Global Highlights This Week: US Q2 Earnings and CPI Take Center Stage, Trump to Announce Major Russia Statement
Last week, the S&P 500 and Nasdaq Composite hit new highs, but all three major U.S. indices ended with weekly losses amid Trump’s latest tariff offensive.
On Thursday, Trump announced a 35% tariff on Canadian imports effective August 1, citing fentanyl inflows and “unfair trade practices.” He plans a uniform 15% or 20% tariff on nearly all untaxed trade partners.
Art Hogan noted that trade rhetoric heated up last week without initial market impact, “but severing ties overnight with a key partner like Canada was deeper than expected.”
On Saturday, Trump sent letters to Mexico and the EU via social media, announcing a 30% tariff on their exports to the U.S. starting August 1.
Mike Wilson, Chief U.S. Equity Strategist and CIO at Morgan Stanley, warned that investors are growing weary of this “tariff drama,” predicting its negative impact could soon hit businesses and markets.
Germany’s Federal Economic Minister Robert Habeck expressed hope for a “pragmatic negotiation outcome” despite the escalation, noting tariffs would harm European exporters and “significantly affect the Atlantic economy and consumers.”
This Tuesday, the U.S. will release June CPI data, with markets expecting the annual rate to rise from May’s 2.4% to 2.7% and core CPI to rebound from 2.8% to 3%, as companies pass tariff-related import costs to consumers. Wednesday brings PPI data and the Fed’s Beige Book.
Several Fed officials, including Governors Bowman and Barr, and New York Fed President Williams—key voting members on monetary policy—will speak, along with Boston Fed’s Collins and Dallas Fed’s Logan.
Trump hinted earlier last week of a “major statement” on Russia for Monday (July 14), with no details disclosed. Kremlin spokesman Peskov said Russia awaits the statement to understand Trump’s intent.
This week, the U.S. Q2 earnings season begins, with JPMorgan, Citi, Wells Fargo, and BlackRock reporting pre-market Tuesday. Wednesday and Thursday feature ASML and TSMC earnings, the latter’s optimistic April guidance having sparked a chip stock rally.
Overview of Key Overseas Economic Events This Week :
Monday: Trump to make “major statement” on Russia
Tuesday: Boston Fed’s Collins speaks, Eurozone July ZEW Economic Sentiment, U.S. June unadjusted CPI, NY Fed July Manufacturing Index, Fed Governor Bowman’s welcome at Fed event
Wednesday: Fed Governor Barr speaks, Boston Fed’s Collins, BOE Governor Bailey, Dallas Fed’s Logan on U.S. economy, U.S. June PPI, industrial production, Cleveland Fed’s Mester
Thursday: Fed releases Beige Book, NY Fed’s Williams on economy and policy, Eurozone June CPI final, U.S. weekly jobless claims, June retail sales, Philly Fed Index, import/export prices
Friday: Japan June core CPI, U.S. June housing starts, Michigan July consumer sentiment