News

US President Donald Trump said he plans to order a cut in US prescription drug costs by mandating that Americans pay no more than people in countries that have the lowest price. Trump said drug prices will be cut by “59%, PLUS!” in a social media post on Monday.

China’s stock market investors just got the news they have been hoping for.

The country’s agreement with the US to temporarily lower tariffs sent stocks in Shanghai and Hong Kong soaring on Monday, wiping out their losses after President Donald Trump’s “Liberation Day” announcement last month roiled risk assets around the world.

The Hang Seng China Enterprises Index and Hong Kong’s benchmark Hang Seng Index both closed the day 3% higher, while the onshore CSI 300 index rose 1.2%. That put back on track a rally in what was the world’s best performing stock market earlier this year, fueling hopes that animal spirits will be revived.

US Treasury Secretary Scott Bessent announced on Monday that talks with China had been highly productive. As a result, both countries have agreed to reduce their “reciprocal” tariffs by 115% for 90 days. This means that US tariffs on Chinese goods will decrease to 30%, while Chinese tariffs on US imports will fall to 10%.

Pharmaceutical stocks fell after President Trump announced an executive order to lower drug costs by 30% to 80%. Major companies like Merck, Johnson & Johnson, and Teva Pharmaceutical saw significant declines.

Global technology and chip stocks rallied after the U. and China agreed to pause most tariffs on each other’s goods. The agreement provided relief to investors concerned about the impact of trade tensions on major tech stocks, especially those with exposure to China.

Apple Inc. is weighing raising prices for the iPhone lineup coming out later this year, and will avoid blaming any increases on tariffs, the Wall Street Journal said, citing people familiar with the matter who it didn’t name.

Apple will attribute any price increases to new features, the Journal said. High-end phones, including the Pro and Pro Max models, will be produced in China, even as Apple builds up capacity in Indian factories, the newspaper reported.

Apple is seeking to import most of the iPhones it sells in the US from India by the end of next year, accelerating a shift beyond China to mitigate risks related to tariffs and geopolitical tensions, Bloomberg News has reported.

Nissan Motor Co. will eliminate 11,000 more jobs than it previously planned, Japan’s national broadcaster reported Monday, as part of a plan to restructure its flailing business.

The Japanese automaker said in November it would cut 9,000 positions after weak sales in the US and China led to a 94% drop in first-half net income. Now, those job cuts will be nearer to 20,000, or around 15% of the entire workforce, NHK said, citing people that it didn’t identify.

Since November, things have just gotten worse for Nissan. An outdated product line-up and bloated dealership incentives have forced it to reduce production capacity and overhaul its executive leadership and in April, Nissan said it will post a net loss of as much as ¥750 billion ($5.1 billion) for last fiscal year, a record annual deficit.

(From Bloomberg.)

Sentiment toward the US stock market is improving but it’s too early for investors to sound the all-clear, according to Morgan Stanley strategists.

The team led by Michael Wilson identified four factors needed to sustain a more durable rally, but saw progress in just two: “Optimism around a trade deal with China and stabilizing earnings revisions,” they wrote in a note on Monday.

“The other two items on our checklist — a more dovish Fed and the 10-year yield below 4% without recessionary data — have yet to materialize.”

Saudi Aramco’s net debt rose to the highest in almost three years, piling pressure on the finances of the world’s biggest oil exporter even as it cut its massive dividend.

Net debt climbed 18% to 92.4 billion riyals ($24.6 billion) in the first quarter from the end of last year, according to a statement Monday. The increase comes as the company again failed to fully cover the total payout with free cash flow. Still, its borrowing levels are below many other major oil firms, leaving it with significant headroom to take on more.

Dividends from the world’s biggest oil company are crucial for Saudi state finances and key to funding Crown Prince Mohammed bin Salman’s ambitious plan to transform the economy by developing industries like technology and tourism. With the budget forecast to be in deficit over the coming years, the kingdom is expected to increasingly lean of borrowing to fund the transformation.

Oil, base metals and crop commodities rallied while gold fell after China and the US agreed to lower tariffs on each other, following a weekend of trade talks.

Brent crude added as much as 3.7% in London and copper rose 1.4%. European natural gas, soybeans and iron ore also rallied. Shares of the top mining companies surged. Meanwhile, bullion fell as haven demand eased.

The truce between the world’s two largest economies brings relief to commodity markets roiled by prohibitive tariffs that dented the outlook for global growth in past weeks. Oil watchers have been slashing their demand forecasts and there have been signs in recent weeks that the trade war is already hitting the amount of goods arriving in the US.

Chinese stocks listed in Hong Kong surged after Beijing and Washington agreed to temporarily lower tariffs on each other’s products, the clearest sign yet that an escalating trade war between the world’s two largest economies may be avoided.

The Hang Seng China Enterprises Index and Hong Kong’s benchmark Hang Seng Index both closed 3% higher, wiping out all of their losses since US President Donald Trump’s “Liberation Day” of tariffs. The onshore CSI 300 Index ended the day up 1.2% just as the announcement was being made, also clawing back its losses since April 2.

