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Barnama
a day ago
- Business
- Barnama
Concerns Over US Fiscal Position Dampen The Dollar
BUSINESS By Abdul Hamid A Rahman KUALA LUMPUR, May 30 (Bernama) -- The US dollar continues to weaken, pressured by concerns over the United States (US) fiscal outlook, including rising debt, widening deficits and increased government spending, alongside trade tensions and shifting global investments. SPI Asset Management managing partner Stephen Innes said the dollar's recent weakness is tied to deeper issues in the US economy, and not just interest rate changes. "The dollar's weakness has very little to do with interest rates. In fact, the relationship between the dollar and US Treasury yields, which used to be strong, has now broken down completely. Investors are losing trust in US policies and are worried about the country's growing debt,' he told Bernama. Innes pointed out that a major factor in the dollar's decline is the growing shift of Asia's investments away from US assets. 'Asia is starting to pull back its US$5 trillion to US$7 trillion investments in US Treasuries, signalling a strategic change in how Asia views US assets. "Asia's confidence in US assets is fading, which is contributing to the pressure on the dollar," he said. Innes indicated that US fiscal issues, including the impact of President Donald Trump's "Big Beautiful Bill," are likely to expand the US deficit. "The tax cuts and increased spending under this policy are making the deficit worse, and that is negative for the dollar," he said.
Yahoo
2 days ago
- Business
- Yahoo
Stock market futures jump after court halts most Trump's tariffs
Stock futures are jumping after a federal court late Wednesday froze most of the tariffs the Trump administration has imposed on U.S. trading partners. The U.S. Court of International Trade ruled President Trump had overstepped his legal authority in assessing a 10% levy in an April 2 barrage of tariffs he referred to as "Liberation Day." The court also blocked a separate set of U.S. duties on China, Mexico and Canada. Futures on the S&P 500 were up 67 points, or 1.1%, to 5,969 as of 7:27 a.m. EST, while contracts on the Dow Jones Industrial Average and Nasdaq Composite rose 0.5% and 1.6%, respectively. "Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific," Stephen Innes of SPI Asset Management said in a report. Overseas markets also rose following the surprise legal decision. In early European trading, Germany's DAX gained 0.5% and France's CAC 40 added 0.9%. In Asia, Japan's Nikkei 225 index surged 1.9%. America's largest ally in Asia had urged Mr. Trump to cancel the tariffs on imports from Japan and to also halt 25% tariffs on steel, aluminum and autos. The ruling by the three-judge panel means the baseline 10% tariff, so-called reciprocal tariffs on dozens of other nations that the U.S. had paused for 90 days, a 20% levy on China, and a 25% tax on certain imports from Canada and Mexico are void. The court gave the Trump administration 10 days to issue new orders canceling the tariffs. The Trump administration had cited the International Emergency Economic Powers Act of 1977, or IEEPA, which gives the president the power to regulate imports during certain emergencies. But the court rejected the government's interpretation of the law. The Trump administration said it will appeal the ruling to the Federal Circuit Court of Appeals. "If the Trump administration loses its appeal, then it will reduce the downside risks to the economy and the upside risks to inflation if no other tariffs are imposed," analysts with Capital Economics told investors in a client note. SpaceX loses contact with its Starship, spins out of control Sneak peek: My Mother's Murder Trials Videos show man assaulting TSA agents, passenger at Miami International Airport
Nahar Net
2 days ago
- Business
- Nahar Net
Markets welcome court ruling against Trump's tariffs as shares, US dollar and oil gain
by Naharnet Newsdesk 29 May 2025, 12:50 Financial markets welcomed a U.S. court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law. U.S. futures jumped early Thursday and oil prices rose more than $1. The U.S. dollar rose against the yen and euro. The court found the 1977 International Emergency Economic Powers Act, which Trump has cited as his basis for ordering massive increases in import duties, does not authorize the use of tariffs. The White House immediately appealed and it was unclear if Trump would abide by the ruling in the interim. The long term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Trump's trade war. The future for the S&P 500 was up 1.5% while that for the Dow Jones Industrial Average gained 1.2%. In early European trading, Germany's DAX gained 0.5% to 24,160.75. The CAC 40 in Paris jumped 0.9% to 7,860.67. Britain's FTSE was nearly unchanged at 8,722.63. Japan's Nikkei 225 index jumped 1.9% to 38,432.98. American's largest ally in Asia has been appealing to Trump to cancel the tariffs he has ordered on imports from Japan and to also stop 25% tariffs on steel, aluminum and autos. The ruling also pushed the dollar sharply higher against the Japanese yen. It was trading at 145.40 yen early Thursday, up from 144.87 yen late Wednesday. A three-judge panel ruled on several lawsuits arguing Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy. Many of Trump's double-digit tariff hikes are paused for up to 90 days to allow time for trade negotiations, but the uncertainty they cast over global commerce has stymied businesses and left consumers wary about what lies ahead. "Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific," Stephen Innes of SPI Asset Management said in a commentary. The ruling was, at the least, "a brief respite before the next thunderclap," he said. Elsewhere in Asia, Hong Kong's Hang Seng added 1.3% to 23,561.86, while the Shanghai Composite index gained 0.7% to 3,363.45. Australia's S&P/ASX 200 gained 0.2% to 8,409.80. In South Korea, which like Japan relies heavily on exports to the U.S., the Kospi surged 1.9% to 2,720.64. Shares also were helped by the Bank of Korea's decision to cut its key interest rate to 2.5% from 2.75%, to ease pressure on the economy. Taiwan's Taiex edged 0.1% lower, and India's Sensex lost 0.2%. On Wednesday, U.S. stocks cooled, with the S&P 500 down 0.6% but still within 4.2% of its record after charging higher amid hopes that the worst of the turmoil caused by Trump's trade war may have passed. It had been roughly 20% below the mark last month. The Dow industrials lost 0.6% and the Nasdaq composite fell 0.5%. Trading was relatively quiet ahead of a quarterly earnings release for Nvidia, which came after markets closed. The bellwether for artificial intelligence overcame a wave of tariff-driven turbulence to deliver another quarter of robust growth thanks to feverish demand for its high-powered chips that are making computers seem more human. Nvidia's shares jumped 6.6% in afterhours trading. Like Nvidia, Macy's stock also swung up and down through much of the day, even though it reported milder drops in revenue and profit for the latest quarter than analysts expected. Its stock ended the day down 0.3%. The bond market showed relatively little reaction after the Federal Reserve released the minutes from its latest meeting earlier this month, when it left its benchmark lending rate alone for the third straight time. The central bank has been holding off on cuts to interest rates, which would give the economy a boost, amid worries about inflation staying higher than hoped because of Trump's sweeping tariffs. In other dealings early Thursday, the yield on the 10-year Treasury rose to 4.52% from 4.47% late Wednesday. U.S. benchmark crude oil gained $1.06 to $62.90 per barrel. Brent crude, the international standard, added $1.00 to $65.32 per barrel. The euro slipped to $1.1280 from $1.1292.
