The Australian sharemarket opened at a six-week high on Tuesday morning, boosted by news President Donald Trump won’t impose new tariffs on his first day of office.
The Australian sharemarket opened at a six-week high on Tuesday morning, boosted by news President Donald Trump won’t impose new tariffs on his first day of office.
By Julien Ponthus
January 21, 2025 — 5.20am
European stocks closed higher, erasing earlier declines as automakers outperformed on signs US President-elect Donald Trump won’t impose new tariffs on his first day of office.
The Stoxx Europe 600 Index was up less than 0.1 per cent by the close, after dipping as much as 0.2 per cent. The benchmark is about 1 per cent below its September record high. Daimler Truck Holding AG and BMW AG advanced more than 2 per cent.
London’s blue-chip FTSE 100 hit a record high for the second session in a row. The FTSE 100 index of top British firms ended up 0.2 per cent at a fresh closing peak, though off its intraday high.
Traders have been concerned that his threats of tariffs on China and other countries would stoke inflation and weigh on global growth. There was a sense of relief in global markets on Monday after Trump was quoted as saying he would not impose US tariffs yet at his inauguration.
S&P 500 and Nasdaq futures also gained as the greenback eased. US markets were closed for the Martin Luther King Jr Day holiday.
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The Australian sharemarket is set to edge up, with futures at 5.50am AEDT pointing to a rise of 13 points, or 0.2 per cent, at the open. The ASX added 0.5 per cent on Monday.
Trump is not expected to immediately unveil China-specific tariffs, as the incoming administration has pivoted toward starting his second term with potential engagement with Beijing rather than another trade war, according to people familiar with the plans.
The Wall Street Journal reported earlier Monday that the new administration plans to issue a memorandum asking federal agencies to study existing policies and trade ties with China, Canada and Mexico — but stopping short of calling now for new tariffs on the three biggest US trading partners.
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“The Wall Street Journal report on tariffs triggered the move, which has also impacted foreign exchange markets and lifted the euro versus the dollar,” said Andrea Tueni, head of sales trading at Saxo Banque France.
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Shares in Telefónica SA dropped about 3 per cent. Spain’s Socialist government surprised investors by pushing out the carrier’s long-standing executive chairman and chief executive officer.
In individual stocks, Konecranes OYJ shares declined after its president and CEO Anders Svensson decided to join Hexagon AB after about two years in the role.
Belimo Holding AG rose as the Swiss manufacturer of heating, ventilation and air conditioning equipment reported full-year sales that beat estimates.
Also in focus this week is the annual gathering of government and business leaders in Davos, Switzerland, as well as earnings reports.
Bloomberg
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