Asian shares higher, dollar flat before Europe outlook
Shares in Asia crept higher and the US dollar languished ahead of the European Central Bank offering its policy outlook for a tumultuous global economy.
The dollar slid in the previous session after weak US jobs and services data, with more weighty employment data due on Friday. Damage to the US economy is becoming more apparent from President Donald Trump's erratic tariff action, while bilateral deals remain unrealised.
Canada prepared possible reprisals against the imposition of new US metals tariffs while the European Union reported progress in trade talks with Washington. Against that backdrop, market watchers considered the ECB almost certain to cut policy interest rates so will pay greater attention to what bank President Christine Lagarde signals about future decisions.
"There's uncertainty about the guidance the central bank will deliver given the murky outlook for US trade policy and global growth," said Kyle Rodda, a senior financial market analyst at Capital.com. "A failure to deliver sufficiently dovish guidance could upset the equity markets as well as give the euro upward trend additional momentum."
Trump's doubling of tariffs on steel and aluminium imports became effective on Wednesday, hitting Canada and Mexico in particular. The same day, his administration sought "best offers" from trading partners to stop other import levies taking effect in July.
Japan is sending key trade negotiator Ryosei Akaza to the US on Thursday for another round of talks. Germany's new chancellor, Friedrich Merz, is also due to head to Washington.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7 per cent in early trade, whereas Japan's Nikkei stock index slid 0.2 per cent.
The dollar index, which measures the greenback against a basket of currencies, was flat at 98.85 after a 0.5 per cent slide on Wednesday.
The dollar rose 0.1 per cent against the yen to 142.92. The euro was flat at $1.1416 after a 0.4 per cent gain in the trading previous session.
Gold pared gains from the previous day while oil slipped after a build in US inventories and Saudi Arabia's cut to its July prices for Asian crude buyers.
Spot gold edged 0.1 per cent lower to $3,372.7 per ounce. US crude dipped 0.2 per cent to $62.75 a barrel.
The pan-region Euro Stoxx 50 futures were little changed while US stock futures, the S&P 500 e-minis, were down 0.1 per cent.
Shares in Asia crept higher and the US dollar languished ahead of the European Central Bank offering its policy outlook for a tumultuous global economy.
The dollar slid in the previous session after weak US jobs and services data, with more weighty employment data due on Friday. Damage to the US economy is becoming more apparent from President Donald Trump's erratic tariff action, while bilateral deals remain unrealised.
Canada prepared possible reprisals against the imposition of new US metals tariffs while the European Union reported progress in trade talks with Washington. Against that backdrop, market watchers considered the ECB almost certain to cut policy interest rates so will pay greater attention to what bank President Christine Lagarde signals about future decisions.
"There's uncertainty about the guidance the central bank will deliver given the murky outlook for US trade policy and global growth," said Kyle Rodda, a senior financial market analyst at Capital.com. "A failure to deliver sufficiently dovish guidance could upset the equity markets as well as give the euro upward trend additional momentum."
Trump's doubling of tariffs on steel and aluminium imports became effective on Wednesday, hitting Canada and Mexico in particular. The same day, his administration sought "best offers" from trading partners to stop other import levies taking effect in July.
Japan is sending key trade negotiator Ryosei Akaza to the US on Thursday for another round of talks. Germany's new chancellor, Friedrich Merz, is also due to head to Washington.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7 per cent in early trade, whereas Japan's Nikkei stock index slid 0.2 per cent.
The dollar index, which measures the greenback against a basket of currencies, was flat at 98.85 after a 0.5 per cent slide on Wednesday.
The dollar rose 0.1 per cent against the yen to 142.92. The euro was flat at $1.1416 after a 0.4 per cent gain in the trading previous session.
Gold pared gains from the previous day while oil slipped after a build in US inventories and Saudi Arabia's cut to its July prices for Asian crude buyers.
Spot gold edged 0.1 per cent lower to $3,372.7 per ounce. US crude dipped 0.2 per cent to $62.75 a barrel.
The pan-region Euro Stoxx 50 futures were little changed while US stock futures, the S&P 500 e-minis, were down 0.1 per cent.
Shares in Asia crept higher and the US dollar languished ahead of the European Central Bank offering its policy outlook for a tumultuous global economy.
