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The United States finalized a rule Tuesday effectively barring Chinese technology from cars in the American market, taking aim at software and hardware from the world’s second biggest economy over national security risks.The announcement, which also pertains to Russian technology, comes as outgoing President Joe Biden wraps up efforts to step up curbs on China, and after a months-long regulatory process.The rule follows an announcement this month that Washington is mulling new restrictions to address risks posed by drones with tech from adversaries like China and Russia.”Cars today aren’t just steel on wheels — they’re computers,” said Commerce Secretary Gina Raimondo.She noted that modern vehicles contain cameras, microphones, GPS tracking and other technologies connected to the internet.”This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads,” she added, referring to the People’s Republic of China.The final rule currently applies just to passenger vehicles under 10,001 pounds, said the US Commerce Department.It plans, however, to issue separate rulemaking aimed at tech in commercial vehicles like trucks and buses “in the near future.”For now, Chinese electric vehicle manufacturer BYD, for example, has a facility in California producing buses and other vehicles.National Economic Advisor Lael Brainard added that “China is trying to dominate the future of the auto industry.”But she said connected vehicles containing software and hardware systems linked to foreign rivals could result in misuse of sensitive data or interference.- ‘Nexus’ to China -Under the latest rule, even if a passenger car were US-made, manufacturers with “a sufficient nexus” to China or Russia will not be allowed to sell such new vehicles incorporating hardware and software for external connectivity and autonomous driving.This prohibition on sales takes effect for model year 2027.The restriction also bans the import of the hardware and software if they are linked to Beijing or Moscow.The software curbs take effect for model year 2027 while the hardware controls come into play for model year 2030.Just a day earlier, Washington announced fresh export rules on chips used for AI, furthering efforts to make it hard for China and other rivals to access the technology.The restrictions also tightened rules surrounding the sharing of cutting-edge AI models.Washington has expanded efforts in recent years to curb exports of state-of-the-art chips to China, which can be used in AI and weapons systems, as Beijing’s tech advancements spark concern among US policymakers.But the rollout of many plans will fall to incoming President-elect Donald Trump, whose return to the White House early next week promises a raft of changes to government policies.On Monday, Biden urged the Trump administration not to cede AI dominance to China.”We must not offshore artificial intelligence, as we once did with computer chips and other critical technologies,” Biden said in an address at the State Department.”We are in the lead, and we must stay in the lead,” he added, saying it should be Washington and its closest allies at the frontier of this technology.US efforts to restrict Chinese tech come as American officials work to boost its domestic industries as well.On Tuesday, Biden issued an executive order to accelerate the pace at which infrastructure for artificial intelligence development can be built in the country.”We will not let America be out-built when it comes to the technology that will define the future,” said Biden in a statement.But the US actions could attract Beijing’s retaliation, with the Chinese Commerce Ministry already calling Monday’s AI-related export curbs “a flagrant violation” of international trade rules.”China will take necessary measures to firmly safeguard its legitimate rights and interests,” the ministry said.

