China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
The U.S. dollar strengthened on Monday after President Donald Trump announced plans for new 25% tariffs on all steel and aluminum imports. This move pressured the euro, Australian dollar, and New Zealand dollar while fueling concerns over a global trade war. Trump also stated he would introduce reciprocal tariffs matching other countries' levies, with details expected Tuesday or Wednesday.
The euro slipped 0.1% to $1.0317, nearing last week’s two-year low of $1.0125, as investors braced for Trump’s tariffs on Europe. The Australian dollar fell 0.21% to $0.6264, while the New Zealand dollar dipped 0.12% to $0.5649. The Canadian dollar, impacted by its position as the largest U.S. aluminum supplier, weakened by over 0.2%.
Charu Chanana, chief investment strategist at Saxo, noted that China is no longer a major U.S. steel supplier due to past tariffs but warned of increased market uncertainty and a shift toward protectionism.
Investors now await U.S. inflation data on Wednesday and Federal Reserve Chair Jerome Powell’s congressional testimony on Tuesday and Wednesday, where tariffs are expected to be a key topic. Analysts suggest new tariffs could drive inflation and pressure the Fed to maintain high interest rates. Markets have adjusted expectations, now pricing in 36 basis points of rate cuts for 2025, down from 42 bps after a strong jobs report.
Macquarie strategists revised their Fed outlook, predicting no rate cuts in 2025, keeping rates in the 4.25%-4.5% range. The dollar index remained steady at 108.23. Sterling held at $1.23915, while the Japanese yen weakened 0.4% to 152 per dollar but stayed near Friday’s one-month high amid expectations of a Bank of Japan rate hike.
