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/

2025-07-23 02:22

America Movil's earnings surpass analysts' forecasts Q2 swings to $1.19 billion profit after loss a year ago Group points to FX gains, more post-paid mobile users US tariffs helped weaken dollar versus many Latam currencies MEXICO CITY, July 22 (Reuters) - Mexican telecoms giant America Movil (AMXB.MX) , opens new tab reported on Tuesday a swing to profit in the second quarter of 2025, surpassing analysts' forecasts and fueled by foreign exchange gains from currencies across Latin America. Analysts are scrutinizing the firm's earnings results for clues to the landscape of toughening competition in Mexico, the region's second-largest economy, where rivals such as Walmart (WALMEX.MX) , opens new tab and Televisa (TLEVISACPO.MX) , opens new tab jostle for subscribers. Sign up here. America Movil pointed in a report to 11 billion pesos in FX gains - equivalent to half its net profit - which it said had allowed it to "significantly" cut down its financing costs. Net profit for the group, controlled by the family of Mexican billionaire Carlos Slim, hit 22.28 billion pesos ($1.19 billion) in the three months through June, rebounding from a loss of 1.09 billion pesos in the corresponding quarter a year earlier. Analysts polled by LSEG had expected profit of $1.13 billion. Revenues for the firm, which operates across Latin America and Europe, rose 14% to 233.79 billion pesos, or $12.46 billion, also above analysts' forecast of $12 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11% to 92.41 billion pesos. Scotiabank analysts hailed the Mexico revenues of America Movil as "remarkably resilient in light of a weak economy" and competition, adding that they believed fixed internet rivals would hit back with price cuts and improved speed and quality. Such competition is highlighted by the efforts of retail giant Walmart's (WMT.N) , opens new tab mobile service Bait, which added 1.7 million new active users versus the prior three months, while broadcaster Televisa's (TLEVISACPO.MX) , opens new tab broadband service swept in thousands of new customers. WEAKER PESO, STRONG FX GAINS America Movil said its revenue, reported in Mexican pesos, was also boosted by the currency's depreciation against most others in the regions where it operates. "The second quarter was characterized by significant uncertainty associated with the tariffs that the U.S. government seeks to impose on merchandise imports," it said. As a result, it added, the U.S. dollar also weakened against most currencies in the company's operating region. America Movil said mobile services growth was driven by its post-paid segment, which added 2.9 million customers in the three months through June, including 1.4 million from Brazil. Its pre-paid platform, however, was hit by 1.1 million net disconnections, though the firm added 462,000 new broadband connections, half in its home market of Mexico. Scotiabank analysts also pointed to a "rare" inflow from the group's pension funding in the second quarter, which they said was unlikely to continue due to union tensions over company plans to convert pension liability into stock. ($1=18.7654 pesos at end-June) https://www.reuters.com/business/media-telecom/telecoms-giant-america-movil-swings-profit-foreign-exchange-gains-2025-07-22/

2025-07-23 00:43

Asian shares cheers Trump announcement of Japan trade deal U.S.-China officials to discuss trade deal extension in Stockholm Wall Street mixed as tariffs impact corporate earnings SYDNEY, July 23 (Reuters) - Japanese shares led an Asian share market rally on Wednesday after U.S. President Donald Trump announced a trade deal with Japan and fuelled hopes of more to come, offsetting mixed U.S. earnings that highlighted the drags from higher tariffs. Trump late on Tuesday announced a trade deal with Tokyo that he said will result in Japan investing $550 billion into the United States and paying a 15% reciprocal tariff. 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. "Though details are not yet available, it is commendable that the 25% baseline tariff was avoided," Norihiro Yamaguchi, senior Japan economist at Oxford Economics. "In the short run I think lowered uncertainty will be welcomed in the equity market. But global trade policy uncertainty will remain high, meaning that today's conclusion will provide little upside to the real economy." The U.S. president also said representatives from the European Union are coming for trade negotiations on Wednesday. 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. Japan's Nikkei (.N225) , opens new tab rose 1.7% on Wednesday as shares of automakers surged. Mazda Motor (7261.T) , opens new tab rallied 12% while Toyota Motor (7203.T) , opens new tab jumped 10%. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab advanced 0.2% underpinned by higher openings in Australia (.AXJO) , opens new tab and South Korea (.KS11) , opens new tab. The yen initially gained on the news, but was last flat at 146.68 per dollar. Nasdaq futures climbed 0.1% and S&P 500 futures gained 0.2% in Asia. Overnight, Wall Street closed mixed as investors assessed a spate of varied earnings and signs that Trump's trade war is hitting corporate 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 now waiting for results from Tesla (TSLA.O) , opens new tab and Google's parent Alphabet (GOOGL.O) , opens new tab - the Magnificent 7 stocks that have driven much of the market rally fuelled by AI optimism. In the foreign exchange market, the dollar index was flat at 97.45 against its major peers, having slipped 0.4% overnight to mark the third straight day of declines. Benchmark 10-year U.S. Treasury yields ticked up 2 basis points to 4.3579, after slipping 3 bps overnight, as Trump continued to lash out at Federal Reserve Chair Jerome Powell for not cutting interest rates, although Bessent said there was no need for him to step down immediately. Bessent did say the Fed's vital independence on monetary policy is threatened by its "mandate creep" into non-policy areas and he called on the U.S. central bank to conduct an exhaustive review of those operations. Spot gold prices were steady at $3,429 an ounce. https://www.reuters.com/business/autos-transportation/global-markets-wrapup-1-2025-07-23/

2025-07-23 00:41

SAO PAULO, July 22 (Reuters) - Brazilian miner Vale (VALE3.SA) , opens new tab produced 83.6 million metric tons of iron ore in the second quarter, up 3.7% from a year earlier, the company reported on Tuesday. In its output and sales report, Vale said the increase was mainly driven by a new second-quarter record at the S11D mining project in northern Brazil, its top iron ore producer, and "strong performance" at its southeastern Brucutu mine. Sign up here. "In iron ore, the combination of new assets ramping up and greater operational reliability is supporting stronger adherence to the 2025 production plan," Vale said. The company, one of the largest iron ore producers in the world, expects to produce between 325 million and 335 million tons of iron ore this year. Citi analysts including Alexander Hacking said Vale posted a "solid quarter", noting the firm is "on track to meet (its) guidance". "We expect the stock to trade inline tomorrow," they added. Vale reported iron ore sales at 77.3 million tons in the quarter, down 3.1%, with the company's average realized price of iron ore fines landing at $85.1 per ton, a 13.3% fall. Vale said the sales were impacted by its portfolio optimization strategy to prioritize its medium-grade product offering, and also cited stock replenishment. BASE METALS Vale's copper production rose nearly 18% in the period to about 92,600 tons, it said, pointing to higher grades achieved at Brazil's Sossego plant, nominal capacity at its Salobo complex, also in Brazil, and the ramp-up of the Voisey's Bay project in Canada. Copper sales rose 17% to some 89,000 tons, Vale said. Meanwhile, nickel production increased some 44%, reaching about 40,300 tons, which Vale attributed to better performance of its Canadian assets and its Onca Puma mining project in Brazil, as well as "lower planned maintenance activity". Nickel sales rose nearly 21% to about 41,400 tons. Vale is set to release full second-quarter earnings on July 31. https://www.reuters.com/world/americas/vales-iron-ore-output-up-4-with-record-q2-key-mine-2025-07-23/