Stock markets mostly rose Tuesday with traders’ attention fixed on President-elect Donald Trump’s tariff plans, earnings updates and upcoming inflation data.A report suggesting Trump could slowly hike import tariffs 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 continue to dampen sentiment with warnings that the measures will revive inflation.Traders 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 all opened higher.Investors will be paying more attention to US and UK consumer price inflation data due on Wednesday.”With rate expectations now the driving force behind market moves, key inflation data midweek will continue to shape the narrative for the early parts of 2025,” noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.European stock markets were mostly higher in afternoon trading.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.- Dollar mixed -The dollar traded mixed against major peers Tuesday after Bloomberg reported that members of Trump’s team were looking at a gradual increase in tariffs to boost their negotiating hand and tamper inflationary pressures.Traders were spooked when he said soon after his re-election that he would impose huge levies on China, Canada and Mexico as soon as he took office.The pound remained stuck close to levels not seen since the end of 2023. The euro was near its weakest since late 2022, with fears it could return to parity with the dollar.The yen edged up against the greenback as the yield of Japan’s 40-year government bond hit its highest since being launched in 2007, with debate returning to whether the country’s central bank will hike interest rates at next week’s policy meeting.Eyes were also on earnings. In London, shares in retailer JD Sports slumped 7.3 percent after it warned on profits. Energy giant BP shed 2.1 percent on a weak trading update, capping gains on the benchmark FTSE 100 index.On the upside, Paris was lifted by rising share prices of French banks. “This earnings season will set the tone for financial stocks in 2025, but the stakes are high,” said Charu Chanana, chief investment strategist at Saxo Markets.”Even with solid fourth-quarter results, the macro backdrop — characterised by lingering inflation concerns, steeper yields, and recalibrated Fed expectations — may weigh on sentiment.”- Key figures around 1430 GMT -New York – Dow: UP 0.4 percent at 42,473.55 pointsNew York – S&P: UP 0.5 percent at 5,863.70New York – Nasdaq Composite: UP 0.7 percent at 19,212.80London – FTSE 100: UP less than 0.1 percent at 8,218.15Paris – CAC 40: UP 0.7 percent at 7,463.15Frankfurt – DAX: UP 0.8 percent at 20,297.87Tokyo – 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 $1.0267 from $1.0224 on MondayPound/dollar: DOWN at $1.2158 from $1.2180Dollar/yen: UP at 157.79 yen from 157.65 yenEuro/pound: UP at 84.44 pence from 83.90 penceWest Texas Intermediate: DOWN 0.7 percent at $76.78 per barrelBrent North Sea Crude: DOWN 0.7 percent at $80.42 per barrelburs-rl/lth

Russia and Vietnam signed an agreement on nuclear energy on Tuesday during a visit by Prime Minister Mikhail Mishustin aimed at deepening ties between the two long-standing allies.Vietnam wants to restart nuclear power plans to meet its rapidly expanding energy needs and is hoping that Russia can help.No details about the agreement were immediately available but Vietnam’s science and technology ministry said on Tuesday Alexey Likhachiov, general director of Russia’s nuclear giant Rosatom, was “very interested” in cooperating with Vietnam on the Ninh Thuan nuclear power project.The project — which involves two plants in central Ninh Thuan province with a combined capacity of 4,000 megawatts — was originally to be developed with assistance from Rosatom and the Japanese consortium JINED before plans were scrapped in 2016.Likhachiov was in Hanoi on Monday to meet Vietnamese Prime Minister Pham Minh Chinh, their third meeting in six months.  The nuclear deal was among seven signed in a range of fields that also included digital technology and electronics.The trip comes half a year after President Vladimir Putin travelled to Hanoi, where Vietnam’s then-president To Lam indicated a desire to boost defence cooperation with Moscow.Putin told reporters during the visit, which came as Western powers stepped up sanctions aimed at constraining Russia’s war in Ukraine, that both sides had “identical or very close” positions on key international issues.The two nations have been close allies since the days of the Cold War.Mishustin met his counterpart Chinh and Lam, now Communist Party general secretary and the country’s top leader, on Tuesday.Russia has been Vietnam’s main arms supplier for decades, accounting for more than 80 percent of imports between 1995 and 2023, but orders have dropped off in recent years as international sanctions related to the Ukraine conflict have intensified.

TikTok on Tuesday labeled as “pure fiction” a report that China is exploring a potential sale of the video-sharing platform’s US operations to billionaire Elon Musk as the firm faces an American law requiring imminent Chinese divestment.Citing anonymous people familiar with the matter, Bloomberg News had earlier reported that Chinese officials were considering selling the company’s US operations to Musk’s social media platform X.The report outlined one scenario being discussed in Beijing where X would purchase TikTok from Chinese owner ByteDance and combine it with the platform formerly known as Twitter.”We cannot be expected to comment on pure fiction,” a TikTok spokesperson told AFP.The report estimated the value of TikTok’s US operations at between $40 billion and $50 billion.Although Musk is currently ranked as the world’s wealthiest person, Bloomberg said it was not clear how Musk could execute the transaction, or if he would need to sell other assets.The US Congress passed a law last year that requires ByteDance to either sell its wildly popular platform or shut it down. It goes into effect on Sunday — a day before President-elect Donald Trump takes office.The US government alleges TikTok allows Beijing to collect data and spy on users and is a conduit to spread propaganda. China and ByteDance strongly deny the claims.TikTok has challenged the law, taking an appeal all the way to the US Supreme Court, which heard oral arguments on Friday.At the hearing, a majority of the conservative and liberal justices on the nine-member bench appeared skeptical of arguments by a lawyer for TikTok that forcing a sale was a violation of First Amendment free speech rights.Bloomberg characterized Beijing’s consideration of a possible Musk transaction as “still preliminary,” noting that Chinese officials have yet to reach a consensus on how to proceed.Musk is a close ally of Trump and is expected to play an influential role in Washington in the coming four years.He also runs electric car company Tesla, which has a major factory in China and counts the country as one of the automaker’s biggest markets.Trump has repeatedly threatened to enact new tariffs on Chinese goods, which would expand a trade war begun in his first term and which was largely upheld, and in some cases supplemented, by outgoing President Joe Biden.

