US and European stock futures dropped at the start of the week after President Donald Trump announced a 30% tariff on goods from the EU and Mexico.
fell 0.4%, and European stock futures dipped 0.6%. Meanwhile, Asian stocks stayed mostly flat, with small gains in Hong Kong and China.
President Trump’s new tariff threats are challenging the market’s strength after he increased trade measures on countries like Canada, Brazil, and Algeria last week. Despite warnings, investors seem to expect Trump to back down, as he has done before. This confidence helped the and MSCI All Country World Index hit record highs this month.
The EU had been working on a deal with the U.S. to avoid higher tariffs, but Trump’s latest move has dampened optimism in Brussels. However, he hinted at possible adjustments. The EU is now planning to work more closely with other countries affected by Trump’s tariffs, according to sources.
China Exports Beat Forecasts Ahead of Trump’s Latest Tariff Deadline
China’s exports picked up in June as companies hurried to fulfill orders during a temporary tariff truce between Beijing and Washington. Shipments to Southeast Asian transit hubs were especially strong ahead of next month’s deadline.
China’s exports grew by 5.8% in June 2025, reaching $325.2 billion. This was slightly better than the expected 5% rise and faster than May’s 4.8% growth. The increase came as tariff pressures eased temporarily before the August deadline.
Rare-earth exports jumped 32% from May, likely due to agreements made in June to ease restrictions and restore global supply.
Last month, the U.S. and China signed deals to reopen rare-earth trade after China’s export controls in April disrupted supply chains and caused some auto factories to shut down.
Source: LSEG
European Open
European stocks dropped on Monday, led by carmakers. The index fell 0.6% to 544.3 points, while most regional indexes also declined. However, the UK’s rose 0.2%.
Adding to trade tensions, Italy’s Foreign Minister Antonio Tajani said the EU has prepared $24.5 billion worth of tariffs on U.S. goods if no deal is reached.
In the market, European car stocks fell 1.4%, and the retail sector dropped 1%.
On the bright side, AstraZeneca (NASDAQ:) shares rose 1.9% after announcing that its drug Baxdrostat successfully met key goals in a study for patients with hard-to-treat high blood pressure.
On the FX Front, the dropped to a three-week low on Monday, while the gained slightly, benefiting from tariff uncertainty though it’s unclear if this will continue.
The dollar rose 0.28% against the to 18.6763.
Other Currencies Saw Mixed Movements:
The fell 0.15% to 1.3470.
The rose slightly to 147.31 per dollar.
The dropped 0.12% to 0.6566.
The slid 0.37% to 0.5987.
Outside of tariffs, Trump said on Sunday it would be “great” if Federal Reserve Chair Jerome Powell stepped down, again pressuring the Fed to lower .
Traders are waiting for June inflation data, due Tuesday, which could give clues about future U.S. rate cuts. Markets expect the Fed to lower rates by over 50 basis points by December.
Currency Power Balance
Source: OANDA Labs
Looking at commodities, edged higher this morning and trades above the 200-day MA..
prices have been mixed since the market opened last night with choppy price action a sign of the uncertainty at present.
Economic Data Releases and Final Thoughts
Looking at the economic calendar, it is a quiet start to what is expected to be a busy week from a data perspective.
ECB policymakers will be speaking today which is the highlight before Tuesday’s US release which will be followed by inflation releases from Canada, UK and Japan later in the week.
Earnings season also gets underway this week with some heavyweights reporting on their Q2 performance and outlook for the rest of the year. Add to this the ongoing tariff and trade developments and markets could be set for a volatile week.
MarketPulse Economic Calendar.
Chart of the Day – Bitcoin (BTC/USD)
From a technical standpoint, has been on a tear printing fresh all-time highs on a regular basis.
Overnight, the world’s largest cryptocurrency hit a fresh all-time high just above the $123k mark.
There is a slight pullback this morning down to the $122k but the rally does not appear to be over. There is a possibility of a short-term pullback should market participants indulge in some profit taking but demand remains strong.
Institutional demand spiked over the last two weeks which helped Bitcoin breakout following a period of consolidation.
The rally overnight has now made Bitcoin the 5th largest asset globally (by market cap), surpassing Amazon (NASDAQ:).
Technical Analysis is a challenge as we have no historical price data to analyze but i will be monitoring whole numbers and psychological levels as well as the RSI for potential moves.
Bitcoin (BTC/USD) Daily Chart, July 14. 2025
Source: TradingView.com
Support
- 117500
- 112000
- 109000 (Bear flag retest)
Resistance
