Global Stock Markets Likely Set to Gain a Tad Amidst Anticipation for Alaska Negotiations
The U.S. economy is experiencing a surge in import prices and potential supply chain disruptions, with producer prices rising 3.3 percent on an annual basis, the most significant increase since February 2023. This trend, driven by higher prices for import petroleum and natural gas, could lead to inflationary pressures and constrained supply availability.
U.S. import prices showed a notable increase in July 2025, with the largest monthly advance since January 2025. Fuel import prices overall decreased by 12.1 percent over the past 12 months, but natural gas prices surged 62.2 percent. Nonfuel import prices rose 0.3 percent in July, driven by increases in industrial supplies, consumer goods, and capital goods, although automotive vehicles and food prices fell slightly.
The tariff-driven decrease in import cargo and higher import prices imply pressures on retail sales due to higher consumer costs and reduced availability of goods. Industrial production may also be affected by higher input costs and supply chain disruptions, slowing manufacturing output and investment.
The near-term outlook to late 2025 is for a softer import market and elevated costs, likely moderating economic activity and consumer spending. Small businesses may be particularly vulnerable, and overall hiring and investment might decline.
Meanwhile, European stocks closed at their highest level in more than two months on Thursday, but the tech-heavy Nasdaq Composite and the Dow ended flat with negative bias. Asian markets were mostly higher, except for Hong Kong's Hang Seng index, which fell more than 1 percent. The S&P 500 index closed at a new record high for the third consecutive day overnight, while the U.K.'s FTSE 100 inched up 0.1 percent, and the pan European STOXX 600 gained 0.6 percent.
In other news, the Trump administration is considering taking a stake in Intel to back its delayed Ohio chip hub. The summit between the U.S. and Russian presidents is scheduled to take place in Alaska, with U.S. President Donald Trump expressing his belief that his Russian counterpart is ready to make a deal to end the war in Ukraine. European stocks are expected to open higher on Friday amid hopes that the Trump-Putin summit might help end the conflict.
Tech stocks could be in focus today due to disappointing sales and profit forecasts from Applied Materials Inc., the largest American producer of chipmaking gear. Japan's Q2 GDP beat forecasts, fueling BoJ rate hike bets.
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- The surge in import prices and potential supply chain disruptions in the U.S. economy could have a significant impact on various sectors, including business, finance, politics, and general-news, as these factors might influence consumer costs, manufacturing output, investment, and economic activity.
- The tech-heavy Nasdaq Composite and the Dow ended flat with negative bias, while European stocks closed at their highest level in more than two months, reflecting the interplay of global business, finance, technology, and politics in the stock markets' performance and investor sentiment.
