Markets soar on tariff delays, corporate reviews and geopolitical news
Latest stock market news
• Trump's introduction of a delay in the introduction of high tariffs for 75 countries (10% remained for them) caused a surge of market enthusiasm. US stock indices soared like a rocket.
The Nasdaq 100 had its biggest one-day growth since 2001 (+12%). By the way, it was in a bear market then and the growth was due to the removal of shorts.
In the morning, futures on US stock indices are down by 1% - a normal correction after yesterday's rally of 8-12%.
Oil rose to $61-65.
Gold is again at $3140. Bitcoin tested $82 thousand.
• Asian shares and European stock futures rose on Thursday, joining a rally in relief sparked by a 90-day delay in most new U.S. tariffs, but the policy reversal did not extend to China, where an escalating trade war was spelling more trouble for markets.
Indeed, the dollar struggled to hold on to overnight gains, particularly against the safe-haven yen and Swiss franc, and US stock futures fell after a brief initial rise in what could be a potential warning of waning investor confidence in the US economy.
• As economists at JP Morgan say, this is “just the end of the beginning” and the US trade war is far from over.
Wall Street indexes posted their biggest daily percentage gain in a decade, buoyed by relief that global trade would no longer be completely shut down following US President Donald Trump's latest reversal on tariffs.
But the standoff between the two global trading powers has changed dramatically: Trump dealt China a direct blow, raising tariffs on Chinese imports to 125%, up from the 104% that took effect Wednesday. China raised additional tariffs on American products to 84% and imposed restrictions on 18 American companies.
By contrast, Vietnam, a huge beneficiary of global manufacturers' "China Plus One" strategy to diversify supply chains, said on Thursday it had reached an agreement with the United States to begin talks on a trade pact.
• Chinese shares opened on a positive note on Thursday, with Hong Kong's Hang Seng index rising 4% even as the yuan fell to its lowest in more than 17 years. Some analysts attributed the gains to hopes for talks between the world's two largest economies and support for markets and the economy from Beijing.
• The manic sell-off in bonds also stabilized on Thursday as U.S. Treasury yields eased after heavy selling in previous sessions revived fears of instability in the world's biggest bond market.
• Trump: Over time, I will consider the possibility of exempting some American companies from paying tariffs. / Most likely, this is about Apple.
• Amazon cancels some goods from China after tariffs. / Ahead are the shutdown of factories in China and a jump in unemployment. Beijing has nothing to respond with - either negotiate with Trump, or start aggression against Taiwan (but readiness was previously discussed for 2027).
• DAL has told Airbus that it will not pay duties on new aircraft./ This will be a loss for Airbus.
• Google has added an AI assistant to its Sheets service. You need to activate the functions in the Generative AI menu on the Workspace website and then Gemini will help you automatically create complex formulas, generate texts, conduct data analysis, classify information and provide generalizations.
• Goldman Sachs initially called for a bigger stock decline and a recession, but then withdrew its forecast.
The bank's economists expected Trump's tariffs to deepen the recession and push stock markets lower. Historically, recessions are often accompanied by bigger stock declines and bigger Fed rate cuts.
But after Trump suspended tariffs for 90 days, they withdrew their forecast.
• The world's uranium reserves could run out as early as 2080 if demand for nuclear energy continues to grow. The world must immediately make substantial investments in uranium mining to meet growing demand for nuclear energy. - A report by the Nuclear Energy Agency and the International Atomic Energy Agency. / Usually such long-term forecasts are a cover for finding money.
• On April 7, Strategy (MSTR) filed Form 8-K with the SEC, stating that if the price of BTC continues to fall, the company may be forced to start selling BTC from its balance sheet to pay off debts.
• The world's largest cryptocurrency exchange Binance has launched a new feature. Users will be able to buy coins via Apple Pay or Google Pay.
• VanEck: There are early signs that BTC is evolving from a speculative asset into a functional monetary instrument,
especially in economies looking to bypass the dollar and reduce reliance on US-led financial systems.
• US ports are clogged with imported cars after tariff hikes.
Some are already full to capacity and the port parking situation could become critical in a few weeks - FT.
• SP500 enters zone where long-term investors will want to buy, says Goldman Sachs.
