Latest news with #DavidChao
Yahoo
31-07-2025
- Business
- Yahoo
Morning bid: Dangers abound ahead of deadline day
A look at the day ahead in European and global markets from Gregor Stuart Hunter We are now about halfway through the most action-packed part of the week. The eye of the storm, if you will. In case you have forgotten, today we are catching up on corporate earnings, key economic data releases, several central bank interest rate decisions, and all the latest twists and turns in trade negotiations before new U.S. tariffs kick in on Friday. Hot off the presses: The yen appreciated 0.6% immediately after the Bank of Japan kept rates on hold as widely expected. Markets are focused on an upwards revision in inflation forecasts, with Governor Ueda due to speak shortly as traders anticipate rate hikes may be back on the agenda this year. With second-quarter earnings season halfway complete, Nasdaq futures ripped 1.3% higher after blow-out earnings from Microsoft and Meta Platforms. The U.S. dollar held steady after hitting a two-month high, on track to tally its first monthly gain all year. [FRX/] "It has been a great earnings season so far, and that's the primary reason why U.S. stocks continue to do well, but the full brunt of the tariffs hasn't been felt," said David Chao, global market strategist for Asia-Pacific at Invesco in Singapore. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7%, though it was still on track for its fourth consecutive monthly increase. Stocks in Hong Kong led declines, down 1.1% after official PMI gauges showed weaker-than-expected activity during July. Copper futures plunged 19.4% after U.S. President Donald Trump said the U.S. will impose a 50% tariff on copper. The Korean won appreciated 0.1% after Trump said the U.S. will charge a 15% tariff on imports from South Korea. The Asian country will invest $350 billion in U.S. projects and purchase $100 billion in U.S. energy products. The announcement is the latest in a series of trade policy deals rushed out before the August 1 deadline that Trump set for trade deals before the U.S. imposes what he called Liberation Day tariffs. Trump also issued a blitz of tariff announcements ranging from goods from Brazil to small-value shipments from overseas. In early European trades, pan-region futures were up 0.2%, German DAX futures were up 0.2% and FTSE futures were up 0.1% ahead of another flurry of earnings and inflation data. Key developments that could influence markets on Thursday: * US earnings: Apple, Mastercard * European earnings: Shell, Unilever, British AmericanTobacco, London Stock Exchange Group * German data: Import prices for June, unemployment forJuly, preliminary CPI and HICP for July * French data: Preliminary CPI for July, producer prices forJune * Eurozone data: Unemployment for June Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. (By Gregor Stuart Hunter; Editing by Christopher Cushing) 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
Reuters
31-07-2025
- Business
- Reuters
Morning Bid: Dangers abound ahead of deadline day
A look at the day ahead in European and global markets from Gregor Stuart Hunter We are now about halfway through the most action-packed part of the week. The eye of the storm, if you will. In case you have forgotten, today we are catching up on corporate earnings, key economic data releases, several central bank interest rate decisions, and all the latest twists and turns in trade negotiations before new U.S. tariffs kick in on Friday. Hot off the presses: The yen appreciated 0.6% immediately after the Bank of Japan kept rates on hold as widely expected. Markets are focused on an upwards revision in inflation forecasts, with Governor Ueda due to speak shortly as traders anticipate rate hikes may be back on the agenda this year. With second-quarter earnings season halfway complete, Nasdaq futures ripped 1.3% higher after blow-out earnings from Microsoft (MSFT.O), opens new tab and Meta Platforms (META.O), opens new tab. The U.S. dollar held steady after hitting a two-month high, on track to tally its first monthly gain all year. "It has been a great earnings season so far, and that's the primary reason why U.S. stocks continue to do well, but the full brunt of the tariffs hasn't been felt," said David Chao, global market strategist for Asia-Pacific at Invesco in Singapore. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab fell 0.7%, though it was still on track for its fourth consecutive monthly increase. Stocks in Hong Kong (.HSI), opens new tab led declines, down 1.1% after official PMI gauges showed weaker-than-expected activity during July. Copper futures plunged 19.4% after U.S. President Donald Trump said the U.S. will impose a 50% tariff on copper. The Korean won appreciated 0.1% after Trump said the U.S. will charge a 15% tariff on imports from South Korea. The Asian country will invest $350 billion in U.S. projects and purchase $100 billion in U.S. energy products. The announcement is the latest in a series of trade policy deals rushed out before the August 1 deadline that Trump set for trade deals before the U.S. imposes what he called Liberation Day tariffs. Trump also issued a blitz of tariff announcements ranging from goods from Brazil to small-value shipments from overseas. In early European trades, pan-region futures were up 0.2%, German DAX futures were up 0.2% and FTSE futures were up 0.1% ahead of another flurry of earnings and inflation data. Key developments that could influence markets on Thursday: Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here.
CNA
23-07-2025
- Business
- CNA
CNA938 Rewind - Stock Take Today: Bessent's assurance on Powell, Japan markets post elections
On the daily markets analysis on Open For Business, Andrea Heng and Hairianto Diman speak with David Chao, Global Market Strategist from Invesco Asia Pacific.
