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Asian equities edged higher Wednesday as traders weighed Donald Trump’s trade war and fresh data that indicated further weakness in the US economy but added to interest rate cut speculation.The US president’s claim that Washington was “very close to a deal” to extend a China truce provided some optimism, though that was tempered by his warning of fresh levies on pharmaceuticals and chips.After a strong start to the week sparked by hopes that painful jobs data will force the US Federal Reserve to lower rates next month, another batch of figures added fuel to the fire.A closely watched index of services activity showed it had barely grown in July as companies contended with weaker hiring conditions and rising prices.The news came after Friday’s jobs data revealed far fewer US jobs were created than expected in May, June and July.”Market pricing has moved aggressively in favour of a September rate cut by the Federal Reserve, after a weak July jobs report and ugly revisions to May and June signalled the US labour market may finally be cracking under the pressure of tariffs,” said Neil Wilson at Saxo Markets. “The data pushed the US closer to stagflationary territory,” he said.”So far, the market has held up and looked beyond the tariff risks, but we may at last be seeing the hard data finally catch up with the soft survey data.”But while bets on a rate cut in September have soared, he said such a move was not a certainty.Stocks fluctuated through the morning but went into the afternoon on a more positive note.Tokyo,Shanghai, Singapore, Sydney, Seoul, Wellington, Manila, Bangkok and Jakarta rose, while Hong Kong was marginally higher. Taipei and Mumbai were in the red.London, Paris and Frankfurt enjoyed healthy buying in the morning, while Wall Street futures also advanced.Confidence remains thin as Trump’s tariff threats linger, with several countries — including India and Switzerland — still to hammer out deals before his delayed deadline Thursday, and agreed levies with others to kick in.In his latest salvo, Trump told CNBC he was looking at hitting pharmaceuticals with tolls that eventually reach 250 percent, while semiconductors were also in the firing line. He has said he will also hammer India over its purchases of Russian oil.Still, Trump did strike a positive note on China, which is in talks with US officials to continue a truce agreed in May that saw the world’s two largest economies pare down their eye-watering triple-digit tariffs.Regarding Chinese President Xi Jinping, Trump told CNBC’s “Squawk Box” that “I’ll end up having a meeting before the end of the year, most likely, if we make a deal.”If we don’t make a deal, I’m not going to have a meeting. I mean, you know, what’s the purpose of meeting if we’re not going to make a deal?”But we’re getting very close to a deal.”He added that his relationship with Xi was “very good” and that “I think we’ll make a good deal. It’s not imperative, but I think we’re going to make a good deal”. In company news, shares in Hong Kong carrier Cathay Pacific plunged more than nine percent in the city after it said passenger yield tumbled in the first half of the year. However, it also said it had placed an order with Boeing for 14 jets worth more than US$8 billion. The deal marks its first order with the US giant in 12 years.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: UP 0.6 percent at 40,794.86 (close)Hong Kong – Hang Seng Index: FLAT at 24,910.63 (close)Shanghai – Composite: UP 0.5 percent at 3,633.99 (close)London – FTSE 100: UP 0.2 percent at 9,159.71 Euro/dollar: DOWN at $1.1581 from $1.1582 on TuesdayPound/dollar: UP at $1.3301 from $1.3294Dollar/yen: DOWN at 147.53 yen from 147.55 yenEuro/pound: UP at 87.07 pence from 87.01 penceWest Texas Intermediate: UP 0.8 percent at $65.69 per barrelBrent North Sea Crude: UP 0.8 percent at $68.20 per barrelNew York – Dow: DOWN 0.1 percent at 44,111.74 (close)

