MARKET WRAPS
Watch For:
EU PPI; services PMI data for EU, U.K., Italy, France, Germany; no major corporate trading updates expected
Opening Call:
Stock futures pointed lower on a global risk-off mood after Trump's sweeping tariff stoked worries of an escalating trade war and economic slowdown. Asian stock benchmarks declined; the dollar weakened; U.S. treasury yields fell as did oil futures while gold gained.
Equities:
Stock futures were lower early Thursday after President Trump unveiled 'liberation day' tariffs that were larger than investors had expected.
The new tariffs include a baseline duty of 10% on imports and larger so-called reciprocal tariffs, with China facing total duties of 54%, Vietnam 46% and the EU 20%.
Wedbush analyst Dan Ives characterized this slate of tariffs as 'worse than the worst case scenario' the Street was fearing. U.S. stock-index futures declined in after-hours trading, reflecting fears that the tariffs will slow growth, boost inflation and further rattle global markets.
"Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic,' which will keep markets on edge for the foreseeable future," said Adam Hetts, global head of multi-asset at Janus Henderson Investors.
"This is a game changer, not only for the U.S. economy, but for the global economy. Many countries will likely end up in a recession," said Olu Sonola, head of U.S. economic research at Fitch Ratings.
European Commission President Von Der Leyen said the tariffs were a major blow and that the EU was finalizing countermeasures. China said it would take "resolute" countermeasures to protect its interests and urged the U.S. to revoke the unilateral tariff measures and resolve differences through fair and constructive dialogue. Japan said it would continue asking the U.S. to exempt it from the new tariff plans.
Forex:
Currency markets moved widely as President Trump revealed details of his tariff plans. Two-way swings in FX markets were likely, given global response to Trump's tariff announcement was still forming, DBS Group Research said.
"Some countries (are) seen retaliating and others negotiating, amid narratives looking for a deal with the U.S. and resignation to the 'new normal' on global trade," it said. Also, "cautiously optimistic investors will likely point to the tariff levels as intentionally less aggressive than they could have been. Conversely, the pessimists see Trump's sweeping tariffs as confirming a hard pivot from decades of globalization towards protectionism," it added.
Bonds:
Yields on most global government bonds such as Australian, New Zealand, and U.S. Treasurys slid on the U.S. tariff announcement. Recession fears were on the rise.
The sharp fall in yields reflected the intensifying anxiety many investors have about tariffs causing an economic downturn. There's been a dash for safer assets such as gold and Treasurys.
Energy:
Oil slid in the morning Asian session as President Trump's tariff announcement sparked fears of a global economic slowdown that could reduce oil demand.
The "tariffs were more aggressive, more immediate, more broad, and seemingly more permanent than markets were expecting," TD Securities' Rich Kelly said in a research report. Crude oil prices would likely be tied to worse-than-expected macroeconomic implications from the tariffs, the head of Global Strategy added.
Metals:
Fears of a U.S. recession and global growth slowdown were sparking a rush into gold, and could see the metal go even higher, according to Commonwealth Bank of Australia analyst Vivek Dhar. Gold futures recorded a fresh high above $3,150/oz following the U.S. reciprocal tariff plan.
"The prospect of a weaker U.S. economy from higher U.S. tariffs has boosted market expectations of [federal-funds] rate cuts by the end of the year," Dhar said. "Gold futures should continue to increase if further Fed fund rate cuts are priced in," Dhar added.
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Copper prices were lower amid concerns about the impact of tariffs on global growth. Copper has escaped a tariff on sales into the U.S.- at least for now. Copper and bullion, among some other products, will not be subject to President Trump's reciprocal tariff plan, according to the White House.
Still, that could be because it will likely face its tariff later, said AMP. Last month, Trump threatened to impose a duty of as much as 25% on imported copper. The U.S. mostly imports copper from Chile, Canada, and Peru.
TODAY'S TOP HEADLINES
Trump Tariffs Aim to Bring Down Curtain on Era of Globalization
President Trump's biggest tariff blitz yet sends a clear message to U.S. and foreign companies alike: The era of globalization is over.
