Latest news with #StoxxEurope600
CNBC
18 hours ago
- Business
- CNBC
CNBC Daily Open: Investors are signaling it's time for tariffs to move aside
Stock markets in the U.S. and Europe didn't seem that delighted with the U.S.-European Union trade deal reached over the weekend. The S&P 500 ticked up, but by the barest margin, while the Stoxx Europe 600 fell. Both indexes were trading higher during their respective sessions but had given up those gains as the day ended. For those on the continent, perhaps there was a dawning realization that the agreement wasn't too much in their favor. German Chancellor Friedrich Merz said he would have welcomed further easing of trade, while France's minister for Europe, Benjamin Haddad, said the deal was "unbalanced," according to a Google translation. With U.S. President Donald Trump announcing Monday that he would probably impose a blanket tariff of between 15% and 20% on countries without trade agreements, it's starting to seem like most duties will settle around that level eventually, easing some uncertainty. What's more, economists appear to be revising downward their expectations of the impact tariffs will have on the U.S. economy — so any deals in the future might not trigger rallies, or strong ones at least, on Wall Street. Tariff considerations, then, are on the backburner for now. Investors can turn their attention to Magnificent Seven earnings and data on the U.S. economy coming out the next few days. If all goes well, they might give markets the cheer that was missing on Monday. Global baseline tariff of between 15% and20%. For countries that have not negotiated separate trade agreements with the U.S., Trump said he would likely impose that blanket tariff rate on their exports. But Wall Street doesn't seem as frightened of tariffs anymore. Less than two weeks for Russia to reach a peace deal with Ukraine. That's the new deadline Trump issued to Moscow — if Russia fails to meet it, the U.S. president will implement massive "secondary tariffs" on the country's trade partners, Trump said. India has exported more smartphones to the U.S. than China. In the second quarter, 44% of U.S. smartphone imports were assembled in India, while 25% were from China, according to research firm Canalys. India's and China's share a year earlier were 13% and 61%, respectively. A muted response to the EU deal. On Monday, the S&P 500 closed mostly flat, giving up earlier gains. Asia-Pacific markets fell Tuesday. Shares of Singapore Airlines lost as much as 8% after the carrier reported a 59% slump in profit for its fiscal first quarter. [PRO] Watch this index for signs of a new bull phase. This index, which is calculated differently from the price-weighted S&P 500, gives a better gauge of the health of the entire economy and stock market. China's latest AI model claims to be even cheaper to use than DeepSeek Chinese startup formerly known as Zhipu, announced Monday that its new GLM-4.5 AI model would cost less than DeepSeek to use. At about half the size of DeepSeek's model, GLM-4.5 only needs eight Nvidia H20 chips to operate, CEO Zhang Peng told CNBC on Monday. In late June, OpenAI named Zhipu in a warning about Chinese artificial intelligence progress. The U.S. has also added the startup to its entity list that restricts American companies from doing business with it. —
Wall Street Journal
2 days ago
- Automotive
- Wall Street Journal
European Auto Sector Gains on New U.S. Trade Pact
Investors in the European auto sector cheered Sunday's trade agreement between the U.S. and EU, with German carmakers among the biggest gainers on the Stoxx Europe 600 index in early trade. The agreement will see a 15% tariff applied to EU goods entering the U.S., easing pressure on the sector that President Trump had targeted with a 25% duty since early April.
CNBC
2 days ago
- Business
- CNBC
European stocks set to rise after the U.S. and EU strike trade agreement
Good morning from London. There's just under an hour and a half to go until stocks begin trading for the first time since the U.S. and European Union agreed to a trade deal. Futures tied to the Stoxx Europe 600 index point to a strong start with the index expected to open 0.8% higher. Regionally, the German DAX is expected to rise 1%, France CAC 40 index is set to be 0.4% higher and the U.K.'s FTSE 100 is expected to rise 0.5%. — Ganesh Rao
CNBC
5 days ago
- Automotive
- CNBC
CNBC Daily Open: Tesla's bad things come in threes
Tesla's going through a bumpy ride. The electric vehicle company on Wednesday reported a second consecutive quarter of declining auto sales. In Europe, Tesla's market share fell for the sixth straight month to 2.8% in June from 3.4% a year ago. The Trump administration's plans to reportedly roll back the U.S.' push for cleaner vehicles will probably hit Tesla further. A $7,500 EV tax credit in the U.S. will expire at the end of September, indirectly raising the cost of Tesla vehicles. Meanwhile, traditional carmakers will no longer need to purchase EV regulatory credits from Tesla — which receives them for free because its vehicles are completely electric — as the Trump administration intends to stop fining traditional carmakers for missing emission standards. That means Tesla will soon lose a source of revenue. They say bad things come in threes. Here's the last. While Tesla's bitcoin holding is currently worth $1.24 billion, according to its investor deck, it could have been worth billions more. In 