The dollar slid in the previous session after weak US jobs and services data, with more weighty employment data due on Friday. Damage to the US economy is becoming more apparent from President Donald Trump's erratic tariff action, while bilateral deals remain unrealised.
Canada prepared possible reprisals against the imposition of new US metals tariffs while the European Union reported progress in trade talks with Washington. Against that backdrop, market watchers considered the ECB almost certain to cut policy interest rates so will pay greater attention to what bank President Christine Lagarde signals about future decisions.
"There's uncertainty about the guidance the central bank will deliver given the murky outlook for US trade policy and global growth," said Kyle Rodda, a senior financial market analyst at Capital.com. "A failure to deliver sufficiently dovish guidance could upset the equity markets as well as give the euro upward trend additional momentum."
Trump's doubling of tariffs on steel and aluminium imports became effective on Wednesday, hitting Canada and Mexico in particular. The same day, his administration sought "best offers" from trading partners to stop other import levies taking effect in July.
Japan is sending key trade negotiator Ryosei Akaza to the US on Thursday for another round of talks. Germany's new chancellor, Friedrich Merz, is also due to head to Washington.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7 per cent in early trade, whereas Japan's Nikkei stock index slid 0.2 per cent.
The dollar index, which measures the greenback against a basket of currencies, was flat at 98.85 after a 0.5 per cent slide on Wednesday.
The dollar rose 0.1 per cent against the yen to 142.92. The euro was flat at $1.1416 after a 0.4 per cent gain in the trading previous session.
Gold pared gains from the previous day while oil slipped after a build in US inventories and Saudi Arabia's cut to its July prices for Asian crude buyers.
Spot gold edged 0.1 per cent lower to $3,372.7 per ounce. US crude dipped 0.2 per cent to $62.75 a barrel.
The pan-region Euro Stoxx 50 futures were little changed while US stock futures, the S&P 500 e-minis, were down 0.1 per cent.
Shares in Asia crept higher and the US dollar languished ahead of the European Central Bank offering its policy outlook for a tumultuous global economy.
The dollar slid in the previous session after weak US jobs and services data, with more weighty employment data due on Friday. Damage to the US economy is becoming more apparent from President Donald Trump's erratic tariff action, while bilateral deals remain unrealised.
Canada prepared possible reprisals against the imposition of new US metals tariffs while the European Union reported progress in trade talks with Washington. Against that backdrop, market watchers considered the ECB almost certain to cut policy interest rates so will pay greater attention to what bank President Christine Lagarde signals about future decisions.
"There's uncertainty about the guidance the central bank will deliver given the murky outlook for US trade policy and global growth," said Kyle Rodda, a senior financial market analyst at Capital.com. "A failure to deliver sufficiently dovish guidance could upset the equity markets as well as give the euro upward trend additional momentum."
Trump's doubling of tariffs on steel and aluminium imports became effective on Wednesday, hitting Canada and Mexico in particular. The same day, his administration sought "best offers" from trading partners to stop other import levies taking effect in July.
Japan is sending key trade negotiator Ryosei Akaza to the US on Thursday for another round of talks. Germany's new chancellor, Friedrich Merz, is also due to head to Washington.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7 per cent in early trade, whereas Japan's Nikkei stock index slid 0.2 per cent.
The dollar index, which measures the greenback against a basket of currencies, was flat at 98.85 after a 0.5 per cent slide on Wednesday.
The dollar rose 0.1 per cent against the yen to 142.92. The euro was flat at $1.1416 after a 0.4 per cent gain in the trading previous session.
Gold pared gains from the previous day while oil slipped after a build in US inventories and Saudi Arabia's cut to its July prices for Asian crude buyers.
Spot gold edged 0.1 per cent lower to $3,372.7 per ounce. US crude dipped 0.2 per cent to $62.75 a barrel.
The pan-region Euro Stoxx 50 futures were little changed while US stock futures, the S&P 500 e-minis, were down 0.1 per cent.
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ABC News
44 minutes ago
- ABC News
Will Trump or Musk be able to hold back while flirting with mutually assured destruction?
