Seven Costa Rican ministers step down, deepening political crisis
Seven senior ministers in Costa Rica resigned on 29 July, intensifying the political crisis as President Rodrigo Chávez faces corruption allegations ...
Asian markets began the week on a cautious note Monday as softer-than-expected Chinese retail sales data and growing uncertainty over U.S. economic and trade policy pressured sentiment across global equities and currency markets.
The MSCI Asia-Pacific index outside Japan dropped 0.8%, while Japan’s Nikkei lost 0.7%. Chinese blue-chip shares (.CSI300) slipped 0.4%, after retail sales data for April missed forecasts, despite a better-than-expected showing from industrial output. The mixed signals underscored lingering fragility in China’s domestic economy, already stressed by ongoing U.S. tariffs and a faltering property sector.
Meanwhile, U.S. stock futures slumped, with S&P 500 futures down over 1% and Nasdaq futures falling 1.3%, amid concerns stoked by Moody’s downgrade of the U.S. credit rating and rising bond yields. The 10-year Treasury yield climbed 7 basis points to 4.51%, and the 30-year yield neared 5%.
Policy Uncertainty in Focus
The latest wave of risk aversion followed remarks by U.S. Treasury Secretary Scott Bessent, who on Sunday downplayed the impact of Moody’s action while reaffirming the administration’s hardline stance on trade. Bessent warned that countries unwilling to strike “good faith” trade deals should expect to be hit with maximum reciprocal tariffs - now averaging 13%, the highest in nearly a century.
“Beyond disruptions from higher tariffs themselves, policy uncertainty should additionally weigh on growth,” said Michael Feroli, chief U.S. economist at JPMorgan.
The White House’s mixed signals on tariff policy, coming alongside a contentious $3–5 trillion tax cut proposal progressing through Congress, have unnerved foreign investors already skittish about Washington’s fiscal trajectory. Moody’s downgrade - citing the U.S.’s $36 trillion debt load - fueled broader doubts about long-term dollar stability.
China’s Mixed Economic Picture
Data from Beijing Monday painted a murky outlook for Asia’s largest economy:
While a recent U.S.-China tariff pause offered short-term relief, economists remain skeptical about sustained recovery given deflationary pressures, consumer caution, and external headwinds.
Markets React
ECB President Christine Lagarde said over the weekend that the dollar’s decline reflects eroding confidence in U.S. policy, which may bolster the euro.
A centrist win in Romania’s presidential election—alongside similar results in Poland and Portugal—helped improve sentiment toward European assets.
Looking Ahead
Markets will closely watch earnings reports from Home Depot and Target this week for clues on U.S. consumer resilience, particularly in light of tariff-driven price pressures. Additionally, a lineup of Federal Reserve speakers, including Vice Chair Philip Jefferson and New York Fed President John Williams, may offer clarity on rate expectations. Fed Chair Jerome Powell is scheduled to speak on Sunday.
Commodities Mixed
As global markets wrestle with crosscurrents of geopolitical tension, trade policy uncertainty, and uneven economic data, the path forward remains clouded by volatility and caution.
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.
Australian researchers have created a groundbreaking “biological AI” platform that could revolutionise drug discovery by rapidly evolving molecules within mammalian cells.
Australian researchers have pioneered a low-cost and scalable plasma-based method to produce ammonia gas directly from air, offering a green alternative to the traditional fossil fuel-dependent Haber-Bosch process.
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.
The World Bank has announced that Tajikistan's medium-term outlook remains favourable, with growth projected to moderate to 7% in 2025 and converge toward a growth rate of 4.5% in 2026 and 5% in 2027.
Adidas saw its shares drop 7.5% in early Wednesday trading after second-quarter sales came in below expectations and the company warned of an added €200 million ($231 million) cost burden from new U.S. tariffs in the second half of 2024.
Spotify projected third-quarter profit below market expectations on Tuesday, citing increased tax expenses linked to employee compensation, despite strong demand for its premium subscription services.
Microsoft is reportedly in advanced negotiations to revise its agreement with OpenAI, aiming to maintain access to the startup’s cutting-edge AI technology even if OpenAI achieves artificial general intelligence (AGI), according to Bloomberg News, which cited sources familiar with the matter.
Türkiye is pressing Iraq to include a clause in a new energy deal that guarantees full utilization of the Kirkuk-Ceyhan oil pipeline, which has remained idle since 2023 due to legal disputes.
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