2022, the company dumped 75% of its bitcoin. The cryptocurrency is trading at roughly $118,000 now. When Tesla sold its holdings, it was trading at around $19,000. If there's any consolation, even though U.S. President Donald Trump's "big beautiful bill" will affect Tesla, Trump said on Thursday it wasn't a targeted measure. "I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!" Whether Trump's sentiments can help pave a smoother road for Tesla, though, is another spars with Powell during Fed visit. The U.S. President went back and forth with the Federal Reserve chair over Trump's claims about cost overruns at the Fed headquarters. But Trump said he doesn't think it's "necessary" to fire Powell. The S&P 500 and Nasdaq Composite close at new records. Both indexes were boosted by Alphabet's better-than-expected earnings. The Stoxx Europe 600 index added 0.24%, paring earlier gains as the European Central Bank kept rates at 2%. Tesla shares sink 8%. That drop was triggered after the company on Wednesday reported a second straight quarter of declining auto sales. Tesla also dumped 75% of its bitcoin at one of the worst times. Intel's second-quarter revenue beats estimates. But the chipmaker reported a net loss of $2.9 billion due to an $800 million impairment charge. Intel's new CEO Lip-Bu Tan also announced big spending cuts in the company's foundry business. [PRO] An Indian company bets on weight-loss drugs. Expiring patents in Brazil and India mean that this pharma firm has a rare opportunity to be a first mover in dozens of emerging markets. Leaving, but not letting go — India's wealthy move abroad, but stay invested India is home to 85,698 individuals with assets exceeding $10 million, according to a recent report from Knight Frank. That accounts for 3.7% of the global population with that net worth, more than the U.K.'s 2.4%, but less than China's 20.1%. A recent survey by wealth management firm Kotak Private, conducted in association with consultancy EY, revealed that one in five of the 150 ultra-high-net-worth individuals polled plan to emigrate from India while retaining their Indian citizenship.
CNBC
7 days ago
- Business
- CNBC
CNBC Daily Open: The 15% tariff rate on Japan can feel like a relief only because of hefty ones before
The anchoring effect is one of the sneakiest tools companies use to make us spend money. Here's how it works. Let's say we're shopping for a smartphone manufactured by Dapple, which has just released two new models: a $1,200 model with a big screen and a $900 one that is more compact. The more expensive smartphone will serve as the "anchor" by which we make comparisons, so the $900 model will appear to be value for money — even if it is costly in absolute terms. But we're likely to feel good about choosing it because we've "saved" $300 on our purchase. This scenario seems to be what's happening with the U.S-Japan trade agreement freshly announced late Tuesday stateside. U.S. President Donald Trump said Washington would gain access to Japan's markets for rice and cars — which had been sticking points during negotiations — while the latter would pay 15% tariffs on its exports to America. At first glance, that doesn't sound too positive for Japan. But, in comparison with the 25% tariff Trump slapped on Tokyo earlier this month, it's a big improvement. As Brian Jacobsen, chief economist at Annex Wealth Management, said, "It's a sign of the times that markets would cheer 15% tariffs. A year ago, that level of tariffs would be shocking. Today, we breathe a sigh of relief." That, in essence, is the anchoring effect at play. Trump announces 'massive' trade deal with Japan. Under the agreement, Japan's exports to the U.S. will face a 15% tariff, and the country will "open" its market for cars and rice, Trump said. Japan will reportedly pay 15% tariffs on autos, lower than the universal 25% the U.S. imposed on cars built outside the country. Tariff suspension with China likely to be extended. The U.S. and China's 90-day tariff pause expires on Aug. 12. However, U.S. Treasury Secretary Scott Bessent said the U.S. will be "working out what is likely an extension." Bessent says Jerome Powell doesn't need to resign. However, Bessent reiterated his call for the Fed Chair to conduct an internal review of the central bank. On the flipside, Mohamed El-Erian, chief economic advisor at Allianz, called on Powell to step down. The S&P 500 ticks up to a fresh record. That's the index's 11th record close in 2025. The Dow Jones Industrial Average rose 0.4%, but the Nasdaq Composite lost 0.39% as chip stocks slipped. The Stoxx Europe 600 fell 0.41%, led by a sell-off in defense stocks. [PRO] Goldman Sachs is getting worried over the U.S. economy. Economists at the investment bank expect growth to slow, real income to "drag" and inflation to heat up in 2025 — all of which will raise the firm's projected recession risk. How Europe's 'trade bazooka' could be a last resort against Trump's tariffs The European Union appears to be considering whether to deploy its "Anti-Coercion Instrument" — characterized as a "nuclear option" to try to deter trade disputes — as the threat of a 30% tariff on EU imports looms large. The measures could see the EU restrict U.S. suppliers' access to the EU market, excluding them from participation in public tenders in the bloc, as well as putting export and import restrictions on goods and services, and limits on foreign direct investment in the region.
