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Global Shares Lower on Tariff Deadline 07/07 04:48
Global shares mostly fell Monday as the Trump administration stepped up
pressure on trading partners to quickly make new deals before a Wednesday
tariff deadline, with plans for the United States to start sending letters
warning countries that higher tariffs could kick in Aug. 1.
MANILA, Philippines (AP) -- Global shares mostly fell Monday as the Trump
administration stepped up pressure on trading partners to quickly make new
deals before a Wednesday tariff deadline, with plans for the United States to
start sending letters warning countries that higher tariffs could kick in Aug.
1.
In early European trading, Britain's FTSE 100 was down 0.2% to 8,809.23
while Germany's DAX added 0.3% to 23,854.32. In Paris, the CAC 40 edged down
0.1% to 7,688.34.
Japan's Nikkei 225 shed 0.6% to 39,587. 68 while Hong Kong's Hang Seng index
edged down 0.1% to 23,887.83.
South Korea's KOSPI index rose 0.2% to 3,059.47 while the Shanghai Composite
Index edged 0.1% higher to 3,473.13. Australia's S&P ASX 200 fell 0.2% to
8,589.30.
Oil prices also fell after OPEC+ agreed on Saturday to raise production in
August by 548,000 barrels per day, accelerating output increases since oil
prices jumped, then retreated, in the aftermath of Israel and U.S. attacks on
Iran.
U.S. benchmark crude was down 71 cents to $66.29 per barrel. Brent crude,
the international standard, shed 41 cents to $68.39 per barrel. U.S. shares
were set to drift lower with S&P 500 futures declining 0.4% to 6,295.50 and Dow
futures down 0.2% at 45,012.
"We expect markets to be volatile into the 9-July deadline when the 90-day
pause on President Trump's reciprocal tariffs expires for non-China trading
partners," the Nomura Group wrote in a commentary.
It said the near-term outlook will likely hinge on several key factors like
the extent to which trading partners are included in Trump letters, the rate of
tariffs, and the effective date of such tariffs. A more distant implementation
date might leave scope for some last-minute trade negotiations and maintain
market optimism for potential resolutions or extensions, it added.
"With the July 9 tariff deadline fast approaching, all eyes are trained on
Washington, scanning for signs of escalation or retreat. The path forward isn't
clear, but the terrain is littered with risk," Stephen Innes, managing partner
at SPI Asset Management said in a commentary.
On Thursday, a report showed the U.S. job market performed stronger than
Wall Street expected. The S&P 500 rose 0.8% and set an all-time high for the
fourth time in five days. The Dow Jones Industrial Average added 344 points, or
0.8%, and the Nasdaq composite gained 1%.
In other dealings Monday, the U.S. dollar rose to 145.18 Japanese yen from
144.44 yen. The euro edged lower to $1.1734 from $1.1779.
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