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Yahoo
an hour ago
- Business
- Yahoo
US dollar declines as traders assess tariff outlook
By Kevin Buckland TOKYO (Reuters) -The U.S. dollar edged lower on Monday, giving back some of its gains from last week, as markets weighed the outlook for President Donald Trump's tariff policy and its potential to constrict growth and unleash inflation. The greenback starts the week on the back foot after Trump said late on Friday that he plans to double duties on imported steel and aluminum to 50% from Wednesday. The U.S. currency has been whipsawed for weeks by Trump's on-again-off-again trade war, falling when a flare up in tensions stokes worries of a potential U.S. recession. The dollar witnessed weekly tumbles of 3% against major peers in the days after the April 2 "Liberation Day" tariffs and 1.9% two weeks ago, when Trump threatened 50% levies on Europe. Last week, the greenback got a bit of respite, rising 0.3% after talks with the European Union got back on track and a U.S. trade court blocked the bulk of Trump's tariffs on the grounds that he overstepped his authority. Although an appeals court reinstated the duties a day later as it considers the case, and Trump's administration said it had other avenues to implement the levies if it loses in court, many analysts said it shows there are still checks in place on the President's power. The dollar dropped 0.3% to 143.57 yen as of 0023 GMT, giving back some of its more than 1% rally from last week. The euro gained 0.2% to $1.1372, and sterling advanced 0.3% to $1.3489. The Australian dollar added 0.3% to $0.6454. The U.S. dollar index, which measures the currency against six major peers, eased 0.2% to 99.214. The dollar has also been weighed down by fiscal worries in recent weeks, amid a broad "Sell America" theme that has seen dollar assets from stocks to Treasury bonds dropping. Those concerns come into particular focus this week as the Senate starts considering Trump's sweeping tax cut and spending bill, which will add an estimated $3.8 trillion to the federal government's $36.2 trillion in debt over the next decade. Many senators have already said the bill will need major revisions, and Trump said he welcomes changes. The fate of section 899 of the bill could be crucial, according to Barclays analysts. "S899 would give the U.S. free rein to tax companies and investors from countries deemed to have 'unfair foreign taxes' (and) could be seen as a tax on the U.S. capital account at a time when investor nervousness towards U.S. assets has grown," they said in a research report. "Actively reducing foreigners' total return on their U.S. investments would dent inflows and weigh on the dollar, all else equal," they added. "While dollar sentiment/positioning remains close to extreme negativity, the path ahead is by no means clear cut." 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
3 days ago
- Business
- Yahoo
Morning bid: Courtroom twists add to tariff risks
A look at the day ahead in European and global markets from Kevin Buckland President Donald Trump's tariffs are more on-again than off-again as we head into the end of a dramatic week of courtroom surprises, which initially had investors cheering but then left them with little more than an additional source of uncertainty. Looking around Asia in early trading, losses to Japan's Nikkei stand out. Stocks in Tokyo were hit by an additional whammy from renewed demand for the safe-haven yen, which undercuts the value of overseas revenues for the index's heavyweight exporters. The drop in Hong Kong's Hang Seng was also eye-catching, with both benchmarks essentially giving up all of the sizeable gains of the day before. When the little-known United States Court of International Trade on Wednesday unexpectedly blocked the bulk of Trump's aggressive levies, on the grounds that he had overstepped his authority, there was some inkling that the judiciary could provide a check on his often erratic policymaking. But a day later those tariffs were back, reinstated by an appeals court while it considers the case. That is by no means a foreshadowing of its eventual ruling, but Trump's team is already saying it has other avenues to keep the tariffs in effect. For businesses, consumers and central banks, it's just one more reason to sit on their hands, pushing out already delayed decisions on hiring, spending or cutting rates. For U.S. trade partners, though, the Trump administration assures us that good-faith negotiations continue undeterred. Treasury Secretary Scott Bessent pointed specifically to high-level talks he will have with a Japanese delegation in Washington later today. Despite Trump's optimism, deals have been hard to come by - a broad agreement with Britain is the only one so far. And Bessent acknowledged talks with China are "a bit stalled", adding they may require the direct involvement of Trump and Chinese President Xi Jinping. The courtroom drama around tariffs came just as tariff revenues were starting to pick up. Donald Schneider at Piper Sandler on social media platform X this week estimated them at an annualised