Global markets are rising today, supported by optimism about potential US bilateral trade deals, expected interest rate cuts in Europe, and strong signs of economic resilience and technology demand in the US.
… This move comes with a deadline for global trading partners to submit their “best offers” to avoid additional tariffs scheduled to take effect in early July.
Musk Harshly Criticizes Tax Bill:
Elon Musk directly intervened in politics on Tuesday, calling Trump’s tax and spending proposal a “disgusting mess,” saying it would worsen the federal budget deficit.
Emergency Powers on the Agenda:
The Trump administration is preparing to use emergency powers under the Defense Production Act to increase domestic production of critical minerals and weapons. This information was learned from internal documents seen by media outlets.
Capital Flow Risks:
Many global investors are still heavily focused on US assets—this imbalance could create volatility in US markets if corrected. While “American exceptionalism” is a subject of debate, some experts suggest that capital may shift to emerging Asia rather than Europe when valuation metrics are considered.
Market Outlook:
Global Rally:
The MSCI All Countries World Index reached a new record high on Wednesday. The index has risen 23% since the first wave of US tariffs (April 7). Its return since the beginning of the year is almost 6%.
US Stocks:
Although Wall Street has lagged behind the global rally, the S&P 500 has turned positive again and the Nasdaq is nearing break-even for 2025. Futures are pointing to a strong opening today.
Bonds and Currency:
US Treasury yields have fallen, with the 30-year yield nearing 5%. The dollar weakened, while the euro briefly rose above $1.14.
