2025-07-10 11:17
LONDON, July 10 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. If in doubt, latch on to artificial intelligence. Making AI-chip monster Nvidia (NVDA.O) , opens new tab the first company to be valued at $4 trillion briefly on Wednesday, investors parsing another wave of tariff hikes and confusion seem keener to look through the fog and bank on long-term themes regardless. Today's Market Minute * U.S. President Donald Trump launched his global tariff assault into overdrive on Wednesday, announcing a new 50% tariff on U.S. copper imports and a 50% duty on goods from Brazil, both to start on August 1. * Nvidia briefly reached a market capitalization of $4 trillion on Wednesday, making it the first company in the world to reach the milestone and solidifying its position as one of Wall Street's most-favored stocks. * U.S. Secretary of State Marco Rubio will meet with Southeast Asian counterparts on Thursday in his first visit to Asia since taking office, and will try to reassure them the region is a priority for Washington, even as Trump targets it in his global tariff offensive. * The planned 50% tariff on copper imports may turn out to be the biggest own goal of Trump's ongoing trade war with the rest of the world, claims ROI columnist Clyde Russell. * Trump's signature budget bill slashed funding for refilling U.S. emergency oil reserves, violating his previous vow to fill them "right to the top". This about-face raises the question of whether the U.S. still needs the Strategic Petroleum Reserve at all, writes ROI columnist Ron Bousso. $4 trillion Nvidia obscures new tariffs The second-quarter corporate earnings season kicks off in earnest next week, with consensus forecasts for annual S&P 500 profit growth just under 6% - half what was expected at the start of the year and less than half of the first quarter pace. And yet, the S&P 500 (.SPX) , opens new tab is back stalking record highs - up about 6% for the year so far - with the Nasdaq (.IXIC) , opens new tab hitting another new peak on Wednesday. All that's still lagging other world markets (.MIWD00000PUS) , opens new tab of course, especially dollar-denominated gains for Germany's record-high DAX (.GDAXI) , opens new tab of almost 40% for 2025 and almost 30% for euro stocks (.STOXXE) , opens new tab. But mid-year calm remained the order of the day. The VIX "fear index" (.VIX) , opens new tab hit a five-month low on Wednesday, while the bond market equivalent (.MOVE) , opens new tab is near its lowest for the year. This week's postponement of the July 9 U.S. tariff deadline to August 1, along with pressure to get more deals done by then, has seen many investors revert to the immediate post-election thinking on trade policy - that deals, negotiations and shifting sands, rather than hard deadlines, will dominate the trade agenda. In the latest development, U.S. and European Union negotiators moved closer to a deal. EU trade chief Maros Sefcovic said on Wednesday the European Commission had made good progress on a framework agreement with Washington, and a deal could be reached within days. Negotiators were discussing potential measures to protect the EU auto industry, according to EU officials and auto industry sources. More worryingly, U.S. President Donald Trump announced a new 50% tariff on copper imports and a 50% duty on goods from Brazil, both effective August 1 - with the former a considerable inflation concern over time given the breadth of goods with copper inputs. U.S. copper prices surged more than 10% to record highs on Wednesday, while overseas copper prices came under pressure today. But for all that inflation angst and recent debt supply jitters, Treasury demand remains surprisingly brisk, with a strong 10-year note auction yesterday helping drag yields lower as Federal Reserve meeting minutes showed splits about the timing of the next interest rate cut. While most Fed officials seem keen to delay until the tariff horizon and its inflation impact become clearer, the minutes showed two - presumed to be board members Michelle Bowman and Christopher Waller - prepared to vote for an earlier cut. Waller speaks in Dallas later on Thursday and some $22 billion of 30-year bonds go under the hammer too. The Fed meets again later this month. Fed futures expect a near 80% chance of a cut in September and two cuts are fully priced by the end of the year. The U.S. dollar index (.DXY) , opens new tab slipped back after a week of tentative gains, with the euro - still up 13% for the year - retaining a perch above $1.17. Wall St stock index futures dialed back a touch early on Thursday, but world stocks pushed higher from Asia to Europe. Chart of the day: President Donald Trump ramped up global tariff assault into overdrive on Wednesday, announcing a new 50% tariff on U.S. copper imports and a 50% duty on goods from Brazil, both to start on August 1. Trump said he issued August 1 tariff notices to seven minor trading partners that exported only $15 billion in goods to the U.S. last year: a 20% tariff on goods from the Philippines, 30% on goods from Sri Lanka, Algeria, Iraq, and Libya, and 25% on Brunei and Moldova. The latest letters add to 14 others issued earlier in the week, including 25% tariffs for powerhouse U.S. suppliers South Korea and Japan, to take effect on Aug 1. U.S. research group Yale Budget Lab estimated consumers face an effective U.S. tariff rate of 17.6%, up from 15.8% previously and the highest in nine decades. However, U.S. and EU negotiators pushed closer to a trade deal to ease tariffs on the biggest bilateral U.S.