Stocks sink on Trump tariffs, US jobs data
Wall Street's Dow Jones index dropped more than 1.2 percent, while Paris and Frankfurt tumbled nearly three percent lower.
The dollar gave up earlier gains against key currencies while oil prices plunged on fears that a weakening US economy would sap demand.
Trump on Thursday unveiled his latest list of sweeping levies on about 70 economies, taking tariffs to their highest levels since the 1930s as he seeks to reshape global trade to benefit the United States.
Hours later, the US Labor Department said the US economy added just 73,000 jobs in July -- well below market expectations -- while revising down the figures for May and June.
"The US payrolls data has eclipsed news about the latest tariff rates applied to the world's economies by Donald Trump, and is now dominating markets," said Kathleen Brooks, research director at XTB trading group.
Earlier, she noted, tariffs had been "the main theme sucking risk sentiment from financial markets".
Economists have warned that high tariffs -- touted by Trump as a way to boost US industry -- could fuel inflation in the United States and harm its economy.
Data on Friday showed US unemployment ticked up to 4.2 percent from 4.1 percent.
"The slowdown in jobs started in early Q2 (second quarter) when reciprocal tariffs were announced" at the start of Trump's initiative, Fawad Razaqzada, market analyst at City Index and FOREX.com, told AFP in an email.
"Companies expecting margins to be squeezed by higher duties probably thought twice about hiring workers in order to keep costs down. So, the US labour market has been losing steam fast, undoubtedly due to tariff concerns."
The US Federal Reserve this week held interest rates unchanged, despite massive political pressure from the White House to cut.
"The market now seems to think that two months' worth of weak labour market data is enough for some rapid rate cuts from the Fed" in the coming months, Brooks said.
- Blistering tariff rates -
Trump has delayed implementation of the tariffs several times -- the latest move pushing them back a week to August 7.
Some trading partners have reached deals with the United States -- including Britain, the European Union, Japan and South Korea.
China remains in talks with Washington to extend a fragile truce in place since May that is due to expire on August 12.
For those targeted in the latest round, tariff rates range from 10 percent to 41 percent -- including a blistering 35-percent rate on Canada and 39 percent on Switzerland.
Tariff uncertainty overshadowed earnings from major tech titans this week.
In Frankfurt, "even exceptionally strong earnings from Microsoft are failing to provide a boost to the broader market," said Jochen Stanzl, Chief Market Analyst at CMC Markets.
- Key figures at around 1545 GMT -
New York - Dow: DOWN 1.2 percent at 43,594.42 points
New York - S&P 500: DOWN 1.4 percent at 6,250.54
New York - Nasdaq: DOWN 1.9 percent at 20,731.65
London - FTSE 100: DOWN 0.7 percent at 9,068.58 (close)
Paris - CAC 40: DOWN 2.9 percent at 7,546.16 (close)
Frankfurt - DAX: DOWN 2.7 percent at 23,425.97 (close)
Tokyo - Nikkei 225: DOWN 0.7 percent at 40,799.60 (close)
Hong Kong - Hang Seng Index: DOWN 1.1 percent at 24,507.81 (close)
Shanghai - Composite: DOWN 0.4 percent at 3,559.95 (close)
Euro/dollar: UP at $1.1552 from $1.1421 on Thursday
Pound/dollar: UP at $1.3259 from $1.3208
Dollar/yen: DOWN at 148.07 yen from 150.68 yen
Euro/pound: UP at 87.13 pence from 86.43 pence
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The Advertiser
an hour ago
- The Advertiser
India will continue to buy Russian oil, officials say
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The country's state refiners - Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd - have not sought Russian crude in the past week or so, four sources familiar with the refiners' purchase plans told Reuters. On July 14, Trump threatened 100 per cent tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the top supplier to India, responsible for about 35 per cent of India's overall supplies. Russia continued to be the top oil supplier to India during the first six months of 2025, accounting for about 35 per cent of India's overall supplies, followed by Iraq, Saudi Arabia and the United Arab Emirates. India, the world's third-largest oil importer and consumer, received about 1.75 million barrels per day of Russian oil in January-June this year, up one per cent from a year ago, according to data provided to Reuters by sources. Nayara Energy, a major buyer of Russian oil, was recently sanctioned by the European Union as the refinery is majority-owned by Russian entities, including oil major