US stock markets ended lower on Friday after President Trump imposed a 35% tariff on Canadian imports and signalled more global trade barriers, dampening investor sentiment. The S&P 500 fell 0.30%, pulling back from a record high set a day earlier. Trump's strongly worded letter to Canada raised the prospect of further tariffs if Canada retaliates, with similar threats aimed at the European Union.

European markets slumped, with the STOXX 50 and STOXX 600 both down 1.10%, as reports surfaced that the EU Commission is preparing for official tariff notifications from the US, potentially disrupting demand for European exports.

In Asia, Hong Kong’s Hang Seng Index climbed 0.50% to 24 140, buoyed by hopes for stimulus from Beijing amid deflation worries and new labour market support policies. Weekly gains stood at 0.90%. Japan’s Nikkei edged down 0.19%, weighed by a steep drop in Fast Retailing shares.

South Africa’s rand depreciated over 1% on Friday, trading at R17.90 to the dollar by 18h00, pressured by a stronger greenback and global tariff anxiety. The US dollar strengthened 0.30% against major currencies as investors moved into safer assets. South Africa’s stock market ended the day 0.15% lower as investors awaited government updates on trade negotiations ahead of an August 1 deadline, after which a 30% US tariff could hit local exports.

On the commodities front, WTI crude oil bounced 2.80% to $68.40 per barrel, reversing the prior session’s losses, as traders balanced short-term supply constraints with future surplus risks. Gold prices rose for a third day to $3 330 per ounce, lifted by safe-haven demand amid growing global trade uncertainty.