Market Commentary: Friday 8th August

European shares are poised for a stronger opening following a rally in Japanese equities, driven by easing US–Japan trade tensions and strong tech earnings.
Equity-index futures for Europe and US stocks rose 0.2%, tracking a 1.8% gain in Japan’s Nikkei 225 after the US agreed to end stacking universal tariffs and reduce car levies, boosting companies like Toyota and Honda.
SoftBank and Sony also surged on positive earnings. However, Asian shares flattened after early gains, and gold futures hit a record high above $3,534 an ounce amid US tariff concerns on bullion.

Oil faces its largest weekly loss since June, while Asian shares eye their best week since June, fuelled by speculation of a Federal Reserve rate cut despite tariff-related volatility.

Geopolitical developments include Israeli Prime Minister Benjamin Netanyahu’s approval for a military takeover of Gaza City to dismantle Hamas and recover hostages. Meanwhile, President Trump expressed openness to meeting Vladimir Putin and escalated trade tensions by imposing tariffs on India and Switzerland.

In the US, Fed Governor Christopher Waller is a leading candidate to replace Jerome Powell, and Trump nominated Stephen Miran for a Fed governor role.

Light news release day, with CAD Employment Change being the largest scheduled release.

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