Donald Trump sees himself as a world-class negotiator and deal maker — he will now need to bring all those skills to reach a ceasefire deal — not in Ukraine nor Gaza — but with Elon Musk. Musk now presents a real crisis for the Trump presidency. He's wealthy, powerful, unpredictable and he believes he's been wronged. And he knows a lot about the president and his family. This feud — carried out in real time on X — has captivated Americans. As one person posted on Musk's own online social media platform on Friday morning, when there was a lull in the abuse between the two: "What time do Trump and Musk wake up?" These are dangerous times for Donald Trump. Like a married couple, for the past year Musk and Trump have been with each other when the guests have left the dinner party. As each world leader has left the White House, as each influential member of Congress has shaken hands and left, these two have been left to do their own private debrief in the Oval Office. The relationship was so close that on one occasion when Trump was having a phone call with Ukrainian President Volodymyr Zelenskyy, Trump reportedly said to Zelenskyy words to the effect, "There's someone here I want you to say hello to," and handed the phone to Musk. A puzzled Ukrainian president was suddenly speaking to the world's richest man. That's how close Trump and Musk were during their political marriage. But now the divorce has come through and they're fighting about their legacies. Musk is trying to convince the world that he wanted to slash the US's crippling budget but that Trump sold out America by pushing a bill — the bill Trump likes to call "One Big Beautiful Bill" — through the House of Representatives. Trump is trying to convince the world that Musk is an erratic and unpredictable character, and that he's bitter because his bill cut subsidies to electric vehicles — which hit Musk's Tesla business — and that Trump asked him to leave. In recent weeks, Trump has had to have some fascinating calls — including with Russian President Vladimir Putin to try to bring an end to the war in Ukraine, and with Chinese President Xi Jinping to bring an end to Trump's tariff war on the United States's trading partners. As wily as those two men are, he may need greater skills of persuasion — or threat — with Elon Musk. Within a few days of their split's fallout, Musk was threatening to support the impeachment of Trump, to support Vice-President JD Vance taking over and to withdraw funding for Trump's candidates in the mid-term election. Trump, for his part, was threatening to end government contracts enjoyed by Musk's Space X company. It's often said that information is power. If that's the case, these two have unparalleled information about each other. They have accessed each other's lives for more than a year. They know each other's families. They know each other's family problems. They know each other's business interests. They know each other's vulnerabilities — personal and business. On top of the power of information that comes with access, they both have raw power. Through his total control of agencies, Trump can access any tax or regulatory information on Musk and his businesses. Trump has shown he will use legal and regulatory powers to pursue his personal and political enemies. This makes Musk extremely vulnerable. Trump understands fully the power of his words from the Oval Office — this week within five minutes of him saying that he thought his friendship with Musk was over, Wall Street started selling Tesla shares. Then, when Trump began suggesting that he would end Musk's various government contracts, Wall Street panicked. Within an hour, Tesla shares had dived 14 per cent. Donald Trump had wiped billions off Musk's wealth. But Musk does not have the personality type to take this sort of thing calmly. He, too, has power — although his is not the ability to hit Trump's many financial interests (that he knows of) but rather to damage him politically. Like Musk, Trump is also vulnerable. Musk has the raw power that comes from being the world's richest man. He has his mass distribution publishing platform, X. By spending so much time with Trump and his family in both the White House — and for a time seemingly to live in Trump's Florida mansion, Mar-a-Lago — Musk would have knowledge of the Trump family's business dealings. It appears as if Trump decided some weeks ago that Musk was not long for the White House — that it was a matter of how to extricate Musk from the Oval Office without too much pain. Musk's behaviour became erratic. Those wild images of him waving a chainsaw and shouting that this was what he was using to cut government spending went down badly with many of those who had voted for Trump, particularly veterans who were suddenly losing entitlements. Then Musk made what appeared to be a Nazi salute. This, coupled with his strong support for Germany's far-right Alternative for Germany (AFD) party, made many Americans concerned about Musk's real views. When Musk, in a reference to the Holocaust, told AFD supporters that there was "too much focus on past guilt, and we need to move beyond that" and that the party's anti-immigration policies were "the best hope for Germany" it only heightened those concerns. Then reports began appearing about clashes between Musk and senior members of Trump's cabinet. Whether they were authorised by Trump or the White House or were from disenchanted members of Trump's cabinet is not clear, but what is clear is that a steady stream of leaks began