Stocks and euro jump on Trump EU tariff delays
From Yahoo Finance: 2025-05-25 22:15:00
Global markets rose as Trump delayed 50% tariffs on EU goods to July, easing trade tensions. MSCI’s index climbed 0.2%, European stocks rebounded .9%, and the dollar fell 0.1%. Trump’s unpredictable policies drove investors to Europe and Asia, anticipating a possible U.S. recession and global slowdown. Analysts expect the dollar to weaken and U.S. interest rates to rise.
The euro gained against the dollar, reaching $1.1380, while the pound rose to 1.3567. Trading volumes were thin with U.S. and UK markets closed. Moody’s U.S. credit downgrade and weak debt auctions in the U.S. and Japan raised concerns about ballooning debt levels. Inflation reports from Japan and Germany are expected later this week.
China and Hong Kong stocks fell on Monday due to concerns of a price war in the automobile sector and potential U.S. tariffs on Apple suppliers. Shanghai Composite dropped 0.1% and CSI300 index fell 0.6%. Japan’s Nikkei 225 surged 1% after Trump signaled approval for Nippon Steel’s takeover of U.S. Steel. Japanese government bonds rallied, with a focus on super-long bonds and upcoming inflation data. Brent and U.S. crude prices traded lower, while gold eased from a two-week high.
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