Global shares jump on hopes tariff war may subside
[April 23, 2025] By
YURI KAGEYAMA
TOKYO (AP) — Global shares mostly rose Wednesday, with markets showing
relief after President Donald Trump indicated he won't dismiss the head
of the U.S. Federal Reserve.
France's CAC 40 jumped 2.1% in early trading to 7,480.99, while
Germany's DAX rose 2.5% to 21,820.14. Britain's FTSE 100 gained 1.6% to
8,461.24. U.S. shares were set to drift higher with Dow futures up 1.5%
at 39,960.00. S&P 500 futures rose 2.0% to 5,421.75.
In Asia, Japan's benchmark Nikkei 225 gained 1.9% to finish at
34,868.63. Australia's S&P/ASX 200 surged 1.3% to 7,920.50. South
Korea's Kospi gained 1.6% to 2,525.56. Hong Kong's Hang Seng added 2.4%
to 222,072.62, while the Shanghai Composite edged down 0.1% to 3,296.36.
Trump had previously said he could fire Fed chair Jerome Powell after
the Fed paused cuts to short-term interest rates. But Trump told
reporters Tuesday, “I have no intention of firing him.”
Investors were also cheered by comments from U.S. Treasury Secretary
Scott Bessent in a Tuesday speech. He said the ongoing tariffs showdown
with China is unsustainable and he expects a “de-escalation” in the
trade war.
“Of course, markets will continue to listen out for the latest White
House rhetoric on tariffs and any hints of upcoming trade deals. As
such, market direction will more likely than not continue to be dictated
by Trump’s latest whims regarding tariffs and trade,” said Tim Waterer,
chief market analyst at KCM Trade.
The only prediction many Wall Street strategists are willing to make is
that financial markets will likely continue to veer up and down as hopes
rise and fall that Trump may negotiate deals with other countries to
lower his tariffs. If no such deals come quickly enough, many investors
expect the economy to fall into a recession.
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Currency traders watch monitors near a screen showing the Korea
Composite Stock Price Index (KOSPI) at the foreign exchange dealing
room of the KEB Hana Bank headquarters in Seoul, South Korea,
Wednesday, April 23, 2025. (AP Photo/Ahn Young-joon)
 The International Monetary Fund on
Tuesday slashed its forecast for global economic growth this year to
2.8%, down from 3.3%. A suite of better-than-expected profit reports
from big U.S. companies, meanwhile, helped drive U.S. stocks higher.
Also helping market sentiment was the announcement from Elon Musk
that he will spend less time in Washington and more time running
Tesla after his electric vehicle company reported a big drop in
profits. Its results have been hurt by vandalism, widespread
protests and calls for a consumer boycott amid a backlash to Musk’s
oversight of cost-cutting efforts for the U.S. government.
Tesla reported earnings after U.S. trading closed. Tesla's quarterly
profits fell from $1.39 billion to $409 million, far below analyst
estimates.
In energy trading, benchmark U.S. crude added 80 cents to $64.47 a
barrel. Brent crude, the international standard added 81 cents to
$68.25 a barrel.
In currency trading, the U.S. dollar declined to 141.87 Japanese yen
from 142.37 yen. The euro cost $1.1390, up from $1.1379. ___
AP Business Writer Stan Choe contributed.
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