Markets Shrug Off Trump Tariff Threat Against EU \u2022 Channels Television
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Major stock markets largely shrugged on Monday at US President Donald Trump\u2019s latest tariff threat to hit the EU and Mexico with 30-percent levies.<\/strong><\/p>\n Analysts said investors viewed the warning as yet another negotiating ploy against America\u2019s trading partners rather than a genuine move\u2014though lingering uncertainty weighed on oil prices.<\/p>\n US shares initially dipped on Trump\u2019s threat but then rose as traders digested the likelihood of it being implemented.<\/p>\n European indices finished largely down, but with no sign of panic selling. London\u2019s FTSE climbed.<\/p>\n Many Asian markets closed lower, but not Shanghai and Hong Kong.<\/p>\n Markets believe the latest threat of 30-percent tariffs on the EU, the United States\u2019 biggest trading partner, was \u201cTrump-style brinkmanship\u2014sound and fury meant to shake down concessions before the August 1 deadline,\u201d when they are due to be applied, explained Stephen Innes, managing partner at SPI Asset Management.<\/p>\n \u201cFinancial markets are acting like the 30-percent rate is a mere tactic from Donald Trump, rather than a reality,\u201d agreed Kathleen Brooks, research director at XTB.<\/p>\n READ ALSO:\u00a0<\/strong>Stock Markets Struggle As Trump\u2019s Tariff Deadline Looms<\/p>\n Yet some, including Kim Heuacker, an associate consultant at Camarco, noted, \u201cThere remains the genuine risk that, to save face, he (Trump) may activate the high tariffs.\u201d<\/p>\n The European Union, stung by Trump\u2019s unexpected raising of the stakes amid trade negotiations, is looking at targeting\u00a072 billion euros\u2019 ($84 billion) worth of US imports if talks with Washington fail, its trade chief, Commissioner Maros Sefcovic, said.<\/p>\n With Trump\u2019s threat being discounted, bandwidth was given to other news.<\/p>\n Bitcoin struck a record high above $123,000, fueled by possible regulatory changes for crypto assets in the United States that are being debated.<\/p>\n Attention was also focused on Trump on Monday vowing \u201cvery severe tariffs\u201d on Russia\u2019s trade partners if Moscow did not resolve its war in Ukraine within 50 days.<\/p>\n Oil traders initially saw those sanctions constricting supply, and they pushed crude prices higher\u2014before selling off under the cloud of a possible broader trade war that would depress global demand.<\/p>\n Upcoming data on Tuesday on US inflation was also in focus, with expectations that the rate would rise a little. If it comes in higher than predicted, it would support warnings that Trump\u2019s tariffs are inflationary for Americans.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Trump\u2019s threat to slap 30-percent tariffs on the European Union, issued Saturday, threw into disarray months of painstaking talks Brussels had been conducting with Washington.<\/p>\n European Commission chief Ursula von der Leyen has insisted the bloc still wants to reach an accord, and on Sunday delayed EU retaliation.<\/p>\n Some EU countries, notably France, are calling for strong countermeasures after China responded robustly with its own tariffs and ended up reaching a deal with the United States.<\/p>\n Since that accord, trade tensions have eased between the United States and China, with official data on Monday showing Chinese exports jumped more than expected in June.<\/p>\n That included a 32-percent surge in shipments to the United States after a drop in May.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n New York \u2013 Dow: FLAT at 44,401.59 points<\/p>\n New York\u2014S&P 500: FLAT at 6,262.06<\/p>\n New York\u2014Nasdaq Composite: UP 0.1 percent at 20,618.14<\/p>\n London\u2014FTSE 100: UP 0.6 percent at 8,998.06<\/p>\n Paris\u2014CAC 40: DOWN 0.3 percent at 7,808.17<\/p>\n Frankfurt\u2014DAX: DOWN 0.4 percent at 24,160.64<\/p>\n Tokyo\u2014Nikkei 225: DOWN 0.3 percent at 39,459.62 (close)<\/p>\n Hong Kong\u2014Hang Seng Index: UP 0.3 percent at 24,203.32 (close)<\/p>\n Shanghai \u2013 Composite: UP 0.3 percent at 3,519.65 (close)<\/p>\n Euro\/dollar: UP at $1.1693\u00a0from $1.1690<\/p>\n Pound\/dollar: DOWN at $1.3454 from $1.3497<\/p>\n Dollar\/yen: UP at 147.47 yen from 147.38 yen<\/p>\n Euro\/pound: UP at 86.91 pence from 86.59 pence<\/p>\n Brent North Sea Crude: DOWN 1.1 percent at $69.59 per barrel<\/p>\n West Texas Intermediate: DOWN 1.4 percent at $67.49 per barrel<\/p>\nTalks Disarray<\/h2>\n
Key Figures At Around 1545 GMT<\/h2>\n