Global financial markets are exhibiting a mixed performance as traders digest a range of economic data, policy announcements, and ongoing trade developments. While Asian currencies largely strengthened, Japanese government bond yields continued their ascent, and European stock futures pointed to a subdued open.
Currency Markets React to Tariff Developments and Local Rates
The British Pound (GBP) remained steady against the US Dollar (USD) near the 1.3500 mark, though it continues to show fragility close to multi-week lows. This comes as the US Dollar (USD) has broadly weakened, with factors such as easing inflationary pressures in the US and concerns about the US fiscal condition contributing to its decline. However, a weaker global risk tone could limit further USD losses and cap the GBP/USD pair.
Meanwhile, Asian currencies mostly strengthened against the dollar in the morning session as traders assessed recent tariff developments. The US is set to impose a 30% tariff on goods from the EU and Mexico effective August 1, a move that could be disruptive to financial markets and the global economy if retaliation escalates. Despite these concerns, Asian currencies generally appreciated modestly against the USD in the first quarter of 2025, influenced by a re-rating in Europe. Taiwan's overnight interbank rate opened at 0.805%, matching the previous session.
Japanese Bond Yields Continue Upward Trend
Japanese Government Bond (JGB) yields saw a notable rise, with the 10-year JGB yield increasing 5 basis points (bps) to 1.55%. This marks its highest point since May 23, with an earlier report indicating a jump to 1.545%. The upward pressure on JGB yields is partly attributed to rising US Treasury yields and expectations of further Bank of Japan (BOJ) policy tightening. The 10-year JGB yield has now reached levels close to the highs of 2025, and the 30-year JGB yield has exceeded all-time highs.
European Stock Futures Mixed Ahead of Trading Session
European stock futures were mixed, indicating a cautious start to the trading day. The EuroStoxx 50 dropped 0.3%, the DAX fell 0.4%, while the FTSE remained unchanged. This follows earlier reports of declines in European markets amidst growing concerns about a potential global trade war and its impact on economic growth.
Singapore's Economy Shows Robust Q2 Growth; Australia Focuses on Steel Decarbonization
Preliminary figures indicate that Singapore’s economy grew by a robust 4.3% in the second quarter of 2025 on a year-on-year basis, surpassing expectations. This growth was driven by resilient manufacturing and electronics exports, despite tariff-related uncertainties. On a quarter-on-quarter seasonally adjusted basis, the economy expanded 1.4%, rebounding from a contraction in the previous quarter.
In Australia, Prime Minister Anthony Albanese has pledged backing for industry-led moves to decarbonize the steel sector. This initiative is part of a broader plan to invest in lower-emissions metal technologies and ensure Australia's metals industry remains globally competitive. Albanese also called for a joint effort with China to address global steel overcapacity, highlighting the interconnectedness of international trade and industrial policy.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.