Global markets saw U.S. and world stocks rise on Monday as the dollar and bond yields fell. Positive corporate earnings and optimism regarding tariffs’ minimal economic impact boosted risk appetite. U.S. stocks hit new highs, with Verizon gaining 4%. Treasury yields fell, the dollar dropped 0.6%, and gold rose 1.4% to a one-month high.

Despite uncertainties surrounding tariffs and trade deals, equity investors remain optimistic. Lower Treasury yields, a weaker dollar, and strong U.S. corporate earnings supported Monday’s gains. U.S. Commerce Secretary expressed confidence in securing a trade deal with the EU despite potential counter-measures.

President Trump’s threats of tariffs on imports have experts estimating a near 20% aggregate U.S. tariff rate, the highest since 1933. Despite the threats, investors are unfazed due to Trump’s history of retracting tariff decisions, potential deadline extensions, and differing final tariff rates.

Amidst Trump’s attacks on Federal Reserve Chair Jerome Powell, the issue of central bank independence is under scrutiny. Central bank independence is essential for financial market stability, although achieving complete independence from political influence is challenging. The U.S. scores lower in institutional independence compared to the ECB and PBOC.

Experts are concerned about threats to central bank independence. Trump’s verbal attacks on Powell for not cutting interest rates have raised alarm, with former Fed Chair Yellen likening Trump’s words to those of a leader in a “banana republic.” Despite potential chair changes, Fed independence remains intact.

Market movers for tomorrow include Japan’s reaction to the upper house election, RBA minutes, Taiwan exports data, UK public borrowing figures, BOE governor and UK Chancellor testimonies, and U.S. Q2 earnings reports. Stay informed with the Trading Day newsletter for daily market insights.

Read more at Yahoo Finance: Equity optimism hard to quell