Global shares slide after Trump’s tariff salvo
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Diverging Reports Breakdown
Cboe tops profit estimates as market volatility boosts hedging activity
Derivatives exchange Cboe Global Markets (CBOE.Z) beat Wall Street estimates for second-quarter profit on Friday. Options trading business revenue jumped 19% to $364.8 million, while Europe and Asia-Pacific revenue climbed 30%. Average daily volume in index options hit 4.7 million contracts during the quarter ended June 30, compared with 4 million a year earlier. Last week, CBOe announced plans to wind down its Japanese equities business.
Aug 1 (Reuters) – Derivatives exchange Cboe Global Markets (CBOE.Z) , opens new tab beat Wall Street estimates for second-quarter profit on Friday, as looming economic uncertainties fueled market turmoil and boosted options trading.
Investors and portfolio managers rushed to hedge their positions during the period, responding to a spike in market volatility fueled by renewed geopolitical tensions in the Middle East and unpredictable tariff policies.
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Cboe’s options trading business revenue jumped 19% to $364.8 million, while Europe and Asia-Pacific revenue climbed 30% to $70 million.
The company has “achieved another quarter of record net revenue and strong adjusted earnings growth, highlighting the durability across our exchange ecosystem”, said Chief Financial Officer Jill Griebenow.
Average daily volume in index options hit 4.7 million contracts during the quarter ended June 30, compared with 4 million a year earlier.
Cboe’s adjusted net income rose to $257.8 million, or $2.46 per share, from $226.2 million, or $2.15 per share, a year earlier. Analysts on average estimated $2.42 per share, according to data compiled by LSEG.
The company’s net revenue rose 14% to a record high of $587.3 million, also beating the estimate of $576.2 million.
Last week, Cboe announced plans to wind down its Japanese equities business, citing challenges to financial sustainability.
Its shares have risen 23.4% this year, compared with a gain of 19.8% and 24%, for CME and NYSE-parent Intercontinental Exchange, respectively.
Reporting by Prakhar Srivastava in Bengaluru; Editing by Shilpi Majumdar
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Global shares in red after US jobs data, Trump’s tariff salvo
U.S. economy added 73,000 nonfarm payrolls last month, below expectations. The unemployment rate ticked up to 4.2%. The softer labour market figures arrived a day after Trump signed an executive order imposing tariffs ranging from 10% to 41% on several major trading partners. Markets imply around a 90% chance of a rate cut next month, compared with about 45% before the jobs data, according to LSEG data. The yen had weakened past 150 per dollar for the first time since April but strengthened to 148.71 per dollar after the data. In commodity markets, oil prices continued to fall after a 1% plunge on Thursday.Spot gold rose 1.3% to $3,332 an ounce, while the dollar index was last down 1% on the day. The pan-European STOXX 600 (.STOXX) fell 1.4%, putting it on track for its biggest weekly drop since Trump announced his first major wave of tariffs on April 2.
Summary
Companies US announces new tariff rates ahead of trade talks deadline
Asian, European shares head for worst week since April
US July nonfarm payrolls weaker than expected, June revised down
LONDON, Aug 1 (Reuters) – Global shares remained in the red on Friday after weaker than expected U.S. jobs data prompted markets to add to rate cut bets from the Federal Reserve, following earlier losses sparked by U.S. President Donald Trump’s latest tariffs salvo.
Nasdaq futures and S&P 500 futures were down about 1% after the data, broadly in line with where they were before the release.
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The pan-European STOXX 600 (.STOXX) , opens new tab fell 1.4%, taking its weekly fall to about 2% and putting it on track for its biggest weekly drop since Trump announced his first major wave of tariffs on April 2.
The U.S. economy added 73,000 nonfarm payrolls last month, below expectations for 110,000 in a Reuters survey of economists. The unemployment rate ticked up to 4.2%.
“There’s no way to pretty-up this report,” said Brian Jacobsen, chief economist at Annex Wealth Management.
“Last year the Fed messed up by not cutting in July so they did a catch-up cut at their next meeting. They’ll likely have to do the same thing this year.”
Money market traders added to bets for a rate cut from the Fed at its September meeting. Markets imply around a 90% chance of a rate cut next month, compared with about 45% before the jobs data, according to LSEG data.
The softer labour market figures arrived a day after Trump signed an executive order imposing tariffs ranging from 10% to 41% on U.S. imports from several major trading partners. Rates were set at 25% for India’s U.S.-bound exports, 20% for Taiwan’s, 19% for Thailand’s and 15% for South Korea’s
He also increased duties on Canadian goods to 35% from 25% for all products not covered by the U.S.-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal.
“The August 1 announcement on reciprocal tariffs is somewhat worse than expected,” said Wei Yao, research head and chief economist in Asia at Société Générale.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab fell 1.5%, bringing the total loss this week to roughly 2.7%.
