Markets were mixed as investors digested new tariff announcements and central bank decisions. US equities were flat amid uncertainty over trade negotiations and political developments. European markets climbed on optimism around potential exemptions from US tariffs and sectoral gains, while Australian investors were surprised by an unchanged interest rate decision.
US markets flat, trade uncertainty mounts
US markets paused amid tariff confusion. The DOW dipped -0.3%, the S&P 500 was flat, and the NASDAQ edged up +0.1%. Uncertainty followed President Trump’s announcement of tariffs on 14 countries, including South Korea and Japan, effective 1 August. The move opens a three-week window for negotiating improved trade terms. Trump has hinted at delays for countries engaged in talks, and a call between US Commerce Secretary Howard Lutnick and Japan’s trade negotiator Ryosei Akazawa offered some reassurance. Minutes from the Federal Reserve’s June meeting are due Wednesday. Solar stocks fell after Trump proposed repealing or limiting clean energy tax credits in the One Big Beautiful Bill Act. SunRun slid -12.0%, Enphase Energy dropped -3.2%, and SolarEdge Technologies lost -3.8%. In rates, the US two-year yield held at 3.91%, while the 10-year yield rose +3bp to 4.42%.
European equities climb as negotiations prove fruitful
European indices climbed on Tuesday. London’s FTSE 100 added +0.5%, while Europe’s Stoxx 600 rose +0.4% to a three-week high, as investors noted that President Trump’s tariff actions appeared to exclude Europe. The EU is reportedly not facing higher rates and is even seeking an exemption from the US baseline levy through negotiations. German steelmaker Salzglitter surged +20.0% after Germany approved its Secure 500 product for military use. The energy sector gained +1.1% as crude prices shifted, while healthcare added +0.8% as sector leader Novo Nordisk climbed +2.0%. Swedish investment firm Kinnevik rose +8.5% after reporting 2% quarterly growth in second-quarter net asset value.
Asian markets strong, Australian investors surprised by unchanged interest rates
Australian equities were flat on Thursday as the ASX 200 closed nearly unchanged. The Reserve Bank of Australia’s decision to hold rates at 3.85% surprised investors expecting a cut. Officials said they needed more inflation data before easing. Core inflation has slipped back inside the target range amid weak growth and low consumer spending, but labour market strength likely kept the RBA on hold. Asian equities rose as Japanese Prime Minister Shigeru Ishiba reaffirmed plans to negotiate tariffs, with Japanese and US officials reportedly holding a 40-minute trade call. CSI 300 and Shanghai Composite gained +0.8% and +0.7% respectively. Other Asian indices also advanced: Hong Kong’s Hang Seng (+1.1%), Korea’s Kospi (+1.8%), and Japan’s Nikkei 225 (+0.3%). In New Zealand, the NZX 50 added +0.7%. Investors await the RBNZ’s OCR decision this afternoon.
Commodities mixed
WTI crude rose +0.7% to US$68.42/bbl, gold fell -0.9% to US$3,305.79/oz, and iron ore was flat at US$95.22/MT.
NZ Headlines
The Accident Compensation Corporation has acquired NZ$6.7m of Tourism Holdings stock, increasing its stake in the campervan operator by +1.35% to 9.28%. This follows a NZ$9.95m selldown to Australian private equity firm BGH Capital at NZ$2.25 per share in mid-June.
Wellington Combined Taxis has been nearly sold out of administration for NZ$2m to Auckland Co-operative Taxi Society, after most shareholders, including drivers, approved the sale at a 30 June meeting.
Today's Events
- RBNZ Official Cash Rate Decision
- China CPI