US President Donald Trump on Tuesday agreed to a 30-day delay on his tax risks against Mexico and Canada. The decision boosted US price prospects while the dollar underperformed Mexico’s peso and the Canadian dollar. The S&P prospects rose 0.4 percent on Tuesday, according to a Reuters report. The euro had briefly hit $1.0125 before falling back to $1.0320 within 24 hours. Tensions between the United States and Canada appeared high – but after two calls with Trudeau, Trump said on Truth Social that Canada “agreed to make sure we have a secure northern border, and to finally put an end to the dangerous onslaught of drugs like fentanyl.” Hong Kong up 2.5%
Hong Kong’s Hang Seng was up 2.5%, with an additional 10% tariff on Chinese products to be imposed from 0501 GMT, with electric vehicle producers leading the gain, Reuters reports.
Li Auto was the top gainer in Hong Kong, rising 8%, while sales at semiconductor maker SMIC rose more than 7% to a record high.
“All this makes us feel that this is not a very strong system. There is no need to put too much emphasis on it,” he said.
European markets up 0.2%
European markets rose 0.2%, Reuters reported. Oil, which had been bouncing, fell and Brent crude oil prices at $75.46 were near a one-month low. On the other hand, bitcoin, which had fallen to near $91,000 a day earlier, was trading at around $102,000.
“We get the sense that Trump is still using the same process or strategy — promoting extremely weak taxes, but leaving room for the system,” Steven Leung, who handles organization business at stockbroker UOB-Kay Hian in Hong Kong, told Reuters.
“I think you can sense what we have to get extremely used to, which is such a rollercoaster of an open system around taxes and other approaches,” said Ross Mayfield, investment process examiner at Baird in Louisville, Kentucky.
Australian shares rose 0.4% and Japanese shares added 1.7%, although the bounce was less than Monday’s plunge as financial markets were rattled by trade-war fears.
The oceanic yuan has climbed back to 7.3112 per dollar, weakening from 7.3765, despite the fact that Chinese markets remained closed for the lunar holiday.
The Australian dollar stood at $0.6206 after falling to $0.6088 on Monday. The yen, seen as a safe haven, rose 0.3% to 155.18 per dollar.
Gold hit a record high on Monday as global exchange war tensions pushed investors to safety. It traded near $2,813 an ounce on Tuesday, while Treasury yields fell slightly as prospects for a new Treasury yield left markets divided on whether the U.S. will have two or a single interest rate cut this year.