Latest news with #0.8
The Hill
3 days ago
- Business
- The Hill
US inflation gauge cools with little sign of tariff impact, so far
WASHINGTON (AP) — A key U.S. inflation gauge slowed last month as President Donald Trump's tariffs have yet to noticeably push up prices, while American incomes jumped. Friday's report from the Commerce Department showed that consumer prices rose just 2.1% in April compared with a year earlier, down from 2.3% in March and the lowest since September. Excluding the volatile food and energy categories, core prices rose 2.5% from a year earlier, below the March figure of 2.6%. Economists track core prices because they typically provide a better read on where inflation is headed. The figures show inflation is still declining from its post-pandemic spike, which reached the highest level in four decades in July 2022. Economists and some business executives have warned that prices will likely head higher as Trump's widespread tariffs take effect, though the timing and impact of those duties are now in doubt after they were struck down late Wednesday in court. At the same time, incomes — before adjusting for inflation — rose a healthy 0.8%. Much of that gain reflected an increase in Social Security benefits for some retired teachers, fire fighters, and federal workers whose incomes previously weren't fully counted toward Social Security benefits. The inflation-fighters at the Federal Reserve said at their most recent meeting May 6-7 that inflation is still elevated, compared to their target of 2%. Fed officials, who focus more on core prices, broadly support keeping their key interest rate steady while they evaluate the impact of the tariffs on inflation and jobs. Consumer spending rose 0.2% in April from March, the report said, but that's down from the big 0.7% rise in March. The court ruling last Wednesday said that most of Trump's tariffs were unlawful, including his duties on imports from Canada, Mexico, and China, as well as those on more than 50 other countries. Tariffs on steel, aluminum, and cars were implemented under different laws and remain in place. But the duties were allowed to remain in effect while the Trump administration appeals the ruling against them. And administration officials say they will find other legal authorities, if needed, to implement the tariffs. As a result, what tariffs will end up in place and for how long remains highly uncertain.
Time of India
6 days ago
- Business
- Time of India
Wall Street opens higher as tech stocks lead gains; Dow jumps over 300 points
US stock markets opened on a strong note Tuesday, with all three major indexes climbing as investor sentiment remained buoyant on the back of robust tech gains and cooling Treasury yields. Tired of too many ads? go ad free now The Dow Jones Industrial Average (DJIA) jumped 364.97 points to open at 41,968.04, rising 0.88%, while the NASDAQ Composite surged 276.3 points to 19,013.5, a gain of 1.48%, as tech-heavy counters saw renewed buying interest. The broader S&P 500 also moved higher, adding 63.68 points to trade at 5,866.5, up 1.1% in early deals. Markets responded positively to the modest drop in US 10-year Treasury yields, which fell 4 basis points to 4.471%, offering relief to equity valuations, particularly in growth-sensitive sectors. Meanwhile, gold prices took a hit, falling $71.9 to $3,293.9, down 2.14%, as traders rotated out of safe-haven assets in favor of equities. Oil prices also edged lower, with US crude trading at $61.04, a decline of $0.49 or 0.8%, amid mixed global demand signals. In currency markets, the euro weakened slightly against the US dollar, with the EUR/USD pair slipping to 1.137, down 0.002 or 0.176%. The CBOE Volatility Index (VIX), often dubbed Wall Street's 'fear gauge,' edged up to 20.77, rising 0.2 points or 0.97%, signaling lingering caution despite broader market gains initial minute of trading. Earlier, global stock markets and US futures surged on Tuesday after a weekend trade truce between the United States and the European Union eased fears of an imminent tariff escalation. The rebound comes after a tense end to last week when US President Donald Trump threatened to impose a blanket 50% tariff on EU imports starting June 1, causing markets to tumble. However, on Sunday, Trump announced he would delay the tariffs until July 9 to give both sides more time to negotiate. Tired of too many ads? go ad free now This helped lift investor sentiment, pushing S&P 500 