Small investor jitters around trade tensions remain, with the S&P 500 still holding just below last week’s record. Brazil is the latest nation to be hit by threats of significantly higher levies -Trump has announced a 50% tariff on goods from Brazil and called for charges against former President Jair Bolsonaro to be dropped in his letter to the country.
The Nikkei 225 Index fell 0.57% to below 39,600, as negotiations between the US and Japan show no further progress. Japan’s Producer Price Index increased by 2.9% year-on-year in June, matching market expectations.
In Australia, the ASX 200 Index rose 0.7% this morning to 8,598, approaching record highs, driven by a rally in mining and gold stocks amid stronger commodity prices. Visitor arrivals to New Zealand rose by 6.1% year-on-year to 190,593 in May 2025.
The Hang Seng Index rose 0.2%, approaching 24,000 and recovering from yesterday’s decline. In China, the CSI 300 Index gained 0.4%. Gold has also risen this morning, extending gains from the previous session and reaching around $3,320 per ounce.
Yesterday’s Fed meeting highlighted a split committee over the future impact of tariffs on inflation, leading to uncertainty around the interest rate path. Some believe the tariffs will cause only a one-time increase, while others see more persistent effects. A narrow majority (10 of 19 officials) now expects two or more rate cuts by year-end, in line with current market pricing.
