Left Menu
Development News Edition

GLOBAL MARKETS-U.S., European shares gain after Trump auto-tariff delay

Reuters | Updated: 15-05-2019 23:22 IST | Created: 15-05-2019 23:22 IST
GLOBAL MARKETS-U.S., European shares gain after Trump auto-tariff delay
U.S. and European stock indexes gained on Wednesday after news that U.S. President Donald Trump planned to delay tariffs on auto imports, offsetting earlier pressure on equities and government bond yields from weak U.S. and Chinese economic data. Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months, three administration officials told Reuters. Fears about an escalating global trade war, particularly following a spike in U.S.-China tensions, have rattled markets over the past week.

“Europe is on the brink of recession, and auto tariffs would almost certainly push it into recession," said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. "President Trump announcing that he’d delay auto tariffs by as many as six months is positive, and stocks are reacting appropriately to that.” Meanwhile, U.S. Treasury Secretary Steven Mnuchin said he will likely travel to Beijing soon to continue negotiations with Chinese counterparts as the world's two biggest economies try to salvage talks aimed at ending their months-long trade war.

Major U.S. and European stock indexes moved higher after falling earlier. On Wall Street, the Dow Jones Industrial Average rose 122.85 points, or 0.48%, to 25,654.9, the S&P 500 gained 18.54 points, or 0.65%, to 2,852.95 and the Nasdaq Composite added 86.37 points, or 1.12%, to 7,820.86.

The pan-European STOXX 600 index rose 0.46%. Europe's auto's and suppliers index jumped 2.0%. Italian stocks were still down 0.1% after the country's deputy prime minister said Rome was ready to break EU fiscal rules.

MSCI's gauge of stocks across the globe gained 0.56%. The positive trade developments lifted risk sentiment that had been dampened earlier in the session by weak economic data.

China reported surprisingly weaker growth in retail sales and industrial output for April. In the U.S., retail sales unexpectedly fell in April as households cut back on purchases of motor vehicles and a range of other goods, while other data showed a drop in industrial production last month. “The market gave, up until now, the (Trump) administration the benefit of the doubt in prosecuting the trade war because the economy was strong, and now all of a sudden the data was weaker than expected and I think it is causing a little bit of concern here,” David Joy, chief market strategist at Ameriprise Financial in Boston, said before news of the auto-tariff delay.

U.S. Treasury yields fell, with the two-year yield hitting its lowest in 15 months as traders raised bets on a Federal Reserve interest rate cut after U.S. retail sales missed expectations. Benchmark 10-year notes last rose 12/32 in price to yield 2.3785%, from 2.419% late on Tuesday.

The dollar index, which measures the greenback against a basket of six major currencies, rose 0.01%, with the euro up 0.02% to $1.1205. Oil futures rose as worries that rising tensions in the Middle East could hit global supplies overshadowed an unexpected build in U.S. crude inventories.

U.S. crude rose 0.55% to $62.12 per barrel and Brent was last at $71.91, up 0.94% on the day. (Additional reporting by April Joyner in New York and Karin Strohecker in London; Editing by James Dalgleish and Bernadette Baum)


TRENDING

OPINION / BLOG / INTERVIEW

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Dissecting how COVID-19 is catalyzing the trajectory of New World Order

The ensuing pandemic of COVID-19 has hit the globalization in two ways firstly, shrinking the importance of globalization as an economic force by curtailing mobility through worldwide lockdowns, and secondly, rejuvenating the idea of indig...

Videos

Latest News

Citigroup's Mason expresses horror over Minneapolis killing

Citigroup Inc Chief Financial Officer Mark Mason, one of the few black executives on Wall Street, published a personal essay on Friday expressing his horror, disgust and anger over the killing of George Floyd, an unarmed black man who died ...

Police: Woman killed after charging officer with knife

A woman armed with a butcher knife was fatally shot Friday after charging police officers outside a Florida government building, authorities said. Temple Terrace Police Chief Kenneth Albano said during a news conference that the shooting oc...

Biden urged to pick black VP, not Klobuchar as Minneapolis killing stokes racial tensions

Former Vice President Joe Biden is facing fresh calls to choose a black woman as his running mate amid rising racial tensions after this weeks videotaped death of an unarmed black man as a white Minneapolis police officer knelt on his neck....

Twelve migrants test positive for coronavirus at Mexican government shelter

Twelve migrants have tested positive for coronavirus at a government-run shelter in the Mexican border city of Ciudad Juarez, the Mexican labor ministry said in a statement on Friday. The migrants have been isolated to prevent further sprea...

Give Feedback