Daily Report

23 de Julho de 2025
Financial Markets | daily report 23.07.2025

Markets had a mixed session yesterday. Sovereign yields continued to decline across the U.S. and euro area, while the EUR
crawled back above $1.17 and touched a 10 day high. European stock markets were mixed while the U.S.' S&P 500 wavered.
This morning Japan's Nikkei rallied on the back of a U.S. Japan trade deal that would set tariffs on Japan at 15% (incl. cars).

The White House continued to comment on the future of the Fed's leadership. Treasury Secretary Scott Bessent said he sees
no reason for Jerome Powell to step down before his term ends, but added that the Fed should be cutting rates now. Trump
reiterated his criticism while stating that "in eight months he'll be out" (Powell's term as Chair ends on May 15, 2026).

On the data front, the ECB's Bank Lending Survey showed that housing loan demand continued to increase strongly in Q2
2025, but demand for firm loans remained weak. Credit standards tightened slightly for housing loans and more markedly for
consumer credit, while credit standards for firm loans remained broadly unchanged.