Reported by Tahir Ishaq Shehu
TOKYO/LONDON, July 1
Global stock markets edged higher on Tuesday, while the U.S. dollar hovered near multi-year lows following its worst first-half performance since the 1970s. Investors remained cautious ahead of a crucial Senate vote on U.S. President Donald Trump’s sweeping tax and spending legislation.
Equity markets rallied to intraday record highs on Monday, buoyed by renewed optimism over global trade. However, uncertainty surrounding the $3.3 trillion tax bill, expected to significantly increase the U.S. national debt, weighed on sentiment as lawmakers continued a prolonged debate in the Senate.
The pan-European STOXX 600 index rose 0.1% in early trading, posting a year-to-date gain of about 6.5% by the end of June.
A vote on the bill, dubbed the “One Big Beautiful Bill” by President Trump, had been expected during Asian trading hours but was delayed amid ongoing amendments and bipartisan opposition. Trump has pushed for the bill’s passage before the July 4 Independence Day holiday.
Meanwhile, investors are also keeping a close eye on Thursday’s U.S. non-farm payrolls report, which could influence expectations around future Federal Reserve rate cuts.
“Trade is front and centre this week,” said Ray Attrill, Head of FX Strategy at National Australia Bank. “But alongside that, we’ve obviously got the fate of the tax bill, which is currently being debated in the Senate.”
U.S. stock futures pointed to a modest pullback, with S&P 500 and Nasdaq futures both down 0.2%.
Tesla Inc. shares fell roughly 5% in Frankfurt trading after President Trump suggested the Department of Government Efficiency should review federal subsidies awarded to companies run by CEO Elon Musk. The two have been engaged in a public spat since early June over the proposed legislation.
“With delivery numbers coming soon and Tesla’s core auto business facing stiff competition, this political drama could reignite bearish sentiment just as shares were starting to rebound,” noted Matt Britzman, Senior Equity Analyst at Hargreaves Lansdown.
Tesla shares have lost around one-third of their value since peaking in December, though the EV giant remains one of the 10 most valuable companies on Wall Street.
Chipmaker Nvidia maintained its strong performance, trading steadily in European markets as it edges closer to a $4 trillion valuation, potentially becoming the most valuable company in history.
On the macroeconomic front, fresh data from Japan and China presented mixed signals. Japan’s Tankan business sentiment index and China’s factory activity gauge indicated that the region’s two largest economies are holding up against trade tensions, though weak demand continues to be a concern. Japan’s manufacturing sector also returned to growth for the first time in over a year.
In currency markets, the U.S. dollar fell 0.6% to 143.21 yen and remained flat at $1.18 against the euro, near its lowest level since September 2021. The greenback has shed more than 10% against a basket of major currencies in the first half of 2025, marking its worst six-month performance in over five decades.
Commodity markets were mixed. Brent crude slipped 0.3% to $66.50 per barrel amid expectations that OPEC+ will increase production in August. Spot gold rose 1% to $3,337 an ounce.
