European stock markets slipped early on Monday after President Trump announced a 30% tariff rate on the European Union. The EU suspended its retaliatory tariffs, which had been scheduled to take effect today, in the hope of reaching a deal. EU Trade Commissioner Maros Sefcovic said the bloc felt it was close to a deal, but warned that 30% tariffs would pratically eliminate trade between the EU and US. The 30% rate is not being priced by markets – most seem to think that it will be 10-15% by 1 August. Investors mainly expect the TACO trade to play out. But a 30% tariff on the EU would be great for the UK.

Nevertheless, markets are a little skittish - the move sent the DAX and CAC down by around three-quarters of a percent while the FTSE 100 bucked the trend to rally a touch to 8,957 as it searches for new record highs amid some sterling softness. Fresnillo – top performer this year among the blue chips - rallied some more as silver prices extended their run higher; gold remained pretty rangebound and Bitcoin made a fresh record high above $122k. US futures were weaker on Monday morning with Wall Street finishing lower on Friday to post a weekly loss despite making a fresh all-time high.

The pound fell to a three-week low against the US dollar after governor Andrew Bailey said the Bank of England could cut rates faster if the job market slows. Odds of a quarter point rate cut on 7 August increased and pushed cable back below the 1.35 handle.

Attention this week turns to earnings – the big banks kicks things off on Wall Street tomorrow, whilst UK banks are also due to report this week. FTSE 100 earnings are expected to be about 7% below the April forecasts due to tariffs, says Deutsche Bank, which forecasts a 6% decline in H1 earnings excluding energy stocks.

Markets were also a little wrinkled by fresh speculation that Trump could oust Jay Powell as the Fed chair, with the White House accusing him of a "grossly" mismanaging an "ostentatious" redevelopment of the Fed's headquarters building.

Finally, worth noting that Fresnillo is not the only stock to benefit from soaring silver prices, which hit their highest since 2011. Australia: Silver Mines & Sun Silver +17%. Hong Kong: China Silver Group +12%. China: Hunan Silver +10%, Shengda Resources +8%, Baiyin Nonferrous +10%.