Latest news with #WayneCole
Yahoo
3 days ago
- Business
- Yahoo
Morning Bid: Markets hope Trump tariffs stay 'unlawful'
(Reuters) - A look at the day ahead in European and global markets from Wayne Cole Who knew the three judges at the rather obscure United States Court of International Trade had the power to spark a rally in global stock markets and shove the dollar higher against its safe-haven peers? Early in the Asian trading day, news broke the court had declared President Donald Trump's April 2 tariffs to be "invalid as contrary to law", sending risk assets surging. And this wasn't a narrow judgment. All three judges - one appointed by Trump, one by Obama and one by Reagan - agreed Trump had overstepped his authority by declaring an emergency to slap tariffs on the rest of the world. It's worth a read if you have the time. The White House quickly said it would appeal to the U.S. Court of Appeals for the Federal Circuit in Washington, and will surely go to the Supreme Court if needed. Higher courts are usually reluctant to overturn unanimous rulings like this one, so this could be an extended process. In the meantime, the tariffs are up in the air and any country negotiating with the White House on trade will be tempted to stall. The chance of quick "beautiful deals" is out the window. With Trump's ability to arbitrarily declare emergencies in doubt, investors are hoping policy-making will be a little less chaotic. S&P 500 futures jumped 1.6% while Nasdaq futures are up around 2%, having already got a boost from Nvidia earnings guidance that lifted its shares 4.4% after the bell. Most Asian markets and European stock futures are up 1% or more, while the dollar gained on the Swiss franc, euro and yen. Treasury yields are up just a little, and Fed fund futures have only slightly pared back expectations for rate cuts, given a lasting block of the April 2 tariffs has mixed implications. On the one hand it would brighten the economic outlook and greatly lessen the risk of recession, but it would also mute the coming inflationary pulse. And it was inflation that was very much on the minds of Fed officials in their last meeting. Oh, and in secondary news it seems Elon Musk is no longer on the government payroll. Key developments that could influence markets on Thursday: - US second reading on GDP, weekly jobless claims - Bank of England Gov Bailey speaks - Fed speakers include Bank of Richmond President Barkin, Fed Bank of Chicago head Goolsbee, Bank of San Francisco head May and Bank of Dallas head Logan. (By Wayne Cole; Editing by Edmund Klamann) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Morning Bid: Markets hope Trump tariffs stay 'unlawful'
(Reuters) - A look at the day ahead in European and global markets from Wayne Cole Who knew the three judges at the rather obscure United States Court of International Trade had the power to spark a rally in global stock markets and shove the dollar higher against its safe-haven peers? Early in the Asian trading day, news broke the court had declared President Donald Trump's April 2 tariffs to be "invalid as contrary to law", sending risk assets surging. And this wasn't a narrow judgment. All three judges - one appointed by Trump, one by Obama and one by Reagan - agreed Trump had overstepped his authority by declaring an emergency to slap tariffs on the rest of the world. It's worth a read if you have the time. The White House quickly said it would appeal to the U.S. Court of Appeals for the Federal Circuit in Washington, and will surely go to the Supreme Court if needed. Higher courts are usually reluctant to overturn unanimous rulings like this one, so this could be an extended process. In the meantime, the tariffs are up in the air and any country negotiating with the White House on trade will be tempted to stall. The chance of quick "beautiful deals" is out the window. With Trump's ability to arbitrarily declare emergencies in doubt, investors are hoping policy-making will be a little less chaotic. S&P 500 futures jumped 1.6% while Nasdaq futures are up around 2%, having already got a boost from Nvidia earnings guidance that lifted its shares 4.4% after the bell. Most Asian markets and European stock futures are up 1% or more, while the dollar gained on the Swiss franc, euro and yen. Treasury yields are up just a little, and Fed fund futures have only slightly pared back expectations for rate cuts, given a lasting block of the April 2 tariffs has mixed implications. On the one hand it would brighten the economic outlook and greatly lessen the risk of recession, but it would also mute the coming inflationary pulse. And it was inflation that was very much on the minds of Fed officials in their last meeting. Oh, and in secondary news it seems Elon Musk is no longer on the government payroll. Key developments that could influence markets on Thursday: - US second reading on GDP, weekly jobless claims - Bank of England Gov Bailey speaks - Fed speakers include Bank of Richmond President Barkin, Fed Bank of Chicago head Goolsbee, Bank of San Francisco head May and Bank of Dallas head Logan. (By Wayne Cole; Editing by Edmund Klamann)