- trading partner bloc. Today's events to watch * U.S. weekly jobless claims (8:30 AM EDT) * Federal Reserve Board Governor Christopher Waller, San Francisco Fed President Mary Daly, St Louis Fed President Alberto Musalem; Bank of England Deputy Governor for Financial Stability Sarah Breeden speak * U.S. Treasury sells $22 billion of 30-year bonds * U.S. corporate earnings: Conagra Brands, Delta Air Lines Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2025-07-10/
2025-07-10 11:06
BEIJING, July 10 (Reuters) - Some China solar stocks jumped sharply on Thursday, continuing a multi-day rise on news that Beijing wants to dampen aggressive price cutting that has driven down prices of some components by nearly 30% in the year to May, according to one estimate. Overcapacity among Chinese manufacturers and price cuts made to clear stock have sparked price wars worrying analysts that more cuts could entrench deflation and hinder efforts to stabilise the $19-trillion economy. Sign up here. Shares of top manufacturer JA Solar (002459.SZ) , opens new tab rose nearly 10%, having gained 20% since July 1, when the top leaders of the world's second biggest economy vowed measures to halt the price wars in the solar and other industries. That step was followed by an industry ministry pledge on July 3 to curb price wars and phase out outdated capacity in the solar industry. Prices in the solar industry have fallen nearly 30% between May 2024 and May 2025, the Oil Price Information Service (OPIS) assessment for high-efficiency tunnel oxide passivated contact (TOPCon) modules shows. Stock prices of peers Longi Green Energy (601012.SS) , opens new tab, JinkoSolar (JKS.N) , opens new tab and Trina Solar (688599.SS) , opens new tab have risen more than 10% this month. The companies did not respond to Reuters' requests for comment. Last week Longi told state media it would commercialise high-efficiency products sooner to overcome the low-price dilemma. Polysilicon has seen an even sharper rise since the beginning of July, with stocks of Xinjiang Daqo New Energy (688303.SS) , opens new tab, and Tongwei (600438.SS) , opens new tab both up 29%. Shares of Shanghai-listed Daqo closed at 26.48 yuan ($3.69) on Thursday, their highest in nearly seven months. Daqo did not respond to an emailed request for comment and Tongwei declined to comment. "Whether solar share price rises this time will be sustainable depends on if effective policy is released," Pierre Lau, managing director of Citi, said in a note on Thursday. He added that previous initiatives to scale back excess capacity in the sector had driven up prices as much as 40% in two weeks in October 2024, to levels that ultimately proved unsustainable. Prices were also supported by unconfirmed rumours that the powerful state planner, the National Development and Reform Commission (NDRC), held meetings with polysilicon producers asking them to keep prices above cost level. NDRC did not respond to a faxed request for comment. The market price in China is less than $4.50 a kg, below most manufacturers' cash costs, says consultancy Berneuter Research. In addition, Tongwei and polysilicon producing peer GCL (3800.HK) , opens new tab were preparing a plan to set up a new company to buy up excess factory capacity, media outlet Caixin said, citing people familiar with the matter. Prices of polysilicon have risen between 18% and 21% over the last two weeks, but downstream solar manufacturers are still resisting the hikes, Citi's Lau said. https://www.reuters.com/sustainability/climate-energy/china-solar-stocks-surge-beijing-moves-calm-price-wars-2025-07-10/
2025-07-10 11:02
Another four crew members rescued in Red Sea after Greek-operated Eternity C sinks Total number of rescued by maritime security firms at 10 Eleven still missing Houthis say they hold some crew Four believed killed in attacks, which began on Monday ATHENS, July 10 (Reuters) - Rescuers pulled three more crew members and a security guard alive from the Red Sea on Thursday, maritime security sources said, a day after Houthi militants sank the Greek ship Eternity C and said they were holding some of the crew still missing. It was the second Greek bulk carrier sunk this week by the Iran-aligned Houthi militia, shattering months of relative calm off Yemen's coast, the gateway to the Red Sea and a critical route for oil and commodities to the world. Sign up here. Many shipping companies have suspended voyages due to the fear of attack. The Houthis are believed to be holding six of the Eternity C's complement of 22 crew and three guards, maritime security sources said. "We remain deeply concerned for the welfare of the crew members in the custody of the Houthis, as