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Reuters
a day ago
- Business
- Reuters
Shares edge higher in Asia, Nikkei futures near record top
SYDNEY, Aug 11 (Reuters) - Major share indexes crept higher in Asia on Monday as upbeat company earnings underpinned high valuations in the tech sector, while a crucial report on U.S. inflation would likely set the course of the dollar and bonds. While Japan's stock market (.N225), opens new tab was closed for a holiday, futures pushed up to 42,380 and suggested the cash index will test its all-time high of 42,426 this week. EUROSTOXX 50 futures added 0.2%, while FTSE futures rose 0.1% and DAX futures firmed 0.2%. Trade and geopolitics loom large with a U.S. tariff deadline on China due to expire on Tuesday amid expectations it will get extended again, while President Donald Trump and Russian leader Vladimir Putin are due to meet in Alaska on Friday to discuss Ukraine. The main economic release will be U.S. consumer prices on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Federal Reserve target of 2%. An upside surprise would challenge market wagers for a September rate cut, though analysts assume it would have to be a very high number given a downward turn in payrolls is now dominating the outlook. "The tone from the Fed has shifted as a number of officials expressed concerns about growth following the July employment report," said Bruce Kasman, chief economist at JPMorgan. "We now expect the Fed to restart its easing cycle in September," he added. "Recession risks are elevated at 40%, but we do not yet see a case for a larger than 25bp series of cuts." Markets imply around a 90% probability of a September easing, and at least one more cut by year end. Trump's pick for Fed governor, Stephen Miran, may or may not be in place in time to vote for a cut in September, while the choice of a new chair has broadened out to around 10 contenders. The prospect of lower borrowing costs has supported equities, along with a run of strong earnings. Analysts at BofA note 73% of companies had beaten on earnings, well above the 59% long run average, while 78% beat on revenue. "While mentions of 'weak demand' ticked up and tariff concerns remain, corporate sentiment and guidance are improving," they said in a note. S&P 500 futures and Nasdaq futures both edged up 0.1% on Monday to near record highs. Analysts were unsure what to make of a report in the Financial Times that tech majors Nvidia (NVDA.O), opens new tab and AMD (AMD.O), opens new tab have agreed to give the U.S. government 15% of their revenues from chip sales in China, under an arrangement to obtain export licenses for the semiconductors. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab gained 0.3%, while South Korea (.KS11), opens new tab was flat having bounced 2.9% last week. Chinese blue chips (.CSI300), opens new tab added 0.5% after data showed consumer price inflation ticked up in July, but producer prices kept falling as the country's massive manufacturing sector exported deflation to the rest of the world. Figures on industrial output and retail sales for July are due on Friday, and forecasts are for a slight slowdown after a jump the previous month. Currencies were quiet with markets thinned by Japan's absence, with the dollar index a fraction lower at 98.066 after slipping 0.4% last week. The euro added 0.2% to $1.1670 and further away from a recent trough of $1.1392, while the dollar dipped to 147.50 yen having met resistance around 147.90. The Australian dollar eased to $0.6520 ahead of a meeting of the Reserve Bank of Australia which is widely expected to sanction a rate cut, having stunned markets in July by skipping an easing to await more inflation data. The figures turned out benign, so investors have again fully priced a quarter-point cut to 3.60%. In commodity markets, gold fell 0.6% to $3,378 an ounce after wild swings last week on reports the U.S. would slap 39% tariffs on some gold bars, which are major exports of Switzerland. Gold futures pared gains on Friday when the White House said it planned to issue an executive order clarifying the country's stance on gold bar tariffs. Oil prices slipped amid risks the talks between Trump and Putin could make progress to a ceasefire in Ukraine and possibly an eventual easing of sanctions on Russian oil exports. Brent dropped 0.6% to $66.22 a barrel, while U.S. crude eased 0.7% to $63.44 per barrel.
