Most Read: S&P 500, Dow Jones Q3 Outlook: Tariffs, Tech, and Small Cap Concerns
Market optimism was dampened in the Asian session as market participants digested the latest Trump tariff updates which included a 35% tariff on Canada. President Trump also announced a potential blanket tariff of 20% on other countries.
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Asian Market Wrap
Asia Pacific stocks traded mixed in the Asian session as the positive mood from the US session faded after President Trump’s announcements.
The ASX failed to sustain its early session momentum as gains in mining, materials and resources were offset by in real estate and tech. In Japan the Nikkei saw choppy price action as ongoing trade uncertainty continues and weighs on the Japanese yen as well.
Chinese markets are on the front foot despite the lack of obvious bullish catalysts, although US Secretary of State Rubio and Chinese Foreign Minister Wang Yi are set to meet in Malaysia today.
For a more in-depth look at the Asian session, read Asia midday: Hong Kong stocks rally on China stimulus hopes, AUD/USD (Chart of the day)
UK GDP Contracts for Second Month
The UK economy shrank by 0.1% in May 2025, following a 0.3% drop in April, missing expectations of 0.1% growth.
GDP fell 0.1% in May, missing expectations of a 0.1% rise, following a 0.3% drop in April due to reduced exports to the U.S. from higher tariffs. This points to a likely GDP decline for Q2, making an August rate cut seem unavoidable.
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Source: TradingEconomics
European Open
European stocks fell on Friday as the US president expanded his trade war. The STOXX 600 index dropped 0.4% to 550.96 points by 0708 GMT but was still set for a weekly gain. Other major markets in the region also declined.
On Thursday, Donald Trump said the EU might receive a letter about tariff rates by Friday, raising doubts about trade talks between the US and the EU. Recently, Trump has added new tariffs on several countries, including a 50% tariff on copper.
Among sectors, personal and household goods fell 1%, healthcare dropped 0.7%, but defense stocks rose 0.6%.
In company news, BP said its second-quarter results might be hit by lower gas and oil prices, though its production is expected to be higher. BP shares rose 1.3%.
On the FX front, The U.S. dollar rose on Friday amid global trade tensions. The Canadian dollar fell 0.27% to 1.3693 after Trump announced a 35% tariff on imports from Canada starting August 1.
The euro dropped 0.2% to 1.1682, down 0.9% for the week. The Australian dollar slipped 0.11% to 0.6581, while sterling fell 0.16% to 1.3558, losing over 0.6% this week.
The New Zealand dollar declined 0.34% to 0.6015, and the yen weakened 0.44% to 146.91 per dollar, down 1.6% for the week after Trump imposed a 25% tariff on Japan.
Currency Power Balance
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Source: OANDA Labs
Bitcoin hit a record high of 117,685.96, boosted by institutional investor demand. Ethereum (ETH) surged over 6%, reaching a five-month high of 3,017.81.
Looking at commodities and Oil prices fell yesterday, testing a key support level.
Gold prices are on the offensive this morning breaking above a descending trendline with further upside looking likely. The uncertainty around trade deals keeps the precious metal supported for now. Next key area of resistance around the 3360 mark.
For a more in depth look at Oil prices, Read USD/CAD Eyes Gains as WTI Oil Slips. 1.3750 Incoming?
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.
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For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)
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Chart of the Day – DAX Index
From a technical standpoint, the DAX index has retreated to retest the range breakout from earlier this week.
Bulls remain in control as long as the DAX holds above the 23745 swing low. There is a key level of confluence provided by the 20 and 50-day MAs which rest around the 23800.
A daily candle close below the 23745 handle could open up the potential for further downside.
DAX Daily Chart, July 11. 2025
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Source: TradingView.com (click to enlarge)
Support
- 24000
- 23745
- 23471
Resistance
- 24330
- 24500
- 24750
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