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Wall Street's tariffs crash resumes following morning recovery failure
The S&P 500 fell below 5,000 for the first time since almost a full year. This was a reversal of a strong morning rally, as expectations faded that there would be any delays or concessions from the U.S. on tariffs before a deadline at midnight. The benchmark index dropped 1.6% on Monday, marking a loss of $5.8 trillion in market value. This is the largest drop since President Donald Trump announced hefty tariffs on U.S. trading partner countries on Wednesday. The biggest percentage drop in four days since the pandemic was more than 12%. It was also on the verge of a 20% drop that would indicate a bear market. The Dow Jones Industrial Average dropped 0.84% and the Nasdaq Composite fell 2.15%. Comment: MARK MALEK, CHIEF OFFICER SIEBERT FINANCIAL NEW YORK. "This kind of market closing is not good. We could, and should, have had a more positive close, even though the rally slowed down in the afternoon. The market has already priced in a possible trade war, and the new news was not enough to cause a further decline in stocks. Many technical traders will be scratching their head tonight. "But I am still somewhat positive, which has been rare for me lately." "I think the body-language coming from the Administration signals that they would rather negotiate. That the 104% tariffs against China that we heard later in the session were a negotiation tactic." Early in the morning, the market had a hint that the tariff issue might be resolved sooner than last week. As the day progressed and news was released, this thought disappeared and uncertainty about the future - earnings, tariffs - grew. The market then sold off. "I have no idea how to estimate (earnings for) many companies at this time. ... Any earnings estimate for many companies, and the S&P 500 is fraught with a huge amount of potential for change. Most likely to the downside. It's hard to value many stocks before you are confident about the future earnings." CHRIS GRISANTI, CHIEF MARKET STRATEGIST, MAI CAPITAL MANAGEMENT, NEW YORK "I found today's market reaction troubling. We were delighted to see a strong market in the morning. But then, it made this end even worse because it turned our joy into sadness. "But from a technical perspective, it makes sense, because you can't make any meaningful investments now, when there is so much uncertainty. You need to have a certain amount of humility to acknowledge that we don't really know everything. At this point, I think 'caution is the better watchword' than 'looking at opportunities'. "I believe it would be very difficult for the economy not to go into a recession even if tariffs were removed tomorrow. Because I believe things are very slowed down, which means that things aren't moving because businesses don't have any idea what to do. They're not taking any decisions. I believe we are just about past the point of return. We will start to see first quarter results on Friday. I wouldn't at all be surprised to see companies rescinding their January guidance. "There's still a lot that could go wrong in the next few weeks."
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Constellation defends Calpine deal after consumer groups object
Constellation Energy, the major U.S. energy provider, defended to regulators its planned acquisition Calpine on Tuesday after consumer groups complained that the deal could give the combined company too much power in the market, according to a regulatory filing. Constellation announced in January that it had agreed to purchase Calpine for $16.4 billion. This was one of the largest acquisitions ever made by the U.S. energy industry. Later that month, the companies asked the Federal Energy Regulatory Commission for approval of the transaction. This would make Constellation, the largest independent power company in the United States. Since then, consumer groups from Maryland and Pennsylvania have filed protests against the deal with FERC. They cited concerns that the merger could ultimately stifle the competition and increase power bills. The Maryland Office of People's Counsel stated in its protest to FERC last month that the merger would encourage and facilitate the surviving firm's chances for anticompetitive behavior, such as withholding supply, due to the fleet changes after the merger and the supply-and-demand conditions in the market for generation and capacity. In a separate protest, the consumer advocate of Pennsylvania reiterated this sentiment. It said that Constellation would increase its share of retail competitive supplies in the state from 32% to almost 40% after the merger. Earthjustice and other environmental advocacy groups have asked FERC to deny the application. In its filing of Tuesday, Constellation said that its deal with Calpine wasn't anticompetitive, and that the merger had passed screenings by the Commission to determine which mergers were anticompetitive. Constellation, who asked FERC for the rejection of protests, stated that there are numerous safeguards that prevent it from withholding supplies and that it has no financial reason to do so. Constellation's filing with FERC stated that "Constellation applicant have both a legal obligation and an economical incentive to bid and sale their power generation." (Reporting and editing by Laila Gregorio; reporting by Laila kearney)
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Stocks and oil drop as US-China trade war escalates
