Monthly Comment – July 2025
During July, the financial markets mainly focused on the continued trade talks between the United States and the rest of the world, as well as the Q2 earnings reports. The U.S. and Europe finally agreed on a trade deal in which 15% tariffs are imposed on the majority of goods imported from the EU to the U.S. The agreement also means that Europe will make significant investments in the United States. China and the U.S. held discussions in Stockholm, but no agreement has yet been reached; instead, an extension has been granted. This also applies to several other countries, which is positive for now but creates continued uncertainty going forward. The reporting season has delivered positive surprises in the U.S., and even in Europe and Sweden, the negative consequences of tariffs and a stronger SEK have so far affected companies less than feared. Several major markets reached new all-time highs during the month. In the U.S., the Federal Reserve (FED) kept interest rates unchanged despite pressure from Trump. Notably, the board was divided, with two members voting against the decision.