Asian markets diverged Tuesday as bargain buying after recent losses played against ongoing worries about the outlook for the global economy and the impact of a second Donald Trump presidency.A report saying the incoming US leader’s economics team was considering slowly hiking tariffs on imports provided support to traders and put a cap on the dollar’s latest surge, while news of fresh curbs on AI chips to China appeared to have little immediate impact.However, traders remain concerned that his pledges to cut taxes, regulations and immigration continue to dampen sentiment with warnings that the measures will revive inflation.Traders have slashed their expectations on how many times the Federal Reserve will cut interest rates through 2025 to one, from four predicted last year, while there is even talk that the next move could be a hike owing to still-sticky inflation and Trump concerns.Data on Friday showing the world’s top economy created far more jobs than forecast in December dealt yet another blow to the chances of another reduction at the Fed’s next meeting and sent equity markets deep into the red.Wall Street staged a small recovery Monday, with the Dow and S&P ending in positive territory, but tech titans including big-hitter Nvidia dragged the Nasdaq down again.Asian markets fluctuated through the day.Hong Kong and Shanghai advanced as China’s securities regulator said it was looking at ways to provide more stability to markets after another run of poor performances sparked by worries over the world’s number two economy and Trump’s threatened tariffs.Sydney, Seoul, Wellington, Taipei and Mumbai also rose, though there were losses in Singapore, Manila, Bangkok and Jakarta, with Tokyo the biggest loser as traders returned from a long weekend to play catch-up with Monday’s sell-off.Paris and Frankfurt rose at the open, while London was flat.The dollar eased back against its peers after Bloomberg reported that members of the US president-elect’s team were looking at a gradual increase in tariffs in a bid to boost their negotiating hand and tamper inflationary pressures.Traders were spooked when he said soon after his re-election that he would impose huge levies on China, Canada and Mexico as soon as he took office.But while the dollar eased, the pound remained stuck at levels not seen since the end of 2023. The euro was near its weakest since late 2022, with fears it could return to parity with the dollar.The yen edged up against the greenback as the yield of Japan’s 40-year government bond hit its highest since being launched in 2007, with debate returning to whether the country’s central bank will hike interest rates at next week’s policy meeting.Eyes are now on the release of US inflation data this week and the beginning of the release of corporate reports.”This earnings season will set the tone for financial stocks in 2025, but the stakes are high,” said Charu Chanana, chief investment strategist at Saxo Markets.”Even with solid fourth-quarter results, the macro backdrop — characterised by lingering inflation concerns, steeper yields, and recalibrated Fed expectations — may weigh on sentiment.”With valuations already elevated after a strong 2024, further stock gains will require more than just decent earnings. Robust outlooks, ongoing loan demand, and resilient consumer credit will be critical to sustaining investor confidence.”She added that “uncertainty around Fed policy and a potential shift in fiscal priorities under Trump’s new administration will keep markets on edge”.- Key figures around 0815 GMT -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)London – FTSE 100: FLAT at 8,220.93Euro/dollar: UP at $1.0255 from $1.0224 on MondayPound/dollar: UP at $1.2209 from $1.2180Dollar/yen: DOWN at 157.53 yen from 157.65 yenEuro/pound: UP at 83.99 pence from 83.90 penceWest Texas Intermediate: DOWN 0.6 percent at $78.38 per barrelBrent North Sea Crude: DOWN 0.6 percent at $80.52 per barrelNew York – Dow: UP 0.9 percent at 42,297.12 (close)

Kyoto authorities announced Tuesday plans to hike lodging taxes, as Japan’s ancient capital seeks to assuage grumbles from locals about too many tourists.Lured by its myriad sights and a weak yen, Japan has seen foreign tourism numbers explode in recent years, with arrivals in 2024 expected to have hit a record of more than 35 million.But like other hotspots worldwide such as Venice in Italy or Maya Bay in Thailand, this is not universally welcome, particularly in tradition-steeped Kyoto.The city, which is a modest bullet train ride away from Tokyo — with a view of Mount Fuji on the way — is famed for its kimono-clad geisha performers and Buddhist temples.Residents have complained of disrespectful tourists harassing the geisha like paparazzi in their frenzy for photos, as well as causing traffic congestion and littering.For rooms costing between 20,000 and 50,000 yen ($127-317) per night, visitors will now see their tax double to 1,000 yen ($6.35) per person per night, under the new plans.For accommodation over 100,000 yen per night it will soar tenfold to 10,000 yen. The new levies will take effect next year, subject to approval from the city assembly.”We intend to hike accommodation tax to realise ‘sustainable tourism’ with a high level of satisfaction for citizens, tourists and businesses,” a statement said.- Cigarette butts -Tensions are highest in the Gion district, home to teahouses where “geiko” — the local name for geisha — and their “maiko” apprentices perform traditional dances and play instruments.Last year authorities moved to ban visitors from entering certain narrow private alleys in Gion after pressure from a council of local residents.One council member told local media about an instance of a maiko’s kimono being torn and another who had a cigarette butt put in her collar.In 2019, the Gion district council put up signs saying “no photography on private roads” warning of fines of up to 10,000 yen.”I appreciate tourists visiting the city, but there are also some downsides like the impact on the environment,” resident Daichi Hayase told AFP, welcoming the new taxes.”But it doesn’t mean the city should impose excessive taxes. Tourists are coming despite painful inflation,” the 38-year-old photographer said.”If there’s a burden on the infrastructure, I do think taxing tourists is a good idea,” said Australian tourist Larry Cooke, 21.But he said that the city had to find the “right balance”.- Fuji blocked -Tourism has been booming for over a decade in Japan, with foreign arrivals rising five-fold between 2012 and when the Covid pandemic torpedoed foreign travel in 2020.Since restrictions were lifted, and the government is hoping to welcome 60 million tourists per year by 2030, almost double last year’s expected total.Authorities have also taken steps beyond Kyoto, including introducing an entry fee and a daily cap on the number of hikers climbing Mount Fuji.Last year a barrier was briefly erected outside a convenience store with a spectacular view of the famous snow-capped volcano that had become a magnet for photo-hungry visitors.And in December Ginzan Onsen, a Japanese hot spring town with made-for-Instagram snowy scenes began stopping anyone arriving after 8:00 pm if they don’t have a hotel booked.

