World stocks wavered as the U.S. reported higher-than-expected inflation for June, raising doubts about the Federal Reserve's rate-cut timeline. Asian markets dipped, while European shares showed resilience. The dollar strengthened against major currencies, and oil prices edged lower on demand concerns.
The European Union officially enacted additional tariffs of up to 38% on Chinese EV imports, citing unfair subsidies. China vowed retaliation, potentially targeting EU agriculture and aviation. Automakers like Tesla and BMW, which export from China to Europe, may face significant disruptions.
The yen weakened to ¥161 per USD, its lowest since 1987, despite intervention warnings from Tokyo. Analysts attribute the slide to the Bank of Japan's cautious rate hikes versus the Fed's tighter policy. Japanese exporters benefit, but rising import costs strain households.
India finalized a free-trade agreement with Mercosur (Brazil, Argentina, Paraguay, Uruguay), slashing tariffs on auto parts, chemicals, and textiles. The deal aims to diversify supply chains and boost India's exports to Latin America amid rising trade tensions with China.
Riyadh's Public Investment Fund (PIF) unveiled a $10 billion initiative to position Saudi Arabia as an AI hub, targeting chipmakers, data centers, and startups. The move challenges U.S. and Chinese dominance in the sector.
Boeing agreed to reacquire its key supplier, Spirit AeroSystems, to tighten quality control after the 737 MAX crises. The deal, partly financed by debt, sent Boeing shares down 4% over cost concerns.
The AfCFTA (African Continental Free Trade Area) reported a 22% increase in intra-African trade in Q2 2025, aided by new digital payment systems. Nigeria and South Africa led growth, though infrastructure gaps persist.
International Political Coflicts (U.S.-China tariffs, EU trade disputes) and central bank policies remain key market drivers. AI and green energy investments continue to surge globally.
Sources: Bloomberg, Reuters, Financial Times
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