2025-07-23 05:52

Euro STOXX 600 adds 1%; auto shares jump Asia, EU shares relieved by US-Japan trade deal U.S.-China to discuss tariff extension in Stockholm Wall Street restrained ahead of Google, Tesla results LONDON/SYDNEY, July 23 (Reuters) - European shares climbed on Wednesday, buoyed by hopes of a trade agreement between the European Union and United States after Japan struck a deal that lowers tariffs on its autos, sending Japanese stocks to a one-year high. President Donald Trump on Tuesday said a trade deal with Tokyo will include Japan paying a lower-than-threatened 15% tariff on shipments to the U.S. It followed an agreement with the Philippines that will see the U.S. collect a 19% tariff rate on imports from there. Sign up here. Trump also said EU representatives were coming for trade negotiations on Wednesday. That stirred hopes for a deal with Europe, even as the EU was reportedly refining countermeasures in case of a deadlock before the August 1 deadline. Euro STOXX 600 (.STOXX) , opens new tab jumped 1%, with auto shares (.SXAP) , opens new tab surging 3.6%. UK shares (.FTSE) , opens new tab hit a record high, climbing 0.5%. The trade deal news has "raised hopes that the U.S. might be about to reach deals with other countries that avoid the higher tariffs on August 1," Deutsche Bank analysts wrote in a note. On Wall Street, S&P 500 futures were up 0.2%, while Nasdaq futures added 0.1%. Japan's Nikkei (.N225) , opens new tab climbed 3.7% as automaker shares surged on news the deal would cut the U.S. auto tariff to 15%, from a proposed 25%. Mazda Motor (7261.T) , opens new tab rose 18%, while Toyota Motor (7203.T) , opens new tab jumped 14%. South Korean automakers also rose as the Japan deal fuelled optimism over potential progress in tariff negotiations between South Korea and the United States. The dollar remained weak, having lost ground overnight. It traded flat at 146.71 yen after sliding 0.5% on Tuesday. The dollar index , which tracks the currency against major peers, was little changed at 97.48. Analysts noted the trade deal reduced a major risk to the fragile Japanese economy, providing more scope for the Bank of Japan to raise interest rates to fight inflation. That hit the bond market, with yields for 10-year JGBs rising 8.5 basis points to 1.585%. Japan's Prime Minister Shigeru Ishiba denied reports he planned to step down following a bruising upper house election defeat. Ishiba said media reports that he had already decided to resign were "completely unfounded." EXTENDED DEADLINES In another positive development, U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the August 12 deadline for negotiating a trade deal, Treasury Secretary Scott Bessent said. Chinese blue-chips (.CSI300) , opens new tab rose 0.7% before losing steam, and MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab added 1.2%. U.S. corporate earnings reports were showing signs that Trump's trade war was hitting profit margins. General Motors (GM.N) , opens new tab tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results. Investors are awaiting results from Tesla (TSLA.O) , opens new tab and Google's parent Alphabet (GOOGL.O) , opens new tab - two of the Magnificent 7 stocks that have driven much of the market rally fuelled by AI optimism. Elsewhere, the euro dipped 0.1% to $1.1737, after rising 0.5% the previous day. The European Central Bank is expected to hold rates steady on Thursday after eight consecutive rate cuts. Oil prices nudged higher, helped by rising prices for diesel in the U.S., where stockpiles are at their lowest levels for this time of the year since 1996. U.S. crude rose 0.3% to $65.48 per barrel, while Brent was at $68.77 per barrel, up 0.2%. https://www.reuters.com/business/autos-transportation/global-markets-wrapup-4-2025-07-23/

2025-07-23 05:50

OSLO, July 23 (Reuters) - Norway's Equinor (EQNR.OL) , opens new tab said on Wednesday it booked a $955 million impairment on an offshore wind project in the United States, despite the lifting of an earlier ban on its construction by President Donald Trump's administration. In April, Interior Secretary Doug Burgum said the administration of former President Joe Biden had failed to conduct enough environmental analysis ahead of approving the Empire Wind development in New York state. Sign up here. He shut down the project, dealing a blow to the U.S. offshore wind industry. But a month later, Burgum lifted the stop-work order on the project, in a compromise with the state that could also see cancelled plans for a gas pipeline revived. On Wednesday, Equinor's reported net operating income for the second quarter fell due to having to book a near-billion dollar impairment on its U.S. offshore wind projects. "This is impacted by an impairment of $955 million due to regulatory changes causing loss of synergies from future offshore wind projects and increased exposure to tariffs," Equinor said in a statement on Wednesday. "Of this, $763 million is related to Empire Wind 1/South Brooklyn Marine Terminal project and the remainder is related to the Empire Wind 2 lease." Equinor, majority-owned by the Norwegian state, had won a federal lease for Empire Wind in 2017 under Trump's first administration and secured approval for its investment plans during Biden's time in the White House in 2023. But on the first day of his second term in January this year, Trump ordered a review of offshore wind permitting and leasing, although many analysts had still believed fully-permitted projects to ultimately be safe. The total book value after the latest impairments was $2.3 billion, it said on Wednesday. With a planned installed capacity of 810 megawatts, the project could generate enough electricity to power half a million homes a year and was expected to begin operating in 2027. Equinor on Wednesday reported declining core second-quarter results, as expected, due to lower oil prices. https://www.reuters.com/sustainability/climate-energy/equinor-makes-955-million-us-offshore-wind-writedown-2025-07-23/

