World shares mostly rise as markets shrug off Trumps tariff pressures
New York, In early European trading, Germany’s DAX rose 0.2 per cent to 24,112.38. Britain’s FTSE 100 edged 0.2 per cent higher to 8,822.09. France’s CAC 40 shed 0.1 per cent to 7,716.19.
The futures for the S&P 500 added 0.1 per cent. The futures for the Dow Jones Industrial Average shed 0.1 per cent.
In Asia, Japan’s Nikkei 225 added 0.3 per cent to 39,688.81 while South Korea’s Kospi surged 1.8 per cent to 3,114.95.
Hong Kong’s Hang Seng index climbed 1.1 per cent to 24,140.13 while the Shanghai Composite gained 0.7 per cent to 3,497.48. Australia’s S&P/ASX 200 edged 0.1 per cent lower to 8,590.70.
Stocks on Wall Street closed broadly lower on Monday as the White House stepped up pressure on major trading partners to make deals before punishing tariffs imposed by the US take effect.
The S&P 500 fell 0.8 per cent for its biggest loss since mid-June. The benchmark index remains near its all-time high set last week.
The Dow Jones Industrial Average gave back 0.9 per cent while the Nasdaq composite also finished 0.9 per cent lower, not too far from its own record high.
The losses were widespread. Decliners outnumbered gainers by nearly 4 to 1 on the New York Stock Exchange.
It came after the Trump administration released letters informing Japan and South Korea that their goods will be taxed at 25 per cent starting on August 1, citing persistent trade imbalances with the two crucial US allies in Asia. US President Donald Trump also announced new tariff rates on Malaysia, Kazakhstan, South Africa, Laos and Myanmar.
Just before hefty US tariffs on goods imported from nearly every country around the globe were to take effect in April, Trump postponed the levies for 90 days in hopes that foreign governments would be more willing to strike new trade deals. That 90-day negotiating period was set to expire before Wednesday.
In a post on his social media platform late Sunday, Trump also said any country that aligns itself with what he termed “the Anti-American policies of BRICS” would be levied an added 10 per cent tariff.
BRICS member nations include Brazil, Russia, India, China, South Africa, Egypt, the United Arab Emirates, Ethiopia, Indonesia, and Iran. Saudi Arabia has also been invited to join.
“Financial markets have reacted to news of higher US tariffs in sanguine fashion,” Chris Turner, ING’s global head of markets, wrote in a commentary. “Presumably, the view is now that there are more deals to be done before the 1 August deadline.”
He said equity markets have recovered most of their initial losses, bond markets have barely budged, and in FX, Asian currencies have bounced back.
In other dealings on Tuesday, benchmark US crude oil lost 29 cents to USD 67.64 per barrel. Brent crude, the international standard, gave up 18 cents to USD 69.40.
The dollar was trading at 146.17 against the Japanese yen, up from 146.01 yen. The euro rose to USD 1.1752 from USD 1.1714. SKS RD RD
This article was generated from an automated news agency feed without modifications to text.