futures up by 1.5%, Nasdaq futures by 1.6%, and Dow Jones Industrial Average futures by 1.4%—recovering Friday's losses. In Europe, stock indexes also rose in midday trading. London's FTSE 100 jumped 0.8% as it reopened after a holiday, while Germany's DAX climbed 0.7% and France's CAC 40 edged up 0.2%. EU's chief trade negotiator said on Monday that talks with US officials had been positive and that the bloc remained committed to finalizing a deal by the July deadline. Tesla shares rose 2.1% in premarket trading despite data showing its April vehicle sales in Europe fell 49% year-on-year to 7,261 units, even as the region's total electric vehicle market grew 28%. The sharp decline for Tesla—amid increasing competition and public backlash against CEO Elon Musk's controversial political views—highlights the brand's ongoing challenges in the region. Southwest Airlines also gained nearly 3% ahead of its policy change taking effect Wednesday, which will end the airline's long-standing policy of free checked bags. The airline, under pressure from activist investors, is seeking to boost revenue through additional fees after struggling financially in recent quarters. Investors are also awaiting key US economic data due later in the day, including reports on consumer confidence and home prices, which could offer clues about the health of the economy. In Asia, markets closed mixed. Japan's Nikkei 225 rose 0.5% to 37,724.11 after Bank of Japan Governor Kazuo Ueda signaled the possibility of an interest rate hike in the coming months. Ueda cited surging food prices, especially rice, and inflation above the BOJ's 2% target as reasons for tightening. While acknowledging risks from global trade tensions, he said Japan was closer than ever to achieving its inflation target after decades of deflation. Elsewhere in Asia, Hong Kong's Hang Seng gained 0.4%, while the Shanghai Composite slipped 0.2%. South Korea's Kospi lost 0.3%, Taiwan's Taiex dropped 0.9%, and India's Sensex fell 1.2%. Australia's S&P/ASX 200 rose 0.6%. In commodities, US benchmark crude edged down 7 cents to $61.46 per barrel, while Brent crude lost 4 cents to $64.08. In currency markets, the US dollar strengthened to 144.08 yen from 142.85 yen. The euro slipped slightly to $1.1348 from $1.1388.
Sky News AU
6 days ago
- Business
- Sky News AU
ASX 200 opens flat despite the United States, European Union fast tracking trade discussions
The ASX 200 opened flat on Tuesday despite renewed hopes that Donald Trump's trade war will ease after the United States and the European Union agreed to fast track tariff discussions. It follows the index finishing dead flat on Monday despite a double digit per cent surge among major uranium miners. In the first 45 minutes of trading, Capstone Copper (up 6.3 per cent) is leading the charge as Sanfire Resources (up 3.8 per cent) and uranium miner Boss Energy (up 2.8 per cent) continue to rise. Woodside Energy's shares are in focus today as the government mulls the future of the controversial Northwest Shelf gas project, with the company up about 0.8 per cent so far. Sky News Business Reporter Ed Boyd said the future of the project was a 'big deal' for Australia's gas sector. 'Investors will be hoping that this potential approval … will give the share price a boost today,' Boyd said. The ASX 200 is up slightly after a European Commission spokesperson said the US and EU were both looking to accelerate tariff discussions after Trump revealed plans to hike the levies to 50 per cent. He soon after agreed to postpone the deadline for the tariff by about a month to allow more negotiating time. "They agreed both to fast track the trade negotiations and to stay in close contact," the spokesperson said. "There's now also a new impetus for the negotiations, and we will take it from there." The STOXX Europe 600 Index rose one per cent on Monday, while Germany's DAX rose 1.7 per cent and France's CAC 40 jumped 1.2 per cent. EU trade commissioner Maros Sefcovic and US commerce secretary, Howard Lutnick, spoke on Monday and Mr Sefcovic later said it was a 'good call'. 'The @EU_Commission remains fully committed to constructive and focused efforts at pace towards a deal,' he wrote on X. 'We continue to stay in constant contact.' It was a public holiday in both the US and the UK, meaning the markets were closed on Monday. New Zealand's NZX 50 Index is up 0.3 per cent since trading began on Tuesday, while Japan's Nikkei 225 is down 0.3 per cent.