Free Malaysia Today
10-07-2025
- Business
- Free Malaysia Today
London hits record as trade deal hopes fan rally on markets
London's stock market jumped 1% to a record high at the open, with Frankfurt and Paris also advancing. (AFP pic) HONG KONG : London hit a record high today as equity markets were boosted by optimism that governments will hammer out deals to avoid the worst of US President Donald Trump's tariffs, even after he broadened his range of measures. Negotiators from around the world have tried to reach agreements with Washington since Trump in April unveiled his 'Liberation Day' tariff bombshell, with a July 9 deadline recently pushed back to Aug 1. Letters have been sent in recent days to more than 20 trading partners – including Japan and South Korea – setting out new tolls, with some higher and some lower than the initial levels. Trump also said this week he would put a 50% tariff on copper imports, while considering a 200% charge for pharmaceuticals. However, analysts said the threats are largely being seen as negotiating tools, and investors have increasingly taken them in their stride, with the S&P 500 and Nasdaq hitting all-time highs in New York. David Chao, global market strategist for Asia Pacific at Invesco, painted a positive picture even in light of the threatened levies. 'Should the US ultimately impose higher tariffs on Asian countries, the region appears better positioned to withstand the resulting headwinds,' he wrote. 'A softer dollar should give Asian central banks greater flexibility to ease policy to support their domestic economies without heightened concerns over currency depreciation,' he added. London jumped 1% to a record high at the open, with Frankfurt and Paris also advancing. In Asia, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei and Jakarta all rose, though Tokyo edged down with Manila, Bangkok and Wellington. The rallies followed a healthy lead from Wall Street, where the Nasdaq hit another peak thanks to a surge in Nvidia that pushed the firm to a US$4 trillion valuation at one point. The upbeat mood helped push bitcoin above US$112,000 for the first time. There was also little reaction to news that Trump had hit Brazil with a 50% tariff as he blasted the trial of the country's ex-president Jair Bolsonaro. In a letter addressed to Brazilian President Luiz Inacio Lula da Silva, he called the treatment of his right-wing ally an 'international disgrace'. Bolsonaro is on trial over accusations he plotted a coup after his 2022 election loss to Lula. Lula said he will impose reciprocal levies on the US. Brazil had not been among those threatened with these higher duties previously, with the US running a goods trade surplus instead with the South American giant. Traders were given few guides on the Federal Reserve's interest rate plans after minutes from its June policy meeting showed officials divided on the best way forward. Boss Jerome Powell's patient approach to lowering borrowing costs has drawn the ire of Trump, who said yesterday on social media that they were 'AT LEAST 3 Points too high'. While the board sees the president's tariffs as inflationary, the minutes said there remained 'considerable uncertainty' on the timing, size and duration of the effects. Companies might choose not to raise consumer prices until they depleted their product stockpiles, for example, but supply chain disruptions caused by the levies could trigger larger price hikes. 'While a few participants noted that tariffs would lead to a one-time increase in prices and would not affect longer-term inflation expectations, most participants noted the risk that tariffs could have more persistent effects on inflation,' the report said.
France 24
10-07-2025
- Business
- France 24
Stocks mostly rise on trade deal optimism
Negotiators from around the world have tried to reach agreements with Washington since Trump in April unveiled his "Liberation Day" tariff bombshell, with a July 9 deadline recently pushed back to August 1. Letters have been sent in recent days to more than 20 trading partners -- including Japan and South Korea -- setting out new tolls, with some higher and some lower than the initial levels. The US president also said this week he would put a 50 percent tariff on copper imports, while considering a 200 percent charge for pharmaceuticals. However, analysts said the threats are largely being seen as negotiating tools, and investors have increasingly taken them in their stride, with the S&P 500 and Nasdaq hitting all-time highs in New York. And David Chao, global market strategist for Asia Pacific at Invesco, painted a positive picture even in light of the threatened levies. "Should the US ultimately impose higher tariffs on Asian countries, the region appears better positioned to withstand the resulting headwinds," he wrote. "A softer dollar should give Asian central banks greater flexibility to ease policy to support their domestic economies without heightened concerns over currency depreciation." Asian stocks mostly advanced after a healthy lead from Wall Street, where the Nasdaq hit another peak thanks to a surge in Nvidia that pushed the firm to a $4 trillion valuation at one point. Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, Manila and Jakarta all rose, though Tokyo edged down with Wellington. The broadly upbeat mood helped push bitcoin above $112,000 for the first time. There was also little reaction to news that Trump had hit Brazil with a 50 percent tariff as he blasted the trial of the country's ex-president Jair Bolsonaro. In a letter addressed to Brazilian President Luiz Inacio Lula da Silva, he called the treatment of his right-wing ally an "international disgrace". Bolsonaro is on trial over accusations he plotted a coup after his 2022 election loss to Lula. Lula said he will impose reciprocal levies on the United States. Brazil had not been among those threatened with these higher duties previously, with the United States running a goods trade surplus instead with the South American giant. Traders were given few guides on the Federal Reserve's interest rate plans after minutes from its June policy meeting showed officials divided on the best way forward. Boss Jerome Powell's patient approach to lowering borrowing costs has drawn the ire of Trump, who on Wednesday said they were "at least" three points too high. While the board sees the president's tariffs as inflationary, the minutes said there remained "considerable uncertainty" on the timing, size and duration of the effects. Companies might choose not to raise consumer prices until they depleted their product stockpiles, for example, but supply chain disruptions caused by the levies could trigger larger price hikes. "While a few participants noted that tariffs would lead to a one-time increase in prices and would not affect longer-term inflation expectations, most participants noted the risk that tariffs could have more persistent effects on inflation," the report said. Key figures at around 0230 GMT Tokyo - Nikkei 225: DOWN 0.5 percent at 39,610.61 (break) Hong Kong - Hang Seng Index: UP 0.2 percent at 23,938.07 Shanghai - Composite: UP 0.3 percent at 3,503.13 Euro/dollar: UP at $1.1741 from $1.1719 on Wednesday Pound/dollar: UP at $1.3608 from $1.3590 Dollar/yen: DOWN at 145.95 yen from 146.30 yen Euro/pound: UP at 86.28 pence from 86.21 pence Brent North Sea Crude: DOWN 0.1 percent at $70.15 per barrel New York - Dow: UP 0.5 percent at 44,458.30 (close) © 2025 AFP
