Latest news with #Pepperstone
Yahoo
2 days ago
- Business
- Yahoo
Trump announces trade deal with EU following months of negotiations
-- The United States and European Union have reached a landmark trade agreement that includes a 15% tariff on EU goods entering the U.S., President Donald Trump announced Sunday while in Scotland. The broad-strokes deal encompasses significant EU purchases of U.S. energy and military gear, along with substantial investments in the American economy. According to Trump, the European Union has committed to purchasing $750 billion worth of energy from the United States. He also stated that the EU has agreed to make $600 billion in investments in the U.S. "They are agreeing to open up their countries to trade at zero tariff," Trump told reporters. He added that the EU would "purchase a vast amount of military equipment" from the U.S. European Commission President Ursula von der Leyen confirmed the agreement would include 15% tariffs across the board, noting that this measure would help "rebalance" trade between the two major trading partners. Of the $3.3 trillion in goods imported by the U.S. last year, more than $600 billion came from the 27-member EU. The pact could help bring some calm to markets, who had been wary that both sides would fail to reach an deal before August 1, when Trump's sweeping "reciprocal" tariffs are due to come into effect. The EU had been facing heightened levies of 30%, and had reportedly been pushing for a zero-for-zero agreement with the White House. In a note, Pepperstone Senior Research Strategists Michael Brown said the agreement "not only removes a key left tail risk that the market had been concerned about, but also yet again reiterates that the direction of travel remains away from punchy rhetoric, and towards trade deals done." Brown added that euro is likely to see "notable upside." European automakers are also seen as a big winner of the deal, Brown argued, pointing out that the 15% tariff applies to car imports into the U.S., which is "a similar carve out to that achieved by Japan" earlier this month. "Other obvious winners include U.S. defense names, given the EU's purchase commitments on that front, as well as U.S. energy stocks," Brown said. Meanwhile, von der Leyen clarified that the 15% tariff will apply to pharmaceuticals, but flagged that more could be coming from the United States on the matter. Trump has been threatening to slap steep duties of as much as 200% on drugs incoming from the EU, presenting heavy and possibly damaging headwinds to the region's key pharmaceutical industry. The deal comes ahead of what analysts at ING have described as a "massive" week for the U.S. economy. Along with a possible flurry of trade deals before August 1, the coming days will see a raft of corporate earnings, including results from mega-cap tech titans like Facebook-owner Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN). A reading of inflation closely monitored by the Federal Reserve is also scheduled to be released, while the Fed itself will unveil its latest interest rate decision on Wednesday. Fed officials are widely anticipated to leave borrowing costs unchanged, even as Trump has placed intensifying pressure on the central bank -- and Chair Jerome Powell in particular -- to quickly lower rates. Policymakers have recently signaled a "wait-and-see" approach to further rate decisions, partly citing uncertainty around the trajectory of Trump's tariffs and their impact on the wider economy. (Scott Kanowsky contributed reporting.) Related articles Trump announces trade deal with EU following months of negotiations Surge of 50% since our AI selection, this chip giant still has great potential If Powell goes, does Fed trust go with him? 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
2 days ago
- Business
- Yahoo
Reaction to US and EU trade deal
TURNBERRY, Scotland (Reuters) -U.S. President Donald Trump on Sunday said the United States and the European Union had reached agreement on a trade deal that includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment. The deal also calls for $600 billion in investments in the U.S. by the European Union, he told reporters. This follows a U.S. deal with Japan on July 23 that cut tariffs on auto imports and other goods in exchange for a $550 billion package of U.S.