The global equity market declined on Friday after President Donald Trump signed a broad U.S. spending bill which directed market attention toward the upcoming July 9 trade agreement deadline. The dollar experienced a decline in value because U.S. markets remained closed for Independence Day celebrations.
The $3.4 trillion national debt increase from the spending bill caused investors to worry about future budgetary challenges. The STOXX 600 index declined 0.5% because European shares dropped while banks and miners and retailers led the decline.
The President announced that letters containing future U.S. tariff rates would be distributed to trading partners which indicated a shift from his previous stance of making individual trade agreements. The markets in Japan and South Korea together with other Asian markets experienced significant uncertainty.
The strong U.S. jobs report from Thursday boosted market sentiment which led to higher closing prices for all three major indexes during the shortened session. According to IG’s Tony Sycamore the economy’s better-than-expected performance will likely drive stock market gains.
