- Asian Shares Cautious on Trade Angst, Oil Falls: Markets Wrap
Asian shares posted modest moves at the open as investors awaited progress on trade deals with the US ahead
of the July 9 deadline imposed by President Donald Trump. Indexes in Japan, Australia and South Korea posted
small declines after Trump administration officials signaled Aug. 1 as the date for higher levies to kick in and
said some countries may get more time to negotiate deals. Oil fell 1.1% to $67.57 a barrel as OPEC+ said it will
increase production. Treasuries were steady as cash trading resumed after the July 4 holiday. Investors are
focusing on the outcomes of several trade negotiations for clues on the next turn in markets. Stocks have
rebounded to a record since their plunge in April, when Trump introduced his sweeping levies and then
announced a 90-day pause for countries to negotiate with the US. Major US trading partners hurried over the
weekend to secure trade deals. - Oil tumbles as OPEC+ hikes August output more than expected
Oil prices slipped more than 1% on Monday after OPEC+ surprised markets by hiking output more than
expected in August, raising concerns about oversupply. Brent fell 80 cents, or 1.2%, to $67.50 a barrel by 0010
GMT, while U.S. West Texas Intermediate was at $65.68, down $1.32, or 2%. The Organization of the Petroleum
Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by
548,000 barrels per day in August. “The increased production clearly represents a more aggressive competition
for market share and some tolerance for the resulting decline in price and revenue,” said Tim Evans of Evans
Energy in a note. The August increase represents a jump from monthly increases of 411,000 bpd OPEC+ had
approved for May, June and July, and 138,000 bpd in April. OPEC+ cited a steady global economic outlook and
healthy market fundamentals, including low oil inventories, as reasons for releasing more oil. The decision will
bring nearly 80% of the 2.2 million bpd voluntary cuts from eight OPEC producers back in the market, RBC
Capital analysts led by Helima Croft said in a note. However, the actual output increase has been smaller than
planned so far and most of the supply has been from Saudi Arabia, they added. In a show of confidence
in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month
high for Asia. Goldman analysts expect OPEC+ to announce a final 550,000 bpd increase for September at the
next meeting on August 3. - Gold falls on trade deal progress, tariff reprieve extension
Gold prices dropped on Monday after U.S. President Donald Trump signaled progress on multiple trade
agreements and announced extended tariff reprieves for several countries, dampening demand for the safe
haven metal. Spot gold fell 0.6% to $3,314.21 per ounce by 0232 GMT. U.S. gold futures were down 0.6% to
$3,322. The U.S. is close to finalizing several trade agreements in the coming days and will notify other
countries of higher tariff rates by July 9, Trump said on Sunday, with the higher rates scheduled to take effect
on Aug. 1. Trump announced in April a 10% base tariff on most countries, with additional duties of up to 50%.
He later postponed the effective date for all but 10% of those tariffs until July 9. The new date grants a three
week reprieve to most affected nations. Spot silver fell 0.8% to $36.81 per ounce. - Trump threatens extra 10% tariff on countries that align with ‘Anti-American’ BRICS policies
U.S. President Donald Trump has threatened an additional 10% tariff on countries that orient themselves along
the “Anti-American policies of BRICS.” Trump’s announcement, which did not elaborate on any specific policy
of BRICS, came as the group’s meeting is underway in Rio de Janeiro, Brazil. The bloc’s leaders took aim at
Trump’s sweeping tariff policies in a joint statement dated July 6, warning against “unjustified unilateral
protectionist measures, including the indiscriminate increase of reciprocal tariffs.” Without calling out the U.S.,
the leaders voiced “serious concerns about the rise of unilateral tariff and non-tariff measures which distort
trade and are inconsistent with WTO rules,” warning that the “proliferation of trade-restrictive actions”
threaten to disrupt the global economy and worsen the existing economic disparities. “Any Country aligning
themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be
no exceptions to this policy,” Trump said in a post on Truth Social Sunday evening stateside. The BRICS group
of developing nations also offered symbolic backing to fellow member, Iran, condemning a series of military
strikes on the country, without naming Israel or the U.S which carried out the military operation. BRICS includes
Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia and
Iran. The bloc describes itself as “a political and diplomatic coordination forum for countries from the Global
South and for coordination in the most diverse areas.” This year, Chinese President Xi Jinping sent Premier Li
Qiang to the meeting in his absence, while Russian President Vladimir Putin, who faces an arrest warrant from
the International Criminal Court, attended online. BRICS goals include improving economic, political and social
cooperation among its members, and “increasing the influence of Global South countries in international
governance.” - Elon Musk launches ‘The American Party’
Elon Musk announced the formation of a new political party on Sunday, following an online poll he conducted
on X that showed 65% of respondents supported the idea of a new political force. “By a factor of 2 to 1, you
want a new political party and you shall have it!” Musk wrote in a post on X. “When it comes to bankrupting
our country with waste & graft, we live in a one-party system, not a democracy. Today, the American Party is
formed to give you back your freedom.” The announcement comes amid growing dissatisfaction among U.S.