well as for those currently unaccounted for," Ellie Shafik, head of intelligence with UK-based maritime risk management company Vanguard Tech, said. "Their safety and swift release must be a priority for all involved." Eternity C was first hit on Monday with sea drones and rocket-propelled grenades fired from speed boats. Four people were believed to have been killed in the attacks, maritime security sources say. If confirmed, the deaths would be the first fatalities in the area since June 2024. Following a second attack on Tuesday morning, the crew were forced to jump into the water. Rescuers have been searching for survivors since Wednesday morning. The vessel's operator, Cosmoship Management, has not responded to Reuters' requests for comment. A total of 10 survivors from the Eternity C have been rescued so far - eight Filipino crew members, one Indian and one Greek security guard. The four people rescued on Thursday morning had spent nearly 48 hours in the water. "This fills us with more courage to continue to search for those missing, as the Greek vessel operator requested, and shows that our search plan was correct," said Nikos Georgopoulos, an official at the Greece-based maritime risk firm Diaplous. Another 11 people are still missing. The United States' Mission in Yemen has accused the Houthis of kidnapping crew members and has called for their immediate, unconditional release. On Wednesday, the Houthis' military spokesperson said in a televised address that the Yemeni navy had "responded to rescue a number of the ship's crew, provide them with medical care, and transport them to a safe location". FRAUGHT PASSAGE The Eternity C sank on Wednesday, days after Houthis hit and sunk the Magic Seas, reviving a campaign launched in November 2023 that has seen more than 100 ships attacked in what the group said was solidarity with the Palestinians in the Gaza war. Both of the vessels hit this week flew Liberian flags and were operated by Greek companies. All crew from the Magic Seas were rescued before it went down. Some of their sister vessels in the respective fleets had made calls to Israeli ports in the past year, an analysis of shipping data showed. The number of daily sailings through the narrow Bab al-Mandab strait, at the southern tip of the Red Sea and a gateway to the Gulf of Aden, was 32 vessels on July 9 from 43 on July 1, data from maritime data group Lloyd’s List Intelligence. The situation has become so fraught that many of the ships sailing on Thursday broadcast public messages referring to Chinese crew and management or armed guards on board, according to ship tracking data on the MarineTraffic platform. One vessel broadcast a message which said it had no relation with Israel. https://www.reuters.com/world/middle-east/rescuers-rescue-four-more-mariners-houthi-struck-ship-11-still-missing-2025-07-10/
2025-07-10 10:09
MUMBAI, July 10(Reuters) - The Indian rupee ended little changed on Thursday, as traders steered clear of aggressive directional bets on the currency, while routine dollar demand from importers blunted positive cues from an uptick in Asian peers. The South Asian currency has largely settled between 85 and 86 over the last two weeks, amid muted foreign portfolio flows and as traders await cues from ongoing U.S.-India trade. Sign up here. On the day, the rupee settled at 85.6350, barely changed from its previous close at 85.6725. Asian currencies were a tad higher on the day, while the dollar index treaded water around the 97.5 mark. As tariff threats continue to roll out of the U.S., investor sensitivity to policy changes appears to have reduced, with many wagering that the extended reciprocal tariff deadline gives countries room to negotiate. "If by then (August 1) trade negotiations with large U.S. partners aren't at an advanced stage, it will be harder to ignore the higher U.S. tariff rate," ING said in a note. "A gradual implementation of sector-specific tariffs should do much less damage to the dollar compared to sudden, 'Liberation Day'-style measures," the note added. India is also engaged in trade negotiations with the U.S. and is among the few large U.S. trading partners that have not yet received a letter from the White House declaring a reciprocal tariff rate. A delegation from India is expected to visit the United States soon for trade talks, a government official told reporters, as the two countries look to iron out disagreements over duties for auto components, steel and farm goods. https://www.reuters.com/world/india/rupee-ends-nearly-flat-importer-dollar-bids-hinder-attempts-rise-2025-07-10/
2025-07-10 09:53
