World shares are mixed after US inflation update suggests tariffs are
causing prices to rise
[July 16, 2025] By
ELAINE KURTENBACH
BANGKOK (AP) — Shares were mixed Wednesday in Europe and Asia after an
update on U.S. inflation pulled most Wall Street stocks lower, though
gains for Nvidia pushed the Nasdaq to another record.
The report showed inflation in the United States accelerated to 2.7%
last month from 2.4% in May. Economists said higher prices for clothes,
toys and other goods that usually are imported suggest stiffer tariffs
that President Donald Trump has imposed on other countries are fueling
inflation.
Germany's DAX edged 0.1% higher to 24,074.54, while the CAC 40 in Paris
shed 0.1% to 7,755.90. Britain's FTSE 100 was up 0.1% at 8,950.11.
The future for the S&P 500 fell less than 0.1% while that for the Dow
industrials was little changed.
In Asian trading, tokyo's Nikkei 225 edged less than 0.1% lower, to
39,663.40. Investors are focusing on the potential impact of an election
for the Upper House of Parliament on Sunday that is expected to lead to
tax cuts and higher spending as lawmakers try to restore the waning
popularity of the ruling Liberal Democrats.
Worries over a deterioration in Japan's fiscal health have pushed yields
of long-term Japanese government bonds to their highest levels in years.
“What’s at stake isn’t simply which party hands out the biggest bundle
of goodies. It’s whether the walls holding up Japan’s house of debt can
withstand another round of fiscal fireworks…” Stephen Innes of SPI Asset
Management said in a commentary.
Elsewhere in Asia, Hong Kong's Hang Seng shed 0.3% to 24,517.76, while
the Shanghai Composite index slipped less than 0.1% to 3,503.78.
South Korea's Kospi lost 0.9% to 3,186.38 and in Australia, the S&P/ASX
200 declined 0.8% to 8,561.80.
Taiwan's Taiex jumped 0.9% and India's Sensex added 0.2%. Thailand's SET
dropped 0.3%.
In Jakarta, shares rose 0.7% after President Donald Trump said on Truth
Social that he plans to charge imports from Indonesia a tariff of 19%,
while American goods sent to the Southeast Asian country will face no
tariffs. Trump also said Indonesia committed to buying U.S. energy,
agricultural products and aircraft.
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Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI), left, and the foreign exchange rate
between U.S. dollar and South Korean won, center, at the foreign
exchange dealing room of the Hana Bank headquarters in Seoul, South
Korea, Tuesday, July 15, 2025. (AP Photo/Ahn Young-joon)
 On Tuesday, the S&P 500 fell 0.4%,
staying near its all-time high set last week. The Dow Jones
Industrial Average dropped 1%, while the Nasdaq composite rose 0.2%
to a record 20,677.80 thanks to Nvidia, the market’s most
influential stock.
Nvidia said the U.S. government has assured it that licenses will be
granted for its H20 chip, used for artificial intelligence, again
and that deliveries will hopefully begin soon. Its 4% gain was by
far the strongest force pushing upward on the S&P 500.
Wall Street loves lower interest rates because they goose prices
higher for stocks and other investments, and Trump himself has been
clamoring for the Federal Reserve to cut rates more quickly. But the
Fed has been keeping interest rates on hold this year since lower
rates can give inflation more fuel while they boost the economy. Fed
Chair Jerome Powell has insisted he wants to see more data about how
tariffs affect the economy and inflation.
In other dealings early Wednesday, U.S. benchmark crude oil shed 21
cents to $66.31 per barrel. Brent crude, the international standard,
slipped 31 cents at $68.40 per barrel.
The dollar fell to 148.79 Japanese yen from 148.87 yen. The euro was
at $1.1630, up from $1.1602.
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