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Malay Mail
6 days ago
- Business
- Malay Mail
Stocks extend gains on trade deal optimism, eyes now on Brussels
HONG KONG, July 24 — Stock markets extended the week's gains today on optimism other countries will follow up the Japan-US trade deal with agreements of their own, as speculation builds that the EU is on course. Investors have been on a roll in recent weeks on bets that governments will eventually hammer out pacts with Donald Trump ahead of the US president's August 1 deadline. The mood has been upbeat since Japan had reached a deal to lower sweeping tariffs from 25 per cent to 15 per cent, including those on the country's crucial car sector. The breakthrough fanned hopes that others were in the pipeline. There is talk that the European Union is edging towards an agreement. Reports say Brussels could get something similar to Japan, with tariffs cut to 15 per cent from the threatened 30 per cent. The Financial Times said the two would waive tariffs on some products, including aircraft, spirits and medical devices. That came after US Treasury Secretary Scott Bessent said negotiations were making progress, with talks planned later in the day between the bloc's top trade negotiator and his American counterpart. Analysts said a deal with Washington's biggest trading entity would provide a massive boost to equities. However, failure to reach a deal, triggering Trump's 30-per cent levies on August 1, could cause havoc on markets, analysts warned. France has been loudest in insisting Brussels must show it is willing to deploy its trade weapon, known as the anti-coercion instrument — allowing officials to take measures such as import and export restrictions on goods and services. Neil Wilson at Saxo Markets warned that would end up 'effectively killing trade between the two... the nuclear option is on the table it seems, but for the moment expectation seems to be veering towards a deal'. After another record day for the S&P 500 and Nasdaq on Wall Street, Asia picked up the baton and ran. Tokyo piled on more than 1 per cent, having jumped more than 3 per cent yesterday on the trade deal, while Hong Kong continued its standout year with another advance. Shanghai, Seoul, Singapore, Wellington, Taipei and Jakarta also rose, with London, Paris and Frankfurt also on the front foot. There were some losses in Sydney, Mumbai and Bangkok. Traders are also keeping an eye on developments in Tokyo after Japanese Prime Minister Shigeru Ishiba denied discussing his resignation with party elders yesterday, as speculation about his future intensified following a weekend election debacle. Despite the saga, the yen extended its gains, briefly hitting 145.86 per dollar as the trade deal allows investors to turn their attention to the Bank of Japan's policy meeting next week hoping for guidance on its next interest rate hike. The unit had been sitting around 147.90 before the deal. Bank officials have held off rocking the boat on the issue amid tariff uncertainty, but observers say the agreement can allow them to reconsider lifting in October. — AFP
Yahoo
6 days ago
- Business
- Yahoo
U.S. makes shocking move to counter China's de-dollarization push
U.S. makes shocking move to counter China's de-dollarization push originally appeared on TheStreet. President Donald Trump makes no secret of the fact that the U.S. is engaged in a geopolitical competition with China. While the U.S. is still the largest economy in the world, it is closely followed by the Asian superpower. When Trump initiated the global tariff war in April, it was clear the main target was China. However, the previous Joe Biden administration also engaged in a trade war with the country. Among the many concerns of the Trump administration is China's aggressive attempts to de-dollarize global trade in emerging markets where it holds is most manifest in China's Belt and Road Initiative (BRI) — also referred to as the New Silk Road — the ambitious infrastructure development project that aims to connect the country to the rest of the world. The Asian giant is increasingly encouraging trade settlements in digital renminbi or e-RMB, its central bank digital currency (CBDC). In fact, USD payments have declined from around 80% in 2010 to 40% in 2024, and RMB payments have risen from negligible in 2010 to around 55% in 2024, the Financial