Global markets opened the week under pressure, with Asian equities broadly lower after disappointing Chinese retail sales data added to mounting concerns over Beijing’s ability—or willingness—to pivot from its traditional export-led growth model to one fueled by domestic consumption.
The shortfall in spending highlights the demand gap in the world’s second-largest economy, a structural challenge at the heart of growing global trade friction. As President Donald Trump intensifies his tariff-driven strategy, the implicit message to global partners becomes clearer: China should consume more, the U.S. less.
Trump’s policy approach, which includes sustained import tariffs averaging 13%—the highest since the 1930s, is reshaping the global trade landscape. His Treasury Secretary, Scott Bessent, delivered a blunt warning on Sunday: nations unwilling to offer “good faith” trade terms could expect tariff hikes delivered “by letter.”
That posture comes with domestic consequences. Trump is pressuring U.S. retailers—including giants like Walmart, Target, Lowe’s, and Home Depot—to absorb the cost of tariffs rather than passing them on to American consumers. The strategy edges uncomfortably close to price-setting tactics reminiscent of state-managed economies, and this week’s corporate earnings could test just how far retailers are willing—or able—to comply.
Meanwhile, Trump’s tariff revenue is increasingly viewed as critical to funding his ambitious tax cut plan, which recently cleared a House committee and may reach a full vote this week. The package, estimated to add $3–$5 trillion to the national debt over the next decade, has already prompted a credit rating downgrade by Moody’s, echoing earlier moves by other agencies.
While ratings downgrades have had muted effects since the post-2008 credibility crisis, the latest development appears to be rattling foreign investors, already wary of Washington’s unpredictable policymaking. Early trading saw U.S. stock futures down over 1%, Treasury yields rising, and the dollar weakening modestly.
In Europe, pro-EU electoral victories in Romania, Poland, and Portugal brought relief to the euro, providing a political counterweight to trade and monetary uncertainty.
Key market developments to watch Monday:
As markets digest these crosscurrents—from China’s slow internal rebalancing, to U.S. fiscal and trade volatility, and Europe’s fragile political cohesion—investors face a complex week in navigating risk and positioning.
As the massive pink-hulled container ship ONE Modern pulls into the Port of Hong Kong, its crew rushes to offload more than 700 containers within a tight 10-hour window.
KazMunayGas (KMG) and China’s Sinopec have reached an agreement on the terms for jointly implementing the Berezovski subsoil use project in Kazakhstan’s West Kazakhstan region. The signed documents outline joint activities and formalize the strategic partnership between the two companies.
New Zealand has suspended NZ$18.2 million (U.S. $10.8 million) in budget funding to the Cook Islands amid growing tensions over the island nation’s deepening ties with China and concerns over a lack of transparency.
Russian President Vladimir Putin said on Thursday he supports China’s position that its ongoing tariff dispute with the United States should be resolved through dialogue.
Egypt and China stress the need for urgent de-escalation and diplomatic efforts to prevent further conflict in the Middle East. Egypt’s Foreign Minister Badr Abdelatty and Chinese Foreign Minister Wang Yi spoke on the phone.
The World Bank is pushing for “radical” debt transparency from developing countries to prevent future financial crises, warning that hidden debts are fueling instability.
Canada warns the U.S. to reach a trade deal by 21 July or face new steel and aluminium tariffs, as PM Carney vows to protect Canadian workers from U.S. measures.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
SpaceX’s massive Starship spacecraft dramatically exploded late Wednesday night during testing at the company’s test site in Brownsville, Texas. The incident marks the latest setback for billionaire Elon Musk’s ambitious plan to send humans to Mars.
The 19th General Assembly of the Organization of Asia-Pacific News Agencies (OANA) is underway in St. Petersburg, Russia. The gathering, which brings together 41 news agencies from 33 countries, is being hosted by the TASS news agency as part of the St. Petersburg International Economic Forum.
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
Israeli strikes have reportedly targeted areas near the residences of Iran’s Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian, according to the New York Times, citing local witnesses.
Azerbaijan Airlines (AZAL) has cancelled certain flights scheduled for 13th and 14th June amid recent escalation of situation in the Middle East and the closure of airspace in several countries for security reasons.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
The World Bank is pushing for “radical” debt transparency from developing countries to prevent future financial crises, warning that hidden debts are fueling instability.
European stock markets ended the day in negative territory following interest rate decisions by major central banks, including the U.S. Federal Reserve (Fed) and the Bank of England (BoE).
South Korea’s new administration proposed $14.7 billion in additional spending on Thursday to boost weak domestic demand, as President Lee Jae Myung pushes economic recovery as his top priority.
If the European Central Bank adjusts interest rates in the next six months, the move would likely be a cut, ECB policymaker Francois Villeroy de Galhau said on Thursday.
The European Bank for Reconstruction and Development (EBRD) has launched its Youth in Business programme in Türkiye, building on its success in 12 other countries. The initiative aims to mobilise up to €250 million in financing to support young entrepreneurs under 35.
The World Bank is pushing for “radical” debt transparency from developing countries to prevent future financial crises, warning that hidden debts are fueling instability.
Canada warns the U.S. to reach a trade deal by 21 July or face new steel and aluminium tariffs, as PM Carney vows to protect Canadian workers from U.S. measures.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
SpaceX’s massive Starship spacecraft dramatically exploded late Wednesday night during testing at the company’s test site in Brownsville, Texas. The incident marks the latest setback for billionaire Elon Musk’s ambitious plan to send humans to Mars.
The 19th General Assembly of the Organization of Asia-Pacific News Agencies (OANA) is underway in St. Petersburg, Russia. The gathering, which brings together 41 news agencies from 33 countries, is being hosted by the TASS news agency as part of the St. Petersburg International Economic Forum.
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