U.S. stock futures and the dollar slipped after President Donald Trump escalated trade tensions by announcing a 50% tariff on and sending new letters to raise tariffs on other countries.
Asian Market Wrap
dropped 0.3%, and the slipped 0.1% on Thursday. Treasuries and Asian stocks stayed steady, while held near its record high from Wednesday around the $112k mark.
Brazilian markets tumbled after Trump announced new tariffs, including a 50% tax on goods from Brazil. Copper prices rose after Trump confirmed a 50% tariff on copper imports starting August 1, impacting producers. Copper futures on the London Metal Exchange climbed 0.4% to $9,664.50 a ton, while U.S. Comex contracts jumped nearly 3%.
Global copper producers are rushing to ship supplies faster, redirecting deliveries to Hawaii and Puerto Rico to save time.
Highest Tariff Level Since 1934
After Trump announced higher tariffs on imports from 14 countries, Yale Budget Lab estimated the U.S. tariff rate has risen to 17.6%, the highest in 90 years, up from 15.8%.
The Trump administration claims these tariffs are a major source of revenue. Treasury Secretary Scott Bessent said the U.S. has collected $100 billion so far and could reach $300 billion by year-end, compared to the usual $80 billion annually.
Source: LSEG
European Open as Earnings Season Approaches
European stocks rose on Thursday, led by mining shares, as hopes grew for a U.S.-EU trade deal. The gained 0.5% to 552.45 points, while most regional markets were up, except Spain’s IBEX, which dipped 0.1%.
EU trade chief Maros Sefcovic said progress has been made on a deal with the U.S., which could be finalized in days. Talks include measures to protect the EU auto industry, according to officials.
European mining stocks jumped 2.8%, and healthcare stocks rose 1.1%.
Meanwhile, Barry Callebaut shares dropped 7.2% after the Swiss chocolate maker lowered its sales forecast for the third time this year.
European investors are preparing for the key second-quarter earnings season, which will reveal how companies are handling trade volatility and how stable their stock prices are.
Analysts have been lowering 2025 earnings forecasts for 55 weeks straight, though the rate of cuts has slowed since May. Europe’s full-year earnings growth is now predicted at 3%, down from 8% earlier this year.
On the FX front, the U.S. dollar steadied on Thursday after pulling back from a two-week high. The , which tracks it against six major currencies, stayed flat at 97.416 after slipping 0.2% on Wednesday. It had hit a high of 97.837 earlier that day before losing steam.
The US dollar fell after U.S. Treasury yields dropped sharply on Wednesday, following strong demand at a auction. This eased concerns about the earlier “Sell America” trend, where Treasuries, the dollar, and stocks were sold off.
The rose 0.1% to 1.1733, and the edged up 0.1% to 1.3609. The dollar remained stable at 146.32 yen and 0.79420 .
Currency Power Balance
Source: OANDA Labs
Looking at commodities, continue to hold the high ground. WTI, however, has failed to break above the 200-day MA and could be set for a short-term correction and may be worth monitoring.
has recovered its shine and has risen to trade comfortably above the $3300/oz handle. Technicals do hint at further upside as Gold has bounced from the Fibonacci golden pocket area overnight.
Economic Data Releases and Final Thoughts
Looking at the economic calendar, another quiet day today with US initial jobless claims is the only release which may have some impact on markets. We do also have a host of central bank policymakers speaking today from both the Fed and Bank of England.
Beyond that further developments on the trade deal front will likely drive market moves and sentiment for the rest of the day.
MarketPulse Economic Calendar
Chart of the Day – DAX Index
From a technical standpoint, the has recorded a bullish close yesterday breaking out of a six-week range.
The close above the 24330 may be a precursor for further gains, however a lot of this will depend on how the trade deal talks play out.
There remains a probability of a retest of the 24330 handle before the next leg to the upside especially if the trade deal talks drag on.
Source: TradingView.com
Support
Resistance
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