Market volatility intensifies due to geopolitical tensions and tariff concerns, with major stock indices down

Yesterday’s lack of economic calendar releases led to a relatively calm session, but geopolitical turmoil was still poised to move the market. The upcoming July 9th Trump deadline has been overlooked, with markets experiencing high levels of greed due to recent events. Trump tariffs seem more real than ever, with threats of 25% tariffs on imports from Japan causing USD/JPY to rise 1.15%. Energy products are also on the rise due to increased tensions in Russia and Ukraine. Stock indices have taken a hit, with major US indices down between 0.90% and 1.10% due to tariff fears.

Volatility remained high in financial markets despite the lack of economic data releases. Assets gapped on their weekly open, reflecting market hangover from past trading weeks. The Swiss Franc is the strongest currency, while stock indices retraced significantly, oil prices rose, and US bonds lagged. Analysis on oil performance is forthcoming. The US Dollar remains strong against major currencies, with the British Pound the biggest loser at over 1.10% against the USD.

Today’s market is expected to be as volatile as yesterday. Two central bank rate decisions are anticipated, with the RBA expected to cut by 25 bps and the RBNZ expected to remain unchanged. Other economic releases include the Canadian Ivey PMI data and inflation data from China. Stay tuned for more updates and safe trades!

Read more at Investing.com: Market Volatility Intensifies Amid Geopolitical Tensions and Tariff Concerns