Treasuries sold off and stocks retreated as US President Donald Trump hiked trade tariffs to a 100-year high and ratcheted up pressure on China. US sovereign bonds sank for a third straight day, with long-end yields surging amid growing cracks in their haven status. The dollar fell and recession fears drove Asian stocks to their lowest level since January 2024. Equity-index futures for Europe and the US slumped, reflecting growing concerns about the world’s biggest economy. Oil sank to a fresh four-year low. “This isn’t just about tariffs or currencies — it’s about capital flows, geopolitics, and fiscal sustainability colliding in real time,” said Charu Chanana, chief investment strategist at Saxo Markets. “This rare trifecta signals a deeper crisis of confidence. Treasuries, once the world’s ultimate safe haven, are now under pressure from US fiscal concerns and risks of foreigners dumping in retaliation to tariffs.” The worsening trade war — with Trump raising levies on China to 104% — has been condemned by investors including Bill Ackman and prompted economists at JPMorgan and Goldman Sachs to raise the probability of a US recession. Investors are also gripped by concerns that something may break in the financial plumbing as volatility and stress build across markets. The unfolding turmoil may put the Federal Reserve in a spot where the need to cut interest rates contend with fear of a spike in inflation brought on by tariffs. That debate is playing out in the Treasuries market, where the policy-sensitive two-year note is outperforming amid speculation of rate cuts. The selloff in longer-tenure debt — yields on 10-year bonds have surged by 41 basis points this week —though has raised questions over the value of US government debt as a haven, as well as speculation that hedge funds are unwinding a popular leverage trade. The selloff in Treasuries has sowed more doubt about the asset’s haven quality, according to Citigroup Inc. strategists. Yields on 30-year Treasuries also surged 21 basis points on Wednesday to the highest since 2023. Japan’s long-dated government bonds plunged as elevated market volatility prompted investors to trim their exposure to fluctuating yields. Adding to signs of concerns about the US economy, an index of the dollar fell for a second day with the currency dropping against all of its Group-of-10 peers. Instead, investors piled into the yen as a haven asset. Trump’s so-called reciprocal tariffs are now in place, dealing a thunderous blow to the world economy as he pushes forward efforts to drastically reorder global trade. In the hours before implementation — at 12:01 am Wednesday in Washington — the White House insisted the duties were indeed coming, squelching market speculation for any late reprieve. Asian countries are facing the brunt of the measures, with Cambodia and Vietnam facing 49% and 46% charges, respectively. Imports from the European Union will be taxed at a 20% rate. Chinese markets experienced high volatility Wednesday. The CSI300 Index opened 1.2% lower before erasing almost all its loss. Inflows into exchange-traded funds linked to the so-called national team hit a record for a second day running on Tuesday. Tuesday’s slide in the S&P 500 extended its drop since the president detailed worldwide levies last Wednesday to more than 12%. It was also another day of nearly unprecedented volume on US equity markets, with more than 23 billion shares changing hands. “Although liquidity has deteriorated in many markets, markets have generally remained functional and there are few signs of funding stress,” said Goldman Sachs Group Inc. strategists Dominic Wilson and Vickie Chang, in a note late Tuesday. “But the size of recent asset shifts means that we are monitoring potential areas of financial stress more closely.” US After Hours Coal stocks moving higher on Trump comments; UNF +4.9% on share repurchase program; CALM -4.1% lower on earnings.
Nikkei -4.15% Hang Seng -0.56% CSI +0.86% Shanghai +1.03% Shenzen +1.95%
Eur$ 1.104 CNH 7.3841 CNY 7.3498 JPY 145.28 GBP 1.2827 CHF 0.8426 RUB 85.9750 TRY 38.0096 WTI$ 57.06 -4.23% Gold 3,015 +1.06% BTC 76,515 -0.72% ETH 1,455.35 -1.69%
S&P -2.46% Nasdaq -2.38% EuroStoxx -3.67% FTSE -3.20% Dax -3.55% SMI -3.51%
Macro :
- Trump: Will Announce ‘Major’ Tariffs on Pharma ‘Very Shortly’
- Xi’s No. 2 Says China Is Equipped to Fight Trump’s Tariff Hikes
- Trump Says He Met With Steel Executives and Discussed New Mills
- President Donald J. Trump Lifts Burdensome EPA Restrictions on Coal Plants
- Offshore Yuan Gains from Record Low Aided by Banks: Inside China
- China Shipbuilders Gain on Report of US Mulling Port Fee Change
- China’s Stimulus Bazooka Is Necessary Amid Tariff Hit: Aberdeen
- Hedge fund Point72 poaches Carlyle Credit dealmaker
Keep an eye on :
- AIR FP :
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- AAL LN : Anglo Chile Mines Are on Track to Meet Guidance Despite Blackout
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- BCP PL : Portugal’s BCP Approves EU200m Share Buyback Program
- BP/ LN : US Revokes BP, Shell Project Licenses in Venezuela Waters: FT
- BT/A LN : Asterion’s Retelit in Exclusive Talks for BT Italian Unit: Sole
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- DEME BB : DEME Group to Buy Havfram in Deal Worth ~€900m
- ELE SM :
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- GLEN LN : Glasenberg Increases Glencore Voting Rights to 10.09% From 9%
- KKR US : KKR Is Said to Near Deal to Buy EQT’s Karo for Over €2.5 Billion
- META US : Ex-Employee to Testify Meta Undermined National Security: NBC
- MBTN SW : Bondholders Approve Amendments Proposed by MBT, Meyer Burger
- BMPS IM : ECB Approves Paschi Share Hike Classification as CET1 (April 8)
- PEAN SW : Peach Property Proposes Capital Raise to Pay Down Unsecured Debt
- RDC GY : Redcare Pharmacy Offers €300M, Buys Back €225M Convertible Bonds
- SBMO NA : SBM Offshore Signs $400M Sale and Leaseback Pact for FPSO
- SEM AV : Semperit Cuts FY Ebitda Forecast, Cites US Tariffs, Weak Orders
- SRG IM : Italian Gas-Storage Capacity Auction Is Oversubscribed (1)
- SF US : Stifel Cutting Equity Research Staff in Zurich, Frankfurt: FN
- TE FP : Technip Energies Wins US Ammonia Factory Contract Worth Over €1b
- X US : US Steel Says Holders Should Be Skeptical of Ancora’s Plan
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- ZAL GY : Zalando to Cut 450 Customer Care Jobs in Efficiency Drive