2025-07-29 05:41

Euro struggles after 1.3% fall on Monday US-EU trade deal criticised by some Eurozone leaders Dollar buoyant, focus on Fed, BOJ next SINGAPORE, July 29 (Reuters) - The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favoured the former and hardly lifted the economic outlook of the bloc. France, on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods. Sign up here. German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs. The euro slid 1.3% in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields fell. The common currency failed to recoup its losses and last traded 0.02% lower at $1.1584. "It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term implications for euro zone growth are concerned," said Ray Attrill, head of FX research at National Australia Bank. "The deal has been roundly condemned by France while others - including German Chancellor Merz - are playing up the negative consequences for exporters, and with that, economic growth." The slide in the euro in turn boosted the dollar, which jumped 1% against a basket of currencies overnight. The dollar held on to gains on Tuesday and knocked sterling to a two-month low of $1.3338. The yen edged 0.2% higher to 148.22 per dollar. The dollar index steadied at 98.66. "While the U.S. dollar's strength ... may reflect the perception that the new U.S.-EU deal is lopsided in favour of the U.S., the U.S. dollar's strength may also reflect a feeling that the U.S. is re-engaging with the EU and with its major allies," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Still, Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he set in April. Elsewhere, the Australian dollar rose 0.04% to $0.6524, while the New Zealand dollar was little changed at $0.5970. The onshore yuan touched a one-week low of 7.1794 per dollar, with investors awaiting the outcome of trade talks between Washington and Beijing. Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the centre of a trade war between the world's top two economies, seeking to extend a truce by three months. Apart from trade negotiations, investors' focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ). Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves. https://www.reuters.com/world/middle-east/euro-struggles-after-reality-check-us-eu-trade-deal-2025-07-29/

2025-07-29 05:40

SYDNEY, July 29 (Reuters) - Australia will expand the volume of solar and wind projects it underwrites in the race to stabilise an ageing power grid and hit a target of 82% renewable energy generation by 2030, the energy minister said on Tuesday. Energy Minister Chris Bowen said the Capacity Investment Scheme, the government’s flagship program to boost private investment in clean energy projects, would be expanded by 25%. Sign up here. That will help underwrite an additional 8 gigawatts of generation and storage projects, taking the scheme’s total coverage to 40 GW. "As our ageing coal-fired power stations only become more expensive and more unreliable we need new generation now," Bowen told the Investor Group on Climate Change. "Our energy grid’s transition remains urgent," he added in an excerpt of a speech released to media. Analysts project Australia will fall far short of its goal of 82% renewable energy generation by 2030, thanks to inadequate investment and grid connection delays. Under the scheme, the government calls for competitive tenders and agrees floor and ceiling limits on project revenue, paying the difference if it falls below the floor, while sharing in profits if the ceiling is exceeded. The six tender rounds held since the scheme's 2022 launch were "consistently and massively" oversubscribed, said Bowen, who is also the minister for climate change. The declining costs of batteries and solar power gave the government an opportunity to "supercharge" the transition to renewable energy, he said. Underwriting an additional 5 GW of dispatchable capacity, such as batteries, is expected to support investment of A$21 billion ($13.7 billion). A further 3 GW of wind and solar projects is expected to help to power an additional 1 million households. ($1=1.5333 Australian dollars) https://www.reuters.com/sustainability/climate-energy/australia-boosts-underwriting-scheme-renewables-meet-clean-energy-target-2025-07-29/

