Morning Economic Report 7-23-25

Economy Update

US and Japan agree upon a 15% tariff, which is down from the threatened August 1st 25%. Japan also agrees $550m investment into US, but there is no change for aluminium and steel. Because a quarter of Japan’s exports to the US are made up of cars, Honda and Toyota surge by nearly 13% dragging the Nikkei up by 4%. This is all despite reports that PM Ishiba will quit after losing majority. The tariff deal leads to hopes for others and APAC and European shares are lifted. Concern is seen over poor reporting from GM saying tariffs have cost it $1b. EU Consumer Confidence flash main docket item. DAX +0.81%, CAC +1.38%, FTSE +0.35%, Euro STOXX600 +1.26%. There is little reaction in FX, which is also stifled by ECB decision tomorrow and likely to keep rates unchanged, DXY 97.43. Gold 3425. BTC $117,978.