Donald Trump’s second presidential term promises a return to tariffs as he pressures partners and rivals to tackle everything from migration to drug trafficking, while protecting US industries — in moves that could trigger new trade wars.Even before taking office, Trump has raised the prospect of fresh levies on companies, countries and groups of states as he seeks to implement his agenda.He has vowed tariffs on Mexico, Canada and China until they crack down on fentanyl and border crossings, and he threatened “economic force” against Ottawa after suggesting Canada should become the 51st US state.Trump also warned of 100 percent tariffs on BRICS nations — a bloc including Brazil, Russia, India, China and South Africa — if they create a rival to the US dollar.New trade wars could rock the global economy, worsen tensions with Beijing and upend ties with allies.US manufacturers, farmers and small business owners await his first moves, girding for higher import costs on anything from batteries to wines, while bracing for retaliation.”I’m not necessarily against all tariffs,” said Mark Pascal, a restaurant owner based in New Jersey.He said he understands the rationale of taxing a country that unfairly suppresses prices.But “we’re concerned about any tariff that would apply broadly to wine and spirits, which is an industry that is not unfairly competing in any way,” added Francis Schott, who co-runs restaurants with Pascal.Trump introduced a range of duties in his first term, including on steel and aluminum, and on Chinese imports as he waged an all-out trade war on the world’s second biggest economy.In 2019, he imposed tariffs on European food and drinks as Washington and Brussels clashed over aviation subsidies.While these were later suspended, restaurateurs worry their return would batter small establishments.”It raised our costs, so it raised our prices,” said Pascal.- Global impact -Trump has used tariffs as a bargaining tool and will probably do so again, said Joshua Meltzer of the Brookings Institution.But China is signaling pushback and Europe is more prepared policy-wise, he told AFP.Governments appear to have “reached a similar conclusion that they are better off threatening retaliation at least at this stage, rather than capitulating,” Meltzer added.EY chief economist Gregory Daco warned that tariffs and other measures could tip the world economy into stagflation — stagnation with elevated inflation — if pursued to their fullest.Trump’s other promises include an across-the-board levy of 10 percent or more, with a steeper rate on China.- Growth risks -Domestically, Trump has touted tariffs as a means to protect US manufacturing, coupled with policies like tax cuts and deregulation that he says will spur growth.His Treasury secretary nominee Scott Bessent said in a November interview that tariffs would not be inflationary even if there were a “one-time price adjustment.”But Daco estimates higher import costs could lift consumer price inflation by 1.2 percentage points after a year.”The long-run impact is that it shrinks the US economy and it reduces the value of our incomes,” said Erica York of the Tax Foundation.While the Congressional Budget Office estimated a uniform 10 percent hike and added 50 percent on Chinese goods would slash deficits, this could also lower real GDP.- Emergency? -Analysts expect Trump could implement tariffs quickly using the International Emergency Economic Powers Act.This allows the president to regulate imports during a national emergency, although it could be hindered by lawsuits.A tried-and-tested method would be the trade law, with Trump previously using Section 301 as justification for tariffs.But this takes more time as it calls for a government probe.He could also use Section 232 of the Trade Expansion Act to hike tariffs on goods with national security implications.

