Date: 17th July 2025.Global Markets Mixed Amid Bond Yield Moves, UK Jobs Data, and Japan Trade Concerns.Trading Leveraged products is RiskyAsian markets posted broad-based gains on Thursday, following a strong finish on Wall Street. European equities also opened higher across the board, while US stock futures remain narrowly mixed in pre-market trade. However, rising global bond yields and mixed economic data continue to weigh on market sentiment.Bond Yields Climb GloballyJapanese Government Bonds (JGBs) closed stronger, pushing the 10-year yield down by 1.9 basis points. However, US Treasury yields quickly reversed early gains, with the 10-year yield climbing to 4.48%, up 2.4 basis points. Meanwhile, Germany’s 10-year Bund yield rose 1.2 basis points, and the UK’s 10-year Gilt added 2.6 basis points, reflecting market jitters around global inflation and interest rate expectations.UK Labour Market Data Strengthens Rate Cut BetsThe UK labour market surprised to the downside, with the ILO unemployment rate rising to 4.7% in the three months to May, up from 4.6%. While total employment increased by 134,000 during the period, more recent data showed a drop of 41,000 payrolled employees in June, following a 25,000 decline the previous month. Jobless claims also rose by 25,900 in June.At the same time, wage growth showed signs of deceleration. Headline pay growth slowed to 5.0% from 5.4%, while regular pay (excluding bonuses) also eased to 5.0%. These figures, combined with recent inflation data, reinforce expectations that the Bank of England will cut interest rates in August. BoE Governor Andrew Bailey recently indicated that labour market conditions will be a key factor in the pace of monetary easing.Currency and Commodities SnapshotThe US dollar briefly dipped below the 98 mark amid speculation that President Trump was considering removing Federal Reserve Chair Jerome Powell. However, the greenback quickly recovered, with the Dollar Index (DXY) currently at 98.71.Gold prices slipped by 0.4%, trading at $3332.65 per ounce. Crude oil prices remained stable, with WTI front-month futures slightly lower at $66.39 per barrel. The oil market continues to monitor US inventories and geopolitical tensions in the Middle East.Australian Job Market WeakensAustralia’s labour market showed signs of softening as unemployment rose unexpectedly to a four-year high in June. Hiring activity nearly stalled, raising the likelihood that the Reserve Bank of Australia may cut interest rates at its upcoming meeting.Looking AheadJapan Slides into Trade Deficit as US Tariffs BiteJapan posted a trade deficit of 2.2 trillion yen (€13 billion) in the first half of the year, driven by a decline in exports amid ongoing US tariff pressure. June exports fell 0.5% year-over-year, following a 1.7% drop in May. Shipments to the US were particularly hit, declining 11%, with auto exports plunging 26.7%, following a 25% tariff introduced in April.With nearly 20% of Japan’s exports heading to the US, the country is pushing for favourable trade agreements. Meanwhile, Japan prepares for Upper House elections this Sunday. Weak public support for Prime Minister Shigeru Ishiba could jeopardise the ruling party’s majority unless a new coalition is formed.Recession Fears Mount in JapanJapan’s economy contracted in Q1 and may be headed for another contraction in Q2. Falling exports and weakening global demand are raising fears that the country may officially enter a recession in the coming months.Oil Prices Rebound Amid Supply Risks and Diesel ShortagesAfter three consecutive days of losses, oil prices edged higher. Traders are weighing lower-than-usual crude and diesel inventories in the US and Europe against broader concerns about future supply gluts. Diesel shortages in particular have supported prices in the short term.‘The market is currently buoyed by tight diesel supplies, but if OPEC+ production ramps up, we may see a bearish shift,’ said Zhou Mi, an analyst at Chaos Ternary Futures Co.US distillate stockpiles remain at their lowest seasonal level since 1996, despite a modest weekly increase. The futures spread between low-sulfur gasoil and Brent for September—a key indicator of diesel refining profitability—has jumped 7% this month.Geopolitical Risks in Kurdistan Add to Supply ConcernsDrone strikes targeted several oil fields in Iraq’s semi-autonomous Kurdistan region on Wednesday. While the region has not exported crude since a pipeline closure over two years ago, the attacks highlight growing risks to global energy infrastructure.Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HFM Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!Click HERE to READ more Market news.Andria PichidiHFMarketsDisclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. 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