The U.S. dollar continues to weaken, heading for its fifth consecutive monthly loss, while Asian stock markets are falling. The main reason is market uncertainty following Donald Trump's surprising decision to postpone tariffs on EU goods until July 9.
In contrast, U.S. stock futures reacted positively — investors see the delay as an opportunity for further negotiations and easing of global trade tensions.
📉 Asian Markets in the Red, U.S. Futures Climb
Mixed sentiment in Asia led to modest declines in major indexes:
🔹 MSCI Asia ex-Japan Index fell 0.17%
🔹 Japan's Nikkei dropped 0.15%
🔹 Indexes in China and Hong Kong remained nearly flat
Meanwhile, U.S. futures moved higher:
🔹 Nasdaq rose 1.26%
🔹 S&P 500 gained 1.11%
🔹 UK’s FTSE increased 0.94%, despite London markets being closed on Monday
🗣 Trump Shakes Markets, Nvidia Draws Attention
According to analyst Tony Sycamore, the tariff delay was positive for risk assets, but the real drivers of the week are Nvidia’s upcoming earnings and month-end portfolio rebalancing.
Nvidia is set to release its quarterly earnings on Wednesday, with analysts expecting a nearly 66% revenue increase driven by soaring demand for AI chips.
💵 Dollar Under Pressure: Investors Seek Alternatives
The U.S. dollar continues to slide, on track for its longest monthly losing streak since 2017.
🔹 The euro remains near a one-month high at $1.14
🔹 The Japanese yen strengthened to 142.18 per dollar
Economist David Meier from Julius Baer warns that a weaker dollar may become the new normal, blaming:
🔹 Unclear U.S. policy
🔹 Rising national debt
🔹 Twin deficits (budget and trade)
🏦 Central Banks Meet, Gold Holds, Oil Slips
Markets are awaiting signals from central bankers. In Japan, the Bank of Japan has kicked off a two-day conference attended by global central bank officials to discuss inflation and economic growth.
Meanwhile, investors are shifting focus to other assets:
🔹 Gold trades slightly lower at $3,332.91/oz
🔹 Oil declines on fears that OPEC+ may boost production
– Brent: $64.67/barrel
– WTI: $61.43/barrel
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