The United States unveiled new export rules Monday on chips used for artificial intelligence, furthering efforts to make it tough for China and other rivals to access the advanced technology in Joe Biden’s final days as president.The announcement of the restrictions drew a fiery pushback from Beijing and prompted US chip industry criticism, while the European Union expressed its “concern” over the approach.In recent years, Washington has expanded its efforts to curb exports of state-of-the-art chips to China, which can be used in AI and weapons systems, as Beijing’s tech advancements spark concern among US policymakers.”The US leads the world in AI now — both AI development and AI chip design — and it’s critical that we keep it that way,” Commerce Secretary Gina Raimondo told reporters.The new rules update controls on chips, requiring authorizations for exports, re-exports and in-country transfers — while also including a series of exceptions for countries considered friendly to the United States.If a country is not exempted — and most are not — they will face a cap on imports of advanced chips.AI data centers meanwhile will need to comply with enhanced security parameters to be able to import chips.The restrictions also tighten rules around the sharing of cutting-edge AI models.China’s Commerce Ministry called the new policy “a flagrant violation” of international trade rules, vowing that Beijing would “firmly safeguard” its interests.The European Union meanwhile expressed concern about US measures and stressed that Europe did not represent a “security risk.”- US competitiveness -The latest move drew industry criticism and warnings that it would hurt US competitiveness.Semiconductor Industry Association chief executive John Neuffer said: “We’re deeply disappointed that a policy shift of this magnitude and impact is being rushed out the door days before a presidential transition and without any meaningful input from industry.”He added in a statement that the rule could cause “lasting damage to America’s economy and global competitiveness” by ceding key markets to rivals.Chip titan Nvidia said in a blog post that “while cloaked in the guise of an ‘anti-China’ measure, these rules would do nothing to enhance US security.”In a white paper released Monday, OpenAI said the federal government should help the AI industry grow, adding that “responsibly exporting” cutting-edge models to allies and partners will help them stand up their own AI ecosystems.- Trump decision? -The rules make it “hard for our strategic competitors to use smuggling and remote access to evade our export control,” White House National Security Advisor Jake Sullivan said.They also create “incentives for our friends and partners around the world to use trusted vendors for advanced AI,” he added.The new rules will take effect in 120 days, Raimondo said, giving President-elect Trump’s incoming administration time to potentially make changes.Freezing the rule, however, could risk allowing China to stockpile US hardware, a senior US official told reporters.And the Computer & Communications Industry Association cautioned that the rule will hamper the ability of US firms to deploy advanced semiconductors in data centers abroad.In its post, Nvidia stressed that the first Trump term showed how the United States “wins through innovation, competition and by sharing our technologies with the world — not by retreating behind a wall of government overreach.”Trump put heavy tariffs on China during his first presidential term.But his backers in Silicon Valley could also see the rules as an undue burden on their ability to export products.On Monday, Nvidia shares lost around two percent.The Information Technology and Innovation Foundation (ITIF) said that pressuring countries to choose between Washington and Beijing could alienate partners and boost China’s position in global AI.”Many countries may opt for the side offering them uninterrupted access to the AI technologies vital for their economic growth and digital futures,” said ITIF vice president Daniel Castro.

