Latest news with #tarifftruce
Yahoo
7 days ago
- Business
- Yahoo
Wall St futures steady as investors brace for crucial inflation data
(Reuters) -U.S. stock index futures were trading flat on Tuesday, as caution prevailed ahead of a key inflation report that could sway expectations over the Federal Reserve's next monetary policy move. There was also some relief that the U.S. and China extended their tariff truce until November 10, staving off triple-digit duties on each other's goods. The focus is now on the impact of trade uncertainty on inflation, which has complicated the Fed's decision on interest-rate cuts even as U.S. companies look to pass on higher cost to consumers. A Labor Department report at 8:30 a.m. ET is expected to show prices increased moderately in July, but economists are anticipating a measure of underlying inflation to reflect its largest gain in six months. The report could help gauge the Fed's move when it meets in September, with traders now pricing an 88% chance of a 25 basis points interest-rate cut, according to data compiled by LSEG. "This report will be an important one for the Fed, in part because of the unexpectedly weak jobs report earlier this month," said Jim Reid, global head of macro and thematic research at Deutsche Bank, said in a note. "A downside surprise in today's CPI print would strengthen rate cut expectations, whereas an in-line or stronger print would require further data to provide clarity on that." The data will come at a time when there are growing concerns over the quality of economic data, weeks after President Donald Trump fired the head of the Bureau of Labor Statistics following downward revisions to previous months' nonfarm payrolls counts. At 05:37 a.m. ET, Dow E-minis were up 54 points, or 0.12%, S&P 500 E-minis were up 3.5 points, or 0.05% and Nasdaq 100 E-minis were up 5.25 points, or 0.02%. Tuesday's data could also test a rally in U.S. stocks that have touched record highs, boosted by better-than-expected earnings from technology majors, a detente between the U.S. and its top trade partners and on expectations of rate cuts. Markets are monitoring developments around Trump's nominee E.J. Antoni to the Bureau of Labor Statistics commissioner post and potential candidates for the Fed's top job. Among single stocks, Intel rose 3.3% in premarket trading as Trump praised CEO Lip-Bu Tan following their meeting on Monday, days after seeking Tan's resignation. Palo Alto Networks gained 1.8% after brokerage Piper Sandler raised its rating on the cybersecurity stock to 'overweight' from 'neutral'. Hanesbrands soared 27.3% after a report said Canada's Gildan Activewear is nearing a deal to acquire the U.S. innerwear-maker for about $5 billion, including debt. U.S.-listed shares of On Holding climbed 10.7% after the sportswear maker raised its annual sales forecast. Earnings reports from Venture Global and Circle Internet are also due before the bell. Sign in to access your portfolio
Malay Mail
7 days ago
- Business
- Malay Mail
Bursa rides US–China tariff truce, FBM KLCI ends higher at 1,567.90
KUALA LUMPUR, Aug 12 — Bursa Malaysia extended its upward momentum to close higher on Tuesday, boosted by news of the United States' (US) decision to extend its 90-day tariff truce with China until Nov 10, which lifted market sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.66 points, or 0.30 per cent, to close at 1,567.90 from yesterday's close of 1,563.24. The benchmark index opened 1.41 points lower at 1,561.83, marking its day's low, and subsequently hit a high of 1,572.97 in early trade. The broader market was positive, with advancers leading decliners 513 to 477, while 507 counters were unchanged, 1,024 untraded and eight suspended. Turnover edged down to 2.53 billion units worth RM2.15 billion from 2.54 billion units worth RM2.20 billion yesterday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said major Asian indices also trended positively as investors welcomed news that the US and China had agreed on Monday to extend their tariff truce by 90 days, avoiding steep duties that could have disrupted trade flows. 'The deal maintains existing US tariffs at 30 per cent and Chinese tariffs at 10 per cent, providing additional time for negotiations and lifting investor sentiment across the region,' he told Bernama. Meanwhile, he said market sentiment was further boosted by optimism over easing geopolitical tensions, as US President Donald Trump and Russian President Vladimir Putin are set to meet in Alaska on Friday to discuss the war in Ukraine. Back home, Thong said the benchmark index closed at 1,567.90, edging above the key 1,565 resistance, and a clear breakout above this threshold will set the stage for further gains. 