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European stock markets declined on Friday following U.S. President Donald Trump’s latest move to impose a 35% tariff on Canadian imports starting August 1, escalating tensions with a longtime ally over the country’s alleged involvement in fentanyl trafficking into the U.S.

Trump also floated the idea of introducing across-the-board tariffs—ranging from 15% to 20%—on the majority of U.S. trade partners, and hinted at an upcoming “major statement” on Russia, further unsettling global investors and prompting a risk-off tone.

Market participants are also bracing for potential new levies on European Union goods. The U.S. currently maintains stiff tariffs on EU exports, including 50% on steel and aluminum, 25% on automobiles, and 10% on other imports.

In Friday trading, London’s FTSE 100 dropped 0.6%, while Germany’s DAX and France’s CAC 40 each fell by 1.0%, reflecting broad-based concerns about trade policy and global economic headwinds.

On the corporate front, BP Plc (LSE:BP.) saw its shares move higher after announcing that it expects both improved oil output and a strong trading performance in the second quarter.

In contrast, Carclo (LSE:CAR) plunged following news of a delay in the release of its audited financial results, raising concerns about the precision engineering firm’s financial reporting.

Meanwhile, Norwegian Air Shuttle shares soared after the budget airline reported a solid performance for the second quarter, boosting investor confidence in the company’s operational turnaround.

Turning to macroeconomic indicators, the U.K. economy unexpectedly contracted in May, driven by a notable drop in industrial activity. According to the Office for National Statistics, gross domestic product fell 0.1% in May, following a 0.3% decline in April.

In France, consumer price inflation climbed to 1.0% in June, up from 0.7% the previous month, according to revised data from the statistical agency INSEE. The figure was also revised higher from an earlier estimate of 0.9%.

Over in Germany, wholesale prices accelerated on a yearly basis, rising 0.9% in June, according to Destatis. That marks the fastest pace in three months, following April’s 0.4% increase.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. equity futures are trending lower Friday morning, signaling potential weakness at the market open as investors digest a fresh wave of tariff threats from President Donald Trump that could reignite global trade tensions.

The downturn follows two consecutive days of gains for the major indexes, as concerns mount over the White House’s confrontational trade stance. Sentiment soured after Trump unveiled new tariff plans targeting key trade partners.

In a public message addressed to Canadian Prime Minister Mark Carney and shared on Truth Social, Trump announced the U.S. would impose a 35% tariff on Canadian imports starting August 1. The move, he said, was partly in response to Canada’s failure to stem the flow of fentanyl into the U.S.

“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote.

Speaking on NBC’s “Meet the Press,” Trump further disclosed plans to implement blanket tariffs of 15–20% across most U.S. trade allies, including European nations. Additional letters notifying countries of new duties are expected soon.

The recent rhetoric has reawakened trade war fears among investors, just as earnings season looms and markets attempt to gauge broader economic momentum.

“The corporate reporting season begins in earnest next week with the big US banks. That will shift the focus to profits and outlook statements, giving valuable insight into how the business world is coping with a multitude of pressures,” said Dan Coatsworth, investment analyst at AJ Bell.

“Any corporate optimism is likely to prompt a tickertape parade on the markets as investors look for confirmation that tariff uncertainty hasn’t caused widespread damage to earnings,” Coatsworth added.

Although economic data releases are light, traders will be closely watching for clues on inflation and consumer strength as they weigh global risks against corporate performance.

Thursday’s session ended on a high note, albeit with some late-day easing. The Nasdaq and S&P 500 both set new all-time closing highs, while the Dow rose 192.34 points to 44,650.64. The Nasdaq edged up 19.33 points to 20,630.66, and the S&P 500 gained 17.20 points to end at 6,280.46.

Despite the bullish momentum, uncertainties persist. Trump’s trade threats show no signs of slowing. On Wednesday, he posted on Truth Social that copper imports would soon be hit with a 50% tariff starting next month. Additional letters addressed to leaders in countries like Libya, Iraq, Sri Lanka, Moldova, and Brunei laid out further tariff plans.

“Trump is throwing out numbers left, right and centre, and investors have begun to dismiss anything that isn’t set in stone,” Coatsworth remarked.

“So many of Trump’s decisions have either been rolled back, forgotten about, or kicked down the road,” he continued. “For investors, that means a shift in focus back to economic data and corporate news flow as key drivers for markets.”

In other developments, jobless claims data released by the Labor Department revealed that initial unemployment claims fell slightly to 227,000 for the week ending July 5, down 5,000 from the previous week. Analysts had expected an increase to 235,000.

