TOKYO (AP) — Shares were mostly higher in Europe on Monday following gains in Asian markets despite lingering worries about President Donald Trump’s latest updates to his tariffs.
Shares in tech giant Nvidia jumped 5.2% in pre-market trading after its CEO said the Trump administration will let it sell to China its advanced H20 chips used to develop artificial technology.
Germany's DAX gained 0.3% to 24,222.95 and the CAC 40 in Paris was up less than 0.1% at 7,812.14. Britain's FTSE 100 was nearly unchanged at 8,996.90.
The future for the S&P 500 gained 0.4% while that for the Dow Jones Industrial Average slipped 0.1%.
In Asian trading, Japan's benchmark Nikkei 225 rose 0.6% to finish at 39,678.02.
A nationwide election for the upper house of Japan’s Parliament, set for Sunday, also added to the wait-and-see attitude among market players. Analysts say the ruling pro-business Liberal Democratic Party may face an uphill battle and will likely need coalition partners, including possibly new ones, to keep its grip on power.
Australia's S&P/ASX 200 added 0.7% to 8,630.30. South Korea's Kospi edged up 0.4% to 3,215.28. Hong Kong's Hang Seng rose 1.6% to 24,590.12, while the Shanghai Composite dipped 0.4% to 3,505.00, after the government reported that China's economy slowed in the last quarter as Trump’s trade war escalated.
Tuesday's data showed the economy expanded at a robust 5.2% annual pace, compared with 5.4% annual growth in January-March. In quarterly terms, the world’s second-largest economy expanded by 1.1%, according to government data.
Despite worries about the damage Trump's tariffs may have on the region's exporters, speculation continues that he may ultimately back down on them. They don't take effect until Aug. 1, which leaves time for more negotiations.
On Wall Street Monday, the S&P 500 edged up by 0.1%, the Dow added 0.2% and the Nasdaq composite rose 0.3%.
If Trump were to enact all his proposed tariffs on Aug. 1, they would raise the risk of a recession. That would not only hurt American consumers but also raise the pressure on the U.S. government’s debt level relative to the economy’s size, particularly after Washington approved big tax cuts that will add to the deficit.
For the time being, the uncertainty around tariffs could help keep markets unsteady. This upcoming week has several potential flashpoints that could shake things up.
The latest reading on inflation across the U.S. comes Tuesday, with economists expecting it to show inflation accelerated to 2.6% last month from 2.4% in May.
