Stock markets in the United States could potentially rise during the initial trading hours
In the world of finance, the week has seen a series of ups and downs for various markets, with economic indicators and geopolitical events playing significant roles in shaping the investment landscape.
German property firm Deutsche Wohnen moved higher after posting a narrower first-half loss, while Hong Kong's Hang Seng Index fell due to the same reason. European stocks were mixed, with the Trump administration's higher tariff rates and hopes of a ceasefire in the Ukraine war causing a ripple effect.
Eli Lilly led the sector lower, despite reporting better than expected second quarter results and raising its full-year guidance. The pharmaceutical sector showed a substantial move to the downside on the day, dragging the NYSE Arca Pharmaceutical Index down by 2.1 percent to its lowest closing level in nearly three months.
Apple CEO Tim Cook confirmed the company plans to invest another $100 billion in the U.S., causing shares of Apple to jump by 3.2 percent. Nissan, Mitsubishi Motors, Honda, Toyota, and SoftBank Group shares surged in Japan, while British drug major GSK moved up due to a U.S. patent settlement.
The Nasdaq added to Wednesday's strong gain, while the S&P 500 edged down and the Dow fell. Stocks moved mostly higher early in the session but gave back ground over the course of the trading day, ending the day mixed. Australian markets ended modestly lower ahead of the Reserve Bank of Australia's meeting on August 12.
Asian stocks ended mostly lower on Friday due to President Donald Trump's tariffs targeting more than 90 nations. Seoul stocks ended lower due to expectations of a U.S.-Russia summit ending the Russia-Ukraine war. Japanese shares bucked the regional trend after the U.S. agreed to end tariffs and cut car levies.
U.S. index futures are pointing to a modestly higher open for the markets on Friday. The U.S. dollar is trading at 147.71 yen and $1.1647 against the euro.
In other news, President Donald Trump announced a 100 percent tariff on imports of semiconductors and chips, with exemptions for companies building in the U.S. This move, intended to boost U.S. manufacturing and secure supply chains, is expected to have significant costs on the broader U.S. economy, including reduced GDP growth, higher unemployment, and sectoral imbalances. Globally, these tariffs disrupt supply chains and provoke international trade tensions with consequential impacts on chip producers and dependent industries.
Labor productivity in the second quarter showed a significant rebound, while a report from the Labor Department showed first-time claims for U.S. unemployment benefits rose by more than expected in the week ended August 2nd. Crude oil futures are rising, while gold futures are jumping after a significant increase in the previous session.
St. Louis Federal Reserve President Alberto Musalem is scheduled to speak before a Mississippi Delta event, and the Reserve Bank of Australia's meeting is scheduled for August 12.
[1] Source: Peterson Institute for International Economics [2] Source: Reuters [3] Source: Bloomberg [4] Source: Wall Street Journal
- An announcement by President Donald Trump about a 100 percent tariff on imports of semiconductors and chips could have significant implications for the stock-market, especially for chip producers and dependent industries, as these tariffs might disrupt supply chains and provoke international trade tensions.
- Despite reporting better than expected second quarter results and raising its full-year guidance, Eli Lilly's shares led the sector lower in the stock-market, suggesting that investing in the pharmaceutical sector may not be as profitable as initially expected.
