Markets Today: Chinese Data Mixed, DAX Holds at Support as US Inflation and Earnings loom

[Redator]

Asian Market Wrap

Asian stocks traded within a tight range as investors waited for US inflation data to assess the effects of President Donald Trump’s tariff war before making new investments.

The MSCI Asia-Pacific index, excluding Japan, rose by 0.4%, while Japan's Nikkei index gained 0.2%.

Most Read: Markets weekly outlook - Inflation Storm Ahead as Earnings Season Gets Underway

Japan's Prime Minister Shigeru Ishiba is set to meet US Treasury Secretary Scott Bessent in Tokyo on Friday, according to the Yomiuri newspaper. This meeting comes ahead of the August 1 deadline for 25% tariffs to take effect.

Ishiba also faces an election on Sunday, with polls suggesting his ruling coalition could lose its upper house majority to opponents pushing for increased government spending. Meanwhile, Japanese government bonds dropped, and the 10-year yield hit 1.595%, its highest level since October 2008.

For a more in-depth look at the Asian session, read Asia midday: Asian stocks rise on China data, Gold gains as US dollar softens; EUR/USD (Chart of the day)

China Data Mixed as Retail Sales Struggles but GDP, Industrial Output Beat Forecasts

China's economy showed resilience against US tariffs, slowing less than expected in the second quarter. It grew 5.2% year-on-year, down from 5.4% in the previous two quarters, marking the slowest pace since Q3 2024. However, the result slightly exceeded market expectations of 5.1%, helped by Beijing's policy support during a fragile trade truce.

In June, industrial output growth hit a 3-month high, and unemployment stayed at a six-month low. But retail sales saw their weakest growth in four months, despite government subsidies on electronics.

Looking ahead, growth is expected to slow further in the second half of the year due to challenges like trade tensions before the August 12 tariff deadline, deflation risks, and a struggling property market. The statistics agency also highlighted ongoing global uncertainties and weak domestic demand.

European Open

European stocks edged up on Tuesday, led by gains in automobile shares, after US President Donald Trump showed willingness to negotiate tariffs with the EU.

The STOXX 600 index rose 0.2% to 547.74 points, with other regional markets also moving higher.

On Monday, the EU accused the US of blocking trade deal efforts and warned of possible countermeasures if no agreement is reached.

In the market, auto stocks gained 0.9%, technology shares rose 0.8%, while telecom stocks dropped 0.8%.

Danish wind energy company Orsted jumped 5.5% after Morgan Stanley upgraded its rating to "Overweight."

On the FX Front, The dollar stayed close to a three-week high on Tuesday as traders waited for US inflation data, which could hint at future monetary policy.

It was mostly unchanged at 147.62 yen, after briefly hitting 147.89 yen, the highest since June 23.

The dollar index, which measures the dollar against six major currencies, dipped slightly to 98.003, just below Monday's peak of 98.136, the highest since June 25.

The euro rose to 1.1681 after falling to 1.1650 on Monday, its lowest since June 25.

Meanwhile, the Chinese yuan weakened slightly to 7.1766 per dollar in offshore trading, and the Australian dollar held steady at 0.6548.

Currency Power Balance

Source: OANDA Labs

Looking at commodities and Oil prices failed to hold above the 200-day MA, falling and closing below an ascending trendline on the daily timeframe. This hints at further downside but price is currently resting at a key support level

For more on Oil, read WTI Oil Advances as 200-day MA Serves as Support, Chinese Imports Soar

Gold prices have been choppy but continue to hold the high ground above the $3350/oz handle. CPI may provide some volatility that could help Gold prices decide on its next move.

Economic Data Releases and Final Thoughts

Looking at the economic calendar, we have a busy day ahead.

The US Earnings season kicks off today with major banks reporting before the market opens. Later in the day markets will be bracing for US CPI data which could provide further insight into the trajectory of US monetary policy moving forward..

Read More: US CPI Preview

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - DAX Index

From a technical standpoint, the DAX index bounced once more off the 24000 support level as hope rose of a trade deal between the EU and the US.

The daily candle closed as a hammer candlestick off a key support area which does bode well for further upside.

However, this will depend on trade deal developments and tariffs nd their impact on market sentiment.

Another sign for bulls could be a potential golden cross pattern as the 20-day MA is about to cross above the 50-day MA.

Immediate resistance rests at 24335 and 24500.

A break of the 24000 handle could lead to a retest of support at 23869 which is where the 20 and 50-day MA rests.

DAX Daily Chart, July 15 2025

Source: TradingView.com (click to enlarge)

Client Sentiment Data - DAX Index

Looking at OANDA client sentiment data and market participants are short on the DAX Index with 84% of traders net-short. I prefer to take a contrarian view toward crowd sentiment and thus the fact that so many traders are short means the DAX Index could rise in the near-term.

Follow Zain on Twitter/X for Additional Market News and Insights @zvawda

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