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 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Gold Prices Head for Biggest Weekly Loss Since June as Fed Rate Outlook Weighs 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
The euro slipped to a three-week low and the yen held steady on Thursday after U.S. President Donald Trump announced a 25% tariff on imported cars and light trucks, effective next week. The move reignited fears of a global trade war, dampening risk sentiment across financial markets.
Although recent optimism around potentially lighter tariffs had supported markets, the new auto duties renewed concerns about slower U.S. growth and rising inflation. The euro fell 0.07% to $1.0747 after hitting a low of $1.0733, while the yen edged slightly stronger to 150.445 per dollar. The U.S. dollar index hovered near a three-week high at 104.61.
In 2024, the U.S. imported $474 billion worth of automotive products, including $220 billion in passenger cars. Major exporters to the U.S. included close allies like Mexico, Japan, South Korea, Canada, and Germany. Trump’s tariff excludes auto parts compliant with the U.S.-Mexico-Canada Agreement.
Market reactions were mixed. The Mexican peso weakened over 0.5% to 20.2222 per dollar, while the Canadian dollar dipped to 1.429. The Australian dollar traded at $0.62925, and the New Zealand dollar was little changed at $0.57245.
Analysts warn the new tariffs could prolong trade uncertainty. Prashant Newnaha of TD Securities noted that higher prices and slower growth could make a soft economic landing more difficult. Kyle Rodda of Capital.com added that this signals the Trump administration's trade overhaul may extend beyond previously expected reciprocal tariffs.
Investors now await the announcement of retaliatory tariffs next week. Trump hinted these may differ from the direct reciprocal measures initially promised, fueling further market caution.
