Latest news with #SukritiGupta
RNZ News
2 days ago
- Business
- RNZ News
Tesla stocks plunge 14% on Trump-Musk feud
By Saeed Azhar , Kanchana Chakravarty and Sukriti Gupta , Reuters Tesla dropped more than 14 percent in heavy trading. Photo: Jakub Porzycki/NurPhoto/Getty Images via CNN Newsource Wall Street's stock indexes ended lower on Thursday in choppy trade as a slump in Tesla shares offset news of progress in tariff talks between US President Donald Trump and Chinese leader Xi Jinping. Shares of electric car-maker Tesla dropped more than 14 percent in heavy trading as the public feud between chief executive Elon Musk and Trump intensified. The stock has fallen four out of the last five sessions. The company lost about US$150 billion in value after Trump and Musk began their verbal war. Musk has stepped up criticism of the president's massive tax legislation in recent days, while Trump alleged Musk was upset because the bill takes away tax benefits for electric vehicle purchases. "The fallout for Tesla stock is self-evident," said Mark Spiegel, portfolio manager at Stanphyl Capital. "I see no meaningful fallout from this for the rest of the market, other than its slight effect on the indexes and index funds. The overall stock market has plenty of problems, but Tesla isn't one of them." Investors focused earlier on news that Trump and the Chinese leader had invited each other to their respective countries for visits as shown in US and Chinese summaries of their phone call on Thursday. A recent dispute over critical minerals had threatened to tear up a fragile trade truce between the two biggest economies. "Recent market moves are further indication that with economic policy shifts, and higher geopolitical and headline sensitivity, equity markets will be characterized by greater volatility and velocity than in the previous cycle," said Katherine Bordlemay, co-head of Americas client portfolio management for fundamental equities at GSAM. The Dow Jones Industrial Average fell 108.00 points, or 0.25 percent, to end at 42,319.74. The S&P 500 lost 31.51 points, or 0.53 percent, at 5,939.30 and the Nasdaq Composite dropped 162.04 points, or 0.83 percent, to 19,298.45. Weaker-than-expected U.S. private payrolls and services sector data on Wednesday raised concerns about an economic slowdown caused by trade uncertainties, with investors focusing squarely on Friday's nonfarm payrolls report. Initial jobless claims data on Thursday showed Americans filing new applications for unemployment benefits last week rose for a second straight week. Kansas City Federal Reserve Bank President Jeff Schmid on Thursday expressed concern that tariffs could rekindle inflation, saying upward price pressure could be apparent in coming months but not fully known for much longer. The comments show Schmid is likely inclined to hold the Fed policy rate steady at its June 17-18 meeting as is widely expected, but also beyond that. Despite calls from Trump to slash rates, Fed Chair Jerome Powell has opted to stand pat so far, awaiting further data to guide the policy decision as tariff volatility prevails. US equities rallied sharply in May, with the S&P 500 index and the tech-heavy Nasdaq scoring their biggest monthly percentage gains since November 2023, thanks to a softening of Trump's harsh trade stance and upbeat earnings reports. Brown-Forman fell almost 18 percent after the Jack Daniel's maker forecast a decline in annual revenue and profit. Procter & Gamble said it will cut 7,000 jobs, or about 6 percent of its workforce, over the next two years in a restructuring. Shares of the consumer goods bellwether fell 1.9 percent. Volume on US exchanges was relatively light, with 17.3 billion shares traded, compared to an average of 17.9 billion shares over the previous 20 sessions. Declining issues outnumbered advancers by a 1.11-to-1 ratio on the NYSE. There were 253 new highs and 49 new lows on the NYSE. On the Nasdaq, declining issues outnumbered advancers by a 1.48-to-1 ratio. The S&P 500 posted 16 new 52-week highs and three new lows while the Nasdaq Composite recorded 63 new highs and 42 new lows. - Reuters
Yahoo
14-05-2025
- Business
- Yahoo
European shares close higher after Sino-US tariff deal relieves markets
By Sukriti Gupta and Purvi Agarwal (Reuters) -European shares started the week on a positive note on Monday after the United States and China agreed to temporarily slash tariffs, providing some relief to global markets roiled by the trade war. The U.S. will cut extra tariffs on Chinese imports to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125% for the next 90 days, as per the deal. The pan-European STOXX 600 index closed 1.2% higher, while regional bourses including ones in Germany and the UK were up. "The deal is a step towards something that's much better... The worst-case scenarios that investors were pricing in April seem to have been lifted over recent weeks as there's been a softening of rhetoric," said Patrick Armstrong, chief investment