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Daily Tribune
15 hours ago
- Business
- Daily Tribune
Stocks slide as Trump, Xi speak amid trade tensions
Stocks markets slid yesterday after US President Donald Trump and Chinese leader Xi Jinping spoke amid their trade war, while the European Central Bank signalled an end to its rate-cut cycle. Wall Street's major indices rose modestly as trading got underway, but had trouble holding onto the gains and soon slid into the red. Chinese state media reported that Xi had held a widely anticipated call with Trump, with investors hoping it could ease trade tensions -- but no details were provided. The call follows officials from the world's two biggest economies accusing each other of jeopardising a trade war truce agreed last month in Geneva. 'The stock market has traded more timidly of late... mindful that there are a number of loose ends out there on the tariff front, not the least of which is the direction the US-China trade relationship is headed,' said analyst Patrick O'Hare. After his return to the White House Trump launched a tariffs blitz, introducing a 10 percent minimum tariff and higher rates on many countries, with China subject to the highest rates. Some of the higher rates have been suspended as negotiations are underway. European stock markets were also in the red even though the ECB cut its key deposit rate a quarter point to two percent, as expected. It was its eighth reduction since June last year when it began lowering borrowing costs. But ECB President Christine Lagarde stated the central bank is 'getting to the end' of the rate cutting cycle, as inflation has largely dropped to its two percent target in the 20-nation currency bloc. That sent the euro surging against the dollar and European stocks gave up gains. The ECB's series of cuts stands in contrast to the US Federal Reserve, which has kept rates on hold recently amid fears that Trump's levies could stoke inflation in the world's top economy. Investors are now looking to the release on Friday of US non-farm payrolls data, which the Fed uses to help shape monetary policy. Other data released this week has been mixed. April jobs openings data beat expectations, but according to payroll firm ADP private-sector jobs rose by only 37,000 last month. This was a sharp slowdown from April's 60,000 and less than a third of the amount forecast in a Bloomberg survey. Another survey showed activity in the US services sector contracted in May for the first time since June last year.
RTHK
a day ago
- Automotive
- RTHK
US stocks slump as Tesla shares tank on Trump-Musk row
US stocks slump as Tesla shares tank on Trump-Musk row Tesla shares plunged by more than 14 percent, losing over US$100 billion in market capitalisation. Photo: AFP Wall Street stocks tumbled on Thursday as a row between US President Donald Trump and Tesla boss Elon Musk erupted – with the electric vehicle firm's share price tumbling around 14 percent. The Dow Jones slumped 0.3 percent to 42,319 and the S&P 500 lost 0.5 percent to 5,939. The Nasdaq fell 0.8 percent to 19,298. The relationship between Trump and Musk imploded in public view, with the US president expressing disappointment with his billionaire former aide's criticisms. Musk, who had slammed the Republican president's proposed massive spending bill, hit back in real time on social media. Tesla shares plunged by more than 14 percent, losing over US$100 billion in market capitalisation, as Trump said he had asked "crazy" Musk to leave his administration. He also threatened to take away the tech tycoon's government contracts. Patrick O'Hare of said Tesla had weighed "heavily on the broader market," particularly the consumer discretionary sector. "But all in all, the market itself is holding up reasonably well, given the scope of that decline," he added. Investors also digested the outcome of a long-awaited phone call between Trump and Chinese President Xi Jinping, looking for signs that both leaders could open doors to a longer-lasting truce in trade tensions. "There were no new negative developments," O'Hare said, adding that markets appreciated the mutual approach of allowing more time to work things out. Looking ahead, investors will be eyeing official employment data due on Friday, to gauge the health of the US economy as Trump's tariffs ripple through various sectors. (AFP)
Business Times
a day ago
- Business
- Business Times
US: Stocks slump as Tesla shares tank on Trump-Musk row
[WASHINGTON] Wall Street stocks tumbled on Thursday as a row between US President Donald Trump and Tesla boss Elon Musk erupted - with the electric vehicle firm's share price tumbling around 14 per cent. The Dow Jones Industrial Average slumped 0.3 per cent to 42,319.74 and the broad-based S&P 500 Index lost 0.5 per cent to 5,939.30. The tech-heavy Nasdaq Composite Index fell 0.8 per cent to 19,298.45. The relationship between Trump and Musk imploded in public view, with the US president expressing disappointment with his billionaire former aide's criticisms. Musk, who had slammed the Republican president's proposed massive spending bill, hit back in real time on social media. Tesla shares plunged by more than 14 per cent, losing over US$100 billion in market capitalization, as Trump said he had asked 'crazy' Musk to leave his administration. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He also threatened to take away the tech tycoon's government contracts. Patrick O'Hare of said Tesla had weighed 'heavily on the broader market,' particularly the consumer discretionary sector. 'But all in all, the market itself is holding up reasonably well, given the scope of that decline,' he added. Investors also digested the outcome of a long-awaited phone call between Trump and Chinese President Xi Jinping, looking for signs that both leaders could open doors to a longer-lasting truce in trade tensions. 'There were no new negative developments,' O'Hare said, adding that markets appreciated the mutual approach of allowing more time to work things out. Looking ahead, investors will be eyeing official employment data due on Friday, to gauge the health of the US economy as Trump's tariffs ripple through various sectors. AFP
Qatar Tribune
a day ago
- Business
- Qatar Tribune
United States private sector hiring sharply slows, drawing Trump ire