'As such, our weekly FBM KLCI target remains at the 1,550-1,580 range,' he added. Traders are also awaiting key US inflation data, which could signal the Federal Reserve's next policy move. The US consumer price index (CPI) report, due for release tonight, is expected to show an increase, with consensus estimates placing headline CPI at 2.8 per cent and core CPI at 3.0 per cent for July — up from 2.7 per cent and 2.9 per cent, respectively, in June. Among the heavyweights, Maybank added 6.0 sen to RM9.71, CIMB perked up 7.0 sen to RM7.01, while Tenaga Nasional eased 8.0 sen to RM13.58, IHH Healthcare slipped 14 sen to RM6.82, and Public Bank was flat at RM4.40. Of the most active counters, Classita rose half-a-sen to 9.5 sen, NexG gained 2.5 sen to 40 sen, while Zetrix AI decreased 1.5 sen to 88 sen, Tanco trimmed by 2.0 sen to 72.5 sen, and TWL was flat at 2.5 sen. Across the broader market, the FBM Emas Index increased 28.37 points to 11,675.50, the FBMT 100 Index advanced 26.46 points to 11,456.18, the FBM Emas Shariah Index edged up 17.71 points to 11,665.38, the FBM ACE Index climbed 17.92 points to 4,638.14, and the FBM 70 Index rose 5.0 points to 16,600.64. By sector, the Financial Services Index increased 86.82 points to 17,814.65, the Industrial Products and Services Index added 1.28 points to 160.06, the Plantation Index surged 67.73 points to 7,531.81, and the Energy Index put on 3.02 points to 738.38. The Main Market volume improved to 1.56 billion units valued at RM1.95 billion from Monday's 1.52 billion units valued at RM2.01 billion. Warrants turnover declined to 707.18 million units worth RM92.44 million from 732.96 million units worth RM90.85 million previously. The ACE Market volume decreased to 251.24 million units worth RM106.41 million from 279.82 million units worth RM90.63 million yesterday. Consumer products and services counters accounted for 432.48 million shares traded on the Main Market; industrial products and services (187.12 million), construction (88.88 million), technology (270.13 million), financial services (78.73 million), property (206.67 million), plantation (14.81 million), REITs (21.93 million), closed-end fund (5,500), energy (96.50 million), healthcare (81.98 million), telecommunications and media (25.96 million), transportation and logistics (21.36 million), utilities (36.66 million), and business trusts (184,600). — Bernama
CNA
7 days ago
- Business
- CNA
Markets boosted by China-US truce extension, inflation in focus
HONG KONG: Stock markets mostly rose on Tuesday (Aug 12), with Tokyo hitting a record, as investors welcomed the extension of a China-United States tariff truce but looked ahead apprehensively to the release of key US inflation data later in the day. US President Donald Trump's widely expected trade announcement avoids the reimposition of sky-high levies and allows officials from Washington and Beijing to continue talking into November to settle their standoff. In an executive order, the White House reiterated its position that there are "large and persistent annual US goods trade deficits" and they "constitute an unusual and extraordinary threat to the national security and economy of the United States". However, William Yang, an analyst at the International Crisis Group, said: "Beijing will be happy to keep the US-China negotiation going, but it is unlikely to make concessions." With the president's tariffs set and talks with various trading partners ongoing, markets are now turning their focus back towards the possible economic outlook and the impact of Trump's trade war. First up is the US consumer price index (CPI) later in the day, which could play a major role in the Federal Reserve's decision-making with regard to interest rates. Bets on a cut have ramped up in recent weeks owing to signs that the world's number one economy is showing signs of slowing, with figures indicating that the labour market softened considerably in the past three months. Expectations are for CPI to come slightly above June's reading, but analysts warned investors were walking a fine line with a forecast-topping print likely to dent rate cut hopes and a too-weak read stoking economic fears. "I'd imagine, for equities at least, given the comfort blanket that the surge in September cut expectations has provided recently, that a hotter-than-expected figure could see some fairly sizeable downside," said Pepperstone's Michael Brown. While there have been warnings that the tariffs will stoke inflation, National Australia Bank's Ray Attrill said: "The larger tariff impacts ... probably will not be felt until August or September, with firms now only gaining some clarity on the degree of reciprocal tariffs. "The current profit reporting season has noted firms on the whole were waiting for greater clarity on final tariff rates before adjusting prices." Also on the agenda this week are wholesale prices and retail sales, with the Fed's favoured gauge of inflation at the end of the month. Bank officials are then set to make their decision in the middle of September. Forecasts are for a reduction at that gathering and one more before the end of the year. Asia's markets rally was led by Tokyo's Nikkei 225, which briefly soared almost three per cent to hit a record high of 42,999.71 on renewed optimism over the Japanese economy after officials reached a deal to avert the worst of Trump's tariffs. IwaiCosmo Securities said in a market commentary that "easing tensions over US-China trade talks, as well as speculation about the US's imminent lowering of (interest) rates" had helped boost investors' hopes about the recovery of Japanese companies. The gains came as traders returned to work after a long weekend. Hong Kong, Shanghai, Taipei, Mumbai, Jakarta and Manila also advanced with London, Paris and Frankfurt.
