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Time of India
4 days ago
- Business
- Time of India
Asian markets edge up ahead of US jobs data; Hong Kong's Hang Seng marginally lower; oil slips
Asian shares traded mostly higher on Friday as investors awaited a crucial update on the US job market, which could provide fresh signals on the health of the world's largest economy. Tokyo's Nikkei 225 rose 0.5% to 37,730.67, while South Korea's Kospi jumped 1.5% to 2,812.05. While, Hong Kong's Hang Seng fell 0.4% to 23,817.10, and China's Shanghai Composite edged up 0.1% to 3,385.91. The S&P/ASX 200 in Australia remained stable at 8,536.40. US futures showed slight gains whilst oil prices decreased. Wall Street's main indexes closed lower as Tesla shares dropped over 14% following a public clash between Elon Musk and President Trump, shaking investor confidence. The stock has lost nearly 30% this year due to tensions between Musk and Trump over a key tax and spending bill. On Thursday, the S&P 500 decreased 0.5% to 5,939.30, ending its three-day winning streak. The index, crucial for numerous retirement accounts, lost momentum after a strong performance in May. The Dow Jones Industrial Average reduced by 0.3% to 42,319.74, whilst the Nasdaq composite declined 0.8% to 19,298.45.. The US Labour Department is set to release job data for May, with Wall Street expecting a slowdown in hiring compared to April. A strong job market has helped support the US economy, but uncertainty over President Trump's shifting tariff policies may cause businesses to hold back on hiring. Meanwhile, a report on Thursday showed more Americans filed for unemployment benefits than expected, reaching the highest level in eight months—though still low by historical standards. Markets remained cautious despite signs of easing tensions with Beijing, as investors remain wary of unpredictable US tariff moves under Trump. The yield on the 10-year US Treasury was stable at 4.40% on Thursday, slightly up from 4.37% the day before. Yields had dropped sharply on Wednesday amid growing expectations that the Federal Reserve may cut interest rates later this year to support the economy. In early Friday trading, US benchmark crude slipped 21 cents to $63.16 per barrel, while Brent crude fell 18 cents to $65.16. Currency movements were mixed: the US dollar rose to 143.77 yen from 143.49, while the euro dipped to $1.1438 from $1.1448. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
5 days ago
- Business
- Time of India
US markets hold steady: Wall Street edges up ahead of US jobs data; Fed rate cut bets rise amid hiring concerns
US stocks traded slightly higher Thursday as investors awaited key employment data, while fresh signals of labour market softness stoked expectations of a rate cut later this year. Tired of too many ads? go ad free now The S&P 500 rose 0.2% in early trading, while the Dow Jones Industrial Average was up 48 points, or 0.1%. The Nasdaq composite also gained 0.2%. Investors are focused on the US Labour Department's monthly jobs report due Friday, which is expected to show that employers added 130,000 jobs in May — down from 177,000 in April. According to the Associated Press, markets were responding to early signs of weakening momentum in the labour market, along with uncertainty tied to President Donald Trump's on-and-off tariff policy. Analysts say concerns over hiring slowdowns may prompt the Federal Reserve to cut interest rates later this year. Earlier this week, a report by payroll provider ADP showed that private employers added fewer jobs than expected, contributing to pressure on the Fed to act. On Thursday, the government was also set to release its weekly jobless claims report, a key indicator of layoffs. The Fed has held off on cutting rates so far this year after multiple reductions through 2024. Policymakers are monitoring the inflationary impact of Trump's tariffs alongside broader economic risks. Trump recently urged Fed Chair Jerome Powell to move faster on rate cuts following the ADP data miss. In corporate news, Procter & Gamble shares were flat after confirming a plan to cut 7,000 non-manufacturing jobs — about 15% of its workforce — over two years as part of a restructuring strategy. Among other movers, teen discount retailer Five Below surged 6.5% after beating analyst forecasts on both revenue and profit and raising its full-year guidance. Tired of too many ads? go ad free now PVH Corp., the parent of Calvin Klein and Tommy Hilfiger, fell nearly 8% after it slashed its full-year profit outlook, citing tariff-related pressures. In global markets, France's CAC 40 and Germany's DAX each rose 0.3%, while the UK's FTSE 100 gained 0.2%. In Asia, Japan's Nikkei 225 dropped 0.5%, while South Korea's Kospi jumped 1.5% after newly elected President Lee Jae-myung pledged to restart North Korea dialogue and strengthen ties with the US and Japan. Hong Kong's Hang Seng gained 1.1%, the Shanghai Composite rose 0.21%, and Australia's S&P/ASX 200 was flat. In commodities, US crude added 15 cents to $63 a barrel, while Brent crude gained 20 cents to $65.06 a barrel. In currency trade, the dollar climbed to 143.19 Japanese yen from 142.78. The euro was slightly higher at $1.1425, up from $1.1418.
