Latest news with #STOXX600
Business Recorder
2 days ago
- Business
- Business Recorder
European shares end May higher as trade uncertainty persists
FRANKFURT: European shares closed higher on Friday, rounding off the month with gains in a still uncertain trade environment as investors assessed the latest developments in US President Donald Trump's tariff plan. The continent-wide STOXX 600 index ended 0.1%higher, brushing off a temporary reinstatement of the most sweeping Trump's tariffs on Thursday, a day after another court ordered an immediate block on them. However, the benchmark index pared most gains after Trump said on Friday that China had violated an agreement on tariffs and issued a new threat to get tougher with Beijing, without revealing details. 'It is a whole different situation that we are going to be in... it's longer and slower and more complicated,' said Jochen Stanzl, chief market analyst at CMC Markets, pointing to the developments on the tariff front. The index still posted its first monthly advance in three, rising about 4%, while also ending the week higher, as investors capitalised on Trump's decision to postpone tariffs on the EU, opening the door for Brussels to produce a trade deal with Washington and recent US fiscal concerns that sent investors flocking to assets outside the US On the day, most sectors were higher, with utilities and healthcare shares up 0.8% each Construction and materials stocks were at the bottom, down 1%. 'This is very much driven by momentum and some fear of missing out... investors over the past few months have been trained to buy the dip to some extent,' said Stanzl. Europe's aerospace and defence index was the top winning sector for the month, up about 14%, as dimming hopes of a truce between Russia and Ukraine persuaded investors to buy ammunition stocks. Germany's DAX 40 ended 0.3% higher. Data showed German inflation eased further in May, bringing it closer to the European Central Bank's 2% target and bolstering the case for an interest rate cut next week. Another dataset showed German retail sales fell by 1.1% in April compared with the previous month. M&G gained 5.5% after it said Japanese life insurer Dai-Ichi Life Holdings will take a 15% stake in the British insurer and asset manager as part of a strategic deal.
Reuters
2 days ago
- Business
- Reuters
European shares trim gains after Trump comments on China tariffs
LONDON, May 30 (Reuters) - Europe's benchmark STOXX 600 index trimmed its gains on Friday after U.S. President Donald Trump said China had violated an agreement on tariffs with the United States. The STOXX 600 (.STOXX), opens new tab dropped after Trump's post on Truth Social, but was last up 0.2% on the day. A measure of European volatility spiked and was last up 0.2 points at 19.19 (.V2TX), opens new tab.
Business Recorder
2 days ago
- Business
- Business Recorder
STOXX 600 edges down on US trade uncertainties; set for monthly gains
European shares dipped on Friday as caution prevailed after a U.S. court reinstated President Donald Trump's tariffs, even as the benchmark index neared a robust monthly gain. The continent-wide STOXX 600 index (.STOXX), opens new tab was down 0.1%, as of 0711 GMT, pressured by a temporary reinstatement of the most sweeping of Trump's tariffs a day after another court ordered an immediate block on them. However, the benchmark index was set for its first monthly advance in three, up 3.8% so far, capitalising on easing trade tensions and the recent U.S. fiscal concerns that forced investors to move away from American assets. European shares ease after court blocks Trump's tariffs On Friday, data showed German retail sales fell by 1.1% in April compared with the previous month. Investors also looked ahead to Germany's May inflation figures, to be released later in the day, that could offer more clues about the European Central Bank's policy decision next week. Among sectors, basic resources was the biggest drag and fell 0.9%, dragged by lower copper prices. The real estate supported the main index by rising 0.8%. M&G jumped 8.2% after it said Japanese life insurer Dai-Ichi Life Holdings will take a 15% stake in the British insurer and asset manager as part of a strategic deal.