Since the start of US President Donald Trump’s global trade war, Taiwanese orchid grower Lee Tsang-yu has watched tariffs on his seedlings shoot from nothing to 20 percent.But, after weathering many economic crises, the 61-year-old seasoned farmer is digging in.Lee is cultivating new markets in Thailand and expanding in Vietnam, Indonesia and Brazil, while cutting back shipments to the United States.”The US is such a huge market, we can’t pull out, and we won’t,” said Lee, whose company, Charming Agriculture, operates four rugby field-sized greenhouses in Houbi, a district of the southern city of Tainan.Taiwan’s more than 300 orchid growers rank among the world’s biggest producers of the thick-leaved plants, with Phalaenopsis orchids, also known as moth orchids, dominating exports.The island’s orchid shipments reached NT$6.1 billion (US$204 million) in 2024, with about NT$2 billion worth of plants sent to the United States, its biggest market, official data shows.Until now, most growers have been absorbing the cost of the 10 percent tariff that Trump slapped on nearly every trading partner in April, said Ahby Tseng, 53, secretary-general of the Taiwan Orchid Growers Association.But “no one can bear” all of Trump’s temporary 20 percent levy on Taiwan announced last week, he said.Tseng said Taiwan’s main rival in the United States was The Netherlands, which has been hit with a relatively lighter 15 percent tariff.The five percentage point difference is significant, he said.”It is actually very difficult to immediately pass the cost on to consumers because consumers can choose not to buy, or they can choose to buy other types of flowers,” Tseng said.And stockpiling orchids in a warehouse wasn’t an option given that the plants “keep growing”.While the higher tariff would erode his bottom line, Lee said he was more concerned about the general state of the US economy since Trump took office.”Everything has become more expensive in the US, and consumer spending is shrinking — that’s what worries me,” he said.”Since late May, we’ve already cut shipments by 15 percent. Before that, the US accounted for 45 percent of our exports.”Lee said he was optimistic his efforts to expand into other markets, though slow and not always as lucrative, would “gradually offset this impact”.Taiwan’s orchids also had a competitive edge, he said — their flowers could last longer than Dutch plants.And, he reasons, “Trump won’t be president forever.” 

India’s central bank maintained its key interest rate at 5.50 percent on Wednesday, as US President Donald Trump ramped up threats to raise tariffs on New Delhi because of Russian oil purchases.The Reserve Bank of India (RBI) kept steady the repurchase rate, the level at which it lends to commercial banks, after a unanimous vote by a six-member panel.A majority of analysts had forecast a pause following a surprise 50-basis-point reduction in June.Bank governor Sanjay Malhotra said global trade challenges remained but that the “Indian economy holds bright prospects in the changing world order”.”We have taken decisive and forward looking measures to support growth,” he said in a statement.The RBI cut rates for the first time in nearly five years in February and followed up with two other reductions in April and June.The Indian government has forecast above-average monsoon rains, which observers say should help growth, as higher agricultural output will aid the rural economy and keep vegetable prices stable.But Trump’s announcement Tuesday to “substantially” hike tariffs on Indian imports because of New Delhi’s purchases of Russian oil has added pressure on India.Before that threat was made, the existing 10 percent US tariff on Indian products was already due to rise to 25 percent on Thursday.Malhotra acknowledged that “the uncertainties of tariffs are still evolving” even though “growth is robust”. Trump’s pressure on India comes after he signalled fresh sanctions on Russia if it did not make progress by Friday towards a peace deal with Ukraine.India, the world’s most populous country, is not an export powerhouse, but the United States is its largest trading partner.