Business Recorder
26-05-2025
- Business
- Business Recorder
Australian shares flat; WiseTech gains on its buyout deal for US co
Australian shares traded flat on Monday, as banks' losses offset the gains in mining and tech stocks, led by WiseTech Global's jump to a more than three-month high on its biggest deal to take over a US-based cloud computing firm. The S&P/ASX 200 index was largely unchanged at 8,354.9 points by 0033 GMT. The benchmark had closed at 8,360.9 points on Friday. Tech stocks rose 1.4% to their highest since February 24, buoyed by software firm WiseTech Global's 4.5% rise after announcing a $2 billion deal to buy out E2open. Steeper copper prices pushed miners 0.4% higher. BHP and Fortescue climbed 0.4% and 0.7%, while Rio Tinto was flat. Financials fell 0.2%, with the 'Big Four' banks shedding between 0.2% and 0.6%. Gold stocks advanced 1.2% to a more than one-month high as bullion soared after US President Donald Trump's renewed tariff threats. Evolution Mining and Northern Star Resources added 0.8% and 2.2%, respectively. Energy stocks gained 0.8%, tracking a rise in oil prices after Trump extended the deadline for trade talks with the European Union, easing concerns about US tariffs on the bloc that could hurt the global economy and fuel demand. Australian shares rise on the back of banks, energy stocks Traders are awaiting the local inflation data for April later this week to reinforce expectations of further interest rate cuts from the Reserve Bank of Australia (RBA) this year after last week's quarter-point trim. Swaps now imply a 60% probability for another cut in July, while a reduction in August has been more than fully priced in. Rates are more likely to bottom at 3.1% rather than 3.35%. New Zealand's benchmark S&P/NZX 50 index fell 0.3% to 12,558.25 points. The Reserve Bank of New Zealand is widely anticipated to lower the cash rate by 25 basis points at its next meeting on Wednesday, a Reuters poll showed.
Mint
20-05-2025
- Business
- Mint
Miners, banks lead Australian shares higher ahead of RBA rate decision
May 20 (Reuters) - Australian shares climbed on Tuesday, driven by broad-based gains in mining stocks and banks, as investors awaited the Reserve Bank of Australia's policy decision later in the day. The S&P/ASX 200 index was up 0.7% at 8,356.7, as of 0033 GMT. The benchmark closed 0.6% lower on Monday. The Reserve Bank of Australia is set to deliver its closely watched interest rate decision later in the day. Economists surveyed by Reuters reckon the RBA will cut by 25 basis points, and market pricing indicates a 99.8% probability. The financials sub-index gained 1.2%, with shares of National Australia Bank and Westpac up 1.7% and 1.6%, respectively. ANZ and Commonwealth Bank of Australia advanced 1.2% and 1.1%, respectively. The mining sector rose 0.6%, with shares of major miners BHP and Fortescue gaining 0.5% and 0.8%, respectively. Rio Tinto said Chile's state-owned copper producer Codelco on Monday has selected the global mining giant as a partner for its Maricunga lithium project. Shares of Rio were up 0.7%. Shares of gold miners St Barbara and Northern Star Resources were up 1.6% and 0.6%, respectively. Energy stocks rose 0.6%, supported by Woodside Energy and Santos, up 0.2% and 0.8% respectively, as oil prices climbed on concerns over a potential breakdown in U.S.-Iran nuclear talks, dimming prospects for increased Iranian oil supply. In company news, Australia-based enterprise software firm TechnologyOne surged 10%, becoming the benchmark's top gainer after reporting a 31% increase in first-half results and raising its fiscal 2025 profit outlook to 13% to 17%. New Zealand's benchmark S&P/NZX 50 index rose 0.6% to 12,702.42. Around the globe, Japan's Nikkei was up 0.85%. The U.S. S&P 500 index and the Nasdaq were mostly steady on Monday. (Reporting by Roshan Thomas in Bengaluru; Editing by Sherry Jacob-Phillips)
