Wall Street futures slipped and the dollar strengthened on Monday after President Donald Trump reaffirmed plans for 25% tariffs on steel and aluminium, fueling concerns over trade tensions and inflation.
Speaking aboard Air Force One, Trump confirmed that tariffs on all steel and aluminium imports would be announced on Monday, with additional trade measures following on Tuesday or Wednesday. The comments heightened concerns over a potential trade war, especially after German Chancellor Olaf Scholz warned that the European Union would respond "within an hour" if U.S. tariffs targeted European goods.
China is also set to enforce retaliatory tariffs on U.S. exports, with no breakthrough in negotiations between Beijing and Washington. Analysts predict that currencies of targeted nations will weaken against the dollar, allowing them to offset the impact of new tariffs and remain competitive in trade.
Markets are also factoring in the inflationary risks of new tariffs, which could limit the Federal Reserve’s ability to cut interest rates. Investors had already lowered their expectations for Fed rate cuts this year, following strong U.S. employment data.
Dollar Gains as Yields Rise
The dollar index rose 0.3% to 108.38, with the euro slipping to $1.0295 and the Australian dollar falling 0.5% to $0.6245. The yen remained steady at 151.32, as speculation grows over a potential Bank of Japan rate hike in the coming months.
Stock market futures turned negative, with S&P 500 futures slipping 0.2%, Nasdaq futures down 0.3%, and Nikkei futures falling to 38,415 from Friday’s close of 38,787.
Tariff Impact on Corporate Earnings
Concerns over trade policy uncertainty weighed on investor sentiment. Analysts at Goldman Sachs warned that the effective U.S. tariff rate could rise by five percentage points, reducing earnings per share by 1% to 2% in 2025.
Gold Prices Hold Near Record Highs
Despite a stronger dollar and rising bond yields, gold prices remained firm at $2,860 per ounce, after hitting a record $2,886. Reports suggest increased demand for physical gold shipments to the U.S. amid speculation that Trump could impose tariffs on the metal.
As markets brace for new trade measures, investors remain focused on inflation risks, Fed policy moves, and the impact of escalating tariff disputes on global trade flows.
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European wine and dairy producers are facing growing uncertainty as new U.S. tariffs threaten to disrupt exports to one of their most lucrative markets.
The two-day Ukraine Recovery Conference wrapped up in Rome on Friday, but the vision of rebuilding the war-torn country remains largely theoretical amid the absence of a ceasefire.
A preliminary investigation by India’s Aircraft Accident Investigation Bureau (AAIB) has revealed that both engines of the Air India Flight AI-171 shut down mid-air within seconds of takeoff, leading to the deadly crash on June 12.
Norway could soon receive a major boost to its airborne defence, as Washington signals readiness to expand military cooperation through a new high-value arms deal.
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.
A deadly mass shooting early on Monday (7 July) in Philadelphia's Grays Ferry neighbourhood left three men dead and nine others wounded, including teenagers, as more than 100 shots were fired.
Dozens of international and domestic flights were cancelled or delayed after Mount Lewotobi Laki Laki erupted on Monday, but Bali’s main airport remains operational.
The 17th Summit of the Economic Cooperation Organization (ECO) was successfully held in Khankendi, Azerbaijan, highlighting the region’s revival and the deepening economic cooperation among member states.
French member of parliament Olivier Marleix was found dead at his home on Monday, with suicide being considered a possible cause.
European shares dropped on Friday after President Donald Trump intensified tariff threats against the EU, casting doubt on trade talks and dampening investor confidence.
Turkmenistan has gathered 1.407 million tonnes of wheat, matching its 2025 goal after a round-the-clock harvest on 690,000 hectares that officials say was bolstered by new combines and higher state purchase prices.
Azerbaijan Railways CJSC signed a Memorandum of Understanding with the Chinese company 'Xi'an Free Trade Port Construction and Operation' and has opened its representative office and container terminal in the Xi'an International Port.
The UK and Japan have signed a Memorandum of Cooperation (MoC) aimed at enabling increased UK investment into Japan, further strengthening the economic ties between the two nations.
German inflation eased to 2.0% in June, the federal statistics office said on Thursday, confirming preliminary data.
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