Times reported in August 2024 as it cited the State Administration of Foreign Exchange. To dethrone the U.S. dollar's dominance in global trade settlements, China is relying on RMB-based payments and bypassing USD-based SWIFT payment networks. Trump's 'genius' to challenge China's de-dollarization strategy On July 18, Trump signed the GENIUS Act into law to regulate stablecoins pegged to the USD. A stablecoin is a type of cryptocurrency that attempts to stabilize its value, unlike traditionally volatile cryptocurrencies such as Bitcoin, by being pegged to a traditional currency like the USD or a commodity like gold. The GENIUS Act only concerns itself with stablecoins pegged 1:1 to the USD. The Trump administration is aggressively promoting a digital assets economy, and stablecoins are a dominant stablecoins could also be a possible "counter-balance" to de-dollarization trends in emerging markets, as per a recent stablecoin report by the on-chain data analytics platform Messari. David Krause, Emeritus Professor, Finance Department, Marquette University, recently wrote in a paper that Messari cited: "The Trump administration's promotion of dollar-backed stablecoins represents a strategic effort to reinforce the dollar's global role amid increasing discussions on dedollarization." Trillions of dollars anticipated As per DeFiLlama, the total stablecoin market cap is $263 billion at the time of writing. Tether's USDT and Circle's (NYSE: CRCL) USDC account for more than 86% of the market share. Other coins like Trump-backed USD1, Ripple's RLUSD, and PayPal's PYUSD are also making inroads in the already growing market. Ripple CEO Brad Garlinghouse recently said many people think the stablecoin market will reach $1 trillion-$2 trillion in "a handful of years." However, it is yet to be seen if it will grow enough to challenge China's attempts to de-dollarize the global economy. U.S. makes shocking move to counter China's de-dollarization push first appeared on TheStreet on Jul 23, 2025 This story was originally reported by TheStreet on Jul 23, 2025, where it first appeared.
Reuters
6 days ago
- Business
- Reuters
Wall St extends gains after report of US-EU nearing trade deal
July 23 (Reuters) - Wall Street's main indexes moved higher on Wednesday after a Financial Times reported that the EU and the United States were closing in on a trade deal, similar to the agreement U.S. President Donald Trump struck with Japan. Wall Street, already on an upward trajectory, spiked after the report said that the U.S. and the EU are nearing a deal to set 15% tariffs on all European imports. Both sides would waive tariffs on some products, including aircraft, spirits and medical devices, the report said. The bullish momentum followed closely on the heels of Trump's trade deal with Japan, which will slash tariffs on Japanese autos to 15% from 27.5%, with duties on other goods also dropping to 15% from 25%. An agreement with the Philippines also followed, which yielded a modest cut in tariff rate. At 12:20 p.m. ET, the S&P 500 (.SPX), opens new tab gained 31.08 points, or 0.49%, to 6,340.70 and the Nasdaq Composite (.IXIC), opens new tab rose 43.28 points, or 0.21%, to 20,935.97. The Dow Jones Industrial Average (.DJI), opens new tab edged higher 417.80 points, or 0.93%, to 44,917.71, within striking distance of its record peak. Wall Street's "fear gauge", the CBOE Volatility Index (.VIX), opens new tab, dipped to its lowest level in over five months. Earlier in the day, the European Commission was preparing to seek approval for 93 billion euros ($109 billion) in counter-tariffs on American goods just in case the talks fell through. "The key thing is the markets have confidence that the White House is going to continue to work through these trade deals," said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report. Investors are now laser-focused on earnings from the "Magnificent Seven" — a group of marquee names that has helped propel U.S. stocks to all-time highs. EV maker Tesla (TSLA.O), opens new tab and Google-parent Alphabet (GOOGL.O), opens new tab are set to report after the bell on Wednesday. With AI optimism running high and valuations stretched, expectations for these tech giants are sky-high, leaving little margin for disappointment. Shares of Tesla were largely steady, while Alphabet moved 0.9% lower. GE Vernova's (GEV.N), opens new tab