The U.S. dollar had earlier found support from fading prospects of imminent U.S. rate cuts, but reversed course after the data. The dollar index , which measures the currency against six others, was last down 1% on the day.
The yen had weakened past 150 per dollar for the first time since April but strengthened to 148.71 per dollar after the data. The Bank of Japan held interest rates steady on Thursday and revised up its near-term inflation expectations, but Governor Kazuo Ueda sounded a little dovish in the press conference.
Two-year Treasury yields , which are sensitive to changes in interest rate expectations, dropped 17.5 basis points to 3.7761%. Benchmark 10-year yields slipped 9 basis points to 4.273%.
In commodity markets, oil prices continued to fall after a 1% plunge on Thursday. Brent dipped 0.3% to $71.55 per barrel, while U.S. crude fell 0.1% to $69.22 per barrel.
Spot gold rose 1.3% to $3,332 an ounce.
This range plot displays U.S. President Donald Trump’s tariff rates, compared to the most recent previously announced or threatened tariff rates, for the U.S.’s trading partners on Aug. 1, 2025.
Additional reporting by Stella Qiu and Rae Wee. Editing by Andrew Heavens and Mark Potter
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CNH Industrial posts upbeat results as cost-cuts cushion slump in equipment demand
Farm and construction equipment maker CNH Industrial (CNH.N) reported second-quarter profit and revenue above Wall Street estimates on Friday. Its efforts to reduce costs helped offset pressures from lower sales and production.Shares of the company, famous for its Case IH and New Holland brands, rose 1.6% in pre-market trading. They have risen more than 14% since the start of the year.
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CNH expects 2025 sales to drop below last year’s levels and warns that, combined with reduced production, this will likely put further pressure on its margins. However, its efforts to reduce costs will partially mitigate the erosion.
Demand for new equipment has taken a hit from a prolonged weakness in farmer income and weak commodity prices, prompting manufacturers to scale back production as farmers postpone or reassess major purchase decisions.
Shares of the company, famous for its Case IH and New Holland brands, rose 1.6% in pre-market trading. They have risen more than 14% since the start of the year.
CNH reported an adjusted profit of 17 cents per share for the quarter ended June 30, above analysts’ expectations of 14 cents per share, according to data complied by LSEG.
Its total costs and expenses in the reported quarter dropped to $4.43 billion, from $5.03 billion last year.
Quarterly revenue fell 14% to $4.71 billion, but was above analysts’ estimates of $4.17 billion.
The company reaffirmed its full-year outlook, but cautioned that ongoing uncertainty surrounding U.S. trade policy, potential responses from global trading partners, and their broader impacts could influence its projections.
Reporting by Abhinav Parmar in Bengaluru; Editing by Shailesh Kuber
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Amazon tumbles after cloud computing growth disappoints investors
Amazon Web Services, long the cloud-computing market leader, edged past Wall Street estimates for June-quarter revenue with a 17.5% increase. But it widely lagged the 39% growth seen at Microsoft Azure and Google Cloud’s 32% gain. The drop was set to erase around $170 billion from Amazon’s market value, if the losses hold. CEO Andy Jassy told analysts on a post-earnings call that it was still “very early days” in the AI race and that Amazon’s massive cloud business was primed to perform well once the AI capacity constraints start to ease. At least 30 analysts raised their price targets on the stock, while three lowered, giving it a median view of $260. The stock, up 6.7% so far this year, was at $216.6 in early trading.
Aug 1 (Reuters) – Amazon.com shares fell about 7% on Friday as the tech giant’s results fanned investor fears its cloud unit was falling behind Microsoft and Alphabet in the artificial intelligence race.
Amazon Web Services, long the cloud-computing market leader, edged past Wall Street estimates for June-quarter revenue on Thursday with a 17.5% increase , but it widely lagged the 39% growth seen at Microsoft Azure and Google Cloud’s 32% gain
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That disappointing growth came even as Amazon shelled out $31.4 billion in capital expenditure, more than rivals, and suggested it would spend a more-than-estimated $118 billion for the year.
Google and Microsoft also pledged higher spending, but were rewarded from investors on signs AI was already becoming a major growth driver across their businesses, justifying the bill
The companies have been spending billions of dollars on datacenters and cutting-edge chips that they say are necessary to overcome supply constraints hampering their efforts to capitalize on soaring demand for AI services.
“The spotlight was firmly on AWS and it didn’t quite shine as brightly as expected,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “While Microsoft and Alphabet have already shown strong momentum in cloud growth, AWS wasn’t the knockout many wanted to see.”
Growing expenses have also started to take a bite out of AWS’s margins, the business that has long been Amazon’s profit engine, accounting for about 60% of its operating income.
AWS margins contracted to 32.9% during the quarter, their lowest level since the final quarter of 2023, and Amazon also issued a current-quarter total operating income forecast that was lower than market estimates.
