Published by Global Banking & Finance Review®
Posted on July 18, 2025
4 min readLast updated: January 22, 2026
Add as preferred source on GoogleWall Street indices reached new highs, but Trump's proposed tariffs on European goods cast a shadow over the market's optimism.
By Jamie McGeever
ORLANDO, Florida (Reuters) -- TRADING DAY
Making sense of the forces driving global markets
By Jamie McGeever, Markets Columnist
I'd love to hear from you, so please reach out to me with comments at . You can also follow me at @ReutersJamie and @reutersjamie.bsky.social.
The S&P 500 and Nasdaq touched new highs on Friday before cooling off following a report that U.S. President Donald Trump is pushing for a minimum 15-20% tariff on goods from Europe.
But Wall Street and most global benchmark indices rose on the week, as upbeat U.S. economic data more than compensated for the heightened trade uncertainty and Trump ramping up his verbal attacks on Fed Chair Jerome Powell.
This Week's Key Market Moves
* The S&P 500, Nasdaq and MSCI All Country indices all hitrecord highs on Friday. * Investors bet big on Big Tech. S&P 500's technology indexrose 2% on the week, bringing post-Liberation Day gains to 55%. * Japan's yen fell to its weakest level since April 2Liberation Day, coming within 1 yen of 150.00 per dollar. * Bitcoin hit a new high above $123,000 but fell 1% on theweek, maybe not a huge shock after spiking 9% the week before. * Platinum extended its remarkable run, rising another 2% toa fresh 11-year high. It's up over 50% in two months.Yet another choppy and event-filled trading week ended on a more subdued note on Friday, with trade and the Trump administration's hefty tariffs on major trading partners again at the forefront of investors' minds.
Trump's call for a minimum 15-20% tariff on imports from the European Union, as reported by the Financial Times, is a reminder that global trade tensions are still alive and could yet hit growth and fuel inflation.
Elsewhere in the global trade war, Trump's deepening spat with Brazil will be worth monitoring next week, while Treasury Secretary Scott Bessent is in Japan this weekend.
Economists at ratings agency Fitch on Friday raised their projected effective U.S. tariff rate to 19.4% from 14.1%. There's still a great deal of uncertainty over who will end up eating the tariffs, but levies of that magnitude will not be cost-free.
As well as trade, investors' focus next week will turn to U.S. corporate earnings, with more than a fifth of the S&P 500 companies reporting, and the European Central Bank's policy decision.
Chart of the Week
Following Friday's latest Japanese inflation data and ahead of Sunday's potentially crucial upper house election, it's worth reminding ourselves of how much of an outlier Japanese interest rates are in real terms.
The Bank of Japan's inflation-adjusted policy rate is almost -3%. The BOJ wants to continue raising rates, but it's not so simple.
Sunday's election could pave the way for a wave of public spending and tax cuts, putting the developed world's worst public finances under even more strain and weakening the yen further.
Yet long bond yields are already the highest on record. Raising rates and driving bond yields even higher could have a negative impact on growth. Maybe a very serious impact.
Policymakers are in a bind.
Here are some of the best things I read this week:
1. America's Budget Blinders and Blunders - James K.Galbraith 2. For the euro to go global, the EU must match itsambition with real action - Cinzia Alcidi 3. Britain's billionaire tax problem - Will Dunn 4. Who benefits from the dollar's dominance? - Mona Ali 5. Trump's Tariff Threat Against Brazil Might PoliticallyBoost Lula - Andre PagliariniWhat could move markets on Monday?
* Japanese market reaction to upper house election * Taiwan CPI inflation (June) * New Zealand CPI inflation (Q2) * Canada PPI inflation (June)Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
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(Writing by Jamie McGeever; Editing by Nia Williams)
President Trump is pushing for a minimum 15-20% tariff on goods from Europe, highlighting ongoing global trade tensions.
Despite the tariff concerns, Wall Street and most global benchmark indices rose during the week, driven by upbeat U.S. economic data.
Investors will focus on U.S. corporate earnings, with over a fifth of the S&P 500 companies reporting, as well as the European Central Bank's policy decision.
Fitch has raised its projected effective U.S. tariff rate to 19.4% from 14.1%, indicating increased uncertainty regarding the impact of tariffs.
The Bank of Japan is struggling to raise rates from almost -3% due to the potential negative impact on growth and already high long bond yields.
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