RTÉ News
2 days ago
- Automotive
- RTÉ News
Trump's tariff tally: $34 billion and counting, global companies say
President Donald Trump's trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures. This toll is expected to rise as ongoing uncertainty over tariffs paralyses decision making at some of the world's largest companies. Across the US, Asia and Europe, companies including Apple, Ford, Porsche and Sony have pulled or slashed their profit forecasts, and an overwhelming majority say the erratic nature of Trump's trade policies has made it impossible to accurately estimate costs. Reuters reviewed company statements, regulatory filings, conference and media call transcripts to pull together for the first time a snapshot of the tariff cost so far for global businesses. The $34 billion is a sum of estimates from 32 companies in the S&P 500, three companies from Europe's STOXX 600 and 21 companies in Japan's Nikkei 225 indices. Economists say the cost to businesses will likely be multiple times what companies have so far disclosed. "You can double or triple your tally and we'd still say ... the magnitude is bound to be far greater than most people realise," said Jeffrey Sonnenfeld, professor at the Yale School of Management. The ripple effects could be worse, he added, citing the potential for lower spending from consumers and businesses, higher inflation expectations. While a recent pause in Sino-US trade hostilities has offered some relief and Trump has backed down from tariff threats against Europe, it is still not clear what the final trade deals will look like. A US trade court on Wednesday blocked Trump's tariffs from going into effect. In this environment, strategists say companies will look to strengthen supply chains, boost near-shoring efforts, and prioritise new markets - all of which will push up costs. Companies themselves are uncertain about the final cost. As the corporate earnings season draws to a close, Reuters found at least 42 companies have cut their forecasts and 16 have withdrawn or suspended their guidance. For instance, earlier this month, Walmart declined to provide a quarterly profit forecast and said it would raise prices, drawing a rebuke from Trump. Volvo Cars, one of the European automakers most exposed to US tariffs, withdrew its earnings forecast for the next two years and United Airlines gave two different forecasts, saying it was impossible to predict the macro environment this year. Trump has argued that tariffs will cut America's trade deficit and prompt companies to move operations to the country, bringing jobs back home. Tariffs will also force countries including Mexico to stop the flow of illegal immigrants and drugs into the US, Trump has said. "The administration has consistently maintained that the US has the leverage to make our trading partners ultimately bear the cost of tariffs," said White House spokesperson Kush Desai. Tariff talk On earnings conference calls for the January to March quarter, 360 companies, or 72%, in the S&P 500 index mentioned tariffs, up from 150 companies, or 30%, in the previous quarter. Executives at 219 companies listed on the STOXX 600 mentioned tariffs, compared with 161 in the prior quarter. Of the Nikkei 225 companies in Japan, that number was 58, up from 12 earlier. "I don't think corporations have an awful lot of visibility about anything in the future," said Rich Bernstein, CEO of Richard Bernstein Advisors in New York. Referring to withdrawn forecasts, he said. "If you take into account this uncertain world and you can't guide anybody to a number, it's safer not to guide," he added. Wall Street is expecting net profit for companies in the S&P 500 index to grow at an average 5.1% per quarter from April to December, compared to a growth rate of 11.7% a year earlier, according to data compiled by LSEG. Automakers, airlines and consumer goods importers have been among the worst hit. Levies on raw material costs and parts including aluminum and electronics have risen, and tariffs on multiple countries are making assembling cars more expensive because of far-flung supply chains. Moving any production to the US will also raise labour costs. Kleenex tissue maker Kimberly Clark slashed its annual profit forecast last month and said it would incur about $300m in costs this year as tariffs push up its supply-chain costs. A few days later the company said it would invest $2 billion over five years to expand its manufacturing capacity in the US, a number not included in the Reuters tally. Companies including Apple and Eli Lilly have this year announced investments in the US. Johnnie Walker whiskey and Don Julio tequila maker Diageo, which also makes Guinness, said said earlier this month it would cut $500m in costs and make substantial asset disposals by 2028, as a 10% tariff on imports from places like Britain and the European Union is expected to deal a $150m hit to its operating profit every year.
Reuters
2 days ago
- Business
- Reuters
STOXX 600 edges down on US trade uncertainties; set for monthly gains
May 30 (Reuters) - European shares dipped on Friday as caution prevailed after a U.S. court reinstated President Donald Trump's tariffs, even as the benchmark index neared a robust monthly gain. The continent-wide STOXX 600 index (.STOXX), opens new tab was down 0.1%, as of 0711 GMT, pressured by a temporary reinstatement of the most sweeping of Trump's tariffs a day after another court ordered an immediate block on them. However, the benchmark index was set for its first monthly advance in three, up 3.8% so far, capitalising on easing trade tensions and the recent U.S. fiscal concerns that forced investors to move away from American assets. On Friday, data showed German retail sales fell by 1.1% in April compared with the previous month. Investors also looked ahead to Germany's May inflation figures, to be released later in the day, that could offer more clues about the European Central Bank's policy decision next week. Among sectors, basic resources (.SXPP), opens new tab was the biggest drag and fell 0.9%, dragged by lower copper prices. The real estate (.SX86P), opens new tab supported the main index by rising 0.8%. M&G (MNG.L), opens new tab jumped 8.2% after it said Japanese life insurer Dai-Ichi Life Holdings (8750.T), opens new tab will take a 15% stake in the British insurer and asset manager as part of a strategic deal.
