Global financial markets are trading mixed today amid U.S. President Donald Trump’s announcement of tariffs on drug and semiconductor imports, coupled with weak service sector data impacting investor risk appetite.
The new tariff measures, based on the principle of reciprocity and signed by Trump last week, are set to take effect this Thursday. The President has stated that details regarding tariffs on drug and semiconductor imports will be announced “next week or shortly thereafter.”
“Initially, low tariffs will be applied to imported drugs. However, this rate will rise to 150% within a year to a year and a half, and later increase to 250%, as we want these drugs to be produced domestically in the U.S.,” Trump said.
Analysts note that despite trade agreements with key partners like China, Japan, and the European Union, the new tariff plans are increasing market uncertainty, keeping investor attention focused on related developments.
Economic Outlook
Questions remain over how these tariffs will affect the U.S. economy. The ISM services Purchasing Managers’ Index (PMI) fell to 50.1 in July, below market expectations. Analysts say this weakness raises concerns over economic activity and places the Federal Reserve in a difficult position between controlling inflation and supporting growth.
Meanwhile, the U.S. trade deficit narrowed by 16% in June to $60.2 billion, hitting its lowest level since September 2023. On the corporate front, Palantir shares rose 7.85% after raising its annual revenue forecast, while Pfizer’s shares gained 5.18% following an upward revision to profit guidance.
Gold Continues Fourth Day of Gains
Economic uncertainty in the U.S. has boosted demand for gold. The price of gold rose 0.2% to $3,380 per ounce, marking a fourth consecutive day of gains. However, early trading today shows a slight dip of 0.2% to $3,375 per ounce.
US 10-year Treasury yields climbed to 4.21%, while the dollar index reached 98.7. Brent crude oil prices rose to $67.80 per barrel.
Positive Signals in European and Asian Markets
European stock markets closed higher yesterday, except in France. Investors are closely watching the Bank of England’s interest rate decision scheduled for tomorrow, with markets largely expecting a rate cut.
Asian markets displayed mixed performance. Japan’s automotive sector led gains with Mitsubishi Heavy’s shares up 4.1%, Toyota rising 3.3%, and Mazda Motors increasing 3.1%.
Turkish Markets
The BIST 100 index in Borsa Istanbul closed marginally down at 10,849.96 points yesterday. Meanwhile, August futures contracts on the BIST 30 index in the VIOP market rose 0.35% to 12,303 points during the evening session.
The USD/TRY exchange rate is trading around 40.6780 in the interbank market today.
Key Data Releases to Watch Today:
09:00 Germany – June Factory Orders
12:00 Eurozone – June Retail Sales
14:00 US – Weekly Mortgage Applications
The United States has proposed a comprehensive four-phase plan that calls for Hezbollah's full disarmament and the withdrawal of Israeli forces from f...
A growing number of extreme climate events are inflating food prices around the world, with new research showing that key crops such as coffee, cocoa,...
A Cessna aircraft operated by AMREF Flying Doctors crashed into a residential area of Nairobi on Thursday, killing six people, according to local auth...
Indonesia’s Ministry of Energy and Mineral Resources announced on Thursday that the country’s coal production is likely to exceed 700 million tons...
A rare first edition of J.R.R. Tolkien’s 'The Hobbit' has sold for £43,000 at a UK auction after being discovered in a Bristol home....
U.S. President Donald Trump is hosting Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan in Washington on Friday for separate and trilateral talks aimed at advancing peace and regional cooperation in the South Caucasus.
A rare first edition of J.R.R. Tolkien’s 'The Hobbit' has sold for £43,000 at a UK auction after being discovered in a Bristol home.
Afghanistan’s Deputy Prime Minister for Administrative Affairs met with senior migration officials in Kabul to address the escalating return of Afghan refugees from neighbouring countries, amid Pakistan’s deadline for registered refugees to leave by the end of August.
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
China and the Association of Southeast Asian Nations will send an upgraded ‘version 3.0’ free-trade agreement to their heads of government for approval in October, Chinese Foreign Minister Wang Yi said on Saturday after regional talks in Kuala Lumpur.
A series of earthquakes have struck Guatemala on Tuesday afternoon, leading authorities to advise residents to evacuate from buildings as a precaution against possible aftershocks.
'Superman' continued to dominate the summer box office, pulling in another $57.25 million in its second weekend, as theatres welcome a wave of blockbuster competition following a challenging few years for the film industry.
De-dollarisation, the move away from the U.S. dollar in global trade and finance, is no longer a fringe idea. As geopolitical tensions rise and new financial tools emerge, could this shift really transform the global economy?
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
U.S. stock markets closed higher on Wednesday, with the Nasdaq leading gains after tech giants – particularly Apple – saw strong advances.
Tesla has granted Elon Musk a $29 billion share award as part of a new compensation plan to retain him as CEO while the company shifts focus from electric cars to robotaxis and AI. The move revives elements of a controversial 2018 package previously struck down by a Delaware court.
OPEC+ will increase oil production by 547,000 barrels per day in September after eight members of the organisation held a brief virtual meeting on Sunday. They said the company will continue to accelerate its output hikes to regain market share.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment