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World Shares Mixed on Earnings, Tariffs04/30 05:03
World shares were mixed on Wednesday as strong corporate profits were offset
by uncertainty over President Donald Trump's trade war.
(AP) -- World shares were mixed on Wednesday as strong corporate profits
were offset by uncertainty over President Donald Trump's trade war.
The Eurozone logged 0.4% growth in the first quarter of the year, stronger
than in the last quarter of 2024. But the outlook has been dimmed by higher
tariffs on exports from the 20-nation region using the euro.
Germany's DAX gained 0.4% to 22,531.16 after the country's center-left
Social Democrats voted to approve a coalition agreement. The vote's results
announced Wednesday pave the way to elect Friedrich Merz as the new German
chancellor.
In Paris, the CAC 40 also rose 0.4%, to 7,586.37, while Britain's FTSE 100
was little changed at 8,465.95.
The future for the S&P 500 edged 0.1% lower while that for the Dow Jones
Industrial Average was up 0.1%.
In Asian trading, Tokyo's Nikkei 225 index climbed 0.6% to 36,045.38.
Japanese automakers' shares were mixed even after Trump signed an order
relaxing some U.S. tariffs on imports of autos and auto parts.
Shares in Toyota Motor Corp. lost 1.6% while Honda Motor Co. gained 0.4%.
Nissan Motor Co. lost 0.2%.
In Hong Kong, the Hang Seng rose 0.5% to 22,119.41, while the Shanghai
Composite index slipped 0.2% to 3,279.03 as surveys showed export orders to
Chinese manufacturers declined in April as higher U.S. tariffs on goods from
China began to take effect.
South Korea's Kospi dropped 0.3% to 2,556.61, while the S&P/ASX 200 in
Australia surged 0.7% to 8,126.20.
On Tuesday, the S&P 500 climbed 0.6% and the Dow industrials added 0.7%. The
Nasdaq composite rose 0.5%.
CEOs say they're unsure how long their companies can keep piling up profits
due to the lack of clarity about Donald Trump's trade war.
Honeywell International helped lead the market with a gain of 5.4% after
reporting stronger profit and revenue for the latest quarter than analysts
expected. It also raised its forecast for profit over the full year.
Sherwin-Williams rose 4.8% for another one of the market's bigger gains
after the paint and coatings company likewise reported a better-than-expected
profit.
UPS stock swung between losses and gains at the day's start of trading after
it reported a stronger profit than analysts expected for the first three months
of 2025. Because it's the world's largest package delivery company, UPS can
offer a window into how the global economy is doing.
But UPS also said it wasn't updating its financial forecasts previously
given for 2025 because of "the current macro-economic uncertainty." It also
said it expects to cut about 20,000 jobs and close 73 buildings this year. Its
stock finished 0.4% lower.
Investors fear Trump's tariffs could bring a recession if left unaltered
because they could freeze global trade and send prices higher for all kinds of
products.
U.S. households are getting much more pessimistic because of tariffs, and a
report from the Conference Board on Tuesday said their expectations for income,
business and job market conditions dropped to the lowest level since 2011 and
are well below the level that usually signals a recession ahead.
General Motors slipped 0.6% despite reporting a stronger profit for the
latest quarter than analysts expected. The company rescheduled a conference
call with investors to discuss its results and forecasts for 2025 to Thursday
because of "recent reports regarding updates to trade policy."
Coca-Cola also overcame an early drop to rise 0.8%. The beverage giant
reported better-than-expected earnings in the first quarter and said the impact
of tariffs on its business are likely to be "manageable."
Treasury yields fell. The yield on the 10-year Treasury dropped to 4.17%
from 4.23% late Monday.
In other dealings early Wednesday, U.S. benchmark crude oil lost 68 cents to
$59.74 per barrel. Brent crude, the international standard, shed 64 cents to
$62.64 per barrel.
The U.S. dollar rose to 142.98 Japanese yen from 142.35 yen. The euro fell
to $1.1371 from $1.1386.
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