Asian investors trod warily Wednesday amid lingering uncertainty over Donald Trump’s trade war, while another round of data indicated further weakness in the US economy but added interest rate cut speculation.The US president’s claim that Washington was “very close to a deal” to extend a China truce provided some optimism, though that was tempered by his warning of fresh levies on pharmaceuticals and chips.After a strong start to the week sparked by hopes that painful jobs data will force the US Federal Reserve to lower rates next month, another batch of figures added fuel to the fire.A closely watched index of services activity showed it had barely grown in July as companies contend with weaker hiring conditions and rising prices.The news came after Friday’s jobs data revealed far fewer US jobs were created than expected in May, June and July.”Market pricing has moved aggressively in favour of a September rate cut by the Federal Reserve, after a weak July jobs report and ugly revisions to May and June signalled the US labour market may finally be cracking under the pressure of tariffs,” said Neil Wilson at Saxo Markets. “The data pushed the US closer to stagflationary territory,” he said.”So far, the market has held up and looked beyond the tariff risks, but we may at last be seeing the hard data finally catch up with the soft survey data.”But while bets on a rate cut in September have soared, he remained unsure that such a move was a certainty.Stocks fluctuated through the morning.Tokyo, Shanghai, Sydney, Wellington, Manila and Jakarta rose but Hong Kong, Singapore, Seoul and Taipei were in the red.Confidence remains thin as Trump’s tariff threats linger, with several countries — including India and Switzerland — still to hammer out deals before his delayed deadline Thursday, and agreed levies with others begin to kick in.In his latest salvo, Trump told CNBC he was looking at hitting pharmaceuticals with tolls that eventually reach 250 percent, while semiconductors were also in the firing line. He has said he will also hammer India over its purchases of Russian oil.Still, Trump did strike a positive note on China, which is in talks with US officials to continue a truce agreed in May that saw the world’s two largest economies pare down their eye-watering triple-digit tariffs.Regarding Chinese President Xi Jinping, Trump told CNBC’s “Squawk Box” that “I’ll end up having a meeting before the end of the year, most likely, if we make a deal.”If we don’t make a deal, I’m not going to have a meeting. I mean, you know, what’s the purpose of meeting if we’re not going to make a deal?”But we’re getting very close to a deal.”He added that his relationship with Xi was “very good” and that “I think we’ll make a good deal. It’s not imperative, but I think we’re going to make a good deal”. – Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.6 percent at 40,802.73 (break)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 24,844.94Shanghai – Composite: UP 0.1 percent at 3,619.78Euro/dollar: DOWN at $1.1570 from $1.1582 on TuesdayPound/dollar: UP at $1.3303 from $1.3294Dollar/yen: UP at 147.61 yen from 147.55 yenEuro/pound: DOWN at 86.97 pence from 87.01 penceWest Texas Intermediate: UP 0.5 percent at $65.46 per barrelBrent North Sea Crude: UP 0.5 percent at $67.96 per barrelNew York – Dow: DOWN 0.1 percent at 44,111.74 (close)London – FTSE 100: UP 0.2 percent at 9,142.73 (close)

As the United States ramps up tariffs on major trading partners globally, President Donald Trump is also disrupting strategies that could be used — by Chinese companies or others — to circumvent them.Goods deemed to be “transshipped,” or sent through a third country with lower export levies, will face an additional 40-percent duty under an incoming wave of Trump tariffs Thursday.The latest tranche of “reciprocal” tariff hikes, taking aim at what Washington deems unfair trade practices, impacts dozens of economies from Taiwan to India.The transshipment rule does not name countries, but is expected to impact China significantly given its position as a manufacturing powerhouse.Washington likely wants to develop supply chains that are less reliant on China, analysts say, as tensions simmer between the world’s two biggest economies and the US sounds the alarm on Beijing’s excess industrial capacity.But “it’s a little more about the short-term effect of strengthening the tariff regime than it is about a decoupling strategy,” said Josh Lipsky, chair of international economics at the Atlantic Council.”The point is to make countries worried about it and then have them err on the side of not doing it, because they know that Trump could then jack up the tariff rates higher again,” he added, referring to tariff evasion.The possibility of a sharply higher duty is a “perpetual stick in the negotiations” with countries, said Richard Stern, a tax and budget expert at the conservative Heritage Foundation.He told AFP that expanding penalties across the globe takes the focus away from Beijing alone.