Markets Mixed as Traders Cautiously Eye Trade Developments

Global financial markets opened mixed on July 11, 2025, as traders adopted a cautious stance amid escalating trade tensions, particularly following U.S. President Donald Trump’s dispatch of over 20 letters to governments outlining new tolls if agreements aren’t reached by August 1. 

The S&P 500 dipped 0.5%, while Europe’s STOXX 600 rose 0.3%, reflecting divergent reactions to the trade war rhetoric targeting Canada, Mexico, and the EU.

Trump’s letters, reported by Reuters, propose tariffs up to 35% on imports, aiming to address a $200 billion trade deficit, with deadlines pressuring negotiations. 

Analysts note uncertainty around China’s response, given its $500 billion export reliance on the U.S. Oil prices fell 2% due to demand fears, while gold gained 1% as a safe haven. Traders anticipate volatility, with key data releases next week potentially shifting sentiment, as the deadline looms.