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Chinese battery giant CATL ended its first day on the Hong Kong Stock Exchange more than 16 percent higher Tuesday, having raised US$4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle (EV) batteries sold worldwide.The firm has been buoyed by a rapid growth in China’s domestic electric vehicle sector and it now works with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.However, it has also found itself in the crossfire of a superpower clash between Washington and Beijing for tech dominance, with Washington putting it on a blacklist naming it as a military company.The firm is already traded in the southern Chinese city of Shenzhen, and its plan for a secondary listing in Hong Kong was announced in December.In morning trading its Hong Kong shares hit a high of HK$311.40 (US$39.92), up 18.4 percent from its listing price of HK$263.00.The stock closed at HK$306.20.”This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero-carbon economy,” CATL’s founder and chairman Robin Zeng said at the firm’s listing ceremony on Tuesday.The raised funds could be used to accelerate its overseas expansion, including building its second European factory in Hungary after launching its first in Germany in January 2023.The strong interest in the company’s shares come even as it comes under the spotlight in the United States.In a list issued in January by the US Defense Department, CATL was designated as a “Chinese military company”.The US House Select Committee on the Chinese Communist Party highlighted this inclusion in letters to two Wall Street banks in April, urging them to withdraw from the IPO deal over its alleged links to the military.But the banks — JPMorgan and Bank of America — remain onboard.- Hong Kong IPO goal -Beijing has denounced the list as “suppression”, while CATL denied engaging “in any military related activities”.CATL also said in May filings it was “proactively engaging” with the Pentagon to “address the false designation”.Founded in 2011 in the eastern Chinese city of Ningde, the company has been given strong financial support from Beijing, which has sought in recent years to shore up domestic strength in certain strategic high-tech sectors.It has also weathered a fierce price war in China’s expansive EV sector that has put smaller firms under huge pressure to compete while remaining financially viable.Tuesday’s blockbuster listing is also a boon for Hong Kong’s stock exchange, which is eager for the return of big-name Chinese listings as it looks to regain its crown as the world’s top venue for IPOs.The Chinese finance hub saw a steady decline in new offerings after Beijing’s regulatory crackdown starting in 2020 led some mainland mega-companies to put their plans on hold, while a strict security law added to the uncertainty for companies looking to list.Data from the Hong Kong Stock Exchange shows it is processing dozens of applications from Chinese companies this year.Analysts said Tuesday’s IPO showcases Hong Kong’s role as a place for Chinese companies to raise capital.”We are also seeing a rising demand on portfolio diversification away from US dollar-denominated assets, underscored by the recent strength in the Hong Kong dollar,” Jason Lui, head of APAC equity and derivative strategy at BNP Paribas, told AFP.

Most markets rose Tuesday as risk appetite returned following the previous day’s US rating-fuelled losses, with sentiment also boosted after China cut interest rates to historic lows.The rally tracked advances on Wall Street, where the initial selloff sparked by Moody’s removal of Washington’s triple-A grade soon gave way to a push back into beaten-down equities amid hopes about US trade talks.After Donald Trump’s April 2 tariff blitz sowed global turmoil, the deal between China and the United States last week — which slashed eye-watering tit-for-tat levies — has re-energised dealers and pushed most markets back to levels before the US president’s “Liberation Day” duties.Trump suspended his harshest measures for 90 days until mid-July, and while few solid agreements have been reached so far there is optimism that the worst of the crisis has passed.Still, China