Financial markets rally after Trump announces tariff deal with Japan | Stock markets

Financial markets around the world rallied after Donald Trump announced a trade agreement with Japan to minimize the level of prices imposed on Japanese goods imported into the United States.

The share price increased sharply in Tokyo, where the Nikkei index of the main Japanese companies increased by 3.5%. The European markets followed, the FTSE 100 winning 0.5% to reach a record.

The American markets were to display other gains when opening later Wednesday.

The actions of Japanese car manufacturers have rallied. The actions of Toyota, the largest car manufacturer in the world, increased by more than 14% and there were gains for Honda, Mazda and Subaru. London -based companies with the strongest exhibitions at American prices – notably GSK, Astrazeneca and Diageo – were among the largest elevators in the FTSE 100.

Russ MLUD, director of investments at the AJ Bell stock market broker, said: “The news of a trade agreement between the United States and Japan promotes optimism among investors that other transactions could be concluded before punishing the prices in force.”

Under the agreement announced by the American president on Tuesday, Japanese imports in the United States will lead to a rate of 15%, compared to the 25% level that Trump had threatened to impose from August 1. The levy, paid by American importers, remains higher at the global rate of 10% “basic” that Washington was imposed by Washington while the two countries negotiated.

The Japanese automotive industry, which represents 8% of jobs in the country, had been in shock by the threat of a 25% price on shipping on the American market. Vehicles and car parts represent more than a quarter of all Japanese exports to the United States.

Trump said that the agreement would open the Japanese market to American products, including cars, trucks, rice and certain agricultural products, many of which had proven to be a point of collision in negotiations.

The agreement with Japan has followed an agreement with the United Kingdom in May, as the first major country to conclude an agreement with the White House, which included an increase in American prices on most 10%British products.

The financial markets were thrown into a fall of April 2 by the pricing announcement of the “Liberation Day” of Trump, when he revealed general levies of 10% and higher individual rates of up to 50% on dozens of markets, including those of economic allies and rivals.

Trump interrupted higher rate rates for 90 days to allow negotiations with business partners after a spectacular sale on the US bond market. The markets have organized a recovery because investors bet that Washington would finally decrease the most difficult measures.

Investors hung on to the president’s reluctance to see through extreme threats by betting that “Trump always chickens”, or Taco for short, in a maxim of Wall Street influencing commercial decisions.

Economists have declared that the agreement with Japan, which is the fourth world economy and is the fourth American import market, could be a prelude to additional progress in negotiations with other major business partners, including the EU.

The actions of EU automakers gathered on Wednesday, with Volkswagen by more than 5% while traders bet that the US-Japanese agreement could be a plan for an agreement between Washington and Brussels. Trump established a deadline of August 1 to conclude an agreement with the EU and other business partners.

Washington also concluded an agreement with the Philippines on Tuesday, while the US Treasury Secretary Scott Bessent said that talks will resume with China next week, before the deadline of August 12, Trump established a tariff agreement with the second world economy.

However, investors have warned that American import rate rates were higher under the agreements they were before Trump entered the White House – fueling inflationary pressures for American households and rattling of world supply chains.

“Why are the markets jubilant this morning? Because even a higher price is preferable to continuous uncertainty,” said George Lagarias, chief economist of the forvis Mazars financial services company.

“But it is hardly a catalyst for long -term optimism. If the agreement with Japan is the standard by which negotiation with the EU Ira, then investors and companies should start to assess in a deterioration of the macroeconomic backdrop.”

Japanese Prime Minister Shigeru Ishiba said that the agreement was “precisely the result of my constant plea and my strong lobbying in the United States since I proposed” the tariffs “to President Trump during our White House summit in February”.

Ishiba denied information according to which he planned to announce his resignation after his coalition lost his majority of the upper room this week.