Global Market Quick Take: Asia – July 11, 2025

Key points:

• Macro: Trump announces tariffs: 35% for Canada, EU next in line
• Equities:Tesla rises 4.7% on robotaxi expansion news
• FX: Mixed USD following tariffs and initial jobless claims
• Commodities: Oil falls 2% and gold rises above $3,320
• Fixed income: Yields steady at 4.35% after declining day prior

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Disclaimer: Past performance does not indicate future performance.

Macro:

• Trump to impose 35% tariff on goods from Canada and said that EU will be next to receive their letter. The other countries will pay a blanket 15% or 20% tariff.
• US initial jobless claims dropped by 5,000 to 227,000 in early July, contrary to expectations of a rise to 235,000, marking a fourth consecutive decline. Despite this, ongoing claims increased by 10,000 to 1,965,000, the highest since 2021, raising concerns about slowing hiring.
• The average rate on a 30-year fixed mortgage backed by Freddie Mac increased by 5 bps to 6.72% as of July 10th, up from last week's low of 6.67%. This rise followed a stronger-than-expected jobs report after a five-week decline.

Equities: 

• US - Stocks rose Thursday, with the S&P 500 hitting a record despite President Trump's tariff threats. The Dow gained 192 points, while the Nasdaq 100 dipped 0.1%. Nvidia shares rose by 0.7% after passing a $4 trillion valuation, and Tesla climbed 4.7% on robotaxi expansion news. Delta Air Lines surged 12% on reaffirmed earnings forecasts for this year and beat revenue & earnings expectations for Q2. They also announced a dividend increase from 0.12 to 0.19. Jobless claims fell to 227,000, indicating a steady labor market.
• Hong Kong - HSI rose 0.6%, to 24,028 on Thursday, recovering from a sharp drop, with financial and property stocks leading gains. Traders anticipated policy support after China's producer prices saw significant declines.
• Germany - DAX dropped 0.4% to 24,473.1, pulling back from a record high, amid US-EU trade deal anticipation. EU trade chief noted progress on protecting the EU auto industry. Global tensions increased with President Trump's planned tariffs. Commerzbank, Siemens Energy, and Allianz led losses, while pharma and auto stocks did well.

FX:

• USD had a mixed performance against peers following tariff updates, with jobless claims declining but continued claims rising, and little impact from Fed speakers. A quiet US calendar precedes key releases next week, including CPI and retail sales.
• CAD weakened to 1.37 after Trump imposed 35% tariffs on Canada, up from the 10% on April 5, and up from 25% on steel & aluminum.
• EUR weakened against the dollar, dropping below 1.1700 amid lingering trade uncertainty. GBP fell below 1.3600 but stayed above intraday lows as markets await UK GDP and production data.
• JPY remained relatively stable after early weakness, with no major new catalysts for Japan.
• Economic calendar – Germany Wholesale Prices, UK GDP, UK Industrial Production, UK Manufacturing Production, Canada Unemployment Rate

Commodities:

• WTI crude fell 2% to below $67 per barrel as OPEC+ considered pausing output hikes amid concerns of oversupply post-summer. Gold rose to $3,320 per ounce, buoyed by a weaker dollar amidst trade developments and FOMC minutes. Copper futures near record highs at $5.60 per pound followed President Trump's announcement of a 50% tariff on copper imports starting August 1.

Fixed income:

• The 10-year US Treasury yield steadied at 4.35% as markets digested trade shifts and Trump’s call for a 300bps Fed rate cut, fueling dovish Fed speculation. Two rate cuts are still expected this year, with a hold likely this month.

For a global look at markets – go to Inspiration.

Key points:

• Macro: Trump announces tariffs: 35% for Canada, EU next in line
• Equities:Tesla rises 4.7% on robotaxi expansion news
• FX: Mixed USD following tariffs and initial jobless claims
• Commodities: Oil falls 2% and gold rises above $3,320
• Fixed income: Yields steady at 4.35% after declining day prior

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<Table with Source>

Disclaimer: Past performance does not indicate future performance.

Macro:

• Trump to impose 35% tariff on goods from Canada and said that EU will be next to receive their letter. The other countries will pay a blanket 15% or 20% tariff.
• US initial jobless claims dropped by 5,000 to 227,000 in early July, contrary to expectations of a rise to 235,000, marking a fourth consecutive decline. Despite this, ongoing claims increased by 10,000 to 1,965,000, the highest since 2021, raising concerns about slowing hiring.
• The average rate on a 30-year fixed mortgage backed by Freddie Mac increased by 5 bps to 6.72% as of July 10th, up from last week's low of 6.67%. This rise followed a stronger-than-expected jobs report after a five-week decline.

Equities: 

• US - Stocks rose Thursday, with the S&P 500 hitting a record despite President Trump's tariff threats. The Dow gained 192 points, while the Nasdaq 100 dipped 0.1%. Nvidia shares rose by 0.7% after passing a $4 trillion valuation, and Tesla climbed 4.7% on robotaxi expansion news. Delta Air Lines surged 12% on reaffirmed earnings forecasts for this year and beat revenue & earnings expectations for Q2. They also announced a dividend increase from 0.12 to 0.19. Jobless claims fell to 227,000, indicating a steady labor market.
• Hong Kong - HSI rose 0.6%, to 24,028 on Thursday, recovering from a sharp drop, with financial and property stocks leading gains. Traders anticipated policy support after China's producer prices saw significant declines.
• Germany - DAX dropped 0.4% to 24,473.1, pulling back from a record high, amid US-EU trade deal anticipation. EU trade chief noted progress on protecting the EU auto industry. Global tensions increased with President Trump's planned tariffs. Commerzbank, Siemens Energy, and Allianz led losses, while pharma and auto stocks did well.

FX:

• USD had a mixed performance against peers following tariff updates, with jobless claims declining but continued claims rising, and little impact from Fed speakers. A quiet US calendar precedes key releases next week, including CPI and retail sales.
• CAD weakened to 1.37 after Trump imposed 35% tariffs on Canada, up from the 10% on April 5, and up from 25% on steel & aluminum.
• EUR weakened against the dollar, dropping below 1.1700 amid lingering trade uncertainty. GBP fell below 1.3600 but stayed above intraday lows as markets await UK GDP and production data.
• JPY remained relatively stable after early weakness, with no major new catalysts for Japan.
• Economic calendar – Germany Wholesale Prices, UK GDP, UK Industrial Production, UK Manufacturing Production, Canada Unemployment Rate

Commodities:

• WTI crude fell 2% to below $67 per barrel as OPEC+ considered pausing output hikes amid concerns of oversupply post-summer. Gold rose to $3,320 per ounce, buoyed by a weaker dollar amidst trade developments and FOMC minutes. Copper futures near record highs at $5.60 per pound followed President Trump's announcement of a 50% tariff on copper imports starting August 1.

Fixed income:

• The 10-year US Treasury yield steadied at 4.35% as markets digested trade shifts and Trump’s call for a 300bps Fed rate cut, fueling dovish Fed speculation. Two rate cuts are still expected this year, with a hold likely this month.

For a global look at markets – go to Inspiration.