caused a little concern after it accused Washington of violating their tariff deal in Geneva this month following a US warning that using Huawei’s AI chips anywhere in the world would break its export controls.Beijing called for a correction and warned of measures if the White House continued. Traders are also hoping the Federal Reserve will cut interest rates this year, with two reductions expected, according to Bloomberg News.However, two central bank officials remained cautious about when to resume their monetary easing, amid worries that the tariffs and possible tax cuts will reignite inflation.New York Fed boss John Williams indicated decision-makers might not be able to move before September, while the central bank’s vice chairman Philip Jefferson urged patience, adding that it was crucial to make sure any price increases do not become entrenched.Hong Kong stocks rose more than one percent, while Shanghai, Tokyo, Sydney, Singapore, Taipei, Bangkok, Wellington and Jakarta were all up.London, Paris and Frankfurt were also well up in morning exchanges.However, Neil Wilson at Saxo markets warned that traders were not yet out of the woods as US Treasury yields remain elevated.”Markets are clearly perturbed by ongoing trade uncertainty, economic policy uncertainty and the potential to lock in sweeping tax cuts in the US, undermining the fiscal position further,” he wrote in a commentary.”The question now is what policy moves can be engineered to tame yields, which could be a worry for equity markets.”- CATL’s soaring debut -The gains came as China’s central bank cut two key interest rates as officials battle to kickstart the economy, which faces persistent headwinds from a long-term domestic spending slump, a protracted debt crisis in the property sector and high youth unemployment.The People’s Bank of China lowered its one-year Loan Prime Rate, the benchmark for the most advantageous rates lenders can offer to businesses and households, to 3.0 percent from 3.1 percent.The five-year LPR, the benchmark for mortgage loans, was cut to 3.5 percent to 3.6 percent. Both rates were last cut in October to what were then record lows.”The rate cuts will reduce interest payments on existing loans, taking some pressure off indebted firms. It will also reduce the price of new loans,” Zichun Huang, China economist at Capital Economics, said in a note.However, she added that “modest rate cuts alone are unlikely to meaningfully boost loan demand or wider economic activity”.The “reductions… probably won’t be the last this year”, she said.The move came a day after data showed Chinese retail sales came in below expectations in April, highlighting a continued lack of confidence among consumers.In Hong Kong, Chinese battery giant CATL soared more than 18 percent at one point on its debut, having raised US$4.6 billion in the world’s biggest initial public offering this year.It finished 16.4 percent higher.The firm, which produces more than a third of all electric vehicle batteries sold worldwide, saw strong demand even after it was designated as a “Chinese military company” on a US list in January.The US House Select Committee on the Chinese Communist Party even highlighted this inclusion in letters to two US banks in April, urging them to withdraw from the IPO deal with the “Chinese military-linked company”.But the two banks — JPMorgan and Bank of America — are still onboard.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.1 percent at 37,529.49 (close)Hong Kong – Hang Seng Index: UP 1.5 percent at 23,681.48 (close)Shanghai – Composite: UP 0.4 percent at 3,380.48 (close)London – FTSE 100: UP 0.2 percent at 8,720.07Euro/dollar: UP at $1.1276 from $1.1244 on MondayPound/dollar: UP at $1.3393 from $1.3360Dollar/yen: DOWN at 144.14 yen from 144.87 yenEuro/pound: UP at 84.19 pence from 84.14 penceWest Texas Intermediate: DOWN 0.6 percent at $62.29 per barrelBrent North Sea Crude: DOWN 0.7 percent at $65.06 per barrelNew York – Dow: UP 0.3 percent at 42,792.07 (close)

