New York (AFP) – The Nasdaq powered to a fresh record, and major European markets closed in the green Wednesday, brushing off US President Donald Trump’s growing array of tariff targets. After releasing tariff warning letters to seven additional countries early Wednesday afternoon, Trump followed up late in the afternoon with a threatened 50 percent levy on Brazil.
Trump tied the levy — which is more severe than those facing dozens of other countries — to Brazil’s prosecution of former president Jair Bolsonaro over an alleged attempted coup following the 2022 election, when Bolsonaro was defeated by President Luiz Inacio Lula da Silva. Trump, who spent last week successfully lobbying Congress for his sweeping fiscal legislation, has returned to tariffs with a vengeance this week. On Monday, Trump sent letters to Japan and South Korea, among other countries. On Tuesday, the US president announced a potential 50 percent toll on copper imports and said he was looking at 200 percent tariffs on pharmaceuticals.
The news sent the price of copper — with a wide range of uses, including in cars, construction, and telecoms — to a record high Tuesday. But Kathleen Brooks, research director at XTB, said Wednesday, “the market is not taking Trump at his word when it comes to tariffs, and the market impact has been limited so far.” The tech-rich Nasdaq Composite Index vaulted nearly one percent higher to a fresh all-time high, while artificial intelligence giant Nvidia touched $4 trillion in market value before falling back slightly.
“The market is certainly not acting as if it’s fearing the tariffs,” said Briefing.com analyst Patrick O’Hare. “Obviously, there’s been a lot of attention on the tariff letters that have gone out this week, but the market is operating on the assumption that they are just negotiating tools and that, ultimately, better terms will be reached.” European markets were also shrugging off risks of a trade war. Germany’s Dax hit a new high as it posted a 1.4 percent gain, matched by the CAC 40 in Paris. London could only manage a gain of just under 0.2 percent.
But Chris Beauchamp, chief market analyst at online trading platform IG, urged caution as “reports suggesting that Trump relishes the actual deal-making process more than an actual resolution seem to suggest that a further delay to tariffs will be forthcoming, although this is an approach fraught with risk.” Earlier in Asia, Tokyo gains were tempered by losses in Hong Kong and Shanghai.
– Key figures at around 2130 GMT –
New York – Dow: UP 0.5 percent at 44,458.30 (close)
New York – S&P 500: UP 0.6 percent at 6,263.26 (close)
New York – Nasdaq Composite: UP 0.9 percent at 20,611.34 (close)
London – FTSE 100: UP 0.2 percent at 8,867.02 points (close)
Paris – CAC 40: UP 1.4 percent at 7,878.46 (close)
Frankfurt – DAX: UP 1.4 percent at 24,549.56 (close)
Tokyo – Nikkei 225: UP 0.3 percent at 39,821.28 (close)
Hong Kong – Hang Seng Index: DOWN 1.1 percent at 23,892.32 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,493.05 (close)
Euro/dollar: DOWN at $1.1719 from $1.1725 on Tuesday
Pound/dollar: DOWN at $1.3590 from $1.3659
Dollar/yen: DOWN at 146.30 yen from 146.58 yen
Euro/pound: DOWN at 86.21 pence from 86.26 pence
Brent North Sea Crude: UP 0.1 percent at $70.41 per barrel
West Texas Intermediate: UP 0.1 percent at $68.38 per barrel
© 2024 AFP
