01-07-2025

Global Markets Mixed Amid Trade Tensions and Events

Date: 01-07-2025
Sources: cnbc.com: 6
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"A bustling global stock exchange floor with screens displaying rising market trends, traders analyzing data, and a subtle background of world maps and financial news feeds."

Summary

Despite geopolitical tensions and significant global events, investors remained calm, and markets performed respectably in the first half of the year. The S&P 500 and Nasdaq Composite reached fresh all-time highs, while major Asian markets were mostly in positive territory. US stock futures fell after Wall Street's record gains, and European markets are expected to open positively.

Key Points

  • US stock markets reached fresh highs despite trade tensions and global events
  • Asian markets traded mixed as investors assessed US tariff policies and trade talks
  • European markets expected to open higher amid ECB rate cut and trade updates

Articles in this Cluster

CNBC Daily Open: Keeping a cool head paid off for investors

Despite a volatile first half of the year marked by significant global events, including a new U.S. president, trade tensions, and conflicts, investors remained calm, and markets performed respectably. The S&P 500 and Nasdaq Composite reached fresh all-time highs, with the S&P 500 up about 5% year-to-date, while the Stoxx 600 in Europe rose 6.7%, and major Asian markets were mostly in positive territory. Key events included the White House claiming Canada "caved" on trade, China's factory activity unexpectedly expanding, and Elon Musk criticizing a Trump bill as "DEBT SLAVERY." Companies expected to benefit from higher NATO defense spending also saw potential gains.

Asia stock markets today: live updatesStock Chart IconStock Chart Icon

Asia-Pacific markets traded mixed on Tuesday as investors assessed record gains on Wall Street and the global impact of US President Donald Trump's tariff policies. Mainland China's CSI 300 added 0.18%, while Japan's Nikkei 225 fell 1.24% after hitting an 11-month high previously. South Korea's Kospi rose 0.58%, and Australia's S&P/ASX 200 ended flat. Indian benchmarks Nifty 50 and BSE Sensex were also flat. Hong Kong markets were closed for a public holiday. US stock futures fell in Asian hours after Wall Street's S&P 500 and Nasdaq Composite reached fresh all-time highs on Monday. Asian currencies mostly appreciated against the US dollar amid uncertainty over Trump's policies. Australian gold mining stocks rose on higher gold prices, while Chiba Kogyo Bank's shares surged over 25% on reports of business integration with Chiba Bank.

CNBC Daily Open: Keep calm and carry on, investors

Despite a tumultuous first half of the year marked by geopolitical tensions, trade disruptions, and significant global events, investors have largely remained calm, and markets have performed respectably, with the S&P 500 and Nasdaq Composite reaching fresh highs, up about 5% year to date, while the Stoxx 600 is up 6.7% and major Asian markets are in positive territory.

Stock market today: Live updates

U.S. equity futures fell early Tuesday after the S&P 500 notched another record close. Futures tied to the Dow Jones Industrial Average slipped 0.11%, S&P 500 futures declined 0.18%, and Nasdaq 100 futures lost 0.25%. The previous day, the S&P 500 advanced 0.52%, the Nasdaq Composite rose 0.47%, and the Dow climbed 0.63%. Canada's decision to walk back its digital services tax helped boost stocks, and traders are optimistic about potential trade deals. Goldman Sachs now expects the Fed to cut rates in September, rather than December, and is forecasting a terminal rate of 3% to 3.25%. Traders are looking ahead to the S&P Global Purchasing Managers' Index and the ISM manufacturing report for insights into the manufacturing sector.

European markets on July 1: Stoxx 600, FTSE, DAX, tariff deadline

European markets are expected to start positively, with the FTSE, DAX, CAC 40, and FTSE MIB projected to open higher. The European Central Bank's interest rate cut to 2% in June and comments from Belgian central bank chief Pierre Wunsch that inflation risks are tilted to the downside may be influencing the market. Investors are also assessing trade talks and tariffs as a US tariff deadline approaches, with US Treasury Secretary Scott Bessent stating that tariffs could "spring back" if trade negotiations fail. Key data releases on Tuesday include euro zone inflation data, German unemployment figures, and UK Nationwide house prices data, as well as earnings from Sodexo and Sainsbury's.

Tuesday’s big stock stories: What’s likely to move the market

Major US stock indexes hit new records on Monday, with the Nasdaq 100 up 7.9% in the first half of 2025, the S&P 500 up 5.5%, and the Dow Jones Industrial Average up 3.6%. The industrials sector is up 12% in 2025, while health care and consumer discretionary are down 2% and 4% year to date, respectively. Constellation Brands is set to report earnings on Tuesday, with its stock down 11.5% over the past three months. Top S&P 500 performers in 2025 include Palantir, up 80%, and NRG Energy, up 78%, while the worst performers include Deckers Outdoor, Enphase, and UnitedHealth, all down around 40%. Tesla is down 21% in 2025, marking its fifth consecutive losing day, and is 35% from its December high.