London (AFP) – Stock markets edged higher Wednesday as traders assessed the latest corporate earnings and awaited President Donald Trump’s next wave of tariffs. Trump’s claim that Washington was “very close to a deal” to extend a China tariffs truce provided some optimism.
Dozens of economies around the world, including the European Union and India, are set to face higher US tariffs on Thursday, as Trump’s long-threatened “reciprocal” duties over trade practices he deems unfair take effect. Separate 50 percent US tariffs on Brazilian imports came into place Wednesday, with significant exemptions, after Trump targeted Latin America’s biggest economy over its prosecution of former president Jair Bolsonaro.
Oil prices rallied thanks to Trump’s threat to impose higher tariffs on India over its purchase of Russian crude. Kathleen Brooks, research director at trading group XTB, said “decent” corporate results in the United States and Europe were overshadowing concerns about a US economic slowdown and the impact of “Trump’s continuing obsession with tariffs.”
Wall Street’s main indices edged higher at the start of trading. Paris rose in early afternoon deals, while Frankfurt was flat after data showed German industrial orders unexpectedly fell in June. London advanced ahead of the Bank of England’s expected decision to cut its key interest rate Thursday.
Markets kept an eye on US tariff developments, with several countries still racing to strike deals before Thursday’s levies kick in. European investors are “in a relatively confident mood following a US-EU trade deal that eases concerns around tomorrow’s tariff headline,” said Joshua Mahony, chief market analyst at Rostro trading group. He added that markets are “heavily focused on the likes of India and Switzerland,” which have yet to reach a final agreement with Washington.
In a Tuesday interview with CNBC, Trump said he was looking at hitting pharmaceuticals with tolls that eventually reach 250 percent, while semiconductors were also in the firing line. However, he signalled a more positive tone on talks with China, which analysts said helped boost Asian stocks.
In company news, shares in Danish drug giant Novo Nordisk fell 3.5 percent. The group reported a sharp rise in second-quarter net profit, but rising competition is hitting sales of its diabetes and obesity treatments Ozempic and Wegovy in the United States. In London, shares in Swiss mining and commodity giant Glencore shed 3.7 percent after it posted widening first-half losses on falling coal prices, US tariffs, and Middle East tensions.
In the United States, Disney lifted its full-year earnings forecast after reporting higher quarterly profits as it added 1.8 million subscribers to its streaming platform. However, investors appeared to focus on a drop in revenue from its linear TV business, with its shares falling four percent as trading got underway in New York. Shares in McDonald’s climbed 1.5 percent after the fast-food chain posted a rebound in sales.
– Key figures at around 1330 GMT –
New York – Dow: UP 0.2 percent at 44,190.66 points
New York – S&P 500: UP 0.2 percent at 6,308.57
New York – Nasdaq Composite: UP 0.2 percent at 20,955.22
London – FTSE 100: UP 0.3 percent at 9,167.02
Paris – CAC 40: UP 0.2 percent at 7,633.53
Frankfurt – DAX: FLAT at 23,854.85
Tokyo – Nikkei 225: UP 0.6 percent at 40,794.86 (close)
Hong Kong – Hang Seng Index: FLAT at 24,910.63 (close)
Shanghai – Composite: UP 0.5 percent at 3,633.99 (close)
Euro/dollar: UP at $1.1625 from $1.1582 on Tuesday
Pound/dollar: UP at $1.3317 from $1.3294
Dollar/yen: DOWN at 147.39 yen from 147.55 yen
Euro/pound: UP at 87.30 pence from 87.01 pence
Brent North Sea Crude: UP 1.7 percent at $68.78 per barrel
West Texas Intermediate: UP 1.8 percent at $66.78 per barrel
© 2024 AFP
