New York (AFP) – Wall Street shares bounced on Tuesday while Europe maintained a rally after US President Donald Trump delayed huge tariffs on imports from the EU over the long holiday weekend. New York’s main stock markets all rebounded vigorously as trading resumed after the Memorial Day weekend, with the broad-based S&P 500 finishing more than two percent higher and the tech-heavy Nasdaq rising 2.5 percent. Nvidia notably added 3.2 percent ahead of its latest earnings.
In Europe, Frankfurt hit a new record high before ending 0.8 percent in the green, while Paris finished flat and London closed up 0.7 percent. “UK and US investors returned from their respective long weekends with a spring in their step thanks to the abrupt decision to pause higher tariffs on the EU,” said Chris Beauchamp, chief market analyst at online trading platform IG. Analysts also cited a surprisingly big improvement in US consumer confidence and a pullback in Treasury yields, with the 30-year bond falling below five percent following reports Japan will temper its long-term bond issuance.
“It is unwise to hope that all upcoming US data will be as encouraging as today’s confidence figure, but it is certainly a relief that US consumers have managed to maintain their sunny outlook,” Beauchamp added, as US data showed a confidence jump after five months of declines. Trump sent markets into a tailspin Friday when he threatened to hit EU goods with a 50 percent tariff from June 1, saying talks were “going nowhere.” But after a phone call Sunday with European Union chief Ursula von der Leyen, Trump delayed the levies until July 9 to give more time for negotiations.
EU trade commissioner Maros Sefcovic said Monday that following calls with top American officials, the bloc remained “fully committed” to reaching a trade agreement with the United States. “This postponement has helped soothe tensions following last week’s turbulence and is widely viewed as a temporary de-escalation in the ongoing trade dispute,” said David Morrison, senior market analyst at Trade Nation. Analysts cautioned, however, that Trump’s trade policies have been erratic.
“Donald Trump has rolled back so many times on tariffs, that the message does not hold as much weight these days,” said Kathleen Brooks, research director at trading platform XTB. The dollar, which has slumped since Trump launched his tariffs blitz last month, gained against other major currencies on Tuesday. In Asia, Hong Kong and Tokyo closed higher but Shanghai fell. Amid oversupply fears, oil prices slid on the eve of an OPEC+ meeting to decide on crude output levels from the cartel and its partners, notably Russia.
– Key figures at around 2030 GMT –
New York – Dow: UP 1.8 percent at 42,343.65 (close)
New York – S&P 500: UP 2.1 percent at 5,921.54 (close)
New York – Nasdaq Composite: UP 2.5 percent at 19,199.16 (close)
London – FTSE 100: UP 0.7 percent at 8,778.05 (close)
Paris – CAC 40: FLAT at 7,826.79 (close)
Frankfurt – DAX: UP 0.8 percent at 24,226.49 (close)
Tokyo – Nikkei 225: UP 0.5 percent at 37,724.11 (close)
Hong Kong – Hang Seng Index: UP 0.4 percent at 23,381.99 (close)
Shanghai – Composite: DOWN 0.2 percent at 3,340.69 (close)
Euro/dollar: DOWN at $1.1329 from $1.1387 on Monday
Pound/dollar: DOWN at $1.3504 from $1.3564
Dollar/yen: UP at 144.34 yen from 142.85 yen
Euro/pound: DOWN at 83.88 pence from 83.95 pence
Brent North Sea Crude: DOWN 1.0 percent at $64.09 per barrel
West Texas Intermediate: DOWN 1.0 percent at $60.89 per barrel
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© 2024 AFP
