On July 8, 2025, global equity markets showed cautious stability amid rising U.S. trade tensions. This followed the announcement of new tariffs on imports from 14 countries, including Japan, South Korea, Malaysia, and Indonesia, ranging from 25% to 40%, effective August 1. The delay in implementation provided some market relief.
The Reserve Bank of Australia (RBA) held its cash rate steady at 3.85%, defying expectations. The RBA's decision was influenced by timing, with Governor Michele Bullock emphasizing the need to assess the full Q2 Consumer Price Index (CPI) report. The Australian Dollar saw significant gains in currency markets.
In Europe, the FTSE 100 rose 0.07%, the DAX increased 0.07%, and the CAC 40 decreased 0.33%. In Asia, the Nikkei rose 0.26%, and the Hong Kong Hang Seng Index increased 1.09%. The RBA's decision reflects cautious optimism, with a focus on inflation and global trade policy uncertainty.