Markets are focused on U.S. interest rates and trade deals, uncertainty prevails

From Yahoo Finance: 2025-07-02 00:31:00

Global markets remained focused on U.S. interest rates and trade deals despite Senate passing Trump’s tax bill. Trump’s pressure on the Fed to cut rates raised concerns about central bank independence. Powell emphasized caution at a conference in Portugal. Uncertainty prevails as investors await nonfarm payrolls data and July 9 tariff deadline.

European stocks poised for a slightly higher open after mixed Asian session. Trump’s tax bill heads to House for final approval, adding to U.S. debt. Countries rush to secure trade deals before July 9 tariff deadline. First half of the year marked by dollar selling and euro’s 14% gain, raising questions about reserve currency status.

Euro’s strong performance in 2025 sparks debate over dollar’s dominance. Central bankers at Sintra conference doubt immediate challenge to dollar’s status. ECB President Lagarde acknowledges challenges but uncertainty remains. Key events to watch on Wednesday include Euro zone unemployment rate and trade deal updates. Stay informed with Tariff Watch for the latest market-moving headlines.



Read more at Yahoo Finance: Markets sit tight for trade progress