The major stock indexes declined on Tuesday, as the trade conflict between the United States of America and China intensified. Oil prices and the U.S. Dollar also fell. The United States has said 104% duties Imports from China are subject to a ban that will go into effect just after midnight. News of the slowing economy and rising inflation has caused stocks to plummet since last week. According to LSEG, S&P 500 companies lost $5.8 trillion since Donald Trump announced tariffs late on Wednesday. This is the largest four-day decline since the benchmark was established in the 1950s. The U.S. Treasury curve steepened to its highest level since February 2022 as the longer-dated yields rose on supply concerns. Wall Street saw the S&P 500 close below 5,000 for almost a full year. The stock market had opened the day sharply higher amid investor optimism about Washington's willingness to negotiate some of its aggressive trade tariffs. "People wanted optimism and realized that they had no good reason to do so," said Melissa Brown. She is the managing director of investment decision research at SimCorp. The Cboe Volatility Index climbed for the fourth consecutive session, and reached its highest level since April 1, 2019. Treasury Secretary Scott Bessent stated that the Trump administration is also negotiating trade deals with other countries, such as Japan. The discussions were a result of numerous calls from different countries. The Dow Jones Industrial Average dropped 320.01 or 0.84% to 37,645.59; the S&P 500 declined 79.48 or 1.57% to 4,982.77; and the Nasdaq Composite lost 335.35 or 2.15% to 15,267.91. The MSCI index of global stocks fell by 2.52 points or 0.34% to 742.96. The pan-European STOXX 600 rose by 2.72%. Investors anticipate the release of U.S. earnings quarterly reports in this week. Adam Sarhan of 50 Park Investments, New York, stated that positive results could be a catalyst for stocks. JPMorgan Chase will be the first to report results, followed by Citigroup and Wells Fargo. Jamie Dimon, JPMorgan Chase's CEO, has warned trade wars can have long-lasting negative effects. These include inflation and recession. The curve between the yields of two-year and 10-year notes steepened to 57 basis point on a volatile trading day. The benchmark yield for the 10-year note rose to a 11-day-high on concerns about a weak demand for U.S. government bonds with longer maturities before Wednesday's sale. The yield on the 10-year bond was up 12.6% basis points for the day, at 4.283%. It dropped to 3.86%, its lowest level since October 4. The yield on the two-year interest rate sensitive bond reversed a previous increase, falling 2.3 basis points and reaching 3.715%. On Monday, it had fallen to 3.435%, its lowest level since September 2022. After reports that German parties had formed a coalition, the euro rose. The U.S. Dollar fell against other major currencies while China's offshore Yuan reached a new record low. The reports also led to a rise in European equity index futures. Germany's conservatives under chancellor-in-waiting Friedrich Merz on Tuesday reached a deal with the centre-left Social Democrats (SPD) to form a government, NTV reported. Two people who are familiar with the matter have denied that any deal has been made. The dollar has been weakened against major currencies due to the turmoil caused by tariffs. The dollar index fell by 0.48%, to 102.92, measuring the greenback in relation to a basket including the yen, the euro and other currencies. The U.S.-China Trade War escalated, and oil prices fell amid recession fears. Brent futures dropped $1.39 or 2.16% to settle at $62.82 per barrel. U.S. West Texas Intermediate Crude Futures fell $1.12 or 1.85% to settle at $59.58.
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EU Commission to discuss US tariff strategy and trade with industries
A letter of invitation seen by revealed that the European Commission had invited the most affected sectors by U.S. Tariffs to a meeting in person on Thursday. The commission is weighing new trade agreements and countermeasures. Participants from the auto and steel industries will be invited to the meeting, which is being led by Stephane Sejourne, the industry chief for the Commission. Ursula von der Leyen, the Commission president, had called executives from the autos and pharmaceutical industries as well as metals industry. In the letter of invitation, it was stated that the meeting would be held to determine what impacts EU companies have already experienced in the "short- and medium-term" and how best to respond in terms "of sector-specific policies and counter-tariffs as well as non-tariff countermeasures." Washington has imposed sector-specific tariffs on steel, aluminum and vehicles, in addition to reciprocal tariffs. The Commission is worried about the impact of the upcoming measures on "pharmaceuticals and minerals, as well as copper, semiconductors and lumber." The Commission warned of possible additional tariffs which could hit EU companies who still use Venezuelan crude oil "directly" or indirectly. The Commission is looking for input from the industry to determine the best tool to use, whether it be free trade or partnership. The letter stated that "the two-hour meeting is an opportunity for the EU to exchange views on the impact the tariffs have on different industrial sectors, as well as measures it could take to reduce their impact." Reporting by Julia Payne, Editing by David Gregorio
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Euro up as stocks ease amid US-China trade war
