Stock Markets Today, August 7th. Tariffs are triggered, the ECB: "They're making the economic outlook exceptionally uncertain."
Tariffs are coming. And Trump immediately reminded us of this on Truth . "It's midnight!" the US president wrote when the tariffs imposed by his administration went into effect . "Billions of dollars in tariffs are now flowing into the United States of America." Markets are reacting cautiously in Europe, while in Asia, the prospect of 100% exemptions from chip tariffs for companies investing in the United States is causing stock markets to breathe a sigh of relief.
Europe cautiously rises with tariffs, euro at $1.169
European stock markets are moving positively but cautiously with the introduction of US tariffs on the Old Continent. The regional index, the Stoxx 600, is little changed, with tech headlines emerging, while Trump's threat of 100% tariffs on chip exporters was accompanied by exemptions for companies investing in the United States. Milan is up 0.38%, with the FTSE MIB holding steady at 41,000 points, while Paris is up 0.35%. Frankfurt is recovering (+0.44%), while German industrial production in June fell 1.9%, more than expected. Madrid is the best performer, rising 0.64%. London, however, is down (-0.38%). Zurich is flat (+0.07%), with Switzerland facing tariffs of 39%.
The Swiss president's diplomatic mission to Washington to avert the imposition of tariffs at the last minute appears to have produced no breakthrough. Among the hardest-hit sectors remains the pharmaceutical industry, with the threat of tariffs of up to 250%. The spread between Italian government bonds (BTPs) and German Bunds remains stable at 80 points, with the yield on the 10-year Italian bond at 3.44%. Among commodities, oil is rising, with WTI approaching $65 (+0.7%) and Brent crude above $67 (+0.6%). Gas prices remain weak, trading just above €33 per megawatt-hour (-0.5%). Finally, the euro continues to appreciate against the dollar, exchanging hands at 1.1694 to the greenback.
ECB: "Eurozone growth slows, tariffs remain uncertain."
A "significant slowdown in economic growth in the second quarter" for the Eurozone and "moderation of momentum in the short term, in an environment of high uncertainty." This is what the ECB reports in its economic bulletin, which notes that "recent surveys point to overall modest expansion in both the manufacturing and services sectors. At the same time, higher actual and expected tariffs, the strengthening of the euro, and persistent geopolitical uncertainty are reducing firms' propensity to invest."
ECB: "Tariffs and the strengthening euro are reducing businesses' propensity to invest."
"In the first quarter of 2025, the economy recorded stronger-than-expected growth, partly due to firms anticipating exports ahead of expected tariff increases. However, growth was also supported by an increase in private consumption and investment. Recent surveys show modest overall expansion in both the manufacturing and services sectors. At the same time, higher actual and expected tariffs, the strengthening of the euro, and persistent geopolitical uncertainty are reducing firms' propensity to invest." This is according to the ECB's economic bulletin.
Europe opens with mixed results
European stock markets started mixed on the day US tariffs were imposed on Europe. Paris rose 0.21%, with the CAC-40 at 7,651 points. Frankfurt fell 0.06%, with the DAX at 23,910 points, while German industrial production fell 1.9% in June, exceeding estimates. London also lost ground (-0.27%, the FTSE 100 at 9,139 points).
Oil on the rise
Oil prices rose on Asian markets after five consecutive sessions of declines, driven by new US tariffs that took effect today and geopolitical tensions. WTI futures rose 0.56% to $64.71 a barrel, while Brent crude futures rose 0.49% to $67.21. President Trump's decision to raise tariffs on Indian goods to 50% to punish New Delhi for purchasing Russian oil, effective in three weeks, has raised concerns about supply diversion and broader tensions with major consumers. However, traders are keeping a close eye on a potential Trump-Putin meeting following the reported progress in talks with Moscow, raising expectations of a potentially softer US stance toward Russia. Meanwhile, a larger-than-expected 3 million barrel draw in US crude inventories has supported prices.
Tariffs kick in, Trump at midnight: "Billions of dollars are coming to the US."
Tariffs are coming. And Trump immediately reminded us of this on Truth . "It's midnight!" the US president wrote when the tariffs imposed by his administration went into effect. "Billions of dollars in tariffs are now flowing into the United States of America."
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