European stocks fall.
European stocks fell Friday as investors digested U.S. President Donald Trump’s fresh levies on imports from dozens of countries as well as more corporate earnings, ahead of the release of key regional inflation data and the widely-watched monthly U.S. jobs report.
At 03:05 ET (07:05 GMT), the DAX index in Germany dropped 1.3%, the CAC 40 in France slipped 1.2% and the FTSE 100 in the U.K. fell 0.6%.
More Trump tariffs
Trump signed an order late Thursday slapping fresh levies on imports from dozens of countries as the deadline to agree a deal with his administration ran out.
Rates were set at 39% for Switzerland, 35% for Canada, 25% for India, 20% for Taiwan and 19% for Thailand, for example, while Trump also warned that any goods considered to be transhipped to avoid U.S. tariffs will be subject to an additional 40% levy.
This news has hit sentiment Friday, but losses are still relatively minor when compared with the dramatic selloff seen in April after Trump first disrupted global trade with the threat of tariffs.
Gold prices set for weekly drop.
Gold prices were little changed in Asian trade on Friday and headed for a third straight weekly loss, as a surging dollar offset safe-haven demand spurred by escalating U.S. trade tensions.
Dollar strength lifts costs, curbs demand
The US Dollar Index edged higher on Friday to its highest level in more than two months, and was on track for its best weekly gain in nearly three years.
A firmer dollar makes gold more expensive for holders of other currencies and typically dampens buying interest in the bullion.
The dollar was boosted by the Federal Reserve’s decision to leave interest rates unchanged and renewed policy uncertainty tied to U.S. trade moves.
Trump escalates tariff action
President Donald Trump on Thursday intensified his tariff action by signing an executive order, introducing steep “reciprocal tariffs” on imports from more than a dozen countries ahead of an August 1 deadline.
European shares slide to 3-week lows.
European stocks hit a 3-week low on Friday at the end of a busy week as investors worried about the impact of fresh U.S. levies on dozens of countries including a 39% rate on Switzerland.
On the day, healthcare stocks dropped 1.3% after U.S. President Donald Trump sent letters to the leaders of 17 major pharmaceutical companies including Novo Nordisk (NYSE:NVO) and Sanofi (NASDAQ:SNY) outlining how they should slash U.S. prescription drug prices.
Novo Nordisk shed 4.2%, falling to an almost three-year low, while Sanofi shed 1%.
The pan-European STOXX 600 index fell almost 1% by 0720 GMT, down for the third straight session and on track to end the week in red.
The benchmark index has slipped 4.4% from its Monday peak, when it came within 1.8% of its March all-time high, dragged down by a record plunge in Novo Nordisk shares following a profit warning, and as investors assessed the implications of the U.S.-EU trade deal.
Trump continued his tariff blitz, announcing steep levies on exports from dozens of trading partners including Canada, Brazil, India and Taiwan with countries not listed subject to a base 10% rate ahead of a Friday trade deal deadline.
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