appearing against Musk. One of the more damaging was that Musk had a blazing row in one cabinet meeting with Marco Rubio, the secretary of state. The report said that Trump allowed the fight to go for some time, before intervening to stop it — by siding with Rubio. Then came reports of a clash witnessed by many between Musk and Scott Bessent, the well-liked secretary of the Treasury. Musk had shouted at Bessent in a corridor that Bessent was not cutting enough staff from his department quickly enough, at which point Bessent reportedly shouted back: "F*** off!" The leaks all appeared well sourced, and the White House did not vigorously deny them. Someone, it seems, was out to get Musk, apparently preparing the ground for his political execution. Then came perhaps the most devastating leak of all — details of Musk's alleged erratic behaviour, and drug use, since joining Trump's campaign to return to the White House. The New York Times reported: "As Elon Musk became one of Donald J. Trump's closest allies last year, leading raucous rallies and donating about $[US]275 million [$423 million] to help him win the presidency, he was also using drugs far more intensely than previously known, according to people familiar with his activities. "Mr Musk's drug consumption went well beyond occasional use. He told people he was taking so much ketamine, a powerful anaesthetic, that it was affecting his bladder, a known effect of chronic use. He took Ecstasy and psychedelic mushrooms. And he travelled with a daily medication box that held about 20 pills, including ones with the markings of the stimulant Adderall, according to a photo of the box and people who have seen it. "It is unclear whether Mr. Musk, 53, was taking drugs when he became a fixture at the White House this year and was handed the power to slash the federal bureaucracy. But he has exhibited erratic behaviour, insulting cabinet members, gesturing like a Nazi and garbling his answers in a staged interview. "At the same time, Mr. Musk's family life has grown increasingly tumultuous as he has negotiated overlapping romantic relationships and private legal battles involving his growing brood of children, according to documents and interviews." This was now going well beyond the narrative that Musk was difficult to work with. This was creating the impression that Musk was erratic and unpredictable. Musk strongly denied The New York Times story: "To be clear, I am NOT taking drugs! The New York Times was lying their a... off," Musk insisted. "I tried prescription ketamine a few years ago and said so on X, so this not even news. It helps for getting out of dark mental holes, but haven't taken it since then." Whatever the truth of it all, Musk's reputation was taking a belting — and however wealthy and powerful is, Musk would have known that his reputation was bleeding. How many big investment houses want to put money behind somebody who, when they google his name, "ketamine" comes up? So the break-up was inevitable. Musk says it was his decision, that his role as head of DOGE — the Department of Government Efficiency — had come to a natural end. Trump has a different version — he says he asked Musk to leave. Whoever is telling the truth, the couple gathered in the Oval Office to announce their separation. Both tried to put their best face on it — not an easy task for Musk, looking dishevelled and with a black eye which he claimed he received while playing with his son. As part of this apparently amicable divorce, Trump opened a box and handed Musk a golden "key to the White House". But, unmistakably, the chemistry which the two had always shared was gone. It had all the authenticity of a married couple who can barely look at each other announcing their divorce and saying: "We remain good friends, we just grew apart, and we will always put the interests of the children first." That didn't last long. Within days, Musk could not help himself. He began posting on X his concerns about Trump's signature budget bill, which Musk says will push the United States towards bankruptcy by its massive increase in the country's debt levels. This was a direct challenge to Trump, who has pressured Republicans to officially name the bill "One Big Beautiful Bill". But Trump did something he rarely does: He sat back and did not take the bait. All Trump's instincts are to lash out at anybody that he thinks might be criticising him, but with Musk he stayed quiet. By the hour, Musk's tweets gathered impact. Finally, he went so far as to urge Americans to contact their members of Congress to lobby them to "Kill the Bill". Some Republicans backed Musk, which would have concerned Trump. The Trump side began fighting back, initially through Mike Johnson, the speaker of the House of Representatives, who Trump nominated to ensure the bill went through the House — which it has — and now to try to shepherd it through the Senate. Although the Republicans control the Senate, as well as the House, some of the more conservative senators agree with Musk that this bill — with its huge tax cuts for wealthy Americans — will push the US towards bankruptcy. The Republicans hold the Senate by only a slim margin. It will only take three Republicans to vote against the bill to defeat it. This would be a huge blow to the centrepiece of Trump's economic policy. Johnson dropped something that would have outraged Musk. He suggested Musk was opposing the bill not because he was committed to the US cutting its deficit but because it cut subsidies to electric vehicles — the