The Age
5 days ago
- Business
- The Age
ASX closes flat as Lynas, MinRes shine, CBA holds strong above $180
Payments technology provider Tyro was a notable loser during the session, slipping 10.4 per cent after telling the market it had lost its chief executive Jon Davey, who has accepted a job at an undisclosed private equity-backed business. On Wall Street, the S&P 500 finished the day virtually unchanged, remaining 2.8 per cent below its all-time high. The Dow Jones fell 91 points, or 0.2 per cent, and the Nasdaq composite added 0.3 per cent. However, the local market shrugged off the mixed Wall Street session, as weak US jobs and manufacturing data indicated Trump administration trade policy was weighing on an already slowing US economy, market analyst Kyle Rodda said. 'Although investor sentiment remains robust, largely because of confidence – misplaced or otherwise – about progress in US trade negotiations and strong tech results, the spectre of a slowdown in growth continues to feed niggling fears that the equity market has gotten too far ahead of itself,' he said. The action was strong in the bond market on Wednesday, where Treasury yields tumbled following the weaker-than-expected economic updates. One update said that activity contracted for US retailers, finance companies and other businesses in the services industries last month, when economists were expecting to see growth. Businesses told the Institute for Supply Management in its survey that all the uncertainty created by tariffs is making it difficult for them to forecast and plan. A second report from payroll systems provider ADP suggested US employers outside the government hired far fewer workers last month than economists expected. That could bode ill for Friday's more comprehensive jobs report coming from the US Labour Department, which is one of Wall Street's most anticipated data releases each month. So far, the US job market has remained remarkably resilient despite years of high inflation and now the threat of President Donald Trump's high tariffs. But weakness there could undermine the rest of the economy. To be sure, ADP's report historically has not been a perfect predictor of what the US Labour Department's report will say. 'Whether this report is accurate or not, traders and investors will read today's number as a dark result for trading today,' according to Carl Weinberg, chief economist at High Frequency Economics. 'This may be the tip of an iceberg, but it also could be a false start.' Following the reports, traders built up bets that the Federal Reserve will need to cut interest rates later this year in order to prop up the economy, which in turn caused the fall for Treasury yields. The weaker-than-expected ADP report also pushed Trump to call on Fed Chair Jerome Powell to deliver cuts to rates more quickly. Loading ''Too Late' Powell must now LOWER THE RATE,' Trump said on his Truth Social platform. 'He is unbelievable!!!' The Fed has yet to cut interest rates this year after slashing them through the end of 2024. Part of the reason for the pause is that the Fed wants to see how much Trump's tariffs will hurt the economy and raise inflation. While lower interest rates could boost the economy, they could also give inflation more fuel. Longer-term Treasury yields have also been rising in recent weeks due to reasons outside the Fed's control. Investors have been demanding the US government pay more in interest to borrow because of worries about whether it's set to add trillions of dollars to its debt through tax cuts under discussion on Capitol Hill.