- Alternative supplies -Experts have noted that Vietnam was the biggest winner from supply chain diversions from China since the first Trump tariffs around 2018, when Washington and Beijing engaged in a trade war.And Brookings Institution senior fellow Robin Brooks pointed to signs this year of significant transshipments of Chinese goods.He noted in a June report that Chinese exports to certain Southeast Asian countries started surging “anomalously” in early 2025 as Trump threatened widespread levies.While it is unclear if all these products end up in the United States, Brooks cast doubt on the likelihood that domestic demand in countries like Thailand and Vietnam rocketed right when Trump imposed duties.”One purpose of the transshipment provisions is to force the development of supply chains that exclude Chinese inputs,” said William Reinsch, senior adviser at the Center for Strategic and International Studies.”The other purpose is to push back on Chinese overcapacity and force them to eat their own surpluses,” he added.But Washington’s success in the latter goal depends on its ability to get other countries on board.”The transshipment penalties are designed to encourage that,” Reinsch said.Lipsky added: “The strategy that worked in the first Trump term, to try to offshore some Chinese manufacturing to other countries like Vietnam and Mexico, is going to be a much more difficult strategy to execute now.”- China response? -Lipsky noted that Beijing could see the transshipment clause as one targeting China on trade, “because it is.””The question is, how China takes that in the broader context of what had been a thawing relationship between the US and China over the past two months,” he added.While both countries temporarily lowered triple-digit tariffs on each other’s exports, that truce expires August 12.The countries are in talks to potentially extend the de-escalation, although the final decision lies with Trump.It will be tough to draw a line defining product origins, analysts say.Customs fraud has been illegal for some time, but it remains unclear how Washington will view materials from China or elsewhere that have been significantly transformed.The burden lies with customs authorities to identify transshipment and assess the increased duties.”That will be difficult, particularly in countries that have close relations with China and no particular incentive to help US Customs and Border Protection,” Reinsch added.

Wall Street stocks fell Tuesday as a rally ran out of steam following lackluster economic data, while investors monitor ongoing trade talks ahead of new tariff hikes set to take effect later this week.US President Donald Trump told CNBC he plans fresh tariffs on imported pharmaceuticals and semiconductors. Trump also said he expects to raise the US tariff on Indian imports due to the country’s purchases of Russian oil.The statements come before a separate set of tariff hikes goes into force on dozens of economies later this week. Swiss officials traveled to Washington Tuesday to try to strike a last-minute deal.Investors also digested an index of US services activity that came in at 50.1 percent, just barely in growth mode as companies contend with weaker hiring conditions and increased pricing pressure.The report comes on the heels of jobs data last Friday that pointed to slowing in the labor market. On the positive side, “a weaker economy could mean more rate cuts from the Fed,” said Adam Sarhan of 50 Park Investments.After opening higher, US indices fell into negative territory, with the S&P 500 ending down 0.5 percent.European markets ended mixed, with Paris dipping into the red, while oil prices retreated further on worries about the demand outlook.Swiss leaders flew to Washington on Tuesday in a last-ditch effort to avoid a hefty 39-percent tariff.Meanwhile, the European Union on Tuesday announced the suspension of its retaliatory tariffs on US goods worth 93 billion euros ($107 billion) after Brussels struck a deal with Washington last month.Among individual companies, Palantir Technologies jumped 7.9 percent after reporting its first quarter with more than $1 billion in revenues. The data analysis and artificial intelligence company also raised its full-year revenues forecast.Pfizer was another big winner after earnings as the drugmaker reported a big increase in profits to $2.9 billion behind higher sales of Covid-19 products and lower expenses. Shares jumped 5.2 percent.Diageo, the maker of Guinness stout and Smirnoff Vodka, rose 4.9 percent after raising its cost-savings targets following a sharp drop profits to the hit from US tariffs.- Key figures at around 2100 GMT -New York – Dow: DOWN 0.1 percent at 44,111.74 (close)New York – S&P 500: DOWN 0.5 percent at 6,299.19 (close)New York – Nasdaq Composite: DOWN 0.7 percent at 20,916.55 (close)London – FTSE 100: UP 0.2 percent at 9,142.73 (close)Paris – CAC 40: DOWN 0.1 percent at 7,621.04 (close)Frankfurt – DAX: UP 0.4 percent at 23,846.07 (close)Tokyo – Nikkei 225: UP 0.6 percent at 40,549.54 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 24,902.53 (close)Shanghai – Composite: UP 1.0 percent at 3,617.60 (close)Euro/dollar: UP at $1.1582 from $1.1571 on MondayPound/dollar: UP at $1.3294 from $1.3285Dollar/yen: UP at 147.55 yen from 147.09 yenEuro/pound: DOWN at 87.01 pence from 87.10 penceWest Texas Intermediate: DOWN 1.7 percent at $65.16 per barrelBrent North Sea Crude: DOWN 1.7 percent at $67.64 per barrelburs-jmb/st