voters with the traditional two-party system. A recent Quantus Insights poll found that 40% of Americans would
consider backing a new political party led by Musk. Of those surveyed, 14% said they would be “very likely” to
support such a movement, and another 26% were “somewhat likely” to do so. Thirty-eight percent said they
were unlikely to offer support, while 22% were unsure. Musk’s move also follows a public clash with President
Donald Trump over the administration’s recent legislative package, dubbed the “One Big, Beautiful Bill.” Musk
called the proposal “insane,” and the disagreement triggered a high-profile online dispute between the two
men last month. It is unclear whether the new party will field candidates for the 2026 midterms or aim for a
broader structural shift in the U.S. political landscape. However, Musk’s announcement taps into growing voter
frustration with what he characterized as a “one-party system” and positions the American Party as a vehicle
for political disruption. With a significant social media following and influence across business, media, and tech,
Musk could potentially reshape parts of the political conversation ahead of the 2026 and 2028 elections. - Ukraine’s Zelenskiy says latest phone call with Trump his most productive yet
Ukrainian President Volodymyr Zelenskiy said on Saturday that his latest conversation with U.S. President
Donald Trump this week was the best and “most productive” he has had to date. “Regarding the conversation
with the president of the United States, which took place a day earlier, it was probably the best conversation
we have had during this whole time, the most productive,” Zelenskiy said in his nightly video address. “We
discussed air defence issues and I’m grateful for the willingness to help. The Patriot system is precisely the key
to protection against ballistic threats.” Zelenskiy said the two leaders had discussed “several other important
matters” that officials from the two sides would be considering in forthcoming meetings. Trump told reporters
on Friday that he had a good call with Zelenskiy and restated his disappointment at a conversation with Russian
President Vladimir Putin over what he said was Moscow’s lack of willingness to work toward a ceasefire. - Trump speaks with Putin after U.S. pauses some weapons shipments to Ukraine
President Donald Trump spoke to Russian President Vladimir Putin. The call comes two days after the U.S. said
it would halt some U.S. missile and ammunitions shipments to Ukraine, which continues to fight off invading
Russian forces. Ukraine President Volodymyr Zelenskyy said that Washington and Kyiv are “clarifying all the
details of defense support, including air defense.” - China retaliates against EU ban with import restrictions on medical devices
China’s finance ministry said on Sunday it was restricting government purchases of medical devices from the
European Union that exceed 45 million yuan ($6.3 million) in value, in retaliation to Brussels’ own curbs last
month. Tensions between Beijing and Brussels have been rising, with the European Union imposing tariffs on
China-built electric vehicles and Beijing slapping duties on imported brandy from the bloc. The European Union
said last month it was barring Chinese companies from participating in EU public tenders for medical devices
worth 60 billion euros ($70 billion) or more per year after concluding that EU firms were not given fair access
in China. The measure announced by the European Commission was the first under the EU’s International
Procurement Instrument, which entered into force in 2022 and is designed to ensure reciprocal market access.
China’s countermeasures were expected after its commerce ministry flagged “necessary steps” against the EU
move late last month. “Regrettably, despite China’s goodwill and sincerity, the EU has insisted on going its own
way, taking restrictive measures and building new protectionist barriers,” the commerce ministry said in a
separate statement on Sunday. “Therefore, China has no choice but to adopt reciprocal restrictive measures.”
The EU delegation office in Beijing did not immediately respond to a request for comment. China will also
restrict imports of medical devices from other countries that contain EU-made components worth more than
50% of the contract value, the finance ministry said. The measures come into force on Sunday. - A year after its landslide win, Britain’s Labour Party is navigating a tougher-than-expected path
Labour won the 2024 election with a landslide victory, but the party’s first year in power has been marked by
notable wins and losses. Trade deals with the U.S., India and the European Union won the government plaudits,
but attempts to reform the welfare system has met with strong opposition. The U.K. economy grew strongly
at the start of the year, but that’s not expected to last. - London IPO fundraising hits a three-decade low in another blow to the UK capital
Fundraising from London IPOs slumped to at least a three-decade low in the first half of this year, new data
showed on Friday – raising fresh questions about the fading allure of the U.K. as a hub for global capital. The
five debuts on the London market in the first six months of 2025 raised a total of £160 million ($218.6 million),
according to new data from Dealogic. That’s the lowest level of London IPO funds raised in the first half of the
year recorded by Dealogic since it began collecting data in 1995. Even in the aftermath of the 2008 financial
crisis, two London IPOs managed to raise £222 million in the first half of 2009, the data shows. London’s biggest
IPO so far this year was the listing of professional services company MHA, which raised £98 million at its debut
on the Alternative Investment Market (AIM) in April. The listings slump in London this year adds to the city’s
struggles to hold onto its former glory as one of the top destinations for global capital. According to the most
recent IPO Watch report from professional services giant PwC, IPO proceeds in the U.K. fell to £100 million in
the first quarter of 2025, down from £300 million in the same period a year earlier.