Rosneft. In July, Reuters reported that Nayara's chief executive had resigned after the imposition of EU sanctions and company veteran Sergey Denisov had been appointed as CEO. Three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions on the Russia-backed refiner, Reuters reported in July. India will keep purchasing oil from Russia despite US President Donald Trump's threats of penalties, two Indian government sources say, not wishing to be identified due to the sensitivity of the matter. "These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight." Trump indicated in a Truth Social post in July that India would face additional penalties for purchases of Russian arms and oil. On Friday, Trump told reporters that he had heard India would no longer be buying oil from Russia. The New York Times on Saturday quoted two unnamed senior Indian officials as saying there had been no change in Indian government policy, with one official saying the government had "not given any direction to oil companies" to cut back imports from Russia. Reuters reported this week that Indian state refiners stopped buying Russian oil in the past week after discounts narrowed in July. "On our energy sourcing requirements ... we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," India's foreign ministry spokesperson Randhir Jaiswal told reporters during a regular briefing on Friday. Jaiswal said India had a "steady and time-tested partnership" with Russia, and that New Delhi's relations with various countries stood on their merit and should not be viewed from the prism of a third country. The White House did not immediately respond to requests for comment. Indian refiners are pulling back from Russian crude as discounts shrink to their lowest since 2022, when Western sanctions were first imposed on Moscow, due to lower Russian exports and steady demand, sources said earlier this week. The country's state refiners - Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd - have not sought Russian crude in the past week or so, four sources familiar with the refiners' purchase plans told Reuters. On July 14, Trump threatened 100 per cent tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the top supplier to India, responsible for about 35 per cent of India's overall supplies. Russia continued to be the top oil supplier to India during the first six months of 2025, accounting for about 35 per cent of India's overall supplies, followed by Iraq, Saudi Arabia and the United Arab Emirates. India, the world's third-largest oil importer and consumer, received about 1.75 million barrels per day of Russian oil in January-June this year, up one per cent from a year ago, according to data provided to Reuters by sources. Nayara Energy, a major buyer of Russian oil, was recently sanctioned by the European Union as the refinery is majority-owned by Russian entities, including oil major Rosneft. In July, Reuters reported that Nayara's chief executive had resigned after the imposition of EU sanctions and company veteran Sergey Denisov had been appointed as CEO. Three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions on the Russia-backed refiner, Reuters reported in July. India will keep purchasing oil from Russia despite US President Donald Trump's threats of penalties, two Indian government sources say, not wishing to be identified due to the sensitivity of the matter. "These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight." Trump indicated in a Truth Social post in July that India would face additional penalties for purchases of Russian arms and oil. On Friday, Trump told reporters that he had heard India would no longer be buying oil from Russia. The New York Times on Saturday quoted two unnamed senior Indian officials as saying there had been no change in Indian government policy, with one official saying the government had "not given any direction to oil companies" to cut back imports from Russia. Reuters reported this week that Indian state refiners stopped buying Russian oil in the past week after discounts narrowed in July. "On our energy sourcing requirements ... we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," India's foreign ministry spokesperson Randhir Jaiswal told reporters during a regular briefing on Friday. Jaiswal said India had a "steady and time-tested partnership" with Russia, and that New Delhi's relations with various countries stood on their merit and should not be viewed from the prism of a third country. The White House did not immediately respond to requests for comment. Indian refiners are pulling back from Russian crude as discounts shrink to their lowest since 2022, when Western sanctions were first imposed on