Meanwhile, airline stocks led Thursday’s gains, with the NYSE Arca Airline Index surging 7.8%—its strongest level in four months—after Delta Air Lines (NYSE:DAL) reported impressive earnings and reinstated its annual guidance, sending its stock up 12%.

The steel sector also performed well, supported by a 1.8% rise in the NYSE Arca Steel Index. Energy, biotech, and financial shares made solid contributions, while tech sub-sectors like software and networking saw modest declines.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

The U.S. dollar nudged higher on Friday following President Donald Trump’s recent tariff announcements, which boosted demand for the greenback as a safe-haven asset. Meanwhile, the British pound came under pressure after disappointing growth data.

By 04:55 ET (08:55 GMT), the Dollar Index, measuring the dollar against a basket of six major currencies, climbed 0.2% to 97.500, positioning itself for a weekly gain close to 0.6%.

Safe-haven demand lifts the dollar

On Thursday evening, Trump declared a 35% tariff on all Canadian imports effective August 1, along with plans to impose broad tariffs ranging from 15% to 20% on several other trading partners. This followed earlier correspondence from the president outlining revised tariff rates for multiple countries.

Although the dollar has strengthened this week, market reaction to these latest tariffs has been relatively subdued compared to the dramatic moves seen after April’s so-called “Liberation Day,” yet investors remain cautious.

The USD/CAD pair rebounded 0.3% to 1.3699 after an initial sharp drop of over 0.5% overnight.

Beyond trade policy uncertainties, the dollar remains sensitive to U.S. economic data, as traders focus on clues about the Federal Reserve’s potential interest rate cuts.

Analysts at ING noted, “The fifth consecutive decline in initial jobless claims yesterday supports the view that a severe weakening in the labor market is unlikely to trigger an immediate Fed rate cut as early as September. This increases the importance of upcoming inflation data due Tuesday.”

Sterling falters on weaker GDP figures

In Europe, the euro slipped 0.2% to 1.1685 against the dollar, set for a weekly loss near 0.8%.

Trump’s tariff announcement on Canadian goods has sparked speculation about whether the European Union might be next to receive a formal tariff notice, casting doubt over ongoing trade negotiations with Washington.

Economic data showed consumer price inflation in France edged up to 0.9% in June, slightly exceeding preliminary estimates of 0.8%. Conversely, German inflation cooled to 2.0% in June, indicating that the European Central Bank may have scope to ease monetary policy further—likely in September—to support economic growth.

As ING analysts observed, “EUR/USD briefly dipped to 1.1670 yesterday. While short-term risks appear balanced, with a slight tilt to the downside, the absence of fresh data suggests the pair could hover around 1.170 for now.”

The British pound fell 0.3% to 1.3532 versus the dollar, on track for a weekly decline near 1%, after data revealed the UK economy unexpectedly contracted for the second consecutive month in May.

Figures released by the Office for National Statistics on Friday showed UK GDP declined 0.1% month-on-month in May, following a sharper 0.3% drop in April—the largest since October 2023.

ING analysts commented, “The upcoming jobs report next Thursday will provide further insights. Should conditions remain weak, it would heighten pressure on the Bank of England to accelerate interest rate cuts.”

Yen faces steep weekly losses

Elsewhere, USD/JPY rose 0.4% to 146.90, with the Japanese yen on course for a 1.7% weekly decline as markets digested a slew of tariff announcements and prepared for further trade-related developments.

The USD/CNY pair edged down 0.1% to 7.1709, while AUD/USD inched up 0.1% to 0.6577, on track for a weekly gain following the Reserve Bank of Australia’s unexpected decision to keep interest rates steady this week.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

U.S. stock futures pulled back on Friday following President Donald Trump’s announcement of increased tariffs on Canadian goods, fueling fears that more trading partners could face higher duties and putting pressure on global commerce. Meanwhile, Nvidia (NASDAQ:NVDA) surpassed a market value of $4 trillion, and Bitcoin hit new record prices.

Trump sets 35% tariff on Canada

Late Thursday, President Trump intensified his trade dispute by declaring that a 35% tariff on all imports from Canada will take effect starting August 1. He also signaled plans to impose broad tariffs ranging from 15% to 20% on many other countries.

Trump communicated the decision in a letter to Canadian Prime Minister Mark Carney, which he shared on social media. The tariff hike would exceed the current 25% rate but would still exempt goods covered by the US-Mexico-Canada Agreement. Energy and fertilizer imports would also maintain existing 10% tariffs.