officer at Plurimi Wealth. Traders reduced bets on interest rate cuts from the European Central Bank after the deal, with the reduced odds also aided by ECB board member Isabel Schnabel's remarks. The easing in tensions has relieved financial markets about worries over global economic growth, and signs of the de-escalation helped the European equities recover their sharp losses from early April. Sportswear makers Puma and Adidas closed 6.5% and 3.8% higher, while logistics companies Maersk and Hapag-Lloyd advanced 11.2% and 13%, respectively. Basic metal miners were the top gainers, up 5% after the deal buoyed prices of industrial metals. Most healthcare heavyweights such as Roche Holding, Sanofi and AstraZeneca had dipped earlier in the day, after U.S. President Donald Trump planned to sign an executive order to cut prescription drug prices to the level paid by other high-income countries. However, they reversed losses, with the sector index ending 0.5% higher. "The market was pricing in very stringent rules, but these are going to be hard to enforce," said Armstrong, adding that the order was a little vague. Shares in Novo Nordisk fell marginally after U.S. competitor Eli Lilly said its drug Zepbound was found to be superior to Novo's Wegovy across five weight-loss targets in a head-to-head trial. Meanwhile, Ukrainian President Volodymyr Zelenskiy said he was ready to meet Russian President Vladimir Putin in Turkey on Thursday. Defence stocks Hensoldt slumped 11.6% and Rheinmetall fell 5.9%, with an index tracking European arms makers down 1.4%. UniCredit rose 4.2% as Italy's second-biggest bank strengthened its 2025 outlook after posting a surprise increase in first-quarter profit. Sign in to access your portfolio
Yahoo
06-05-2025
- Business
- Yahoo
German stocks drag Europe lower after Merz setback
By Sukriti Gupta (Reuters) -European stocks fell on Tuesday, with German shares lagging after conservative leader Friedrich Merz failed to garner the parliamentary majority needed to become chancellor, while uncertainty about U.S. tariffs continued to weigh on the mood. The pan-European STOXX 600 index was down 0.7% as of 0911 GMT. Germany's DAX led losses among regional indexes with a 1.6% decline after Merz, who led his CDU/CSU conservatives to win a federal election in February, faced an unexpected setback for his new coalition with the centre-left Social Democrats. The domestically focussed mid-cap MDAX fell 2.9% and German government bond yields dipped. "This is unprecedented and delays the transition of power," Societe Generale analysts said in a note. Meanwhile, a survey showed the euro zone economy continued to expand in April but at a slower pace as demand weakened and the dominant services sector nearly stagnated, suggesting the region's recovery remains fragile. Focus is on whether Sino-U.S. trade tensions will ease after China last week said it was evaluating an offer from Washington to hold talks over tariffs. However, the lack of concrete details on any deals between the U.S. and its partners has kept investors on edge. Trump, on Sunday, announced a 100% tariff on movies produced outside the U.S. and a day later said he intends to announce pharmaceutical tariffs over the next two weeks. "People are just waiting because there have been all these hopes, but nothing concrete is in place," said Axel Rudolph, senior technical analyst at IG Group. Market attention is also on the U.S. Federal Reserve's policy announcement on Wednesday. While the central bank is expected to keep rates unchanged, investors will look for comments on the impact of tariffs on economic growth. The Bank of England's rate decision is also due this week. Among individual stocks, Vestas rose about 4.7% after the wind turbine maker reported an unexpected operating profit for the first quarter. Fresenius Medical Care jumped 3.8% after the German kidney dialysis company reported first-quarter results above market expectations. Philips fell 1.7% after the Dutch healthcare technology company cut its profit margin forecast for 2025. Castellum slumped 7.5% after the Swedish real estate group posted weaker-than-expected first-quarter results. Coloplast tumbled 4.8% after the Danish medical equipment maker's CEO stepped down on Monday and it reported a second-quarter miss on Tuesday. (Reporting by Sukriti Gupta; Editing by Savio D'Souza and Sonia Cheema)
Yahoo
02-05-2025
- Business
- Yahoo
European shares rise on signs of easing Sino-US trade tensions
