Stocks, dollar sink, bonds pummelled again as trade war roils markets

Ankur Banerjee

Thu, Apr 10, 2025, 7:50 PM 3 min read

By Ankur Banerjee

SINGAPORE (Reuters) - Global stocks slumped and the dollar sank further connected Friday, portion a manic enslaved selloff took clasp successful a brutal extremity to the week of tit-for-tat worldwide tariffs that person fed fears of a heavy recession and shaken capitalist assurance successful U.S. assets.

The anxiousness has sparked a unreserved into harmless havens, sending the Swiss franc soaring to a decennary precocious against the dollar, and golden to a caller highest aft a little but monolithic alleviation rally pursuing U.S. President Donald Trump's determination to temporarily little tariffs connected galore countries.

The selloff successful U.S. Treasuries picked up gait during Asian hours, with the 10-year enactment output rising to 4.475%, gaining implicit 40 ground points successful the week, the biggest summation since 2001, LSEG information showed.

Analysts and investors crossed the globe person pointed to this week's crisp sell-off successful Treasuries and weakness successful the dollar arsenic grounds that assurance successful the world's biggest system has been shaken.

"There's intelligibly an exodus from U.S. assets. A falling currency and enslaved marketplace is ne'er a bully sign," said Kyle Rodda, elder fiscal markets expert astatine Capital.com. "This goes beyond pricing successful a maturation slowdown and commercialized uncertainty."

In Asia, Japan's Nikkei tumbled 4.5% connected the day, portion stocks successful South Korea fell 1.7%. MSCI's broadest scale of Asia-Pacific shares extracurricular Japan was 0.5% lower.

U.S. futures for S&P 500 and Nasdaq fell astir 1% each aft a crisp driblet overnight. [.N]

"The short-term outlook for planetary hazard assets remains uncertain fixed maturation and ostentation concerns, fluid sentiments and fast-changing developments connected the commercialized and tariff fronts," said Vasu Menon, managing manager of concern strategy astatine OCBC Bank successful Singapore.

Investors are grappling with worries implicit the escalating Sino-U.S. commercialized warfare aft Trump ratcheted up tariffs connected Chinese imports, raising them efficaciously to 145%.

China has deed back, hiking its tariffs connected the U.S. with each Trump increase, raising fears that Beijing whitethorn jack up duties supra the existent 84%.

Chinese stocks made a subdued commencement connected Friday. The blue-chip CSI300 Index was disconnected 0.5% portion Hong Kong's benchmark Hang Seng was down 0.38%.

James Athey, fixed income manager astatine Marlborough, said the outlook remains darker and much clouded successful uncertainty than it did a period ago. "There are inactive truthful galore unanswered and unanswerable questions."

DOLLAR LOSES ITS CROWN

The U.S. dollar has faced relentless selling successful the past fewer weeks, with traders seeking structure successful the Japanese yen, the Swiss franc arsenic good arsenic the euro. [FRX/]