\u200b\u200b\u200bUS markets dip on Monday ahead of Tuesday\u2019s CPI print<\/p>\n
\u200bOn Monday, US markets<\/a> pulled back slightly amid growing inflation concerns, a controversial chip\u2011revenue sharing mandate, and President Trump\u2019s deployment of the National Guard in Washington.<\/p>\n \u200bThe\u00a0Dow Jones Industrial Average<\/a> closed down around 200 points (-0.5%), while the\u00a0S&P 500<\/a> fell about 0.3%, and the\u00a0Nasdaq Composite<\/a> slipped 0.3%.<\/p>\n \u200bMarkets were weighed down by fears over renewed tariff pressures and inflation ahead of Tuesday\u2019s key\u00a0consumer price index (CPI) report.<\/p>\n \u200bSemiconductor stocks<\/a> came under pressure after it emerged that\u00a0Nvidia<\/a> and\u00a0Advanced Micro Devices (AMD)<\/a> agreed to hand over 15% of their China\u2011related chip revenue to the US government in exchange for export licenses – a highly unusual \u201cpay\u2011to\u2011play\u201d arrangement met with scepticism.<\/p>\n \u200bAt the same time, Trump escalated domestic tensions by placing Washington, D.C.\u2019s Metropolitan Police under federal control and deploying the National Guard to the capital.<\/p>\n \u200bOn the positive side, the Nasdaq\u202f100 posted a record closing high, lifted by ongoing strong tech demand.<\/p>\n \u200bAsian markets remain perky as RBA cuts rates<\/p>\n \u200bAsian stocks<\/a> advanced on Tuesday, with Japanese equities reaching a record high, as the extension of the tariff truce between the United States and China buoyed sentiment across the region. The agreement to prolong negotiations by a further 90 days delays the imposition of triple-digit tariffs on each other\u2019s goods, removing some uncertainty from markets, although the move had been widely anticipated.<\/p>\n \u200bIn Australia, shares remained neared record highs after the Reserve Bank of Australia (RBA) cut its main cash rate by 25 basis points to 3.60%, the lowest level in two years. The\u00a0Australian dollar<\/a> was choppy following the widely expected decision, as traders assessed its implications for the economy.<\/p>\n \u200bFTSE 100 nears record high<\/p>\n \u200bThe\u00a0FTSE 100<\/a> rose by 0.37% on Monday, while most of its European peers ended the day in the red, driven by strength in the healthcare and consumer sectors –\u00a0GlaxoSmithKline (GSK)<\/a> climbed 0.8% following US Food and Drug Administration’s (FDA) acceptance of its priority review for a gonorrhoea treatment, and\u00a0AstraZeneca<\/a> added 1.5%. Consumer names like\u00a0British American Tobacco (BATS)<\/a> and\u00a0Diageo<\/a> gained over 1%, while\u00a0Marks & Spencer<\/a> surged 2.4% thanks to the resumption of online clothing orders after a cyberattack.<\/p>\n \u200bOn Tuesday morning the FTSE 100 continued to trade on a positive footing as UK labour market data showed wage growth easing to 4.6%, slightly below the 4.7% forecast and down from 5% previously. At the same time, hiring intentions have fallen to their lowest level since the COVID-19 pandemic, while starting salaries are rising at the slowest pace in more than four years, pointing to a loss of momentum in the jobs market.<\/p>\n \u200bIs another BoE rate cut by year-end in the pipeline?<\/p>\n \u200bThe Bank of England (BoE)<\/a> remains split on interest rates, with four of its nine policymakers opposing last week\u2019s quarter-point cut to 4%. Despite market expectations for another 25 basis point rate cut in 2025, the\u00a0British pound<\/a> steadied,\u00a0but the currency faces headwinds from a soft economic outlook and increasingly bearish speculative positioning. Weekly US Commodity Futures Trading Commission data shows net short positions on the pound have climbed to $2.78 billion, marking a sharp reversal from the bullish stance held since February.<\/p>\n All eyes on US inflation report<\/p>\n \u200bLater in the day, the US inflation report will take centre stage at 1.30pm BST. Investors will parse the data to gauge the impact of President Trump\u2019s tariffs and the potential implications for the Federal Reserve\u2019s (Fed) interest rate trajectory.\u200b\u200b<\/p>\n","protected":false},"excerpt":{"rendered":"\u200b\u200b\u200bUS markets dip on Monday ahead of Tuesday\u2019s CPI print \u200bOn Monday, US markets pulled back slightly amid…\n","protected":false},"author":2,"featured_media":42954,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[84,467,56,54,55],"class_list":["post-61297","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/61297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=61297"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/61297\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/42954"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=61297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=61297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=61297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}