Fed stays flat, Trump slashes tariffs as most markets tumble
Trade Tensions Push 15% Tariffs on South Korean Goods
Federal Reserve Holds Rates, Warns of Inflation Risks
The central bank maintained steady interest rates, signaling that a cut remains unlikely in the near term. Two Fed board members voted to reduce rates, but investors cut expectations for a September easing, propelling the dollar against rivals.
- Economic slowdown reported in the first half.
- Solid labor market noted, yet uncertainty lingers.
- Inflation remains high, prompting caution.
Trump Announces 15% Tariffs on South Korean Imports
President Trump unveiled a new trade agreement that levies a 15 percent tariff on goods from South Korea, while South Korean officials committed to investing $350 billion in the United States. The president also pledged 25 percent tariffs on Indian products and introduced a penalty on New Delhi’s purchases of Russian weapons and energy.
Additionally, an executive order imposed an extra tax on Brazilian products, as Trump criticized what he calls Brazil’s “witch hunt” against former far‑right president Jair Bolsonaro on coup charges.
Market Reactions Across the Globe
Asian markets fell after a broadly negative day on Wall Street. Hong Kong, Shanghai, Sydney, Singapore, Seoul, Manila, Wellington and Jakarta all declined, while Tokyo, Taipei, Mumbai and Bangkok edged higher.
- London, Paris and Frankfurt rose in the morning.
- The yen moved lower against the dollar after the Bank of Japan decided against a rate hike.
- Tech earnings boosted the market, with Microsoft and Meta posting better‑than‑expected results, sending stocks higher in after‑market trade.
Upcoming Highlights and Focal Points
Key figures at about 0810 GMT:
- Tokyo Nikkei 225: UP 1.0% at 41,069.82 (close)
- Hong Kong Hang Seng Index: DOWN 1.6% at 24,773.33 (close)
- Shanghai Composite: DOWN 1.2% at 3,573.21 (close)
- London FTSE 100: UP 0.4% at 9,172.12
- Euro/dollar: UP at $1.1443 from $1.1409
- Pound/dollar: UP at $1.3245 from $1.3239
- Dollar/yen: UP at 149.55 yen from 149.50 yen
- West Texas Intermediate: DOWN 0.1% at $69.92 per barrel
- Brent North Sea Crude: DOWN 0.2% at $73.11
- Dow: DOWN 0.5% at 44,632.99 (close)