Yahoo
11-07-2025
- Business
- Yahoo
Morning Bid: New tariff drama jolts complacent markets
A look at the day ahead in European and global markets from Stella Qiu The markets got a jolt on Friday from what looked likely to be a dull summer day, when U.S. President Donald Trump took to the TV to inject fresh drama into his simmering trade wars and disrupted Wall Street's recent upward drift to record highs. Trump said tariff letters to Canada and Europe would go out "today or tomorrow" and floated the idea that the blanket tariff rates on other countries that do not get a letter could be set at 15% or 20%, a step up from the current 10% baseline rate. Soon afterwards he posted the letter to Canada on social media, specifying that a 35% tariff rate would be imposed on all Canadian goods from August 1. Market nerves were soothed a bit, however, when an administration official clarified that an exclusion was expected for goods covered by the United States-Mexico-Canada Agreement. Wall Street futures skidded 0.8% and EUROSTOXX 50 futures dropped 0.7% before regaining some composure. They were last down about 0.3%. Currency markets also convulsed but, once the dust settled, the dollar was up about 0.3% on the loonie and the euro had slipped 0.2%. The yen, for its part, has been steadily weakening as the prospects dim for a U.S.-Japan trade deal. The dollar was up 0.6% on Friday at 147.12 yen and is headed for a weekly gain of 1.7%, the biggest this year. On the crosses, the yen is down for a seventh straight week on the euro and hit a five-month low on the Australian dollar. With Trump now saying the EU will get a letter, too, investors suspect trade talks between the two are not going very well. EU officials had been saying they were aiming for a deal before August 1. The economic data calendars in Europe and the U.S. are relatively light on Friday, leaving investors to gear up for second-quarter U.S. corporate earnings next week to gauge the impact of Trump's tariffs. In an ominous sign of what may be to come, Uniqlo owner Fast Retailing warned that tariffs will have a significant impact on its U.S. operation later this year, and plans to raise prices to soften the blow. Its shares tumbled almost 7% in Tokyo. Key developments that could influence markets on Friday: -- UK May monthly GDP -- Canadian jobs numbers for June -- Eurozone final CPI for June -- Possible Trump letter on tariffs to the EU (By Stella Qiu; Editing by Edmund Klamann)
Reuters
11-07-2025
- Business
- Reuters
Morning Bid: New tariff drama jolts complacent markets
A look at the day ahead in European and global markets from Stella Qiu The markets got a jolt on Friday from what looked likely to be a dull summer day, when U.S. President Donald Trump took to the TV to inject fresh drama into his simmering trade wars and disrupted Wall Street's recent upward drift to record highs. Trump said tariff letters to Canada and Europe would go out "today or tomorrow" and floated the idea that the blanket tariff rates on other countries that do not get a letter could be set at 15% or 20%, a step up from the current 10% baseline rate. Soon afterwards he posted the letter to Canada on social media, specifying that a 35% tariff rate would be imposed on all Canadian goods from August 1. Market nerves were soothed a bit, however, when an administration official clarified that an exclusion was expected for goods covered by the United States-Mexico-Canada Agreement. Wall Street futures skidded 0.8% and EUROSTOXX 50 futures dropped 0.7% before regaining some composure. They were last down about 0.3%. Currency markets also convulsed but, once the dust settled, the dollar was up about 0.3% on the loonie and the euro had slipped 0.2%. The yen, for its part, has been steadily weakening as the prospects dim for a U.S.-Japan trade deal. The dollar was up 0.6% on Friday at 147.12 yen and is headed for a weekly gain of 1.7%, the biggest this year. On the crosses, the yen is down for a seventh straight week on the euro and hit a five-month low on the Australian dollar . With Trump now saying the EU will get a letter, too, investors suspect trade talks between the two are not going very well. EU officials had been saying they were aiming for a deal before August 1. The economic data calendars in Europe and the U.S. are relatively light on Friday, leaving investors to gear up for second-quarter U.S. corporate earnings next week to gauge the impact of Trump's tariffs. In an ominous sign of what may be to come, Uniqlo owner Fast Retailing (9983.T), opens new tab warned that tariffs will have a significant impact on its U.S. operation later this year, and plans to raise prices to soften the blow. Its shares tumbled almost 7% in Tokyo. Key developments that could influence markets on Friday: -- UK May monthly GDP -- Canadian jobs numbers for June -- Eurozone final CPI for June -- Possible Trump letter on tariffs to the EU
Yahoo
11-07-2025
- Business
- Yahoo
Morning Bid: New tariff drama jolts complacent markets
