Latest news with #USVietnam
Washington Post
10 hours ago
- Business
- Washington Post
Vietnam's deal with the U.S. will complicate trade with China
The terms of a new trade deal between United States and Vietnam underscore one of the Trump administration's central objectives in Asia, say economists and analysts in the region: clamping down on trade with China.
Free Malaysia Today
11 hours ago
- Business
- Free Malaysia Today
Asian stocks mixed as traders shrug at US-Vietnam trade deal
Hanoi traders were unimpressed with the US-Vietnam trade deal, with the Vietnamese capital's stock market down in early trade. (EPA Images pic) HONG KONG : Stocks struggled in Asia today as investors gave a lukewarm reception to the US-Vietnam trade deal, while the dollar eased ahead of key US jobs data that could impact the Federal Reserve (Fed) interest rate plans. Attention was also on Washington as Republicans struggled to push Donald Trump's tax-slashing budget bill through the House of Representatives amid warnings it would inflate an already ballooning national debt. While the Vietnam agreement provided hope that other governments could reach agreements with Washington, dealers were cautious as it emerged that the country must still pay tolls of as much as 40% for certain exports. With less than a week left until the US president's July 9 deadline to hammer out pacts to avoid his 'reciprocal' levies, just three countries have done so – stoking worries his 'Liberation Day' measures will kick in and spark fresh market turmoil. In a post on his Truth Social platform, Trump wrote: 'It is my great honor to announce that I have just made a trade deal with the Socialist Republic of Vietnam after speaking with To Lam, the highly respected general secretary of the Communist Party of Vietnam.' He said that under the 'Great deal of cooperation', imports of Vietnamese goods will face a 20% US tariff, while goods that pass through Vietnam to circumvent steeper trade barriers – so-called 'transshipping' – will see a 40% tariff. The news means Hanoi will avoid paying the 46% tolls initially applied on the April 2 tariff blitz, though the cost of goods going into America will still surge. Hanoi traders were unimpressed, with the Vietnamese capital's stock market down in early trade. A third record close in four days for Wall Street's S&P 500 and Nasdaq also did little to lift buying sentiment elsewhere in Asia, with Hong Kong, Shanghai, Tokyo, Sydney and Wellington all falling. Singapore, Seoul, Taipei, Manila and Jakarta edged up. Trump said this week he will not push back his deadline to make more deals though he and some of his officials have said a number were in the pipeline. South Korean President Lee Jae-myung said today that his administration was doing its 'utmost' to secure an agreement. However, he warned that 'it's certainly not easy, that much is clear. And to be honest, I can't say with confidence that we'll be able to wrap everything up' by the deadline. The dollar continued to struggle as traders boosted rate cut bets after data showed the private sector unexpectedly shed jobs last month for the first time since March 2023, suggesting the labour market was slackening. The reading came a day before the much-anticipated non-farm payrolls report that is used by the Fed to guide policy. Traders widely expect the bank to cut rates twice this year but there is growing speculation that it could make three, with one possibly at the July meeting. 'Payrolls is the focus today, where consensus is for a 110,000 payrolls gain and a slight lift in the unemployment rate to 4.3%,' said National Australia Bank's Taylor Nugent. 'It would take more than that to dent (policy board) members' comfort (that) the labour market is resilient enough to wait beyond July for more clarity on inflation and the outlook,' Nugent said. Meanwhile, US Treasury yields rose amid fresh worries in the bond market over Trump's 'Big, Beautiful Bill' that cuts taxes as well as spending on programmes such as Medicaid. Independent analysis suggests it will add US$3 trillion to the already-colossal US debt mountain, which observers warn could deal a fresh blow to the world's top economy.
Yahoo
19 hours ago
- Business
- Yahoo
US stocks back at records as oil prices rally
Major US stock indices closed at fresh records Wednesday following a US-Vietnam trade deal, while oil prices jumped after Iran suspended cooperation with the UN nuclear watchdog. Both the S&P 500 and Nasdaq finished at records for the third time in four days after Trump reached an accord with Vietnam. "Little by little, we are coming to agreements," said Sam Stovall of CFRA Research. This "should be regarded as positive." The Vietnam announcement bolsters hopes about additional US trade accords and helped offset a report that showed private-sector US employers shed 33,000 jobs in June. The strong performance in US stocks also came in spite of a rise in US Treasury yields that suggests unease in the bond market as Congress weighs Trump's massive tax and spending package that has been projected to swell US debt. Optimism over the bill's extension of deep tax cuts has been offset by concerns it will add around $3 trillion to the US national debt. "It's driven a wedge between stocks and bonds," said Jack Ablin of Cresset Capital Management. "Equity markets are applauding the tax cuts... bond markets are concerned about the long-term effects." In Europe, London's FTSE 100 ended the day down 0.1 percent and the pound lost around one percent against the dollar on speculation over the future of British finance minister Rachel Reeves. Reeves appeared visibly upset in parliament a day after Prime Minister Keir Starmer's Labour government U-turned over key welfare reforms, wiping out a multibillion-pound boost to public finances and triggering speculation that she could lose her job. "The prospect of political turmoil is causing bond yields to rise. The market is pricing in the possibility of a replacement chancellor with a more left-leaning agenda, which is spooking the bond market and waking up the bond vigilantes from their slumber," said Kathleen Brooks, research director at XTB. Brooks added that axing Reeves would be "a strange choice" from a market perspective. Oil prices jumped about three percent as analysts cited a revived chance of fighting between Iran and Israel. On June 25, a day after a ceasefire took hold between the two countries, Iranian lawmakers voted overwhelmingly to suspend cooperation with the Vienna-based IAEA. State media confirmed on Wednesday the legislation had now taken effect. Washington, which has been pressing Tehran to resume the negotiations that were interrupted by Israel's military action on June 13, said the Iranian decision was "unacceptable." "We'll use the word unacceptable, that Iran chose to suspend cooperation with the IAEA at a time when it has a window of opportunity to reverse course and choose a path of peace and prosperity," State Department spokeswoman Tammy Bruce said. - Key figures at around 2040 GMT - New York - Dow: FLAT at 44,484.42 (close) New York - S&P 500: UP 0.5 percent at 6,227.42 (close) New York - Nasdaq: UP 0.9 percent at 20,393.13 (close) London - FTSE 100: DOWN 0.1 percent at 8,774.69 (close) Paris - CAC 40: UP 1.0 percent at 7,738.42 (close) Frankfurt - DAX: UP 0.5 percent at 23,790.11 (close) Tokyo - Nikkei 225: DOWN 0.6 percent at 39,762.48 (close) Hong Kong - Hang Seng Index: UP 0.6 percent at 24,221.41 (close) Shanghai - Composite: DOWN 0.1 percent at 3,454.79 (close) Euro/dollar: DOWN at $1.1801 from $1.1806 on Tuesday Pound/dollar: DOWN at $1.3634 from $1.3746 Dollar/yen: UP at 143.65 yen from 143.42 yen Euro/pound: UP at 86.52 pence from 85.88 pence Brent North Sea Crude: UP 3.0 percent at $69.11 per barrel West Texas Intermediate: UP 3.1 percent at $67.45 per barrel burs-jmb/acb