pace of $255 billion, up from a norm of about $85 billion. That would be welcome news as the sweeping tax cuts and spending measures in Trump's "big, beautiful bill", which is about to go to the Senate, have been fanning worries about U.S. fiscal sustainability. One critic of the bill has been Elon Musk, and there were signs that what looked to be a quiet exit from his work at DOGE might carry some bad blood. But Trump has since announced a big sending off with a joint press conference at the Oval Office for later today, adding that although it'll be the Tesla and SpaceX CEO's last day on the government payroll, "he will always be with us". The air also seems less heavy between Trump and Fed Chair Jay Powell following a private meeting in the Oval Office on Thursday. While the president reiterated his feeling that the central bank is making a mistake by not lowering rates, the lack of any name-calling in social media posts afterwards may have come as a relief to markets that were roiled last month by Trump's public threats to fire the Fed chief. Key developments that could influence markets on Friday: -Germany consumer inflation data (May) -Bank of Italy Governor Panetta speaks in Rome -Fed speakers include San Francisco Fed President Daly, Dallas Fed President Logan, Atlanta Fed President Bostic and Chicago Fed President Goolsbee 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 Kevin Buckland; Editing by Edmund Klamann) 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
Hindustan Times
3 days ago
- Business
- Hindustan Times
MORNING BID EUROPE-Courtroom twists add to tariff risks
A look at the day ahead in European and global markets from Kevin Buckland President Donald Trump's tariffs are more on-again than off-again as we head into the end of a dramatic week of courtroom surprises, which initially had investors cheering but then left them with little more than an additional source of uncertainty. Looking around Asia in early trading, losses to Japan's Nikkei stand out. Stocks in Tokyo were hit by an additional whammy from renewed demand for the safe-haven yen, which undercuts the value of overseas revenues for the index's heavyweight exporters. The drop in Hong Kong's Hang Seng was also eye-catching, with both benchmarks essentially giving up all of the sizeable gains of the day before. When the little-known United States Court of International Trade on Wednesday unexpectedly blocked the bulk of Trump's aggressive levies, on the grounds that he had overstepped his authority, there was some inkling that the judiciary could provide a check on his often erratic policymaking. But a day later those tariffs were back, reinstated by an appeals court while it considers the case. That is by no means a foreshadowing of its eventual ruling, but Trump's team is already saying it has other avenues to keep the tariffs in effect. For businesses, consumers and central banks, it's just one more reason to sit on their hands, pushing out already delayed decisions on hiring, spending or cutting rates. For U.S. trade partners, though, the Trump administration assures us that good-faith negotiations continue undeterred. Treasury Secretary Scott Bessent pointed specifically to high-level talks he will have with a Japanese delegation in Washington later today. Despite Trump's optimism, deals have been hard to come by - a broad agreement with Britain is the only one so far. And Bessent acknowledged talks with China are "a bit stalled", adding they may require the direct involvement of Trump and Chinese President Xi Jinping. The courtroom drama around tariffs came just as tariff revenues were starting to pick up. Donald Schneider at Piper Sandler on social media platform X this week estimated them at an annualised pace of $255 billion, up from a norm of about $85 billion. That would be welcome news as the sweeping tax cuts and spending measures in Trump's "big, beautiful bill", which is about to go to the Senate, have been fanning worries about U.S. fiscal sustainability. One critic of the bill has been Elon Musk, and there were signs that what looked to be a quiet exit from his work at DOGE might carry some bad blood. But Trump has since announced a big sending off with a joint press conference at the Oval Office for later today, adding that although it'll be the Tesla and SpaceX CEO's last day on the government payroll, "he will always be with us". The air also seems less heavy between Trump and Fed Chair Jay Powell following a private meeting in the Oval Office on Thursday. While the president reiterated his feeling that the central bank is making a mistake by not lowering rates, the lack of any name-calling in social media posts afterwards may have come as a relief to markets that were roiled last month by Trump's public threats to fire the Fed chief. Key developments that could influence markets on Friday: -Germany consumer inflation data -Bank of Italy Governor Panetta speaks in Rome -Fed speakers include San Francisco Fed President Daly, Dallas Fed President Logan, Atlanta Fed President Bostic and Chicago Fed President Goolsbee 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.
