🗓 Monday, August 1
► Europe slides as tariffs and pharma headlines fuel risk-off
European equities dropped sharply, with the Stoxx 600 falling -1.2%, reaching a one-month low as Trump's sweeping tariff plan and demands for lower drug prices weighed heavily. Pharma stocks led declines — Novo Nordisk -4%, Sanofi -3.8%, AstraZeneca -3.9% — while insurers like AXA -6.4% and exporters like Daimler Truck -5% also tumbled on tariff-related fears. Broader indices were red across the board: DAX -1.6%, CAC -2.0%, FTSE 100 -0.7%, FTSE MIB -1.8%. EUR/USD dipped to 1.141, reflecting pressure on European assets amid global trade tensions.
► US futures under pressure as tariff details, tech earnings and NFP jitters weigh
Wall Street futures sold off ahead of the July nonfarm payrolls report and following Trump’s final tariff rollout. S&P 500 -1.0%, Nasdaq 100 -1.1%, Dow -0.9%, as traders reacted to a 15.2% average US tariff rate and signs of further protectionist escalation. Amazon plunged -8% premarket after soft guidance, dragging tech sentiment despite Apple +2% on strong revenue. Coinbase -12% disappointed harshly, while Microsoft continued to benefit from its recent $4T market cap milestone. Treasury yields were stable at 4.38%, but expectations for Friday’s jobs data (~100K payrolls, 4.2% unemployment) loom large. Elevated valuations with thin protection on the downside – due to markets being priced for the best case – are adding to the selloff momentum.
► Asia tumbles amid global trade anxieties and earnings spillover
Asia-Pacific markets closed lower across the board. Nikkei -0.66%, Hang Seng -1.07%, and Kospi -3.88% led the declines amid fears that rising US tariffs will dent regional exports and global growth. Australia -0.92%, India -0.48%, and China’s CSI 300 -0.51% also slipped. Trade-sensitive tech and luxury stocks bore the brunt. In FX, USD/JPY surged to 150.35, showing broad dollar strength, while USD/CNY ticked up to 7.212. The increase in tariffs on Swiss goods (to 39%) also fueled concerns for the large regional luxury sector.
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