1) Global Stock Markets
Major indices retreated: the Dow fell ~1% (~279 pts), S&P 500 dropped 0.3% (~21 pts) to 6,259.8, and the Nasdaqslipped ~0.1% to 20,585.5. The Russell 2000 led losses for the week with a 1.3% decline . Still, YTD, these benchmarks remain ahead: +6.4% (S&P), +6.6% (Nasdaq), +4.3% (Dow) .
Europe
Despite a weaker closing on Friday, pressured by weak UK GDP and a potential tariff letter from Trump, European equities were up 1.8% for the week with the EURO Stoxx 50 closing at 5383.48.
China
Reactions were muted: the Shanghai Composite showed modest weekly gains (+1.1%), as markets digested mixed GDP/retail data and anticipated further stimulus .
2) Government Bonds – Week Ending July 11, 2025
US treasury yields climbed, especially on long-dated paper: 10‑yr yields breaching 4.4%. European sovereign bonds (e.g., German Bunds) sold off in tandem too.
3) Key Market-Moving Events
- U.S. Tariff Escalation: President Trump announced a 35% tariff on Canadian imports (effective Aug 1), potential 15–20% “universal” tariffs, plus threat of 50% on copper and duties on pharma.
- Impact: Stocks and bonds slipped in tandem amid trade jitters; small-caps led losses; DAX, CAC, FTSE pulled back; some safe‑haven commodities (gold, bitcoin) rallied.
- Chinese Data & Stimulus Hopes: Slower-than-expected retail sales and steady GDP prompted expectations of further fiscal or monetary easing .
- Corporate Earnings & Tech Surge: Tech giants like Nvidia surged (now ~$4 trillion market cap), keeping indices afloat despite broader weakness; earnings front-loaded next week (e.g., JPMorgan) .
4) Focus: Market Complacency & Sentiment
VIX: Remains subdued: trading in the 15–18 range, under its historical norm, but higher than the lows reached in 2024.