Free Malaysia Today
12-08-2025
- Business
- Free Malaysia Today
Asian stocks mostly higher as tariff truce supports sentiment
Japan's Nikkei hit a record high, rising 2% as markets reopened after a public holiday, following global index gains. (AP pic) SINGAPORE : Most Asian stocks rose on Tuesday, buoyed by an extension of a tariff truce between the world's two largest economies, while Japanese shares hit an all-time peak, powered by tech shares after returning from a long weekend break. US President Donald Trump extended a tariff truce with China by another 90 days on Monday, staving off triple-digit duties on Chinese goods, a move that was largely expected by investors and markets. Investor sentiment in recent weeks has been supported by expectations of rate cuts by the US Federal Reserve, resilient US corporate earnings as well as clarity on US trade levies on trading partners. Japan's Nikkei climbed to a record high and was last up 2% as the country's markets reopened after a public holiday on Monday, tracking other global indices this year. Australia's benchmark index also hit a record high, ahead of a monetary policy meeting at which the central bank is widely expected to cut interest rates. That left MSCI's broadest index of Asia-Pacific shares outside Japan a tad higher. China's blue-chip stocks were flat while Hong Kong's Hang Seng index eased 0.1% in early trading. Markets have held modest ranges in recent weeks, waiting to see whether the world's two largest economies can agree on a durable trade deal or if global supply chains will again be upended by the return of steep import levies. The US-China tariff truce extension 'preserves the status quo for now, so no immediate implications for investment markets,' said Shane Oliver, chief economist and head of investment strategy at AMP in Sydney. The US and China have engaged in a tit-for-tat tariff duel throughout the year, culminating in trade talks in Geneva, London and Stockholm since May that focused on bringing retaliatory tariffs down from triple-digit levels. The latest truce extension clears the way for investors to focus on an action-packed week dominated by US inflation data, a central bank policy decision in Australia and the first summit between US and Russian leaders since June 2021. Traders are pricing in a 25 basis points rate cut later on Tuesday from the RBA with another cut expected by November. Investor attention will be on comments and forecasts from the central bank. 'The uncertainties are around its guidance, in particular whether it still sees further scope to cut rates and whether it will remain gradual and measured,' said AMP's Oliver. Globally, the spotlight will be on the release of US consumer price inflation data later on Tuesday. Economists polled by Reuters have forecast that month-on-month core CPI edged up 0.3% in July, faster than the 0.2% in the previous month. 'CPI will be a key test for market tone. Softer data could give small-caps a lift, but for now, mega-caps remain firmly in control,' said Marc Velan, head of investments at Lucerne Investment Management. An upside surprise on inflation may also add caution to market expectations of rate cuts by the Federal Reserve this year. Investors are currently pricing in at least two rate cuts from the Fed in 2025 while JP Morgan expects the Fed to deliver four successive rate cuts starting in September. In commodities, gold prices were last at US$3,354, having dropped nearly 1.6% on Monday after Trump said tariffs will not be placed on imported gold bars. Oil prices were steady ahead of the Aug 15 meeting between Trump and Russian President Vladimir Putin, aimed at negotiating an end to the war in Ukraine. The talks follow increased US pressure on Russia, raising the prospect of penalties on Moscow if a peace deal is not reached. 'The market is not pricing in significant outcomes from the meeting, but any shift in geopolitical tone could have marginal impact, particularly for commodities and certain emerging market assets,' said Lucerne's Velan. Currencies were mostly calm in early trading, with the dollar steady against major peers the euro and the yen. Cryptocurrencies bitcoin and ether were a tad lower after rallying in the previous session.
Bloomberg
31-07-2025
- Business
- Bloomberg
High-profile China Stimulus Unlikely This Year: ANZ
High-profile stimulus from Beijing is unlikely this year with authorities instead expected to focus on refining existing support measures, ANZ's Raymond Yeung tells Bloomberg TV. Yeung speaks after China announces its factory activity had unexpectedly deteriorated in July to a six-month low despite a tariff truce with the US. (Source: Bloomberg)
