The Global Markets Monitor is a daily IMF report covering major global financial and economic developments.
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July 11, 2025

• Narrow breadth of S&P 500 rally may be cause for concern 

• Dollar could face further depreciation pressure

• Volatility surges in Brazil on US tariff threats

• Yuan continues appreciation versus dollar

• Sterling depreciates on weak UK GDP data

• Peru stays on hold at 4.5% as outlook grows more uncertain 

Renewed US tariff threats unsettle markets

Stocks in Europe declined and US equity index futures were lower in the wake of new tariff threats from the US. There was talk of 35% tariffs on Canada and a minimum baseline of 15–20% on all countries from the 10% level that currently prevails. Government bond yields in the US and Europe were higher and the dollar appreciated against most major currencies. This morning’s downturn comes a day after the S&P 500 set yet another new record due to optimism about corporate earnings and the US economy. The impact of new US tariff threats appeared to have dissipated in recent weeks, setting the stage for stronger markets across the globe. However, the recent tariff moves against Brazil and Canada were a stark reminder that markets remain highly vulnerable to political developments. 

The Global Markets Monitor will go on summer break starting on July 14 and will return on August 18.

Image July 11, 2025