New York (AFP) – Global stocks mostly rose despite fresh signs of a tariff hit to corporate earnings, while Wall Street cheered President Donald Trump’s moves to soften the levies hitting automakers. Trump’s pivot includes limitations on the impact of multiple tariffs on carmakers and a measure to allow carmakers to offset a portion of the levy for two years. All three major US indices posted solid gains, with the S&P 500 adding 0.6 percent.
Investors are “encouraged by the Trump decision to be a little more flexible (…) with the autos,” said CFRA Research’s Sam Stovall, who predicted stocks could go higher. “There’s definitely uncertainty, but I believe that the risk is to the upside, meaning that the market has already priced in the impact of the tariffs,” he said.
In Europe, the London FTSE 100 index and Frankfurt’s DAX closed higher, but the Paris CAC 40 ended in the red. Stocks moved sideways on Monday after notching four straight positive sessions last week as Trump adopted a more conciliatory posture on the trade war with China and said he doesn’t plan to fire Federal Reserve Chair Jerome Powell.
But tariff talk has been prominent during earnings season. In Europe, shares in Volvo Cars sank nearly 10 percent after it announced plans to cut costs by almost $2 billion, including through job cuts, as its profits fall. “Tougher market conditions and lower volumes combined with increased price pressure and tariff effects are impacting profitability,” Volvo Cars chief executive Hakan Samuelsson said. Shares in German sportswear giant Adidas fell 2.8 percent as it warned that tariffs would increase prices for its products in the United States.
British pharmaceutical giant AstraZeneca said it has begun to move some of its European production to the United States, ahead of Trump’s possible tariffs on the sector, helping its shares rise 0.9 percent. Amazon shares initially slid nearly two percent after the White House slammed the online retailer over a report in Punchbowl News that it would soon tell consumers how much Trump’s tariffs have contributed to the price tag on its goods, branding it a “hostile and political act”. Without fully denying the Punchbowl report, Amazon released a statement saying its low-cost Amazon Haul store had “considered the idea of listing import charges on certain products.” “This was never approved and is not going to happen,” said the statement from Amazon, which finished down 0.2 percent.
Elsewhere, oil prices fell further on Tuesday on fears that global trade tensions may lead to a slowdown in economic activity that would hamper energy demand.
Key figures at 2130 GMT:
New York – Dow: UP 0.8 percent at 40,527.62 (close)
New York – S&P 500: UP 0.6 percent at 5,560.83 (close)
New York – Nasdaq: UP 0.6 percent at 17,461.32 (close)
London – FTSE 100: UP 0.6 percent at 8,463.46 (close)
Paris – CAC 40: DOWN 0.2 percent at 7,555.87 (close)
Frankfurt – DAX: UP 0.7 percent at 22,425.83 (close)
Hong Kong – Hang Seng Index: UP 0.2 percent at 22,008.11 (close)
Shanghai – Composite: DOWN 0.1 percent at 3,286.65 (close)
Tokyo – Nikkei 225: Closed for a holiday
Euro/dollar: DOWN at $1.1390 from $1.1420 on Monday
Pound/dollar: DOWN at $1.3399 from $1.3441
Dollar/yen: UP at 142.22 yen from 142.01 yen
Euro/pound: UP at 85.08 pence from 84.96 pence
West Texas Intermediate: DOWN 2.6 percent at $60.42 per barrel
Brent North Sea Crude: DOWN 2.4 percent at $64.25 per barrel
burs-jmb/dw
© 2024 AFP
