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Nikkei Asia
2 days ago
- Business
- Nikkei Asia
Europe, AI drive global stock rally as Trump tariff fears ebb
TOKYO -- Global stocks are approaching all-time highs, fueled by investors encouraged by signs that U.S. President Donald Trump's tariff campaign is hitting its limits. The benchmark MSCI All Countries World Index, using local currencies and excluding dividends, rose to 1,060.787 on Wednesday -- nearly 2% below the record high marked on Feb. 18. The dollar-denominated version of the ACWI hit a record high on Wednesday, aided by the greenback's weakness against a range of other currencies.
Economic Times
29-05-2025
- Business
- Economic Times
US stock futures jump, dollar gains on tariff ruling
US stock futures jumped and the dollar strengthened after President Donald Trump's global tariffs were deemed illegal and blocked by the US trade court. Upbeat earnings from Nvidia Corp. also boosted investor sentiment. ADVERTISEMENT Contracts for the S&P 500 and Nasdaq 100 gained 1.4% and 1.7% respectively. The ruling can now be appealed by the Trump administration in federal court. The yen declined 0.7% and oil jumped. Shares in Nvidia rose over 5% in post-market trading in New York after the company delivered a solid revenue forecast. Equities in Japan and South Korea advanced at the open. Global financial markets were hit by a sweeping selloff after Trump's bid to remake the world trading order proved more aggressive than expected. Trump's tariff blitz, announced April 2, spooked investors who caught on to a 'Sell America' trade as they remain wary on how the levies will impact growth. Trump's pause on the tariffs and negotiations with countries have since helped stabilize the markets, putting the MSCI All Countries World Index within striking distance of a record high. 'More details are needed,' Rodrigo Catril, a strategist at National Australia Bank Ltd. in Sydney said in reference to the ruling. 'Particularly whether there is an injunction or whether this goes to an appeal process and tariffs remain in place for now. The best guess at this stage is that the administration has enough powers to bypass the ruling and implement tariffs on several grounds.'Meanwhile, Nvidia Chief Executive Officer Jensen Huang soothed investor fears about a China slowdown by delivering a solid sales forecast, saying that the AI computing market is still poised for 'exponential growth.' While Nvidia boosted optimism, HP Inc. dropped about 15% in extended trading after the company's profit outlook fell short of estimates and it cut the annual earnings forecast, pointing toward a weaker economy and continuing costs from US tariffs on goods from China. ADVERTISEMENT News reports that the Trump administration is moving to restrict the sale of chip design software to China spurred a plunge in Cadence Design Systems Inc. and Synopsys Inc. Meantime, Tesla Inc. was said to begin its robotaxi service in Austin on June bristled at suggestions that Wall Street believes he's ultimately unwilling to follow through on extreme tariff threats, saying his repeated retreats are instead part of a strategy to exert trade concessions. ADVERTISEMENT 'It's called negotiation,' Trump said on Wednesday, adding that he intentionally would 'set a number at a ridiculous high number' and then 'go down a little bit' as part of talks. (You can now subscribe to our ETMarkets WhatsApp channel)
Yahoo
01-05-2025
- Business
- Yahoo
Why one long-time market strategist thinks the best is over for US stocks
The US stock market has peaked, according to Jefferies' Chris Wood. Tariffs have hurt the US brand and the narrative of American exceptionalism, he said. Investors should be diversifying and buying stocks in Europe, China, and Japan, Wood said. The US stock market's best times are behind it, according to Christopher Wood, global head of equity strategy at Jefferies. The longtime strategist said he believed that the US market had likely already passed its peak, with stocks hitting an all-time high relative to the rest of the world's markets on Christmas Eve of last year, he estimated. That's partly because Trump's tariffs have done permanent damage to America's brand, Wood said, referring to the US's reputation as a safe haven. "I have been stating since the start of the year that my base case, until proven wrong, is that US equities reached an all-time peak of MSCI All Countries World Index on Christmas Eve last year," Wood said, speaking to Bloomberg on Wednesday. That damage is already evident in financial markets. For one, the US Dollar Index, which weights the greenback against a basket of other currencies, has cratered since Trump first unveiled tariffs on April 2, with the index now trading 8% lower year-to-date. This embedded content is not available in your region. Wood wrote in a note to clients last month that the US dollar's dominance in financial markets is the main reason America is "truly exceptional," though its value likely peaked when Trump returned to the White House this year. Second, the US market accounted for around 67% of the world market last year. That's an "extreme" share, even when the US economy is doing well, Wood said. Third, the S&P 500 was trading at an all-time high in terms of price-to-sales among the index's companies, a sign that valuations were stretched. And finally, talk of American exceptionalism — the idea that the US will continue to outperform international markets — also picked up in the fourth quarter of last year. That was another signal that equities were nearing a "massive top," Wood said. Stocks have rallied this week, partly out of hope that Trump will announce a massive "U-turn" on his tariffs policy, Wood said. But, even if the president walks back most of his tariffs, the damage from Trump's trade policy is likely permanent, Wood added, noting there was already noting that there was already a "much better catalyst" for traders to buy stocks in other areas of the world. In a note to clients last month, he added that international net investment in the US had plunged in recent years. "The question in the US is, do you avoid this negative catalyst of higher tariffs?" Wood said. "I would be adding to China, Japan, Europe, and India. That's where global investors should be diversifying away from the US," he said. While Wood says he never believed in American exceptionalism in a traditional sense, other commentators on Wall Street have floated concerns that the US exceptionalism trade could be waning among investors as faith in US assets declines. Wild moves in stocks and bonds in recent weeks is a sign that the "sell America" trade may be driving the swings as investors look to park their cash elsewhere. Read the original article on Business Insider Sign in to access your portfolio
Telegraph
10-04-2025
- Business
- Telegraph
This fund is well equipped to ride out Trump's tariff storm
Questor is The Telegraph's stockpicking column, helping you decode the markets and offering insights on where to invest. In times of turmoil, there is a natural tendency to sit on your hands. However, Questor feels that investors looking for a globally diversified trust – with a longstanding underweight exposure to expensive US shares – and offering decent dividends, should have a look at £1.5bn Murray International. Murray International aims to produce an above-average and growing income. The portfolio is built from the bottom up, with a focus on good-quality companies trading on attractive valuations. There is no attempt to manage risk relative to an index benchmark, hence the managers Martin Connaghan and Samantha Fitzpatrick felt comfortable having just a third of the portfolio in North America at the end of February, less than half its weighting in the MSCI All Countries World Index. It is also notable that the trust has no exposure to the Magnificent Seven. The investment approach has been in place for a long time and, therefore, we are able to see how it has performed in different market conditions.
