The US dollar is traded near its highest level of two and a half weeks over the main currencies, while the price of copper reached a historic peak at night after US President Donald Trump expanded his World Trade War, declaring 50% duty on metal.
Trump has also said that duties on semiconductors and pharmaceuticals will soon be imposed, which weighed on Wall Street on Tuesday, with futures pointing to further weakness on Wednesday, Reuters reported. At the same time, the exchanges in the Asia-Pacific region performed mixed as investors evaluated another unpredictable commercial action by Trump.
Japan and South Korea are among the major US trading partners in the region, facing a deadline for August 1 to conclude a trade agreement or application of new customs rates, although Trump sends conflicting signals about that date.
On Monday, he stated that the deadline was “firm but not 100%”, intensifying the conception of some market participants, that the deadlines were rather a negotiation tactics from which the president could ultimately retreat. But on Tuesday, he seems to reinforce his position, saying, “No extensions will be given.”
The Nikkei Index of Japan increased by 0.3%and the South Korean Kospi added 0.5%. Chinese blue -pointed companies also increased by 0.3%.
At the same time, the Australian index dropped by 0.5%and the Hong Kong Hang Seng lost 0.7%. The Paneuropean Futures of Stoxx 50 increased by 0.3%.
The futures of the US S&P 500 gave up by 0.1%after the live index (.px) also dropped by 0.1%on Tuesday, prolonging the loss by 0.8%earlier of the week.
“Delaying the imposition of new duties on some of the US major trading partners for August 1, simultaneously postponed the problem and reinforced the idea that higher tariffs are rather a negotiating move,” wrote Kyle Rodda, a senior analyst in the financial markets at capital.com.
“As a result, the markets are waiting and looking for a stronger catalyst for the next movement.”
Trump said on Tuesday that negotiations were going well with the European Union and China, but added that it was only days from sending a letter to the EU.
So far, the United States has only reached two agreements – with the UK and Vietnam – since on April 2, Trump announced the “Liberation Day” with reciprocal tariffs that shook the markets. In June, Washington and Beijing agreed on a framework on tariffs.
Metals and currencies
The US Futures in the United States jumped over 10% to a record high after Trump threatened with new duties on metal vital for electric vehicles, military equipment, electricity transmission network and many consumer goods. The tariff will join the already existing steel, aluminum and cars.
In contrast, copper futures in London and Shanghai fell on Wednesday, as traders may not have enough time to send significant quantities to the United States after Trump’s sudden statement.
Trump also threatened with 200% duties on the import of drugs, which he said could be delayed for about a year.
The US dollar continued its recent boom on Wednesday, climbing to its highest level from June 20-147.19 Japanese yen.
The dollar index, which measures its value to the yen and five other currencies, has risen to 97.602, after touched the highest level on Tuesday from June 25-97.837.
The euro slightly weakened to $ 1.1715, and the British pound remained stable to $ 1.3591.
Gold lost another 0.3%, falling to $ 3.292 per ounce, after a decrease of more than 1% on Tuesday.
Oil prices have receded from their two -week peaks since Tuesday. The Brent Futures fell 22 cents to $ 69.93 for Barrel, and the American light raw oil (WTI) fell by 23 cents to $ 68.10 for Barrel.
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