Worry Grows As Trump’s Tariff Deadline Draws Closer – Europe Market Wrap

The Dollar jumped 0.4%, putting it on track for its largest gain in three weeks. Emerging-market currencies plummeted, with the South African rand down 1%, after Trump threatened to impose more tariffs on any country that aligns with ‘the anti-American policies of BRICS.’

Trade tensions are back on investors’ radar, with Trump promising to put unilateral tariffs on dozens more countries in the coming days. US authorities have signalled that increased duties will begin on August 1st, although Treasury Secretary Bessent has suggested that some countries may be allowed a three-week exemption.

In bond markets, Japan’s 30-year yield rose 10 bps to 2.96% on expectations that the outcome of this month’s upper house election will result in increased fiscal spending. US Treasuries remained mostly unchanged, with the 10-year yield at 4.35%.

Oil prices fluctuated between gains and losses after OPEC+ agreed to a larger-than-expected output rise next month, with Brent oil up 0.6% to $68.70 per barrel. The benchmark had dropped as much as 1.6% earlier in the day.