Latest news with #FTSE 100
The Guardian
2 days ago
- Business
- The Guardian
Global stock markets jump after trade deal limits US tariffs on EU to 15%
Update: Date: 2025-07-28T07:08:12.000Z Title: Global stock markets rise after trade deal averts spiralling EU-US tariffs Content: Good morning, and welcome to our live coverage of business, economics and financial markets. Global stock markets have rallied after the US and EU agreed a trade deal, removing a major source of uncertainty for companies around the world even as it promised a permanent cost to trans-Atlantic goods trade. European stock markets surged on the opening bell on Monday, a day after US President Donald Trump and European Commission President Ursula von der Leyen, shook hands on a deal in Turnberry, Scotland, on Sunday. Germany's Dax rose 0.8% in early trading, France's Cac 40 gained 1%, while Spain's Ibex gained 0.8%. The FTSE 100 in London gained 0.5%. Asian stock markets also mostly rallied. Australia's ASX200 rose by 0.4%, Hong Kong's Hang Seng rose 0.4%, Korea's Kospi index gained 0.6%, while Shanghai's CSI300 gained 0.1%. However, Japan's Nikkei 225 fell by 1% amid doubts over the details of its own trade deal with the US. The US-EU deal will put a 15% US tariff on most imports from the EU, including cars and computer chips. Steel and aluminium still face 50% tariffs – but only above certain quotas. There are zero tariffs on aerospace parts, some chemicals and raw materials. The EU will also agree to buy $750bn in US energy, and more military equipment – both of which fit with moves since Russia's invasion of Ukraine in 2022. There is good news and bad news in the deal, said Holger Schmieding, chief economist at Berenberg, an investment bank: The crippling uncertainty seems to be largely over. The trade deal which the US and the EU struck in Scotland on Sunday with a 15% tariff on most US goods imports from the EU is bearable for the EU, much more so than the 30% tariff would have been which US president Donald Trump had threatened before. However, the outcome remains much worse than the situation before Trump started his new round of trade wars early this year. The extra US tariffs will hurt both the US and the EU. […] The trade tensions with the US will subtract a cumulative 0.3 percentage points from European and 0.5 percentage points from German growth in 2025 and 2026 taken together. The deal is asymmetric. The US gets away with a substantial increase in its tariffs on imports from the EU and has secured further EU concessions to boot. 11am BST: UK Confederation of British Industry distributive trades (retail) survey (July; previous: -46%; consensus: -26%) 12:30pm BST: Donald Trump press conference in Scotland
Yahoo
6 days ago
- Automotive
- Yahoo
Markets rally after Trump announces tariff deal with Japan
Financial markets around the world have rallied after Donald Trump announced a trade deal with Japan and speculation that a similar deal would soon be reached with the European Union. . Share prices rose sharply in Tokyo, where the Nikkei index of leading Japanese companies increased by 3.5%. European markets followed, with the FTSE 100 gaining 0.4% to close at a fresh record high of 9,061. US markets posted further gains after opening in New York, with the Dow Jones rising by almost 1% and the S&P 500 by 0.5%. They were boosted by reports that the EU and US were closing in on a deal similar to the one the US struck with Japan, a 15% tariff on European imports. The EU is weighing €100bn (£87bn, $118bn) worth of tariffs on US imports if Trump does not agree a trade deal by the end of next week. Shares in Japanese carmakers rallied sharply. Shares in Toyota, the world's biggest carmaker, surged by more than 14% and there were gains for Honda, Mazda and Subaru. London-based companies with the highest exposures to US tariffs – including GSK, AstraZeneca and Diageo – were among the biggest risers on the FTSE 100. Interactive Russ Mould, investment director at the stockbroker AJ Bell, said: 'News of a trade agreement between the US and Japan is fostering optimism among investors that further deals might be reached before punishing tariffs come into force.' Under the deal announced by the US president late on Tuesday, Japanese imports to the US will incur a 15% tariff, compared with the 25% level Trump had threatened to impose from 1 August. The levy, paid by US importers, remains above the 10% 'baseline' global tariff that had been imposed by Washington while the two countries negotiated. The Japanese car industry, which accounts for 8% of jobs in the country, had been reeling from the threat of a 25% tariff on shipments to the US market. Vehicles and automotive parts account for more than a quarter of all Japanese exports to the US. Trump claimed that the deal would open the Japanese market to US products including cars, trucks, rice and certain agricultural products, many of which had proved to be a sticking point in negotiations. The deal with Japan followed an agreement with the UK in May, as the first major country to reach a deal