📅 Monday, July 14
► European stocks edge lower as markets digest Trump’s tariff salvo
European equities opened the week in the red as President Trump’s announcement of 30% tariffs on the EU and Mexico triggered renewed trade fears. The Stoxx 600 dropped -0.30%, led by automakers and trade-sensitive names. DAX fell -0.70%, CAC 40 -0.4%, and FTSE MIB -0.15%. Despite the threat, market reaction remained modest, reflecting hopes that negotiations continue and may soften the final outcome. Trump's announcement of tariffs, which is more of a deadline extension as tariffs are set to begin on August 1, is exactly what SmartTrader Chief Analyst Robert Lindner forecasted with most market participants seeing it similarly at the start of the week. EU Commission President Ursula von der Leyen urged restraint, stating Brussels will delay countermeasures for now. EUR/USD held stable near 1.169, while European bond yields were little changed. Markets general positive expectations on tariffs, however, post a risk of further profit taking.
► US futures slide ahead of inflation data; Powell criticism resurfaces
S&P 500 futures fell -0.35% after Trump’s weekend threats and as investors brace for CPI data expected Tuesday. The Dow and Nasdaq 100 futures also slipped similarly. The White House’s attacks on Fed Chair Powell intensified, with speculation swirling about his possible dismissal. While markets remain skeptical of actual follow-through, Deutsche Bank flagged this as a serious underpriced risk that could shake dollar and bond markets. Meanwhile, Q2 earnings season ramps up this week, starting with JPMorgan, Citi, and Wells Fargo. The broader S&P had just ended its first losing week in three, and bond yields were flat as traders await inflation clarity.
► Asia ends mixed; Korea rallies, Japan slips, China calm amid shifting global sentiment
Asia-Pacific markets saw divergent moves as traders weighed US trade headlines and regional drivers. South Korea’s Kospi outperformed (+0.83%) on strong tech flows, while the Nikkei dipped -0.28% on fiscal concern ahead of local elections. Hong Kong rose +0.26%, while Shanghai (+0.27%) and Shenzhen (-0.11%) were muted. India’s Nifty dropped -0.24% and ASX 200 slid -0.11%. The Chinese yuan was flat near 7.167/USD as Beijing avoided sharp rhetoric in response to Trump’s weekend announcement. Regional currencies showed limited movement, with USD/JPY at 147.20 and AUD/USD slightly lower at 0.657. Market sentiment in Asia remained cautiously constructive despite the trade backdrop.
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