2025-07-29 05:34

Asian stock markets : EU stock futures, euro steady for now after retreat Wall St futures edge up before Fed, mega cap earnings Analysts warn tariffs a drag for EU and US economies Oil holds gains after Trump shortens Russia deadline SYDNEY, July 29 (Reuters) - Asia shares slipped on Tuesday while the euro nursed its losses as investors pondered the downside of the U.S.-EU trade deal and the reality that punishing tariffs were here to stay, with unwelcome implications for growth and inflation. The initial relief over Europe's 15% levy quickly soured when set against the 1% to 2% that stood before President Donald Trump took office. Leaders in France and Germany lamented the outcome as a drag on growth, pulling down stocks and bond yields across the continent while slugging the single currency. Sign up here. Trump also flagged a "world tariff" rate of 15% to 20% on all trading partners that were not negotiating a deal, among the highest rates since the Great Depression of the 1930s. "While the worst case scenario was averted, the implied EU tariff increase from 1% in January is a significant tax increase on EU exports," wrote economists from JPMorgan in a note. "This is a very big shock that unwinds a century of U.S. leadership in global free trade," they warned. "While we no longer see a U.S. recession as our baseline from this shock, the risk is still elevated at 40%." A further risk to world growth came from a sudden spike in oil prices after Trump threatened a new deadline of 10 or 12 days for Russia to make progress toward ending the war in Ukraine or face tougher sanctions on oil exports. The air of caution saw MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab slip 0.8%. Japan's Nikkei lost 0.9% (.N225) , opens new tab, while Chinese blue chips (.CSI300) , opens new tab were flat. European shares steadied after Monday's sell-off. EUROSTOXX 50 futures , FTSE futures and DAX futures all edged up around 0.2%. The euro was flat at $1.1587 , after falling 1.3% overnight in the largest drop since mid-May. It now has chart support at $1.1556. The dollar index was up at 98.675 , after the rush out of short dollar positions lifted it 1% overnight, while it eased a one-week high on the yen to stand at 148.27 . Wall Street held firm on hopes for upbeat results from mega caps this week that include Apple (AAPL.O) , opens new tab, Meta Platforms (META.O) , opens new tab, Microsoft (MSFT.O) , opens new tab and Amazon (AMZN.O) , opens new tab. S&P 500 futures nudged up 0.1%, while Nasdaq futures added 0.2%. Yields on 10-year Treasuries held at 4.408% having crept higher on Monday as markets braced for another steady decision on interest rates from the Federal Reserve. Futures imply a 97% chance the Fed will keep rates at 4.25%-4.5% at its meeting on Wednesday and reiterate concerns that tariffs will push inflation higher in the short term. Analysts also assume one, or maybe two, Fed officials will dissent in favour of a cut and supporting wagers for a move in September. The odds could change depending on a slew of U.S. data this week including gross domestic product for the second quarter where growth is seen rebounding to an annualised 2.4%, after a 0.5% contraction in the first quarter. Figures on job openings are due later on Tuesday that will help refine forecasts for the crucial payrolls report on Friday. Canada's central bank also meets on Wednesday and again is widely expected to hold rates at 2.75% as it waits to see how trade talks with the U.S. wash out. In commodity markets, prices for copper and iron ore were under pressure while gold idled at $3,315 an ounce . Brent was off a fraction at $69.90 a barrel, having climbed 2.3% on Monday, while U.S. crude held at $66.60. https://www.reuters.com/world/china/global-markets-wrapup-2-2025-07-29/

2025-07-29 04:37

July 29 (Reuters) - A look at the day ahead in European and global markets from Wayne Cole. Asian markets have been quietly picking up the pieces after the U.S./EU tariff party turned into a bust. It was like being relieved because somebody only burned half your house down. Hey, at least they left the kitchen and the bathroom. Sign up here. European stock futures are fractionally firmer and the single currency has steadied just under $1.1600. The euro's rapid retreat was not entirely a surprise given how crowded the long euro/short dollar trade had got, and the suspicion is speculators will soon be selling the dollar again. After all, come Friday U.S. consumers will be paying a minimum of 15% on all imports into the country, and for the foreseeable future. This tax will squeeze demand and profit margins at home, while eating into export earnings across the globe. These are called beggar thy neighbour policies for a reason. There's also the rather naive notion that such "deals" guarantee a period of certainty ahead. Just look how Trump suddenly gave Russia 10 to 12 days to move on a ceasefire with Ukraine, having set a deadline of 50 days earlier this month. This did not seem in any way planned. Trump just said it off the cuff at a media conference at his golf club in Scotland. If such a deadline can be changed on a whim, who's to say anything agreed in these trade deals cannot be altered at his pleasure. Trump has seen how trade and tariffs can dominate the global news cycle; there's no way he's giving that up anytime soon. Talks with China, for instance, are set to continue in Stockholm today and everybody assumes the deadline for an agreement will be extended by another 90 days. This, entirely incidentally, will allow time for Trump to meet Chinese President Xi Jinping and personally claim yet another biggest deal of all time. For its part, Wall St remains in a world of its own, counting on upbeat results from megacaps this week to justify valuation measures that are the highest since the late 1990s. Meta (META.O) , opens new tab and Microsoft (MSFT.O) , opens new tab are due on Wednesday, Apple (AAPL.O) , opens new tab and Amazon (AMZN.O) , opens new tab the day after. A slew of European companies also report earnings today. Key developments that could influence markets on Tuesday: - U.S. data on job openings, June trade balance and Conference Board consumer confidence - Fed's two-day meeting starts https://www.reuters.com/world/china/global-markets-view-europe-2025-07-29/

