Global Markets:
- Asian Stock Markets : Nikkei down 2.94%, Shanghai Composite down 0.56%, Hang Seng down 1.73% ASX down 0.94%
- Commodities : Gold at $3168.35 (0.80%), Silver at $33.7 (0.48%), Brent Oil at $73.75 (0.15%), WTI Oil at $69.96 (0.04%)
- Rates : US 10-year yield at 4.049, UK 10-year yield at 4.6420, Germany 10-year yield at 2.7240
News & Data:
- (USD) ADP Non-Farm Employment Change 155K to 118K expected
Markets Update:
Asia-Pacific markets tumbled Thursday after U.S. President Donald Trump imposed steep reciprocal tariffs on over 180 countries, including several in the region. The White House shared charts claiming foreign nations impose unfair trade barriers on American goods, citing currency manipulation and tariffs. China now faces an increased tariff rate of 54%, while India, South Korea, and Australia face 26%, 25%, and 10%, respectively. Chris Kushlis, chief emerging markets strategist at T. Rowe Price, said these tariffs could significantly slow economic growth, particularly in trade-dependent economies.
Despite having the largest trade deficit with the U.S., China does not face the highest reciprocal tariffs. Stephen Dover of Franklin Templeton noted that Southeast Asia—previously benefitting from U.S. tariffs on China—now faces some of the highest duties. Markets reacted sharply, with Japan’s Nikkei 225 falling 3.10%, Hong Kong’s Hang Seng dropping 1.58%, and South Korea’s Kospi declining 0.94%. Australia’s S&P/ASX 200 slipped 0.89%, while India’s Nifty 50 and BSE Sensex also opened lower.
Gold surged to a record $3,148.84 per ounce as investors sought safe-haven assets. Meanwhile, U.S. futures slumped amid fears of a global trade war. Dover warned that tariffs could raise household costs by $4,200 annually, potentially slowing consumer spending and U.S. growth in 2025. He added that tariffs would not be effective unless prices increased, posing further risks to the economy.
Despite tariff concerns, Wall Street ended higher. The S&P 500 rose 0.67%, the Nasdaq gained 0.87%, and the Dow added 235 points. However, ongoing volatility and economic uncertainty remain key concerns for global markets.
Upcoming Events:
- 12:30 PM GMT – CAD Trade Balance
- 12:30 PM GMT – USD Trade Balance
- 12:30 PM GMT – USD Unemployment Claims
