US to reduce tariffs on Vietnamese goods to 20%, as part of new bilateral trade deal

Both Dow Jones and S&P 500 ended the day in green yesterday, 2^nd July, 2025. US President Donald Trump said that US has reached a trade deal with Vietnam. Tariffs on imports from Vietnam to America will be reduced to 20%, as part of the deal.

US House of Representatives is now debating the version of Trump tax cut bill that has been passed by the Senate the other day. The bill if passed is likely to increase the fiscal deficit of the US government by $3 trillion over the next one decade. It will also be a big negative for renewable energy. Stocks of renewable energy companies are likely to see its adverse impact over the coming days.

Nasdaq ended the day, yesterday, up by 190.24 points or 0.24%. Dow Jones ended the day, down by 10.52 points or 0.024%. S&P 500 ended the day, up by 29.41 points or 0.47%.

Selling in British bonds and depreciation in pound

Euro stoxx 50 ended the day yesterday, up by 36.29 points or 0.69%. Dax index ended the day, up by 116.82 points or 0.49%. FTSE 100 index ended the day, down by 10.64 points or 0.12%. Some heavy selling was seen in bonds of British government and the British currency depreciated. This, after reports came that Rachel Reeves, the finance minister of UK, has lost the support of her Prime Minister, Sir Keir Starmer. She may be replaced soon.

Asian markets begin the day on a mixed note

At 8:50 a.m. Indian Standard time today, 3^rd July, 2025 Nikkei 225 is down by 29.85 points or 0.075%. Hang Seng is down by 247.36 points or 1.02%. Shanghai index is up by 0.67 points or 0.019%. Kospi index is up by 27.44 points or 0.89%.

Indian equity markets may continue to see some selling and profit booking today.

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Source: Dow Jones