The U.S. dollar strengthened further as global equity markets slipped following remarks from Federal Reserve Chair Jerome Powell. He dismissed the idea of an imminent rate cut, saying it was "too soon" to make such a decision, effectively dashing investor hopes for monetary easing in September.
After wrapping up a two-day policy meeting, the Fed left interest rates unchanged. Despite signs of economic slowdown, the central bank refrained from giving any concrete hints about when borrowing costs might start to decline. Two Fed officials, both appointed by the current U.S. president, publicly opposed the decision, reiterating the need for rate reductions.
Initially, Wall Street held steady, but Powell's post-meeting press conference shifted sentiment. His insistence that the Fed will wait for more economic data before making any move pushed markets into the red, especially with the next rate decision due in September.
Commodities also took a hit. Copper prices dropped in response to the U.S. announcement of significant new tariffs, a move that spooked investors and increased concerns about global trade tensions.
Following Federal Reserve Chair Jerome Powell's recent remarks, the US dollar continued to gain strength. The dollar index, which measures its value against a basket of major currencies, rose by one point zero one to reach ninety nine point eighty nine.
The euro dropped by one point thirteen, falling to one point fourteen sixteen against the dollar. The British pound weakened by zero point seventy eight, sliding to one point thirty two forty four. Meanwhile, the Canadian dollar lost fifty two hundredths, settling at one point thirty eight per US dollar.
Against the Japanese yen, the dollar rose by sixty seven hundredths to one hundred forty nine point forty three. The Swiss franc also lost ground, with the dollar gaining ninety eight hundredths to reach zero point eighty one four.
US Treasury yields continued to move upward amid lingering uncertainty. Powell refrained from offering any firm guidance on a potential rate cut in September, leaving markets guessing.
Futures on US crude oil advanced by one point fourteen, increasing by seventy nine cents and reaching seventy dollars per barrel. Brent crude also showed growth, rising by one point zero one or seventy three cents, closing at seventy three point twenty four per barrel.
In a separate development, former President Donald Trump signed an order to impose hefty tariffs of fifty percent on certain types of copper products, effective from the first of August. The announcement sent shockwaves through the market: copper futures on the US Comex exchange plunged by nineteen point five percent. The premium to the London global benchmark, which had been climbing in recent weeks on expectations of US smelter benefits, quickly narrowed in response.
The United States has taken another aggressive step in its trade policy. Former President Donald Trump signed an executive order imposing new import duties of fifty percent on goods coming from Brazil. This followed an earlier announcement of a twenty five percent tariff on imports from India, also set to take effect on the first of August. These actions came shortly after trade talks between the United States and China concluded on Tuesday without any meaningful breakthroughs.
Precious metals took another hit as gold prices extended their decline following the Federal Reserve's rate decision and Powell's subsequent comments. Earlier pressure from robust economic data in the US had already pushed prices down. As a result, spot gold fell by one point fifty eight, reaching three thousand two hundred seventy three point fifty nine per ounce.
Despite an atmosphere of tariff uncertainty, European markets saw modest gains on Thursday. A series of upbeat corporate earnings reports provided a lift, while investors monitored the latest trade moves announced by former President Trump.
By seven fifteen Greenwich time, the pan-European Stoxx six hundred index was up by zero point three. Barring unexpected volatility, the index appears set to close the month with an overall increase of one point six, supported by easing trade concerns, better-than-expected economic data from the US and Europe, and solid earnings from key companies.
In a flurry of activity ahead of the first of August deadline, Trump introduced several new trade restrictions. These included updates to copper tariffs, new measures affecting imports from South Korea, Brazil, and India, and the cancellation of duty exemptions for certain low-volume international shipments.
Banks across the eurozone extended their rally, with the sector index climbing by one percent. Leading the charge was French lender Societe Generale, which raised its full-year profit target. The bank's shares surged by seven percent, placing it among the top performers of the day.
Earnings results from major financial institutions painted a mixed picture. UK-based Standard Chartered reported stronger-than-expected pre-tax profit for the first half of the year, lifting investor sentiment. Meanwhile, Spanish bank BBVA disclosed a decline in second-quarter net income, slightly dampening enthusiasm in some corners of the market.
Energy major Shell delivered better-than-anticipated earnings for the quarter and opted to maintain its ongoing share repurchase program. As a result, its stock rose by two point nine. Shares of rival BP also saw a modest increase.
Brewing heavyweight Anheuser-Busch InBev faced a sharp sell-off after reporting weaker volumes. The drop was driven by lower consumer demand in China and Brazil, dragging the company's shares down by ten point two — one of the steepest losses of the session.
Tech earnings are setting the tone for Wall Street. Strong overnight results from Microsoft and Meta (banned in Russia) are expected to influence Thursday's trading session. Investors are now turning their attention to upcoming reports from Apple and Amazon, which could further shape sentiment across the broader market.