2025-07-29 04:19

Seoul, July 29 (Reuters) - Shares in Samsung Electronics (005930.KS) , opens new tab came under pressure on Tuesday, following a powerful rally the previous day after the South Korean technology company clinched a $16.5 billion deal to supply artificial intelligence chips to Tesla (TSLA.O) , opens new tab. Analysts said the deal could bolster the technology company's unprofitable contract manufacturing business, but Samsung faces challenges in securing additional large customers both for logic chips and memory chips where it struggles against TSMC (2330.TW) , opens new tab and SK Hynix (000660.KS) , opens new tab. Sign up here. "This new deal breathes some much-needed life into the business and may signal the start of a turning point for Samsung, but its memory business will need to make considerable progress too," Ben Barringer, global technology analyst at Quilter Cheviot, said. Samsung Electronics, the world's top memory chip maker, has suffered delays in supplying the latest high-bandwidth memory (HBM) chips to key U.S. customer Nvidia (NVDA.O) , opens new tab, a setback that has dented its profits and weighed on its stock. In its "foundry" or contract manufacturing business, where it manufactures logic chips designed by customers, Samsung remains a distant second to market leader TSMC. "Whether this will open the door for additional large customers will depend heavily on its execution," Barringer said. Shares of Samsung recovered to around flat by midday on Tuesday, versus the broader market's (.KS11) , opens new tab 0.6% gain. The shares were down more than 2 percent earlier in the session. FAVORABLE TERMS Tesla CEO Elon Musk said late on Sunday that Samsung's new chip factory in Taylor, Texas, would make the auto company's next-generation AI6 chips, likely to be used in self-driving cars, humanoid robots and data centers, without elaborating on the timing of the production. The deal comes as Samsung has struggled to win major customers for its new Texas factory, partly due to low production yields of its cutting-edge chips. "There also has to be a chance that the company was able to strike the long-term deal on favourable terms, given that Samsung needed to prove its contract manufacturing capabilities," said Russ Mould, investment director at AJ Bell. The long-term supply deal for a key technology from a U.S. factory would "lessen the risk of supply-chain dislocations or tariff friction," he said. "Samsung now needs to prove it can deliver in the right volume to the right quality for what is likely to be a demanding customer." While the deal is "more about securing the longer-term future, we won't see these in cars for at least a year or two," said Matt Britzman, senior equity analyst at Hargreaves Lansdown. https://www.reuters.com/business/autos-transportation/samsung-electronics-shares-retreat-after-tesla-deal-challenges-remain-2025-07-29/

2025-07-29 04:15

July 29 (Reuters) - UBS (UBSG.S) , opens new tab has ordered bankers to scale back sales of complex currency derivatives after its clients suffered heavy losses due to U.S. President Donald Trump's "Liberation day" tariff announcements, the Financial Times reported on Tuesday. Reuters could not immediately verify the report. Sign up here. UBS did not immediately respond to a request for comment. https://www.reuters.com/business/ubs-orders-bankers-scale-back-sale-complex-currency-products-ft-reports-2025-07-29/