(Reuters) -A have a look at the day forward in European and international markets from Wayne Cole.
Effectively, that is as clear as mud. Apparently August 1 is now the U.S. deadline for when increased tariffs shall be imposed on some international locations if no commerce offers are achieved, or underneath manner. It is probably not sure which international locations that covers, or which offers.
“President Trump‘s going to be sending letters to a few of our buying and selling companions saying that, when you do not transfer issues alongside, then on August 1, you’ll boomerang again to your April 2 tariff degree,” Treasury Secretary Bessent instructed CNN.
The “letters” are going out to 10 or 12 international locations at present, presumably the identical letters that had been presupposed to go final Friday.
Commerce Secretary Howard Lutnick instructed reporters that the upper tariffs would take impact on August 1, however Trump was “setting the charges and the offers proper now”.
Asserting commerce coverage modifications in TV interviews doesn’t make for readability, and now it is unsure if the unique July 9 deadline issues, and for whom.
India and the U.S., as an example, reportedly might make a mini-deal at present or tomorrow, however then proceed talks after July 9. Based on Bessent, it additionally appears many international locations did not hassle to contact the U.S. for talks – and can doubtless be getting stiff letters in return.
Trump added to the confusion by mentioning that some tariffs might attain 60% or 70%, increased even than the 50% set on China. He additionally threatened an additional 10% tariff on international locations aligning themselves with the “anti-American insurance policies” of the BRICS, a bunch the U.S. itself is in tariff talks with.
Buyers have reacted with bemusement and nudged Wall St futures down 0.4% or so. Asian share indices are largely decrease on Monday, although not by a lot, whereas Treasury yields are down a foundation level and the greenback caught close to four-year lows.
Oil has been the large mover, dropping round 1% after OPEC+ stunned by rising manufacturing by far more than first anticipated, and flagging an analogous enhance for September.
Analysts largely see this as Saudi Arabia placing the squeeze on higher-cost producers to seize market share, with low-margin U.S. shale output underneath specific stress. It is OPEC’s reply to “Drill, child, drill”.
Key developments that would affect markets on Monday:
* EU retail gross sales for Might, Sentix investor confidence forJuly; German industrial output for Might * Participation by ECB President Christine Lagarde and ECBboard member Piero Cipollone in Eurogroup assembly in Brussels;ECB’s Holzmann Communicate
(By Wayne Cole; Modifying by Christopher Cushing)
