At the 25th EU-China summit, European Commission President von der Leyen urged for a more balanced trade relationship with China, highlighting the EU’s growing trade deficit and concerns over subsidized Chinese overcapacity flooding European markets. She stressed that fair competition, improved market access, and eased export controls on rare earths are essential to maintain Europe’s openness. Despite describing the talks as “constructive,” von der Leyen warned that without real progress, trade tensions—already heightened by tariffs on Chinese EVs and Beijing’s retaliatory probes—could escalate further. Chinese President Xi Jinping, meanwhile, emphasized deepening cooperation amid global geopolitical strains. With China’s goods-trade surplus with the EU up 21% year-on-year, the summit underscored both sides’ diverging priorities as Brussels pushes to “de-risk” while Beijing seeks to roll back EU restrictions.

Private credit is rapidly gaining momentum in Asia-Pacific, fuelled by widening funding gaps as traditional bank lending retreats and investors search for higher yields outside the saturated U.S. and European markets. Assets under management in the region surged to $62.3 billion in early 2024, up from $34.3 billion in 2017, as global players like Apollo and Hillhouse ramp up activity across Singapore, India, Japan, and Southeast Asia. With Asia driving over half of global GDP growth but lacking deep public debt markets, private credit funds are stepping in to provide bespoke financing—particularly to mid-market firms struggling to access bank loans. Analysts see long-term growth potential of up to $700 billion, especially in infrastructure, tech, and renewables, though investors must navigate fragmented regulations, currency risks, and transparency challenges.

India’s Commerce Minister Piyush Goyal signalled confidence that New Delhi will secure “preferential” tariffs in its ongoing trade talks with the U.S., aiming for terms better than those enjoyed by rivals like Japan and Vietnam. The negotiations, described as progressing “extremely well,” are part of a push to reach a $500 billion bilateral trade target by 2030. Goyal stressed that India is negotiating from a position of strength, highlighting its strategy of partnering with developed nations to complement its growth story. While sensitive issues—particularly in agriculture—remain, business leaders echoed optimism that both countries are motivated to strike a robust deal. The comments came as India and the U.K. formally signed a free trade agreement granting tariff-free access for 99% of Indian imports into Britain, marking a major milestone in India’s global trade expansion.

The 6M Euribor is unchanged at 2.03% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.67% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

The Trump administration has unveiled a new AI strategy aimed at reducing regulation and promoting the global export of U.S. AI technologies, marking a sharp shift from Biden’s restrictive policies. Trump plans to boost AI growth by supporting exports to allies, removing state-level restrictions, and securing energy resources for AI data centers.

Japanese Prime Minister Shigeru Ishiba reached a surprise deal with U.S. President Trump to limit import tariffs to 15% instead of the previously announced 25%, boosting Japanese markets and automakers. Despite the relief, analysts note the deal will still slightly shrink Japan’s already weak economy, and political pressure on Ishiba continues to grow amid speculation about his resignation.

Investors in Amsterdam responded negatively to earnings from several companies, especially ASMI and CM.com, due to disappointing results and cautious outlooks. Market sentiment improved significantly after news of a U.S.-Japan trade deal with lower-than-expected tariffs, boosting European stock markets, particularly the automotive sector, ahead of anticipated deals with the EU.

The 6M Euribor decreased with 2 basis points to 2.03% compared to previous business day. The 10Y Swap increased with 6 basis points to 2.65% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

In the Netherlands, the prices of homes increased by 9.3 percent in June compared to the same month last year, with an average sales price of €474,234. Compared to May, prices rose by 0.9 percent. The number of property transactions in June totaled 18,883, nearly 29 percent more than a year earlier.

Donald Trump has announced a trade agreement with Japan, under which Japan will invest $550 billion in the U.S. economy and open its market to products such as cars, trucks, rice, and other agricultural goods. According to Trump, the deal will create hundreds of thousands of jobs, direct 90 percent of the profits to the United States, and introduce reciprocal tariffs of 15 percent

The UK borrowed £20.7 billion in June, the second highest for the month on record. Interest costs on government debt has increased substantially, the government’s interest payments reached £16.4 billion, the third largest since 1997. Finance Minister Rachel Reeves may implement further tax hikes later this year to meet fiscal targets.