Time of India
15-05-2025
- Business
- Time of India
US wholesale prices fall in April despite tariffs, biggest drop in five years
US wholesale prices fell unexpectedly in April, marking their first monthly decline in over a year, despite sweeping import tariffs introduced by President Donald Trump. The decline comes as a surprise to economists who had anticipated a modest increase. The producer price index (PPI) — which measures inflation at the wholesale level before it reaches consumers — dropped 0.5% from March, the largest monthly decline since 2020 and the first since October 2023, the US Labour Department reported Thursday. Year-over-year, producer prices were up 2.4%, down from a 3.4% annual increase in March, AP reported. Excluding food and energy, core wholesale prices fell 0.4% month-over-month and were 3.1% higher than a year ago. A sharp 0.7% drop in services prices — the steepest decline since government record-keeping began in 2009 — played a key role in pulling down the overall index. The decline reflected falling profit margins at wholesalers and retailers. Meanwhile, wholesale food prices dropped 1%, and egg prices plunged 39%, though they remain nearly 45% higher than a year ago due to lingering effects of bird flu outbreaks. Earlier this week, the Labour Department also reported a softening in consumer inflation, with the Consumer Price Index (CPI) rising just 2.3% year-over-year in April — the smallest increase in over four years. Many economists had expected Trump's tariffs to exert upward pressure on prices. However, the full effect may be delayed. Some analysts believe the impact could begin to show in economic data by June or July, particularly if trade tensions escalate again. Trump's tariff policy continues to evolve, making it difficult to assess the long-term economic implications. On Monday, in a surprising move, the administration significantly de-escalated the trade conflict with China by reducing tariffs on Chinese goods from 145% to 30%. In response, China lowered its retaliatory tariffs on US products from 125% to 10%. "Tariffs have yet to make much of a mark on pricing, though it's likely just a matter of time," said Sal Guatieri, senior economist at BMO Capital Markets, in a research note. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
08-05-2025
- Business
- Time of India
US jobless claims drop sharply, but tariff tensions cloud labour market outlook
The number of Americans filing for first-time unemployment benefits fell more than expected last week, signalling ongoing resilience in the labour market even as warning signs mount from escalating trade tensions and economic uncertainty. Initial jobless claims dropped by 13,000 to a seasonally adjusted 228,000 for the week ending May 3, according to the US Labour Department, Reuters reported. The reading came in below economists' expectations of 230,000, based on a Reuters poll, and reversed some of the prior week's spike attributed to school spring breaks in New York state. While the weekly drop reflects a still-sturdy job market, economists are increasingly wary of a potential slowdown ahead. Operation Sindoor India foils Pakistan's attack on Jammu airport: What we know so far How India used 'Sudarshan Chakra' to take down Pak drones, missiles Operation Sindoor: Several airports in India closed - check full list President Donald Trump's sweeping tariff hikes—including a 145% duty on Chinese imports—have rattled both business and consumer sentiment, adding pressure to an economy already navigating inflation concerns and slower hiring momentum. Federal Reserve Chair Jerome Powell, speaking after the central bank kept interest rates steady at 4.25–4.50% on Wednesday, warned that the scale of tariff increases has been "significantly larger than anticipated." He added, 'If sustained, they're likely to generate a rise in inflation, a slowdown in economic growth and an increase in unemployment.' Despite those concerns, employers appear hesitant to shed workers. Many firms, having struggled to hire during and after the pandemic, remain reluctant to let go of existing employees. However, businesses directly exposed to trade risks have begun modest layoffs, hinting at deeper challenges. A recent ISM manufacturing survey highlighted that employment in the sector remained weak in April, with layoffs noted as the primary adjustment tool—an indication that job cuts are becoming more deliberate. The number of people receiving benefits after their initial claim—a proxy for ongoing hiring—fell by 29,000 to 1.879 million in the week ending April 26. However, other labour indicators flashed concern: while the unemployment rate held steady at 4.2% in April, the median duration of unemployment rose to 10.4 weeks, up from 9.8 weeks in March. The economy added 177,000 jobs in April, showing moderate job creation but suggesting that hiring momentum may be slowing as businesses grow more cautious amid global trade tensions and monetary policy uncertainty. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
