Stock futures dip after Trump slaps tariffs on | Money News

By Stella Qiu

SYDNEY (Reuters) -U.S. and European stock futures dipped in Asia on Friday after President Donald Trump stepped up tariff threats in opposition to Europe and Canada, restraining an early rally in regional share markets.

The greenback gained on the euro and the Canadian currency as Trump issued a letter late on Thursday that a 35% tariff fee on all imports from Canada would apply from August 1, including the European Union would obtain a letter by Friday.

The U.S. president, whose world wave of tariffs has upended companies and policymaking, floated a blanket 15% or 20% tariff fee on different nations, a step up from the present 10% baseline fee.

Both Nasdaq futures and S&P 500 futures fell about 0.4%. EUROSTOXX 50 futures additionally dropped 0.4%.

The euro slipped 0.2% to $1.1676, whereas the greenback gained 0.3% to C$1.3695.

Earlier within the week, Trump pushed back his tariff deadline of July 9 to August 1 for a lot of trading companions to permit more time for negotiations, however broadened his commerce warfare, setting new charges for a quantity of nations, together with allies Japan and South Korea, together with a 50% tariff on copper.

Joseph Capurso, head of worldwide economics on the Commonwealth Bank of Australia, mentioned the tariff fee of 35% on Canada just isn’t as unhealthy as feared as a result of most of the imports are nonetheless subject to exemptions beneath the United States-Mexico-Canada Agreement (USMCA).

“Now the tariff rate on imports from the EU… That’s what we don’t know as yet… The potential escalation between the EU and the US is a big deal for financial markets,” mentioned Capurso.

“If you get something similar to (the U.S.-China trade war in April), that’s going to be very destabilising.”

Overnight, Wall Street indexes rose modestly however posted document closing highs as chip giant Nvidia made historical past with a closing market valuation above $4 trillion.

The MSCI’s broadest index of Asia-Pacific shares exterior Japan wobbled however was final up 0.5% on Friday. That introduced the weekly gain to 0.7%.

Tokyo’s Nikkei reversed earlier positive aspects to be off 0.1%, and is set for a weekly drop of 0.6%. It was dragged decrease by an nearly 7% drop in shares of Uniqlo proprietor Fast Retailing after it warned of a vital tariff impression.

China’s blue chips rose 0.5%, whereas Hong Kong’s Hang Seng index rallied 1.3%.

Investors are gearing up for second-quarter U.S. company earnings subsequent week to gauge the impression of Trump’s commerce warfare launched along with his “reciprocal” tariff announcement on April 2. JPMorgan Chase is because of release outcomes on Tuesday, primarily kicking off the reporting period.