-
Market sentiment on Wall Street was mixed yesterday, with tech stocks weighing on the indices (Nasdaq: -0.4%, S&P 500: +0.05%, DJIA: +0.4%). Futures are currently up by 0.2–0.3%.
-
Donald Trump announced a trade deal with Japan overnight, with reciprocal tariff rate at 15% (including autos, which were previously facing a planned at 25%). In return, the Japanese are expected to invest an additional $550 billion in the U.S. Japanese Prime Minister Shigeru Ishiba confirmed the terms of the trade agreement, stating that close cooperation with the U.S. will continue.
-
The trade deal is fueling broad optimism in the Asia-Pacific region. Japan's Nikkei 225 is up slightly over 4%, while China's HSCEI (+0.7%), Hang Seng (+0.5%), Australia’s S&P/ASX 2000 (+0.4%), India’s Nifty 50, and South Korea’s Kospi (+0.2%) are also in positive territory.
-
Shares of Japanese automakers surged during the Asian session in response to the sectoral tariff cut from 25% to 15% (Toyota: +15%, Honda: +11%, Mazda: +17%, Nissan: +9%, Mitsubishi: +13%). The euphoria also spread to the South Korean market (Hyundai: +11%, Kia: +7%).
-
Japanese media reported that the Prime Minister of Japan is expected to announce his resignation by the end of July. Ishiba declined to comment, stating that he "can't say before scrutinising the trade deal".
-
In the forex market, the yen is the biggest loser (USDJPY: +0.25%, EURJPY: +0.18%, CHFJPY: +0.2%), reflecting market uncertainty in response to the overall trade deal with the U.S. Reduced uncertainty is benefiting Antipodean currencies the most (AUDUSD, NZDUSD: +0.4%). The U.S. Dollar Index (USDIDX) is rebounding by 0.2%. EURUSD is undergoing a 0.15% correction to 1.173.
-
Precious metals are mostly correcting after a broad decline in uncertainty. Gold is down 0.4% to $3,418 per ounce, silver is down 0.1% to $39.23 per ounce, while platinum is up 0.3%.
-
The latest API report showed a draw in crude oil inventories of 0.577 million barrels and gasoline of 1.228 million barrels, along with a build in distillates of 3.480 million barrels. WTI crude is rebounding 0.15% today.
-
Bitcoin is down 0.7% to $118,900, while Ethereum is rebounding 0.3% to $3,722.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