The president has expanded his trade actions recently, introducing new tariffs on several nations including key allies such as Japan and South Korea, as well as a 50% levy on copper imports.

U.S. futures dip amid trade concerns

Futures for major U.S. indexes retreated Friday from recent highs amid worries that Trump’s tariff moves could hamper economic growth worldwide. At 03:20 ET, S&P 500 futures fell 0.4%, Nasdaq 100 futures dropped 0.2%, and Dow futures declined 0.5%.

Although Thursday saw record closes for the S&P 500 and Nasdaq Composite, markets are cautious heading into the weekend as investors weigh the potential fallout of a full tariff rollout on Canadian products starting August.

Focus has also shifted toward the European Union, with officials hoping to finalize trade agreements before tariffs come into effect.

Nvidia surpasses $4 trillion market cap

On Thursday, Nvidia’s valuation crossed the $4 trillion mark for the first time, underscoring its dominance in the AI chip sector. The stock closed at $4.004 trillion, reflecting an 89% rise since hitting lows in April.

This milestone highlights the soaring demand for AI technology, a key growth driver for Nvidia. CEO Jensen Huang told MSNBC’s Morning Joe, “We’ve reinvented computing like never before, transforming the industry over the past three decades — and especially in the last five years.”

Bitcoin hits new highs

Bitcoin surged past $118,000 on Friday, reaching fresh all-time highs fueled by strong institutional buying and supportive U.S. policies. At 03:20 ET, the cryptocurrency was up 5.6% to $117,670 after peaking at $118,320 earlier in the session.

Investor appetite for bitcoin in treasury portfolios and ETFs continues to grow. U.S. spot bitcoin ETFs reported net inflows of $1.18 billion as of Thursday, marking six consecutive days of gains, with total trading volumes across 12 ETFs hitting $6.3 billion — the highest since late May.

Earlier this year, the Trump administration endorsed a strategic Bitcoin reserve, reinforcing a positive regulatory environment. Further optimism came from a recent Chinese regulatory meeting advising local officials on stablecoins and digital currencies, signaling a possible easing of China’s digital asset stance.

Oil prices rise on Russia sanction speculation

Oil prices climbed Friday amid speculation of tighter sanctions on Russia, although gains were limited by concerns over tariffs and increased output from OPEC+.

At 03:20 ET, Brent crude futures were up 0.4% at $68.94 per barrel, and U.S. West Texas Intermediate rose 0.6% to $66.96.

Both benchmarks had fallen more than 2% on Thursday as investors weighed the impact of new tariffs on the global economy and oil demand. Still, sentiment improved after President Trump voiced frustration over the stalled peace talks between Russia and Ukraine, raising the likelihood of additional sanctions on the world’s third-largest oil producer.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

European shares declined on Friday following new tariff announcements by U.S. President Donald Trump targeting Canada, sparking concerns that the European Union could be next in line for increased trade restrictions.

By 08:05 GMT, Germany’s DAX index fell 0.8%, France’s CAC 40 slipped 0.6%, and the U.K.’s FTSE 100 edged down 0.2%.

Trump escalates trade tensions

On Thursday evening, Trump unveiled a 35% tariff on Canadian imports effective August 1, alongside plans to impose broad tariffs ranging from 15% to 20% on various other trading partners.

These moves have raised worries that the EU may soon receive similar tariff notices, putting trade negotiations between Washington and Brussels in jeopardy.

EU Trade Commissioner Maros Sefcovic recently acknowledged progress toward a trade framework but warned no final agreement has been reached, and Trump’s patience may wear thin.

UK economy contracts again in May

On the economic front, French consumer inflation was revised up to 0.9% for June, slightly exceeding forecasts, while German inflation eased to 2.0%. These trends suggest the European Central Bank retains ample scope to ease monetary policy further, likely in September, to support growth.

In June, the ECB cut borrowing costs for the eighth time in a year, lowering its key deposit rate by 25 basis points to 2.0%.

Meanwhile, the Bank of England may also consider rate cuts soon after UK GDP unexpectedly shrank for a second consecutive month in May.

Official data from the Office for National Statistics showed a 0.1% monthly decline in UK GDP for May, following a sharper 0.3% drop in April — the largest fall since October 2023.

BP’s production outlook impresses investors

In corporate news, BP (LSE:BP.) shares rose after the oil giant forecast higher-than-expected upstream production for Q2, despite pressures from lower gas and oil prices.

Other corporate updates

Swedish hotel operator Pandox (USOTC:PNDXF) reported a 2% year-on-year rise in second-quarter revenues, supported by recent acquisitions.

