Israeli Prime Minister says he believes Trump can help seal a ceasefire deal
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Diverging Reports Breakdown
Investors head into Trump tariff deadline benumbed and blasé
Investors say benign outcomes priced in ahead of U.S. President Donald Trump’s Wednesday deadline for trade tariffs. Trump said the first batch of letters outlining the tariff levels they would face on exports to the United States would be sent to 12 countries on Monday. Investors who have been tracking this date for months expect more details to emerge in the coming days and protracted uncertainty. World stocks are meanwhile at record highs, up 11% since April 2. They fell 14% in three trading sessions after that announcement but have since rallied 24%. The dollar has suffered a knock to its reputation from the dithering on the Trump tariffs, which had its worst half of the year since 1973, declining by 11%. It has fallen by 6.6% in the first half of this year alone, the first time it has fallen that much in a year since 2007. The markets are discounting a tariff levels of 35%, 40% or higher, and anticipating an across-the-board level of 10% or so, analysts say.
Item 1 of 2 A screen displays news on U.S. President Donald Trump on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 27, 2025. REUTERS/Jeenah Moon/File Photo
Summary Pause on Trump’s April 2 tariffs expires on Wednesday
Stocks have risen despite tariff volatility, dollar hurt
Investors say benign outcomes priced in
SINGAPORE/NEW YORK, July 6 (Reuters) – Global investors are heading into U.S. President Donald Trump’s Wednesday deadline for trade tariffs palpably unexcited and prepared for a range of benign scenarios that they believe are already priced in.
Just days before the end of a 90-day pause he announced on his April 2 “Liberation Day” tariffs, Trump said the first batch of letters outlining the tariff levels they would face on exports to the United States would be sent to 12 countries on Monday.
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Investors who have been tracking this date for months expect more details to emerge in the coming days and protracted uncertainty too, anticipating Trump will not be able to complete deals with all of America’s trading partners in the coming week.
And they are not overly concerned.
“The market has gotten much more comfortable, more sanguine, when it comes to tariff news,” said Jeff Blazek, co-chief investment officer of multi-asset at Neuberger Berman in New York.
“The markets think that there is enough ‘squishiness’ in the deadlines – absent any major surprise – to not be too unsettled by more tariff news and believe that the worst-case scenarios are off the table now.”
Both the tariff levels and effective dates have become moving targets. Trump said on Friday that tariffs ranging up to 70% could go into effect on August 1, levels far higher than the 10%-50% range he announced in April.
So far, the U.S. administration has a limited deal with Britain and an in-principle agreement with Vietnam.
Deals that had been anticipated with India and Japan have failed to materialize, and there have been setbacks in talks with the European Union.
World stocks (.MIWD00000PUS) , opens new tab are meanwhile at record highs, up 11% since April 2. They fell 14% in three trading sessions after that announcement but have since rallied 24%.
“If Liberation Day was the earthquake, the tariff letters will be the aftershocks. They won’t quite have the same impact on markets even if they are higher than the earlier 10%,” said Rong Ren Goh, a portfolio manager in the fixed income team at Eastspring Investments in Singapore.
“This financial system is so inundated with liquidity that it is hard to cash up or delever at the risk of lagging the markets, with April serving as a painful reminder for many who derisked and were then forced to chase the relentless recovery in the subsequent weeks.”
World stocks have roared back to record high
TAXES AND THE FED
Investors have also been distracted by weeks of wrangling in Congress over Trump’s massive tax and spending package, which he signed into law on Friday.
Stock markets have celebrated the passage of the bill, which makes Trump’s 2017 tax cuts permanent, while bond investors are wary the measures could add more than $3 trillion to the nation’s $36.2 trillion debt.
But the risks of tariff-related inflation have weighed on U.S. Treasuries and the dollar, and jostled expectations for Federal Reserve policy. Rate futures show traders no longer expect a Fed rate cut this month and are pricing in a total of just two quarter-point reductions by year-end.
