Market Information Thursday 17 July 2025

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.