The 6M Euribor is unchanged at 2.05% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.59% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Nvidia has resumed shipments of its H20 AI chips to China with U.S. government backing, easing prior restrictions and highlighting the strategic tension between maintaining U.S. tech dominance and managing China’s rise in AI. The move offers Nvidia access to its largest market—where half the world’s AI developers are based—while giving Washington leverage by keeping Chinese firms dependent on American technology. Although the return may delay progress in China’s domestic chip development, it reinforces U.S. influence in global AI infrastructure. Analysts say cutting China off completely could undermine U.S. firms’ revenues and innovation capacity, especially in fast-evolving AI sectors like inferencing.

China’s exports of rare-earth magnets to the U.S. soared by over 660% in June compared to May, as American firms rushed to secure supplies following a preliminary trade deal easing restrictions. Despite Beijing’s tight grip on global rare-earth magnet production—accounting for roughly 90%—the U.S. received 353 metric tons last month, making it the second-largest destination after Germany. The rebound comes after China imposed export license requirements in April in response to steep U.S. tariffs. While the short-term outlook for global manufacturers has improved, structural reliance on China remains, with experts warning it could take years for other nations to build a viable alternative supply chain.

Thailand’s cabinet has approved Vitai Ratanakorn, current CEO of the Government Savings Bank, as the next governor of the Bank of Thailand, pending royal endorsement. Set to begin his five-year term on October 1, Vitai will take over amid economic headwinds such as weak domestic consumption, elevated household debt, and mounting pressure from U.S. tariffs. With limited room for monetary easing, analysts say his appointment could foster better coordination between the central bank and the Pheu Thai-led government, which previously clashed with outgoing governor Sethaput over interest rate policy.

The 6M Euribor decreased with 2 basis points to 2,05% compared to previous business day. The 10Y Swap decreased with 6 basis points to 2,60% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Donald Trump has escalated trade tensions with the EU by demanding tariffs of 15–20%, rejecting lower offers and threatening a 30% duty on all EU imports by August 1st. The EU is considering countermeasures, but remains divided, while US markets dipped slightly on the news and Europe grows more pessimistic about reaching a deal.

The London Stock Exchange is considering introducing 24-hour trading, driven by growing demand from retail investors who trade outside regular hours, especially inspired by the crypto market. While individual investors welcome the idea, institutional players warn it could raise costs and risks in trading.

The upcoming trading week will focus on the European Central Bank’s interest rate decision, where a pause is expected after recent cuts, with markets anticipating a possible rate cut in September. Meanwhile, the earnings season continues with major reports from Tesla, Alphabet, and other global firms, alongside a busy week for Dutch companies like ASMI, Randstad, and Heijmans.

The 6M Euribor is unchanged at 2% compared to previous business day. The 10Y Swap increased with 1 basis point to 3% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

According to final figures from Eurostat, consumer prices in the eurozone rose slightly more in June than in May, mainly due to higher prices for services. Annual inflation reached 2.0 percent, while on a monthly basis consumer prices increased by 0.3 percent. Core inflation remained stable at 2.3 percent.

In June, Japanese exports declined for the second consecutive month, falling by 0.5 percent year-on-year. Exports to the United States shrank by 11.4 percent. At the same time, exports to Europe rose by 3.6 percent, while trade with China dropped by 4.7 percent.

According to figures released yesterday by Statistics Netherlands (CBS), the unemployment rate in the Netherlands remained unchanged at 3.8 percent in June, with a total of 386,000 unemployed people. The number of people claiming unemployment benefits was 184,000 at the end of June.

The 6M Euribor decreased with 1 basis point to 2.07% compared to previous business day. The 10Y Swap decreased with 1 basis point to 2.65% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Yesterday, markets briefly dipped—S&P 500 down 0.7%, dollar off 0.9%—on reports Trump might fire the Fed chair but quickly recovered as the threat appeared uncertain. Investors are showing reduced sensitivity to shifting political headlines, having grown accustomed to abrupt reversals. Concerns remain over the Fed’s independence, but some market participants welcome the prospect of lower interest rates.

