Global shares mostly fell Monday as the Trump administration stepped up pressure on trading partners to quickly make new deals before a Wednesday tariff deadline, with plans for the United States to start sending letters warning countries that higher tariffs could kick in Aug 1.
In early European trading, Britain’s FTSE 100 was down 0.2 per cent to 8,809.23 while Germany’s DAX added 0.3 per cent to 23,854.32. In Paris, the CAC 40 edged down 0.1 per cent to 7,688.34.
Japan’s Nikkei 225 shed 0.6 per cent to 39,587. 68 while Hong Kong’s Hang Seng index edged down 0.1 per cent to 23,887.83.
South Korea’s KOSPI index rose 0.2 per cent to 3,059.47 while the Shanghai Composite Index edged 0.1 per cent higher to 3,473.13. Australia’s S&P ASX 200 fell 0.2 per cent to 8,589.30.
Oil prices also fell after OPEC+ agreed on Saturday to raise production in August by 548,000 barrels per day, accelerating output increases since oil prices jumped, then retreated, in the aftermath of Israel and US attacks on Iran.
US benchmark crude was down 71 cents to $66.29 per barrel. Brent crude, the international standard, shed 41 cents to $68.39 per barrel.
US shares were set to drift lower with S&P 500 futures declining 0.4 per cent to 6,295.50 and Dow futures down 0.2 per cent at 45,012. “We expect markets to be volatile into the 9-July deadline when the 90-day pause on President Trump’s reciprocal tariffs expires for non-China trading partners,” the Nomura Group wrote. It said the near-term outlook will likely hinge on several key factors.
A more distant implementation date might leave scope for some last-minute trade negotiations and maintain market optimism for potential resolutions or extensions, it added.
“With the July 9 tariff deadline fast approaching, all eyes are trained on Washington, scanning for signs of escalation or retreat. The path forward isn’t clear, but the terrain is littered with risk,” Stephen Innes, managing partner at SPI Asset Management said in a commentary.
On Thursday, a report showed the US job market performed stronger than Wall Street expected. The S&P 500 rose 0.8 per cent and set an all-time high for the fourth time in five days. The Dow Jones Industrial Average added 344 points, or 0.8 per cent, and the Nasdaq composite gained 1 per cent.
In other dealings Monday, the US dollar rose to 145.18 Japanese yen from 144.