Daily summary: tariff suspension extended to August 1 📃

8:54 pm 7 July 2025

  • U.S. indices are losing ground in the first session of the week, following the extended Independence Day weekend.

  • Despite the extension of the mutual tariff suspension until August 1, American investors remain uncertain about the prospects for a positive outcome in ongoing trade negotiations.

  • Trump stated he would impose 25% tariffs on Japan and South Korea, leading to notable gains in the USDJPY and USDKRW pairs. He emphasized that any tariff increases from these countries would be met with a proportional U.S. response.

  • With just over two hours left in the trading session, the US500 is down 0.3%, while the US100 is losing just under 0.2%, although losses were significantly deeper earlier in the session.

  • European markets saw a strong session, with Germany’s DE40 rising over 1%.

  • According to trusted sources close to the White House, the U.S. does not plan to immediately impose new 10% tariffs on BRICS member states, even if they engage in anti-American political moves.

  • Tesla shares are down over 7% today as tensions escalate between Trump and Elon Musk, who has announced the formation of a new political party in the U.S.

  • Musk unveiled the creation of the America Party, a new political initiative aimed at challenging the dominance of the so-called "Uniparty" (the traditional Democratic and Republican establishment). The party's main platforms include fiscal responsibility, freedom of speech, AI-driven governance reforms, and pronatalist policies.

  • Following the extension of the tariff suspension, the U.S. dollar recovered some of its earlier losses. The EURUSD pair dropped below the 1.1700 level. Bullish sentiment for the dollar was also bolstered by Treasury Secretary Bessent’s remarks, in which he emphasized that high interest rates are not solely Powell’s responsibility, but that of the entire voting committee supporting unchanged rates.

  • Oil prices turned positive, gaining over 1% despite opening with a downside gap. OPEC+ is expected to increase output by 550,000 barrels per day in August, including a 300,000 bpd increase from the UAE. In comparison, production hikes in May, June, and July were slightly over 400,000 bpd.

  • The cryptocurrency market is slightly lower today, though Bitcoin remains elevated around $108,000.

  • Strategy announced a new $4.2 billion funding round. The capital will be raised through the issuance of Series A preferred shares bearing a 10.00% interest rate, to be listed on Nasdaq under the ticker STRD.

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