Global equity markets lost momentum on Tuesday after gains from U.S. trade accords with the EU and Japan proved short-lived. Investors have shifted focus to upcoming economic releases, corporate earnings reports and next week’s Federal Reserve policy decision.
Trade Optimism Tempered
Last week’s provisional deals—tariffs set at 15% on EU and Japanese imports, with none on U.S. exports—avoided an all‑out trade war but fell short of lowering overall barriers. “While these agreements avert a tariff cliff, the average U.S. rate remains elevated at 18.2%,” warned Stephen Innes of SPI Asset Management. “The risk to global growth is unresolved.”
Ray Attrill of NAB echoed that sentiment: “Markets realize this so‑called ‘good news’ still constrains eurozone growth through 2025.” U.S. officials now turn to negotiations with India and South Korea, even as Washington and Beijing wrapped up two days of secretive talks in Stockholm without announcing an extension of their 90‑day tariff truce.
Regional Markets Mixed
- Asia: Tokyo (–0.8%), Hong Kong (–0.6%), Singapore, Manila and Taipei dipped; Shanghai (+0.3%), Sydney, Seoul, Wellington, Bangkok and Jakarta advanced.
- Europe: London, Paris and Frankfurt opened modestly higher.
- Currencies: Euro slid to $1.1555; pound at $1.3329; dollar/yen eased to ¥148.39.
Oil Edges Higher
Crude futures extended Monday’s rally after President Trump threatened new sanctions on buyers of Russian oil if Moscow fails to cease hostilities in Ukraine by early August. WTI held near $66.72/bbl; Brent at $70.09/bbl.
Data & Earnings in the Spotlight
With trade relief waning, market attention turns to a busy slate of tech heavyweights—Apple, Microsoft, Meta and Amazon—reporting results this week. Key U.S. releases on GDP growth and job creation will precede the Fed’s two-day meeting, where policymakers are widely expected to hold rates steady. However, investors will scour Fed Chair Jerome Powell’s commentary for hints on the central bank’s trajectory amid persistent inflation and tariff uncertainty.
Key Index Levels (Close):
- New York Dow: 44,837.56 (–0.1%)
- FTSE 100: 9,091.97 (+0.1%)
- Nikkei 225: 40,674.55 (–0.8%)
- Hang Seng: 25,405.39 (–0.6%)
- Shanghai Composite: 3,609.71 (+0.3%)
