Market Brief: Trump’s Tariffs Shock Markets

See a summary of the market themes and trends from today's US session!

  • FX: President Trump triggered a rush for safety midway through today’s US session when he tweeted that the US would impose 10% tariffs on $300B of Chinese goods that are not currently taxed. As a result, the safe haven yen was the strongest major currency on the day and the risk-sensitive Aussie was the weakest.
  • AUD/JPY fell 2% on the day and is on track for its lowest close since 2010.
  • See our preview for tomorrow’s NFP report.
  • Commodities: Oil cratered on the surprise announcement, falling by more than 7% on the day. Gold shined, rising 1% as risk assets fell.


  • US indices collapsed on the tariff headlines, dumping from +1% on the day to trade down by more than 0.5% across the board.
  • Utilities (XLU) were the strongest sector, with their generally high dividends in demand as bond yields tanked. Energy stocks (XLE) were the weakest major sector, dragged down by the big drop in oil prices.
  • Stocks on the Move:
    • Verizon (VZ) managed to buck the broader weakness and gain about 0.5% after reporting strong Q2 earnings.
    • Yum Brands (YUM, +4%) reported better-than-expected declines in earnings and revenue.
    • General Electric’s (GE) CFO is stepping down after less than 2 years, prompting the stock to fall 4% on the day.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.