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Reuters
4 hours ago
- Business
- Reuters
Global stocks steady as investors brace for Fed meeting, tariff deadline
LONDON, July 30 (Reuters) - Global stocks struggled for clear direction ahead of the Federal Reserve's policy announcement later on Wednesday, with investors cautious after two days of trade talks between the U.S. and China concluded without any major breakthroughs. Treasury yields and the dollar were also little changed as the market anticipated the Fed will keep rates on hold despite pressure from the White House to lower borrowing costs. Europe's STOXX 600 (.STOXX), opens new tab was up 0.1%, with blue-chip indexes rising slightly in Frankfurt (.GDAXI), opens new tab and Paris (.FCHI), opens new tab and falling in London (.FTSE), opens new tab. S&P 500 and Nasdaq futures were pointing to a slightly higher open when Wall Street trading gets underway. Early gains for MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab petered out to trade flat. Japan's Nikkei 225 (.N225), opens new tab ended the session little changed. Investors await several central bank decisions, economic reports and corporate earnings over the coming days, as well as U.S. President Donald Trump's August 1 tariff deadline. Although the Federal Reserve is expected to leave interest rates unchanged at the conclusion of its two-day policy meeting later on Wednesday, analysts have predicted some central bank officials who favour lower borrowing costs could voice rare dissent, signalling that a rate cut could happen soon. "I'm not expecting a rate cut," said George Lagarias, chief economist at Forvis Mazars. "They're going to hint a rate cut in September, but they're not going to commit themselves to it." The yield on the benchmark 10-year U.S. Treasury note was flat at 4.324, having briefly dropped to its lowest since July 3 at 4.314%. The two-year yield , which is more sensitive to change in interest rate expectations, was little changed at 3.869%. With the Bank of Japan expected to keep policy unchanged on Thursday, the markets will analyse its comments to gauge when the next rate increase will come after a trade deal between Japan and the U.S. cleared the way for the bank to resume rate hikes. Some of the negotiations with countries seeking to avert Trump's punitive tariffs are expected to continue up to the deadline. India is among those bracing for higher U.S. tariffs - likely between 20% and 25% - on some exports as it holds off on fresh trade concessions ahead of the deadline, two Indian government sources said. Meanwhile, three South Korean cabinet-level officials met with U.S. Commerce Secretary Howard Lutnick in a last-ditch push for a deal. Earnings were mixed on Wednesday. UBS Group (UBSG.S), opens new tab reported profits that exceeded analysts' expectations, while HSBC profits missed estimates as its losses from China mounted. German sportswear maker Adidas ( opens new tab and French luxury group Kering ( opens new tab both flagged that tariffs were having an impact on costs and pricing. U.S. tech megacaps Microsoft (MSFT.O), opens new tab and Meta (META.O), opens new tab are due to report earnings on Wednesday that will set the tone for the rest of the week and the earnings season. "It's been a solid U.S. reporting season so far, but these megacap names need to run it hot and blow the lights out, given the bar to please has been sufficiently raised," said Chris Weston, head of research at Pepperstone. In currency markets, the dollar index , which measures the currency against six others, rose less than 0.1% to 98.986, just below a five-week high of 99.143 reached on Tuesday. The euro was down 0.1% against the dollar. The U.S. currency dropped 0.2% to 148.26 yen . Brent crude futures eased 0.8% to $71.96 a barrel and U.S. crude futures were down 0.8% at $68.68. Spot gold was up 0.1% to $3,327.85 after hitting a 2-1/2 week low on Monday.
