Latest news with #ChibuikeOguh
Mint
14 hours ago
- Business
- Mint
Shares rally on China-US trade hopes, dollar trades at multi-year lows
(Updates with U.S. markets open, adds New York dateline, fresh analyst quote) S&P 500 and Nasdaq reach record highs European shares rise on easing US-China trade tension Dollar holds near lowest levels in more than three years Oil prices gain, gold slips By Chibuike Oguh and Elizabeth Howcroft NEW YORK/PARIS, June 27 (Reuters) - Global shares reached a record high on Friday, helped by market optimism over signs of progress in U.S.-China trade talks, while the dollar held close to its lowest levels in more than three years. The benchmark S&P 500 index and Nasdaq hit all-time highs, lifted partly by gains in megacap growth stocks including Nvidia and Amazon. The S&P 500 index and Nasdaq are headed for a weekly gain and are up about 5% this year overall, following a volatile first half of the year, dominated by U.S. President Donald Trump's tariff announcement on April 2, which sent stocks plunging. The pan-European STOXX 600 index was up 0.66% on the day, set for a weekly gain. The MSCI World Equity index touched a record high and was set for a weekly gain of 3.2%. London's FTSE 100 rose 0.35%. Asian shares hit their highest in more than three years in early trading. "It's a continuation of this monster rally since early April," said James St. Aubin, chief investment officer at Ocean Park Asset Management in Santa Monica, California. "It's been quite an improbable comeback and it continues, assuming that the tariff controversy is no longer a major issue in the psyche of the market." Investors saw a trade agreement between the United States and China on Thursday on how to expedite rare earth shipments to the United States as a positive sign, amid efforts to end the tariff war between the world's two biggest economies. Trump has set July 9 as the deadline for the European Union and other countries to reach a deal to reduce tariffs. Traders took confidence too from a ceasefire between Iran and Israel and markets stepped up bets for U.S. rate cuts amid the possibility of Trump announcing a new, more dovish Federal Reserve chair ahead of the expiration of Jerome Powell's term next year. Data showed U.S. consumer spending unexpectedly fell by 0.1% in May for the second time this year, while monthly inflation maintained a moderate pace of increase. "We're starting to see earnings estimates for the next 12 months on the rise again after taking a little bit of a dip and that's what the market is buying into," St. Aubin added. The dollar remained on the backfoot, hovering near its lowest level in 3-1/2 years against the euro and sterling. The dollar weakened 0.16% to 0.799 against the Swiss franc but was up 0.18% to 144.63 against the Japanese yen . The euro was at $1.1708, getting a lift after data showed French consumer prices rose more than expected in June. The dollar index was down 0.1% on the day at 97.269, holding near its lowest in more than three years. The dollar is having its worst start to a year since the era of free-floating currencies began in the early 1970s. Traders have stepped up their bets on U.S. rate cuts, and are now pricing in 64 basis points (bps) of easing this year versus 46 bps expected on Friday. The yield on benchmark U.S. 10-year notes rose 1.2 basis points to 4.265%. German 30-year government bond yields were on track for their biggest weekly increase in nearly four months after rising this week on expectations of increased borrowing by Germany's government. Oil prices meanwhile rose but were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 0.66% to $68.18 a barrel while U.S. West Texas Intermediate crude was up by 1% to $65.91 . Spot gold fell 1.72% to $3,270.50 an ounce. (Reporting by Chibuike Oguh in New York and Elizabeth Howcroft in Paris; Additional reporting by Dhara Ranasinghe; Editing by Kim Coghill and Emelia Sithole-Matarise)
Yahoo
13-05-2025
- Automotive
- Yahoo
Hertz shares slump after quarterly results miss Wall Street estimates
By Chibuike Oguh NEW YORK (Reuters) -Shares of Hertz Global fell more than 20% on Tuesday after the rental car company's results missed Wall Street expectations due to reduced vehicle fleet and a moderation in bookings. Estero, Florida-based Hertz reported a nearly 13% drop in revenue on Monday to $1.81 billion and a narrower adjusted net loss of $1.12 per share, down 13% from a year ago. Analysts had expected Hertz to report revenue of $2 billion and adjusted net loss per share of 97 cents. Hertz is on track to snap four straight days of gains after falling as low as $5.51, down nearly 21% in early Tuesday trading. It has since trimmed those losses and was off 13.5% at $5.99, but is up nearly 61% year-to-date. Hertz said the drop in its revenue was primarily due to reduced fleet capacity, which is down 8% year-on-year. The company has seen a moderation in demand for bookings from corporate, government and U.S. inbound customers. Last month, hedge fund billionaire Bill Ackman boosted his stake in Hertz to nearly 20% through his investment management company Pershing Square, sending its shares up 56%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Dollar falls, euro gains after Merz elected German chancellor
