Latest news with #Capital.com
Time of India
an hour ago
- Business
- Time of India
Asian stocks start cautious, dollar holds drop
In geopolitics, Russia and Ukraine wrapped up a second round of talks in Istanbul that failed to bring the two sides closer to ending the war, but laid the groundwork for a new exchange of prisoners. Asian shares began cautiously following a tech-driven rally in US stocks, while bonds remained steady. Investors are closely monitoring trade war developments, including extended tariff exclusions and potential US-China talks. Japan faces debt market pressures, and Russia-Ukraine talks concluded without a resolution, setting the stage for a prisoner exchange. Market volatility is expected amid trade tensions and geopolitical concerns. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Asian shares were off to a tepid start at the open Tuesday after a rebound in big tech drove US stocks higher.A regional stock index swung between small gains and losses while equity-index futures for the US dipped 0.2%. Bonds were steady in early Asian trading and the dollar was little changed after hitting its lowest since 2023 in the last session. Technology shares helped lift the S&P 500 0.4% at the start of what's historically one of its quietest months for extended gains early Tuesday, while gold was steady after clocking its biggest daily gain in four are keeping a close eye on the latest twists in the trade war after a slew of headlines Monday. The US extended the exclusion of Section 301 tariffs on some Chinese goods until Aug. 31. President Donald Trump's administration wants countries to provide their 'best offer' on trade negotiations by Wednesday, Reuters reported. The US is pushing for a call between Trump and Xi Jinping after the two countries accused each other of violating a trade agreement reached last month.'We continue to expect market volatility as investors digest fresh tariff headlines and incoming US economic data ,' said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. 'Fiscal worries remain, and geopolitical tensions are heating up.'Trump has long said that direct talks with Xi were the only way to resolve differences between the nations, but the Chinese leader has been reluctant to get on the phone with his American counterpart — preferring that advisers negotiate key issues. The last known conversation between Trump and Xi took place in January before the US president's Trump economic adviser Kevin Hassett signaled Sunday the White House was anticipating a call this week with the Chinese Japan's top trade negotiator Ryosei Akazawa is considering returning to the US for another round of trade negotiations this week as expectations mount for a deal as early as this month.'The markets keep shrugging off simmering trade war risks,' Kyle Rodda, a senior market analyst at 'While it has slipped down the list of priorities for market participants, below trade policy, fiscal policy and macroeconomic data, a very solid set of quarterly results from mega cap tech is enticing investors into the market.'In Japan, attention will once again shift to a debt market sale Tuesday that may ramp up pressure on the government to adjust its borrowing plans and calm investor on the heels of auctions last month that exposed a lack of demand, the finance ministry will sell ¥2.6 trillion ($18 billion) of 10-year geopolitics, Russia and Ukraine wrapped up a second round of talks in Istanbul that failed to bring the two sides closer to ending the war, but laid the groundwork for a new exchange of prisoners.
Mid East Info
9 hours ago
- Business
- Mid East Info
ECB Preview: How many more cuts should we expect?
By Daniela Sabin Hathorn, senior market analyst at The European Central Bank (ECB) will hold its next monetary policy meeting on Thursday, June 5, with markets widely anticipating another interest rate cut. Interest Rate Outlook: At its most recent meeting in April, the ECB reduced its key interest rates by 25 basis points, bringing the deposit facility rate to 2.25%. Markets are now pricing in another cut in June, though expectations for further easing beyond that remain uncertain. A potential pause in July is gaining traction, as the ECB evaluates incoming economic data and inflation dynamics. Source: refinitiv Economic Considerations: The ECB's policy decisions hinge on maintaining a stable balance between inflation control and supporting economic growth. Inflation in the Eurozone is projected to ease further throughout 2025. The preliminary May CPI reading, due two days before the meeting, is forecast by Reuters to show headline inflation falling to the ECB's 2% target. A confirmation of this decline would likely reinforce the case for another rate cut. However, given the central bank has already eased rates by 175 basis points over the past year, divergence within the Governing Council has emerged. Some members advocate for caution, signalling that the timing and pace of further rate cuts are still subject to debate. On the growth front, the Eurozone faces headwinds from global trade tensions and subdued consumer demand. Rising mortgage payments are already prompting households to cut spending or dip into savings, posing a risk to overall consumption. However, recent GDP data indicates modest resilience, with quarterly growth picking up modestly over the past year. The ECB has also stressed the importance of structural financial reforms and joint EU-level investments, particularly in defence and technology, to enhance long-term economic stability. Market Implications: Investors will be closely parsing the ECB's language for signals on the future path of interest rates. A dovish stance, including a June rate cut with a signal of continued easing, would likely boost European equities, especially rate-sensitive sectors, as lower yields make stocks more attractive than bonds. In currency markets, a dovish ECB would likely weaken the euro, especially against the US dollar, given expectations that the Federal Reserve will hold rates steady for longer. This could extend recent downside pressure on EUR/USD. Conversely: If the ECB cuts rates but expresses concern about lingering inflation risks, this could unsettle equity markets while offering some support to the euro. A hawkish stance, involving either no rate cut or messaging that downplays further easing, may pressure equities but could strengthen EUR/USD, particularly if the ECB expresses greater confidence in the Eurozone's economic resilience. Conclusion: The ECB's June meeting will be a pivotal moment in determining the trajectory of monetary policy for the second half of 2025. With inflation nearing target and economic signals still mixed, the central bank must carefully navigate the trade-off between supporting growth and anchoring price stability.
