The Dividend Cafe Wednesday - July 23, 2025
5 snips
Jul 23, 2025 A global market rally is underway, fueled by finalized trade deals between the US, Japan, and the EU. The US markets climbed nearly 1%, while Japan's Nikkei soared by 3.5%. A detailed analysis of the US-Japan trade deal reveals a 15% tariff rate and notable Japanese investment. Meanwhile, inflation expectations see a slight decrease, but existing home sales dip. The discussion wraps up with insights on market valuations and important upcoming economic indicators.
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US-Japan Trade Deal Boosts Markets
- The finalized US-Japan trade deal lowered tariff rates from an expected 25% to 15%, boosting market optimism.
- Japan committed about $550 billion in investment to the US, strengthening bilateral economic ties.
Broad Market Rally on Trade News
- Global markets rallied broadly on July 23, led by a 3.5% rise in Japan's Nikkei.
- US markets also gained nearly 1%, while fixed income prices dipped modestly due to rising yields.
Mixed Economic Signals from US Data
- Business inflation expectations from the Atlanta Fed slightly decreased, signaling cooler inflation concerns.
- US existing home sales fell 2.7% in June with prices still sticky, showing a sluggish but stable housing market.