By Sukriti Gupta (Reuters) -European shares surged on Friday as signs of a potential de-escalation of trade tensions between the U.S. and China lifted risk sentiment while investors assess a flurry of corporate earnings and key economic data. The pan-European STOXX 600 index rose about 1% as of 0815 GMT after registering its second consecutive monthly drop on Wednesday. Other regional indexes - Germany, France, Spain, and the UK rose between 0.8% and 1.6%. China's Commerce Ministry said that Beijing was "evaluating" an offer from Washington to hold talks over U.S. President Donald Trump's 145% tariffs and that Beijing's door was open for discussions. However, China said Washington needed to show "sincerity" in negotiations and should be prepared to cancel its unilateral tariffs. "This goes one further step in the direction that tariffs with regards to the U.S. and China have probably seen their peak. So the market is basically saying that this is yet an extra sign that we may see lower taxes going forward," said Georgios Leontaris, chief investment officer for Switzerland and EMEA at HSBC Global Private Banking and Wealth. "But again, the market is kind of conscious that uncertainty is likely to linger. And, even though there are positive signs, the market certainly wants to see some concrete actions." Shell rose 3.2% after the oil giant reported a 28% drop in first-quarter net profit but beat analyst expectations. Danske Bank rose 3.5% after Denmark's biggest lender kept its 2025 profit outlook unchanged as it reported forecast-beating first-quarter profits. Airbus rose 4.3% after the planemaker topped quarterly estimates across the board and reaffirmed its annual outlook. ING Groep rose 5.3% after the Dutch bank announced a new 2 billion euro ($2.3 billion) share buyback and reported a better-than-expected first-quarter profit. Cofinimmo rose 6.7%, the most on the STOXX, after peer Aedifica launched a takeover offer with a 'significant premium' on the Belgian real estate investment trust. Shares of Aedifica fell 5.7%. Euro zone manufacturing output grew at the fastest pace in just over three years in April despite overall factory activity remaining in contraction territory, with the big three economies showing signs of improvement, a survey showed. Investors will also be on the lookout for April flash inflation data for euro zone expected shortly. U.S. nonfarm payrolls data is also due later in the day. ($1 = 0.8846 euros)
Yahoo
30-04-2025
- Business
- Yahoo
European shares edge higher as traders gauge mixed earnings, economic data
By Sukriti Gupta (Reuters) -European shares edged higher on Wednesday as investors assessed mixed corporate earnings and key economic data, wrapping up a volatile month dominated by disruptive U.S. trade policy. The pan-European STOXX 600 index was up 0.2%, as of 0834 GMT, but on track for a second consecutive monthly drop, if current trends persist. Other regional indexes showed a mixed performance, with Germany and France up 0.5% and 0.3%, respectively, while Spain and the UK slipped 1.4% and 0.1%, respectively. The European benchmark index has clawed back over half of its losses after tumbling nearly 18% from record highs earlier this month, sparked by fears of a global recession following U.S. President Donald Trump's import tariffs. Markets have stabilized somewhat in recent weeks on optimism over potential deals between the United States and its trading partners, especially China. However, a lack of clarity on Sino-U.S. negotiations has kept the market sensitive to any developments. Despite Trump's move to soften the blow of his auto tariffs and signs of progress in broader trade negotiations, details remain scant, with U.S. Commerce Secretary Howard Lutnick saying he had reached one deal with a foreign power. The latest earnings forecasts released on Tuesday indicate an improved outlook for European corporate health. According to data from the STOXX 600 companies that have reported their first-quarter earnings, at least 60.4% of them posted better-than-expected numbers. "It could be the calm before the storm because basically a lot of earnings are looking back to before when the U.S. tariffs were imposed and companies seem to be doing rather well so far. The question is, will that be the case going forward? And, that is something that the markets are still waiting for," said Axel Rudolph, senior technical analyst at IG Group. Societe Generale rose 2.7% after the French bank reported stronger-than-expected first-quarter earnings. Danish logistic group DSV advanced nearly 9% after it completed a deal to acquire Germany's Schenker and provided an outlook on potential benefits from the transaction. Shares of Credit Agricole fell 4.4% after the French bank reported a drop in first-quarter profit. Evolution slumped 16.9% as the Swedish gaming technology company reported its first-quarter earnings below estimates. Mercedes fell 1.1% after the carmaker withdrew its 2025 earnings outlook, citing volatility due to U.S. tariffs. Preliminary data showed modest economic growth in both France and Germany in the first quarter of 2025, with France also experiencing a sharper-than-expected rise in consumer prices in April. The euro zone economy grew faster than expected in the first quarter, starting 2025 on a modestly upbeat note, though looming risks — including a potential trade war with the U.S., a stronger euro, and worsening business sentiment — threaten to undermine momentum, according to data. Sign in to access your portfolio
