Global financial markets are experiencing continued volatility amid escalating trade tensions between the United States and China, while markets await crucial US labor market data on Friday.
Statements by White House National Economic Council Director Kevin Hassett sparked a wave of anticipation after he indicated the possibility of an imminent conversation between US President Donald Trump and his Chinese counterpart Xi Jinping to discuss trade, although no official date has yet been set for the talks. This comes after Trump accused China of violating the previous trade agreement, which increased market tensions.
Further complicating the situation, Trump’s announcement to double tariffs on steel imports to 50% prompted angry European reactions, with the European Commission expressing its readiness to impose countermeasures if a balanced solution is not reached by July 14.
Amid this tense geopolitical and economic climate, investors are turning their attention to Friday’s US labor market data , which will play a pivotal role in determining the Federal Reserve’s monetary policy direction in the coming months. This data is expected to directly impact the movement of the dollar, stock and bond markets, and also influence inflation and interest rate expectations.
- Will employment and inflation data boost the chances of an interest rate cut this year?
- Will markets become less sensitive to geopolitical news if fundamental data shows resilience in the US economy?
Given these developments, markets remain extremely cautious and volatile , awaiting the outcome of this weekend’s events.