Yahoo
3 days ago
- Business
- Yahoo
Stocks slip, dollar sags as Trump tariffs remain after latest courtroom twist
By Kevin Buckland TOKYO (Reuters) - Stocks slipped in Asia on Friday and the U.S. dollar drooped with Treasury yields as investors digested an appeals court kept President Donald Trump's tariffs in effect, a day after markets rallied on a separate ruling blocking most of them. Japan's Nikkei saw the most pronounced selling, after experiencing the most pronounced buying on Thursday, with moves in the exporter-heavy index exacerbated by the ebb and flow in demand for the safe-haven yen. The United States Court of Appeals for the Federal Circuit in Washington temporarily reinstated Trump's duties on Thursday while it considers the government's appeal. On Wednesday, a little-known trade court had unanimously ruled Trump overstepped his authority, and tariffs were the jurisdiction of Congress not the president. Either way, senior Trump administration officials said they were undeterred and expected either to prevail on appeal or to employ other powers to ensure the tariffs remain. The Nikkei dropped 1.7% in the Asian morning, putting it basically back at Wednesday's closing level. The yen strengthened about 2% from its low on Thursday to last change hands at around 143.48 per dollar. A stronger yen reduces the value of overseas revenues. Hong Kong's Hang Seng sank 1.4% and mainland China's blue chip index eased 0.3% in early trading. South Korea's KOSPI fell 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.4%. "Trump's trade agenda remains alive and kicking, with the legal battle adding yet another layer of uncertainty," said Rodrigo Catril, senior FX strategist at National Australia Bank. "The only thing that looks more certain is more uncertainty," which will lead to additional delays in investment decisions and hiring, he said. U.S. S&P 500 futures retreated 0.2%. The cash index rose 0.4% overnight, but that was largely the effect of resilient Nvidia financial results from after the market close on Wednesday, to which Asian shares already had a chance to react. Pan-European STOXX 50 futures edged 0.1% lower. The 10-year U.S. Treasury yield was steady at 4.42% on Friday, following a 5.5 basis point slide on Thursday. Safe-haven gold was little changed at $3,311 per ounce, following a 0.8% advance in the previous session. Risk-sensitive bitcoin slipped to a 10-day low of $104,714.35. Both Brent and U.S. West Texas Intermediate crude eased 0.3% early on Friday, to $63.97 and $60.75 per barrel, respectively. Despite the uncertainty injected by the courtroom drama, the Trump administration said negotiations with top trading partners continue unabated. Treasury Secretary Scott Bessent noted during an interview with Fox News that he is scheduled to have talks with a high-level Japanese delegation later on Friday in Washington. Trump had already paused his "Liberation Day" tariff rates on most trade partners for 90 days to July 9 and set a baseline rate of 10% in the meantime in order to give time for some of them to hammer out deals. So far though, apart from a broad agreement with Britain, deals remain elusive. Bessent said in the interview with Fox News that talks with China are "a bit stalled," and may need the direct involvement of Trump and Chinese President Xi Jinping to get across the finish line.
Yahoo
3 days ago
- Business
- Yahoo
Stocks slip, dollar sags as Trump tariffs remain after latest courtroom twist
By Kevin Buckland TOKYO (Reuters) - Stocks slipped in Asia on Friday and the U.S. dollar drooped with Treasury yields as investors digested an appeals court kept President Donald Trump's tariffs in effect, a day after markets rallied on a separate ruling blocking most of them. Japan's Nikkei saw the most pronounced selling, after experiencing the most pronounced buying on Thursday, with moves in the exporter-heavy index exacerbated by the ebb and flow in demand for the safe-haven yen. The United States Court of Appeals for the Federal Circuit in Washington temporarily reinstated Trump's duties on Thursday while it considers the government's appeal. On Wednesday, a little-known trade court had unanimously ruled Trump overstepped his authority, and tariffs were the jurisdiction of Congress not the president. Either way, senior Trump administration officials said they were undeterred and expected either to prevail on appeal or to employ other powers to ensure the tariffs remain. The Nikkei dropped 1.7% in the Asian morning, putting it basically back at Wednesday's closing level. The yen strengthened about 2% from its low on Thursday to last change hands at around 143.48 per dollar. A stronger yen reduces the value of overseas revenues. Hong Kong's Hang Seng sank 1.4% and mainland China's blue chip index eased 0.3% in early trading. South Korea's KOSPI fell 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.4%. "Trump's trade agenda remains alive and kicking, with the legal battle adding yet another layer of uncertainty," said Rodrigo Catril, senior FX strategist at National Australia Bank. "The only thing that looks more certain is more uncertainty," which will lead to additional delays in investment decisions and hiring, he said. U.S. S&P 500 futures retreated 0.2%. The cash index rose 0.4% overnight, but that was largely the effect of resilient Nvidia financial results from after the market close on Wednesday, to which Asian shares already had a chance to react. Pan-European STOXX 50 futures edged 0.1% lower. The 10-year U.S. Treasury yield was steady at 4.42% on Friday, following a 5.5 basis point slide on Thursday. Safe-haven gold was little changed at $3,311 per ounce, following a 0.8% advance in the previous session. Risk-sensitive bitcoin slipped to a 10-day low of $104,714.35. Both Brent and U.S. West Texas Intermediate crude eased 0.3% early on Friday, to $63.97 and $60.75 per barrel, respectively. Despite the uncertainty injected by the courtroom drama, the Trump administration said negotiations with top trading partners continue unabated. Treasury Secretary Scott Bessent noted during an interview with Fox News that he is scheduled to have talks with a high-level Japanese delegation later on Friday in Washington. Trump had already paused his "Liberation Day" tariff rates on most trade partners for 90 days to July 9 and set a baseline rate of 10% in the meantime in order to give time for some of them to hammer out deals. So far though, apart from a broad agreement with Britain, deals remain elusive. Bessent said in the interview with Fox News that talks with China are "a bit stalled," and may need the direct involvement of Trump and Chinese President Xi Jinping to get across the finish line. Sign in to access your portfolio