Economic Times
5 hours ago
- Business
- Economic Times
European shares fall as investors digest earnings deluge; Adidas sinks
European shares fell on Wednesday, weighed down by bank stocks, as corporate earnings took centre stage ahead of a packed schedule, which includes central bank announcements, key data and the approaching August 1 tariff deadline this week. ADVERTISEMENT German sportswear brand Adidas warned that higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, sending shares tumbling 7% to a near four-month low. Peer JD Sports fell 0.8%. Banks index dipped 0.9% a day after hitting its highest since September 2008. Swiss bank UBS rose 3% after reporting its second-quarter profit more than doubled from last year's, while HSBC Holdings fell 5% on posting first-half pretax profit below estimates. The pan-European STOXX 600 index dropped 0.3% by 0720 GMT. Regional bourses were mixed, with Germany's blue-chip DAX shedding 0.3%, while France's CAC 40 rising 0.1%. Miner Rio Tinto dropped 1.4% after reporting its smallest first-half underlying profit in five years on subdued iron ore prices. The outlook for European corporate health has improved, earnings forecasts showed on Tuesday, after the European Union struck a framework trade deal with the U.S. on Sunday following weeks of negotiations. (You can now subscribe to our ETMarkets WhatsApp channel)
Business Recorder
7 hours ago
- Business
- Business Recorder
European shares fall as investors digest earnings deluge; Adidas sinks
European shares fell on Wednesday, weighed down by bank stocks, as corporate earnings took centre stage ahead of a packed schedule, which includes central bank announcements, key data and the approaching August 1 tariff deadline this week. German sportswear brand Adidas warned that higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, sending shares tumbling 7% to a near four-month low. Peer JD Sports fell 0.8%. Banks index dipped 0.9% a day after hitting its highest since September 2008. Swiss bank UBS rose 3% after reporting its second-quarter profit more than doubled from last year's, while HSBC Holdings fell 5% on posting first-half pretax profit below estimates. The pan-European STOXX 600 index dropped 0.3% by 0720 GMT. Regional bourses were mixed, with Germany's blue-chip DAX shedding 0.3%, while France's CAC 40 rising 0.1%. Miner Rio Tinto dropped 1.4% after reporting its smallest first-half underlying profit in five years on subdued iron ore prices. The outlook for European corporate health has improved, earnings forecasts showed on Tuesday, after the European Union struck a framework trade deal with the U.S. on Sunday following weeks of negotiations.
Time of India
8 hours ago
- Business
- Time of India
European shares fall as investors digest earnings deluge; Adidas sinks
European shares fell on Wednesday, weighed down by bank stocks , as corporate earnings took centre stage ahead of a packed schedule, which includes central bank announcements, key data and the approaching August 1 tariff deadline this week. German sportswear brand Adidas warned that higher U.S. tariffs would add around 200 million euros ($231 million) to its costs in the second half, sending shares tumbling 7% to a near four-month low. Peer JD Sports fell 0.8%. Banks index dipped 0.9% a day after hitting its highest since September 2008. Swiss bank UBS rose 3% after reporting its second-quarter profit more than doubled from last year's, while HSBC Holdings fell 5% on posting first-half pretax profit below estimates. The pan-European STOXX 600 index dropped 0.3% by 0720 GMT. Regional bourses were mixed, with Germany's blue-chip DAX shedding 0.3%, while France's CAC 40 rising 0.1%. Miner Rio Tinto dropped 1.4% after reporting its smallest first-half underlying profit in five years on subdued iron ore prices. Live Events The outlook for European corporate health has improved, earnings forecasts showed on Tuesday, after the European Union struck a framework trade deal with the U.S. on Sunday following weeks of negotiations.
Reuters
a day ago
- Automotive
- Reuters
European second-quarter corporate profits expected to rise after EU-US tariff deal
July 29 (Reuters) - The outlook for European corporate health has improved, the latest earnings forecasts showed on Tuesday, after the European Union struck a framework trade deal with the U.S. on Sunday after weeks of negotiations. European companies are expected to report growth of 1.8% in second-quarter earnings, on average, according to LSEG I/B/E/S data, a large improvement from the 0.3% fall analysts had expected a week ago. The framework trade agreement sets out a 15% import tariff on most EU goods from next month, lower than the 30% U.S. President Donald Trump had threatened to apply earlier in July, but likely higher than businesses had hoped. Before the agreement, Trump's tariff policies had changed frequently since April, the most common start of the second fiscal quarter. Some were imposed while others were proposed and then delayed. This earnings season is the first to expose the impact of Trump's tariff-fuelled trade war on corporate health. Revenue meanwhile is expected to be slightly worse than last week's estimate, the LSEG report showed, with analysts expecting a 3.3% fall versus a 3.1% drop previously. That would be the worst quarterly performance in more than a year. It compares to a 3.0% increase in earnings and a 0.8% drop in revenues a year ago. Milan-listed Stellantis ( opens new tab said on Tuesday as it reported its half-year results that it expected a 1.5 billion euro ($1.7 billion) impact from U.S. tariffs this year, at the higher end of a forecast range provided last week. Volkswagen ( opens new tab last Friday cut its full-year sales and margin forecasts when it reported a 1.3 billion euro hit from tariffs for the first half, in the German carmaker's first assessment of the damage from Trump's trade war. Companies still to report this week include Adidas ( opens new tab, Anheuser-Busch InBev ( opens new tab and Santander ( opens new tab. As of Monday's close, Europe's benchmark STOXX 600 (.STOXX), opens new tab index was up about 8% since the start of 2025. ($1 = 0.8674 euros)