Chinese battery giant CATL, which soared on its Hong Kong debut Tuesday, is a domestic success story with a risk-taking founder and global ambitions — but has found itself in the crossfire of a superpower clash for tech dominance.CATL — whose shares are already traded in Shenzhen — raised more than US$4.6 billion from its Hong Kong initial public offering, the world’s largest so far this year.The company produced more than a third of all EV batteries sold worldwide in 2023, working with many major automotive brands including Tesla, Mercedes-Benz, BMW and Volkswagen.Its batteries offer some of the fastest charging speeds in the world — this year, the firm said its Shenxing Superfast Charging Battery can add 520 kilometres (323 miles) of driving range after just five minutes of charging and withstand freezing temperatures.That’s 30 percent faster than main competitor BYD’s Super-e platform, which claims to deliver around 400 kilometres of range in five minutes.Founded in 2011, Contemporary Amperex Technology Co., Limited’s success has been buoyed by strong policy support from Beijing, which has poured billions into clean energy in the past decade and pushed to ensure self-reliance in high-tech sectors viewed as strategically vital.Its cheap, ultra-fast batteries have also been cited as a key driver behind the rapid rise of the Chinese EV market, which is now the world’s largest.It has also weathered a brutal price war between giants in the sector, with sales taking a hit as broader consumption in the country slumps.- Powerhouse -Billionaire CEO and founder Robin Zeng — once dubbed China’s “battery king” — is the country’s fifth richest person and the world’s 45th wealthiest, according to Bloomberg.The firm’s name in Chinese pays tribute to his hometown, the coastal eastern city of Ningde.On his blog Interconnected, tech writer and investor Kevin Xu described Zeng’s story as “classically rags to riches” in which he turned his “backwater town to a battery powerhouse”.He describes Zeng as a risk-taker and a “gambler” who has deftly charted the firm through regulatory uncertainty and fierce competition from domestic rivals.But CATL has also found itself at the centre of a struggle between the United States and China for tech dominance.The superpowers are fighting for the upper hand in developing advanced technologies critical to the functioning of the modern economy, including batteries, computer chips and artificial intelligence.CATL’s plans for a collaboration with car giant Ford on a US$3.5 billion plant in Marshall, Michigan, drew national security concerns last year.And in January, the United States defence department released a list that designated CATL as a “Chinese military company”.The firm has denied engaging in military activities, and Beijing has denounced the move as “suppression”.Proceeds from the firm’s IPO could be used to ramp up its plans for overseas expansion — particularly in Europe.It is currently constructing its second factory on the continent in Hungary after opening its first in Germany in January 2023.- ‘Thrive under pressure’ -And the firm said in December that it would work with Stellantis — which also owns the Chrysler, Jeep, Dodge and RAM truck brands — to make EV batteries in Spain, with production slated to begin by the end of 2026.It has even signed deals as far afield as the Democratic Republic of Congo, where it signed an agreement in 2021 with one of the world’s largest cobalt producers to develop a mine.And in Bolivia, its subsidiary CBC signed a US$1 billion deal last year to build two lithium carbonate production plants in the country’s southwest.CATL is aiming to pre-empt shifting trends in the EV sector, launching last month a sodium-ion battery, viewed as a cheaper and safer alternative to the lithium-ion batteries that are widely used in both electronics and EVs but pose a fire risk if damaged.”CATL became CATL because the government helped, but not so much that it became lazy,” investor Xu wrote.”Competition… also helped, battle-testing its technology and supply chain, but not before it got a leg up from the protectionist subsidies first,” Xu said.”Most intriguingly, it got an innate but prodigious gambler at the helm, who was born too poor to ever feel loss aversion… astute enough to read government policy tea leaves and paranoid enough to always thrive, not die, under pressure.”

