Surprise tariff threatens to upend trade flows from Switzerland, other hubs.

Gold futures surged while European stocks and US futures steadied at the end of a week in which markets were buffeted by tariffs, geopolitical developments and corporate earnings.

Europe’s Stoxx 600 index edged higher, on track for its biggest weekly gain since May. Contracts for US stock indexes rose about 0.2%. The Nikkei-225 index advanced 1.8% after Japan’s trade negotiator said the US agreed to end so-called stacking on universal tariffs and cut car levies. 

Gold futures in New York jumped after the US put tariffs on bullion bars, threatening to upend trade flows from Switzerland and other key refining hubs. The most-active contract climbed to an all-time intraday high above $3,534 an ounce, widening its premium over the spot price in London.

The S&P 500 is near a record high following a 30% surge from its April lows, supported by robust corporate earnings and hopes the Federal Reserve will cut interest rates to support the economy as the labor market shows signs of weakening. But some firms have warned clients to prepare for a near-term pullback amid sky-high valuations and continued tariff uncertainty.

“Second-quarter earnings confirm corporate resilience continues. Overall, margins have been steady while firms’ commentary indicates that corporates have been largely adept at managing the impact from tariffs so far,” said Barclays Plc strategists led by Emmanuel Cau. “That doesn’t mean tariff uncertainty has gone away completely given Trump policy making remains erratic.”

A gauge of the dollar was was flat and Treasury yields were little changed after Thursday’s a weak sale of 30-year debt signaled waning appetite for US debt.

Oil headed for the longest losing run since 2021, falling for a seventh session as traders judged that US efforts to end the war in Ukraine would not impact overall supplies.

In his latest trade salvo, President Donald Trump escalated tensions by targeting India and imposing a 39% levy on Swiss exports to the US, while saying he’s “getting very close to a deal” with China. The US also confirmed it would end stacking of universal tariffs on Japan and cut car levies as promised. The about-turn on Japan has raised questions about the US trade deal with the European Union, said Jochen Stanzl, chief market analyst at CMC Markets.

“Since the tariff agreement between the U.S. and the European Union, some clarity has emerged, but confusion around its implementation is just beginning to surface,” Stanzl said. “In Japan, there is relief today upon hearing that the various tariffs will not be cumulative. However, it remains unclear whether the same rules apply for Japan and the EU. The complexities surrounding tariffs highlight the unpredictability in implementation, as evidenced by the recent surge in gold prices.”

In geopolitical news, Israeli Prime Minister Benjamin Netanyahu secured cabinet approval on Friday for a military takeover of Gaza City, which he described as part of a final push to topple Hamas after 22 months of fighting and recover its last 50 hostages, dead or alive. 

Hopes of a truce in the Russia-Ukraine war rose after Trump said he’d be willing to meet with Vladimir Putin, even if the Russian leader hadn’t yet agreed to also sit down with Ukrainian President Volodymyr Zelenskiy.

Meanwhile, Fed Governor Christopher Waller is emerging as a top candidate to serve as the central bank’s chair among President Trump’s advisers as they look for a replacement for Jerome Powell, according to people familiar with the matter.

Trump said he had chosen Council of Economic Advisers Chairman Stephen Miran to serve as a Fed governor. The US president said that Miran, who will need to be confirmed by the Senate, would only serve the expiring term of Adriana Kugler, which expires in January.

“Having a more dovish Federal Reserve governor on the table is definitely better,” Ivy Ng, a CIO at DWS, said in a Bloomberg TV interview. “But in the end, the Federal Reserve is still more data driven, so we focus a lot on the economic data.”


Munich Re shares drop as much as 8.6%, dragging the insrance sector lower, after the German firm cut its revenue guidance for the full year.
Lotus Bakeries NV jumped as much as 8.3% after the maker of Biscoff cookies reported strong sales growth despite facing tough comparatives and production limits on its key product.
TBC Bank Group Plc slumped more than 13% after reporting second-quarter earnings.
Intel Corp. Chief Executive Officer Lip-Bu Tan said he’s got the full backing of the company’s board, responding for the first time to Trump’s call for his resignation over conflicts of interest.
Meta Platforms Inc. has selected Pacific Investment Management Co. and Blue Owl Capital Inc. to lead a $29 billion financing for its data center expansion in rural Louisiana.
Chugai Pharmaceutical Co. shares tumbled the most since 1977 after late-stage trial data on an obesity drug it licensed to Eli Lilly & Co showed disappointing results.
General Motors Co. plans to purchase electric-vehicle batteries from China to power its upcoming entry-level EV until it can procure US-made batteries through its partnership with South Korea’s LG Energy Solution.

 Some of the main moves in markets:


The Stoxx Europe 600 rose 0.2% as of 9:40 a.m. London time
S&P 500 futures rose 0.2%
Nasdaq 100 futures rose 0.2%
Futures on the Dow Jones Industrial Average rose 0.1%
The MSCI Asia Pacific Index was little changed
The MSCI Emerging Markets Index fell 0.6%

Currencies


The Bloomberg Dollar Spot Index was little changed
The euro fell 0.2% to $1.1647
The Japanese yen fell 0.2% to 147.44 per dollar
The offshore yuan was little changed at 7.1871 per dollar
The British pound was little changed at $1.3438

Cryptocurrencies


Bitcoin fell 0.6% to $116,517.69
Ether rose 0.5% to $3,894.47

Bonds


The yield on 10-year Treasuries was unchanged at 4.25%
Germany’s 10-year yield advanced two basis points to 2.65%
Britain’s 10-year yield advanced two basis points to 4.57%

Commodities


Brent crude was little changed
Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.