2025-07-23 05:47

SINGAPORE/NEW DELHI, July 23 (Reuters) - A tanker will not load fuel from India's sanctions-hit Nayara Energy refinery as scheduled, according to three industry sources and LSEG shiptracking data, becoming the second such vessel to change plans following the European Union strictures. Nayara Energy, which is partly-owned by Russia's largest oil producer Rosneft (ROSN.MM) , opens new tab, fell foul of a fresh package of sanctions imposed on Friday by the European Union over Russia's war on Ukraine, begun in February 2022. Sign up here. The Chang Hang Xing Yun is now tentatively set to load about 35,000 metric tons (260,750 barrels) of ultra-low sulphur diesel from Kuwait on August 1 before heading to east Africa, according to data from LSEG shiptracking and a shipping source on Wednesday. It was previously scheduled to load about 35,000 tons of diesel from July 29 to 31 at Nayara Energy's Vadinar port, with the cargo bound for either Southeast Asia or Chittagong in Bangladesh, chartered by PetroChina, Reuters had reported. Petrochina and Nayara Energy did not immediately respond to requests for comment. The ship was still positioned off the west coast of India on Wednesday. Earlier, the tanker Talara chartered by BP left Nayara Energy's Vadinar port without loading, Reuters reported on Tuesday. On Monday, Nayara Energy said it condemned the EU's "unjust and unilateral" decision to impose sanctions on it, while India also has said it did not support the bloc's sanctions. https://www.reuters.com/business/energy/second-tanker-skip-fuel-lifting-sanctions-hit-nayara-sources-say-2025-07-23/

2025-07-23 05:25

Japan to invest $550 billion in U.S., tariffs reduced to 15% Uncertainty over tariffs keeping forex market on edge Yen wavers as investors weigh Ishiba resignation, trade deal Japan's auto industry and rice imports were key negotiation points TOKYO, July 23 (Reuters) - The dollar struggled on Wednesday, while the yen was choppy after U.S. President Donald Trump announced a trade deal with Japan, bolstering optimism for more agreements ahead of an impending tariff deadline. The U.S. currency has been one of the biggest losers since Trump announced sweeping tariffs on trading partners on April 2, only to delay and suspend most of the duties as his administration sought bilateral trade deals. Sign up here. The yen hit its strongest level since July 11 at 146.20 per dollar on the trade news but flipped to losses after a report that Japanese Prime Minister Shigeru Ishiba intends to step down next month. It last fetched 146.92. In a post on Truth Social, Trump said that a tariff rate of 15% was set on imports from Japan, down from the 25% rate that was expected to take effect from August 1, and added the Asian nation will invest $550 billion in the United States. "Dollar softness seems to be our opening proposition," said Michael McCarthy, Market Strategist at Moomoo Australia. "Clearly, there's some dovishness infecting the market at the moment around the U.S. dollar and we're seeing that in the bond markets too." The dollar index , which tracks the greenback against major peers, was at 97.48 after a three-day decline, hovering near its lowest level since July 10. The gauge has lost 6.6% since Trump's "Liberation Day" tariff announcement on April 2. U.S. Treasury Secretary Scott Bessent said on Monday the administration is more concerned with the quality of trade agreements than the timing. Asked whether the deadline could be extended for countries engaged in productive talks with Washington, Bessent said Trump would make that decision. Uncertainty over the eventual state of tariffs globally has been a huge overhang for the foreign exchange market, leaving currencies trading in a tight range for the most part, even as stocks on Wall Street have scaled fresh highs. Japan's all-important auto industry and rice imports were sticking points in protracted trade talks with the U.S. In his post on Truth Social, Trump said Japan would open to trade for U.S. cars, trucks, rice and certain agricultural products, among other items. Ishiba told reporters in Tokyo that the deal would set a 15% tariff on imports of Japanese vehicles. Ishiba, whose ruling coalition lost its majority in upper house elections on Sunday, will announce his resignation by the end of next month, Japanese media reported on Wednesday. The trade deal with Japan could pave the way for more deals, including with Europe. Trump said negotiators from the European Union would be in Washington on Wednesday. The news boosted the Australian and New Zealand dollars, although sentiment remained cautious. The Aussie firmed 0.19% to $0.6568, while the kiwi gained 0.25% to $0.60175. Sterling was little changed at $1.3527 . The euro stood at $1.1737 , down 0.15% but still near a four-year high it touched at the start of the month. The single currency has surged over 13% this year as investors looked for alternatives to U.S. assets. The European Central Bank is expected to hold rates steady on Thursday after eight consecutive rate cuts, with the prospect of steeper-than-expected U.S. tariffs looming. Also weighing on investors' minds were worries about Federal Reserve independence, given Trump has repeatedly railed against Chair Jerome Powell and urged him to resign because of the central bank's reluctance to cut interest rates. Bessent on Monday took a softer stance, saying there is no need for Powell to step down immediately, adding that he should see through the end of his term in May if he wants. https://www.reuters.com/world/africa/dollar-holds-losses-after-trump-announces-japan-trade-deal-yen-wobbles-2025-07-22/

