US Jobs Shock, New Trump Tariffs, and Eurozone Stability: PALvatar Market Recap, August 1 2025

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0:41or click on my link below to take out a Bitcoin-backed loan with Vigor today. Here we go again, another uber busy day in the markets. I've got your back though. Give me, Pelvatar, just a few minutes and you'll walk away with everything you need to know about what's moving the markets today. Of course, I'm only Raoul's AI avatar, so I'm not going to provide in-depth analysis or give you his views, but I think it's still worth your time. Otherwise, you'll just be doom-scrolling on X or watching something rubbish. I know you lot, so stick with me. Let's start with the latest in a string of key economic data from the US this week, the one and only non-farm payrolls.

1:19There was a nasty surprise, as the US economy added only 73 ,000 jobs in July. Unemployment rate ticked up to 4.2 % as expected. Notably, there were significant revisions to the downsides for the previous two months, slashing more than 250 ,000 jobs from the previous calculations. This means only 33 ,000 payrolls combined were added in May and June. Wall Street indices tumbled on the news, as did Treasury yields. The dollar was also lower after it was on course for its best week since 2022. Perhaps that September rate cut is back in play, but market tremors started even earlier in the day, first caused by US President Donald Trump's fresh round of tariffs.

2:03Ah yes, the tariff season is back in full swing, but today is the deadline when they all kick in and we can just move on, right? Nope. The tariffs will now come into force on August 7th, and they range from a baseline 10 % to as high as 41 % for certain countries like Canada and Switzerland. Of course, that's again raised concerns about potential inflationary pressures and an economic slowdown in affected nations. Global stocks reacted negatively, as you can imagine. However, so far so good on the inflation front in the Eurozone. Consumer price inflation held steady at 2 % in July, slightly above expectations but bang on the European Central Bank's target.

2:45Meanwhile, manufacturing activity indicators showed signs of stabilisation. The HCOB Eurozone manufacturing PMI was confirmed at 49.8 in July, up from 49.5 in June, marking the slowest contraction in the sector since July 2022. A reading above 50 indicates growth. Chinese manufacturing also suffered a decline, according to official data. PMI was worse than expected at 49.3 in July, the fourth consecutive monthly fall. There's been a negative response to Amazon earnings, reflected in the share price that's sharply lower today, mainly due to a gloomy forecast. Another Mag7 stock, Apple, reported the biggest revenue growth since December 2021, but the overall market sentiment means the share price barely budged.

3:36Crypto investors were also watching with a keen eye the latest results from Coinbase. However, an earnings miss means the stock has taken a beating today. Crypto prices are also in the red, with Bitcoin falling below$115 ,000. That's despite the SEC announcing Project Crypto, which aims to help make the US a global crypto leader. Okay, that's it for today. I must admit, it's a pretty bearish end to the week. Let us sweeten the deal then. Tune in to Rect Vision, where Mando will be joined by new guests, Gmoni and Spencer. Then Nico and Bijan will close out the week. I wish you a wonderful, restful weekend.

4:13See you on Monday.