Core Viewpoint - The article discusses the recent volatility in European stock markets, influenced by economic data and geopolitical events, particularly the EU's decision to impose tariffs on US products totaling €93 billion, which has led to significant market reactions [5][6]. Group 1: European Market Reactions - European stock markets initially opened higher due to resilient economic data but experienced sharp declines following the approval of countermeasures against the US [1][3]. - The French CAC40 index flipped from positive to negative, indicating a loss of investor confidence [2]. - The Italian FTSE MIB index also saw a significant drop, reflecting broader market concerns [3]. Group 2: Central Bank Decisions - The European Central Bank (ECB) decided to maintain its main refinancing rate at 2.15%, aligning with market expectations and marking the first pause in rate cuts since June of the previous year [8]. - Following the ECB's announcement, traders maintained their bets on future rate cuts, with expectations of a 22 basis point reduction by 2025 [10]. Group 3: Global Market Trends - The article highlights a shift in global investment trends, with the US dollar weakening and European markets attracting significant institutional inflows due to fiscal stimulus and interest rate cuts [12]. - The ongoing uncertainty in US fiscal policy and the Federal Reserve's monetary policy is emphasized as critical factors influencing global markets [13]. - Investors are advised to focus on structural trends that are likely to persist despite short-term volatility, suggesting a need for strategic positioning in the current market environment [13].

Core Viewpoint - The Malaysian Ringgit has reached its highest level in nine months against the US dollar, driven by easing global trade tensions and a general weakness of the dollar [1] Group 1: Currency Performance - The Ringgit appreciated by 0.7% to 4.1805 against the US dollar, marking the highest level since October of the previous year [1] - The recent appreciation of the Ringgit reflects increased confidence in Malaysia's export-dependent economy due to signs of a resolution in the global trade war [1] Group 2: Trade Agreements - There are indications that trade agreements between the US and up to 12 major trading partners are expected to be finalized before the July 9 deadline, contributing to the rise of the Ringgit [1] Group 3: Dollar Weakness - The decline of the US dollar is attributed to expectations of interest rate cuts by the Federal Reserve and concerns over the expanding US fiscal deficit [1]

Core Viewpoint - The current danger lies in the self-perpetuating nature of the expanding U.S. fiscal deficit, which raises concerns for risk assets and policymakers alike [1] Group 1 - The U.S. fiscal deficit is continuously growing, which is a significant concern for the financial markets [1] - Higher interest rates will be necessary for financing, impacting policymakers' decisions [1]