Shares in Chinese battery giant CATL soared more than 18 percent on its Hong Kong debut Tuesday after raising US$4.6 billion in the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle (EV) batteries sold worldwide.The firm has been buoyed by a rapid growth in China’s domestic electric vehicle sector and it now works with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.However, it has also found itself in the crossfire of a superpower clash between Washington and Beijing for tech dominance, with Washington putting it on a blacklist naming it as a military company.The firm is already traded in the southern Chinese city of Shenzhen, and its plan for a secondary listing in Hong Kong was announced in December.In morning trading its Hong Kong shares hit a high of HK$311.40 (US$39.92), up 18.4 percent from its listing price of HK$263.00.”This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero-carbon economy,” CATL’s founder and chairman Robin Zeng said at the firm’s listing ceremony on Tuesday.The raised funds could be used to accelerate its overseas expansion, including building its second European factory in Hungary after launching its first in Germany in January 2023.The strong interest in the company’s shares come even as it comes under the spotlight in the United States.In a list issued in January by the Defense Department, CATL was designated as a “Chinese military company”.The US House Select Committee on the Chinese Communist Party highlighted this inclusion in letters to two Wall Street banks in April, urging them to withdraw from the IPO deal over its alleged links to the military.But the banks — JPMorgan and Bank of America — remain onboard.- Hong Kong IPO goal -Beijing has denounced the list as “suppression”, while CATL denied engaging “in any military related activities”.CATL also said in May filings it was “proactively engaging” with the US defence department to “address the false designation”.Founded in 2011 in the eastern Chinese city of Ningde, the company has been given strong financial support from Beijing, which has sought in recent years to shore up domestic strength in certain strategic high-tech sectors.It has also weathered a fierce price war in China’s expansive EV sector that has put smaller firms under huge pressure to compete while remaining financially viable.Tuesday’s blockbuster listing is also a boon for Hong Kong’s stock exchange, which is eager for the return of big-name Chinese listings as it looks to regain its crown as the world’s top venue for IPOs.The Chinese finance hub saw a steady decline in new offerings after Beijing’s regulatory crackdown starting in 2020 led some mainland mega-companies to put their plans on hold, while a strict security law added to the uncertainty for companies looking to list.Data from the Hong Kong Stock Exchange shows it is processing dozens of applications from Chinese companies this year.Analysts said Tuesday’s IPO showcases Hong Kong’s role as a place for Chinese companies to raise capital.”We are also seeing a rising demand on portfolio diversification away from US dollar-denominated assets, underscored by the recent strength in the Hong Kong dollar,” Jason Lui, head of APAC equity and derivative strategy at BNP Paribas, told AFP.

Asian markets rose Tuesday as investor sentiment returned following the previous day’s US rating-fuelled losses, with sentiment also boosted after China cut interest rates to historic lows.The rally tracked advances on Wall Street, where the initial selloff sparked by Moody’s removal of Washington’s triple-A grade soon gave way to a push back into beaten-down equities amid hopes about US trade talks.After Donald Trump’s April 2 tariff blitz sowed global turmoil, the deal between China and the United States last week — which slashed eye-watering tit-for-tat levies — has re-energised dealers and pushed most markets back to levels before the US president’s “Liberation Day” duties.Trump suspended his harshest measures for 90 days until mid-July, and while few solid agreements have been reached so far there is optimism that the worst of the crisis has passed.Traders are also hoping the Federal Reserve will cut interest rates this year, with two reductions expected, according to Bloomberg News. However, two central bank officials remained cautious about when to resume their monetary easing, amid worries that the tariffs and possible tax cuts will reignite inflation.New York Fed boss John Williams indicated decision-makers might not be able to move before September, while the central bank’s vice chairman Philip Jefferson urged patience, adding that it was crucial to make sure any price increases do not become entrenched.In early trade, Hong Kong, Shanghai, Tokyo, Sydney, Seoul, Singapore, Taipei, Wellington and Jakarta were all up.The gains came as China’s central bank cut two key interest rates as officials battle to kickstart