Daijiworld Media Network – Washington
Washington, Jul 11: Global markets saw a dip in investor sentiment on Friday, as US stock futures retreated and the dollar gained strength following renewed tariff threats by former US President Donald Trump. The announcement has triggered fresh concerns over global trade dynamics.
Futures linked to the S&P 500 and European stocks declined by 0.2% after Trump hinted at a sweeping increase in tariffs, proposing levies of up to 15% or 20% on major trading partners — a significant jump from the current 10% blanket rate. Additionally, the Canadian dollar took a hit after Trump singled out Canada, threatening a 35% tariff on selected goods.
While Wall Street futures slipped, the US dollar index advanced 0.2%, showing investor preference for safer assets. Meanwhile, the Japanese yen weakened slightly. In contrast, Bitcoin continued its meteoric rise, climbing past the $118,000 mark, further reflecting market uncertainty and hedging strategies by investors.
Despite the unease in Western markets, Asian stocks saw modest gains of 0.3%, buoyed by Goldman Sachs' revised positive outlook for Asian equities (excluding Japan), which cited an improving macroeconomic environment and reduced tariff risks in the region.
Market analysts believe Trump's latest remarks could complicate the already fragile global trade landscape. “The latest news of a higher tariff rate on Canada and potentially others as well has seen risk getting pared back,” said Khoon Goh, Head of Asia Research at ANZ Group.
Adding to the geopolitical tremors, Trump has indicated plans to make a “major statement” regarding Russia, with sanctions reportedly under consideration — another development being closely watched by global markets.
Despite these headwinds, US equities have shown resilience. The S&P 500 closed at an all-time high on Thursday, signaling investor optimism ahead of the earnings season, even as caution builds around inflation and growth concerns.
As the global economic chessboard continues to shift, all eyes remain on Washington and the unfolding policy moves that could reshape trade and financial flows in the coming months.