Moscow, due to lower Russian exports and steady demand, sources said earlier this week. The country's state refiners - Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd - have not sought Russian crude in the past week or so, four sources familiar with the refiners' purchase plans told Reuters. On July 14, Trump threatened 100 per cent tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the top supplier to India, responsible for about 35 per cent of India's overall supplies. Russia continued to be the top oil supplier to India during the first six months of 2025, accounting for about 35 per cent of India's overall supplies, followed by Iraq, Saudi Arabia and the United Arab Emirates. India, the world's third-largest oil importer and consumer, received about 1.75 million barrels per day of Russian oil in January-June this year, up one per cent from a year ago, according to data provided to Reuters by sources. Nayara Energy, a major buyer of Russian oil, was recently sanctioned by the European Union as the refinery is majority-owned by Russian entities, including oil major Rosneft. In July, Reuters reported that Nayara's chief executive had resigned after the imposition of EU sanctions and company veteran Sergey Denisov had been appointed as CEO. Three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions on the Russia-backed refiner, Reuters reported in July. India will keep purchasing oil from Russia despite US President Donald Trump's threats of penalties, two Indian government sources say, not wishing to be identified due to the sensitivity of the matter. "These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight." Trump indicated in a Truth Social post in July that India would face additional penalties for purchases of Russian arms and oil. On Friday, Trump told reporters that he had heard India would no longer be buying oil from Russia. The New York Times on Saturday quoted two unnamed senior Indian officials as saying there had been no change in Indian government policy, with one official saying the government had "not given any direction to oil companies" to cut back imports from Russia. Reuters reported this week that Indian state refiners stopped buying Russian oil in the past week after discounts narrowed in July. "On our energy sourcing requirements ... we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," India's foreign ministry spokesperson Randhir Jaiswal told reporters during a regular briefing on Friday. Jaiswal said India had a "steady and time-tested partnership" with Russia, and that New Delhi's relations with various countries stood on their merit and should not be viewed from the prism of a third country. The White House did not immediately respond to requests for comment. Indian refiners are pulling back from Russian crude as discounts shrink to their lowest since 2022, when Western sanctions were first imposed on Moscow, due to lower Russian exports and steady demand, sources said earlier this week. The country's state refiners - Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd - have not sought Russian crude in the past week or so, four sources familiar with the refiners' purchase plans told Reuters. On July 14, Trump threatened 100 per cent tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the top supplier to India, responsible for about 35 per cent of India's overall supplies. Russia continued to be the top oil supplier to India during the first six months of 2025, accounting for about 35 per cent of India's overall supplies, followed by Iraq, Saudi Arabia and the United Arab Emirates. India, the world's third-largest oil importer and consumer, received about 1.75 million barrels per day of Russian oil in January-June this year, up one per cent from a year ago, according to data provided to Reuters by sources. Nayara Energy, a major buyer of Russian oil, was recently sanctioned by the European Union as the refinery is majority-owned by Russian entities, including oil major Rosneft. In July, Reuters reported that Nayara's chief executive had resigned after the imposition of EU sanctions and company veteran Sergey Denisov had been appointed as CEO. Three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions on the Russia-backed refiner, Reuters reported in July.
Sky News AU
7 hours ago
- Sky News AU
Donald Trump unhappy with grim US jobs report
The US Bureau of Labor Statistics has delivered a report reflecting a significant downturn in the job market following recent tariffs. Job numbers from May and June were revised down drastically and American companies only added about 73,000 jobs in July. In response, President Donald Trump is calling for the head of the bureau to be fired.
