On another quiet day for scheduled macro news, attention focuses on the US-Japan trade pact outline announced with great fanfare by President Trump. Risk assets including Japanese equities have rallied on the announcement as it removes a huge source of uncertainty for now that Japan would face ongoing 25 percent tariffs on all its exports to the US, including the key auto sector. The deal, which calls for 15 percent tariffs and for Japan to open key sectors to US goods, looks like progress even as it would bake in new higher US tariffs.

Japanese Prime Minister Ishiba, who will reportedly step down in August after his party's weekend election setback, is touting that Japan has secured a better tariff deal than other countries running trade surpluses with the US. Now, focus turns to US-European Union talks continuing next week in Stockholm. Treasury Secretary Bessent has expressed optimism for a US-EU deal, and the pact with Japan gives markets more hope for one. It also plays into the favored market narrative that another disastrous Liberation Day scenario is unlikely.

Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.

Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.