Malaysian Reserve
2 days ago
- Business
- Malaysian Reserve
Ringgit retreats to close lower as US tariff court ruling boosts greenback
KUALA LUMPUR — The ringgit retreated to close lower against the greenback on Thursday as the American dollar rallied after a US trade court blocked most of US President Donald Trump's tariffs on imports into the country. At 6 pm, the local note fell to 4.2390/2475 versus the US dollar from Wednesday's close of 4.2215/2275. The US Court of International Trade on Wednesday ruled that Trump was not authorised to invoke emergency economic powers legislation to impose the sweeping global tariffs announced in April. SPI Asset Management managing partner Stephen Innes said markets welcomed the US court decision against Trump, seeing it as potentially good news for the American economy. 'The initial market read is that this could be a net positive for US growth since many had expected the tariffs to weigh on consumption. The sentiment also helped fuel a rally in US equities with Nvidia's blowout earnings boosting investor confidence, leading more people to take risks, stoking demand for US dollars,' he told Bernama. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Federal Reserve's Federal Open Market Committee (FOMC) meeting minutes, which indicated a likely delay in interest rate cuts, also weighed on the ringgit. According to Bloomberg, the FOMC meeting minutes of May 6-7 suggested that policymakers agreed on a cautious approach to monetary policy amid US trade and fiscal uncertainties. At the close, the ringgit traded mostly higher against a basket of major currencies. It rose against the Japanese yen to 2.9188/9249 from Wednesday's close of 2.9271/9315 and gained vis-à-vis the euro to 4.7803/7899 from 4.7838/7906. However, it depreciated against the British pound to 5.7091/7205 from 5.7028/7109 previously. The local note was traded mixed against its ASEAN peers. It weakened against the Singapore dollar to 3.2853/2921 from 3.2776/2825 on Wednesday and dropped versus the Indonesian rupiah to 259.9/260.5 from 259.0/259.5 previously. It inched up against the Thai baht to 12.9321/9647 from 2.9355/9614 and was flat vis-à-vis the Philippine peso at 7.60/7.62 from 7.60/7.62. — BERNAMA
CBS News
2 days ago
- Business
- CBS News
Stock market futures jump after court halts most Trump's tariffs
Stock futures are jumping after a federal court late Wednesday froze most of the tariffs the Trump administration has imposed on U.S. trading partners. The U.S. Court of International Trade ruled President Trump had overstepped his legal authority in assessing a 10% levy in an April 2 barrage of tariffs he referred to as "Liberation Day." The court also blocked a separate set of U.S. duties on China, Mexico and Canada. Futures on the S&P 500 were up 67 points, or 1.1%, to 5,969 as of 7:27 a.m. EST, while contracts on the Dow Jones Industrial Average and Nasdaq Composite rose 0.5% and 1.6%, respectively. "Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific," Stephen Innes of SPI Asset Management said in a report. Overseas markets also rose following the surprise legal decision. In early European trading, Germany's DAX gained 0.5% and France's CAC 40 added 0.9%. In Asia, Japan's Nikkei 225 index surged 1.9%. America's largest ally in Asia had urged Mr. Trump to cancel the tariffs on imports from Japan and to also halt 25% tariffs on steel, aluminum and autos. The ruling by the three-judge panel means the baseline 10% tariff, so-called reciprocal tariffs on dozens of other nations that the U.S. had paused for 90 days, a 20% levy on China, and a 20% tax on certain imports from Canada and Mexico are void. The court gave the Trump administration 10 days to issue new orders canceling the tariffs. The Trump administration had cited the International Emergency Economic Powers Act of 1977, or IEEPA, which gives the president the power to regulate imports during certain emergencies. But the court rejected the government's interpretation of the law. The Trump administration said it will appeal the ruling to the Federal Circuit Court of Appeals. "If the Trump administration loses its appeal, then it will reduce the downside risks to the economy and the upside risks to inflation if no other tariffs are imposed," analysts with Capital Economics told investors in a client note. Alain Sherter Alain Sherter is a senior managing editor with CBS News. He covers business, economics, money and workplace issues for CBS MoneyWatch. contributed to this report.
