Global Markets Slip as Trump Signs Spending Bill; Trade Deal Deadline Looms

LONDON Global stock markets edged lower on Friday after U.S. President Donald Trump signed a sweeping spending bill into law, shifting investor focus to a looming July 9 deadline for countries to secure trade agreements with the world’s largest economy. The U.S. dollar weakened against major currencies in quiet trading, as American markets remained closed for the Independence Day holiday. Market participants weighed the implications of the newly passed $3.4 trillion spending bill, expected to significantly increase the national debt. In Europe, the pan-European STOXX 600 index declined 0.5%, with banks, mining stocks, and retailers among the top laggards. Meanwhile, U.S. S&P 500 futures dipped 0.6%, following a 0.8% gain on Thursday that pushed the benchmark index to a record close in a shortened trading session. President Trump announced that starting Friday, official letters would be sent to trading partners outlining the tariff rates they would face on exports to the U.S.—a departure from earlier commitments to negotiate numerous individual deals ahead of the July 9 deadline, when higher tariffs may take effect. “Investors are now just waiting for July 9,” said Tony Sycamore, analyst at IG. He noted that the market's subdued outlook on trade negotiations contributed to weakness in export-heavy Asian markets, especially Japan and South Korea. Despite geopolitical concerns, investors found relief in a stronger-than-expected U.S. jobs report released Thursday, which lifted all three major U.S. equity indices during the holiday-shortened session. “The U.S. economy is holding together better than most people expected,” Sycamore added. “That suggests markets could still have room to perform well, even in the face of fiscal uncertainty and trade tensions. Disclaimer: This is not investment advice. The information is provided solely for informational purposes. Please consult a financial advisor before making any investment decision.