2025-07-23 04:32

A look at the day ahead in European and global markets from Stella Qiu Just as U.S. corporate earnings are starting to show some negative impact from higher tariffs, President Donald Trump stole market attention by announcing a trade deal with Japan, pleasantly surprising investors. Sign up here. That had everyone hoping for more - certainly the prospects of an agreement between the U.S. and the European Union have improved now, with representatives from the 27-member bloc coming to Washington for more talks on Wednesday. European stock futures rose 1.1% as a result of the optimism. South Korea is studying the Japan deal as its officials fly to the U.S. for more trade talks. U.S. and Chinese officials are meeting next week in Stockholm to discuss an extension to the tariff deadline. The Japan deal included reduced 15% tariffs for auto exports to the U.S., down from 25% before. That lifted shares of Japanese automakers, with Toyota Motor (7203.T) , opens new tab jumping 15% and Mazda Motor (7261.T) , opens new tab rallying 17%. The broader benchmark Nikkei (.N225) , opens new tab soared 3.2% to the highest in a year, while the benchmark 10-year Japanese government bond yield jumped 9 basis points as the reduced uncertainty helped to clear the path for the Bank of Japan to resume interest rate hikes. The dollar initially dipped against the yen but was last up 0.2% to 146.9 yen after the local Mainichi newspaper reported Prime Minister Shigeru Ishiba has made up his mind to resign following losses in Sunday's upper house election. Trade news aside, investors will be watching earnings reports later in the day from Tesla (TSLA.O) , opens new tab and Google's parent Alphabet (GOOGL.O) , opens new tab, two of the Magnificent 7 stocks that have driven much of the market rally due to AI optimism. So far, U.S. earnings have been mixed as investors scrutinise them for any signs of a slowdown in the U.S. economy and impact from Trump's tariffs. General Motors (GM.N) , opens new tab tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results. Key developments that could influence markets on Wednesday: - Eurozone consumer confidence flash for July - U.S. earnings from Alphabet, Tesla, IBM https://www.reuters.com/world/china/global-markets-view-europe-2025-07-23/

2025-07-23 03:12

MUMBAI, July 23 (Reuters) - The Indian rupee is expected to open largely unchanged on Wednesday, shrugging off the modest boost to its Asian peers after a U.S.-Japan trade deal fuelled hopes that Washington may strike similar agreements with other countries. The 1-month non-deliverable forward indicated the rupee will open in the 86.35-86.38 range versus the U.S. dollar, compared with 86.3675 on Tuesday. Sign up here. The rupee will "receive mild help" at open on account of Asia, a currency trader at a Mumbai-based bank said. "However, dips (on USD/INR) have been bought into quickly and the odds favour a repeat of that," he said, adding, "I will definitely not be looking to sell USD/INR currently." On Tuesday, the rupee briefly recovered to 86.22 before slipping to a one-month low of 86.4125 on likely outflows and hedging. The currency has declined in seven of the last eight sessions, dropping 0.7% so far this month. Shares in Tokyo jumped and U.S. equity futures rose after U.S. President Donald Trump announced a trade deal with Japan, lowering proposed tariffs on Japanese imports to 15% from 25%. The agreement lifted the yen and other Asian currencies. The U.S.-Japan deal comes just days ahead of the August 1 deadline set by Trump for finalising trade agreements or face steep tariffs. The scheduled rollout of the reciprocal tariff on 1 August "looms large", MUFG Bank said in a note. "In the absence of new US trade deals, there's a risk that tariff levels could revert to the steeper rates announced during Liberation Day in April. This uncertainty is weighing on the U.S. dollar." On Tuesday, Trump announced a new 19% tariff on goods from the Philippines, just below the 20% rate he had previously threatened to impose. India, meanwhile, has yet to reach a trade agreement with the United States and the prospects of an interim trade deal before the August 1 deadline have dimmed. KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.40; onshore one-month forward premium at 11.75 paise ** Dollar index at 97.48 ** Brent crude futures up 0.4% to $68.8 per barrel ** Ten-year U.S. note yield at 4.36% ** As per NSDL data, foreign investors sold a net $125.8 million worth of Indian shares on July 21 ** NSDL data shows foreign investors sold a net $8.9 million worth of Indian bonds on July 21 https://www.reuters.com/world/india/muted-open-rupee-despite-asia-cheer-us-japan-trade-pact-2025-07-23/