Asian Pacific markets mixed

US markets brushed off early weakness yesterday morning to finish modestly higher across the board. Equity markets continue to show resilience despite President Trump's fresh tariff threats. His latest announcement was 30% tariffs on US imports from the European Union and Mexico, although autos are excluded.

The Dow Jones Industrial Average closed 0.2% higher, while the S&P 500 gained 0.1%. The Nasdaq Composite climbed 0.3% while the Russell 2000 added 0.7%. The Russell is still around 9% adrift of its all-time high, while the other three majors all trade at, or within a few points of, their respective records.

Source: TN Trader

US stock index futures were firmer in early trade on Tuesday. Tech stocks led the gains, with exceptional strength across chipmakers as NVIDIA added 4%, taking the stock to yet another all-time high.

The gains come ahead of a slate of corporate earnings and key macroeconomic data due later in the day. The latest CPI update is due at 13:30 BST, with earnings from some major banks including Citigroup, JP Morgan and Wells Fargo.

European stock indices pushed higher in early trade this morning. Yesterday, the UK’s FTSE 100 closed above 9,000 for the first time but has pulled back a touch on profit-taking.

Source: TN Trader

Investor sentiment remains fragile as structural economic concerns persist. GDP is flatlining, investment remains sluggish, and public debt has ballooned to nearly 100% of GDP. All eyes will be on Chancellor Rachel Reeves’ Mansion House address this evening, which is seen as a pivotal moment for laying out her growth strategy and policy priorities.

Meanwhile, the German DAX was a touch firmer in early trade and remains within sight of Thursday’s all-time high.  The upbeat tone comes despite continued concerns over transatlantic trade tensions, with President Trump’s 30% tariff threat on EU imports still front of mind.

The European Union (EU) is scrambling to secure a deal before the 1st of August deadline. But investors were cheered following reports that the EU would not be launching retaliatory measures as the economic group remains convinced that a deal can be agreed ahead of the deadline.

Currency markets were subdued in early Tuesday trade. Most major pairs showed only modest moves as traders held their positions ahead of today’s US inflation update, the start of the second quarter earnings season and a busy lineup of Federal Reserve speakers. The US dollar was a touch softer overnight.

The Dollar Index pulled back from a near three-week high hit yesterday, in what looks like a mild bout of profit taking. This follows a slow but steady push higher for the Index since the beginning of the month. This was when it broke below 96.00 to hit a multi-year low.

The rise in the US dollar this month has put the Japanese yen under pressure, with USD/JPY approaching the 148.00 mark – an important technical level. Should this threshold give way, it could spark accelerated yen selling, particularly as broader market risk appetite remains intact, lessening demand for the yen, which is typically considered a safe-haven.

Source: TN Trader

The euro and sterling were relatively steady, with traders waiting for a fresh direction from US economic signals or progress in EU-US trade discussions.

Source: TN Trader

Precious metals gained ground overnight, with both gold and silver posting decent advances. Gold extended its move off recent lows, trading modestly higher as dollar softness offered some relief. Gold appears to have found support around $3,340 ahead of today’s CPI release. But more broadly, it continues to consolidate in a relatively narrow trading range while the daily MACD flatlines around the neutral level.

Source: TN Trader

Silver has also managed to steady at higher levels following its recent push higher. At the end of last week, silver rallied sharply in a move which took it above $38 per ounce. It added to those gains in early trade yesterday, briefly breaking above $39 to hit its highest level since September 2011. It has now pulled back a touch but has managed to hold above $38 for now.

Source: TN Trader

Yesterday, oil was higher initially, with prices rallying into the European lunchtime session. This saw front-month WTI trade up to $68.50, a three-week high. But trade then turned after President Trump announced a 50-day deadline for Russia to end its war with Ukraine.

A failure to do so would lead to the US push for sanctions, not just on Russia, but on all buyers of its oil. Crude pulled back, and the sell-off continued this morning. But WTI found support around $65.50 earlier in today’s session, and there’s evidence of some buying creeping back in.

Despite this, the daily MACD continues to hold around the neutral region, so offers no clues over the short-term direction.

Source: TN Trader

Natural Gas prices drifted lower overnight as the market remained stuck within its broader 3–4 btu trading range. Despite occasional bursts of volatility, the overall tone has been directionless, with neither supply constraints nor demand surges providing a clear catalyst.

With weather forecasts currently pointing to relatively stable conditions and no fresh disruptions on the horizon, traders are hesitant to commit to new directional bets. For now, gas remains trapped in a wide consolidation band, with short-term price action likely dictated by technical factors rather than fundamentals.

Cryptocurrency markets pulled back from yesterday’s highs with Bitcoin falling 2.5% overnight to trade around $117,000. The move comes after a strong start to the week for digital assets, which rallied alongside broader risk assets. The retreat appears to be driven by profit-taking rather than any shift in broader sentiment.

Other tokens also followed Bitcoin down, although the overall tone in crypto markets remains constructive. Still, with Bitcoin once again failing to break cleanly and then hold above the $118–120,000 region, traders may become cautious about chasing the upside.

The VIX dropped below 17.00 in overnight trade, underscoring the market’s lack of concern around recent tariff headlines and geopolitical tensions. Even as President Trump renewed his tariff threats - targeting the EU and Mexico - volatility gauges remained low, reflecting investor confidence that the broader bull trend is intact.

The move also highlights the extent to which markets are discounting near-term policy and political risks, at least for now. While volatility could return quickly should inflation data or earnings disappoint, the current mood suggests investors are still in a buy-the-dip mentality, with few signs of panic beneath the surface.

US equity markets remain remarkably resilient, brushing aside geopolitical tensions and tariff threats. With all major indices hovering at or around record highs, the question now is whether this rally still has sufficient upside momentum to keep going significantly higher.

Today’s inflation data and earnings reports could be the next real test. If CPI prints cooler than expected and bank earnings impress, the rally may extend. But any miss could spark a reassessment.