the economy, which faces persistent headwinds from a long-term domestic spending slump, a protracted debt crisis in the property sector and high youth unemployment.The People’s Bank of China lowered its one-year Loan Prime Rate (LPR), the benchmark for the most advantageous rates lenders can offer to businesses and households, to 3.0 percent from 3.1 percent.The five-year LPR, the benchmark for mortgage loans, was cut to 3.5 percent to 3.6 percent. Both rates were last cut in October to what were then record lows.”The rate cuts will reduce interest payments on existing loans, taking some pressure off indebted firms. It will also reduce the price of new loans,” Zichun Huang, China economist at Capital Economics, said in a note.However, she added that “modest rate cuts alone are unlikely to meaningfully boost loan demand or wider economic activity”.The “reductions… probably won’t be the last this year”, she said.The move came a day after data showed Chinese retail sales came in below expectations in April, highlighting a continued lack of confidence among consumers.In Hong Kong, Chinese battery giant CATL soared more than 13 percent on its debut, having raised US$4.6 billion in the world’s biggest initial public offering this year.The firm, which produces more than a third of all electric vehicle batteries sold worldwide, saw strong demand even after it was designated as a “Chinese military company” on a US list in January.The US House Select Committee on the Chinese Communist Party even highlighted this inclusion in letters to two US banks in April, urging them to withdraw from the IPO deal with the “Chinese military-linked company”.But the two banks — JPMorgan and Bank of America — are still onboard.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 37,691.56 (break)Hong Kong – Hang Seng Index: UP 1.0 percent at 23,568.99Shanghai – Composite: UP 0.2 percent at 3,373.52Euro/dollar: DOWN at $1.1243 from $1.1244 on MondayPound/dollar: UP at $1.3363 from $1.3360Dollar/yen: DOWN at 144.84 yen from 144.87 yenEuro/pound: UP at 84.15 pence from 84.14 penceWest Texas Intermediate: UP 0.2 percent at $62.82 per barrelBrent North Sea Crude: DOWN 0.1 percent at $65.46 per barrelNew York – Dow: UP 0.3 percent at 42,792.07 (close)London – FTSE 100: UP 0.2 percent at 8,699.31 (close)

India’s plans to massively expand coal-based steel and iron production threaten global efforts to reduce the sector’s carbon emissions, a key contributor to climate change, a report said Tuesday.The sector accounts for 11 percent of global carbon dioxide emissions, and India aims to double production by 2030.Switching from coal-dependent blast furnaces to electric arc furnaces (EAFs), which produce significantly fewer emissions, could reduce that figure.EAF production is projected to make up 36 percent of the sector by 2030, but that falls short of the 37 percent the International Energy Agency (IEA) says is needed to stay on track for net-zero by 2050.”The only realistic way to meet that 37 percent goal is with a change of plans from India,” said Astrid Grigsby-Schulte from the Global Energy Monitor (GEM) think tank.That seemingly marginal one-percent difference “represents tens of millions of tonnes of CO2 generation”, Grigsby-Schulte told AFP.EAFs generally rely on melting scrap steel, a process that does not use coal. They produce significantly fewer emissions, even when they rely on electricity from coal-dependent grids.Meeting the 2030 target is “critical”, she said, “not only because of emissions immediately avoided, but also because it means we are laying the necessary groundwork for broader decarbonisation by 2050.”China currently dominates global steel production, but its sector is stagnant. Meanwhile India, which targets carbon neutrality only by 2070, plans to massively expand domestic capacity.And the majority of India’s announced steel development plans involve higher-emissions blast furnace production, in a country whose steel industry is already the world’s most carbon intensive.However, there is a growing gap between India’s steel capacity plans and actual developments on the ground, GEM said.Just 12 percent of its announced new capacity has come online since the country released its 2017 National Steel Policy. The comparable figure for China is 80 percent, GEM said.That suggests India’s “ambitious growth plans are more talk than action thus far,” the group added.And it “leaves a huge percentage of their development plans that could still shift to lower-emissions technologies,” added Grigsby-Schulte.Demand for steel is continuing to grow, and the iron and steel industry is expected to be one of the last to continue using coal in the IEA’s 2050 net-zero pathway.The organisation has warned that the sector needs to “accelerate significantly” to meet 2050 targets, including with innovative production methods that are currently in their infancy.