The dollar has suffered a knock to its haven reputation from the dithering on tariffs. The dollar index , which reflects the U.S. currency’s performance against a basket of six others, has had its worst first half of the year since 1973, declining some 11%. It has fallen by 6.6% since April 2 alone.
“The markets are discounting a return to tariff levels of 35%, 40% or higher, and anticipating an across-the-board level of 10% or so,” said John Pantekidis, chief investment officer at TwinFocus in Boston.
Pantekidis is cautiously optimistic about the outlook for U.S. stocks this year, but the one variable he is watching closely is interest rate levels.
For now he expects to see interest rates dip in the second half, “but if the bond market worries about the impact of the bill and rates go up, that’s a different scenario.”
This heatmap shows the value of the Manufacturing Purchasing Managers’ Index (PMI) across economies.
Reporting by Suzanne McGee, Libby George and Vidya Ranganathan; Editing by William Mallard
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Israeli Prime Minister says he believes Trump can help seal a ceasefire deal
PM Netanyahu due to meet Trump on Monday in Washington. Israeli team heads to Qatar for talks on hostages, ceasefire. Public pressure is mounting on Netanyahu to secure a permanent ceasefire. Hamas said on Friday it had responded to a U.S.-backed Gaza ceasefire proposal in a “positive spirit” The latest bloodshed in the decades-old Israeli-Palestinian conflict was triggered on October 7, 2023, when Hamas attacked southern Israel, killing around 1,200 people and taking 251 hostages, according to Israeli tallies. It has also caused a hunger crisis, displaced the population, mostly within Gaza, and left the territory in ruins. The Israeli military has also recovered some of the hostages, including 20 who are believed to be still alive. It will be Netanyahu’s third visit to the White House since Trump returned to power nearly six months ago.
Item 1 of 3 An Israeli tank maneuvers in Gaza, as seen from the Israeli side of the border, July 6, 2025. REUTERS/Amir Cohen
Summary Israeli team heads to Qatar for talks on hostages, ceasefire
Public pressure builds on Israel’s PM to reach ceasefire deal
PM Netanyahu due to meet Trump on Monday in Washington
JERUSALEM, July 6 (Reuters) – Israel’s Prime Minister Benjamin Netanyahu said he believed his discussions with U.S. President Donald Trump on Monday would help advance talks on a Gaza hostage release and ceasefire deal that Israeli negotiators resumed in Qatar on Sunday.
Israeli negotiators taking part in the ceasefire talks have clear instructions to achieve a ceasefire agreement under conditions that Israel has accepted, Netanyahu said on Sunday before boarding his flight to Washington.
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“I believe the discussion with President Trump can certainly help advance these results,” he said, adding that he was determined to ensure the return of hostages held in Gaza and to remove the threat of Hamas to Israel.
It will be Netanyahu’s third visit to the White House since Trump returned to power nearly six months ago.
Public pressure is mounting on Netanyahu to secure a permanent ceasefire and end the war in Gaza, a move opposed by some hardline members of his right-wing coalition. Others, including Foreign Minister Gideon Saar, have expressed support.
Palestinian group Hamas said on Friday it had responded to a U.S.-backed Gaza ceasefire proposal in a “positive spirit”, a few days after Trump said Israel had agreed “to the necessary conditions to finalize” a 60-day truce.
But in a sign of the potential challenges still facing the two sides, a Palestinian official from a militant group allied with Hamas said concerns remained over humanitarian aid, passage through the Rafah crossing in southern Israel to Egypt and clarity over a timetable for Israeli troop withdrawals.
Netanyahu’s office said in a statement that changes sought by Hamas to the ceasefire proposal were “not acceptable to Israel”. However, his office said the delegation would still fly to Qatar to “continue efforts to secure the return of our hostages based on the Qatari proposal that Israel agreed to”.
Netanyahu has repeatedly said Hamas must be disarmed, a demand the militant group has so far refused to discuss.
Netanyahu said he believed he and Trump would also build on the outcome of the 12-day air war with Iran last month and seek to further ensure that Tehran never has a nuclear weapon. He said recent Middle East developments had created an opportunity to widen the circle of peace.
