8 July 2025
US stocks fell on Monday amid renewed tariff concerns. The S&P 500 fell 0.8%.
US Treasuries fell ahead of this week’s Treasury debt auctions amid tariff uncertainty. 10-year yields rose 3bp to 4.38%.
European stock markets were mostly higher as investors focused on ongoing US trade negotiations. The Euro Stoxx 50 rose 1.0%. The French CAC closed 0.4% higher, and the German DAX gained 1.2%. The UK FTSE-100 was down 0.2%.
European government bonds fell (yields rose). 10-year German bund yields moved up 3bp to 2.64%, as 10-year French bond yields were 4bp higher at 3.32%. In the UK, 10-year gilt yields rose 3bp to 4.58%.
Asia stock markets traded mixed but mostly lower on Monday amid ongoing concerns over potential US tariff developments. Japan’s Nikkei 225 fell 0.6%, while Korea’s Kospi added 0.2%. Hong Kong’s Hang Seng dipped 0.1%, and China’s Shanghai Composite closed nearly flat. India’s Sensex ended largely unchanged.
Crude oil prices rose on Monday despite a large output increase by OPEC+ for August. WTI crude for August delivery settled 1.4% higher at USD67.9 a barrel.
No major releases.
The US NFIB Index of Small Business Optimism is expected to edge down following May’s recovery given ongoing uncertainty.
The Reserve Bank of Australia may cut the policy rate by 25bp to 3.60% given recent weak macro data.
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