Global Markets:
- Asian Stock Markets : Nikkei up 0.26%, Shanghai Composite up 0.34%, Hang Seng down 0.64% ASX down 0.44%
- Commodities : Gold at $3301.35 (0.89%), Silver at $36.8 (0.19%), Brent Oil at $69.90 (-0.39%), WTI Oil at $68.18 (-0.3%)
- Rates : US 10-year yield at 4.416, UK 10-year yield at 4.632, Germany 10-year yield at 2.642
News & Data:
- (AUD) Cash Rate 3.85% to 3.60% expected
Markets Update:
Asia-Pacific markets were mixed on Wednesday as investors reacted to U.S. President Donald Trump’s latest tariff moves. Trump ruled out any extension on the Aug. 1 tariff deadline and announced a 50% tariff on copper imports, with more sector-specific levies expected soon. He also warned of tariffs as high as 200% on pharmaceutical exports into the U.S., though implementation would be delayed by a year to a year and a half.
According to Vishnu Varathan, head of Macro Research (Asia ex-Japan) at Mizuho Securities, the focus on these tariff deadlines is a distraction from broader economic risks. In a note released Wednesday, he called them an “unhelpful distraction,” diverting attention from more critical sector-specific tariffs that impact global industrial ecosystems.
Varathan warned that these targeted tariffs could affect different countries unevenly, depending on their specific trade deals with the U.S. He added that the threat of sectoral tariffs poses a “bait and switch” risk, undermining the confidence built by reciprocal agreements.
Looking ahead, Varathan highlighted the potential fallout if China retaliates, warning that markets may be underestimating this risk. “Asia, especially ASEAN economies, could feel a sharper squeeze as they remain deeply tied to both the U.S. and China,” he noted.
Upcoming Events:
- 08:00 PM GMT – USD Crude Oil Inventories
- 11:30 PM GMT – USD FOMC Meeting Minutes
