Trump Doubles Down on Fed Changes, Burnham Risks Starmer Mistakes | The Opening Trade 7/2/2026

Summary

Markets digest a weak US jobs report that pushed out Fed hike expectations, boosting risk assets. European equities hit record highs and outperform the S&P 500 year-to-date amid a broadening rotation. Trump renews efforts to reshape the Fed. Euronext CEO predicts booming European defense and upcoming tech IPOs. Mizuho strategist sees the yen moving to 140-150. Private credit faces a wave of retail redemption requests, pressuring alternative asset managers. Fund manager Piers Hillier favors US small caps but warns on hyperscaler cash consumption and refi risk in KKR, Apollo and Ares.

• Weak US nonfarm payrolls reduce Fed hike urgency, supporting risk assets and pushing out rate expectations.
• European stocks hit record highs, outperforming S&P 500 year-to-date on broad rotation.
• Trump administration persists in attempts to reshape the Fed, targeting governors like Lisa Cook.
• Andy Burnham floats a warehouse tax in the UK, putting listed warehouse stocks in focus.
• Euronext CEO sees aerospace/defense boom and strong European tech IPO momentum.
• Mizuho strategist calls for USD/JPY to fall toward 140-150 on valuation and intervention risks.
• Private credit funds face a second wave of redemption requests, trapping $14.5 billion and pressuring Apollo, Ares and Blue Owl.
• Jupiter's Piers Hillier sees US small caps outperforming, while warning on hyperscaler cash burn and refi risk for KKR, Apollo and Ares.