• The Bank of Lithuania fined Revolut €3.5 million, but did not find any evidence of money laundering, Revolut's press service responded in a written comment
. The comments only concern improving control systems. The fine is only 0.38% of the company's annual income (€929 million), although the law allows for fines of up to 10%.
• Investors in credit ETFs lost $25.7 billion last week, the biggest loss in history for this group - FT
Short sellers made $159 billion in profit in 6 days as stocks fell - Bloomberg
• Escalating trade war sends US stock market down more than 10%, the biggest market drop since 2022.
• US Treasury Secretary does not rule out delisting Chinese shares from US stock exchanges. The decision is up to Trump - Bessent.
• China's yuan closes at 17-year low as Donald Trump escalates trade war with US,
Bessent urges China not to devalue yuan
During Trump's first term, China's central bank actively weakened the yuan against the US dollar to soften the blow to the economy from tariffs, irritating Trump.
• Bessent: "I expect the bond market to calm down. I don't think there's anything systemic about deleveraging the bond market. Deregulation should allow banks to buy more Treasuries."
• OpenAI is considering acquiring io Products, a startup founded by former Apple chief design officer Jony Ive and OpenAI CEO Sam Altman. The deal could be worth at least $500 million, - The Information.
• Google (GOOG) Pays Employees Extra Money to Keep Them from Joining Competitors - Business Insider. The company is forced to use "aggressive" terms to retain employees.
• AMG Critical Minerals has approved the construction of a chrome plant in New Castle, USA. Has the relocation of production to the USA begun?
AMG Critical Materials NV is a Dutch metallurgical company specializing in the production of specialty metals, engineered metallurgical products and vacuum furnaces.
• Saudi Arabia announces discovery of 8 new oil and gas fields - SPA.
• Google (GOOGL) unveiled its latest AI chip, the Ironwood TPU, designed to improve inference capabilities.
Available in two configurations, the chip aims to speed up the processing of AI models in data centers, meeting the growing demand for AI infrastructure.
• The Trump administration has revoked special licenses for BP (BP) and Shell (SHEL) for gas projects in Venezuela, impacting the economy of Trinidad and Tobago. The decision is consistent with U.S. efforts to isolate Venezuela and follows similar actions against other companies.
• The revocation of licenses affects projects critical to Trinidad's $3.6 billion LNG exports.
• Peabody Energy (BTU) is reviewing its deal to acquire Anglo American's coal operations after a fire at an Australian mine.
The incident has prompted Peabody to reconsider its options while continuing talks with Anglo American to assess the impact.
• A federal judge has dismissed a class action lawsuit against Bristol Myers Squibb (BMY) that accused the company of maintaining a monopoly on its multiple myeloma drug, Pomalyst.
The court ruled that the plaintiffs failed to prove an antitrust violation, allowing Bristol Myers to continue operating without legal hindrance.
• Apple (AAPL) shares continue to slide as China increases tariffs on U.S. goods.
• Walmart (WMT) maintained its sales growth outlook despite tariff uncertainty. The company plans to navigate the challenging environment by focusing on strategic investments and maintaining operational flexibility.
• Pharmaceutical stocks fall as Trump announces 'big' tariffs for industry
• Volkswagen's first-quarter deliveries rose 1.4 percent, driven by nearly all markets. Volkswagen delivered 2.13 million vehicles in the first quarter.
• Trump: The bond market is beautiful. I've been watching the bond market. Recall that the yield on 10-year US government bonds first fell to 3.9% per annum, then soared to 4.5% and is now 4.3%.
• Trump: Over time, I will consider exempting some American companies from paying tariffs. Most likely, we are talking about Apple.
• The March U.S. inflation report is due out on Thursday, although it is likely to have less significance for markets as the data mostly covers the period before Trump's latest round of big tariffs.
However, the positive surprise could turn out to be a negative one, given that it would only be a precursor to the sharp price increases that will occur when the tariffs are fully implemented.
