Global Equities Climb as Dollar Struggles for Support

The US dollar steadied today after suffering deep losses in the previous session, falling to multiyear lows against the euro and sterling and to a decade low against the Swiss franc. Market sentiment was somewhat buoyed by reports of trade deals progressing, along with confirmed agreements involving China. Additional relief came from the United States securing an exemption from the OECD's Pillar 2 corporate tax reform, and the decision to abandon the so-called "revenge tax" under Section 899 of the budget proposal. There is also speculation that the postponement of reciprocal tariffs could be extended beyond the current July 9 deadline. Despite this stabilisation, the dollar has yet to gain any significant traction and remains near its recent lows.

Equity markets responded more optimistically. Most Asia Pacific indices moved higher, led by a gain of over 1% in Japanese stocks, while China, Hong Kong, and Australia lagged. In Europe, the Stoxx 600 rose close to 1%, with hopes of marking its first back-to-back advance in three weeks if momentum holds. US index futures posted moderate gains of around 0.2% to 0.3%. Benchmark government yields also inched higher. Japanese 10-year yields climbed to a weekly high near 1.43% with a two basis point increase. European yields edged up less than one basis point, enough to lift Germany’s 10-year Bund to a weekly high of approximately 2.57%. The US 10-year Treasury yield rose by about three basis points to 4.27%, though it remains roughly eight basis points lower on the week.

Meanwhile, gold prices slipped to a fresh monthly low around $3282, while oil markets stayed confined within familiar boundaries. August WTI continued to trade inside the ranges set earlier in the week, reflecting subdued momentum.