The Japan Times - Stocks mixed as traders mull tariffs, inflation, earnings

A report suggesting Trump could impose import tariffs more slowly than initially feared provided support and put a cap on the dollar's latest surge.

However, traders remain concerned that his pledges to cut taxes, regulations and immigration will revive inflation.

Market watchers have slashed their expectations on how many times the Federal Reserve will cut interest rates through 2025 to one.

But some fear the Fed's next move could even be a rate hike owing to still-sticky inflation and concerns over Trump's policies.

Data on Tuesday showed US wholesale inflation for December was lower than expected, with no change in the Producer Price Index over the month when volatile food and energy prices are excluded.

Wall Street's three main indexes opened higher, but moved in a choppy fashion thereafter. The Dow and S&P 500 finished with modest gains, while the Nasdaq retreated.

Investors will be paying more attention to US and UK consumer price inflation data due on Wednesday, while American bank earnings will also be in focus.

Investors are especially keen to hear the companies' expectations for the incoming Trump administration in Washington. JPMorgan Chase and Goldman Sachs are among the companies reporting results.

"There's a lot of interest ... in how they see the future," Art Hogan of B. Riley Wealth Management said of expectations that Trump could ease bank regulation.

In Europe, Frankfurt and Paris finished the day with gains but London slipped.

In Asia, Hong Kong and Shanghai rallied as China's securities regulator said it was looking at ways to provide more stability to markets.

This followed another run of poor performances sparked by worries over the world-number-two economy and Trump's threatened tariffs.

The dollar traded mixed against major peers after Bloomberg reported that members of Trump's team were looking at an initially limited increase in tariffs to boost their negotiating hand and tamper inflationary pressures.

Oil prices pulled back following a series of gains.

Among individual companies, Boeing fell 2.1 percent as the planemaker disclosed it had delivered just 348 commercial planes in 2024 following a labor strike and safety setbacks.

Eli Lilly dropped 6.6 percent after it said 2024 revenues would be lower than previously thought.

- Key figures around 2130 GMT -

New York - Dow: UP 0.5 percent at 42,518.28 (close)

New York - S&P: UP 0.1 percent at 5,842.91 (close)

New York - Nasdaq Composite: DOWN 0.2 percent at 19,044.39 (close)

London - FTSE 100: DOWN 0.3 percent at 8,201.54 (close)

Paris - CAC 40: UP 0.2 percent at 7,423.67 (close)

Frankfurt - DAX: UP 0.7 percent at 20,271.33 (close)

Tokyo - Nikkei 225: DOWN 1.8 percent at 38,474.30 (close)

Hong Kong - Hang Seng Index: UP 1.8 percent at 19,219.78 (close)

Shanghai - Composite: UP 2.5 percent at 3,240.94 (close)

Euro/dollar: UP at $1.0310 from $1.0245 on Monday

Pound/dollar: UP at $1.2211 from $1.2202

Dollar/yen: UP at 157.98 yen from 157.48 yen

Euro/pound: UP at 84.40 pence from 83.96 pence

West Texas Intermediate: DOWN 1.7 percent at $77.50 per barrel

Brent North Sea Crude: DOWN 1.4 percent at $79.92 per barrel

burs-jmb/des

K.Inoue--JT