Financial Markets Daily Report17 July 2025
Markets had a choppy session yesterday. News reports that President Trump was considering firing the Fed Chairman sent jitters across markets, pushing Treasury yields higher and the dollar lower. Trump later denied the rumors and Treasuries recovered, while the dollar did not fully erase losses and by the end of the session the euro was close to $1.16.
On the data front, U.S. producer prices surprisingly remained flat in June after rising +0.3% in May. Separately, the Fed's beige book reported a pick-up in activity during last month, but the outlook remained negative as firms reported higher prices due to tariffs.
Equity markets were mixed globally. Stocks posted small declines across most of the euro area but advanced in the U.S. where banks led gains amid a positive earnings reporting season for the sector. Chinese stocks were flat following 2Q GDP data (+1.1% qoq vs. +1.2% qoq in 1Q).