The major stock indexes declined on Tuesday after the United States announced that 104% tariffs on imports from China would take effect shortly after midnight. However, the euro and European equity futures rose following reports that Germany's parties had reached an agreement on a coalition. However, two people who knew the situation said that the German coalition was still not agreed upon. Investors were optimistic earlier in the morning that Washington would be willing to negotiate some of its aggressive trade tariffs. The Trump administration is also It is important to begin discussions with other trading partners that are being targeted by Donald Trump's tariff plan. Since Trump announced his sweeping tariffs late on Wednesday, stocks have suffered heavy losses. Worries are growing that a trade war could push the global economy into recession. Germany's NTV reported Germany's conservatives under chancellor-in-waiting Friedrich Merz on Tuesday reached a deal with the centre-left Social Democrats (SPD) to form a government. The euro last rose 0.61% to $1.0971. EuroSTOXX Futures in Germany rose 0.72%. DAX Futures increased 0.55%. CAC 40 Futures increased 0.43%. Bund futures have trimmed their losses. Wall Street saw the Dow Jones Industrial Average fall 337.84, or 0.89% to 37,627.76. The S&P 500 dropped 81.11, or 1.60% to 4,981.14, and the Nasdaq Composite declined 339.48, or 2.18% to 15,263.78. The MSCI index of global stocks fell by 2.43 points or 0.33% to 743.05. The U.S. trade war with China escalated, causing recession fears and a drop in oil prices. Brent futures dropped $1.39 or 2.16% to settle at $62.82 per barrel. U.S. West Texas Intermediate Crude Futures fell $1.12 or 1.85% to settle at $59.58. Spot gold dropped 0.13% to 2,978.68 dollars an ounce. Investors anticipate the release of U.S. quarter earnings reports in this week. Adam Sarhan, CEO of 50 Park Investments, New York, said that positive results could be a catalyst for stocks. JPMorgan Chase will be the first to report results, followed by Citigroup and Wells Fargo. Jamie Dimon, JPMorgan Chase's CEO, has warned trade wars can have long-lasting negative effects. These include inflation and recession.
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US stocks fall as US tariffs on China are imposed; the euro rises after news of German coalition
The U.S. stock market indexes fell on Tuesday, as the United States announced that 104% of import duties from China would take effect shortly after midnight. However, the euro and European equity futures rose following reports that Germany’s political parties had reached an agreement on a coalition. Investors were optimistic earlier in the morning that Washington would be willing to negotiate some of its aggressive trade tariffs. The Trump administration is also It is important to begin discussions with other trading partners that are being targeted by Donald Trump's tariff plan. Germany's NTV reported Germany's conservatives under chancellor-in-waiting Friedrich Merz on Tuesday reached a deal with the centre-left Social Democrats (SPD) to form a government. However, two people who are familiar with the matter said that an agreement has not been reached. Futures for the EuroSTOXX50 index in Germany rose 0.72%. DAX futures increased 0.55%, and CAC futures increased 0.43%. Bund futures have trimmed their losses. The dollar was up by 0.41% to $1.0948. Wall Street saw the Dow Jones Industrial Average rise 62.46, or 0.16% to 38,028.03, while the S&P 500 dropped 13.34 points or 0.27% to 5,048.75, and the Nasdaq Composite declined 79.19, or 0.51% to 15,522.91. The MSCI index of global stocks rose by 4.27 points or 0.57% to 749.75.
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Meloni will meet Trump for tariff talks on April 17, 2019.
Her office announced on Tuesday that Giorgia Mello will meet Donald Trump, the U.S. president in Washington, on April 17, to discuss tariffs imposed by Trump on imports from the European Union. Trump has a policy of imposing tariffs that are 25% on imports of steel, aluminium and automobiles. The tariffs will be a broader 20% for all other goods starting Wednesday. Meloni said she backed an offer by the European Commission for a "zero to zero" tariff agreement to avoid a trade conflict with the United States. Meloni stated in a staff-released speech that "This is a negotiation which must see us at all levels committed, which sees and commits us. I am committed as I will be there in Washington on April 17, next year," Meloni. Meloni, a nationalist who has a deep admiration for Trump is Battle to reconcile Analysts say that there is a growing gap between Washington's ideological instincts and Italy’s strategic ties with the European Union. She is under pressure also to defend Italy's export-driven industry, which last year ran a 40-billion-euro ($43.75-billion)trade surplus with the United States -- the third-largest in the European Union after Germany and Ireland. Italy's total exports are 10% of its total. "I believe (tariffs are) an absolutely wrong decision by the Trump administration. Western economies are interconnected. Meloni stated that such protectionist policies would hurt Europe just as much as they would the U.S. EU FUNDS Meloni stated that her government will discuss alternative ways with the European Union to use funds already allocated to EU to offset the negative impact expected of the tariffs. She said, "We are committed in using all resources available, beginning with those which do not impact public finances." She said that although no additional borrowing is currently planned, 14 billion euro could be derived from a revamp of Italy's EU supported post-COVID Recovery Plan, and an additional 11 billion from EU Regional Development Funds. Another 7 billion euro was expected to be spent using EU funds in order to combat climate change. The government is Prepare to cut Two sources with knowledge of the situation said that the U.S. Tariffs have caused the uncertainty in the economic growth forecasts for this year and next. Sources said that the multi-year budget plan for Italy, which is due to be released on Wednesday, predicts a 0.6% increase in gross domestic product this year. This is down from the 1.2% goal set last September. Next year's GDP is expected to be +0.8% down from the previous target of +1.1%. ($1 = 0.9414 euros) (Reporting and writing by Giuseppe Fonte, Editing and proofreading by Crispia Balmer)
