MARKET WRAPS

Stocks:

European markets followed the global trend as sweeping new U.S. tariffs went into effect, setting up Wall Street for another tense session.

Taking center stage was the selloff in Treasurys and further increases in yields could add to pressure on economies already hit by rising prices and slowing trade due to tariffs.

Pharma stocks took a hit after Trump said at a dinner with House Republicans that tariffs on pharmaceuticals will be imposed very shortly.

Oil stocks also fell on worries about the global economy added to concerns about weakening demand.

U.S. Markets:

Stock futures were swinging between gains and losses as China called for dialogue with the U.S. and investors digested moves on the bond market.

Stocks to watch

Apple was up 1% after the Trump tariffs of 104% on China came into effect.

Nvidia shares were leading mega-tech higher, gaining more than 2% and striving to once again recover the $100 level.

Strategy, formerly MicroStrategy, rose nearly 5% as its bitcoin holding increases in value with the cryptocurrency climbing back above $77,500.

Forex:

The euro was stronger as it benefited from its liquidity.

The currency is the second-most liquid in the world and is a preferred alternative to the dollar for foreign exchange reserves, putting it in a good position to benefit from any dollar confidence crisis, ING said.

The fall in Treasuries and U.S. equities was a toxic combination for the dollar, ING said separately.

Markets were clearly punishing U.S. assets after U.S. tariffs kicked in, it said.

If European equities outperform U.S. equities again Wednesday and the spread between 10-year Treasury yields and the German equivalent widens further, it will signal the additional loss of confidence in dollar-denominated assets, it added.

"We think the balance of risks is tilted to the downside today in the DXY dollar index, which can break below 102.0."

Sterling fell to its lowest level against the euro in nearly one year.

The Norwegian krone fell to its weakest in eight months against the euro as worries over the global economy and oil prices. The krone was the worst-performing G-10 currency since Trump announced the tariffs last week, Rabobank said.

Bonds:

Eurozone government bond yields rose, tracking the direction of Treasury yields, albeit at a slower pace.

Market turmoil might prompt Eurozone sovereigns to wait with new syndicated bond issuance , Citi said.

Demand for Treasurys as a safe haven asset was fading Hargreaves Lansdown said.

The coming 10-year Treasury auction will be an important gauge of demand for duration, Danske Bank said.

Yields on long-dated 30-year gilts jumped to multi-year highs.

Energy:

Oil prices plunged to a four-year low.

Sentiment across markets continued to deteriorate as traders feared that reciprocal tariffs on U.S. trade partners--including a 104% levy on Chinese imports--will stoke inflation and slow economic growth.

"The prospects of weaker oil demand has spooked traders," ANZ said.

"Any dent to demand will be exacerbated by OPEC's decision to increase its production hikes."

Metals:

Gold futures rose, regaining momentum on renewed safe-haven demand.

If trade tensions persist and inflation concerns return to the forefront of market worries, gold could be poised for another record-breaking rally, Sucden Financial said.

Julius Baer also said gold could benefit from renewed safe-haven demand, and remained constructive on the metal.

Commodity Prices

The continuing selloff in mining stocks suggested investors expect more falls in commodity prices ahead, according to Citi.

EMEA HEADLINES

Comcast NBCUniversal to Open Theme Park in Bedford, U.K.

Comcast NBCUniversal plans to build a theme park in Bedford, U.K., its first ever resort complex in Europe.

The media and entertainment company said the park will be designed by its Universal Destinations & Experiences segment. It will have several themed lands with rides, attractions and entertainment. The resort will also have a 500-room hotel and a retail, dining and entertainment complex.

Peabody Reviews $3.78 Billion Anglo American Coal Deal After Mine Fire

Peabody Energy said it is reviewing an up to $3.78 billion deal to buy Anglo American's steelmaking coal operations following a fire at an Australian mine.

Anglo American agreed to sell its steelmaking coal business, including the Moranbah North mine, where the fire broke out last week, to St. Louis-based Peabody in November. It was the U.K.-based miner's first major step in a large-scale business reshaping announced last year as it fended off a takeover bid from rival BHP Group.

GLOBAL NEWS

U.S.-China Brawl Takes Center Stage in Global Trade War

SINGAPORE-Beijing threatened to "fight to the end" as President Trump early Wednesday morning brought the total of the tariffs imposed on China in his second term to 104%, with both countries digging in for a protracted fight that lays bare the global economic fault line at the heart of the trade war.

While Trump has dramatically expanded his broadsides over trade to encompass allies and adversaries alike, China remains his foremost target. That reflects not just the intensifying geopolitical rivalry but also China's 20 years of growing trade surpluses with the U.S. that Trump has said have been ruinous for American jobs and industries.

Tariffs Threaten Layoffs in French Industry, Minister Warns

U.S. trade tariffs could lead to layoffs in French industries worst affected by the steep duties, a government minister warned.

Job losses are "a risk," industry minister Marc Ferracci told radio station France Inter on Wednesday.

Acting IRS Chief to Depart, Extending Turmoil at Agency

WASHINGTON-Acting IRS Commissioner Melanie Krause plans to leave the agency soon, said people familiar with her decision, extending an extraordinary period of turmoil at the Internal Revenue Service as the Trump administration shrinks and reshapes the agency.

The development comes a week before the individual income tax-filing deadline, in the IRS's busiest time of year. The move happened right after an unusual data-sharing agreement between the IRS and immigration authorities became official, a step that required weeks of negotiations as agency attorneys tried to structure the deal to avoid violating taxpayer-privacy laws.

Judge Orders White House to Restore AP's Access

A federal judge on Tuesday ordered the White House to restore the Associated Press's access to presidential events, saying that the decision to impose limitations violated the news organization's free speech rights.

U.S. District Judge Trevor McFadden ruled that it was unconstitutional for the Trump administration to punish the AP because it refused to change its style guidance for the Gulf of Mexico, which President Trump renamed the Gulf of America.

Argentina and IMF Reach $20 Billion Deal to Boost Free-Market Overhaul

The International Monetary Fund agreed to provide Argentina with a new multibillion-dollar loan for which President Javier Milei had lobbied Trump administration officials in an effort to boost his nation's free-market overhaul.

The IMF said in a statement Tuesday that it reached a staff-level agreement with Argentina for a $20 billion loan disbursed over 48 months. The IMF's executive board still needs to approve the deal.

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(END) Dow Jones Newswires

April 09, 2025 05:27 ET (09:27 GMT)

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