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Globe and Mail
5 days ago
- Business
- Globe and Mail
Premarket: Global shares mostly rise after Wall Street's rally stalls on U.S. economic data
Global shares were mostly higher Thursday, after Wall Street's big recent rally lost some momentum following a pair of potentially discouraging reports on the American economy. France's CAC 40 added 0.3% in early trading to 7,826.43, while the German DAX rose 0.5% to 24,378.64. Britain's FTSE 100 rose 0.1% to 8,811.29. The future for the Dow Jones Industrial Average was up 0.2%. The future for the S&P 500 gained nearly 0.1%. In Asian trading, Japan's benchmark Nikkei 225 shed 0.5% to finish at 37,554.49, while Australia's S&P/ASX 200 was little changed at 8,538.90. In South Korea, the Kospi jumped 1.5% to 2,812.05 after the country's new president and leading liberal politician Lee Jae-myung began his term, vowing to restart talks with North Korea and beef up a trilateral partnership with the U.S. and Japan. Hong Kong's Hang Seng gained 1.1% to 23,906.97, while the Shanghai Composite rose 0.21% to 3,384.10. One report released earlier this week said that activity contracted for U.S. 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 ADP suggested U.S. employers outside of 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 U.S. Labor Department, which is one of Wall Street's most anticipated data releases each month. So far, the U.S. 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. 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 led Trump to urge Fed Chair Jerome Powell to deliver cuts to rates more quickly. ''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. Investors are hoping for deals that will lower Trump's tariffs. But nothing is assured. The European Union's top trade negotiator, Maro efovi, met Wednesday with his American counterpart, U.S. Trade Representative Jamieson Greer, on the sidelines of a meeting of the Organisation for Economic Cooperation and Development. In other dealings early Thursday, benchmark U.S. crude fell 14 cents to $62.71 a barrel. Brent crude, the international standard, edged down 4 cents to $64.82 a barrel. The U.S. dollar rose to 143.27 Japanese yen from 142.78 yen. The euro cost $1.1413, little changed from $1.1418. The Associated Press
CTV News
5 days ago
- Business
- CTV News
Global shares mostly rise after Wall Street's rally stalls on U.S. economic data
A dealer walks past near the screens showing the foreign exchange rates at a dealing room of Hana Bank in Seoul, South Korea, Thursday, June 5, 2025. (AP Photo/Lee Jin-man) TOKYO — Global shares were mostly higher Thursday, after Wall Street's big recent rally lost some momentum following a pair of potentially discouraging reports on the American economy. France's CAC 40 added 0.3% in early trading to 7,826.43, while the German DAX rose 0.5% to 24,378.64. Britain's FTSE 100 rose 0.1% to 8,811.29. The future for the Dow Jones Industrial Average was up 0.2%. The future for the S&P 500 gained nearly 0.1%. In Asian trading, Japan's benchmark Nikkei 225 shed 0.5% to finish at 37,554.49, while Australia's S&P/ASX 200 was little changed at 8,538.90. In South Korea, the Kospi jumped 1.5% to 2,812.05 after the country's new president and leading liberal politician Lee Jae-myung began his term, vowing to restart talks with North Korea and beef up a trilateral partnership with the U.S. and Japan. Hong Kong's Hang Seng gained 1.1% to 23,906.97, while the Shanghai Composite rose 0.21% to 3,384.10. One report released earlier this week said that activity contracted for U.S. 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 ADP suggested U.S. employers outside of 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 U.S. Labor Department, which is one of Wall Street's most anticipated data releases each month. So far, the U.S. 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. 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 led Trump to urge Fed Chair Jerome Powell to deliver cuts to rates more quickly. ''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. Investors are hoping for deals that will lower Trump's tariffs. But nothing is assured. The European Union's top trade negotiator, Maroš Šefčovič, met Wednesday with his American counterpart, U.S. Trade Representative Jamieson Greer, on the sidelines of a meeting of the Organisation for Economic Cooperation and Development. In other dealings early Thursday, benchmark U.S. crude fell 14 cents to $62.71 a barrel. Brent crude, the international standard, edged down 4 cents to $64.82 a barrel. The U.S. dollar rose to 143.27 Japanese yen from 142.78 yen. The euro cost $1.1413, little changed from $1.1418. Yuri Kageyama, The Associated Press
CTV News
22-05-2025
- Business
- CTV News
Global shares slip as investors register their worries about U.S. debt
A currency trader works at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, May 22, 2025. (AP Photo/Ahn Young-joon) TOKYO — Global shares fell Thursday as investors reacted to growing worries over surging U.S. debt. France's CAC 40 slipped 0.8 per cent to 7,849.87, while Germany's DAX declined 0.7 per cent to 23,962.00. Britain's FTSE 100 fell 0.7 per cent to 8,728.84. The future for the Dow Jones Industrial Average inched 0.1 per cent lower while that for the S&P 500 gained nearly 0.2 per cent. In Asian trading, Japan's benchmark Nikkei 225 shed 0.8 per cent to finish at 36,985.87. Hong Kong's Hang Seng lost 1.2 per cent to 23,544.31, while the Shanghai Composite edged down 0.2 per cent to 3,380.19. Australia's S&P/ASX 200 slipped 0.5 per cent to 8,348.70. South Korea's Kospi dropped 1.2 per cent to 2,593.67. Shares skidded Wednesday on Wall Street after the U.S. government released the results for its latest auction of 20-year bonds. Such bonds help to pay government bills and the auction had to offer a yield of more than 5% to attract enough buyers. The S&P 500 fell 1.6 per cent for a second straight drop after breaking a six-day winning streak. The Dow lost 1.9 per cent, while the Nasdaq composite sank 1.4 per cent. Rising yields for U.S. Treasury bonds are a canary in the coal mine, Stephen Innes of SPI Asset Management said in a commentary. 