Trump’s Tariffs & Fed Fight Spark Market Flux: Is Powell Under Fire?- 14.07.2025

This global trade tariff update and market trends recap covers sweeping U.S. tariffs, record Bitcoin highs, Eurozone outperformance, and cautious investor sentiment ahead of key macro data.

Global Trade Tariff Update and Market Trends: United States

• Stock & Futures: S&P 500 futures dipped ~0.3%, with Dow and Nasdaq similarly pressured after President Trump announced 30% tariffs on EU and Mexican imports effective 
• Dollar & FX: The dollar stabilized around multi-year lows, supported by tariff-induced safe-haven flows; bitcoin surged past $120,000, setting a new all-time high.
• Bonds: Treasury yields held steady, with upcoming June CPI, PPI, and retail sales data in focus. Political pressure on Fed Chair Powell is intensifying 

Global Trade Tariff Update and Market Trends: Eurozone

• Equities: Eurozone and German stocks are up +27–37% YTD in dollar terms, outshining U.S. markets.
• Currencies: The euro slid to a three-week low (~$1.1676) post-tariff news but later retraced some losses.
• Policy & Trade: The EU reaffirmed interest in negotiating a trade deal, extending suspension of countermeasures while preparing defensive measures. Germany signals readiness for firmer response if tariffs proceed.

United Kingdom Market Overview

• Currency: Pound slipped modestly amid dollar strength.
• Outlook: UK shares, particularly exporters, may face headwinds from rising U.S. protectionism and currency fluctuations; domestic-oriented stocks remain favored 

China Economic and Trade Outlook

• Trade Data: June exports rose +5.8% YoY; broader poll indicates ~5.0% export growth and +1.3% import rebound 
• Growth Outlook: Q2 GDP expected at +5.1% YoY (down from +5.4%), with anticipated PBOC rate cut later in 2025 amid slowdown concerns 

Japan GDP and Currency Trends

• GDP & Confidence: Service-sector sentiment improved slightly in June, but increasing corporate bankruptcies and falling real wages highlight fragility.
• FX & Trade: Yen continues weak trend after 25% tariff threat, trading near ¥146/$; upcoming Q2 output figures in focus 

EMEA and Emerging Market Insights

• Gulf Region: Stock markets down ~0.3–0.5% as investors digest U.S. tariffs. Saudi index off 0.2%, Abu Dhabi/Qatar down similarly.
• Emerging Currencies: Scandinavian crowns (+10–15%) and safe‑haven currencies (euro, franc, yen) are outperforming amid prolonged dollar weakness 
• Strategist View: JPMorgan favors domestic-focused names in Japan, Eurozone, and UK over exporters due to trade and FX risks

Commodities and Crypto Market Recap

• Gold: Mild uptick as investors rethink risk exposure.
• Oil: Prices edged higher on geopolitics and speculation about possible Russia sanctions 

₿ Crypto

• Bitcoin: Broke record, hitting ~$121,200 — driven by regulatory optimism (“crypto week”) in U.S. 
• Crypto Stocks: Bitcoin miners and crypto‑related equities trading higher on positive sentiment .

What to Watch Next

1. U.S. Data: June CPI, PPI, retail sales; key Fed speeches.
2. China Releases: Q2 GDP, retail sales, industrial output (Jul 15, 0200 GMT) 
3. Trade Talks: EU & Mexico responses; Japan/South Korea negotiations.
4. Crypto Legislation: U.S. House debates Genius & related bills this week.

Summary:
Markets experienced a cautious tone after President Trump announced sweeping tariffs, with continued dollar softness and equity pressure. Investors remain keen on macro data and trade developments. Bitcoin surged ahead of U.S. crypto regulation, while global equities outside the U.S. continue to outperform.

Upcoming Focus (July 14+)

• U.S. inflation and retail sales data
• China’s Q2 GDP & industrial figures
• Congressional crypto bill progress
• FX/Commodity reactions to global trade moves