UniCredit (BIT:UCG) reaffirmed its plans to pursue a takeover of Germany’s Commerzbank (TG:CBK), despite opposition from the German government. CEO Andrea Orcel told board members that the bank will continue its bid, highlighting a recent increase in its equity stake to over 9%.

Oil prices edge up amid sanction worries

Oil prices rose slightly Friday, supported by growing expectations of new sanctions on Russia, although gains were limited by tariff concerns and increased OPEC+ output.

By 04:05 ET, Brent crude futures were up 0.2% at $68.80 per barrel, and West Texas Intermediate climbed 0.3% to $66.79 per barrel.

Both contracts had fallen more than 2% the previous day as investors fretted about the economic fallout from Trump’s tariff escalation.

Sentiment improved after Trump voiced frustration with Russian President Vladimir Putin over stalled Ukraine peace talks, signaling a possibility of harsher penalties against the oil-producing nation.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

UK equities opened lower on Friday following the release of May’s economic data showing the British economy contracted for the second month running. This adds to pressure on the Bank of England to potentially ease monetary policy.

At 07:45 GMT, the FTSE 100 index slipped 0.07%, while the British pound weakened 0.1% against the US dollar, trading near 1.35. Across Europe, Germany’s DAX fell 0.6% and France’s CAC 40 declined 0.4%.

UK GDP falls short of expectations

The Office for National Statistics reported that UK GDP decreased by 0.1% in May, following a 0.3% drop in April—the largest since October 2023. This result was below economists’ forecast of 0.1% growth. Industrial output dropped 0.9%, and manufacturing production fell by 1.0% during the month.

UK Finance Minister Rachel Reeves called the figures “disappointing” but affirmed her commitment to reigniting economic growth.

BP forecasts increased Q2 oil and gas production, expects net debt reduction

BP (LSE:BP.) provided a trading update, anticipating that upstream production in Q2 will surpass Q1 levels, thanks to higher output from its US onshore operations at BPX Energy and growth in gas and low-carbon segments. The company also expects net debt to slightly decrease by the end of the quarter compared to earlier months.

Warehouse REIT favors enhanced Blackstone bid over Tritax offer

In corporate developments, Warehouse REIT’s (LSE:WHR) board has recommended an improved cash takeover bid from US private equity firm Blackstone (NYSE:BX), turning down a competing offer from Tritax Big Box (LSE:BBOX).

Flutter to buy Boyd Gaming’s 5% stake in FanDuel

Flutter Entertainment (LSE:FLTR) announced plans to purchase Boyd Gaming’s (NYSE:BYD) 5% share in FanDuel for roughly $1.76 billion, gaining full control over the online betting platform.

Heathrow aims to increase annual passenger capacity by 10 million by 2031

Heathrow Airport revealed plans to expand capacity by 10 million passengers per year by 2031, contingent on regulatory approval for higher fees and modifications to existing terminals.

Unilever divests Venezuelan ice cream business

Unilever (LSE:ULVR) has sold its Venezuelan ice cream operations, including the Tio Rico brand, to Mack de Venezuela, a local truck company representing Mack, Volvo, and Dongfeng brands. Separately, Unilever’s Magnum spin-off has appointed Jochanan Senf as the new CEO of Ben & Jerry’s, effective mid-July.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

BP (LSE:BP.) signaled on Friday that second-quarter oil production will rise alongside a solid trading performance, though earnings may be constrained by softer price realizations in upstream segments. Shares increased 2.2% as of 07:48 GMT.

The company expects upstream output to surpass first-quarter levels, with notable growth in oil production, particularly driven by BPX Energy’s operations. Gas and low carbon energy output also edged higher.

Price realizations in gas and low carbon energy declined slightly by $0.1 billion to $0.3 billion, influenced by fluctuations in non-Henry Hub natural gas prices. In the oil production segment, a larger decrease of $0.6 billion to $0.8 billion was seen, attributed to changes in production mix and regional pricing in the United States and United Arab Emirates.

BP’s customers and products segment anticipates stronger results due to seasonally increased volumes and improved margins on fuels. The refining margin averaged $21.10 per barrel in Q2, up from $15.20 in the previous quarter, supported by less turnaround downtime. Oil trading activity remained robust.

During the quarter, Brent crude prices averaged $67.88 per barrel, down from $75.73 in Q1, while Henry Hub gas prices slipped to $3.44 per mmBtu from $3.71. The one-month lagged WTI CMA and WCS crude differential narrowed to $10.01 per barrel from $11.97.

BP projects a slight reduction in net debt by the end of the quarter. Charges related to other businesses and corporate expenses are expected to be consistent with earlier quarters.