By Chibuike Oguh NEW YORK (Reuters) - The dollar fell broadly on Tuesday on worries that U.S. President Donald Trump's touted trade deals have yet to materialize, while the euro extended gains after the German parliament elected conservative leader Friedrich Merz as chancellor. Investors are waiting for details on trade deals the Trump administration has said it is negotiating with other countries, including China. Trump indicated on Sunday that some deals would be announced this week. "The market is getting nervous that we're starting to eat away at the schedule since the 90-day tariff reprieve without anything meaningful being announced," said Eugene Epstein, head of structuring for North America at Moneycorp. "There's a lot of good sentiment but because of a distinct lack of formal substance that I've seen, I think the market is starting to get uneasy again." The dollar was last down 0.86% at 142.445 Japanese yen . The Taiwanese dollar pared gains following a record rally against the greenback amid market disquiet over Trump's tariffs. The currency was last down 2.6% at 29.931 per dollar. The Canadian dollar strengthened after Prime Minister Mark Carney bluntly told Trump during a White House visit on Tuesday that Canada would never be for sale. The Canadian dollar strengthened 0.39% versus the greenback to C$1.38 per dollar. The euro extended gains after Merz secured the votes needed to become German chancellor following a humiliating and unprecedented defeat on the first attempt. The single currency was last up 0.50% to $1.1371. The Commerce Department reported on Tuesday the U.S. trade deficit widened 14% to a record $140.5 billion in March as businesses boosted imports ahead of Trump's tariffs. Against the Swiss franc, the dollar gave up earlier gains to edge down 0.09% to 0.82145 franc. Swiss National Bank Chairman Martin Schlegel said the SNB is ready to intervene in currency markets and cut interest rates even below zero to prevent inflation falling below its price stability target. Markets are focused on Wednesday's Federal Reserve policy meeting, in which the U.S. central bank is expected to hold rates steady. Fed Chairman Jerome Powell is unlikely to provide clear guidance on how the central bank plans to respond to U.S. import tariffs, Macquarie analysts led by Thierry Wizman wrote in an investor note. "If traders wish to believe that the Fed will come to the rescue of the world tomorrow and assuage the recent rise in policy uncertainty and political uncertainty with a signal of overt 'dovishness,' they should think again," the analysts wrote.
Yahoo
12-04-2025
- Business
- Yahoo
Dollar slides with investor confidence shaken in safety of US assets
By Chibuike Oguh and Lucy Raitano NEW YORK/LONDON (Reuters) -The dollar continued to slide against major currencies on Friday as the back-and-forth over import tariffs shook investor confidence in the safety of the greenback, sending it to its lowest level in a decade against the Swiss franc and a three-year low versus the euro. China increased its tariffs on U.S. imports to 125% from 84% on Friday, retaliating against U.S. President Donald Trump's decision to hike duties on Chinese goods to a total of 145% after pausing many of his latest tariff hikes on most countries. The dollar has been hit hard by a global selloff that spread to stocks and even safe-haven U.S. Treasuries. The yields on benchmark 10-year notes are on course for their biggest weekly jump since 2001. [MKTS/GLOB] Brad Bechtel, global head of FX at Jefferies, said dollar weakness is being driven partly by the view that U.S. economic exceptionalism is waning - with the potential of a looming recession - and a switch from the dollar as a safe-haven asset to the yen and Swiss franc. "There's a great rotation, which is basically foreign investors diversifying away from the U.S. into other regions such as the euro zone. And for those foreign investors still involved in the U.S., they're realizing they need to currency hedge their assets. There's a scramble to do so, which is putting additional pressure on the dollar." Data on Friday showed U.S. consumer sentiment deteriorated sharply in April while 12-month inflation expectations surged to the highest level since 1981 amid unease over the trade tensions. On Wall Street, the benchmark S&P 500, Dow Jones Industrial Average and the Nasdaq Composite indices edged higher after losing ground earlier in the session. They were set to end higher in a week marked by topsy-turvy developments in the global trade war. The dollar was down 0.9% at 0.81650 against the Swiss franc, extending losses in the previous session when it plunged to its lowest level since January 2015. It is on track for its biggest weekly drop since November 2022. The greenback was down 0.51% at 144.05 yen after hitting its lowest level since September 2024. It is set for its largest weekly drop since early February. Gold soared past $3,200 an ounce, hitting a fresh new high supported partly by the dollar weakness. Spot gold rose 1.75% to $3,229.46 'LOSS OF CONFIDENCE' European Central Bank President Christine Lagarde on Friday said her central bank was ready to deploy its instruments to maintain financial stability and that it had a solid track record in devising tools when required to deal with turbulence. The euro surged 1.25% to $1.134050, after hitting its highest level since February 2022. It is on track for its biggest weekly gain since early last month. The single currency also rose 0.43% against the pound in a sign of its outperformance. The pound was up 0.89% against the dollar, at $1.30825. