ORLANDO, Florida (Reuters) -TRADING DAY
Making sense of the forces driving global markets
By Jamie McGeever, Markets Columnist
World markets were, on the whole, pretty buoyant on Monday as investors shrugged off U.S. President Donald Trump’s latest tariff threats over the weekend and braced for a deluge of top-tier economic data from the U.S. and China on Tuesday.
While European and Mexican stocks did wobble on Trump’s latest trade salvo, the hits were minor. Risk appetite held firm – world equity benchmarks inched up, the Nasdaq and bitcoin hit new highs, and silver reached a fresh 14-year peak.
If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
1. Don’t panic: Europe Inc cautions calm as bloc tries toavert 30% U.S. tariffs 2. Currency FOMO may yet draw U.S. investors overseas: MikeDolan 3. Central bank independence needs a better defence 4. Why Trump’s push for a 1% Fed policy rate could spelltrouble for U.S. economy 5. Wealth funds warm to active management – and China – toweather volatility, report shows
Today’s Key Market Moves
* World stocks tread water, with Wall Street’s rise offsetby general softness in Asia and Europe. European and Mexicanstocks fall on Trump’s 30% tariff threat. * Canadian stocks, spared from the latest threat for now,rise 0.6% to a new high of 27142 points. * The dollar continues to recover, rising to a three-weekhigh on an index basis. A sixth straight gain marks its best runthis year. * Bitcoin leaps to record $123,236 before settling around$120,000. It’s up more than 10% in the last week. * Silver slips on the day, but not before hitting a new14-year high above $39/oz. The $40/oz barrier is in sight.
Resisting renewed tariff tensions
Markets started a busy week on a solid footing on Monday, as investors withstood the latest escalation in Trump’s tariff war with two of America’s largest trading partners, and dug in ahead of key market-sensitive economic and corporate events in the coming days.
After Trump on Saturday said he would impose a 30% tariff on most imports from the EU and Mexico from August 1, the EU on Sunday said it would extend its suspension of countermeasures until early August and continue to press for a negotiated settlement.
The euro and European stocks fell – the single currency hitting a three-week low – but the declines were small. Investors still appear to be optimistic that talks will ultimately be fruitful and a palatable deal will be reached.
Trade figures from China earlier in the day were certainly better than expected, although they were boosted by exporters rushing to beat a fragile tariff truce between Beijing and Washington ahead of a looming August deadline. Exports rose 5.8% year-on-year and imports rebounded 1.1%.
