Financial Markets Daily Report
08 July 2025
Markets were mixed in a session dominated by uncertainty about U.S. tariffs. U.S. stocks dropped and the USD strengthened as the Trump administration threatened higher tariffs on several countries. There were no news related to U.S.-EU trade relations and European stocks advanced. Sovereign yields rose across the U.S. and the euro area.
The U.S. extended the July 9 deadline to August 1 for all reciprocal tariffs, but it also announced higher rates for 14 countries unless deals are agreed before August. These include Japan, South Korea and Malaysia (25% tariff) and South Africa and Indonesia (30%). Trump also threatened an extra 10% tariff on those aligned with the "anti-American policies" of the BRICS.
In commodity markets, Brent oil prices jumped towards $70 despite the announcement that OPEC+ will raise production in August. According to some analysts, the movement could have been supported by tight physical markets and a confidence signal from Saudi Arabia (which announced it will charge Asian customers a higher price for its Arab Light crude).