World actions continued their liquidation tendency because the wide import tariffs of President Donald Trump Concerns about economic growth increased.
The futures of the S&P 500 retreated more than 1%, which suggests that the underlying indicator will prolong a three -day streak of falls. Amazon.com collapsed 8% in stock market pre -war, since its disappointing results infused caution in the middle of a season of results generally optimistic for large capitalization technology companies.
The dollar went up with the yields of the treasure bonds while the operators They prepared for key employment data of USA that will be published later on Friday.
Trump announced a series of new levies, including a 10% global minimum and 15% or higher tariffs for countries with commercial surpluses with the United Stateswhile progressing with its turbulent effort to restructure international trade. Doubts about the impact on growth and inflation begin to eclipse optimism promoted by AI that has promoted the technological actions of great capitalization.
“Next week marks a significant inflection point for world trade with the introduction of Trump’s tariffswhich generates uncertainty about how these new and historical barriers will affect the markets in practice, ”said Kim Heuacker, associate consultant of Camarco.” High current assessments, especially in US actions, are increasingly difficult to justify. “
The Stoxx 600 European Reference Index fell more than 1%, reaching its minimum of one month. Pharmaceutical actions, such as Novo Nordisk A/S, GSK PLC and Astrazeneca PLC, led the falls after Trump demanded from pharmacists to lower prices in the United States. The MSCI All country World index fell for the sixth consecutive day, the longest streak since September 2023.
Tariffs are “very harmful to Europe,” said Ludovic Subran, investment director of Allianz Se. “The cost for companies will be huge, since the United States is, by far, the largest market.”
Trump’s reference tariffs for many commercial partners remain unchanged at 10% with respect to the taxes imposed in April, What dissipates the fears of investors after the president had previously said that they could double. However, your decision to raise tariffs on some Canadian products to 35% threatens to aggravate tension in a tense relationship.
The average US tariff will increase to 15.2% if the rates are implemented as announced, According to Bloomberg Economics, compared to 13.3% previous and significantly higher than 2.3% in 2024 before Trump assumed the position.
According to Bloomberg, seasonal weakness and disappointing results leave vulnerable to European actions, especially with their American peers reaching new maximums. Tariffs, the strength of the euro and the weak growth of income remain persistent obstacles for the rest of the year. – Nour al Ali, Macro Markets & Squawk. Click here to see the complete analysis.
It is expected that the July Employment Report shows that companies are being deliberate in their hiring. Employment is likely to be moderated after the June increase, while the unemployment rate is expected to rise to 4.2%.
“Given all uncertainties, it makes a lot of sense for merchants and distributors to withdraw part of the money destined for non -agricultural payroll today,” said Gareth Nicholson, Nomura International Wealth Management.
