The yield curve is steepening: What it means for equity investors
US Treasury yields (^TNX, ^TYX, ^FVX) are on the decline. ProShares Global investment strategist Simeon Hyman joins Catalysts with Julie Hyman to take a closer look at the bond market and its impact on the stock market (^DJI, ^GSPC, ^IXIC).
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
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Yahoo
an hour ago
- Yahoo
China accuses US of ‘seriously violating' trade truce
China has accused the US of 'seriously violating' the fragile US-China detente that has been in place for less than a month since the two countries agreed to pause the trade war that risked upending the global economy. China and the US agreed on 12 May to pause for 90 days the skyrocketing 'reciprocal' tariffs that both countries had placed on the others goods in a frenzied trade war that started a few weeks earlier. Tariffs had reached 125% on each side, which officials feared amounted to virtual embargo on trade between the world's two biggest economies. Donald Trump had hailed the pause as a 'total reset' of US-China relations. But since then, trade negotiations have faltered, with the US complaining that China has not delivered on promises to roll back restrictions on the export of key critical minerals to the US. The US president said on Friday that China had 'totally violated' the agreement. Related: UK trade secretary to seek exemption from US steel and aluminium tariffs The US Treasury secretary, Scott Bessent, said on Sunday: 'What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe. And that is not what a reliable partner does.' During the period of aggressive retaliatory trade measures between the US and China in April, China had restricted the export of certain rare earth minerals and magnets, which are critical for US manufacturing. The restrictions were expected to be relaxed after the 12 May agreement but the process appears to have been patchy at best. Now, US companies, particularly car manufacturers, are reportedly running out of magnets. China hit back on Monday, accusing the US of violating and undermining the agreements reached in Geneva in May, and the consensus between Trump and Xi Jinping, China's president, on their 17 January phone call. China's commerce ministry said on Monday: 'The US has successively introduced a number of discriminatory restrictive measures against China, including issuing export control guidelines for AI chips, stopping the sale of chip design software to China, and announcing the revocation of Chinese student visas.' The ministry said China 'is determined to safeguard its rights and interests' and denied the accusation from the US that it had undermined the 12 May agreement. The US has indicated that another Xi-Trump call is expected soon. But outside the trade talks, US-China relations have soured in a number of areas. Last week, China condemned the announcement from the US secretary of state, Marco Rubio, that the US would 'aggressively' revoke the visas of Chinese students in his country. And over the weekend, China and the US traded barbs over comments made by the US defence secretary, Pete Hegseth, at a conference in Singapore. Hegseth said that China was potentially an 'imminent' threat, while China's foreign ministry said that his comments were 'filled with provocations and intended to sow division'.
Yahoo
16 hours ago
- Yahoo
Trump's tariffs 'not going away' as deadline for deals loom, top adviser says
US President Donald Trump is not planning to extend the pause to his sweeping global tariffs, Commerce Secretary Howard Lutnick said. The president's plan - where countries face between 11% to more than 100% tariffs on goods brought into the US - was announced in April. But the majority of the tariffs were paused by Trump for 90 days in the wake of stock market volatility. Speaking with Fox News, Lutnick said he expects the President to stand firm when that 90 day pause expires at the start of July. A key trade deal would be with China, who US Treasury Secretary Scott Bessent said has "not been a reliable partner" and claimed it was holding back products in the global supply chain. The president's top trade advisers presented a united front in their appearances on separate US morning television programmes on Sunday. They remained steadfast on the tariff agenda, which has faced ongoing challenges in the nation's court system. "Tariffs are not going away," Lutnick said in response to the court cases. He added that the US "could sign lots of deals now" but the Trump administration is working to "make them better". "You're going to see over the next couple of weeks, really, first class deals for the American worker," he said.. And on the expiration of the 90 day pause, Lutnick said: "I think that's the deadline, and the President's just going to determine what rates people have if they can't get a deal done". When the pause expires, in theory it would enact sweeping tariffs on countries across the globe. Imports from about 60 trading