European stock markets decline amid tariff and slowdown concerns

In the US, yields have sharply reduced as market participants anticipate a nearly 90% probability of a September interest rate cut, a significant increase from a 45% chance prior to the US jobs report. The 2-year yield is at 3.730%, down 22 basis points, while the 5-year yield has decreased by 16.3 basis points to 3.796%. The 10-year yield is at 4.237%, down 12.2 basis points, marking its lowest level since July 1. The 30-year yield has fallen by 7.1 basis points to 4.814%.

• German DAX down 639.50 points or -2.66% at 23,425.98.
• France’s CAC down 225.80 points or -2.91% at 7,546.17.
• UK’s FTSE 100 down 64.21 points or -0.70% at 9,068.59.
• Spain’s Ibex down 270.30 points or -1.88% at 14,126.71.
• Italy’s FTSE MIB down 1,044.87 points or -2.55% at 39,942.81.

In Germany, the DAX plummeted by 639.50 points or -2.66%, settling at 23,425.98. Meanwhile, France’s CAC dropped by 225.80 points or -2.91% to close at 7,546.17. The UK’s FTSE 100 also saw a decline, albeit a smaller one, falling by 64.21 points or -0.70%, with a closing level of 9,068.59.

• German DAX down 3.27% (its worst week since the end of March).
• France’s CAC down 3.68% (worst week since the end of March).
• UK’s FTSE 100 down 0.57%.
• Spain’s Ibex down 0.78%.
• Italy’s FTSE MIB down 1.92%.

In the commodities market, crude oil prices have fallen, with trading down by .77 to .43. This decline places crude oil below its 200-day moving average of .98, signaling potential bearish sentiment among investors. Meanwhile, gold has experienced a significant upward movement, rising by or 1.6%, to reach ,342. Despite facing declines for most of the week, gold has now recorded a 0.21% weekly gain, reflecting its status as a safe-haven asset amid market volatility.

• Switzerland: 0.338%, down 2.1 bps (−5.85%).
• UK: 4.525%, down 4.7 bps (−1.03%).
• Germany: 2.677%, down 2.1 bps (−0.78%).
• Spain: 3.265%, down 0.7 bps (−0.21%).
• France: 3.348%, down 0.5 bps (−0.15%).
• Italy: 3.541%, up 0.9 bps (+0.25%).

US market indices and yields react to jobs report

Bitcoin has not been immune to market shifts, dropping by 0 to 5,542, reflecting the broader trend of volatility across asset classes.

Turning to the US markets, they remained in deep negative territory but slightly recovered from their lows. The Dow industrial average was down 428 points or -0.97%, closing at 43,705. The S&P index decreased by 73.56 points or -1.16%, finishing at 6,266.25. The NASDAQ index fell 345 points or -1.63%, ending at 20,779, while the Russell 2000 was down 33.43 points or -1.51%, closing at 2,178.21.

Commodity and cryptocurrency market movements

Spain and France also saw modest declines in their yields. Spain’s yield dropped by 0.7 basis points to 3.265%, a 0.21% decrease, while France’s yield fell by 0.5 basis points to 3.348%, a 0.15% reduction. In contrast, Italy’s yield saw a slight increase, up by 0.9 basis points to 3.541%, a 0.25% rise.

Copper, after a significant drop of over 20% yesterday, is currently bouncing back with a 1.61% rise to .42. This recovery in copper prices suggests some stabilization or renewed buying interest in the commodity markets.

Turning to the cryptocurrency market, Bitcoin has declined by 0, now trading at 5,542. Despite its notorious volatility, Bitcoin’s recent drop aligns with the broader trend of market uncertainty as investors react to ongoing economic developments. The fluctuations in both commodities and cryptocurrencies underscore the current climate of cautious trading and heightened market sensitivity.

market downturn intensifies with indices sharply lower

Silver prices have also seen an uptick, increasing by Commodity prices and yields are exhibiting notable volatility in the current market climate. In the oil markets, crude oil is trading down by .77, settling at .43, which positions it just below its 200-day moving average of .98. This decline is indicative of broader market concerns and shifting dynamics in supply and demand.

As European traders in London head for the exits, the major indices closed sharply lower. Tariff news and threats of a global slowdown, highlighted by the US jobs report, pushed prices down. A snapshot of the closing levels shows:

For the trading week, the German DAX recorded a 3.27% decline, marking its worst week since the end of March. Similarly, France’s CAC was down 3.68%, also its worst performance since late March. The UK’s FTSE 100 dropped 0.57%, while Spain’s Ibex and Italy’s FTSE MIB fell 0.78% and 1.92% respectively.

For the trading week:

commodity prices and yields experience volatility

In the realm of yields, the European benchmark 10-year yields mostly ended lower for the trading day. Notably, Switzerland’s yield decreased by 2.1 basis points to 0.338%, a drop of 5.85%. The UK’s yield fell by 4.7 basis points to 4.525%, representing a 1.03% decline. Germany’s yield is down by 2.1 basis points to 2.677%, a 0.78% decrease.

The European markets experienced a significant downturn as major indices closed sharply lower, driven by concerns over tariff news and the looming threat of a global economic slowdown. The robust US jobs report added to these anxieties, pushing prices further down.

The US markets have followed a similar downward trajectory, influenced by the latest US jobs report, which has intensified concerns about an economic slowdown. The Dow industrial average fell by 428 points, marking a 0.97% decline, and closed at 43,705. The S&P index also experienced a significant drop, shedding 73.56 points or 1.16%, settling at 6,266.25. Meanwhile, the NASDAQ index, known for its tech-heavy composition, plummeted 345 points or 1.63%, reaching 20,779. The Russell 2000, which tracks smaller companies, decreased by 33.43 points or 1.51%, closing at 2,178.21.

Elsewhere in Europe, Spain’s Ibex was down by 270.30 points or -1.88%, ending at 14,126.71, and Italy’s FTSE MIB experienced a substantial drop of 1,044.87 points or -2.55%, closing at 39,942.81.

Conversely, gold has experienced a resurgence, climbing or 1.6% to reach ,342. This uptick has allowed gold to edge up by 0.21% for the week, a recovery from earlier declines. Silver has also seen gains, increasing by The European benchmark 10-year yields mostly ended lower for the trading day:

In the bond market, US yields have moved sharply lower, reflecting a growing consensus among traders regarding an anticipated rate cut by the Federal Reserve. This shift in sentiment has been further exacerbated by the release of the jobs report, which has increased the likelihood of a September rate cut to nearly 90%, up from 45% prior to the report. The 2-year yield fell to 3.730%, down by 22 basis points. The 5-year yield declined to 3.796%, a drop of 16.3 basis points, while the 10-year yield decreased to 4.237%, marking a reduction of 12.2 basis points. The 30-year yield also saw a decline, down 7.1 basis points at 4.814%. Notably, the benchmark 10-year yield is at its lowest level since July 1, when it stood at 4.187%.