Key Points
Fresh record highs for FTSE 100 and S&P 500 as trade deal optimism rises
US and Japan secure trade deal, sending automaker stocks surging
General Motors plunges 8% on tariff hit, Tesla to report tonight
Bond yields move higher again on weak Japan auction
Global markets are in buoyant mood as the US and Japan secured a trade deal: US futures are up after the S&P 500 notched a fresh record on Tuesday, while the FTSE 100 hit a new record this morning. European stock markets are broadly higher with automakers leading.
Tokyo rallied sharply overnight led by auto stocks after US President Donald Trump announced a “massive” trade deal with Japan. The deal sees the Japan’s exports slapped with a 15% flat tariff, while the country will “open” its market for cars and rice. The 15% tariff applies to cars, which is below the 25% universal rate imposed by the US on cars built outside the country. Shares of Toyota jumped 14%, Honda rose 10%, and Nissan was up close to 8%. Mazda rose 18% to hit its daily limit. The Nikkei 225 rallied 3.59%.
