Overview

• President Trump announced 10% minimum tariffs on all imports and 15% on trade-surplus countries effective August 7, rekindling global trade tensions.
• European indices opened sharply lower on August 1 with Spain’s Ibex 35 down 0.5%, the EuroStoxx 50 off 1.7% and Germany’s DAX nearly 2%.
• The euro weakened to around $1.14 against the dollar, marking its worst week since 2022.
• Yields on US two- and ten-year Treasuries fell to 3.811% and 4.267% after US nonfarm payrolls rose by just 73,000 in July, boosting Fed rate-cut odds to 67%.
• Spanish corporates reported mixed results as IAG’s H1 profit rose 43.8%, Cellnex narrowed its losses by 72.5% and Iberdrola agreed to sell its Mexican unit for $4.2 billion.