“We made a great deal with China … At a certain point, we’re just going to send letters out … ‘This is the deal. You can take it, or you can leave it.’”
— Trump
Trump’s sharp rhetoric and renewed trade warnings sent shockwaves across global markets today. He hinted at dispatching formal trade deal letters to around 15 countries, suggesting a “non-negotiable” stance. While he acknowledged the possibility of extending the July 8 tariff deadline, he claimed it likely wouldn’t be needed.
Global Markets Reaction
- Nikkei 225 (Japan): −0.5%
- MSCI Asia ex-Japan: −0.2%
- CSI 300 & Hang Seng (China/HK): Slight losses
- DAX (Germany): −0.8%
- FTSE 100 (UK): −0.4%
- S&P 500 futures: Slight decline
Investors moved cautiously as fears of new tariff measures loomed large, especially given ongoing uncertainties with China, Europe, and other trading partners.
Dollar Dips, Fed in Focus
Dollar index touched its lowest level since April, boosting the euro and yen.
- The U.S. dollar index fell to a 2-month low, losing ground to major currencies.
- Euro and Yen gained, supported by rate cut speculation and safe-haven demand.
- Markets are now pricing in a 70% chance of a Fed rate cut by September following tame U.S. CPI data.
Oil, Gold Find Safe-Haven Support
- Gold: +0.6%, driven by inflation concerns and risk aversion
- Brent crude: Hovered near $70/barrel, bolstered by Iran-related tensions
What to Watch Next
- Will Trump send the trade letters, and how will China and the EU respond?
- Can we expect a formal tariff extension or a sudden escalation?
- How will the Federal Reserve adjust its tone in the coming weeks?
Kanak Capital Markets Reviews Global Markets & Trump’s “Take-It-Or-Leave-It” Trade Gambit
The update summarizes recent developments in global markets following remarks by former U.S. President Donald Trump regarding upcoming trade letters and a possible extension to the July 8 tariff deadline. Equity indices across Asia, Europe, and U.S. futures recorded declines, while gold and oil prices saw modest gains. The U.S. dollar weakened, and expectations of a Federal Reserve rate cut rose following muted inflation data. Kanak Capital Markets continues to follow these developments as part of its broader market awareness and analysis efforts.