HOSTAGES
On Saturday evening, crowds gathered at a public square in Tel Aviv near the defence ministry headquarters to call for a ceasefire deal and the return of around 50 hostages still held in Gaza. The demonstrators waved Israeli flags, chanted and carried posters with photos of the hostages.
The latest bloodshed in the decades-old Israeli-Palestinian conflict was triggered on October 7, 2023, when Hamas attacked southern Israel, killing around 1,200 people and taking 251 hostages, according to Israeli tallies.
Gaza’s health ministry says Israel’s retaliatory military assault on the enclave has killed over 57,000 Palestinians. It has also caused a hunger crisis, displaced the population, mostly within Gaza, and left the territory in ruins.
Around 20 of the remaining hostages are believed to be still alive. A majority of the original hostages have been freed through diplomatic negotiations, though the Israeli military has also recovered some.
Reporting by Emily Rose, Maayan Lubell, Charlotte Greenfield, Alexander Cornwell and Howard Goller; writing by Hatem Maher and Charlotte Greenfield; Editing by Alistair Bell and Gareth Jones
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Hot dog survives locker ordeal at Germany’s Neuschwanstein Castle
A dog was rescued from a locker for valuables at Neuschwanstein Castle in southern Germany. The owner shut her pet inside over the objections of other tourists so that she could visit the famous attraction. Police said they had initiated criminal proceedings against the owner on suspicion of breaking Germany’s animal welfare law. The police did not specify what breed the dog was but said it was of “medium” size and about 60 cm (two feet) tall at the shoulder.
BERLIN, July 6 (Reuters) – A dog was rescued from a locker for valuables at Neuschwanstein Castle in southern Germany after its owner shut her pet inside over the objections of other tourists so that she could visit the famous attraction, police said on Sunday.
Neuschwanstein, a picture-postcard castle with surging turrets nestled in the Alps near the border with Austria, is one of Germany’s top tourist attractions.
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Despite it being a hot summer’s day and half the locker already having been filled by a pram, the woman locked the dog inside the small space and left to tour the castle, police in the nearby town of Fuessen said in a statement. Security staff were alerted and freed the dog, they added.
“The dog was fortunately unharmed but visibly glad when it was rescued from the already hot locker,” the police statement said, adding that officers deployed to the scene took him back to the police station.
The police did not specify what breed the dog was but said it was of “medium” size and about 60 cm (two feet) tall at the shoulder. An officer on duty at Fuessen police station contacted by telephone said the dog was a mongrel.
Police said they had initiated criminal proceedings against the owner on suspicion of breaking Germany’s animal welfare law.
Reporting by Ralf Bode and Francois Murphy Editing by Gareth Jones
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Six Ukrainian drones headed for Moscow downed, mayor says
Moscow Mayor Sergei Sobyanin said specialists were examining fragments of the drones near the Russian capital. The governor of Leningrad region outside Russia’s second largest city, St Petersburg, said two drones had been downed. Russia’s Defence Ministry had earlier reported that 39 Ukrainian drones were intercepted and destroyed over a 5-1/2 hour period.
July 6 (Reuters) – Russian air defence units downed six Ukrainian drones headed for Moscow on Sunday, mayor Sergei Sobyanin said.
Sobyanin, writing on the Telegram messaging app, said specialists were examining fragments of the drones near the Russian capital. He made no mention of damage or casualties.
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The governor of Leningrad region outside Russia’s second largest city, St Petersburg, said two drones had been downed, with no damage or casualties noted.
Rosaviatsiya, Russia’s civil aviation authority, reported temporary airport closures in the two cities and other regional centres and said dozens of flights had been delayed.
Russia’s Defence Ministry had earlier reported that 39 Ukrainian drones were intercepted and destroyed over a 5-1/2 hour period into the afternoon, mostly in central Russia or near the Ukrainian border.
The ministry said its air defence units had downed 120 Ukrainian drones overnight, mostly in regions bordering Ukraine.
Reporting by Reuters; Editing by Will Dunham
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