As Trump announces new tariff rates for 92 countries while FTSE 100 opens down, representatives from Hargreaves Lansdown have shared a market report.
Derren Nathan, Head of Equity Research, Hargreaves Lansdown, said:
“Countries playing tariff poker with Donald Trump have had their bluff called with new US import tax rates announced for 92 nations shortly before the 1 August deadline came into play, with rates ranging from 10% to 41%. Mexico was the only reprieve of note, earning a 90-day extension to agree a deal. China already faces a separate deadline of 12 August.
The FTSE has dropped back below 9,100 but a little profit taking is to be expected after climbing 4% in July. Earnings season has seen some key names release robust numbers with British Airways owner IAG adding to the list of companies that have flown above analyst forecasts.
Brent crude prices are stable today at around $71.6 per barrel largely shrugging off the latest twists and turns in the tariff saga. Overall import duties aren’t as severe as initially feared. And on the supply side Donald Trump’s got Russian oil firmly in his sights with threats to increase Tariffs to buyers of Russian crude, a move that’s already seen Indian refineries pause purchases from the world’s third largest producer
US stock futures are also pointing to a weak open, with non-farm payrolls and unemployment the other key focus for the day. Markets have become increasingly pessimistic about the prospects of a September rate cut by the Fed. Job growth is expected to have slowed to 110,000 in July but anything faster will see the probability of imminent rate cuts diminish further.
It’s been a mixed bag for the two Magnificent Seven names that reported after the bell last night. Amazon shares fell 7% in off-market trading after cloud growth at AWS came in a little weaker than expected. Investors were keener for a bite of Apple shares which rose by 2%, an underwhelming reaction given the strength of results, and reflecting some doubts about the company’s position in the AI arms race.”
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“The A-team was overshadowed by the mighty M’s this quarter. Amazon and Apple both delivered decent results but were overshadowed by exceptional performances from Meta and Microsoft earlier in the week.
Amazon delivered across the board – but the spotlight was firmly on AWS, and it didn’t quite shine as brightly as expected. While Microsoft and Alphabet have already shown strong momentum in cloud growth, AWS wasn’t the knockout many wanted to see, highlighting just how tightly investor sentiment is tied to the AI narrative right now. The focus is squarely on Amazon’s cloud business. Interestingly, shares barely budged despite management revealing on the call that AWS’s backlog grew 25% – a solid figure by any standard. The catch? Supply constraints meant they couldn’t fully capitalise on that demand. For now, markets are demanding hard numbers over optimistic commentary.
Apple is caught in a sentiment trap. On paper, the company delivered one of its strongest sets of results in recent years – robust iPhone sales, a return to growth in China, and encouraging guidance. Ordinarily, that would send shares meaningfully higher. There’s a sense of unease hanging over Apple, something we haven’t seen in a long time. Scepticism around its AI positioning, combined with lingering tariff uncertainty, continues to weigh on investor confidence. Apple should be a leading name in AI hardware, but that’s simply not the case. Apple Intelligence was a flop, so a lot of hope now lies in an AI-powered Siri – but that might not come until next year. Brand loyalty gives Apple time to get the AI transition right, but it needs to start delivering.”
