The S&P 500 climbed to a new record on Thursday, while European markets ended the day mixed, with the Euro Stoxx 50 edging lower. Asian equities were also trading mixed on Friday, with Chinese stocks advancing on stimulus hopes. Markets were largely ignoring ongoing US tariff disputes, even as the US slapped a 35% tariff on Canada, one of its largest trading partners. Meanwhile, bitcoin surged to yet another all-time high on Friday, driven by robust institutional demand and favourable US policy developments.
The S&P 500 reached a record high on Thursday, rising 0.3% to close at 6280.46 points, while the Dow Jones Industrial gained 0.4%, nearing the 45,000-point mark. In contrast, the Nasdaq-100 declined slightly by 0.2% after hitting a record the previous day. Tech stocks showed mixed performance, with Tesla surging 4.7% on plans to expand its robotaxi service, while Meta dropped 0.8%. Outside the tech sector, WK Kellogg shares soared 30.6% following Ferrero's announcement to acquire its US cereal business for USD 3.1 billion. Some support came from labour market data with the US Labor Department reporting on Thursday that initial jobless claims declined by 5000 to a seasonally adjusted 227,000 for the week ending 4 July, defying market expectations of an increase. Despite signs of a cooling labour market, employers appear to be retaining workers, as highlighted by last week’s unemployment rate drop to 4.1%, driven by a shrinking workforce.
US President Donald Trump announced on Thursday a 35% tariff on Canadian imports, effective 1 August, citing fentanyl concerns and Canadian retaliatory tariffs as key reasons. Trump warned of potential increases if Ottawa imposes further countermeasures. Canadian Prime Minister Mark Carney reaffirmed his government’s commitment to defending its businesses and workers while continuing trade negotiations. The tariffs, separate from existing sectoral levies, come amidst rising US-Canada trade tensions, with the US trade deficit with Canada growing 9.8% year-on-year in the first five months of 2025.
Chinese stock markets advanced on Friday, driven by expectations of further stimulus measures and supported by middling inflation data earlier this week. Hong Kong’s Hang Seng Index surged 1.8%, while mainland China’s CSI 300 advanced 0.7%. Elsewhere in the Asia-Pacific region, stocks were mostly down. Japan’s Nikkei 225 was little changed, losing 0.1%, while Korea’s Kospi fell 0.3%. Australia’s S&P/ASX 200 slipped 0.1%.
Germany’s inflation rate, measured by the consumer price index, slowed to 2.0% in June 2025, the lowest level since October 2024. This marks a slight decline from 2.1% recorded in both May and April, driven by falling energy prices (-3.5%) and slower food price growth (+2.0%). However, service prices continued to rise significantly, increasing by 3.3% year-on-year, with notable gains in transport and social services. Month-on-month, consumer prices remained stable, reflecting mixed trends across sectors. European stock indices ended Thursday with mixed results. The Euro Stoxx 50 edged down 0.1%, while Germany’s DAX dropped 0.4% to 24,456.81 points. France’s CAC 40, however, gained 0.3%, and the Swiss Market Index climbed 1%.
Bitcoin surged to a record high above USD 118,000 on Friday, driven by strong institutional demand and supportive US policies under the Trump administration. The cryptocurrency has gained over 24% this year, bolstered by measures such as a strategic cryptocurrency reserve and the appointment of crypto-friendly US officials. Ether, the second-largest cryptocurrency by market capitalisation, also climbed nearly 5%, hitting a five-month high above USD 3000, reflecting broader optimism in the digital asset market.
Corporate news in focus: There is no major corporate news scheduled today.
Economic data in focus: UK gross domestic product (08:00), UK manufacturing production (08:00), UK trade balance (08:00), French Consumer Price Index (08:45), Canadian unemployment rate (14:30).
Global economic and market trends at a glance
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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.