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US oil, biofuel group recommends 5.25 billion gallons in biomass diesel mandates, sources say
Two sources with knowledge of the matter reported that a U.S. biofuel and U.S. coalition has recommended the Environmental Protection Agency to propose federal mandates on biomass diesel blending in 2026, at 5.25 billion gallon, which is a significant increase over previous mandates. Sources said that the coalition recommended a total federal mandate for biofuel blend mandates of 25 billion gallons by 2026. The coalition led by the American Petroleum Institute (API), a major U.S. oil industry trade group, gave the figures to EPA at a recent meeting. EPA will release a proposal covering 2026 and 2027. This was previously reported. The Coalition's request of 5,25 billion gallons for biomass-based diesel mandates is slightly lower than the range between 5.5 billion and 5.75 billion gallons that was considered before the meeting by the. Previously, the EPA had set the biomass-based diesel mandates at 3,35 billion gallons for 2025. API refused to comment on numbers in particular, while the EPA didn't respond to a comment request. The U.S. Renewable Fuel Standard requires oil refiners to blend billions gallons worth of biofuels in the nation's fuel or purchase tradable credit from those who do. Reporting by Stephanie Kelly and Jarrett Renshaw, both in New York; editing by Mark Porter and Matthew Lewis.
Ukraine's steelmakers stress as Russians advance towards crucial coal mine
As Russian forces grind their way towards the tactical supply hub of Pokrovsk in eastern Ukraine, they are also approaching a coking coal mine that fires the nation's essential steel market.
Russian troops have actually relocated to within around 12 km of Pokrovsk, overwhelming Ukraine's extended defences with greatly exceptional numbers and equipment. Countless locals have gotten away and key road and rail links to other cities run the risk of being severed.
Around 10 km west of the town centre lies a mine that produces a special kind of coal required to produce coke, an essential element in steelmaking - which is 2nd only to farming in making hard currency for Ukraine.
Metal exports were worth practically $2 billion in the first eight months of this year, according to trade information, money needed to keep Ukraine going two and a half years into Russia's. full-scale intrusion.
Oleksandr Kalenkov, head of Ukraine's steelmakers'. association, stated the loss of the Pokrovsk mine, the just. domestic source of coking coal, could trigger steel production to. downturn.
We might make up to 7.5 million metric lots of steel by the. end of the year and, for next year, we saw an increase in. production to over 10 million, Kalenkov informed Reuters.
But if we lose Pokrovsk, then ... we will be up to 2-3. million tons.
The alarming caution is a tip of how Russia's intrusion is. targeting Ukraine's economy, posturing an existential as well as a. territorial hazard.
The head of the Ukrkoks coke association, Anatoliy. Starovoit, stated Ukraine produced about 3.5 million tons of coke. in 2023 and utilized coking coal mined exclusively in Pokrovsk.
We do not know where to get coal if Pokrovsk is seized, he. told Reuters. It is difficult to bring it in by importing;. today it is not so easy to bring it in by sea.
IMPORT, EXPORT
Ukraine has several deep-water ports on the Black Sea, however. steelmakers would discover it challenging to import substantial. volumes of coal due to the fact that of military risks and since ports are. built for exports instead of imports.
To do so would likewise rise production costs for. steelmakers, Kalenkov said.
There will be imports, of course, but there will not suffice. imports.
The most likely alternative sources of supply are the United. States and African nations including South Africa, he added.
Some manufacturers have been stockpiling as a preventative measure against. possible supply disturbances.
We have changed the deficit in the local market for coal. with imported basic materials, however we maintain high reserves,. ArcelorMittal Kryvyi Rih, Ukraine's largest steelmaker, said in. a declaration. The company is part of ArcelorMittal S.A.,. a Luxembourg-based multinational steel production. corporation.
A steel market source stated manufacturers wished to find. alternative sources of coke coal from in other places in Ukraine. must the Pokrovsk mines be occupied, however that imports would. undoubtedly be needed and boost production costs, making steel. less competitive.
Ukraine produced more than 4.3 million tons of rolled steel. items in January-August 2024, of which 66% were exported. EU. countries represented 72% of the volume exported, according to. the steelmakers' union.
(source: Reuters)