Shares in Chinese battery giant CATL soared more than 13 percent on its Hong Kong debut Tuesday after raising US$4.6 billion in what is said to be the world’s biggest initial public offering this year.A global leader in the sector, CATL produces more than a third of all electric vehicle (EV) batteries sold worldwide.The firm has been buoyed by a rapid growth in China’s domestic electric vehicle sector and it now works with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.It is already traded in the southern Chinese city of Shenzhen, and its plan for a secondary listing in Hong Kong was announced in December.In morning trade its Hong Kong shares hit a high of HK$299.80 (US$38.4), up 13.7 percent from its listing price of HK$263.00.Founded in 2011 in the eastern Chinese city of Ningde, Contemporary Amperex Technology Co., Limited (CATL) has been aided by strong financial support from Beijing, which has sought in recent years to shore up domestic strength in certain strategic high-tech sectors.It has also weathered a fierce price war in China’s expansive EV sector that has put smaller firms under huge pressure to compete while remaining financially viable.Its net profit jumped 32.9 percent in the first quarter, with sales up 6.2 percent year-on-year to 84.7 billion yuan (US$11.7 billion).And funds raised from a secondary listing could be used to accelerate CATL’s overseas expansion, particularly in Europe.The battery giant is building its second factory on the continent in Hungary after launching its first in Germany in January 2023.CATL announced in December that it would work with automotive giant Stellantis on a US$4.6 billion factory to make EV batteries in Spain, with production to begin by the end of 2026.Tuesday’s blockbuster listing comes as Hong Kong’s stock exchange is eager for the return of big-name Chinese listings in hopes of regaining its crown as the world’s top IPO venue.The Chinese finance hub saw a steady decline in new offerings after Beijing’s regulatory crackdown starting in 2020 led some mainland mega-companies to put their plans on hold.In a list issued in January by the US Defense Department, CATL was designated as a “Chinese military company”.The UHouse Select Committee on the Chinese Communist Party highlighted this inclusion in letters to two US banks in April, urging them to withdraw from the IPO deal with the “Chinese military-linked company”.But the two banks — JPMorgan and Bank of America — are still onboard.Beijing has denounced the list as “suppression”, while CATL denied engaging “in any military related activities”.According to Bloomberg, CATL plans to make the deal as a “Reg S” offering, which does not allow sales to US onshore investors, limiting the company’s exposure to legal risks in the United States.

Chinese battery giant CATL makes its debut on the Hong Kong stock exchange on Tuesday, with the firm aiming to raise $4 billion in the largest initial public offering (IPO) in the city so far this year.A global leader in the sector, CATL produces more than a third of all electric vehicle (EV) batteries sold worldwide.Buoyed by a rapid growth in China’s domestic electric vehicle sector, it now works with major brands including Tesla, Mercedes-Benz, BMW and Volkswagen.The company is already listed in Shenzhen, and its plan for a secondary listing in Hong Kong was announced in a December filing with the stock exchange.According to a prospectus filed last week, the firm will offer approximately 117.9 million units priced at up to HK$263 per share ($33.8) for total expected proceeds of HK$31.01 billion.Founded in 2011 in the eastern Chinese city of Ningde, Contemporary Amperex Technology Co., Limited (CATL) has been aided by strong financial support from Beijing, which has sought in recent years to shore up domestic strength in certain strategic high-tech sectors.It has also weathered a fierce price war in China’s expansive EV sector that has put smaller firms under huge pressure to compete while remaining financially viable.Its net profit jumped 32.9 percent in the first quarter, with sales rising by 6.2 percent year-on-year to 84.7 billion yuan.And funds raised from a secondary listing could be used to accelerate CATL’s overseas expansion, particularly in Europe.The battery giant is building its second factory on the continent in Hungary after launching its first in Germany in January 2023.In December, CATL announced that it would work with automotive giant Stellantis on a $4.6 billion factory to make EV batteries in Spain, with production to begin by the end of 2026.Tuesday’s blockbuster listing comes as Hong Kong’s stock exchange is eager for the return of big-name Chinese listings in hopes of regaining its crown as the world’s top IPO venue.The Chinese finance hub saw a steady decline in new offerings since Beijing’s regulatory crackdown starting in 2020 led some Chinese mega-companies to put their plans on hold.In a list issued in January by the US Defense Department, CATL was designated as a “Chinese military company”.The United States House Select Committee on the Chinese Communist Party highlighted this inclusion in letters to two US banks in April, urging them to withdraw from the IPO deal with the “Chinese military-linked company”.But the two banks — JPMorgan and Bank of America — are still on the deal.Beijing has denounced the list as “suppression”, while CATL denied engaging “in any military related activities”.According to Bloomberg, CATL plans to make the deal as a “Reg S” offering, which doesn’t allow sales to US onshore investors, limiting the company’s exposure to legal risks in the United States.