CEO Andy Jassy told analysts on a post-earnings call that it was still “very early days” in the AI race and that Amazon’s massive cloud business, much larger than rivals, was primed to perform well once the AI capacity constraints start to ease.
Amazon’s cloud unit underwhelms after strong reports from rivals
The stock, up 6.7% so far this year, was at $216.6 in early trading. The drop was set to erase around $170 billion from Amazon’s market value, if the losses hold.
RETAIL RESILIENCE
At least 30 analysts raised their price targets on the stock, while three lowered, giving it a median view of $260.
Some of that analyst confidence comes from the strong performance of Amazon’s retail business, which has remained resilient in the face of Trump administration tariffs that have hobbled many retailers and their supply chains.
Amazon has yet to see a drop in demand or a notable rise in prices in the first half of the year, Jassy said, as its online store sales jumped a better-than-expected 11% in the second quarter.
Manufacturers and suppliers have shouldered most of the tariff impact so far, analysts said, but noted that much of the inventory Amazon sold in the quarter arrived in the preceding three-month period.
“If Amazon’s retail business was a standalone entity, it would be trading dramatically higher following the near-perfect results,” said Michael Morton, analyst at MoffettNathanson.
“Unfortunately, as we all know, the success of the retail business is not what’s going to matter in the near term for Amazon’s stock price.”
Reporting by Aditya Soni and Kanchana Chakravarty in Bengaluru and Amanda Cooper in London; Editing by Alun John and Shilpi Majumdar
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Stocks Slide As Trump’s New Tariff Sweep Offsets Earnings
US President Donald Trump announces tariffs on dozens of trading partners. European pharmaceutical firms slump following the president’s threat to punish them if they did not lower prices for medicines in the United States. Trump unveiled new levies Thursday on nearly 70 countries — including a blistering 35-percent rate on Canada. The Swiss government on Friday said it would negotiate with the U.S. to try to avoid the 39-percent tariff that would ravage its key pharmaceutical industry. The other market-moving event today will be US payrolls (jobs) data. The Dow was down 0.7 percent at 44,130.98 (close) and the Euro/dollar was down at $1.1414.
With hours to go before Trump’s August 1 deadline for governments to make toll-averting deals, the president unveiled a list of sweeping levies.
Shares in European pharmaceutical firms meanwhile slumped following the president’s threat to punish them if they did not lower prices for medicines in the United States.
“Tariffs are the main theme sucking risk sentiment from financial markets,” noted Kathleen Brooks, research director at XTB trading group.
“The other market-moving event today will be US payrolls (jobs) data.
“Analysts have been fairly downbeat on this report, which could puncture the narrative that the US economy is resilient in the face of tariff threats,” she added.
Governments around the world have been scrambling to cut agreements with the White House since Trump unveiled his bombshell “Liberation Day” tariffs on April 2.
He has delayed implementation of the tariffs several times — the latest move pushing them back by a week to August 7.
Some countries have reached deals with the United States — including Japan, the European Union, Britain and South Korea.
China remains in talks with Washington to extend a fragile truce in place since May.
For those in the crosshairs of the latest outburst, tariff rates range from 10 percent to 41 percent.
Trump unveiled new levies Thursday on nearly 70 countries — including a blistering 35-percent rate on Canada — as he seeks to reshape global trade to benefit the US economy.
The Swiss government on Friday said it would negotiate with the United States to try to avoid the 39-percent tariff that would ravage its key pharmaceutical industry.
The Swiss franc retreated around half a percent against the dollar Friday.
Tariffs uncertainty overshadowed earnings from major tech titans this week that saw Apple on Thursday post double-digit quarterly revenue growth that beat expectations.
Amazon said quarterly profits jumped 35 percent as key major investments in AI technology paid off, though its outlook for the next three months disappointed.
Google, Microsoft and Meta have also posted bumper results in recent days.
London – FTSE 100: DOWN 0.6 percent at 9,075.39 points
Paris – CAC 40: DOWN 2.2 percent at 7,602.50
Frankfurt – DAX: DOWN 1.8 percent at 23,632.38
Tokyo – Nikkei 225: DOWN 0.7 percent at 40,799.60 (close)
Hong Kong – Hang Seng Index: DOWN 1.1 percent at 24,507.81 (close)
Shanghai – Composite: DOWN 0.4 percent at 3,559.95 (close)
New York – Dow: DOWN 0.7 percent at 44,130.98 (close)
Euro/dollar: DOWN at $1.1414 from $1.1421 on Thursday
Pound/dollar: DOWN at $1.3164 from $1.3208
Dollar/yen: DOWN at 150.35 yen from 150.68 yen
West Texas Intermediate: DOWN 0.6 percent at $68.84 per barrel
Brent North Sea Crude: DOWN 0.5 percent at $71.31