SBS Australia
11 hours ago
- SBS Australia
Dozens of countries hit in Trump tariff blitz
Listen to Australian and world news, and follow trending topics with SBS News Podcasts . The U-S President has announced steep tariffs for 92 nations, including Canada at 35 per cent, and India at 25 per cent. President Donald Trump says the hikes target nations that failed to engage with U-S economic and security interests. But Australian goods will stay at the 10 per cent baseline. Trade Minister Don Farrell says Australian goods are now more competitive in the U-S market, after Donald Trump's latest tariffs announcement. Australia has been spared from an increase in tariffs and the rate remains at the lowest level of 10 per cent. Mr Farrell says that outcome is good for Australia. "What this decision means in conjunction with all the other changes to other countries is that Australian products are now more competitive into the American market. This means products like wine, like beef, like lamb, like wheat, are cheaper into the United States." New Zealand faces a 15 per cent rate, and Canada up to 35 per cent on items outside the US-Mexico-Canada agreement. The White House cited non-tariff barriers and fentanyl trafficking, though Canada accounts for just one per cent of US fentanyl imports. Ottawa says it's boosting border security and fighting transnational crime. Canberra's recent easing of restrictions on American beef is denied as being linked to the decision. Switzerland faces the highest tariff increase, up to 39 per cent. Jean-Philippe Kohl from Swissmem says tens of thousands of tech jobs are now at risk. 'It is really, it was a shock for us, and it is a shock for our export industry and the whole country. We are really stunned. And the tariffs are not based on any rational basis and are arbitrary, and it is impossible to explain what it means and why this decision is made so. So, there is no rationality.' Swiss pharmaceutical giants Roche and Novartis were spared, but broader economic impacts are expected to be severe. The Swiss government is reviewing its response. Meanwhile, Bangladesh has won a key concession, with U-S tariffs on its garment exports cut to 20 per cent, down from a proposed 37 per cent. The decision is a relief for the country's $60 billion [[US$40 billion]] apparel industry, the world's second largest. Factory owner and former trade official Mohiuddin Rubel says the move helps level the playing field. 'Initially when it (Trump's tariff) was imposed, few of our competitors were having lesser tariff than us. So, we were in little bit of a shaky position to fight with them and how to cope up with them in the competition. So, when now it has been revised, all of our competitors almost are in equal stage.' Meanwhile in Taiwan, a 20 per cent tariff has left industries such as machinery and plastics on edge, as companies weigh whether to shift operations. One executive, Mr Wang, warns the impact could ripple across multiple sectors. 'It all depends on the final tariff rate. If it remains 20 percent, it will be a big blow for machine tools manufacturing, machinery and textile industries. And the impact may affect other industries on different levels. As a result, it all depends on the final tariffs rate, what markets Taiwan needs to open for the U.S., what we need to invest in U.S. We won't know the impact until then.' In Malaysia, most pharmaceutical and semiconductor products will be exempt despite a new 19 per cent tariff on other exports. Trade Minister Tengku Zafrul Aziz says the decision followed high-level talks. "In the end, at 5am we finished the discussion in the morning and Prime Minister Anwar Ibrahim briefed us that President Trump has agreed with the tariffs for Malaysia, which is 19 per cent, announced along with other countries. This will be followed by a joint statement by the Malaysia and US side, including the Malaysia Ministry of International Trade and Industry (MITI) and the US Trade Representatives (USTR) either on Saturday or Sunday." South Africa is also bracing for the fallout. Dynamic Fluid Control, a major valve manufacturer, fears the 30 per cent levy on steel could force it out of the U-S market. C-E-O Tumi Tsehlo was blunt. "You know the longer the tariffs stay in place, the longer the situation will continue to disable us." South Africans voiced concern over the potential impact of a 30 per cent tariff imposed by President Trump, warning of job losses and economic uncertainty as the measure takes effect. Kalomo Musokotwane is a marketing and events manager. "Thirty per cent is drastic. So a lot of people are going to lose jobs. And already the government is struggling to create more jobs as it is, and I don't see them creating any more jobs again. So it's going to probably be up to the entrepreneurs. Entrepreneurs are going to have to somehow find a way to bring back the economy. But then at the end of the day, a lot of people are going to lose.' Serbia has been hit with a proposed 35 per cent tariff. Bojan Stanic from the Serbian Chamber of Commerce described the move as excessive. "Serbia is among the most affected countries in the world with tariffs, if they really happen - we will have to wait for the official announcement of the officials in Serbia as well. The tariffs are even higher than those applied for Chinese goods coming to America. On the other hand, in Europe only Switzerland is higher with 39%. We can freely say that this is indeed an irrational decision, bearing in mind that in the last ten years, the economic exchange between America and Serbia has significantly increased." In France, perfume maker Corania is reeling from a 15 per cent tariff on its U-S exports. CEO Laurent Cohen says the sudden change has forced the 90-year-old company to rethink its business strategy. 'So this is new, it's forced on us, it's sudden. And so, we, who have been working in this market for many years, we had to turn around, we had to reinvent ourselves. We already had to be cautious because since January, we have no idea what's coming next.'
