Energy News
TRADE WARS
Dollar recovers some losses, stocks mixed as traders eye tariff deals
Dollar recovers some losses, stocks mixed as traders eye tariff deals
by AFP Staff Writers
Hong Kong (AFP) May 6, 2025

The dollar rose in Asia on Tuesday fuelled by hopes for trade deals to avert Donald Trump's sweeping tariffs, while equities were mixed as investors await the Federal Reserve's latest policy decision.

Oil also staged a comeback after tanking on news of an output hike by key producers that came despite growing concerns about demand and the outlook for the global economy.

While no agreements have yet been reached with the White House, there is optimism that governments are making progress in averting or tempering the US president's eye-watering levies, which have sent shivers through world markets.

Sentiment was given a lift by US Treasury Secretary Scott Bessent, who told CNBC that the administration had been approached by 17 countries and offered "very good" trade proposals.

He also said there could be "substantial progress in the coming weeks" with China, which has been hit with tariffs of 145 percent.

Trump has imposed lower duties of 10 percent on goods from most other countries, along with 25 percent levies on specific items like steel, automobiles and aluminium.

Hopes for deals have seen Asian currencies rally against the dollar, with Taiwan's unit up around seven percent this month, while South Korea's won, the Malaysian ringgit, Indian rupee and Thai baht have also seen healthy gains.

The greenback was barely moved against the yen, euro and pound.

The gains have led some to speculate governments are allowing for an appreciation of their currencies as part of negotiations with Washington.

"The factor many talk about is whether these countries with historically 'weak' and heavily managed currencies are now appealing to Trump through the currency channels and are now allowing for an appreciation of the currency as part of the trade negotiations," said Pepperstone's Chris Weston.

"If these Asian nations are indeed opting for a currency revaluation, it could be a significant development not just in driving the dollar lower, but also in the trade negotiation process and accelerate the idea of trade deals."

Equities were mixed, with Hong Kong and Shanghai advancing as investors returned from a long weekend.

Singapore, Manila and Jakarta also rose along with London.

But Sydney, Taipei, Mumbai, Bangkok, Paris and Frankfurt slipped. Wellington was flat.

Traders brushed off losses on Wall Street, with the S&P 500 snapping a nine-day winning streak and film studios hit by Trump's warning of new tariffs on all films made outside the United States.

Focus turns to the Fed's policy announcement Wednesday, with expectations it will stand pat on interest rates, even as Trump continues to push for more cuts.

While data last week showed that the US economy contracted in the first quarter, strong jobs and services sector figures suggest there is still some resilience.

"Soft data had baked in a Fed pivot, but the ensuing hard data prints got bond desks slashing their rate-cut tickets," said SPI Asset Management's Stephen Innes.

"So long as the real economy hums and fresh levies are expected to spark a second inflation wave, Powell's hawkish brace stays locked in," he said in reference to Fed chairman Jerome Powell.

Oil prices rose more than two percent, clawing back Monday's losses that come on the back of a decision by Saudi Arabia, Russia and six other members of the OPEC+ cartel to boost output by 411,000 barrels a day for June.

The move came a month after a similar announcement that also caused prices to fall.

- Key figures at around 0810 GMT -

Hong Kong - Hang Seng Index: UP 0.7 percent at 22,662.71 (close)

Shanghai - Composite: UP 1.1 percent at 3,316.11 (close)

London - FTSE 100: UP 0.2 percent at 8,617.32

Tokyo - Nikkei 225: Closed for holiday

Euro/dollar: UP at $1.1344 from $1.1319 on Monday

Pound/dollar: UP at $1.3327 from $1.3296

Dollar/yen: DOWN at 143.25 yen from 143.72

Euro/pound: UP at 85.12 pence from 85.10

West Texas Intermediate: UP 2.3 percent at $58.43 per barrel

Brent North Sea Crude: UP 2.3 percent at $61.59 per barrel

New York - Dow: UP 0.2 percent at 41,218.83 (close)

dan/mtp

S&P Global Ratings

Dow

Related Links
Global Trade News

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
TRADE WARS
Tokyo stocks rise as BoJ holds rates steady
Hong Kong (AFP) May 1, 2025
Japanese stocks rose Thursday as the central bank kept its key interest rates steady as expected, in thin trade with most Asian markets shut for the May 1 holiday. Japan's main Nikkei 225 index and broader Topix index were up in morning trade, with the Bank of Japan holding interest rates steady amid uncertainty over US President Donald Trump's fast-changing trade policy. The BoJ left its benchmark interest rate unchanged at around 0.5 percent for a second straight meeting, but halved its growth ... read more

TRADE WARS
How can an electricity network go down in five seconds?

Finland says supports EU goal to cut emissions 90 percent by 2040

UN, Brazil to hold virtual summit Wednesday ahead of COP30

Gunmen attack Chinese-owned power plant site in Chile

TRADE WARS
Australia launches "world's largest" battery-power ship

ITER completes record breaking superconducting magnet system for fusion energy

Microscale weld imaging unlocks improved durability for fusion power plants

Indonesia says China's Huayou to replace LGES in EV battery project

TRADE WARS
Norway's Equinor slams 'unlawful' halt to US wind farm

US halts Equinor's huge New York offshore wind project

Chinese energy giant Goldwind posts annual growth as overseas drive deepens

Clean energy giant Goldwind leads China's global sector push

TRADE WARS
Laminated structure boosts interface stability in inverted perovskite solar cells

Saharan dust clouds cast uncertainty on Europe's solar power growth

US solar tariffs could drive Asia transition boom

AI designed nanostructure coating cuts solar reflection and boosts cell efficiency

TRADE WARS
AI driven algorithm streamlines next generation nuclear reactor shielding design

Spain nuclear plants in 'safe' shutdown mode after blackout

New reactor model unlocks deeper insights into molten salt reactor dynamics

Top uranium producer Namibia to open talks on nuclear energy plant

TRADE WARS
Bacteria breathe electricity unlocking bioenergy and clean tech potential

Difficult energy transition looms without major EU investment in biomass

Turning wood waste into ultra strong material

Tunisian startup turns olive waste into clean energy

TRADE WARS
'Bombshell' OPEC+ output hike hits oil price

Shell net profit sinks 35% in first-quarter as oil prices fall

Moss method revives Canadian oil well sites into carbon-storing peatlands

US imposes sanctions to curb Iran oil despite talks

TRADE WARS
UK 'not ready' for effects of climate change, experts warn

US climate assessment thrown into doubt as Trump dismisses authors

US climate assessment in doubt as Trump dismisses authors

Don't make 'disappointing' retreat on climate, COP30 CEO urges EU

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.