London (AFP) – Wall Street stocks pushed higher for a third day on Thursday, but the rally fizzled elsewhere as China poured cold water on US President Donald Trump’s comments talking up prospects of a deal to end their trade war. US stocks tanked on Monday after comments by Trump sparked fears he would try to remove Federal Reserve chief Jerome Powell. However, global markets rebounded on Tuesday after Trump indicated he had no intention to oust Powell, also signaling that tariffs on China could be substantially lowered and that the United States would have a “fair deal” on trade with Beijing.
China on Thursday said any claims of ongoing trade talks with Washington were “groundless”. Treasury Secretary Scott Bessent also tempered optimism, saying the two countries were “not yet” talking when it comes to lowering tariffs. Those comments led to a mostly lower session in Asia and early losses in Europe, which ended the day with small gains. However, Wall Street pushed higher after a mixed open, with the Nasdaq briefly gaining two percent as tech stocks bounced higher.
“Hopes of progress on trade deals were bolstered by reports that an agreement with India was near,” said Chris Beauchamp, chief market analyst at online trading platform IG. “The investing world is back to hanging onto every word out of the White House, but with such a confusing and often contradictory stance on tariffs, volatility is all we can really guarantee,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. City Index and FOREX.com analyst Fawad Razaqzada stated, “Until we see meaningful resolution on the tariff front, it may well be the case that markets remain in a choppy environment with larger-than-usual swings.”
The dollar weakened as White House uncertainty boosted demand for the Swiss franc, the yen, and gold, seen as safe-haven assets. Meanwhile, investors were also looking to a series of company results for signs of how tariffs may weigh on the outlook for the year ahead. “Comments about tariffs from business leaders are omnipresent and investors want to know how companies plan to deal with potential cost pressures,” said Russ Mould, investment director at AJ Bell.
Shares in consumer goods manufacturer Procter & Gamble slumped five percent after it cut its sales and profit forecasts, citing a pullback by consumers amid the tariff and economic uncertainty. Shares in its British rival Unilever shed 0.3 percent, although it said the impact of US tariffs on its products would be “limited,” as it reported a dip in first-quarter revenue. Shares in Pepsi slid 3.8 percent after it too cut its 2025 sales and profit forecasts. Japanese auto giant Nissan predicted an enormous loss of around five billion dollars this year as US President Donald Trump’s tariffs on car imports hit the industry.
In Paris, shares in luxury group Kering fell 1.6 percent after it reported a further sales slump at its flagship Gucci brand. In Frankfurt, German sportswear giant Adidas gained 2.9 percent as its profit almost doubled in the first quarter, beating expectations. Meanwhile, Nintendo shares gained as much as 5.5 percent after the gaming giant boasted of higher-than-expected demand in Japan for pre-orders of its Switch 2 game console.
**Key figures at 1530 GMT**
New York – Dow: UP 0.5 percent at 39,810.39 points
New York – S&P 500: UP 1.2 percent at 5,439.39
New York – Nasdaq Composite: UP 1.7 percent at 16,989.20
London – FTSE 100: UP less than 0.1 percent at 8,407.44 (close)
Paris – CAC 40: UP 0.3 percent at 7,502.78 (close)
Frankfurt – DAX: UP 0.5 percent at 22,064.51 (close)
Tokyo – Nikkei 225: UP 0.5 percent at 35,039.15 (close)
Hong Kong – Hang Seng Index: DOWN 0.7 percent at 21,909.76 (close)
Shanghai – Composite: FLAT at 3,297.29 (close)
Euro/dollar: UP at $1.1361 from $1.1317 on Wednesday
Pound/dollar: UP at $1.3301 from $1.3257
Dollar/yen: DOWN at 142.69 from 143.49 yen
Euro/pound: UP at 85.41 from 85.34 pence
West Texas Intermediate: UP 0.1 percent at $62.36 per barrel
Brent North Sea Crude: UP 0.1 percent at $65.26 per barrel
© 2024 AFP
