Markets across the globe remained broadly steady Tuesday, as investors digested former U.S. President Donald Trump’s latest tariff maneuver: a formal notice to 14 countries about upcoming trade duties, now postponed to August 1. While the delayed enforcement helped avoid immediate market panic, underlying uncertainty kept risk appetite muted, the U.S. dollar firm, and oil prices under pressure.

Equity Markets Stable but Cautious

Asian and European indices held relatively firm, even as currency and commodity markets reflected mild stress:

• Shanghai Composite: +0.3%

• Hang Seng Index: -0.4%

• DAX (Germany): +0.1%

• FTSE 100 (UK): flat

• CAC 40 (France): -0.2%

Most gains were concentrated in defensive sectors such as consumer staples, utilities, and healthcare, while cyclical stocks like autos and metals lagged.

Dollar Strengthens on Cautious Flows

The U.S. dollar index (DXY) firmed to 104.88, marking a slight rebound after a week of softness:

• EUR/USD dipped to 1.0970

• GBP/USD edged lower to 1.2725

• USD/JPY surged to 144.50, boosted by the yen’s weakness after Trump’s tariff letter to Japan

• USD/CAD remained stable near 1.3610, with Canada on the potential tariff list

Investors rotated back into dollar assets amid uncertainty about August 1 tariffs and weaker Chinese economic signals.

Oil Prices Slip as Demand Outlook Dims

Crude oil fell in early trading:

• Brent Crude: down 1.1% to $82.35/barrel

• WTI Crude: down 1.3% to $78.40/barrel

Falling oil prices reflect:

• Concerns that new tariffs may hurt global growth

• Weak import data from China, the world’s top crude importer

• Cautious positioning ahead of the upcoming OPEC+ meeting, where no significant production cuts are expected

Meanwhile, gold remained steady at $3,350/oz, providing a cushion for portfolios seeking protection from political risk.

Investor Sentiment: Alert, Not Alarmed

While the August 1 delay in tariffs offered breathing room, few investors are interpreting this as a full retreat. Instead, it’s viewed as:

• A tactical political maneuver from Trump’s campaign

• A window for diplomacy—but one that could close abruptly

• A setup for market volatility in late July

Short-term trades remain focused on U.S. macro data, central bank tone, and headlines from Trump’s team.

Conclusion

Markets are holding up—for now. But the calm is highly conditional on how the U.S. moves forward with its tariff strategy. With the dollar regaining strength, oil under pressure, and equities treading water, global investors are operating in a narrow window of stability that may not last long.

ForexFlash will continue tracking capital flows, commodity volatility, and FX positioning as the trade deadline nears.