The agreement between China and the US, which followed weekend negotiations in Geneva, was a surprisingly strong statement of progress in ending a trade dispute that has roiled global markets.

Gold fell as demand for haven assets tanked after the US and China agreed to lower tariffs on each other’s products for 90 days, signaling a major breakthrough in trade negotiations that were flagged last week.

Bullion’s losses accelerated on Monday after the announcement, with prices falling as much as 3.2% to around $3,220 an ounce. The dollar extended gains — making gold more expensive for most buyers — following a joint statement from both nations that said the combined 145% US levies on most Chinese imports will be reduced to 30%, while the 125% Chinese duties on US goods will drop to 10%.

The announcement represents a step toward de-escalating a tariff war that has led to an immediate slump in trade across the Pacific Ocean. The two countries had earlier reported “substantial progress” in their talks, which buoyed markets and helped stocks recoup most of their losses since President Donald Trump’s seismic “Liberation Day” announcement of tariffs on April 2.

The dollar soared and government bonds sold off as markets reacted to a de-escalation in the trade war between China and the US, which agreed to temporarily lower some tariffs for 90 days.

A gauge of dollar strength rose as much as 0.9% and the yen, a traditional haven, plunged as progress in talks stoked risk appetite across asset classes. The US 10-year yield climbed seven basis points to 4.45%, its highest in nearly a month, while stocks got a boost on both sides of the Atlantic.

It’s a major potential pivot point for markets, which have been roiled by US President Donald Trump’s attempts to rewire global trade. He targeted China with particularly punitive tariffs, sparking a trade war and fears of a recession.

“We are in agreement that neither side wants to decouple,” Treasury Secretary Scott Bessent said, adding that “we had a very robust and productive discussion on steps forward on fentanyl” and that talks might lead to “purchasing agreements” by China.

Bessent added that the tariff reductions announced today don’t apply to sectoral duties imposed on all US trading partners, and the tariffs applied on China during the first Trump administration remain in place.

European stock markets have started the new trading week on a positive note following the White House’s announcement that the US and China had agreed to slash tariffs.

The Stoxx Europe 600 rose by 1.1% in early trade on Monday. The U.K.’s FTSE 100 opened around 0.6% higher, Germany’s DAX was up 1.6%, and France’s CAC 40 moved up 1.3%.

It’s a quiet day for corporate and data releases, although Unicredit released its latest earnings on Monday.

– Chinese have very draconian measures for sale of narcotics in China

– We have asked them to be as tough on such trade for US

– We leave with a very good mechanism to avoid the escalation from happening again

– Trump and Xi have a very good relationship

– We leave today with a process that will move forward with mutual respect

Futures on Wall Street are seeing sharp gains after both the US and China agreed to reduce tariffs for a 90-day period.

The Dow futures are up 850 points, while the S&P 500 and Nasdaq futures are up 150 points and 700 points respectively.

China has announced that it will be cutting tariffs on all US goods to 10% for a 90-day period, while the US will be bringing down their tariffs on Chinese goods to 30%.

China will also be suspending the additional 24% tariff on US goods for a 90-day period.

The announcement has led to a sharp surge in the US futures.

Japan’s Topix advanced for a 12th consecutive session, its longest winning streak since 2017, after upbeat comments from US and Chinese trade negotiators fanned optimism for lower tariffs.

The Topix, a broad gauge of about 1,700 stocks, closed 0.3% higher at 2742.08, led by cyclical shares such as semiconductors, brokerages and shippers. The Nikkei 225 Stock Average ticked up 0.4% to 37,644.26

“Markets are vaguely hoping that the US will likely lower ‘reciprocal’ tariff to the base level within the next few months.” said Kensuke Togashi, chief strategist at Daiwa Asset Management.

Japan’s 30-year government bond yield climbed to its highest level in almost 25 years as optimism from US-China trade talks encouraged selling of haven assets.

The yield on the 30-year debt rose 5 basis points to 2.955%, its highest level since November 2000. There has been continued concern over demand for super-long Japanese bonds, with yields already hovering around the highest since 2004 prior to the negotiations.

Short-dated JGBs have outperformed due to receding expectations of rate hikes by Bank of Japan, while the 30-year yield has surged amid global volatility and fiscal concerns. Japan’s super-long government bonds recently drew record foreign inflows, but most major life insurers are reducing their holdings of the nation’s bonds.

UniCredit SpA posted first-quarter profit that topped analyst expectations, strengthening Chief Executive Officer Andrea Orcel’s hand as he pursues potential acquisitions.

Net income in the three months through March rose to €2.77 billion ($3.1 billion), the highest ever for the company, Italy’s second-biggest bank said in a statement Monday. That compared with an average estimate of €2.38 billion.

UniCredit now forecasts annual profit exceeding €9.3 billion and revenue at about €23.5 billion. It also plans to increase investor payouts compared to last year.

Shares of Asian pharmaceutical companies fell after US President Donald Trump said he planned to order a cut in US prescription drug costs to bring them in line with other countries.