Trump's "Liberation Day" plan to impose sweeping new duties on trillions of dollars in imports shows that the White House wants goods sold to American consumers to be built in American factories-bringing down the curtain on U.S. support for the turbocharged globalization that powered the world economy for decades.
Some GOP Senators Break With Trump to Reject Canada Tariffs
WASHINGTON-A handful of Republican senators broke with President Trump on trade policy, joining with Democrats to pass a resolution aiming to undo the president's 25% tariff on Canadian imports.
The 51-48 vote to approve the measure took place just hours after Trump imposed a 10% baseline tariff on all imports to the U.S., and higher rates for some nations. It marked a significant rebuke of the president's expansive effort to overhaul U.S. trade policy with friends and foes alike.
Trump's China tariffs will total 54%. Here's what he's charging other countries.
President Donald Trump on Wednesday said his new plan for U.S. tariffs will consist of a universal tax of 10% on imported products from all other countries, as well as additional "reciprocal" levies on "nations that treat us badly."
Trump said China will face a new reciprocal tariff of 34% and the European Union will be hit with a new levy of 20%, while Japan's tariff will be at 24%. He described these duties as not a full reciprocal tariff but rather about half of what other nations "have been charging us."
Siemens Agrees to Buy Dotmatics for $5.1 Billion, Expanding AI Portfolio to Life Sciences
Siemens has agreed to acquire Dotmatics for $5.1 billion, a combination the companies said would use artificial intelligence to speed up development cycles and help make breakthroughs in the life-sciences space.
Dotmatics provides software connecting science, data and decision making to support research and development in the life-sciences industry.
AppLovin and Amazon Emerge as TikTok Bidders Ahead of Trump's Deadline
Mobile technology company AppLovin has made a bid for TikTok and talked to casino magnate Steve Wynn about backing it, according to people familiar with the matter, joining a flurry of suitors for the video-sharing app.
The Trump administration's April 5 deadline to sell or shut down TikTok is fast-approaching, and the president was briefed Wednesday on a framework that would keep it operational.
Zuckerberg Lobbies Trump to Avoid Meta Antitrust Trial
WASHINGTON-Mark Zuckerberg is lobbying President Trump and White House officials to agree to a settlement that would prevent Meta Platforms from facing an antitrust trial later this month, according to people familiar with the matter.
Meta and its representatives have met with the president and his senior advisers ahead of an April 14 Federal Trade Commission trial that could force the company to unwind its acquisition of the messaging platform WhatsApp and image-sharing app Instagram. The terms of a potential settlement weren't immediately clear.
Apple's stock is getting pounded on tariff news. Don't freak out just yet.
President Donald Trump sent ripples across the technology sector on Wednesday, with a tariff announcement that one analyst called "worse than the worst-case" scenario.
That was Wedbush's Daniel Ives, who wrote that Trump's intent to put a tariff of 34% on goods from China was "the jaw dropper" in Wednesday's speech. The forthcoming tariff is said to be on top of the 20% tariff previously announced.
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Expected Major Events for Thursday
00:01/IRL: Mar Ireland Services PMI
06:30/SWI: Mar CPI
07:00/TUR: Mar PPI
07:00/TUR: Mar CPI
07:15/SPN: Mar Spain Services PMI
07:30/EU: Mar EuroCOIN indicator of euro area economic activity
07:45/ITA: Mar Italy Services PMI
07:50/FRA: Mar France Services PMI
07:55/GER: Mar Germany Services PMI
08:00/EU: Mar Eurozone Services PMI
08:30/UK: Mar UK Official Reserves
08:30/UK: Mar S&P Global UK Services PMI
09:00/EU: Feb PPI
09:00/CYP: Mar CPI
10:00/FRA: Feb OECD CPI
All times in GMT. Powered by Onclusive and Dow Jones.
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(END) Dow Jones Newswires
April 03, 2025 00:00 ET (04:00 GMT)
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