'The U.S. still has the biggest markets, the deepest liquidity, and the dollar's inertia working in its favor. But even inertia can't outrun compound interest and structural deficits forever,' he wrote. The declining U.S. dollar also weighed on Asian regional markets, according to some analysts, because some Asian nations have significant holdings in dollars. It also affects Asian exporters, such as Japanese automakers and electronics companies, by reducing the value of their overseas earnings when they are converted into yen. In currency trading, the U.S. dollar fell to 143.04 Japanese yen from 143.68 yen. It had been trading at 150 yen levels a year ago. The euro stood unchanged at US$1.1330. Investors remain worried over U.S. President Donald Trump's actions, including tariff policies that directly affect Asian companies and decisions on major legislation such as a funding bill now in Congress. 'U.S. equities slumped in a 'Sell America' move as things turned ugly on Trump's 'big, beautiful tax bill.' ' said Tan Jing Yi, analyst at Mizuho Bank in Singapore. U.S. stocks had recently recovered most of their steep losses from earlier in the year after Trump delayed or rolled back many of his stiff tariffs. Investors are hopeful that Trump will lower his tariffs more permanently after reaching trade deals with other countries. In energy trading, benchmark U.S. crude lost 55 cents to $61.02 a barrel. Brent crude, the international standard, fell 61 cents to $64.30 a barrel. Yuri Kageyama, The Associated Press
CNA
12-05-2025
- Business
- CNA
Stocks, dollar surge as US and China agree 90-day tariff relief
NEW YORK: Global shares rallied, while gold and safe-haven currencies slumped against a resurgent dollar on Monday (May 12) as the US and China agreed to temporarily slash harsh reciprocal tariffs and cooperate to avoid rupturing the global economy. Following weekend talks in Geneva, both sides agreed that the US would drop levies on Chinese imports from 145 per cent to 30 per cent during a 90-day negotiation period and China would cut duties from 125 per cent to 10 per cent. Wall Street stocks made significant gains, with the S&P 500 index jumping 3.3 per cent and the tech-focused Nasdaq Composite advancing 4.4 per cent. In a joint statement on Monday, Washington and Beijing said they recognised the importance of their bilateral trade relationship to both countries and the global economy, in language that analysts said had brightened the market outlook. An index tracking the dollar against other major currencies rose further from last month's three-year trough with an almost 1.17 per cent gain, while Japan's yen fell 2.1 per cent to 148.39 per dollar. The retreat from safe-haven assets pushed Switzerland's franc 1.8 per cent lower on the day, in a jolt of relief for Swiss exporters and the nation's central bank. Spot gold prices, which hit an all-time high of US$3,500 last month and often move inversely to the dollar, fell 2.7 per cent to US$3,234.8 an ounce. "This is a textbook recovery after the market's waterfall declines," said Gina Bolvin, the president of Bolvin Wealth Management Group in Boston. "The market is blowing through resistance levels and if it sticks, this is a big 'WIN' for Trump, for stocks and for investors." The euro, which surged in April as investors questioned the dollar's long-held status as the world's reserve currency, was 1.4 per cent lower at US$1.1090. "RELIEF" Kit Juckes, chief FX strategist at Societe Generale, said the tariff pause was a "substantial relief" for the US and China. With tariff anxiety having already caused some Chinese exporters to consider their futures, data this weekend showed the nation's factory-gate prices had dropped by the most in six months in April. Trump's erratic trade policies had also sparked fears over US corporate earnings, with investors having entered this week nervous about an impending update from retail giant Walmart after a slew of US multi-nationals pulled their forecasts. On Monday, however, commodities traders rushed to reassess the recessionary risks of tariff uncertainty, with oil traders pricing Brent crude for delivery next month almost 1.9 per cent higher at US$65.10 a barrel, up from around US$57 a week ago. Europe's regional STOXX 600 was last trading 1.2 per cent higher, and Hong Kong's Hang Seng Index ended the day with an almost 3 per cent gain. FURTHER TO RUN? While Trump's Apr 2 tariff announcement initially caused world stocks to drop sharply, MSCI's index of global shares, which is US-dominated, was trading back at levels last seen in late March and was up 2 per cent. Some analysts and investors warned, however, that this was not the end of unpredictable trade talks between the White House and Beijing and that any relief may soon be overshadowed by data showing the US economy had slowed. Sheldon MacDonald, CIO at British asset manager Marlborough, said that even if the US maintained 30 per cent tariffs on China, this was still "negative" for growth, with "no all-clear on recession fears just yet". The 10-year US Treasury yield rose almost 10 basis points on the day, as the price of the government debt fell, with almost identical moves for benchmark German Bunds and British gilts. But analysts at Citi cautioned Trump supporters may not support a compromise with China and recalled the short-lived trade truce during his first presidency in 2018-2019, when both nations agreed a 90-day tariff halt before tensions resumed. "It's going to take some time to get more clarity," said John Praveen, managing director co-chief investment officer at Paleo Leon in New Jersey.
