3 July 2025
US stocks rose on Wednesday, after US President Trump announced a trade deal with Vietnam. Investors await today’s nonfarm payrolls data after soft ADP employment readings. The S&P 500 added 0.5%, with the tech-heavy Nasdaq up 0.9%.
US Treasuries fell amid a jump in UK gilt yields and higher oil prices. 10-year yields climbed 4bp to 4.28%.
European stock markets were mostly higher on Wednesday as investors await developments on trade negotiations. The Euro Stoxx 50 rose 0.7%. The French CAC closed 1.0% higher, and the German DAX gained 0.5%. The UK FTSE-100 was down 0.1%.
European government bonds fell, led by losses in gilts amid rising UK fiscal concerns. 10-year gilt yields jumped 16bp to 4.61%. Meanwhile, 10-year German bund yields rose 9bp to 2.66%, as 10-year French bond yields rose 7bp to 3.32%.
Asia stock markets lacked clear direction on Wednesday amid tariff/trade policy concerns. Japan’s Nikkei 225 fell 0.6% and Korea’s Kospi declined by 0.5%. India’s Sensex was down 0.3%. Elsewhere, China’s Shanghai Composite was little changed (-0.1%), whilst Hong Kong’s Hang Seng gained 0.6%. ASEAN markets traded mixed.
Crude oil prices advanced on Wednesday amid investor optimism over further trade agreements, despite a rise in US weekly crude and gasoline inventories. WTI for August delivery settled 3.1% higher at USD67.5 a barrel.
No major releases.
US nonfarm payrolls are expected to increase by 106k in June compared to 139k in May, while the ISM non-manufacturing index likely rose to 50.6 in June, from 49.9 in May.
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