🗓 Friday, July 25
► European equities ease on earnings misses; trade deal hopes linger
The Stoxx 600 slipped -0.45%, dragged by earnings-related weakness in Germany’s DAX (-0.70%) and broader regional softness. The CAC is trading flat, while UK's main index FTSE 100 trades at -0.4%. Puma plunged -18% after a profit warning, while Volkswagen is trading +1.7% on in-line and better-than-feared results. LVMH (+ 3.3%) shares recovered following a less-bad-than-feared earnings release supporting the CAC_40. Investors continue watching for progress in US-EU trade negotiations, with tariff deals likely to set 15% as a baseline. German 10Y yields rose +4bps to 2.74%, while EUR/USD slipped to 1.172 (-0.35%) on dollar strength. The GBP/USD slipped even 0.55%.
► Wall Street retreats from highs as Intel drags; Eyes on Fed, trade negotiations
US futures were steady after S&P 500 and Nasdaq closed at fresh records Thursday. But Friday sentiment was dented by Intel (-8.2%) after disappointing Q2 results and job cut plans. Next week marks the peak of earnings season, with 38% of the S&P 500 reporting. On the macro front, the Fed meeting looms on July 30, with the market now pricing in a more hawkish Powell after recent strong data. The USD index jumped +0.45%, and 10Y Treasury yields rose +2bps to 4.42%. Optimism in trade remains high following agreements with Japan and Indonesia, and hopes for breakthroughs between the US and the EU and between the US and China remain high.
► Asia mixed; Japan slips after strong week, India extends losses
Asian markets saw modest profit-taking following recent strength. Japan’s Nikkei dropped -0.88%, with exporters pressured by USD/JPY jumping to 147.85 (+ 0.6%). Puma’s weak guidance also weighed on regional apparel stocks. India’s Nifty fell -0.9%, extending losses amid trade deal speculation and caution ahead of US Fed signals. South Korea’s Kospi rose +0.18%, while China’s Shanghai index slipped -0.33% despite continued calm in currency markets. Market mood remains constructive on US-Asia trade alignment, with India seeking “preferential” US tariff terms.
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