Global markets mostly retreated on Monday after traders trimmed bets on US Federal Reserve rate cuts and oil extended a rally sparked by new sanctions on Russia’s energy sector.Equities had tumbled Friday following strong US jobs data that traders viewed as lessening the odds of Federal Reserve interest rate cuts in 2025.Wall Street began the day looking poised to continue that trend. But two of the three major indices finished in positive territory.LBBW’s Karl Haeling said the market is less overbought compared with a few weeks ago after the sluggish beginning to 2025 equity trading.”The market is showing less sensitivity to higher bond yields,” Haeling said.The Nasdaq finished the day down 0.4 percent, in the red but above its session lows.Stocks losing ground included Nvidia, which criticized fresh curbs on AI chips to China announced by the outgoing Biden administration.Earlier in the day, bourses in London, Paris and Frankfurt all finished lower.In Asia on Monday, Hong Kong and Shanghai stocks fell but pared initial losses as data showed Chinese exports and imports topped forecasts in December.Tokyo’s stock market was closed for a holiday.Keenly awaited data on Friday showed the US economy created 256,000 jobs last month, a jump from November’s revised 212,000 and smashing forecasts of 150,000-160,000.It follows data last week that pointed to a rise in inflation expectations, and adds to concerns that President-elect Donald Trump’s plans to slash taxes, regulations and immigration will reignite prices.”The robust labor market, along with the recent pickup in inflation, are both making it difficult for the Federal Reserve to justify further rate cuts,” said David Morrison, senior market analyst at Trade Nation.”In fact, some analysts now believe the Fed’s next move may be a hike,” he added.This week’s calendar includes earnings from large banks, as well as economic releases on US inflation and retail sales.Both major crude contracts extended Friday’s gains — after the United States and Britain announced new sanctions against Russia’s energy sector, including oil giant Gazprom Neft.”The spike in oil prices could pose additional challenges for central banks, particularly the Federal Reserve, if it leads to higher inflation,” said Patrick Munnelly, partner at broker Tickmill Group.  On currency markets, the pound was wallowing around lows not seen since the end of 2023 owing to fading hopes for US rate cuts as well as worries about the British economy. The euro struggled at its weakest level since November 2022.- Key figures around 2130 GMT -New York – Dow: UP 0.9 percent at 42,297.12 (close)New York – S&P 500: DOWN 0.2 percent at 5,836.22 (close)New York – Nasdaq Composite: DOWN 0.4 percent at 19,088.10 (close)London – FTSE 100: DOWN 0.3 percent at 8,224.19 (close)Paris – CAC 40: DOWN 0.3 percent at 7,408.64 (close)Frankfurt – DAX: DOWN 0.4 percent at 20,132.85 (close)Hong Kong – Hang Seng Index: DOWN 1.0 percent at 18,874.14 (close)Shanghai – Composite: DOWN 0.3 percent at 3,160.76 (close)Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.0224 from $1.0244 on FridayPound/dollar: DOWN at $1.2180 from $1.2207Dollar/yen: DOWN at 157.65 yen from 157.73 yenEuro/pound: DOWN at 83.90 pence from 83.92 penceBrent North Sea Crude: UP 1.6 percent at $81.01 per barrelWest Texas Intermediate: UP 2.9 percent at $78.82 per barrelburs-jmb/bs