A look at the day ahead in European and global markets from Stella Qiu The markets got a jolt on Friday from what looked likely to be a dull summer day, when U.S. President Donald Trump took to the TV to inject fresh drama into his simmering trade wars and disrupted Wall Street's recent upward drift to record highs. Trump said tariff letters to Canada and Europe would go out "today or tomorrow" and floated the idea that the blanket tariff rates on other countries that do not get a letter could be set at 15% or 20%, a step up from the current 10% baseline rate. Soon afterwards he posted the letter to Canada on social media, specifying that a 35% tariff rate would be imposed on all Canadian goods from August 1. Market nerves were soothed a bit, however, when an administration official clarified that an exclusion was expected for goods covered by the United States-Mexico-Canada Agreement. Wall Street futures skidded 0.8% and EUROSTOXX 50 futures dropped 0.7% before regaining some composure. They were last down about 0.3%. Currency markets also convulsed but, once the dust settled, the dollar was up about 0.3% on the loonie and the euro had slipped 0.2%. The yen, for its part, has been steadily weakening as the prospects dim for a U.S.-Japan trade deal. The dollar was up 0.6% on Friday at 147.12 yen and is headed for a weekly gain of 1.7%, the biggest this year. On the crosses, the yen is down for a seventh straight week on the euro and hit a five-month low on the Australian dollar. With Trump now saying the EU will get a letter, too, investors suspect trade talks between the two are not going very well. EU officials had been saying they were aiming for a deal before August 1. The economic data calendars in Europe and the U.S. are relatively light on Friday, leaving investors to gear up for second-quarter U.S. corporate earnings next week to gauge the impact of Trump's tariffs. In an ominous sign of what may be to come, Uniqlo owner Fast Retailing warned that tariffs will have a significant impact on its U.S. operation later this year, and plans to raise prices to soften the blow. Its shares tumbled almost 7% in Tokyo. Key developments that could influence markets on Friday: -- UK May monthly GDP -- Canadian jobs numbers for June -- Eurozone final CPI for June -- Possible Trump letter on tariffs to the EU (By Stella Qiu; Editing by Edmund Klamann)
Free Malaysia Today
25-06-2025
- Business
- Free Malaysia Today
Trump touts ‘forever' ceasefire, oil slides
European stock markets have been bracing for a strong rebound, with EUROSTOXX 50 futures up 1.2%. (EPA Images pic) LONDON : US President Donald Trump surprised markets by announcing late yesterday that Israel and Iran had agreed to a complete ceasefire, potentially ending a 12-day conflict. In his own words, the ceasefire would last 'forever'. Investors are surely hoping it is real and will hold. It was only days ago that the US launched strikes on Iran that risked drawing it into another costly foreign war. Oil prices duly slumped almost 3% today, on top of an almost 9% tumble overnight as the immediate threat to the vital Strait of Hormuz shipping lane appeared to have lessened. US crude futures are back at US$66.80 per barrel, about the lowest since June 11 before Israel's attacks on Iran began. That is a relief for global inflation, which will make central bank efforts to tame inflation a little easier. However, the situation is still very fluid. Missiles were still being launched from Iran towards Israel. Israeli media said a building had been struck and three people were killed in the missile strike on Beersheba. An Iranian official earlier confirmed that Tehran had agreed to a ceasefire, but the country's foreign minister said there would be no cessation of hostilities unless Israel stopped its attacks. Risk assets rallied nonetheless – S&P 500 futures rose 0.5% and Nasdaq futures were 0.7% higher. European stock markets are bracing for a strong rebound, with EUROSTOXX 50 futures up 1.2%. The MSCI's broadest index of Asia-Pacific shares outside Japan gained 2.1% while Japan's Nikkei rallied 1.1%. South Korean shares hit their highest since September 2021. The beleaguered dollar, which had found some safe-haven bids from the Middle East conflict, was on the back foot again and fell 0.5% to ¥145.45, having come off a six-week top of ¥148 overnight. With the Israel-Iran conflict potentially easing, investor focus shifts to Federal Reserve (Fed) chair Jerome Powell's upcoming appearance before Congress. The Fed has not made a move on interest rates this year due to the inflationary impact of Trump's tariffs. However, some Fed officials are breaking ranks with Powell, whose hawkish view on rates has drawn Trump's ire. Fed's Michelle Bowman said overnight that she was open to cutting rates in July, while governor Christopher Waller said he would also consider a rate cut next month. More Fed officials will be speaking tonight, with New York Fed president John Williams giving keynote remarks in New York and Cleveland Fed president Beth Hammack due to speak on monetary policy in London. In Europe, central bankers are busy too. Bank of England (BoE) governor Andrew Bailey will make public appearances in London and a few European Central Bank officials will be giving speeches. Key developments that could influence markets today: Fed chair Jerome Powell appears before Congress, along with public appearances by other Fed officials including New York Fed president John Williams, Cleveland Fed president Beth Hammack and Boston Fed president Susan Collins. Nato annual summit begins in the Hague. Bank of England governor Andrew Bailey and chief economist Huw Pill appear at a conference on Britain's return to the gold standard in 1925. Germany IFO business survey, US Conference Board consumer confidence and Canadian CPI for May are due.