with the White House, which included limiting an increase in US tariffs on most British goods to 10%. Financial markets were thrown into a tailspin on 2 April by Trump's 'liberation day' tariff announcement, when he unveiled blanket levies of 10% and higher individual rates of up to 50% on dozens of markets, including those of economic allies and rivals alike. Trump paused the higher tariff rates for 90 days to allow for negotiations with trading partners after a dramatic sell-off in the US bond market. The markets staged a recovery, as investors bet that Washington would ultimately back down from the toughest measures. Interactive Investors latched on the president's reluctance to see through extreme threats by betting that 'Trump always chickens out', or Taco for short, in a Wall Street maxim influencing trading decisions. Economists said the deal with Japan, which is the world's fourth-largest economy and is the US's fourth-largest import market, could be a prelude to further progress in negotiations with other big trading partners, including the EU. Shares in EU carmakers rallied on Wednesday, with Volkswagen up by more than 5% as traders bet the US-Japan deal could be a blueprint for an agreement between Washington and Brussels. Trump has set a deadline of 1 August for reaching a deal with the EU and other trading partners. Washington struck a deal with the Philippines on Tuesday, while the US Treasury secretary, Scott Bessent, has said talks would resume with China next week, ahead of the 12 August deadline Trump has set for a tariff agreement with the world's second-largest economy. However, investors warned that the tariff rates on US imports were higher under the deals than they were before Trump entered the White House, increasing inflationary pressures for American households and rattling global supply chains. 'Why are the markets jubilant this morning? Because even a higher tariff is preferable to continued uncertainty,' said George Lagarias, chief economist at the financial services company Forvis Mazars. 'But this is hardly a catalyst for long-term optimism. If the deal with Japan is the standard by which the negotiation with the EU will go, then investors and businesses should begin to price in a deterioration of the macroeconomic backdrop.' The Japanese prime minister, Shigeru Ishiba, said the deal was 'precisely the result of my consistent advocacy and strong lobbying of the US since I proposed 'investment over tariffs' to President Trump at our White House summit in February'. Ishiba denied reports that he planned to announce his resignation after his coalition lost its upper house majority this week. 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
6 days ago
- Business
- Yahoo
Japanese equities rally on ‘massive' U.S. trade deal, with markets buoyed by hopes of more 11th hour announcements
President Trump has announced a major trade deal with Japan, calling it the 'largest in history' and boosting global markets, with Japan reportedly committing $550 billion in U.S. investment and agreeing to lower reciprocal tariffs. While the agreement eased fears of a broader trade escalation ahead of the Aug. 1 tariff deadline, analysts caution that uncertainty remains high, with steep tariffs still looming for key trading partners such as Brazil and the EU. President Trump has confirmed the U.S. has agreed to a trade deal with Japan, describing it as the 'largest in history' and sending markets flying. With the Oval Office confirming the deal last night, Tokyo's Nikkei 225 was up 3.5% in trading today with the Japanese yen holding steady at 0.0068 JPY to the U.S. dollar. In Europe, London's FTSE 100 was up 0.6% this morning with Germany's DAX up near 0.9%. Touting the agreement as a 'great deal for everybody' the president took to Truth Social, his social media site, to share some of the early details: 'Japan will invest … $550 billion into the United States, which will receive 90% of the profits.' He added: 'Perhaps most importantly, Japan will open their country to trade including cars and trucks, rice and certain other agricultural products, and other things.' Moreover, Japanese exports to the U.S. will face tariffs of 15%—well below the 24% Trump first threatened on 'Liberation Day.' 'This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the country of Japan,' Trump added. The news that the White House is still signing deals with key trading partners with a little over a week until the Aug. 1—the date outlined in the president's so-called 'letter tariffs' sent earlier this month—has boosted confidence that more deals could still come ahead of the deadline, wrote Deutsche Bank's Jim Reid this morning. That being said, Reid cautioned that markets may not get their reprieve in a timely manner. In the note seen by Fortune, he added: 'Collectively, this more positive trade news has really helped to ease investor fears that tariffs are about to snap back higher on August 1. But of course, the threat of much higher tariffs still remains for several large economies, including the 30% on the EU, 35% on Canada and 50% on Brazil. And there's also the pledge of higher sectoral tariffs, including 50% on copper, so this is far from the end just yet, and those tariffs would each have a significant impact if they did come in. 