Key events that could impact markets on Thursday:
- Tariff news
- US inflation data (March)
Current Fundamental Reviews
• Trump: “Based on the lack of respect China has shown for world markets, I am hereby raising the tariff levied on China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the United States and other countries are no longer sustainable or acceptable. On the other hand, and based on the fact that over 75 countries have called in United States representatives, including the Commerce Department, the Treasury Department, and the Office of the United States Trade Representative, to negotiate a resolution of the issues under discussion regarding trade, trade barriers, tariffs, currency manipulation, and non-monetary tariffs, and that those countries have, at my urging, taken no retaliatory action against the United States, I have authorized a 90-day PAUSE and a substantially reduced reciprocal tariff during that period. Thank you for your attention to this matter!”
• China is confident it will win the trade war with the US and says it will "fight to the end" - The Economist.
• The US is planning a possible conflict with China, - NYT.
• China publishes white paper on US trade and economic relations.
China calls for dialogue with US to resolve trade disputes - Xinhua.
According to preliminary forecasts, trade turnover between China and US could decrease by 80% - WTO chief.
• China's decision to impose 84% tariffs on US goods:
For consumers:
- Prices will rise: US goods (cars, appliances, food) will become more expensive.
- Fewer choices: Some US brands may leave the market.
For traders and businesses:
- Fewer exports: US companies may reduce sales in China, which will hit revenue.
- Market volatility: Rising tensions create uncertainty for global trade.
- Shifting supplies: Companies may look for new markets and suppliers.
• The EU is imposing tariffs on €21 billion worth of American goods. The new duties will affect soybeans, chicken, and motorcycles and will come into force in stages from April 15. The decision was a reaction to the previous 25% US tariff on European steel and aluminum.
• Musk uses AI to find Trump's enemies among government officials - Reuters The DOGE team also uses the Signal app to communicate, which violates federal records rules because messages can disappear after a certain period of time.
• Trump urges Congress to pass tax cut bill as Americans clear shelves of goods due to Trump's massive tariffs
• Citizens are trying to stock up on as many products with a long shelf life as possible: beans, canned goods, flour, cereals, oil, etc. Or maybe this is Trump's cunning plan to boost the economy and collect taxes through consumer activity?
• Scott Bessent, US Treasury Secretary: Wall Street has gotten richer in four decades. 'The next four years are Main Street's turn.
' 'Main Street will now play a key role in creating jobs, attracting investment and restoring the American Dream.'
• US considers providing financial aid to farmers as China's retaliatory moves threaten exports.
• We will reduce the national debt by 1% per year - US Treasury Secretary Bessent.
• European allies urge US to avoid shock troop cuts - Bloomberg.
• The far-right AfD has taken first place in a poll for the first time. According to a poll by the Ipsos institute, support for the conservative CDU/CSU bloc, which won the German elections on February 23, fell by five percentage points to 24%, while the right-wing populist Alternative for Germany gained three points and reached 25%.
• Germany will end federal refugee programs and will not create new ones, Reuters reports. The refugees in question are those on the UN resettlement program, most of whom come from Turkey, Egypt, Jordan or Kenya, or from Libya via Rwanda.
• Deutsche Bank: "If the sell-off in the Treasury market continues, the Fed should immediately intervene and stabilize the deficit in demand for debt through emergency QE. We see no other options."
• Former US Treasury Secretary Summers: "It appears that we are heading towards a serious financial crisis."
• Jamie Dimon, CEO of JPMorgan Chase (JPM), suggested that the current tariff issues are not comparable to the 2008 financial crisis. He noted the need for progress on trade agreements to stabilize the market, acknowledging that such agreements take time. Dimon emphasized the importance of strengthening trade relations with Europe to counter the influence of China and Russia, noting that economic growth is expected to slow, although defaults have not yet increased significantly.
The head of JP Morgan is hearing “talk about a recession” and believes a recession is a likely outcome.
He has not seen defaults yet, but expects one to happen.
• Fed's Kashkari: The risk of weakening inflation expectations seems to have increased significantly. Policy is tightening on its own, reducing the need to raise rates. Translation: inflation risks are decreasing. Which is logical against the backdrop of a collapse in oil prices. And this means that the chances of a Fed rate cut are growing.
• Indian Commerce Minister: Indian and US manufacturers hit by China's unfair trade practices
• Trump signed an executive order aimed at restoring shipbuilding in the United States and reducing China's influence on the global shipping industry.