-bound investment and loans. Major financial markets were still closed. The euro ended last week around three-week highs at $1.1738, while the STOXX 600 <.STOXX > hit its highest since early June last week as optimism built for an EU/U.S. trading deal. Following are comments from business leaders and companies, and market reaction to the announcement. COMMENTS: MICHAEL BROWN, SENIOR RESEARCH STRATEGIST, PEPPERSTONE, LONDON: "The EU is going to be hit with a 15% tariff which is pretty punchy but it's half of the 30% they were threatened with and it's well off the 50% that Trump had been throwing around at the start of the month so that's good news." "This is more a case of the risk of no deal being removed as opposed to whether it's 15%-20%, I'm not entirely sure that matters so much at least not in terms of how markets are going to trade in an hour or so when things get up and running for the week." "The two obvious reactions that you would expect are upside in the euro and upside in equity futures. I don't think equities in particular needed much of an excuse to rally and now they've got one." ERIC WINOGRAD, CHIEF ECONOMIST, ALLIANCEBERNSTEIN, NEW YORK: "This is very similar to the deal we reached with Japan." "We will need to see how long the sides stick to the deal. From a market perspective, it is reassuring in the sense that having a deal is better than not having a deal." RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY: "It's really in line with the Japan deal, and I assume investors will view it positively as they viewed the Japan deal. The reality is there will be higher tariffs, which may lead to more inflation, depending on how much of it is absorbed by the manufacturers and how much of it is passed on to consumers. I think from the administration's point of view, they probably have begun to address the balance of trade issues. The question remains whether using tariffs as a way to address these imbalances is positive for the global economy or just a tax that helps with jobs here in the U.S." 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
2 days ago
- Business
- Yahoo
Reaction to US and EU trade deal
TURNBERRY, Scotland (Reuters) -U.S. President Donald Trump on Sunday said the United States and the European Union had reached agreement on a trade deal that includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment. The deal also calls for $600 billion in investments in the U.S. by the European Union, he told reporters. This follows a U.S. deal with Japan on July 23 that cut tariffs on auto imports and other goods in exchange for a $550 billion package of U.S.-bound investment and loans. Major financial markets were still closed. The euro ended last week around three-week highs at $1.1738, while the STOXX 600 <.STOXX > hit its highest since early June last week as optimism built for an EU/U.S. trading deal. Following are comments from business leaders and companies, and market reaction to the announcement. COMMENTS: MICHAEL BROWN, SENIOR RESEARCH STRATEGIST, PEPPERSTONE, LONDON: "The EU is going to be hit with a 15% tariff which is pretty punchy but it's half of the 30% they were threatened with and it's well off the 50% that Trump had been throwing around at the start of the month so that's good news." "This is more a case of the risk of no deal being removed as opposed to whether it's 15%-20%, I'm not entirely sure that matters so much at least not in terms of how markets are going to trade in an hour or so when things get up and running for the week." "The two obvious reactions that you would expect are upside in the euro and upside in equity futures. I don't think equities in particular needed much of an excuse to rally and now they've got one." ERIC WINOGRAD, CHIEF ECONOMIST, ALLIANCEBERNSTEIN, NEW YORK: "This is very similar to the deal we reached with Japan." "We will need to see how long the sides stick to the deal. From a market perspective, it is reassuring in the sense that having a deal is better than not having a deal." RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY: "It's really in line with the Japan deal, and I assume investors will view it positively as they viewed the Japan deal. The reality is there will be higher tariffs, which may lead to more inflation, depending on how much of it is absorbed by the manufacturers and how much of it is passed on to consumers. I think from the administration's point of view, they probably have begun to address the balance of trade issues. The question remains whether using tariffs as a way to address these imbalances is positive for the global economy or just a tax that helps with jobs here in the U.S." 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
Wall Street Journal
22-07-2025
- Business
- Wall Street Journal
Gold Futures Slip But Keep to One-Month Highs
0751 GMT – Gold futures soften as the U.S. dollar recoups some losses, though they remain at one-month highs. Futures are down 0.3% at $3,398.40 a troy ounce, but are up 1.1% on week after rallying on Monday on a slump in the dollar. Investor volumes in gold have picked up since the start of the week, with the precious metal emphatically breaking out of a tight trading range it has held since early July, Pepperstone's Chris Weston says in a note. For now, gold is taking its cues from the U.S. dollar, Weston says. Any U.S. dollar rallies should remain capped as the Aug. 1 U.S. tariff implementation deadline approaches and given central bank policy uncertainty due to the risk of an early shadow Federal Reserve chair nominee. This should be a boon for gold, Weston writes. ( 2343 GMT — Gold edges lower in early Asian trade on a possible technical correction after gold futures posted their best day in over a month on Monday. However, losses may be limited by lingering geopolitical tensions. Russia recently launched another wave of drone and missile strikes on Ukraine's Kyiv amid stalled cease-fire talks, while reaffirming its hardline conditions despite mounting international pressure, DHF Capital's Bas Kooijman says in an email. Also, tensions remain elevated in the Middle East, underpinning demand for safe-haven assets, the CEO and asset manager adds. Spot gold is 0.1% lower at $3,393.87/oz. (
