The fallout from the jobs report helped drop US bond yields, with the 10-year Treasury yield dropping as much as 20bps at one point to 4.19% as expectations of a Fed rate cut increased. In Europe it was a similar with the German 10yr bund falling by up to 8bps at one point.

What do you want to know?.

Global equities fell sharply on Friday following the Jobs report. The S&P 500 ended last week down 2.3% whilst in Europe, the Stoxx 600 was off by 2.6%. On Monday, markets rebounded somewhat as investors moved on from the gloomy jobs report.

(in retaliation to their continued purchases of Russian energy & arms) and a 40% additional rate for Brazil bringing the total to 50% (seemingly a response to their continued prosecution case against former President Bolsonaro).

Last week also saw the announcement of a raft of tariffs for countries who had not yet sought a trade deal with the US. Standouts were a 39% rate for Switzerland, a potential increase on the current 25% rate for India.

On the back of the weak report, the Trump administration announced the firing of the Chief of the Bureau of Labour Statistics (BLS) leading to concerns over the future impartiality of economic data releases. A Federal reserve Governor also announced her resignation last week.

The big news was the revisions made to the May and June numbers - 258K jobs previously recorded as created were removed from the figures.

The US non-farm payrolls report was the big news last week. Job creation was lower than expected (though not terrible) at 73K created vs 107K expected with healthcare and government the only sources of hiring. Unemployment also ticked up from 4.1% to 4.2% in line with expectation.

Markets turned around yesterday, repairing much of Fridays' damage as investors parsed the detail of the labour report against a backdrop of solid earnings. Still to come this week are a Chinese trade update, a Bank of England rate decision and economic outlook reports.

The non-farm payroll report showed fewer than expected jobs created for July, big revisions downwards to the May and June numbers and signs of dramatically slower job creation outside of healthcare & government services.

Investors were further unnerved by the firing of the head of the Bureau of Labour Statistics (BLS) chief on the back of the jobs report.

The combination of a weak non-farm payroll report & additional tariffs acted in tandem to drag markets dramatically lower at the end of last week. US treasury yields moved sharply down as investors moved to safe haven assets in expectation of increased rate cuts before year end.

The potential for fewer rate cuts from the ECB helped push up European bond yields (bond prices fall as yields rise), with the 10-year German bund yield rising by 3bps to 2.73% last week. The equivalent US Treasury bond yield fell by 4bps to 4.38%.

Global equities rallied as sentiment was supported by the potential for global trade deals with the US and lower tariffs than threatened, as well as good economic data. The S&P 500 was up by 1.5% last week while the Stoxx Europe 600 rose by 0.5%.

The ECB left its deposit unchanged at 2.0%, in line with market forecasts, and President Lagarde stating that the central banks was now "in a wait-and-watch situation". Interest rate markets subsequently priced in a lower probability of rate cuts for the rest of 2025.

There was positive news on tariffs last week, with the US and Japan agreeing to a deal whereby Japanese imports to America would be taxed at 15%, which was 10% lower than that threatened by Trump.

Global PMIs for June indicated that economic activity remains healthy. The composite PMI for the Eurozone was higher than expected, rising to an 11-month high. In the US, the services PMI increased by more than projected while that for manufacturing unexpectedly fell.

High-profile Q2 earnings and guidance from the likes of Microsoft and Meta (Weds) and Apple and Amazon (both Thursday) are likely to be a market focus this week, as well as economic data including Q2 GDP for the Eurozone and the US and the Fed's post-meeting press conference.

Last night, news emerged that the US and EU had struck a trade deal with a 15% tariff rate being agreed on most goods and a zero-for-zero deal on selected items. US futures indicate a positive reaction by markets.

HARD HATS, NO RATE CUTS.Positive news on the trade and earnings front supported equities last week. Bond yields rose as the outlook for further rate reductions in 2025 was dimmed by healthy economic data while the ECB left its deposit rate unchanged for the first time in a year.

The potentially improved economic backdrop in the Eurozone may require fewer, if any, further ECB rate cuts and this pushed up German bund yields with that for the 10-year rising by 14bps to 2.72% last week. The equivalent US Treasury bond yield was up by 7bps to 4.42%.