Pedestrians are reflected on a stock quotation board showing a graph of Nikkei share average outside a brokerage in Tokyo, Japan April 14, 2025. REUTERS/Kim Kyung-Hoon/File Photo Purchase Licensing Rights , opens new tab

Item 1 of 2 Pedestrians are reflected on a stock quotation board showing a graph of Nikkei share average outside a brokerage in Tokyo, Japan April 14, 2025. REUTERS/Kim Kyung-Hoon/File Photo

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Companies Asian stock markets :

Wall St futures skid 0.4% after Trump warns on EU, Canada

Dollar up 0.3% on Canadian currency, euro off 0.2%

Asian shares wobble, Nikkei off 0.1%

SYDNEY, July 11 (Reuters) – U.S. and European stock futures dipped in Asia on Friday after President Donald Trump stepped up tariff threats against Europe and Canada, restraining an early rally in regional share markets.

The dollar gained on the euro and the Canadian currency as Trump issued a letter late on Thursday that a 35% tariff rate on all imports from Canada would apply from August 1, adding the European Union would receive a letter by Friday.

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The U.S. president, whose global wave of tariffs has upended businesses and policymaking, floated a blanket 15% or 20% tariff rate on other countries, a step up from the current 10% baseline rate.

Both Nasdaq futures and S&P 500 futures fell about 0.4%. EUROSTOXX 50 futures also dropped 0.4%.

The euro slipped 0.2% to $1.1676, while the dollar gained 0.3% to C$1.3695 .

Earlier in the week, Trump pushed back his tariff deadline of July 9 to August 1 for many trading partners to allow more time for negotiations, but broadened his trade war, setting new rates for a number of countries, including allies Japan and South Korea, along with a 50% tariff on copper.

Joseph Capurso, head of international economics at the Commonwealth Bank of Australia, said the tariff rate of 35% on Canada is not as bad as feared because most of the imports are still subject to exemptions under the United States-Mexico-Canada Agreement (USMCA).

“Now the tariff rate on imports from the EU… That’s what we don’t know as yet… The potential escalation between the EU and the US is a big deal for financial markets,” said Capurso.

“If you get something similar to (the U.S.-China trade war in April), that’s going to be very destabilising.”

Overnight, Wall Street indexes rose modestly but posted record closing highs as chip giant Nvidia (NVDA.O) , opens new tab made history with a closing market valuation above $4 trillion.

The MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab wobbled but was last up 0.5% on Friday. That brought the weekly gain to 0.7%.

Investors are gearing up for second-quarter U.S. corporate earnings next week to gauge the impact of Trump’s trade war launched with his “reciprocal” tariff announcement on April 2. JPMorgan Chase (JPM.N) , opens new tab is due to release results on Tuesday, essentially kicking off the reporting period.

In Treasury markets, moves were muted in Asia. Benchmark 10-year U.S. Treasury yields rose 1 basis point to 4.3577%, having edged up a tiny bit overnight after data showed jobless claims unexpectedly fell last week.

Oil prices rose after losing 2% overnight. Brent crude futures gained 0.6% to $69.06 a barrel, having lost 2.2% a day earlier.

U.S. West Texas Intermediate crude was up 0.7% at $67.05 a barrel.

Spot gold rose 0.2% to $3,329 an ounce.

Reporting by Stella Qiu in Sydney; Editing by Shri Navaratnam and Jamie Freed

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