| Table of Contents |
| Quick Facts |
| US Equities |
| US Dollar Index |
| Canada Digital Services Tax |
| Forex Market |
| Emerging Markets |
| Sector Themes |
- The US equities market is showing no signs of slowing down, with the Nasdaq 100 and S&P 500 Index futures both reaching new highs.
- The rise of emerging markets is expected to continue, with countries like China, India, and Brazil expected to perform well in the coming months.
- The decline of the US Dollar Index is expected to have a significant impact on the Forex market, with the euro and Japanese yen expected to rise against the US Dollar.
- The repeal of Canada’s digital services tax is seen as a significant step towards a trade deal between the US and Canada.
- Emerging markets are likely to remain a popular destination for investors, with stocks and bonds expected to continue to rise.
US Equities Keep Rising: Nasdaq 100 and S&P 500 Index Futures Reach New Highs
As the month of June comes to a close, the US equities market is showing no signs of slowing down. The Nasdaq 100 and S&P 500 Index futures both reached new highs as the new week got underway, marking a strong start to July 2025. While stocks mixed elsewhere, the risk sentiment remained strong, indicating a continued appetite for growth and optimism.
US Dollar Index Falls to New 3.5-Year Low
However, not all markets are basking in the glory of the US equities market’s success. The US Dollar Index (DXY) fell to a new 3.5-year low, making it one of the worst-performing currencies in recent months. This decline can be attributed to a combination of factors, including the increasing popularity of other major currencies, such as the euro and the Japanese yen, and the growing expectation of a hike in interest rates by the Federal Reserve. As a result, the US Dollar is expected to continue its decline in the coming weeks, which could have significant implications for global trade and investments.
Canada Repeals Digital Services Tax, Works for USA Deal by 21st July
In other news, Canada has announced that it will repeal its digital services tax, effective July 21st. This decision is seen as a huge victory for the US government, which had threatened to impose tariffs on Canadian goods in response to the tax. The repeal comes as a result of intense negotiations between the two nations, and it is seen as a significant step towards a trade deal between the US and Canada. The agreement is expected to be finalised by July 21st, and it could have a significant impact on global trade and commerce.
Impact on Forex Market
The US equities market’s strong start to the week, combined with the decline of the US Dollar Index, has had a significant impact on the Forex market. The euro has been one of the biggest beneficiaries, with the currency rising against the US Dollar and other major currencies. The Japanese yen has also risen, as investors seek safer havens in response to the decline of the US Dollar. The British pound, on the other hand, has been broadly stable, but is expected to be affected by the ongoing Brexit negotiations.
Rise of Emerging Markets
In recent months, emerging markets have been a major source of growth and excitement for investors. This trend is expected to continue, with countries like China, India, and Brazil expected to perform well in the coming months. The rise of emerging markets has been driven by a combination of factors, including strong economic growth, low interest rates, and increasing demand for commodities. As investors seek higher returns, emerging markets are likely to remain a popular destination, with stocks and bonds expected to continue to rise.
Sector Themes
In addition to the strong performance of the US equities market, several sector themes are expected to drive performance in the coming months. The technology sector has been a major driver of growth in recent years, with companies like Google, Amazon, and Facebook leading the way. The healthcare sector is also expected to perform well, with companies like Pfizer, Johnson & Johnson, and UnitedHealth Group leading the way. The financial sector is also expected to rise, with companies like JPMorgan Chase, Bank of America, and Wells Fargo leading the way.
