European stock markets saw gains, especially in the automobile sector. This followed positive signals from US President Donald Trump regarding potential trade agreements with the European Union. The optimism was fueled by a trade deal with Japan. Porsche and Mercedes-Benz stocks performed well. Lonza shares also increased after a profit forecast. However, ASM International and SAP experienced declines.
Japanese auto stocks surged, leading the Nikkei to a one-year high after a U.S. trade deal reduced import levies to 15%. Toyota soared 14%. Trade clarity bolstered expectations for Bank of Japan rate hikes, pushing JGB yields to levels unseen since 2008.
Chakri Lokapriya discusses the impact of tariffs on various sectors, including capital markets, wires and cables, pharma, and IT. Retail brokerage margins are expected to decline, while the wires and cables segment hinges on economic revival and tariff clarity. Despite pharma's underperformance, potential buying opportunities exist, and IT sector growth depends on deal conversion and tariff resolution.
China's commerce minister has expressed strong objections to the EU's decision to include two Chinese banks in its latest round of sanctions against Russia, following Moscow's actions in Ukraine. This development occurred ahead of crucial talks in Beijing between EU leaders and top Chinese officials, where trade and the Ukraine war are set to dominate discussions.
Ideaforge shares fell over 7% after the drone maker posted a weak Q1FY26, with a net loss of Rs 23.5 crore and an 85% YoY revenue drop. Despite a defence order win, analyst sentiment remains negative, with a Sell rating and 24% downside target.
Markets are reacting positively to the US-Japan tariff deal, particularly the Nikkei. Investors were overly pessimistic, and the agreement, involving significant Japanese investment in the US, is viewed as a win-win. The auto sector secured 15% tariffs, better than anticipated, setting a precedent for other economies to negotiate similar deals with the US in exchange for direct investment.
Having done a trade deal with US President Donald Trump, Japan's prime minister will soon announce his resignation, reports said Wednesday, after his latest election debacle left his coalition without a majority now in both houses of parliament. The reports said Shigeru Ishiba had conveyed his intention to step down to those close to him, following the announcement Wednesday of a US-Japan trade deal.
