High-Stakes Financial Maneuvers: Global Markets Brace for Impact
Global markets are on edge as U.S.-Canada trade talks resume after Canada's Prime Minister agrees to withdraw a digital tax. U.S. tax cut and spending bill faces delays in the Senate, possibly missing the July 4 deadline, impacting the dollar and prompting foreign investors to reconsider their positions.
Global markets opened with a risk-on sentiment, buoyed by resumed trade talks between the United States and Canada. Canadian Prime Minister Carney has agreed to lift a digital tax, meeting U.S. President Trump's demands and extending the trade negotiation deadline to July 21.
U.S. Treasury Secretary Bessent suggested that more negotiations are likely to extend towards the September 1 Labor Day holiday. The stock markets reacted positively, with Wall Street futures soaring 0.4% to record highs and European gains following closely. Simultaneously, the Mideast ceasefire contributed to a decline in oil prices, bolstering Asian market performance.
The U.S. tax and spending bill faces significant hurdles in the Senate as Democrats delay proceedings, reading aloud the lengthy 940-page draft. The increased U.S. debt and potential Fed policy easing have affected the dollar, causing a 1.7% rise in the euro last week. The dollar's decline, coupled with employment data uncertainties, could further influence Fed decisions.
(With inputs from agencies.)
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