The US trade gap narrowed in June, government data showed Tuesday, as imports pulled back more than exports while businesses grappled with President Donald Trump’s tariffs on allies and competitors alike.The overall trade deficit in the world’s biggest economy narrowed by 16 percent to $60.2 billion, down from a revised $71.7 billion figure in May, the Department of Commerce said.The narrowing was more than analysts expected but largely reflected a drop in goods imports — including consumer goods as Trump’s wide-ranging tariffs added to businesses’ costs of bringing in foreign products.In April, Trump imposed a 10-percent duty on most US trading partners and he has also slapped much steeper tariffs on steel, aluminum and autos.This baseline tariff is set to rise to varying levels for dozens of economies including Japan and the European Union come Thursday.Given that plans have been set out for higher rates to take effect, policy uncertainty has eased somewhat, said Nationwide financial markets economist Oren Klachkin.”But businesses hoping tariffs were just threats must now adjust to the reality they are here to stay,” he added in a note.”We think the negative impact of high tariff rates will outweigh any positives from lower policy uncertainty,” Klachkin said.The June deficit narrowed on the back of a fall in imports, by 3.7 percent to $337.5 billion, while exports also dropped by 0.5 percent to $277.3 billion.The drop in imports came as those of consumer goods decreased $8.4 billion, while those of industrial supplies and materials fell by $2.7 billion. Imports of autos and parts also dropped by $1.3 billion.The retreat in exports, meanwhile, came as goods exports declined by $1.3 billion, with decreases seen in industrial supplies as well.The goods deficit with China dropped by $4.6 billion, to $9.4 billion in June.Washington and Beijing slapped escalating tariffs on each other’s products in April, reaching prohibitive triple-digit levels and snarling supply lines between the world’s two biggest economies.But in May, the countries reached a temporary agreement to bring these duties to a lower level until August 12.

A stock market rebound  lost traction on Tuesday after data showed inflation gathering steam in the US, complicating the picture for interest rate cuts.Meanwhile oil prices retreated further after US President Donald Trump renewed his threat to raise tariffs on India over its purchases of Russian crude.Wall Street’s main stock indices had opened higher Tuesday before turning lower. European markets ended mixed, with Paris dipping into the red.Global stocks had jumped on Monday, recovering ground lost after data released on Friday showed weakness in the US jobs market, raising concerns that the world’s biggest economy is in worse shape than previously thought.The rebound was fuelled by healthy company earnings and by bets that a slowing US economy would prompt the Federal Reserve to cut interest rates in September.Lower interest rates are positive for stocks as companies can borrow at better rates, as can consumers.Despite pressure from Trump, the Fed has said it will rely on the latest data on the inflation outlook to make its decision.Data released Tuesday showed that modest growth in the US services sector pretty much evaporated in July, with companies reporting increases in prices due to tariffs that Trump has imposed on US trading partners.”The 50.1 headline reading was more than one whole point below 51.5 expected and suggests growth in the dominant services sector is stalling,” said City Index and FOREX.com analyst Fawad Razaqzada.A reading above 50 percent indicates growth.He pointed to “alarming” details in the report, such as an unexpected rise in prices paid by companies.This “points to inflationary pressures building into the dominant services sector of the economy, making it difficult for the Fed to justify cutting rates,” said Razaqzada.CME Group’s FedWatch tool still showed investors have largely priced in two interest rate cuts — in September and October — and see another one as possible in the third and final Fed meeting this year in December.Some analysts were sceptical of the chances of  rate cut, however.”I continue to believe the Fed will not reduce rates at all this year given rising inflation caused by tariffs and a relatively stable unemployment rate,” said Lazard chief market strategist Ronald Temple.Trump’s fresh tariffs on dozens of US trade partners are