Perth Now
a day ago
- Business
- Perth Now
Aussie shares fall as trade worries weigh on sentiment
Australian shares have started the month of June in the red, after a resumption of hawkish US tariff talk sent jitters through equities markets. The S&P/ASX200 fell 26.4 points, or 0.31 per cent, to 8,408.3 in Monday morning trade, as the broader All Ordinaries slipped 27.9 points, or 0.31 per cent, to 8,633.1. US President Donald Trump on Friday threatened to double tariffs on imported steel to 50 per cent, while accusing Beijing of violating an agreement to mutually roll back trade restrictions on critical minerals. Trade worries helped send several Asian indexes lower, with Japan's Nikkei down 1.4 per cent and Hong Kong's Hang Seng index falling more than two per cent. "Trade policy has returned as the primary driver for the markets, with US President Trump's hot rhetoric regarding China and its adherence to previous trade agreements sparking a sell-off on Friday night," market analyst Kyle Rodda said. "Along with the typical trade policy uncertainty, there may be an element of market participants taking risk off the table before such a data heavy week." All but three of 11 local sectors were trading lower by lunchtime with utilities, energy stocks and minerals leading losses. Financials were also dragged, falling 0.3 per cent as ANZ, NAB and Westpac sold off more than 0.8 per cent each, while CBA was the best performer, eking a 0.1 per cent gain to $176.10 per share. Macquarie Group was down 1.4 per cent to $211.26. Large cap miners weighed heavily, with Fortescue (down 2.4 per cent), Rio Tinto (down 2.3 per cent) and BHP (down 1.1 per cent) all sliding as iron ore prices slipped more than three per cent to $US96.15 a tonne since Friday as trade tensions escalated. Goldminers were mixed, after futures whipsawed over the weekend to settle slightly higher on Monday around $US3,325 ($A5,150) an ounce. Energy stocks slipped 0.9 per cent as OPEC+ confirmed an oil supply hike of 411,000 barrels per day (bpd) in July. Brent crude futures are trading at $US64.07 a barrel, up roughly 1.7 per cent since Friday afternoon as US Treasury Secretary Scott Bessent expressed confidence the US and China would "iron out" trade tensions soon. Soul Patts and Brickworks were the top-200's best performers after announcing a $14 billion merger, their share prices rallying 11.6 per cent and 21.1 per cent respectively. Mineral Resources was at the other end of the table, slipping more than 7.5 per cent to $20.52. The Australian dollar has edged higher against the greenback, buying 64.60 US cents, up from 64.23 on Friday at 5pm. The greenback has been fading against most major currencies since Friday, after a US trade court decision to block Liberation Day tariffs was held back by a federal appeals court.
