ORLANDO, Florida, July 14 (Reuters) - TRADING DAY

Making sense of the forces driving global markets

By Jamie McGeever, Markets Columnist

World markets were, on the whole, pretty buoyant on Monday as

investors shrugged off U.S. President Donald Trump's latest

tariff threats over the weekend and braced for a deluge of

top-tier economic data from the U.S. and China on Tuesday.

While European and Mexican stocks did wobble on Trump's

latest trade salvo, the hits were minor. Risk appetite held firm

- world equity benchmarks inched up, the Nasdaq and bitcoin hit

new highs, and silver reached a fresh 14-year peak.

If you have more time to read, here are a few articles I

recommend to help you make sense of what happened in markets

today.

1. Don't panic: Europe Inc cautions calm as bloc

tries to

avert 30% U.S. tariffs

2. Currency FOMO may yet draw U.S. investors

overseas: Mike

Dolan

3. Central bank independence needs a better defence

4. Why Trump's push for a 1% Fed policy rate could

spell

trouble for U.S. economy

5. Wealth funds warm to active management - and

China - to

weather volatility, report shows

Today's Key Market Moves

* World stocks tread water, with Wall Street's rise offset

by

general softness in Asia and Europe. European and Mexican stocks

fall on Trump's 30% tariff threat.

* Canadian stocks, spared from the latest threat for

now,

rise 0.6% to a new high of 27142 points.

* The dollar continues to recover, rising to a

three-week

high on an index basis. A sixth straight gain marks its best run

this year.

* Bitcoin leaps to record $123,236 before settling

around

$120,000. It's up more than 10% in the last week.

* Silver slips on the day, but not before hitting a

new

14-year high above $39/oz. The $40/oz barrier is in sight.

Resisting renewed tariff tensions

Markets started a busy week on a solid footing on Monday, as

investors withstood the latest escalation in Trump's tariff war

with two of America's largest trading partners, and dug in ahead

of key market-sensitive economic and corporate events in the

coming days.

After Trump on Saturday said he would impose a 30% tariff on

most imports from the EU and Mexico from August 1, the EU on

Sunday said it would extend its suspension of countermeasures

until early August and continue to press for a negotiated

settlement.

The euro and European stocks fell - the single currency

hitting a three-week low - but the declines were small.

Investors still appear to be optimistic that talks will

ultimately be fruitful and a palatable deal will be reached.

Trade figures from China earlier in the day were certainly

better than expected, although they were boosted by exporters

rushing to beat a fragile tariff truce between Beijing and

Washington ahead of a looming August deadline. Exports rose 5.8%

year-on-year and imports rebounded 1.1%.

The next couple of weeks will see bilateral U.S.-EU and

U.S.-China trade talks intensify as the early August deadlines

approach, and investors can expect a blizzard of headlines to

hit their screens. If Monday is any guide, investors are well

poised to weather the incoming storm.

Trade may have been the main narrative for stock markets on

Monday, but less so bonds, which also had the shadows of Federal

Reserve independence, Chair Jerome Powell's future, and renewed

weakness in Japanese government bonds hanging over them.

The U.S. Treasury market was mostly stable although the

30-year yield did flirt with 5.00% and hit a one-month high.

Government bond prices elsewhere came under heavier pressure,

particularly at the long end of the German and Japanese curves.

The 10-year Bund yield rose to its highest since early April

and the 30-year Bund yield climbed to highs not seen in almost

two years. Yields on Japanese government bonds surged back

toward the historic highs from May, on concern that an upcoming

election could pave the way for increased fiscal spending.

Investors' attention on Tuesday will turn to the monthly

economic 'data dump' from China, which also includes second

quarter GDP figures. Economists polled by Reuters expect the

annual growth rate to have slowed slightly to 5.1% from 5.4% in

the January-March period.

After that, U.S. CPI inflation figures for June will set the

tone for the U.S. trading day. Economists expect inflation to

rise moderately across all measures - core, headline, monthly

and annual - with the annual core rate regaining a 3% handle.

What could move markets tomorrow?

* Australia consumer sentiment (July)

* China house prices, industrial output, retail sales, urban

investment, unemployment (June)

* China GDP (Q2)

* Germany ZEW sentiment indices (July)

* Euro zone industrial production (May)

* Canada CPI (June)

* U.S. CPI (June)

* U.S. 'Empire State' manufacturing index (July)

* U.S. Fed officials scheduled to give public remarks:

Governor

Michael Barr, Richmond Fed President Thomas Barkin, Boston Fed

resident Susan Collins, Dallas Fed President Lorie Logan

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