US Stock Futures Waver On Tariff Threats as LME Copper Falls: Markets Wrap

Global stocks were mixed as traders assessed the White House’s latest salvo on tariffs, with President Donald Trump escalating his trade rhetoric and threatening more charges on copper and pharmaceuticals.

Futures for the S&P 500 were little changed, pointing to a second day of small moves for the US benchmark. European stocks rose 0.5% while a gauge for Asian equities edged lower. LME copper slid as much as 2.4%. The metal retreated 2.9% in New York after Tuesday’s 13% surge.

Earlier this week, traders had largely brushed off a batch of letters in which Trump effectively delayed his tariff deadline while outlining new rates targeting over a dozen countries. But sentiment shifted on Tuesday, when he signaled fresh resolve to move forward with steep levies on foreign imports.

“The market has already overreacted in the past on Trump’s trade announcements, so I think investors are being prudent and cautious,” said Stéphane Deo, senior portfolio manager at Eleva Capital in Paris. “That being said, tariffs will end up being much higher in the fall than they were at the beginning of the year, so that’s likely to fuel inflation.”

US Treasuries held steady as a global selloff in especially longer-dated bonds eased, with the yield on 10-year notes dropping less than one basis point to 4.40%. 

Investors will parse minutes of the Federal Reserve’s June policy meeting later on Wednesday for indications on whether officials are closer to lowering interest rates. Trump accused Fed Chair Jerome Powell of “whining like a baby about non-existent inflation” as he intensified his standoff over the pause in rate cuts.

Swaps are almost fully pricing two quarter-point cuts until the end of the year, with a 65% chance of a first reduction in September.

• Meta Plaforms Inc. bought a minority stake in the world’s largest eyewear manufacturer, EssilorLuxottica SA, deepening the US tech giant’s commitment to the fast-growing smart glasses industry, according to people familiar with the matter.

• UniCredit SpA, the Italian lender that hopes to acquire Commerzbank AG, increased its equity stake in the German firm and became its largest shareholder after converting derivatives into stock.

• SpaceX is discussing plans to raise money and sell insider shares in a deal that would value Elon Musk’s rocket and satellite maker at around $400 billion, people familiar with the matter said.

• Starbucks Corp. has received proposals from prospective investors in its China business, most of whom are eyeing a controlling stake in the operation.

• Fujitsu Ltd. shares dropped the most since April in Tokyo after the chair of a UK public inquiry called for the firm to release a compensation plan for victims of the Post Office scandal

• Merck is nearing a $10 billion deal for respiratory drugmaker Verona, the FT reported.

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 0.5% as of 9:18 a.m. London time

• S&P 500 futures were little changed

• Nasdaq 100 futures were little changed

• Futures on the Dow Jones Industrial Average were little changed

• The MSCI Asia Pacific Index fell 0.2%

• The MSCI Emerging Markets Index fell 0.3%

Currencies

• The Bloomberg Dollar Spot Index rose 0.1%

• The euro fell 0.2% to $1.1704

• The Japanese yen fell 0.2% to 146.81 per dollar

• The offshore yuan was little changed at 7.1871 per dollar

• The British pound was little changed at $1.3588

Cryptocurrencies

• Bitcoin rose 0.2% to $108,850.51

• Ether rose 0.9% to $2,624.02

Bonds

• The yield on 10-year Treasuries was little changed at 4.40%

• Germany’s 10-year yield declined two basis points to 2.67%

• Britain’s 10-year yield was little changed at 4.63%

Commodities

• Brent crude rose 0.5% to $70.53 a barrel

• Spot gold fell 0.4% to $3,287.53 an ounce