Asian markets fell on Monday as investors reacted to unclear signals from the U.S. on planned tariff hikes

Cryptopolitan
Updated
Mitrade
coverImg
Source: DepositPhotos

Asian stock markets dipped on Monday as investors tried to understand Washington’s mixed signals about delaying planned UUS tariffs. Meanwhile, oil slid after OPEC and its allies agreed to boost crude output beyond expectations.

In Asia, Tokyo’s Nikkei slipped 0.5%, while South Korea’s main index held flat. MSCI’s broad measure of Asia-Pacific shares outside Japan slid 0.6%, and China’s CSI 300 lost 0.5%.

In Europe, futures for the EURO STOXX 50 fell 0.1%, FTSE futures dipped 0.2%, and DAX contracts were largely unchanged.

U.S. President Donald Trump said on Sunday that his administration is nearing completion of multiple trade deals and will send notices about higher tariffs by July 9, with the new duties set to begin on August 1.

According to Reuters, the announcement left markets uncertain because officials gave few specifics on which countries would see the deadline shift.

In April, the president also said some tariffs could climb as high as 60% or 70% and threatened an extra 10% tariff on any country he felt sided with the BRICS group’s “anti-American policies.”

So far, few formal agreements have been made, leaving analysts to suspect the August 1 deadline would slip further. Furthermore, confusion remains over whether the change applies to all partners or only select ones.

Markets have grown accustomed to the unpredictability of U.S. trade policy and its potential effects on growth and prices. Those concerns have also held the Federal Reserve back from cutting rates.

The Reserve Bank of Australia meets on Tuesday. Most experts expect it to cut the main interest rate by 0.25% to 3.60%. That would be the third cut in this cycle, and markets think rates could drop as low as 2.85% or stay near 3.10%.

The Reserve Bank of New Zealand is set to announce its decision on Wednesday. New Zealand’s policy rate currently stands at 3.25% after cuts totaling 225 basis points over the last year, and most forecasters predict it will hold steady.

Gold dips despite weekly gain while oil prices weaken

In commodity markets, gold eased 0.3% to $3,324 an ounce, despite a nearly 2% gain last week as the dollar softened.

Oil prices fell further after OPEC and its partners, collectively known as OPEC+, agreed on Saturday to raise production by 548,000 barrels per day in August. The group also flagged a similar increase in September, a move seen as aimed at squeezing higher-cost U.S. shale producers.

“We see OPEC+ targeting Brent oil futures around $60–65 per barrel as a result,” said Vivek Dhar, an analyst at Commonwealth Bank of Australia. Such a range would challenge the viability of some U.S. shale operations and curb non-OPEC+ supply growth.

By Monday’s close, Brent traded lower by 52 cents at $67.78 per barrel, and U.S. crude fell down $1.01 at $65.99 a barrel.


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Asian markets dipped as early optimism over U.S. trade deals fadedInvestors appeared to pause after a week of rapid policy developments.
Author  Cryptopolitan
Yesterday 07: 24
Investors appeared to pause after a week of rapid policy developments.
placeholder
The S&P 500 broke above 6,400 after the U.S. and EU agreed to lower tariffs to 15%.U.S. President Donald Trump confirmed Sunday evening that the United States had finalized a tariff deal with the European Union.
Author  Cryptopolitan
Jul 28, Mon
U.S. President Donald Trump confirmed Sunday evening that the United States had finalized a tariff deal with the European Union.
placeholder
FTSE 100 hits record high on positive corporate newsLondon's main stock indexes rose on Thursday, with the blue-chip index hitting an all-time intraday peak
Author  Reuters
Jul 24, Thu
London's main stock indexes rose on Thursday, with the blue-chip index hitting an all-time intraday peak
placeholder
Tesla shares fall amid delays, distractions and fading EV dominanceTesla's TSLA.O shares sank nearly 7% in premarket trading on Thursday.
Author  Reuters
Jul 24, Thu
Tesla's TSLA.O shares sank nearly 7% in premarket trading on Thursday.
placeholder
Shares in Japanese, South Korean automakers surge on Tokyo trade dealShares of Japanese and South Korean automakers surged on Wednesday after U.S. President Donald Trump announced a trade deal with Tokyo
Author  Reuters
Jul 23, Wed
Shares of Japanese and South Korean automakers surged on Wednesday after U.S. President Donald Trump announced a trade deal with Tokyo