Latest news with #trade tensions
Asharq Al-Awsat
a day ago
- Business
- Asharq Al-Awsat
Gold Holds Ground as Jobs Data offsets Safe-haven Demand
Gold prices held steady on Wednesday as stronger US jobs data countered safe-haven demand driven by simmering trade tensions between the US and China. Spot gold was steady at $3,349.19 an ounce, as of 1145 GMT. US gold futures were unchanged at $3,373.10. "US labor data gave markets a bit of relief yesterday, causing a small dip in gold prices. However, tensions between the US and China are still keeping risks high and gold prices supported," said Zain Vawda, market analyst at MarketPulse by OANDA. Job openings in the US rose in April, though layoffs surged to their highest level in nine months, economic data showed, hinting at softening labor market conditions, Reuters reported. Donald Trump said on Wednesday that Chinese President Xi Jinping is tough and "extremely hard to make a deal with," days after the US President accused China of violating an agreement to roll back tariffs and trade restrictions. Washington doubled its tariffs on steel and aluminium imports on Wednesday, the same day the Trump administration expects trading partners to make "best offers" to avoid other punishing import levies from taking effect in early July. The focus will be on Friday's US non-farm payrolls data for more cues on the Federal Reserve's policy path. Federal Reserve's policy path. Fed officials have reiterated their cautious policy stance, citing risks from trade tensions and economic uncertainty. "If the data is stronger than expected, interest rate cut expectations are likely to wane, which would weigh on the gold price," said Commerzbank analyst Carsten Fritsch. "We see gold trading in a range between $3,300 and $3,400 per troy ounce in the short term." Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. Elsewhere, spot silver fell 0.5% to $34.32 an ounce, platinum rose 1.1% to $1,085.50 and palladium lost 0.5% to $1,005.11.
The Independent
2 days ago
- Business
- The Independent
UK growth downgraded as global economy dragged by Trump trade wars
UK economic forecasts have been downgraded for the next two years as trade tensions linked to US President Donald Trump's tariff plans hit the global economy, according to a new report. The Organisation of Economic Cooperation and Development (OECD) has also cut its projections for global growth in 2025 and 2026. Economists from the influential organisation cautioned that the global outlook is 'becoming increasingly challenging'. In the UK, the economy is expected to grow by 1.3% this year, with the OECD cutting its previous forecast of 1.4%. It also reduced its prediction for 2026 from 1.2% in its March report to 1%, blaming the cuts to forecasts on 'heightened trade tensions, tighter financial conditions, and elevated uncertainty'. The report added: 'Inflationary pressures will initially linger, due to higher import prices and robust wage growth in 2025, but subside over 2026, as spare capacity emerges and the labour market loosens.' The OECD also highlighted that substantial debt payments will continue to weigh on the UK's state finances and 'push up public debt'. It comes despite the Chancellor Rachel Reeves' pledge to reduce the debt burden. The UK economy grew by 0.7% over the first quarter of the year but the OECD highlighted that 'momentum in weakening' as business sentiment deteriorates. Businesses have been affected by heightened uncertainty linked to US tariff plans, which were initially launched at the start of April but have seen certain policies change over the past two months. The OECD said on Tuesday that it expects global economic growth to slow to 2.9% this year and in 2026 from 3.3% in 2024, on the assumption 'that tariff rates as of mid-May are sustained despite ongoing legal challenges'. It highlighted that this slowdown is set to be concentrated in the United States, Canada, Mexico and China.
Bloomberg
3 days ago
- Business
- Bloomberg
Harling: Biggest EM Challenge is Currency Stability
Bonds in Australia and Singapore gained as questions about the appeal of US Treasuries sent investors toward top-rated alternatives. But Emerging-market stocks fell to their lowest level since May 9 as fresh trade tensions between the US and China clouded the global outlook. Victoria Harling, Co-Head of Emerging Market Corporate Debt at Ninety One spoke to Bloomberg's Horizons Middle East and Africa anchor Joumanna Bercetche on the mood in emerging markets. (Source: Bloomberg)
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Stock Market Starts June With Gains
Gains in megacap tech stocks lifted U.S. indexes Monday, overcoming headwinds from another flare-up in trade tensions. Buoyed by the likes of Meta Platforms, which rose 3.6%, and Nvidia, which climbed 1.7%, the S&P 500 ticked up 0.4%. The tech-heavy Nasdaq Composite added 0.7%, while the Dow Jones Industrial Average edged up 0.1%.
Bloomberg
3 days ago
- Business
- Bloomberg
‘Glass Is Broken' on Rare Earth Trade: Garnault's Tobin
Liza Tobin, Garnault Global managing director, says China has "broken the glass" when it comes to restricting the sale of rare earth minerals to the US. Tobin discusses the rising trade tensions impacting tech with Caroline Hyde on 'Bloomberg Technology.' (Source: Bloomberg)
