Global Stocks Drop as Markets Brace for Crucial Week

Global Stocks Drop as Markets Brace for Crucial Week

Market Performance:

  • MSCI’s global equity index dipped 0.2%, retreating from its all-time high.
  • Japan’s Topix index fell 0.9% after hitting a record high the previous day.
  • Europe’s STOXX 600 index dropped 0.5% in early trade.

Major Risk Events Ahead:

  • Trump’s tariff deadline with Europe and China is set for August 1.
  • Upcoming central bank meetings including the Fed and Bank of Japan.
  • Key U.S. jobs data (payrolls report) and tech earnings (Apple, Amazon, Meta, Microsoft) due next week.

Expert Views:

  • UBS economist warns: Higher U.S. inflation may weaken demand and investment.
  • Russell Investments strategists expect a buying opportunity in U.S. Treasuries as tariffs kick in.

U.S. Market Snapshot:

  • U.S. 10-year Treasury yield steady at 4.41%.
  • 2-year yield flat at 3.923%.
  • S&P 500 and Nasdaq futures flat after Alphabet’s strong earnings pushed Nasdaq to record highs Thursday.

Japan & Eurozone:

  • Bank of Japan policy update and PM Ishiba’s LDP meeting scheduled for next Thursday.
  • Japanese bond yields steady near 1.6% — a level not seen since 2008.
  • ECB held rates steady, assessing tariff impacts.
  • German 10-year bond yields rose 5 bps to 2.74%, highest since March.

 Currency & Commodities:

  • Euro steady at $1.1745.
  • Gold down 0.3% to $3,356/oz.

Brent crude oil up 0.7% to $69.65/barrel.

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