set to kick in on August 7, almost one week later than planned.Swiss leaders flew to Washington on Tuesday in a last-ditch effort to avoid a hefty 39-percent tariff.Meanwhile, the European Union on Tuesday announced the suspension of its retaliatory tariffs on US goods worth 93 billion euros ($107 billion) after Brussels struck a deal with Washington last month.Trump on Tuesday renewed his threat to impose tariffs on imported pharmaceuticals of up to 250 percent, although he said the tariff would initially start small to allow companies time to move production to the United States.Investors shrugged off the threat, with share prices of European pharmaceuticals, which have announced major investments to build manufacturing sites in the US, mostly higher.Trump also indicated that an announcement of tariffs on semiconductors — key to all electronics from smartphones to AI datacentres — could come as soon as next week.Shares in AI chipmaker NVIDIA were down 1.9 percent in midday trading.- Key figures at around 1530 GMT -New York – Dow: DOWN 0.3 percent at 44,034.25 pointsNew York – S&P 500: DOWN 0.5 percent at 6,298.16 New York – Nasdaq Composite: DOWN 0.5 percent at 20,941.95London – FTSE 100: UP 0.2 percent at 9,142.73 (close)Paris – CAC 40: DOWN 0.1 percent at 7,621.04 (close)Frankfurt – DAX: UP 0.4 percent at 23,846.07 (close)Tokyo – Nikkei 225: UP 0.6 percent at 40,549.54 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 24,902.53 (close)Shanghai – Composite: UP 1.0 percent at 3,617.60 (close)Euro/dollar: UP at $1.1581 from $1.1573 on MondayPound/dollar: UP at $1.3300 from $1.3285Dollar/yen: UP at 147.41 yen from 147.08 yenEuro/pound: DOWN at 87.05 pence from 87.11 penceWest Texas Intermediate: DOWN 1.4 percent at $65.34 per barrelBrent North Sea Crude: DOWN 1.4 percent at $67.83 per barrelburs-rl/gv

Switzerland’s president and economy minister flew to Washington on Tuesday in a last-minute push to stop steep new tariffs that have blindsided the Alpine country.Switzerland faces a 39-percent duty, one of the highest among the dozens of economies that will be hit by new tariffs expected to come into force from Thursday.President Karin Keller-Sutter and Economy Minister Guy Parmelin were heading to Washington “to facilitate meetings with the US authorities at short notice and hold talks with a view to improving the tariff situation for Switzerland”, the government said in a statement.”The aim is to present a more attractive offer to the United States in a bid to lower the level of reciprocal tariffs for Swiss exports, taking US concerns into account.”US President Donald Trump had originally threatened in April to slap a 31-percent tariff on Switzerland.But he surprised the export-driven country last week when he decided to hike the rate to 39 percent despite numerous discussions between Swiss and US officials aimed at reaching a deal.The Swiss government noted that the country will be hit by much higher tariffs than what other wealthy economies, such as Britain, Japan or the European Union, are facing.During an extraordinary meeting on Monday, the government “reaffirmed that it was keen to pursue talks with the United States on the tariff situation”, Tuesday’s statement said.”For this reason,” the president and the economy minister “are to travel to Washington on Tuesday”.US Trade Representative Jamieson Greer, however, told CBS television on Sunday that the tariffs on global trading partners, which are coming into force this week, “are pretty much set”.And as Keller-Sutter headed to Washington, Trump signalled that a separate “small” tariff on imports of pharmaceuticals from around the world — a key sector for Switzerland — could come “within the next week”.But the sector-specific tariff could rise to 150 percent in a year and eventually be as high as 250 percent, he added.Pharmaceuticals represented 60 percent of Swiss goods exports to the United States last year.- Swiss surplus -Keller-Sutter and Parmelin took off on Tuesday morning, a Swiss government official said.They were accompanied by a small delegation, including the heads of the economy and international finance departments, but the official declined to give details about the potential meetings.The government said it will “issue a statement as soon as there are any relevant developments for the public”.The United States is a key trading partner for Switzerland, taking 18.6 percent of its total exports last year, according to Swiss customs data.Keller-Sutter has said Trump believes that Switzerland “steals” from the United States by enjoying a trade surplus of 40 billion Swiss francs ($50 billion).Swiss companies have urged the government to negotiate a lower tariff.”I am convinced that Donald Trump wants to make a deal and show it to his US voters,” Nik Hayek, the head of watch firm Swatch, told Le Temps newspaper in an interview published late Monday.But, Hayek added, “President Karin Keller-Sutter has to react and find a solution in person there.”