mainstay of the Tesla business — and was therefore hitting Elon Musk's business interests. This went against everything that Trump and the White House had been saying for a year. Trump had often told his rallies that Musk was in fact losing money by concentrating on the political world and was doing it selflessly as he wanted to "make America great again". So now, through Johnson, Musk was being re-cast from the great American MAGA patriot to the selfish businessman only concerned about his own wealth. Seemingly outraged by what he saw as an attempt to undermine him personally rather than address the issue of the deficit, Musk doubled down, calling the bill "a disgusting abomination". All this became too much for Trump. He finally entered the fight, repeating not just the claim that Musk was upset about losing the electric vehicle subsidies but that Trump had asked Musk to leave his position. Trump was saying that he had essentially terminated Musk's role. For someone with a sense of self-worth as large as Musk's, the suggestion that Trump had essentially told him "you're fired!" — for which Trump was famous on his reality TV show The Apprentice — would have outraged him. Not many people can fire the world's richest man. Donald Trump was now saying that he had. And so Musk went ballistic. What he did next crossed a line beyond which he could never salvage any relationship with Trump or this White House. He seems to have realised that himself, beginning his post on X with both a sense of threat and glee: As far as the White House was concerned, Elon Musk was now a political terrorist — he had gone rogue and was out of control, seemingly prepared to push for the destruction of Donald Trump. Signing off with "Have a nice day, DJT!" (Donald J Trump), Musk had linked Trump to an investigation into a criminal sex trafficking operation which involved many high-profile people and centred on Jeffrey Epstein, the now-dead US financier. Trump had famously been photographed with Epstein, but so had many people who had been part of the New York finance and celebrity worlds of the 1980s and 90s. Where this now goes is anybody's guess. Neither of these two men operates according to convention of generally accepted rules. US media have reported that various mediators were trying to set up a ceasefire phone call, but Trump has failed in his phone call attempts to get ceasefires in Ukraine and Gaza and there's no suggestion that he will be any more successful in ending this "war" with Elon Musk. Musk has been on the inside of the Trump presidency — and the Trump family — for almost a year. He's had access to moments with the family when the cameras are not around and nobody is recording what is being said. If Donald Trump has personal, sexual or financial skeletons, Musk may well know what they are and where they are. Trump, for his part, has had insights into Elon Musk that few others have. If the reports of Musk being erratic and drug-fuelled during Trump's campaign are true, Trump would know about them. Like Musk, Trump has had insights into Musk's business and private life that few others would have had. The reason this battle is epic is that both men have raw power. Both men have the ability to destroy or wound each other. Both men are natural pugilists. Both men believe backing down is for wimps, part of the modern curse of "woke" culture. This is the ultimate clash of political power with financial power. In this modern age, which will win? Who will win? And which side does Vice-President JD Vance take? Does he show loyalty to his commander-in-chief, who hand-picked him to be his deputy? Or does he show loyalty to Elon Musk, one of the tech oligarchs with whom Vance has spent so much time cultivating? After all, these tech billionaires, who famously sat in the front row of Trump's inauguration in front of key figures who would sit in Trump's cabinet, can bankroll a "Vance 2028" campaign. Can Vance somehow keep both men onside when those two men are now clearly trying to wound the other? As to where this goes from here, Trump has become the most powerful man in the world — for the second time — by never taking a step back. Musk has become the most wealthy man in the world by overriding any obstacles put in his way. The key question now is this: Does the natural instinct of each man in this Shakespearean drama to attack their opponents and exact revenge when they feel they have been criticised outweigh the reality that each man is flirting with mutually assured destruction?
AU Financial Review
6 hours ago
- AU Financial Review
Musk picks a fight with the White House and Tesla loses
After the world's least surprising blowup, we the people are reportedly to be treated to its least convincing truce. Investors in Tesla, nominally run by Elon Musk, the chief-buddy-turned-chief-critic of President Donald Trump, are apparently relieved. The stock bounced in trading on Friday (Saturday AEST) after Thursday's epic slide took Tesla's value back below $US1 trillion ($1.5 trillion). Bloomberg Opinion
Sky News AU
7 hours ago
- Sky News AU
Trump considers selling his Tesla amid dispute with Elon Musk
United States President Donald Trump and Elon Musk were up until recently best of friends but have since parted ways following Trump's proposed 'Big, Beautiful Bill'. It seems Mr Trump and Mr Musk's friendship has collapsed in spectacular fashion, leading to an online dispute between the two. The US President is even thought to be considering selling his Tesla as the pair's public spat deepens.
