Shares in German automakers such as Volkswagen, BMW, and Porsche took quite a tumble, indeed, following the latest trade pact between the US and EU. It seems the agreement didn’t sit too well with folks this side of the Channel. A fine bit of upset, really.
In the grand old city of London, markets dipped, reflecting a touch of unease. This sentiment was echoed in Paris as well. Meanwhile, in New York, the S&P 500 and Nasdaq observed a modest rise, while the Dow was remarkably steady.
With our friends in Brussels, they’ve been quick to defend the bargain, calling it “better than a trade war with the United States.” Yet, some EU nations feel the terms, with a hefty 15 percent tariff on most EU exports to the US, appear rather skewed.
President Trump, not one to shy away from a bit of fanfare, announced the bloc had agreed to procure “$750 billion worth of energy” from the States, along with $600 billion in additional investments. Quite a sum, indeed!
Jack Allen-Reynolds from Capital Economics brought a sobering note. While the agreement has averted a more nefarious outcome, he warned there’s uncertainty, as Trump might very well change his mind even after the ink is dry.
Oil prices, on the other hand, soared, partly buoyed by the trade accord. They also rose because Trump set a rather sharp deadline for Russia to conclude its quarrels in Ukraine, lest they face hefty sanctions.
Traders across the pond braced for a jolly busy week. A string of corporate earnings reports from the likes of Apple and Amazon were expected, alongside significant economic data.
Meanwhile, Frankfurt was less festive, closing sharply down as the reality of high tariffs dawned upon German carmakers, leading to a more than three percent drop in shares for Volkswagen, BMW, and Porsche.
In Paris, Pernod Ricard, known for its wines and spirits, saw its shares fall over three percent. Amsterdam wasn’t spared either, with Heineken’s sales drop causing an over eight percent fall in their shares.
The Federal Reserve is anticipated to keep interest rates as is, with folks rather keen on their predictions for the rest of the year, especially given Trump’s trade manoeuvres.
Have a look, if you will, at the key figures around 1530 GMT:
- New York – Dow: Flat at 44,905.15 points
- S&P 500: Up 0.1 percent at 6,391.58
- Nasdaq Composite: Up 0.2 percent at 21,158.48
- London – FTSE 100: Down 0.4 percent at 9,081.44
- Paris – CAC 40: Down 0.4 percent at 7,800.88
- Frankfurt – DAX: Down 1.0 percent at 23,970.36
- Tokyo – Nikkei 225: Down 1.1 percent at 40,998.27
- Hong Kong – Hang Seng Index: Up 0.7 percent at 25,562.13
- Shanghai – Composite: Up 0.1 percent at 3,597.94
Currencies stumbled a bit:
- Euro/dollar: Down at $1.1620 from $1.1738
- Pound/dollar: Down at $1.3402 from $1.3431
- Dollar/yen: Up at 148.40 yen from 147.68 yen
- Euro/pound: Down at 86.72 pence from 87.40 pence
Oil surged:
- Brent North Sea Crude: Up 1.9 percent at $68.96 per barrel
- West Texas Intermediate: Up 1.8 percent at $66.32 per barrel
Let’s see how things unfold as the week progresses. Cheers!
