Market Summary - July 11, 2025
Forex Market: The USD/CAD pair is trading at 1.38038, showing a slight decrease of 0.06%. The dollar index has rebounded by 0.2% in response to new tariffs announced by the U.S. President Donald Trump.
Indices Performance
The major U.S. indices, including the S&P 500, Nasdaq, and Dow Jones, are experiencing a retreat of approximately 0.2% from previous gains. The Russell 2000 index is seeing a larger correction, down about 0.4%.
U.S. Trade Policy Developments
President Trump has announced broad tariffs of 35% on Canada, in addition to existing sectoral tariffs, accusing Canada of "financial retaliation." He also indicated that other countries may face tariffs ranging from 15% to 20%.
Chicago Fed President Austan Goolsbee commented that the tariffs have not had the anticipated effect on inflation and that the imposition of new duties complicates the potential for rapid interest rate cuts. He emphasized that the Federal Reserve's focus is on inflation and employment, not fiscal policy.
Global Market Reactions
Asian markets are reacting mixed to the U.S. trade policy changes. Chinese index futures are mostly higher, with the Hang Seng up by 1.7% and HSCEI by 1.5%. Conversely, Japan's Nikkei 225 is down 0.15%, Australia's S&P/ASX 2000 is down 0.3%, and India's Nifty 50 is down 0.75%.
In China, economists are advocating for a stimulus package of up to 1.5 trillion yuan (approximately $209 billion) to counteract the effects of U.S. tariffs, boost consumption, and maintain currency flexibility. Recommendations include interest rate cuts, tax reforms, and improved credit risk management for small and medium enterprises (SMEs).
Sector Highlights
Electric truck sales in China have surged by 175% year-on-year in the first half of 2025, leading to a decrease in demand for diesel and crude oil, primarily driven by government subsidies and the rapid development of charging infrastructure.
New Zealand's manufacturing PMI has improved to 48.8 in June, up from 47.5.
Commodities and Precious Metals
Precious metals are on the rise, with gold increasing by 0.3% to $3340 per ounce and silver rising by 1% to $37.38 per ounce. Crude oil futures (Brent and WTI) have stabilized after recent declines, while natural gas prices remain unchanged.
Cryptocurrency Market
The cryptocurrency market is experiencing a rally, with Bitcoin futures up by 1.5% to $118,360, Ethereum by 1.75%, Solana by 1.7%, and Ripple by 1.8%.
Recent Updates
On January 7, 2026, the US100 index ticked higher following the publication of US ADP data. However, silver prices slipped by 3% after an attempt to reach record highs, raising concerns about a potential double top pattern. Additionally, Eurozone inflation figures came in slightly below estimates, causing the EUR/USD pair to tick up.