Asian shares fell to the lowest level in two months after a rout wiped out about $2.5 trillion from American equities as President Donald Trump’s once-a-century tariff shock prompted investors to trim risk. Stock-index futures for the US and Europe dropped 0.4%, paring losses in earlier Asian trading. The dollar extended its slide while yields on the 10-year US Treasury dipped below the closely watched 4% level once more on Friday. Global junk bonds weakened the most since March 2020. The “US exceptionalism” trade — buying up assets that win when America outperforms the rest of the world — is reversing on concern that the steepest increase in US tariffs in a century will hammer economic growth. The global selloff forms a volatile backdrop for Friday’s US jobs report and a speech by Federal Reserve Chair Jerome Powell, which should set the tone for markets already worried about the outlook for the world’s largest economy. Trump said he was open to reducing his tariffs if other nations were able to offer something “phenomenal,” indicating that the White House was open to negotiations despite the insistence of some top officials. The president has embraced tariffs as a tool to assert US power, revive manufacturing at home and extract geopolitical concessions. Economists say the near-term result of his measures will likely be higher US prices and slower growth, or perhaps even a recession. French President Emmanuel Macron urged companies to pause investments in the US. France is also pushing for the EU to hit US tech companies in response to Trump’s tariffs. The European Union, the US’s largest trading partner, vowed Thursday to retaliate while China said it will take countermeasures to safeguard its own interests. “From here, we must closely watch retaliation and look for signs of negotiation,” said Scott Berg, portfolio manager of the global growth equity strategy at T. Rowe Price. The widening trade war is also roiling rate expectations with the Bank of England being pushed toward more interest-rate cuts, investors and economists say. Bank of Japan Governor Kazuo Ueda said US tariffs have added uncertainty to the economic outlook and will weigh on growth. UBS Global Wealth Management downgraded US equities and slashed its year-end price target for the S&P 500 by nearly 10%, saying the tariffs will drag down US and global economic growth and cause an extended period of market volatility. The tariffs drove a fierce rally in global bonds, sending the yield on benchmark Treasuries below the closely watched 4% level. Most other yields also tumbled Thursday as money markets priced in a 50% chance of the Fed delivering four quarter-point rate reductions this year. Legendary investor Bill Gross urged prospective dip-buyers to stay on the sidelines. “Investors should not try to ‘catch a falling knife,’” he said in an email. “This is an epic economic and market event similar to 1971 and the end of the gold standard, except with immediate negative consequences.” Other investors such as Steve Brice, group CIO at Standard Chartered Wealth Management, said investors should buy the dip because of the so-called Trump put, a theory that Trump will ditch policies if the stock market — which he touts as a report card — drops too far and rattles investors. “Certain people now have started asking the question whether this is appropriate and that led to the point of do we still have a Trump Put?,” Brice said on Bloomberg TV. “We believe the answer to that is yes. The question is when does that kick in.” Meanwhile, the dollar’s extended decline in the midst of a global selloff in risk assets has sparked a vigorous debate about whether it retains its status as a haven during turbulent times. The Bloomberg Dollar Spot Index slid for a fourth consecutive day Friday. Investors are bearish on the greenback in the coming month for the first time since September, options data show. Hedge funds have increased their bearish bets on the dollar, mainly versus the yen and the euro, while also bracing for higher volatility into year-end, according to currency traders familiar with the transactions who asked not to be identified because they aren’t authorized to speak publicly. In commodities, oil extended its sharp drop after OPEC+ unexpectedly increased the supply by three times the planned amount in May. Gold was steady after falling from its latest record high. US After Hours FIVN +1.9% higher on guidance and workforce reduction; GES -0.5% ticks lower on earnings; SGMO +29.2% higher on license agreement; GME +4.1% as Cohen purchases shares.
Nikkei -2.75% Hang Seng -1.52% CSI -0.59% Shanghai -0.24% Shenzen -1.10%
Eur$ 1.1075 CNH CNY JPY GBP CHF RUB TRY WTI$ Gold BTC ETH
S&P -0.08% Nasdaq -0.02% EuroStoxx -0.12% FTSE +0.02% Dax -0.10% SMI -0.75%
Macro :
- ECB Will Cut Rates More Than Fed to Weaken Euro: BCA’s Savary
- Citadel Securities Top Trader Says Inflation Could Surge to 4.5%
- Musk’s White House Role Is Ending But His Influence Will Remain
- Goldman Trading Desk ‘9.5 Out of 10’ on Activity Level Amid Rout
- Bill Gross Warns Dip-Buyers Against Catching a ‘Falling Knife’
- Chinese State Companies Distorting US Steel Market: Deacero
- Buffett’s Berkshire Weathers Tariff-Fueled Stock-Market Selloff
Keep an eye on :
Keep an eye on :
- AMGN US : Amgen Wins FDA Nod for Uplizna to Treat Rare Disease
- BSGR NA : Sarabel Agrees to Buy B&S for €6.15/Share in Cash
- BNP FP : BNP Paribas flies in Lynagh from New York to head UK global banking
- CA FP : Carrefour Increases Offer for Brazil Unit Buyout; EGM Delayed
- EN FP : Colas Gets €380 Million UK Contract for Rail Track Maintenance
- CPRI US : Prada Nearing Deal for Versace and Jimmy Choo Just as the Market Plunges
- CPRI US : Goldman Could Lead €2.5B Financing for Prada to Buy Versace: MF
- G IM : Generali CEO Says No Italian Alternatives to Natixis: Corriere
- GXI GY : KKR Said to Drop Out of Consortium Seeking Gerresheimer Takeover
- HSY US : Hershey to Buy Organic Popcorn Brand LesserEvil; No Terms
- HSY US : Hershey to Buy Organic Popcorn Brand LesserEvil; No Terms
- INTC US : Intel, TSMC Tentatively Agree to Form Chipmaking Joint Venture
- PKTM AV : Pierer Mobility Calls Extraordinary GM on Lost Share Capital
- PSX US : Elliott Management steps up proxy campaign against refiner Phillips 66
- PRSM SM : Prisa Shareholders Take Company to Court on Chairman’s Role
- PUM GY : Puma replaces CEO with ex-Adidas sales head
- RDC GY : Redcare Pharmacy NV Prelim 1Q Revenue EU717M
- SAABB SS : Colombia Intends to Acquire 16-24 SAAB Aircraft
- STLA US : Stellantis aiming to pause Warren, MI truck production for weeks due to engine shortage, according to Detroit News
- SUBC NO : Subsea 7 Gets $50m-$150m Contract in US
- VOLVB SS : Håkan Samuelsson returns to scene of his redemption in bid to revive Volvo