MILAN, July 10 (Reuters) - Italy's competition authority (AGCM) has opened a probe into some units of British financial technology giant Revolut for alleged unfair commercial practices related to its investment and banking services, the watchdog said on Thursday. Revolut allegedly misled users, promoting investments in shares by emphasising the absence of commissions and failing to flag additional costs and limitations, AGCM said. Sign up here. Revolut said that it was fully cooperating with AGCM and would continue to do so, adding it could not comment on specific details because the probe is ongoing. "We take AGCM enquiries very seriously," it said. "Revolut remains fully committed to upholding the highest standards of compliance and customer protection in Italy and across the globe." According to the watchdog, Revolut did not make clear that its so-called zero fee products included fractional shares, which are significantly different from whole stocks in terms of voting and transfer rights. The regulator, which is in charge of policing consumer rights, added that Revolut allegedly failed to clearly tell clients with investments in crypto assets that they would not be able to change stop-loss and take-profit settings, options that usually help investors in managing risks. AGCM also said Revolut adopted an aggressive approach in suspending and blocking financial accounts, without providing customers with sufficient notice or adequate assistance. "This prevented users to access their cash and related services, even for extended periods of time," it said. The regulator and Italy's finance police carried out inspections at the Italian premises of Revolut Bank UAB on Tuesday, AGCM said in a statement. Revolut has emerged as the most successful of the handful of European fintechs founded in the past decade with a digital-only model. It was valued at $45 billion last year, rivalling big European lenders, and it has plans to expand into mortgages and consumer lending to challenge high street lenders, as well as to grow in the United States. Under Italian legislation, breaches of consumer rights rules can lead to company fines ranging from 5,000 euros to 10 million euros. https://www.reuters.com/sustainability/boards-policy-regulation/italy-probes-revolut-over-alleged-unfair-practices-investment-services-2025-07-10/
2025-07-10 09:50
US tariff impact on output, exports limited for now, BOJ says Firms fret about slumping demand, regional branch managers say Some regions already feeling strain of U.S. automobile tariffs BOJ seen cutting growth forecast in July, ex-policymaker says TOKYO, July 10 (Reuters) - Japanese companies are taking U.S. tariffs in their stride for now, but worry about a potential hit from weakening global demand, the central bank said on Thursday, signalling a prolonged pause in interest rate hikes. While some firms were delaying plans for capital expenditure, higher U.S. levies have yet to materially hurt exports and factory output, a summary of findings from a quarterly meeting of the BOJ's regional branch managers showed. Sign up here. "Many regions saw companies voice concern about slumping demand from rising U.S. sales prices and a slowdown in the global economy," the bank said. The findings, from surveys by regional branch managers, show companies unable to grasp the full potential impact of higher U.S. tariffs, due to the swift changes U.S. President Donald Trump is prone to make in trade policy. They do not reflect Trump's announcement on Monday for a raise in tariffs on Japanese goods to 25% from 10% unless a trade deal is struck by August 1, a BOJ official told reporters. The summary will be among factors the BOJ will scrutinise at its next policy meeting on July 30 and 31, when the board will issue fresh quarterly growth and price forecasts. Amid the gloom spread by the tariffs, former BOJ board member Makoto Sakurai expects the central bank to cut its growth forecasts again this month. "The BOJ probably wants to raise rates further. But given the difficult economic environment, the earliest the BOJ could resume rate hikes will be March," he told Reuters on Wednesday. After raising its policy interest rate to 0.5% in January, the BOJ cut growth forecasts in May and signalled a pause in rate hikes after Trump threatened higher tariffs. A glimmer of hope is offered by a steady inflow of tourists and a tight labour market that underpin consumption, the BOJ's Osaka branch manager, Kazuhiro Masaki, told reporters. But some regions were already showing signs of strain from the tariff of 25% on Japanese automobiles, a mainstay of the export-reliant economy. Kenji Sakuta, the manager of the BOJ's Fukuoka branch, said some automakers were shifting production to the United States and cutting export prices to swallow the cost of tariffs. "Companies are vaguely worried about the impact of U.S. tariffs, but not sure about the extent to which they could hurt profits," Sakuta told a press conference. "There's also vague hope among some firms that Japan can avert huge U.S. tariffs, which could prove elusive." Companies had a mixed outlook on wages, key to the timing of the next rate hike, with some hinting at cutting bonuses if the tariffs hurt profit, while others saw a need to hike wages to retain talent, the summary showed. Japan's economy shrank in the first quarter as rising living costs hurt consumption. Exports fell in May for the first time in eight months, stoking recession fears. A slight majority in a June Reuters poll of economists saw the bank forgoing another rate hike this year. https://www.reuters.com/business/boj-sees-us-tariff-hit-exports-limited-now-warns-gloom-ahead-2025-07-10/