The euro could rise sharply as European investors move to hedge nearly $4 trillion in U.S. assets amid growing concerns about dollar volatility. Strategists at major investment banks estimate up to $400 billion in hedging flows over 12 months, potentially boosting the euro by 7%. With 12% gains already this year, falling U.S. interest rates may further fuel the shift.

The U.S. plans to notify over 150 countries of new tariff rates, set to take effect on August 1. The move targets mostly smaller trade partners and replaces negotiations with flat rate import taxes. These notifications have heightened market uncertainty and sparked urgency among nations to avoid higher duties.

The 6M Euribor decreased with 1 basis point to 002% compared to previous business day. The 10Y Swap decreased with 2 basis points to 003% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

U.S. consumer prices rose in June, according to government data released yesterday. Annual inflation reached 2.7 percent, while core inflation stood at 2.9 percent. Compared to May, consumer prices increased by 0.3 percent and core prices by 0.2 percent.

Industrial production in the eurozone increased by 1.7 percent in May compared to April (with a decline of 2.2 percent). Compared to the same month last year, production was 3.7 percent higher, according to figures released yesterday by Eurostat.

Confidence in the German economy increased further in July, according to new data from the ZEW Institute. The expectations index rose from 47.5 to 52.7, while the assessment of current conditions also improved, moving from -72.0 to -59.5.

The 6M Euribor increased with 2 basis points to 2.09% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.68% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Japan’s 10-year government bond yield jumped to 1.599%—its highest since 2008—as political uncertainty over fiscal discipline intensifies ahead of Sunday’s upper house election. With parties proposing consumption tax cuts and higher spending, investors fear further debt accumulation in a country already burdened with one of the highest public debt levels globally. Yields on 20- and 30-year bonds also hit multi-decade highs, prompting “bond vigilantes” to demand higher returns. Structural imbalances and reduced bond purchases by insurers and the BOJ add to the upward pressure on yields.

China’s economy grew 5.2% year-on-year in Q2, beating expectations and keeping the country on track for its 5% annual target. Strong industrial output (up 6.8%) supported the result, though retail sales growth slowed to 4.8% and real estate investment plunged by 11.2% in H1. Domestic consumption made up 52% of GDP, and unemployment held steady at 5%. The better-than-expected data may delay further stimulus, though structural issues—like soft inflation, weak fixed investment, and falling terms of trade—remain. Beijing may wait until September to launch additional fiscal support, particularly if trade negotiations with the U.S. falter before the August 12 deadline.

The U.S. is threatening to impose sweeping “secondary tariffs” of up to 100% on countries that continue buying Russian exports if Moscow doesn’t agree to end its invasion of Ukraine within 50 days. These tariffs, unlike traditional ones, would target third-party nations—such as China, India, and Turkey—that import Russian goods, especially oil. The move represents the most aggressive tariff threat to date and aims to exert geopolitical pressure through economic means. Despite the announcement, U.S. markets posted mild gains, with analysts watching upcoming inflation data closely to gauge whether existing tariffs are beginning to affect consumer prices.

The 6M Euribor is unchanged at 2.07% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.70% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

The U.S. will impose a 30% tariff on goods from the EU and Mexico starting August 1, as part of a broader push for what the administration calls “reciprocal” trade. Together, the EU and Mexico account for roughly one-third of U.S. imports, totaling over $1 trillion in 2022. Several countries have warned of countermeasures, while trade talks with others remain unresolved ahead of the tariff deadline.

EU-China trade tensions are escalating, marked by reciprocal restrictions on medical devices and new Chinese tariffs on European brandy. Concerns over industrial overcapacity, trade imbalances, and the weaponization of trade have strained relations, with the EU increasingly protective of its markets. Despite past opportunities for cooperation, experts see little chance for improvement ahead of the EU-China summit.

China’s exports rose 5.8% in June, while imports grew 1.1%, marking their first increase this year. Exports to the U.S. continued to fall, down 16.1%, though the decline slowed amid a temporary tariff truce. Overall, first-half exports grew 5.9% year-on-year, with a trade surplus up nearly 35%, despite ongoing tariff pressures and global demand uncertainties.

The 6M Euribor increased with 2 basis points to 2.07% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.68% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.