Stock indices in the U.S. and Europe climb after temporary ceasefire announced in US-EU trade dispute
European markets and U.S. futures surged Tuesday, following a brief breather in the ongoing trade standoff between the EU and U.S. after President Trump's threat to impose 50% tariffs on imports from the European Union last week.
Futures for the S&P 500 climbed 1.5% before the bell, while futures for the Nasdaq rose 1.6%, and those for the Dow Jones Industrial Average gained 1.4%. These premarket gains were enough to erase all the losses incurred on Friday, when Trump sent the markets into a tailspin with his verbal assault on EU trade practices.
Trump had threatened to impose steep tariffs on EU goods from June 1, claiming that trade talks with the European Union were at a standstill. However, he announced a delay in the tariffs until July 9, giving both parties time to negotiate a resolution.
The EU's chief trade negotiator reported positive discussions with Trump administration officials and expressed optimism about reaching a trade deal before the July deadline.
In Europe, at midday, London's FTSE 100 gained 0.8%, reopening after a holiday on Monday. Germany's DAX added 0.7%, while the CAC 40 in Paris picked up 0.2%.
Meanwhile, Tesla sales in Europe continued to dwindle for the fourth consecutive month, despite growth in the electric car market. Sales of Tesla vehicles in 32 European countries fell by 49% to 7,261 in April from 14,228 in the same month last year, according to the European Automobile Manufacturers' Association. The decline in Tesla's sales may be linked to the backlash against CEO Elon Musk's controversial views.
Despite the grim sales figures, Tesla shares rose 2.1% before the bell Tuesday, encouraged possibly by optimism over an EU-U.S. trade deal.
Southwest Airlines saw a 3% rise in premarket trading, as the carrier prepares to introduce its new baggage policy on Wednesday. The airline, once known for letting passengers check up to two bags for free, will now charge most travelers for checked bags, aiming to boost profits and revenue under pressure from activist investors.
Data on U.S. consumer confidence and housing prices are due later Tuesday.
In Asian trading, Japan's Nikkei 225 reversed early losses to gain 0.5%. The Bank of Japan's governor anticipates raising interest rates in coming months due to inflationary pressures, particularly food prices, which have doubled in the past year. However, the central bank also must consider global economic uncertainty when setting its extremely low benchmark interest rate of 0.5%.
Hong Kong's Hang Seng gained 0.4%, while the Shanghai Composite index slipped 0.2%. South Korea's Kospi lost 0.3%, and Australia's S&P/ASX 200 climbed 0.6%. Taiwan's Taiex lost 0.9%, and India's Sensex fell 1.2%.
Crude oil prices saw minor adjustments, with U.S. benchmark crude oil ticking down 7 cents to $61.46 per barrel, and Brent crude, the international standard, dropping 4 cents to $64.08 per barrel. The U.S. dollar rose to 144.08 Japanese yen from 142.85 yen, and the euro slid to $1.1348 from $1.1388.
Millennials and Generation Z are being courted by Las Vegas casinos to attract a younger demographic, according to industry reports.A paper check containing a man's life savings has vanished, leaving him in financial ruin.Nvidia's CEO claims that U.S. chip controls on China have backfired and pushed China towards developing its own chip industry.Renters and landlords in Western Australia are preparing for a new cap on rent hikes, set to take effect soon.A concept for a grocery store modeled after a farmers market is gaining traction, offering fresher and more sustainable food options.
- The surge in U.S. futures markets, such as the S&P 500, Nasdaq, and Dow Jones Industrial Average, reflects a positive response to the delay in the proposed 50% tariffs between the EU and U.S.
- In the technology sector, Nvidia's CEO believes that U.S. chip controls on China have inadvertently fueled China's development of its own chip industry.
- The housing market in Western Australia is preparing for a new cap on rent hikes, which is expected to affect both renters and landlords.
- To attract a younger demographic, Las Vegas casinos are turning to millennials and Generation Z, as per industry reports, signifying a shift in the general-news landscape of the casino industry.
