US stocks mostly lower as Trump adds copper, pharma to tariff onslaught / Photo: Tomohiro Ohsumi - POOL/AFP
US stocks mostly lower as Trump adds copper, pharma to tariff onslaught
Europe eked out small gains but Wall Street mostly fell Tuesday as President Donald Trump added tariff threats on copper and pharmaceuticals to his broadening trade agenda.
Trump announced plans for a 50 percent duty on copper imports and a potential 200 percent levy on pharmaceuticals a day after the White House sent letters to Japan, South Korea and other countries about tariffs to kick in August 1.
The announcement set off a surge in copper prices, which vaulted around 10 percent in New York, setting off a new record for the metal.
The effect on equities was more muted. Both the Dow and S&P 500 finished modestly lower after a rollercoaster day, while the Nasdaq was flat.
In contrast to Trump's spring tariff announcements, which sent equities sharply lower, the market is "somewhat shaking it off," said Victoria Fernandez of Crossmark Global Investments, who noted Trump's record of tempering tariffs that were initially severe.
The market is in a "wait and see mode," Fernandez said.
EToro US investment analyst Bret Kenwell sees investors as being torn between risk and opportunity.
"While trade tension may be on the rise again, investors should remember that we're just one session removed from record highs in the S&P 500 and Nasdaq," he said.
Asian equity markets ended mostly higher, including a 0.3 percent gain in Tokyo following the threatened 25 percent US levy on Japan.
"Tokyo's resilience suggested that investors are treating the move as a headline risk rather than a market-altering shock -- at least for now," said David Morrison, senior market analyst at Trade Nation.
Wendy Cutler, vice president at the Asia Society Policy Institute, said the levies on Japan and South Korea "will send a chilling message to others."
"Both have been close partners on economic security matters," she said, adding that companies from both countries had made "significant manufacturing investments in the US in recent years."
The dollar was trading mixed against main rivals while oil prices recovered from earlier dips as Brent crude clambered back above the $70 mark.
JPMorgan Chase and Bank of America fell more than three percent and Goldman Sachs dropped nearly two percent following downgrades from HSBC Securities.
A note from HSBC called valuations of the banks "increasingly stretched." While the banks' operating fundamentals "appear healthy," macro uncertainties and slower economic growth "seem to be downplayed," it said.
- Key figures at around 1545 GMT -
New York - Dow: DOWN 0.4 percent at 44,240.76 (close)
New York - S&P 500: DOWN 0.1 percent at 6,225.52 (close)
New York - Nasdaq Composite: FLAT at 20,418.46 (close)
London - FTSE 100: UP 0.5 percent at 8,854.18 (close)
Paris - CAC 40: UP 0.6 percent at 7,766.71 (close)
Frankfurt - DAX: UP 0.6 percent at 24,206.91 (close)
Tokyo - Nikkei 225: UP 0.3 percent at 39,688.81 (close)
Hong Kong - Hang Seng Index: UP 1.1 percent at 24,148.07 (close)
Shanghai - Composite: UP 0.7 percent at 3,497.48 (close)
Euro/dollar: UP at $1.1730 from $1.1709 on Monday
Pound/dollar: DOWN at $1.3592 from $1.3602
Dollar/yen: UP at 146.53 yen from 146.05 yen
Euro/pound: UP at 86.27 pence from 86.07 pence
West Texas Intermediate: UP 0.9 percent at $68.33 per barrel
Brent North Sea Crude: UP 0.8 percent at $70.15 per barrel
burs-jmb/jgc
Z.Chakraborty--MT
