Stay up to date with the latest market trends, economic shifts and key financial developments across the UK, US and Asia.
Key market events
New US tariffs - President Trump announced new tariffs this week, including a 50% duty on U.S. copper imports and on goods from Brazil, both set to take effect from 1st August.
Strong US jobs market - US jobless claims fell to a seven-week low, signalling strength in the economy and boosting market confidence.
UK economy shrinks again - despite expectations of a return to growth, UK GDP fell for a second straight month, pulled down by a fall in manufacturing output.
Call to scrap stamp duty on UK shares - The Confederation of British Industry, along with other voices in the City, is calling on the government to scrap the 0.5% stamp duty on share trades, aiming to reinvigorate the UK’s capital markets.
Crypto surge - Bitcoin soared past $118k alongside gains from other cryptocurrencies. This points to the 'risk-on market sentiment' - this is when investors are feeling more confident about the economic outlook, so they're more willing to invest in assets that are considered higher risk but offer potentially higher returns.
What this means for financial advisers and clients
With the sun shining, investors appear in upbeat spirits, brushing aside concerns over President Trump’s tariff announcements. Perhaps the clearest sign of market optimism is the fresh highs in the crypto space. For now, markets seem to be taking Trump’s comments in stride, expecting that cooler heads will prevail. Supporting this sentiment, hard economic data - such as the recent jobless claims report - continues to point to a resilient US economy.
Back in the UK, economic headwinds have done little to hold back equity markets. The FTSE 100 has hit a record high and is among the best-performing major indices over the past 12 months. Despite this strength, business leaders are urging the government to scrap the 0.5% stamp duty on share trades, arguing it dampens investment in UK-listed firms. A successful repeal could offer another boost to UK equities and potentially extend their recent run of outperformance.
Chart of the week - UK leadership
Source: FE Analytics, Parmenion.
Why this matters
While European equities have caught the spotlight this year and US markets rarely slip from focus, it’s the UK market that has quietly outpaced other developed market regions over the past 12 months.
This performance comes despite ongoing concerns about the competitiveness of UK equities and a domestic economy that has fluctuated between modest growth and contraction. But as ever, the economy is not the market. For investors, opportunities often lie beyond the headlines - and beyond the current market favourite.
Market recap
UK bonds under pressure
Gilt yields jumped midweek before easing back slightly, following a stark warning from the Office for Budget Responsibility about the growing pressures on the UK’s public finances.
New FTSE highs
The FTSE 100 reached a record high this week, lifted by hopes that President Trump might backtrack on tariffs. Mining stocks led the gains, while pharmaceutical companies also benefited from the improved tariff optimism.
Europe climbs
The defence sector reached record highs, supported by ongoing commitments to increase military spending across the EU. European banks also climbed, hitting their highest levels since 2010, as confidence in the economic outlook continued to build.
Nvidia’s new milestone
The world’s most valuable company became the first to reach a $4trn market cap this week, after adding over $1trn in value over recent months.
Steady week for US stocks
US airlines climbed this week on the back of improving profit outlooks, while consumer staples lagged amid a broader shift towards risk-on sentiment.
| | Weekly Change | YtD Change |
|---|---|---|
| FTSE 100 | 1.74% | 12.20% |
| FTSE 250 | 0.67% | 7.34% |
| S&P 500 | 0.71% | -0.85% |
| NASDAQ | 0.51% | 0.66% |
| MSCI Europe ex UK | 2.03% | 16.70% |
| Hang Seng | -0.08% | 11.00% |
| Nikkei 225 | -1.38% | -1.00% |
| Brent Crude | 0.99% | -15.24% |
| Gold Spot | 0.55% | 18.12% |
| UK 10yr Gilt yield | +5bps | +3bps |
| US 10yr Treasury yield | +2bps | -22bps |
Source: FE FundInfo, goldprice.org, exchangerates.org.uk, investing.com and finance.yahoo.com. GBP returns as at close of business on Thursday 10th July 2025.
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This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.