The company anticipates post-tax adjusting items ranging from $0.5 billion to $1.5 billion this quarter, which will be excluded from its underlying replacement cost profit.

BP maintains its full-year guidance with capital expenditures at around $14.5 billion and an effective underlying tax rate near 40%. Divestment proceeds are expected between $3 billion and $4 billion, mainly in the second half of 2025.

Payments associated with the Gulf of Mexico oil spill are forecasted at $1.2 billion pre-tax for the year, with $1.1 billion expected in Q2.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Following Greggs’ (LSE:GRG) recent profit warning, Jefferies released an updated analysis showing a slight weakening in the bakery chain’s pricing position compared to some competitors. According to their latest Sandwich Price Tracker, Greggs’ sandwich prices have risen by 6% over the past year. This growth aligns closely with Sainsbury’s (LSE:SBRY) 5% increase and Boots’ 7.5%, while outpacing Tesco (LSE:TSCO) and Pret, both of which maintained stable prices, and M&S (LSE:MKS), which saw a modest 1% rise.

Looking at a two-year span, Greggs’ prices climbed 10%, similar to Boots’ 12% and Sainsbury’s 9%, yet still higher than Tesco’s 5%, M&S’s 3%, and Pret’s 1%. Jefferies notes these figures reflect Greggs’ own reported price hikes: 4-5% early in the year followed by a further 1-2% increase in May.

Despite this slight softening in pricing advantage, Greggs remains notably more affordable than key competitors like Boots, M&S, and Pret. Jefferies suggests the recent profit warning mainly reflects short-term weather disruptions rather than a fundamental shift in the brand’s appeal. In fact, Greggs’ like-for-like sales for March through May exceeded expectations with roughly 4% growth.

The research house views the current market dip as a buying opportunity. They emphasize Greggs’ strong value proposition, solid brand loyalty, steady market share gains, healthy margins, and promising store expansion plans with projected cash returns above 30%. Additionally, Greggs’ current market valuation hovers near a decade-long low, potentially enhancing its investment appeal.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.

Bitcoin (COIN:BTCUSD) continued its upward momentum on Friday, breaching a new all-time high above $118,000, buoyed by accelerating inflows into spot exchange-traded funds (ETFs) and a surge in institutional demand. The world’s leading cryptocurrency climbed 6.1% to $118,310.80 as of 05:54 GMT, marking its third straight week of gains.

Record ETF Inflows Reflect Soaring Institutional Interest

Market enthusiasm was evident in both price action and volume. Spot trading and on-chain activity spiked sharply, with data from SoSoValue showing $1.18 billion in net inflows into U.S.-listed spot Bitcoin ETFs as of Thursday—extending a six-day streak of strong inflows.

BlackRock’s iShares Bitcoin Trust (IBIT) led the surge, drawing $448.5 million. Fidelity’s FBTC and Bitwise’s BITB also posted notable gains. Overall, daily trading volume across the twelve U.S.-listed Bitcoin ETFs reached $6.3 billion, the highest since late May.

Pro-Crypto Policy Signals and Trump’s ETF Ambitions Stir Market Optimism

The bullish momentum is also underpinned by increasing institutional integration of Bitcoin into corporate treasuries and ETF portfolios, reflecting confidence in long-term crypto adoption.

Supportive signals from Washington added fuel to the rally. The Trump administration’s endorsement of a federal Bitcoin reserve earlier this year has set a more welcoming tone for the digital asset sector.

Adding to the momentum, Trump Media & Technology Group (NASDAQ:DJT)—linked to former President Donald Trump—recently filed to launch a “Crypto Blue Chip ETF”, marking its third such filing this month.

Investors are also eyeing “Crypto Week” starting July 14, when U.S. lawmakers are expected to advance key legislation targeting the digital asset space, including potential reforms on crypto taxation and compliance standards.

Altcoins Ride the Bitcoin Wave: Cardano Leads Gains

Bitcoin’s record-setting move reverberated across the broader crypto market, with major altcoins posting double-digit gains.

• Ethereum (ETH) soared 8.5% to $3,019.06
• XRP added 7.5%, reaching $2.60
• Solana (SOL) gained 6%
• Cardano (ADA) outperformed, jumping 13%
• Polygon (MATIC) climbed 9%

Even meme coins joined the rally—Dogecoin (DOGE) surged 12%, while the politically-themed $TRUMP token rose 11%.

With momentum building and key legislation on the horizon, markets appear poised for further volatility and potential upside in the weeks ahead.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.