Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
Oil Prices Set for Weekly Surge as U.S.-Iran Conflict Fuels Supply Fears 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
The U.S. dollar surged on Monday, sending the Canadian dollar and Mexican peso to multi-year lows, while the Chinese yuan in offshore trading plummeted to a record low after President Donald Trump imposed sweeping tariffs, escalating trade tensions.
The dollar's gains were widespread, with the euro plunging to a two-year low and the Swiss franc, typically a safe haven, weakening to its lowest since May. Canada and Mexico, the top two U.S. trading partners, swiftly vowed retaliation, while China announced plans to challenge the tariffs at the WTO.
Market analyst Tony Sycamore noted the unexpected retaliatory measures by Canada and Mexico, with potential responses from China and the EU adding to concerns of a sharp contraction in global trade. The implementation of U.S. tariffs on February 4, earlier than expected, intensified market uncertainty.
As promised, the U.S. levied 25% duties on Canadian and Mexican imports and a 10% tariff on Chinese goods, citing economic security concerns. The move shook investor confidence, with Bank of Singapore's chief economist Mansoor Mohi-uddin warning of potential long-term economic consequences.
The U.S. dollar climbed 0.7% to 7.2552 yuan offshore, earlier touching a record high of 7.3765. It rose 2.7% to 21.40 pesos, a high not seen since 2022, and 1.4% to C$1.4755, its strongest level since 2003. The euro fell 2.3% to $1.0125 before recovering slightly.
The Federal Reserve’s expected rate cuts were also reevaluated, with traders reducing projections by 6 basis points. Bitcoin fell 4.4% to $97,622, while Ether plunged 15% to $2,812.
With markets bracing for further trade disruptions, analysts warn of stagflation risks, characterized by weak growth and rising inflation.