Daily Maverick
3 days ago
- Business
- Daily Maverick
Stocks, dollar rally as Trump tariffs hit court hurdle
S&P 500 futures climb 1.6%, Nikkei adds 1.7% US court blocks April 2 tariffs, White House appeals Dollar rises on safe haven currencies, gold slips Nvidia up after hours on earnings relief By Wayne Cole SYDNEY, May 29 (Reuters) – Asian shares and Wall Street futures jumped in Asia on Thursday after a US federal court blocked President Donald Trump's 'Liberation Day' tariffs from going into effect, sending the dollar up on safe haven currencies. The little-known Manhattan-based Court of International Trade ruled that Trump overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy. The White House quickly appealed the decision, and could take it all the way to the Supreme Court if needed, but in the meantime it offered some hope that Trump might back away from the highest tariff levels he had threatened. 'It's long been suggested that the emergency powers Trump has used to implement tariffs were unconstitutional and that the power to enact tariffs sits with Congress,' said Kyle Rodda, a senior financial analyst at 'Should the markets get their way, the courts could delay and then deny these tariffs, removing one massive risk and undoubtedly stoking risk appetite.' It could also encourage US trading partners to stall any trade negotiations they are having with the White House while waiting to see how the case is resolved. 'The ruling will obviously throw into disarray the administration's push to quickly seal trade 'deals' during the 90-day pause from tariffs that have now been declared to be illegal,' said Paul Ashworth, chief North America economist at Capital Economics. 'Other countries will wait and see whether a higher court is willing to reverse this ruling.' Investors reacted by embracing equities and Japan's Nikkei quickly rose 1.7%, while South Korean shares gained 1.2% to a nine-month top. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.3%, while Chinese blue chips firmed 0.5%. The ripples were felt worldwide as EUROSTOXX 50 futures rose 1.1%, while FTSE futures gained 0.7% and DAX futures 0.9%. NVIDIA RELIEVES S&P 500 futures climbed 1.6%, while Nasdaq futures rose 1.9%. The latter had already been lifted by relief over earnings from Nvidia, which beat sales estimates. The chipmaker and AI darling also projected strong revenues for the current quarter, sending its shares up 4.4% after hours. That news helped offset a Financial Times report that the White House had ordered US firms that offer software used to design semiconductors to stop selling their services to Chinese groups. The New York Times separately reported the United States had suspended some sales to China of critical US technologies, including those related to jet engines, semiconductors and certain chemicals. The news of the court decision hit traditional safe haven currencies, lifting the dollar 0.7% on the Swiss franc to 0.8327. It gained 0.7% on the Japanese yen to 145.86 yen, while the euro dipped 0.4% to $1.1245. Yields on 10-year Treasuries rose 3 basis points to 4.51% and markets further shaved the chance of a Federal Reserve rate cut anytime soon. Minutes of the last Fed meeting showed 'almost all participants commented on the risk that inflation could prove to be more persistent than expected' due to Trump's tariffs. A rate cut in July is now seen as just a 22% chance, while September has come into around 60% having been more than fully priced a month ago. In commodity markets, gold slipped 0.9% to $3,259 an ounce. Oil prices extended a rally begun on supply concerns as OPEC+ agreed to leave their output policy unchanged and as the US barred Chevron from exporting Venezuelan crude. Brent rose 66 cents to $65.56 a barrel, while US crude firmed 70 cents to $62.54 per barrel.