Wall Street stocks finished a meandering session higher Monday, shrugging off Moody’s downgrade of US sovereign debt, which could balloon further.Yields of US Treasury bonds spiked early in the day in a dynamic that revived talk of the “Sell America” narrative that unsettled markets in early April following President Donald Trump’s sweeping tariff announcements.But US Treasury yields subsequently eased as markets concluded that Moody’s analysis contained no surprises.After the knee-jerk reaction, “the market settles down and focuses on the economic fundamentals,” said Subadra Rajappa, head of US rates strategy at Societe Generale.The downgrade reflects serious concerns about the US’ fiscal picture, but these were well known prior to the Moody’s downgrade, Rajappa said.All three major US indices finished with modest gains.The dollar retreated somewhat against the euro and other major currencies. But the move was less substantial than during most volatile stretches earlier this year.In comparison with that turbulent period, a closely-watched volatility index remained relatively stable on Monday. Stocks have rallied since Trump suspended many of his most onerous tariff measures.Gold, seen as a safe haven investment, jumped more than one percent.In Europe, London and Frankfurt erased early losses to close higher after UK and EU leaders reached a series of defense and trade accords at a landmark summit, the first since Britain’s acrimonious exit from the European Union.British Prime Minister Keir Starmer said leaders had agreed a “win-win” deal that his office said would add nearly £9 billion ($12 billion) to the British economy by 2040.The euro, meanwhile, strengthened despite a cut to the eurozone’s 2025 economic growth forecast due to global trade tensions sparked by Trump’s tariffs.The European Commission said the 20-country single currency area’s economy should grow 0.9 percent in 2025 — down from a previous forecast of 1.3 percent — due to “a weakening global trade outlook and higher trade policy uncertainty”.”Underpinned by a robust labor market and rising wages, growth is expected to continue in 2025, albeit at a moderate pace,” EU economy chief Valdis Dombrovskis said.In company news, Walmart returned to the list of firms feeling a rollercoaster effect under Trump, after the US president slammed the retail giant for warning of price increases due to his tariffs.Trump called on the company to “EAT THE TARIFFS” on social media, adding, “I’ll be watching.”Walmart shares finished slightly lower on Monday.- Key figures at around 2030 GMT -New York – Dow: UP 0.3 percent at 42,792.07 (close)New York – S&P 500: UP 0.1 percent at 5,963.60 (close)New York – Nasdaq Composite: UP less than 0.1 percent at 19,104.28London – FTSE 100: UP 0.2 percent at 8,699.31 (close)Paris – CAC 40: FLAT at 7,883.63 (close)Frankfurt – DAX: UP 0.7 percent at 23,934.98 (close)Tokyo – Nikkei 225: DOWN 0.7 percent at 37,498.63 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 23,332.72 (close)Shanghai – Composite: FLAT at 3,367.58 (close)Euro/dollar: UP at $1.1244 from $1.1163 on FridayPound/dollar: UP at $1.3360 from $1.3283Dollar/yen: DOWN at 144.87 yen from 145.70 yenEuro/pound: UP at 84.14 pence from 84.04 penceWest Texas Intermediate: UP 0.3 percent at $62.69 per barrelBrent North Sea Crude:  UP 0.2 percent at $65.54 per barrelburs-jmb/dw