shares climbed 14.1% to an all-time high, as the power equipment maker raised its current-year revenue and free cash flow forecasts after beating Wall Street estimates for second-quarter profit. The stock, which has gained about 91% so far this year, boosted the S&P's industrials index (.SPLRCI), opens new tab for the day, up 1.6%. Medical equipment maker Thermo Fisher (TMO.N), opens new tab surged 11.8% after beating Wall Street's estimates for second-quarter profit and revenue. Of the 117 companies in the S&P 500 that have reported earnings to date, 84.6% have reported above analysts' expectations, as per data compiled by LSEG I/B/E/S. On the downside, Texas Instruments (TXN.O), opens new tab tumbled 12.1% after its quarterly profit forecast failed to impress investors, pointing to weaker-than-expected demand for its analog chips from some customers and underscored tariff-related uncertainty. The earnings also weighed on its peer analog chipmakers, with NXP Semiconductors (NXPI.O), opens new tab, Analog Devices (ADI.O), opens new tab and ON Semiconductor (ON.O), opens new tab falling between 2.7% and 6.7%. In economic data, U.S. existing home sales fell more than expected in June. Focus now shifts to Thursday's weekly jobless claims numbers and S&P Global's flash PMI data to gauge economic health in the wake of tariff uncertainties. Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week. Odds for a September reduction stand at about 58%, according to the CME FedWatch tool. Advancing issues outnumbered decliners by a 1.97-to-1 ratio on the NYSE and by a 1.91-to-1 ratio on the Nasdaq. The S&P 500 posted 43 new 52-week highs and two new lows, while the Nasdaq Composite recorded 80 new highs and 16 new lows.
Yahoo
6 days ago
- Business
- Yahoo
US and EU close in on 15% tariff deal, FT reports
(Reuters) -The EU and United States are closing in on a trade deal that would impose 15% tariffs on European imports, similar to the agreement U.S. President Donald Trump struck with Japan this week, the Financial Times reported on Wednesday. Both the EU and US would waive tariffs on some products, including aircraft, spirits and medical devices, the report said, citing people familiar with the matter. The bloc will continue to prepare a possible 93 billion euro ($109 billion) package of retaliatory tariffs, set at up to 30 per cent, in case they cannot agree a deal by August 1, the report added. The White House and a spokesperson for the European Union did not immediately respond to a Reuters request for comment. Reuters could not immediately verify the FT report. The Commission earlier said on Wednesday its primary focus was to achieve a negotiated outcome with the United States to avert 30% U.S. tariffs that Trump has said he will impose on the 27-nation bloc on August 1. In 2024, the U.S. imported more than $55 billion of vehicles and automotive parts from Japan. From the EU, the equivalent figure was 47.3 billion euros ($55.45 billion), with far fewer U.S. models sold into the EU or Japanese market. Sign in to access your portfolio
Reuters
6 days ago
- Business
- Reuters
US and EU close in on 15% tariff deal, FT reports
July 23 (Reuters) - The EU and United States are closing in on a trade deal that would impose 15% tariffs on European imports, similar to the agreement U.S. President Donald Trump struck with Japan this week, the Financial Times reported on Wednesday. Both the EU and US would waive tariffs on some products, including aircraft, spirits and medical devices, the report said, citing people familiar with the matter. The bloc will continue to prepare a possible 93 billion euro ($109 billion) package of retaliatory tariffs, set at up to 30 per cent, in case they cannot agree a deal by August 1, the report added. The White House and a spokesperson for the European Union did not immediately respond to a Reuters request for comment. Reuters could not immediately verify the FT report. The Commission earlier said on Wednesday its primary focus was to achieve a negotiated outcome with the United States to avert 30% U.S. tariffs that Trump has said he will impose on the 27-nation bloc on August 1. In 2024, the U.S. imported more than $55 billion of vehicles and automotive parts from Japan. From the EU, the equivalent figure was 47.3 billion euros ($55.45 billion), with far fewer U.S. models sold into the EU or Japanese market.