Yahoo
3 days ago
- Business
- Yahoo
Stocks rally in Asia as Trump tariffs hit court hurdle
By Wayne Cole SYDNEY (Reuters) - Asian shares and Wall Street futures climbed in Asia on Thursday after a U.S. federal court blocked President Donald Trump's "Liberation Day" tariffs from going into effect, sending the dollar up on safe haven currencies. The Manhattan-based Court of International Trade ruled that Trump overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy. The White House quickly appealed the decision, and could take it all the way to the Supreme Court if needed, but in the meantime it offered some hope that Trump might back away from the highest tariff levels he had threatened. "We're just trying to work out what it might mean basically but obviously the market is doing a knee-jerk reaction," said Ray Attrill, head of FX strategy at NAB. "So this may be an absolute storm in a teacup or potentially something more significant." Investors reacted by embracing risk assets and Japan's Nikkei quickly rose 1%, while South Korea's shares added 0.8%. MSCI's broadest index of Asia-Pacific shares outside Japan edged up, awaiting the opening of Chinese markets. S&P 500 futures climbed 1.5%, while Nasdaq futures rose 1.8%. The latter had already been lifted by relief over earnings from Nvidia, which beat sales estimates. The chipmaker and AI darling also projected strong revenues for the current quarter, sending its shares up 4.4% after hours. That news helped offset a Financial Times report that the White House had ordered U.S. firms that offer software used to design semiconductors to stop selling their services to Chinese groups. The New York Times separately reported the United States had suspended some sales to China of critical U.S. technologies, including those related to jet engines, semiconductors and certain chemicals. PUSHING OUT RATE CUTS The news of the court decision hit traditional safe havens, lifting the dollar 0.8% on the Swiss franc to 0.336. It gained 0.6% on the Japanese yen to 145.76 yen, while the euro dipped 0.5% to $1.1230. Yields on 10-year Treasuries rose 3 basis points to 4.51% and markets further shaved the chance of a Federal Reserve rate cut anytime soon. Minutes of the last Fed meeting showed "almost all participants commented on the risk that inflation could prove to be more persistent than expected" due to Trump's tariffs. A rate cut in July is now seen as just a 22% chance, while September has come into around 60% having been more than fully priced a month ago. In commodity markets, gold slipped 0.9% to $3,259 an ounce. [GOL/] Oil prices extended a rally begun on supply concerns as OPEC+ agreed to leave their output policy unchanged and as the U.S. barred Chevron from exporting Venezuelan crude. [O/R] U.S. crude firmed 47 cents to $62.31 per barrel. (Additional reporting by Stella Qiu in Sydney; Editing by Sam Holmes)
Yahoo
20-05-2025
- Business
- Yahoo
Australia dollar slips as RBA cuts rates, warns on global outlook
By Wayne Cole SYDNEY (Reuters) -The Australian dollar slipped on Tuesday after the country's central bank cut interest rates as expected while highlighting the economic risks from a global trade war, supporting market wagers for further easing ahead. The Reserve Bank of Australia trimmed its cash rate by 25 basis points to a two-year low of 3.85%, citing progress in reducing inflation and global uncertainty caused by U.S. tariffs. The easing was fully priced by markets since the levies were first announced in early April. Investors were still looking for at least two more such cuts this year to take rates to between 3.10% and 3.35%, with the RBA itself noting its new economic forecasts had assumed a total reduction of around 85 basis points from 4.10%. "The RBA delivered a dovish rate cut, weighed down by a cocktail of global and domestic uncertainties," said Saxo Chief Investment Strategist Charu Chanana. "With the RBA sounding increasingly uneasy, the path of least resistance for the Aussie may remain lower, especially if domestic data softens further or global risks flare up again." The Aussie fell 0.5% to $0.6428, unwinding some of a 0.8% rally the previous session as the U.S. dollar suffered in the wake of a Moody's ratings downgrade. Support lies at $0.6388 and $0.6358, with resistance at $0.6500 and $0.6515. The kiwi dollar dipped 0.2% to $0.5919, having gained 0.9% overnight. It has support at $0.5850, with resistance around $0.5969 and $0.6022. Three-year Australian bond futures climbed 9 ticks at 96.440, while 10-year yields eased 5 basis points to 4.455%. The RBA also released new forecasts for the economy that showed it expected inflation to be slightly lower, and unemployment higher, even assuming rate cuts of 85 basis points. Core inflation has cooled to a three-year low of 2.9%, taking it back into the RBA's target range of 2% to 3% and a long way from the peak of 6.8% hit in late 2022. Markets are also wagering the Reserve Bank of New Zealand will further cut its cash rate when it meets on May 28. The central bank is expected to trim by a quarter point to 3.25% and, having already slashed rates by a total of 200 basis points, is likely nearing the end of the easing cycle. Investors have rates bottoming at 3.0% or 2.85% by August and remaining there for some time. Sign in to access your portfolio