Drugmakers were the worst-performing sector in Japan on Monday, dragging the benchmark Topix lower despite hopes of a US-China trade deal broadly boosting markets across Asia.

Chugai Pharmaceutical Co. plunged as much as 10%, the most since February 2024, with peers Daiichi Sankyo Co. sliding 7.8% to the day’s low and Takeda Pharmaceutical Co. losing over 5%.

Meanwhile in Hong Kong, BeiGene Ltd. tumbled as much 8.8% and Innovent Biologics Inc. dropped 6.4%. In South Korea, SK Biopharmaceuticals Co., Celltrion Inc. and Samsung Biologics Co. all fell over 3%. India’s Sun Pharmaceutical Industries Ltd. lost 7% at one point, with Lupin Ltd. and Aurobindo Pharma Ltd. falling around 3%.

European stock futures gained after the US and China both reported “substantial progress” in their talks aimed at de-escalating a trade war.

Contracts on the Euro Stoxx 50 futures were up 0.8% as of 5:15 a.m. Monday in London. Germany’s DAX Index futures rose by a similar measure.

While neither side immediately announced specific measures, Chinese Vice Premier He Lifeng called the weekend talks in Switzerland “an important first step” toward resolving differences. US Treasury Secretary Scott Bessent said the US would share details on Monday, and He promised a joint statement.

For more than a decade, the flow of transatlantic capital moved in one direction, powering the ascent of an unstoppable dollar and leaving the euro far behind. Now, the biggest investors say the tide may be turning.

With the euro charting a course for its best year in two decades and asset managers like Amundi SA flipping from bear to bull, Europe’s currency is undergoing a resurgence that’s rarely been seen at any point since its creation in 1999.

As a result, Donald Trump’s determination to overhaul global trade has given European policymakers a chance at what they’ve long wanted — a currency seen as backing a strong, stable economic power, rather than a fractured, crisis-prone continent.

Goldman Sachs Group Inc. lifted its yuan forecast to 7 per dollar over the next 12 months as US-China trade negotiations get underway.

The bank also upgraded its view on the currency to 7.20 and 7.10 per dollar for the three and six-month periods, Goldman analysts led by Kamakshya Trivedi wrote in a note on Friday, citing factors including China’s strong exports.

“The undervalued levels of the currency, both on a real trade-weighted basis but especially versus the dollar, all point to the possibility for a stronger onshore yuan as a potential offset to tariff reductions,” the analysts wrote.

Japan won’t accept any initial trade agreement with the US that excludes auto tariffs, according to Prime Minister Shigeru Ishiba.

Ishiba on Monday made his stance clear when asked in parliament about the possibility that Washington might urge Tokyo to strike a provisional agreement that doesn’t address US tariffs on car imports.

In the same parliamentary session, top trade negotiator Ryosei Akazawa said that Japan will continue to seek a reprieve from all the tariff measures imposed by the US.

Chinese stocks posted modest gains and the yuan strengthened on signs that trade tensions between the world’s two largest economies are thawing.

The Hang Seng China Enterprises Index gained as much as 1.5%, while the CSI 300 Index rose as much as 0.6% during early trading on Monday. Both indexes are close to recouping their losses since US President Donald Trump’s ‘Liberation Day’ announcement of tariffs on April 2.

The positive opening came after both China and the US reported “substantial progress” in weekend talks, the clearest sign yet that further escalations of the trade war between the two countries can be avoided. But investors and strategists say they will need more details about exactly what progress has been made before they become too bullish.

Wheat futures fell to their lowest since July 2024 as harvests draw closer in the Northern Hemisphere, with rains benefiting crops in some key growers.

Many of the world’s top shippers will begin bringing in crops around mid-year. That is putting pressure on prices, with the influx set to bolster supplies in the near-term, Dennis Voznesenski, an agriculture economist at Commonwealth Bank of Australia, said by phone.

Crop conditions in some large producers, like the US and Russia, also don’t look as concerning as initially thought, he said.

Chinese copper concentrate imports climbed to nearly 3 million tons last month, a record that’s likely to ease price pressures in the domestic market and offer relief to smelters fighting over the availability of feedstock.

Spot treatment charges at global smelters are deeply in the red, an unprecedented collapse caused by a rapid expansion in capacity colliding with a global shortage of ore. The heaviest concentration of plants is in China, where output of refined copper has hit all-time highs despite pledges to rein in production to rescue margins.

In that context, China’s ability to secure such a large amount of concentrate will be a welcome boost to the industry. Domestic demand for copper has proven remarkably resilient in a slowing economy, while competition for supply has heated up as the US draws more metal ahead of tariffs threatened by the Trump administration.

Oil steadied as traders waited for details on US-China trade talks, after both countries reported “substantial progress” following two days of negotiations aimed at de-escalating a trade war that threatens crude demand.

Brent traded around $64 a barrel, paring an advance in early Asian trading after last week notching up its first weekly gain in three, while West Texas Intermediate was near $61.

After negotiations in Geneva, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said that they were upbeat on progress and would share more information on Monday, with the positive sentiment echoed by their Chinese counterparts.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.