Markets dipped Friday as Trump reignited trade tensions โ this time with Canada and possibly Europe. A 35% tariff on Canadian imports hits August 1, and rumors swirl of EU measures coming next.
Trumpโs aggressive tariff play is shaking global trade again.
Canada, Brazil, Japan โ no oneโs spared.
๐ Global market reaction:
STOXX 600 slipped -0.7%
S&P 500 and Nasdaq futures down -0.6%
U.S. 10Y yield climbed to 4.38%
Gold rallied for the 3rd day โ up 0.6% to $3,342
Brent oil sank 2% to $68.88
๐ Currencies:
USD/CAD surged 0.3% to 1.3695
Euro fell to 1.1688
Yen dropped to 146.76 (biggest weekly loss in 2024)
Brazilโs real slumped 2% โ worst in 5 months
GBP hit a 2-week low at 1.3538
Despite the chaos, the U.S. dollar is holding firm, driven by safe-haven flows, strong job data, and the Fed staying hawkish.
But the question remains:
Is this a short-term dollar spike, or the start of a deeper reset in global markets?
๐ง As one strategist put it:
โThe rich control the game, but the poor are the board. Without the board, there is no game.โ
๐ Watch out for key earnings next week โ JPMorgan leads the pack.