Market Summary - July 14, 2025
The financial markets experienced a downturn at the end of last week, with Wall Street indices closing in the red. The S&P 500 fell by 0.3%, the Nasdaq by 0.2%, the DJIA by 0.6%, and the Russell 2000 by 1.3%. This decline was further exacerbated by news regarding new tariffs, leading to a drop in futures for both U.S. and European indices.
Tariff Announcements
On Saturday, former President Donald Trump announced a 30% tariff on goods from the European Union and Mexico. In response, the President of the European Commission indicated a willingness to retaliate but expressed a preference for negotiating a better deal. The EU has postponed previously announced retaliatory measures from July 14 to August 1, while Trump mentioned that discussions with the EU are ongoing.
Asian Market Performance
In the Asia-Pacific region, there was a cautious optimism despite a slight decline in the broad MSCI Asia Pacific Index, which fell by 0.1%. Major exchanges, however, showed gains: China's HSCEI rose by 0.5%, South Korea’s Kospi by 0.8%, the Shanghai SE Composite by 0.4%, and Japan’s Nikkei 225 by 0.05%. Conversely, India’s Nifty 50 saw a decline of 0.3%.
Sector Highlights
Companies involved in silver production and processing experienced significant gains, benefiting from rising commodity prices. Additionally, Chinese robotics firms showed optimism following reports that Initree and AgiBot secured a contract worth 124 million yuan to supply humanoid robots.
Japan's Economic Indicators
Japan's industrial production fell by 0.1% in May compared to April, extending year-over-year declines to 2.4%. The Bank of Japan is expected to raise its inflation forecast for the current fiscal year, currently set at 2.2%, largely due to rising food prices.
Forex Market Overview
The new week began with a rebound in the U.S. dollar, which strengthened against all G10 currencies. The New Zealand dollar saw the largest correction, dropping by 0.37%, while Scandinavian currencies also experienced declines. The Japanese yen and Canadian dollar showed relative resilience, with EUR/USD down by 0.2% to 1.167.
Commodity Prices
Gold prices increased slightly by 0.05% to $3,356 per ounce, while silver continued its bullish trend, rising by 1.45% to $38.96 per ounce. Platinum and palladium futures, however, saw corrections of 0.6%. In the oil market, Brent and WTI crude oil prices rose by 0.2% and 0.16%, respectively, while TTF natural gas futures fell by 0.1%.
Cryptocurrency Market
The cryptocurrency market continued to show euphoria, with Bitcoin rising by 2.6% to $122,230, Ethereum increasing by 1.6% to $3,040, and Ripple futures gaining 5.75%. Dogecoin also saw a rise of 5.5%.