Yahoo
22-07-2025
- Business
- Yahoo
Gold prices hover near one-month high
Gold (GC=F) Gold prices (GC=F) hovered around the $3,400 mark on Tuesday morning, their highest level in more than a month as uncertainty over US tariffs and interest rates kept haven demand strong. Gold futures were down 0.3% to $3,397.70.30 per ounce, at the time of writing, while spot gold rose 0.6% to $3,385.63 per ounce. The rally in the precious metal came amid reports that the European Union was preparing retaliatory tariff measures in response to US president Donald Trump's plans to impose fresh tariffs on European goods. Washington is reportedly eyeing levies of at least 15% on certain imports from the bloc. Investor focus is also turning toward next week's Federal Reserve meeting, with markets widely expecting the central bank to leave interest rates unchanged. However, the outlook remains clouded by political pressure, as Trump has continued to call for immediate rate cuts to support the economy. Read more: FTSE 100 LIVE: London stocks tread water as UK borrowing jumps above £20bn 'The precious metals complex has been the clear beneficiary of the technical breakdown in the USD index (DXY), with the intraday relationship between gold and the DXY becoming notably tight,' said Chris Weston, head of Research at Pepperstone. 'Client volumes on gold have picked up over the past 24-36 hours, with XAU/USD holding the top spot as the most traded market. The upbeat flows through the market have seen spot gold emphatically breakout of the of $3,370 to $3,300 trading range it has held since early July, with front-month gold futures settling firmly above $3,400 and holding the big figure through Asia.' Oil (BZ=F, CL=F) Oil prices declined in early European trading on Tuesday as investors assessed limited near-term disruption to global supply from European sanctions on Russia, while mounting fears of a transatlantic trade dispute also weighed on sentiment. Brent crude futures (BZ=F) slipped 0.6% to trade at $68.81 per barrel, at the time of writing, while West Texas Intermediate futures retreated 0.5% to $66.88 a barrel. Market attention has turned to a possible trade rift between the US and the European Union, amid reports that Washington is seeking to impose tariffs of at least 15% on EU imports. Brussels is said to be preparing retaliatory measures in response. Uncertainty over US trade policy is also casting a shadow over consumer confidence and broader economic prospects for the second half of the year. The International Energy Agency, in its July report, forecast global oil demand to rise by just 700,000 barrels per day in 2025, its slowest pace of growth since 2009. Read more: London IPO fundraising slumps in blow to UK Priyanka Sachdeva, senior market analyst at Phillip Nova, said: "Broad demand concerns continue to simmer amid escalating global trade tensions, especially as markets eye the latest tariff threats between major economies and Trump's potential announcements ahead of [the] 1 August deadline." Analysts at ANZ wrote that the 'trade deal impasse could hurt economic activity and thus crude oil demand', particularly if the US moves forward with steep tariffs on EU goods. Pound (GBPUSD=X, GBPEUR=X) The pound was lower against the dollar (GBPUSD=X) this Tuesday morning, despite the weakness in the greenback, as broader market sentiment overshadowed any domestic UK catalysts. The US dollar index ( which measures the greenback against a basket of six currencies, was muted at 97.93. The dollar began the week under pressure, as improving risk sentiment dampened demand for the safe-haven currency. Market optimism around global growth and easing inflation pressures weighed on the greenback, which has seen muted interest from investors seeking safer assets. Further pressure came from Trump, who renewed his criticism of Fed chair Jerome Powell late last week. Trump labelled Powell 'truly one of my worst appointments', a comment that continued to reverberate through currency markets. Stocks: Create your watchlist and portfolio Elsewhere in currencies, the pound also weakened slightly against the euro (GBPEUR=X). Sterling was down 0.1% against the single currency to trade at €1.1523 at the time of writing. With limited domestic data releases early in the week, sterling's performance is expected to remain at the mercy of external sentiment. In equities, the FTSE 100 (^FTSE) was muted at 9,012 points. For more details, on market movements check our live coverage in to access your portfolio