Global markets slid Monday after traders trimmed bets on US Federal Reserve rate cuts and oil extended a rally sparked by new sanctions on Russia’s energy sector.An outsized US jobs report Friday dealt another blow to hopes for more interest rate cuts in 2025, and was followed by hefty losses on Wall Street. Wall Street’s main three indices fell further at the start of trading on Monday, with the tech-heavy Nasdaq dropping 1.4 percent after the United States announced additional export restrictions on AI chip exports.Shares in tech giant Nvidia, whose chips are prized by firms developing AI applications, fell by 3.6 percent as trading got underway in New York.Shares in Dutch firm ASML, which makes the machines that create the most advanced chips, slid by 2.5 percent in Amsterdam.In Europe, London, Paris and Frankfurt were down in afternoon trading.In Asia on Monday, Hong Kong and Shanghai stocks fell but pared initial losses as data showed Chinese exports and imports topped forecasts in December.Tokyo’s stock market was closed for a holiday.Keenly awaited data on Friday showed the US economy created 256,000 jobs last month, a jump from November’s revised 212,000 and smashing forecasts of 150,000-160,000.”Given a resilient labour market, we now think the Fed cutting cycle is over,” said Bank of America’s Aditya Bhave and other economists.It follows data last week that pointed to a rise in inflation expectations, and adds to concerns that President-elect Donald Trump’s plans to slash taxes, regulations and immigration will reignite prices.”The robust labour market, along with the recent pickup in inflation, are both making it difficult for the Federal Reserve to justify further rate cuts,” said David Morrison, senior market analyst at Trade Nation.”In fact, some analysts now believe the Fed’s next move may be a hike,” he added.Those inflation concerns have seen US bond yields climb higher. Higher borrowing costs tend to weigh on equities as it implies tighter margins and a more difficult sales environment.”It is evident now that the stock market isn’t liking what it is seeing in the Treasury market,” said Briefing.com analyst Patrick O’Hare.He said the release the producer and consumer inflation figures this week “will either soothe or exacerbate the market’s inflation concerns”.O’Hare said the earnings of big banks, which begin reporting on Wednesday, will likewise influence concerns about the impact of rising rates on lenders and the economy.Surging oil prices added to unease, with both main contracts extending Friday’s gains — after the United States and Britain announced new sanctions against Russia’s energy sector, including oil giant Gazprom Neft.”The spike in oil prices could pose additional challenges for central banks, particularly the Federal Reserve, if it leads to higher inflation,” said Patrick Munnelly, partner at broker Tickmill Group.  However, analysts do not expect prices to spike too much in the longer term as global oil production is expected to meet demand. On currency markets, the pound was wallowing around lows not seen since the end of 2023 owing to fading hopes for US rate cuts as well as worries about the British economy. The euro struggled at its weakest level since November 2022.- Key figures around 1430 GMT -New York – Dow: DOWN 0.2 percent at 41,874.71 pointsNew York – S&P 500: DOWN 0.9 percent at 5,777.79New York – Dow: DOWN 1.4 percent at 18,895.64London – FTSE 100: DOWN 0.7 percent at 8,194.89 Paris – CAC 40: DOWN 0.6 percent at 7,387.64Frankfurt – DAX: DOWN 0.7 percent at 20,077.13Hong Kong – Hang Seng Index: DOWN 1.0 percent at 18,874.14 (close)Shanghai – Composite: DOWN 0.3 percent at 3,160.76 (close)Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.0212 from $1.0244 on FridayPound/dollar: DOWN at $1.2140 from $1.2210Dollar/yen: DOWN at 157.18 yen from 157.74 yenEuro/pound: UP at 84.10 pence from 83.90 penceBrent North Sea Crude: UP 1.0 percent at $80.56 per barrelWest Texas Intermediate: UP 1.3 percent at $77.59 per barrelburs-rl/lth