Morning Economic Report 7-21-25

There has been little reaction from Japan’s election where PM Ishiba’s majority is eroded as local markets are closed. Little movement seen in APAC as a whole as it deliberates on tariff deals again. US mulls a 15% or higher baseline levy on EU, despite Trade Secretary Lutnick saying a deal can still be made. The EU is looking at reciprocity if a deal is not reached. EU to meet China in trade negotiations. Bourses are preparing for a period of mass result reporting with eyes particularly on Tesla this week. FED members are in a blackout period, FEDwatch pricing for July 30 decision being unchanged is 95%, Sep cut is only 55%. DAX -0.18%, CAC -0.44%, FTSE -0.03%, Euro STOXX600 -0.12%. Political uncertainty in Japan has not dented the JPY and it rallies adding to a small drag on the USD this morning, DXY 98.24. Gold 3367. BTC $118,691.