Limit Up! 24th July 2025

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Overnight

Economic Indicators Released Overnight

• All the indicators confirming inflation in Japan going lower in stark contrast to JGB yields rising
• EU consumer confidence still very low
• US existing home sales supporting low affordability and high prices

US | Japan Trade Deal

Tariff adjustments

• A 15% "reciprocal" tariff will apply to Japanese cars, auto parts, and other goods—down from the 25% previously threatened.
• Notably, there is no volume cap on auto imports under this rate.
• Steel and aluminium tariffs (50%) remain unchanged, as do pharmaceuticals and semiconductors, which remain under separate negotiations.

Massive Japanese investment

• Japan has pledged to invest US $550 billion in the U.S., with 90% of profits returned to American interests.
• Investments include 100 Boeing aircraft, more military-equipment purchases (raising annual Defense outlays to ~$17 billion), semiconductor-manufacturing projects, and ~US $8 billion in agricultural products, including a 75% increase in U.S. rice imports.

Market access improvements

• Japan will open markets to American autos, trucks, and agriculture—especially rice—and ensure non-discriminatory treatment for U.S. semiconductors and medicines.

Trump strikes tariff deal with Japan, auto stocks surge [Reuters]

Equities rose lead by small caps.

US Equities

Breaking

Japan's PM Ishiba denies he has decided to quit [Reuters] 

BOJ’s Uchida signals caution on interest rate hikes amid US-Japan trade progress [investing.com]

Bitcoin

BTC trying to consolidate the recent push higher.

BITCOIN/USD Daily

Commodities

Oil takes a dive as Middle Tensions abate for now.

SPOT BRENT Daily

Foreign Exchange

Aussie back to the top of the 15 year channel.

AUD/USD Monthly

Bonds

Gap up in 10 year JGB yields despite lower inflation and US trade deal.

Japan 10 Year Government Bond Yield Daily

Equities

S&P pushes higher on the trade deal but resistance is near.

S&P500 Daily

Economic Indicators Today