partners that the White House has described as the "worst offenders", including the European Union, Vietnam, South Africa and more, will face higher rates. Trump has described these taxes as payback for unfair trade policies. What tariffs has Trump announced and why? US pauses higher tariffs for most countries after market havoc, but hits China harder On Friday, Trump announced the US will double its current tariff rate on steel and aluminium imports from 25% to 50%, beginning on Wednesday. Like with most of the announced tariffs, Trump said the move would help boost local steel industry, while reducing US reliance on China. US steel manufacturing has decreased in recent years and countries like China, India and Japan have become the world's biggest producers. The steel tariffs come as many hold their breath waiting for further announcements. from the Trump administration. Trump's tariff policies have upended global trade and cracks have formed - or widened - among relationships between the US and other countries, including some of its closest partners. The levies have worsened relations between China and the US, the two largest global economies - and launched the countries into a tit-for-tat trade battle. Under a trade truce struck in May at Geneva, the US lowered tariffs imposed on goods from China from 145% to 30%. China's retaliatory tariffs on US goods dropped from 125% to 10%. But a larger trade deal between the countries has not been established. On Sunday, Treasury Secretary Bessent told CBS News, the BBC's US news partner, details of the trade will be "ironed out" once Chinese President Xi Jinping and Trump speak, but he did not say exactly when that conversation is expected. "What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe. And that is not what a reliable partner does," Bessent said. The Treasury Secretary claimed China could be withholding some products because of a "glitch", or he said it could be "intentional" - but the administration would not know for sure until a call with both countries happened. On Friday, China urged the US to "immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva". White House National Economic Council Director Kevin Hassett told ABC News on Sunday that Trump and Xi are expected to talk this week, and said "both sides have expressed a willingness to talk". "The bottom line is that we've got to be ready in case things don't happen the way we want," Hassett said of the expected China talks. "Because if we have cannons without cannonballs, then we can't fight a war." "We have to have a steel industry that's ready for American defence," he said. China hits back after Trump claims it is 'violating' tariff truce Trump tariffs can stay in place for now, appeals court rules Trump tariffs get to stay in place for now. What happens next? EU 'strongly' regrets US plan to double steel tariffs
Yahoo
19 hours ago
- Yahoo
US, China trade row could ease after Trump-Xi talks: Treasury chief
US Treasury Secretary Scott Bessent said Sunday that President Donald Trump could speak with China's Xi Jinping "very soon," and that such a call could help break the logjam in the trade talks between the world's two biggest economies. Trump on Friday accused Beijing of violating a deal reached last month in Geneva -- negotiated by Bessent -- to temporarily lower staggeringly high tariffs they had imposed on each other, in a pause to last 90 days. China's slow-walking on export license approvals for rare earths and other elements needed to make cars and chips have fueled US frustration, The Wall Street Journal reported Friday -- a concern since confirmed by US officials. But Bessent seemed to take the pressure down a notch, telling CBS's "Face the Nation" that the gaps could be bridged. "I'm confident that when President Trump and Party Chairman Xi have a call that this will be ironed out," Bessent said, however noting that China was "withholding some of the products that they agreed to release during our agreement." When asked if rare earths were one of those products, Bessent said, "Yes." "Maybe it's a glitch in the Chinese system. Maybe it's intentional. We'll see after the president speaks with" Xi, he said. On when a Trump-Xi call could take place, Bessent said: "I believe we will see something very soon." Since Trump returned to the presidency, he has slapped sweeping tariffs on most US trading partners, with especially high rates on Chinese imports. New tit-for-tat levies on both sides reached three digits before the de-escalation this month, where Washington agreed to temporarily reduce additional tariffs on Chinese imports from 145 percent to 30 percent. China, meanwhile, lowered its added duties from 125 percent to 10 percent. In an interview with ABC's "This Week," Commerce Secretary Howard Lutnick said China was "slow-rolling the deal," adding: "We are taking certain actions to show them what it feels like on the other side of that equation." "Our president understands what to do. He's going to go work it out," Lutnick said. sst-gl/md