Agencies US private sector hiring hit its slowest pace since 2023 in May, according to data Wednesday from payroll firm ADP, significantly missing expectations in a month where all eyes are on the effects of President Donald Trump's trade war. Private sector employment rose by 37,000 jobs last month, slowing from the 60,000 figure in April, and missing a expectation of 115,000. Trump immediately reacted by pressuring independent Federal Reserve Chair Jerome Powell to cut interest rates. ''Too Late' Powell must now LOWER THE RATE,' Trump said on his Truth Social platform. While the U.S. central bank has started bringing down rates from the high levels of recent years, officials have proceeded cautiously as they monitor progress in cooling stubborn inflation is low, central banks may opt to reduce rates, which typically encourages economic activity by reducing borrowing costs. But Trump's frustration comes at a time when 'hiring is losing momentum' after a strong start to this year, according to ADP chief economist Nela Richardson. She added in a statement that pay growth was also 'little changed in May.' Service-providing sectors like leisure and hospitality, as well as financial activities, still logged gains, according to the ADP report. Goods-producing industries saw a net loss in jobs last month, with employment declining in mining and service sectors also saw job losses, including trade and transportation, as well as business services and education or health services. Pay growth for those who remained in their jobs was little changed at 4.5 percent. For those who switched jobs, pay growth was 7.0 are keeping a close eye on U.S. economic data this week, with official employment figures due Friday. While ADP figures may diverge from the government numbers, experts are monitoring the effects of Trump's global tariffs as they sweep through the world's biggest economy. 'This may be the tip of an iceberg, but it also could be a false start,' said Carl Weinberg, chief economist at High Frequency Economics. 'Whether this report is accurate or not, traders and investors will read today's number as a dark result for trading,' he added. Weinberg also cautioned that as companies get more clarity about tariffs, they could respond to the increased chance of tariff-induced cost hikes by becoming more aggressive about trimming their now, US services sector activity shrank in May for the first time since mid-2024 too, according to the Institute for Supply Management, as Trump's tariffs fueled prices and uncertainty. Since returning to the presidency, Trump has slapped a 10 percent tariff on most trading partners, alongside higher rates on dozens of economies, including the European Union, that have since been put on pause until early July. He has also taken special aim at China with tit-for-tat levies between Washington and Beijing reaching three-figures before both sides reached a temporary deal to lower levels last month.
Time of India
a day ago
- Business
- Time of India
US private sector hiring sharply slows, drawing Trump ire, HR News, ETHRWorld
Advt Advt Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETHRWorld App Get Realtime updates Save your favourite articles Scan to download App Washington: US private sector hiring hit its slowest pace since 2023 in May, according to data Wednesday from payroll firm ADP, significantly missing expectations in a month where all eyes are on the effects of President Donald Trump's trade sector employment rose by 37,000 jobs last month, slowing from the 60,000 figure in April, and missing a expectation of 115, immediately reacted by pressuring independent Federal Reserve Chair Jerome Powell to cut interest rates."'Too Late' Powell must now LOWER THE RATE," Trump said on his Truth Social the US central bank has started bringing down rates from the high levels of recent years, officials have proceeded cautiously as they monitor progress in cooling stubborn inflation is low, central banks may opt to reduce rates, which typically encourages economic activity by reducing borrowing Trump's frustration comes at a time when "hiring is losing momentum" after a strong start to this year, according to ADP chief economist Nela added in a statement that pay growth was also "little changed in May."Service-providing sectors like leisure and hospitality, as well as financial activities, still logged gains, according to the ADP industries saw a net loss in jobs last month, with employment declining in mining and service sectors also saw job losses, including trade and transportation, as well as business services and education or health growth for those who remained in their jobs was little changed at 4.5 those who switched jobs, pay growth was 7.0 percent.- 'A dark result' -Analysts are keeping a close eye on US economic data this week, with official employment figures due ADP figures may diverge from the government numbers, experts are monitoring the effects of Trump's global tariffs as they sweep through the world's biggest economy."This may be the tip of an iceberg, but it also could be a false start," said Carl Weinberg, chief economist at High Frequency Economics."Whether this report is accurate or not, traders and investors will read today's number as a dark result for trading," he also cautioned that as companies get more clarity about tariffs, they could respond to the increased chance of tariff-induced cost hikes by becoming more aggressive about trimming their now, US services sector activity shrank in May for the first time since mid-2024 too, according to the Institute for Supply Management, as Trump's tariffs fueled prices and returning to the presidency, Trump has slapped a 10 percent tariff on most trading partners, alongside higher rates on dozens of economies, including the European Union, that have since been put on pause until early has also taken special aim at China with tit-for-tat levies between Washington and Beijing reaching three-figures before both sides reached a temporary deal to lower levels last the seesawing of Trump's trade policies has snarled supply chains, roiled financial markets and weighed on consumer sentiment."Manufacturing employment is suffering from higher input costs and disruptions to supply chains. At least one vehicle producer was forced to idle production during the first half of May; that is reminiscent of the pandemic," warned KPMG chief economist Diane Swonk in a recent note.
