📅 Wednesday, June 25
► European markets trade positively while traders wait for clarity on tariffs & Fed
European stocks showed positives moves amid caution ahead of the US (ADP) payrolls (& Thursday's NFPs) report and Trump’s tariff deadline with Japan. The Stoxx 600 edged down +0.45%, with gains in the DAX (+0.4%) and strong gains in the CAC 40 (+1.1%). FTSE 100 rose 0.2%. Yields in Europe moved higher, with the German 10Y Bund at 2.58% (+1-2bp) and UK 10Y at 4.51% (+ 6bp). EUR/USD hovered at 1.177. Banco Santander rose 3% after confirming a £2.65B acquisition of Sabadell’s UK arm. Markets remain focused on the Fed’s next move and developments around Trump’s “Big Beautiful Bill.”
► US futures hold up as traders weigh Fed bets & tariff threats; Banks rise due to dividend hike
US futures held flat to slightly higher (S&P +0.1%, Nasdaq +0.0%, Dow +0.2%), as investors awaited fresh catalysts including more labor market data and signs of tariff resolution. Banks rose in pre-market—JPMorgan, Goldman Sachs, and BofA—after clearing the Fed’s stress tests and boosting dividends. The 10Y Treasury yield ticked up to 4.28% (+ 3.5bps), while swaps showed slightly reduced expectations for rate cuts (63bps by year-end). Trump reaffirmed his hard July 9 tariff deadline with Japan. Market sentiment stayed constructive despite warnings of limited inflation clarity from Fed’s Bostic and rising job openings.
► Asia-Pacific markets mixed with investors remaining nervous about uncertain outlook for trade deals
Asian equities traded mixed. Japan’s fell 0.56%. South Korea’s Kospi closed also lower -0.47%, while Australia added +0.66%. Mainland China closed lower —Shanghai -0.09%, Shenzhen -0.61%. However, Hang Seng rebounded after losses in the previous session (+0.62%). USD/JPY rose to 143.90 (up more than 0.3%) after sharp losses in the previous session, while AUD/USD edged a bit lower to 0.657. Market attention remained on the state of US-China talks and signs of macro stimulus in Asia.
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