'We also know from experience that we might not know the outcome until hours before the deadline, which happened in early February where the 25% tariffs on Canada and Mexico were postponed for 30-days on the day before they were due to be implemented.' Indeed, UBS's global wealth management CIO, Mark Haefele, wrote in a note this morning: 'The U.S.'s deal with Japan is better than market expectations, as the lower tariffs on autos could translate into a 0.4pp improvement in Japan's real GDP growth this year and again in 2026. The deal reduces risks to Japan's economic growth, in our view, and removes downside risks for the Japanese currency.' However, the bigger picture is continued uncertainty, he added: 'We expect market volatility to pick up in the lead-up to the 1 August tariff deadline, with threats to Federal Reserve independence and geopolitical uncertainty lingering in the background.' Are markets pricing in August 1? The general take on Wall Street at present is that Trump won't push ahead with his threats come the end of the month. Goldman Sachs's Jan Hatzius, for example, wrote in a note this week 'we don't expect the 'letter tariffs' scheduled for August 1 to take effect' while Deutsche Bank added 'it's clear that markets aren't pricing in the proposed August 1 rates.' But this reliance on the TACO (Trump Always Chickens Out) trade may prove fatal, the likes of JPMorgan's Jamie Dimon have cautioned. Indeed, analysts from Deutsche Bank have warned it's precisely because of this confidence from the markets that President Trump may push ahead with his plan—believing that the economy may be stable enough to take the change. This story was originally featured on
Yahoo
15-07-2025
- Business
- Yahoo
FTSE 100 touches above 9,000 for the first time
Britain's blue chip share index surpassed the 9,000 level for the first time on Tuesday as European markets edged higher on hopes of a trade deal between the US and European Union. The FTSE 100 Index briefly rose above the record high, hitting 9,016.98 at one stage in morning trading on Tuesday, having recorded a fresh closing high on Monday just shy of the milestone. The top tier later eased back to stand 3.34 points lower at 8994.72 by mid-morning. Markets across Europe lifted tentatively with the Dax in Germany and France's Cac 40 up 0.3% and 0.2% respectively. Investors were optimistic that a deal can still be reached between the US and EU, despite the latest tariff threats from US President Donald Trump. Mr Trump said on Saturday that major trading partners Mexico and the EU would face a 30% tariff starting next month, piling on the pressure for deals to be struck. Some stocks were struggling on the FTSE despite the record being reached, with Barratt Redrow plunging to the bottom of the top tier, shedding 7% after a disappointing update, which also dragged rival housebuilders Persimmon and Berkeley Group lower. Victoria Scholar, head of investment at Interactive Investor, said a speech by Chancellor Rachel Reeves later will also be in sharp focus. She said: 'UK Chancellor Rachel Reeves prepares to deliver her closely watched Mansion House speech tonight when she is anticipated to outline a series of financial reforms including measures to improve mortgage access.'
The Independent
15-07-2025
- Business
- The Independent
FTSE 100 touches above 9,000 for the first time
Britain's blue chip share index surpassed the 9,000 level for the first time on Tuesday as European markets edged higher on hopes of a trade deal between the US and European Union. The FTSE 100 Index briefly rose above the record high, hitting 9,016.98 at one stage in morning trading on Tuesday, having recorded a fresh closing high on Monday just shy of the milestone. The top tier later eased back to stand 3.34 points lower at 8994.72 by mid-morning. Markets across Europe lifted tentatively with the Dax in Germany and France's Cac 40 up 0.3% and 0.2% respectively. Investors were optimistic that a deal can still be reached between the US and EU, despite the latest tariff threats from US President Donald Trump. Mr Trump said on Saturday that major trading partners Mexico and the EU would face a 30% tariff starting next month, piling on the pressure for deals to be struck. Some stocks were struggling on the FTSE despite the record being reached, with Barratt Redrow plunging to the bottom of the top tier, shedding 7% after a disappointing update, which also dragged rival housebuilders Persimmon and Berkeley Group lower. Victoria Scholar, head of investment at Interactive Investor, said a speech by Chancellor Rachel Reeves later will also be in sharp focus. She said: 'UK Chancellor Rachel Reeves prepares to deliver her closely watched Mansion House speech tonight when she is anticipated to outline a series of financial reforms including measures to improve mortgage access.'