West Australian
a day ago
- Business
- West Australian
Aussie shares fall as trade worries weigh on sentiment
Australian shares have started the month of June in the red, after a resumption of hawkish US tariff talk sent jitters through equities markets. The S&P/ASX200 fell 26.4 points, or 0.31 per cent, to 8,408.3 in Monday morning trade, as the broader All Ordinaries slipped 27.9 points, or 0.31 per cent, to 8,633.1. US President Donald Trump on Friday threatened to double tariffs on imported steel to 50 per cent, while accusing Beijing of violating an agreement to mutually roll back trade restrictions on critical minerals. Trade worries helped send several Asian indexes lower, with Japan's Nikkei down 1.4 per cent and Hong Kong's Hang Seng index falling more than two per cent. "Trade policy has returned as the primary driver for the markets, with US President Trump's hot rhetoric regarding China and its adherence to previous trade agreements sparking a sell-off on Friday night," market analyst Kyle Rodda said. "Along with the typical trade policy uncertainty, there may be an element of market participants taking risk off the table before such a data heavy week." All but three of 11 local sectors were trading lower by lunchtime with utilities, energy stocks and minerals leading losses. Financials were also dragged, falling 0.3 per cent as ANZ, NAB and Westpac sold off more than 0.8 per cent each, while CBA was the best performer, eking a 0.1 per cent gain to $176.10 per share. Macquarie Group was down 1.4 per cent to $211.26. Large cap miners weighed heavily, with Fortescue (down 2.4 per cent), Rio Tinto (down 2.3 per cent) and BHP (down 1.1 per cent) all sliding as iron ore prices slipped more than three per cent to $US96.15 a tonne since Friday as trade tensions escalated. Goldminers were mixed, after futures whipsawed over the weekend to settle slightly higher on Monday around $US3,325 ($A5,150) an ounce. Energy stocks slipped 0.9 per cent as OPEC+ confirmed an oil supply hike of 411,000 barrels per day (bpd) in July. Brent crude futures are trading at $US64.07 a barrel, up roughly 1.7 per cent since Friday afternoon as US Treasury Secretary Scott Bessent expressed confidence the US and China would "iron out" trade tensions soon. Soul Patts and Brickworks were the top-200's best performers after announcing a $14 billion merger, their share prices rallying 11.6 per cent and 21.1 per cent respectively. Mineral Resources was at the other end of the table, slipping more than 7.5 per cent to $20.52. The Australian dollar has edged higher against the greenback, buying 64.60 US cents, up from 64.23 on Friday at 5pm. The greenback has been fading against most major currencies since Friday, after a US trade court decision to block Liberation Day tariffs was held back by a federal appeals court.
CNBC
4 days ago
- Business
- CNBC
Dollar poised for fifth-straight monthly drop on trade, fiscal uncertainty
The U.S. dollar softened on Friday, heading for its fifth-straight monthly decline as traders braced for further bouts of uncertainty around trade and fiscal health, while investors awaited a pivotal inflation report later in the day. The greenback had a choppy week, ending lower in the previous session after a federal court temporarily reinstated the most sweeping of President Donald Trump's tariffs, a day after a separate trade court had ordered an immediate block on tariffs. Trump on Thursday criticized the trade court's decision and said he hoped the Supreme Court would overturn the decision. The uncertainty around tariffs has taken a vice-like grip on the markets as investors flee U.S. assets looking for alternatives, worried that Trump's erratic policies could challenge the strength and outperformance of U.S. markets. "The (court) decision marks the beginning of a new source of uncertainty rather than the total closure of another," said Kyle Rodda, senior financial market analyst at noting the mood in the markets was cautious. Thursday's weekly jobless claims and economic growth data did little to placate worries of an economic downturn. The focus will be on the Federal Reserve's preferred inflation data - the personal consumption expenditure report - later on Friday. Much of the month was also dominated by worries about fiscal debt levels in developed economies, highlighted by weak appetite for freshly issued longer-dated credit in the U.S. and in Japan. On Friday, the euro was slightly firmer at $1.1378, while the Swiss franc was also stronger at 0.8216 per dollar. The U.S. currency was set for monthly declines against the Swiss franc, the euro as well as the pound. The dollar index, which tracks the U.S. unit against a basket of six other currencies, was muted on the day. The index was set for a decline of 0.4% in May, on course for its fifth month in the red. On the flip side, markets have been taking notice of emerging market assets in recent weeks. An index tracking emerging market currencies has gained 2.2% for the month - its biggest one-month rise since November 2023. On Friday, the Japanese yen firmed 0.3% to 143.73 per dollar after data showed underlying inflation in Tokyo hit a more than two-year high in May, keeping alive the chances of further interest rate hikes from the Bank of Japan. However, the dollar is on track for a small monthly rise against the yen, its first after five previous months in the red. Markets are also on the lookout for any fresh clues on highly anticipated trade deals as the Trump-mandated July 9 deadline on tariffs draws near. Yields on longer-dated U.S. and Japanese bonds have eased this week, but still remain close to multi-month highs as investors question debt sustainability of the economies. Elsewhere, the Australian dollar eased a bit to $0.6429 and was set for a marginal rise in May. The New Zealand dollar last bought $0.5973.
