Stocks rebound on trade optimism - 23.7.2025

The Dollar weakening has halted 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, fell 0.6% on Tuesday.

Both EUR/USD and GBP/USD continued their climbing yesterday despite UK’s Office for National Statistics report UK budget deficit hit £16.3 billion, marking the third-highest June budget deficit since monthly records started in 1997. Pound is higher against the dollar currently while euro is lower. USD/JPY slowed its sliding while AUD/USD accelerated its climbing on Tuesday with the Australian dollar higher against the Greenback currently and the yen lower.

Futures on three main US stock indexes are up currently ahead of Existing Home Sales report scheduled for 16:00 CET. Stock indexes ended mixed on Tuesday recording daily returns in the range from -0.4% to 0.4% while the Federal Reserve Bank of Richmond data showed manufacturing activity deteriorated in July in fifth Fed district.

European stock indexes futures are higher currently after closing lower on Tuesday as the European Union appears to be preparing to deploy its “Anti-Coercion Instrument” to try to deter trade disputes in response to the White House’s 30% tariff threat. Asian indexes futures are rising today after president Trump announced his administration had signed a “massive” trade deal with Japan, setting US tariffs on the country at 15%, which is lower than the 25% threatened earlier. Australia’s All Ordinaries ASX 200 Index is lagging peers.

Brent is edging lower currently. Prices fell yesterday amid reports European Union was exploring a broader set of possible counter-measures against the US as prospects faded for an acceptable trade agreement with Washington. 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) fell 1.6% and is lower currently. Brent lost 1.2% to $68.39 a barrel on Tuesday.