This market report highlights key developments in June and July 2025. In the US, job growth exceeded expectations and unemployment fell to 4.1%, while wage growth and inflation remained moderate. CPI rose to 2.7%, driven partly by tariffs. The Fed held rates steady at 4.25%–4.5% and signaled no decision yet on a September cut. President Trump continued to push for lower rates.

A major US-EU trade deal imposed 15% tariffs on most European goods, averting a trade war but drawing criticism for ambitious EU commitments. US-China talks resumed, aiming to extend the tariff truce. Eurozone inflation edged up to 2.0%, with the ECB holding rates at 2.00% and noting easing price pressures and economic resilience.

US stocks hit record highs, led by AI-driven gains in Nvidia and Microsoft. The S&P 500 rose 4.4%, while European markets also posted modest gains. Oil prices rose 8% amid rising tensions with Russia. Gold fell slightly; Bitcoin surged 10.8% to $117,000.

Bond yields climbed in the US and Europe. The US dollar strengthened across major currencies. In Cyprus, inflation ticked up to 0.5%. US banks beat earnings expectations; European banks showed mixed results.