US stocks fell with the dollar Monday as markets reacted to the United States losing its last gold-standard sovereign bond rating over a debt pile that could balloon further.The downgrade by Moody’s dealt a blow to markets, which had enjoyed a healthy run-up last week after Washington and China reached a deal to temporarily slash tit-for-tat tariffs.US stocks were down in midday trading, led by the tech-heavy Nasdaq, which fell around half a percent.That mirrored losses in Asia, where Tokyo and Hong Kong closed down.In Europe, London and Frankfurt erased early losses to close higher after UK and EU leaders reached a series of defence and trade ties at a landmark summit, the first since Britain’s acrimonious exit from the European Union.British Prime Minister Keir Starmer said leaders had agreed a “win-win” deal that his office said would add nearly £9 billion ($12 billion) to the British economy by 2040.The euro powered ahead despite the EU cutting its 2025 growth forecast for the eurozone, blaming US tariffs.The dollar slid nearly one percent against the euro and also fell heavily against the pound and yen.Analysts said the downgrade by Moody’s late Friday — which follows similar moves by S&P in 2011 and Fitch in 2023 — could indicate investors will demand higher yields on US Treasuries, pushing up the cost of government debt. Yields rose on Monday.”It seems like the ‘Sell America’ narrative is making a comeback,” said Fawad Razaqzada, market analyst at City Index and FOREX.com.The downgrade is “sending tremors through some global markets,” he said.”Investors are increasingly jittery about the cost implications of higher borrowing, especially given the backdrop of (US President) Donald Trump’s ongoing trade disputes and proposals for unfunded tax cuts.”Gold, seen as a haven investment, jumped more than one percent.- ‘EAT THE TARIFFS’ -After a markets rout sparked by Trump’s Liberation Day tariffs bazooka, investors had in recent weeks raced back to buy up beaten-down stocks as the White House tempered its hardball tariff approach.But the selling returned after Moody’s cut its US debt rating to Aa1 from Aaa, noting “the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns”.Treasury Secretary Scott Bessent dismissed the announcement, saying it was “a lagging indicator” and blaming Trump’s predecessor, Joe Biden.The news added to a frustrating time for Trump as his “big, beautiful bill” to extend tax cuts from his first term and impose new restrictions on welfare programmes faces scrutiny in the Republican-controlled Congress.Independent congressional analysts say the package would add more than $4.8 trillion to the federal deficit over the coming decade.In company news, Walmart returned to the list of firms feeling a rollercoaster effect under Trump, after the US president slammed the retail giant for warning of price increases due to his tariffs.Trump called on the company to “EAT THE TARIFFS” on social media, adding, “I’ll be watching.”Walmart shares fell Monday.- Key figures at around 1530 GMT -New York – Dow: DOWN 0.2 percent at 42,559.81 pointsNew York – S&P 500: DOWN 0.4 percent at 5,936.86New York – Nasdaq Composite: DOWN 0.6 percent at 19,104.28London – FTSE 100: UP 0.2 percent at 8,699.31 (close)Paris – CAC 40: FLAT at 7,883.63 (close)Frankfurt – DAX: UP 0.7 percent at 23,934.98 (close)Tokyo – Nikkei 225: DOWN 0.7 percent at 37,498.63 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 23,332.72 (close)Shanghai – Composite: FLAT at 3,367.58 (close)Euro/dollar: UP at $1.1259 from $1.1154 on FridayPound/dollar: UP at $1.3366 from $1.3278Dollar/yen: DOWN at 144.85 yen from 145.92 yenEuro/pound: UP at 84.19 pence from 83.97 penceWest Texas Intermediate: DOWN 0.2 percent at $62.06 per barrelBrent North Sea Crude: DOWN 0.1 percent at $65.46 per barrelburs-jhb/js