Global stock markets were mixed on Tuesday, July 29, 2025, as investor optimism over recent U.S. trade agreements began to cool, with attention now shifting to key earnings reports, upcoming economic data, and the Federal Reserve\’s next policy decision.
Although U.S. President Donald Trump’s weekend deal with the European Union was widely seen as a better alternative to a full-blown trade war, analysts pointed out that the agreement still imposed a blanket 15% tariff on EU and Japanese imports, higher than previous levels and with no equivalent tariffs on American goods.
“The 15 per cent blanket levy on EU and Japanese imports may have helped markets sidestep a cliff, but it’s no free pass,” said Stephen Innes of SPI Asset Management. “With the average effective U.S. tariff rate now sitting at 18.2 per cent… the barrier to global trade remains significant. The higher tail risk didn’t detonate, but its potential impact on the global economy hasn’t disappeared either.”
The pact came just a week after a similar arrangement was reached with Japan. However, both deals have sparked fresh anxiety among manufacturers, particularly in the auto industry, about long-term economic implications.
Ray Attrill of National Australia Bank added, “It hasn’t taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near-term (through 2025) implications for eurozone growth are concerned.”
Investors are also closely watching U.S. negotiations with India and South Korea, as well as a two-day dialogue between American and Chinese officials in Stockholm that ended Monday with no concrete announcements. Hopes remain that both countries might extend their 90-day trade truce, which expires August 12, 2025.
Meanwhile, a relatively calm trading session on Wall Street still saw the S&P 500 and Nasdaq hit fresh records. But across Asia, performances were mixed: Tokyo, Hong Kong, Singapore, Manila, and Taipei all closed lower, while Shanghai, Seoul, Sydney, Wellington, Bangkok, and Jakarta posted gains. European markets opened slightly higher, with London, Paris, and Frankfurt inching up.
On the currency front, the euro held onto losses sparked by eurozone growth concerns, while the dollar was slightly weaker against the yen. Oil prices extended gains after Trump issued an ultimatum to Russia to end its war in Ukraine by August 7 or 9, threatening sanctions on nations still buying Moscow’s crude.
All eyes are now on the Federal Reserve’s post-meeting statement and remarks by Chairman Jerome Powell, with markets hungry for any clues about interest rate policy in the second half of 2025. President Trump has continued to pressure the Fed to slash rates, even as inflation remains persistently high.
Investors are also gearing up for a flood of quarterly earnings from tech giants Apple, Microsoft, Meta, and Amazon, along with new figures on U.S. GDP growth and job creation, data that could heavily influence the Fed’s next move.
Key Market Figures (as of 0715 GMT)
- Tokyo – Nikkei 225: 0.8% at 40,674.55 (close)
- Hong Kong – Hang Seng Index: 0.6% at 25,405.39
- Shanghai – Composite: 0.3% at 3,609.71 (close)
- London – FTSE 100: 0.1% at 9,091.97
- Euro/Dollar: $1.1555 from $1.1597
- Pound/Dollar: $1.3329 from $1.3356
- Dollar/Yen: 148.39 yen from 148.52
- Euro/Pound: 86.69p from 86.80p
- WTI Crude: Flat at $66.72 per barrel
- Brent Crude: 0.1% at $70.09 per barrel
- New York – Dow Jones: 0.1% at 44,837.56 (close)
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