Global stock markets rose Tuesday as investors grew increasingly confident that the US Federal Reserve will cut interest rates next month.The gains, helped also by some strong earnings and generally easing concerns about tariffs, followed strong advances on Monday.The dollar jumped against the euro and yen.Oil prices retreated after US President Donald Trump renewed his threat to raise tariffs on India over its purchases of Russian crude.Wall Street was steady at the opening bell, with the Dow flat and the S&P 500 and Nasdaq Composite edging up. However they quickly pushed higher.”While sentiment towards equity markets continues to remain positive for the time being, that’s not to say things will remain rosy in the coming weeks,” said City Index and FOREX.com analyst Fawad Razaqzada, pointing to high stock valuations amid a weakening economy.Briefing.com analyst Patrick O’Hare said “expectations of lower interest rates in the months ahead” were providing support for equities.Data released on Friday showing weakness in the US jobs market caused stock markets to slump as they raised concerns that the world’s biggest economy is in worse shape than expected.Stocks rebounded on Monday, however, as those worries fanned bets that the Fed will cut interest rates in September.According to CME Group’s FedWatch tool, investors have priced in two interest rate cuts — in September and October — and see another one as possible in the third and final meeting in December.Some analysts remained sceptical, however.”I continue to believe the Fed will not reduce rates at all this year given rising inflation caused by tariffs and a relatively stable unemployment rate,” said Lazard chief market strategist Ronald Temple.European markets were solidly higher in afternoon trading.”European markets continue to wave off any concerns around the direction of travel for the US economy and Thursday’s looming tariff day,” noted Joshua Mahony, chief market analyst at Rostro trading group.Trump’s fresh tariffs on dozens of US trade partners are set to kick in on August 7, almost one week later than planned.The European Union on Tuesday announced the suspension of its retaliatory tariffs on US goods worth 93 billion euros ($107 billion) after Brussels struck a deal with Washington last month.”The commission has today adopted the necessary legal procedures to suspend the implementation of our EU countermeasures, which were due to kick in on August 7,” EU trade spokesman Olof Gill said.Trump on Tuesday renewed his threat to impose tariffs on imported pharmaceuticals of up to 250 percent, although he said the tariff amounts would start small.Investors shrugged off the threat, with share prices of European pharmaceutical firms, which have announced major investments to build manufacturing sites in the United States as Trump has demanded, mostly higher.Ahead of the new deadline, Mahony said traders were focused “on the continued strength seen in second-quarter earnings season and the new dovish outlook for the Federal Reserve”.On the corporate front, shares in BP climbed 2.5 percent in London midday deals after the British energy giant surprised with better-than-expected earnings in the second quarter.- Key figures at around 1330 GMT -New York – Dow: FLAT at 44,168.17 pointsNew York – S&P 500: UP less than 0.1 percent at 6,334.05 New York – Nasdaq Composite: UP 0.1 percent at 21,075.81London – FTSE 100: UP 0.4 percent at 9,168.87 Paris – CAC 40: UP 0.3 percent at 7,651.60 Frankfurt – DAX: UP 0.8 percent at 23,941.01Tokyo – Nikkei 225: UP 0.6 percent at 40,549.54 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 24,902.53 (close)Shanghai – Composite: UP 1.0 percent at 3,617.60 (close)Euro/dollar: DOWN at $1.1551 from $1.1573 on MondayPound/dollar: UP at $1.3293 from $1.3285Dollar/yen: UP at 147.53 yen from 147.08 yenEuro/pound: DOWN at 86.90 pence from 87.11 penceWest Texas Intermediate: DOWN 1.5 percent at $65.29 per barrelBrent North Sea Crude: DOWN 1.3 percent at $67.84 per barrelburs-rl/rlp