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.56% to 99.958 - hitting its lowest mark since April 2022. It is on track for its biggest weekly drop since early last month. China's yuan fell sharply against the euro, which hit an 11-year high against the currency in the offshore market. This week, the Chinese currency fell to its weakest level on record against the dollar, both onshore and offshore, though it has since rebounded. The dollar was last down 0.45% against the offshore yuan at 7.2807. "Part of the dollar weakness in the past few weeks has been linked to worries over a recession or the Fed cutting rates, but it's kind of gone beyond that," said Win Thin, global head of markets strategy at Brown Brothers Harriman in New York. "It's more really loss of confidence and credibility in the dollar and then in U.S. policymaking. Typically in risk-off episodes, the dollar should gain as a safe haven, but it's really been the yen and Swiss franc that have been picking that up, and the dollar has been under pressure." Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Stocks lose ground amid inflation concerns, trade war worries
By Chibuike Oguh and Marc Jones NEW YORK/LONDON (Reuters) -Safe-haven gold hit a fresh record high on Friday as an index of global shares fell, weighed down by worries over a looming trade war sparked by tariff decisions from U.S. President Donald Trump. U.S. traders had new sticky inflation data to grumble about [.N] but it was Trump's 25% tariff on auto imports and plans for much broader levies next week that continued to cause the nail-biting. On Wall Street, all three main indexes ended lower and notched their third straight losses. The biggest losers were communication services, consumer discretionary, technology and financial equities. Utilities stocks finished higher. The Dow Jones Industrial Average fell 1.69% to 41,583.90, the S&P 500 fell 1.97% to 5,580.94 and the Nasdaq Composite fell 2.7% to 17,322.99. Europe's STOXX 600 index finished down 0.77% and ended the week down 1.38%, dragged down by a nearly 1% drop by the car and auto parts sector. [.EU] MSCI's gauge of stocks across the globe fell 1.58% to 829.89. It is on track to end the week down 1.44%. State Street's head of global macro strategy, Michael Metcalfe, said U.S. car tariffs had been more aggressive than expected, especially as there had been no adjustments made for U.S. neighbors Mexico and Canada. "What I don't know is whether the hawkishness of the auto tariffs is going to translate to the broader tariffs that we are going to get next week," Metcalfe said. "And that is keeping risk appetite on the back foot." Gold prices set another new peak of $3,086.70 as the threat of trade wars drives a rush towards the safe-haven metal. It was last up 0.86% to $3,082.25 an ounce. [GOL/] For the quarter it is now up more than 17%, which is its best quarterly performance since 1986, and its 18th record high this year. U.S. gold futures settled 0.8% higher at $3,114.30. Wasif Latif, chief investment officer at Sarmaya Partners in New Jersey, said gold prices have been buoyed by rising inflation, elevated geopolitical tensions, and fiscal risks, particularly deficit spending in the U.S. and other countries. "We continue to see inflation as being stubborn, sticky and just won't go away. The geopolitical environment continues to be risky and elevated ... You can see the fiscal risk on the U.S. budget side but also broader Western sovereign debt and it's getting challenging with the budget continuing to run a deficit and interest rates remaining stubbornly high," Latif said. In the bond market, U.S. Treasury yields declined as investors assessed the likely negative hit on growth from Trump's tariffs. Traders in interest rate futures were betting on a total of about 66 basis points in interest rate cuts this year, according to LSEG data. The yield on benchmark U.S. 10-year notes fell 12 basis points to 4.249%. Traders now see an 80% chance of a 25-basis-point ECB rate cut in April from around a 50% chance a week ago. German Bund yields, the euro zone's benchmark of borrowing costs, fell 0.2 basis points to 2.731%. [GVD/EUR] The dollar weakened against major currencies, including the Japanese yen and euro, after the hotter-than-expected U.S. inflation data added to concerns about tariffs. The euro has been one of the big beneficiaries of the greenback's struggles. It is up 0.21% this week against the greenback. The dollar weakened 0.87% to 149.73 against the Japanese yen, while the euro rose 0.29% at $1.0832. Against the Swiss franc, the dollar weakened 0.06% to 0.881. The Canadian dollar weakened 0.07% versus the greenback to C$1.43 per dollar. In commodities, oil prices turned flat as traders assessed a tightening of crude supplies along with new U.S. tariffs and their expected effect on the world's economy. [O/R] Brent crude futures fell 0.5% to settle at $73.63 a barrel. U.S. West Texas Intermediate crude futures fell 0.8% to close at $69.36 a barrel. Sign in to access your portfolio
