Financial Markets Daily Report14 July 2025
Investors ended the week with a risk-off session as trade tensions continued to escalate. Over the weekend, President Trump threatened 30% tariffs on EU and Mexican imports beginning August 1st. Stocks fell across the board, sovereign yields rose and the dollar strengthened, leaving the euro trading just below $1.17.
In commodities markets, Brent crude prices jumped +2.5% following a report from the International Energy Agency suggesting markets are tighter than appeared. Copper prices somewhat eased but continued to trade +9% above the previous week's levels, following Trump's announcement of a 50% tariff on copper imports.
This week all eyes will be on the June inflation figures in the U.S., which should shed more light on how tariffs are being passed through to consumer prices. Last week, the St. Louis Fed President warned about the negative impact expected from tariffs which should keep the Fed on a cautious approach.