25 per cent rate. New tariffs announced on Friday also included a 35 per cent duty on many goods from Canada, 50 per cent for Brazil, 20 per cent for Taiwan, which said its rate was "temporary" and it expected to reach a lower figure. The presidential order listed higher import duty rates of 10 per cent to 41 per cent starting in a week's time for 69 trading partners, taking the US effective tariff rate to about 18 per cent, from 2.3 per cent last year, according to analysts at Capital Economics. US stocks took a hit. By afternoon on Friday, the Dow Jones Industrial Average had dropped 1.46 per cent to 43,486.45, the S&P 500 1.8 per cent to 6,225.55 and the Nasdaq Composite 2.42 per cent to 20,610.91. Markets were also reacting to a disappointing jobs report. Data showed US job growth slowed more than expected in July while the prior month's data was revised sharply lower, pointing to a slowdown in the labour market. Global shares stumbled, with Europe's STOXX 600 tumbling 1.89 per cent on the day. Trump's new tariffs have created yet more uncertainty, with many details unclear. They are set to take effect on August 7, a White House official said. Trump administration officials defended the president's approach saying the uncertainty was "critical" for him to be able to leverage a better deal. "The trade deals we've seen over the last few weeks... have been nothing short of monumental," Council of Economic Advisers Chair Stephen Miran said on CNBC. Trump's tariff rollout also comes amid evidence they have begun driving up prices of home furnishings and household equipment. Australian products could become more competitive in the US market, helping businesses boost exports, Trade Minister Don Farrell said, after Trump kept the minimum tariff rate of 10 per cent for Australia. The European Union, which struck a framework deal with Trump on Sunday, is still awaiting more Trump orders to deliver on agreed carve-outs, including on cars and aircraft, EU officials said, saying the latest executive orders did not cover that. Switzerland said it would push for a "negotiated solution" with the US, with industry insiders saying they were "stunned" by the 39 per cent tariffs. South Africa's Trade Minister Parks Tau said he was seeking "real, practical interventions" to defend jobs and the economy against the 30 per cent US tariff it faces. Southeast Asian countries largely breathed a sigh of relief after the US tariffs on their exports that were lower than threatened and leveled the playing field with a rate of about 19 per cent across the region's biggest economies. Thailand's finance minister said a reduction from 36 per cent to 19 per cent would help his country's economy. While India is in talks after being slapped with a 25 per cent tariff, which could impact about $US40 billion ($A62 billion) worth of its exports. Trump issued a separate order for Canada that raises the rate on Canadian goods subject to fentanyl-related tariffs to 35 per cent, from 25 per cent previously, saying Canada had "failed to cooperate" in curbing illicit narcotics flows into the US. This is contrast to his decision to allow Mexico a 90-day reprieve from higher tariffs to allow time to negotiate. Businesses and analysts said the impact of Trump's new trade regime would not be positive for economic growth. "No real winners in trade conflicts," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "Despite some countries securing better terms, the overall impact is negative."
