Equities mixed ahead of Fed decision - 7.5.2025

The Dollar strengthening has resumed currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.56% on Tuesday.

Both EUR/USD and GBP/USD accelerated their climbing on Tuesday while S&P Global upgraded Germany’s Composite PMI for April. Both Pound and euro are lower against the dollar currently. USD/JPY continued its sliding while AUD/USD continued its advancing on Tuesday with both the yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are up currently ahead of Federal Reserve decision at 20:00 CET with the yield on benchmark 10-year US notes down at 4.312%. Stock indexes ended lower on Tuesday recording daily returns in the range from -0.95% to -0.77% while data showed the overall trade deficit for the United States jumped 14 per cent to $140.5 billion for March, a record for a month.

European stock indexes futures are mixed currently after closing mixed on Tuesday with Germany’s DAX index paring losses after Friedrich Merz was elected as Germany’s chancellor in a second-round parliamentary vote. Asian indexes futures are mostly rising today with Hong Kong’s Hang Seng index leading losses amid reports US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet their Chinese counterparts for trade talks when they travel to Switzerland this week.

Brent is extending gains currently. Prices rose over 3% yesterday as European Commission proposed adding more individuals and over 100 vessels linked to Russia’s shadow fleet to its 17th package of sanctions against Moscow in response to Russia’s 2022 invasion of Ukraine. The Energy Information Administration (EIA) will release its US crude oil inventory data at 16:30 CET today. The US oil benchmark West Texas Intermediate (WTI) jumped 3.4% and is higher currently. Brent rose 3.2% to $62.15 a barrel on Tuesday.