Apr 4, 2025, 02:37 GMT+2 On Friday, stocks limped to the end of the week, the dollar headed for its worst week in a month, while gold flirted with a record high, as investors feared that U.S. President Donald Trump's sweeping tariffs (link) could plunge the global economy into a recession (link). Asian stocks struggled to recover from the heavy losses of the previous session, while Japan's Nikkei NI225 fell 1.85%, extending Thursday's 2.8% drop.
Asian stocks struggled to recover from the heavy losses of the previous session, while Japan's Nikkei NI225 fell by 1.85%, extending the 2.8% drop recorded on Thursday. The broader MSCI index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) fell by 0.26% in trading, with markets in China, Hong Kong, and Taiwan closed for holidays. Overnight, S&P 500 companies lost a total value of $2.4 trillion, the largest one-day loss since the coronavirus pandemic hit global markets on March 16, 2020, while other Wall Street indices posted similar declines. The violent market crash came after Trump announced on Wednesday the toughest trade barriers from Washington in more than 100 years, sending investors in search of safe-haven assets. "If the current series of tariffs holds, a recession in the second or third quarter is very possible, as is a bear market," said David Bahnsen, chief investment officer of The Bahnsen Group. "The question is whether President Trump will seek some sort of exit from these policies if and when we see a bear market in the stock market. We believe Trump will focus on the number of companies making significant investments in the United States, but it is unclear whether this will reverse market sentiment." U.S. stock futures stabilized in the first Asian session, with Nasdaq futures NQ1! up 0.05%, while S&P 500 futures fell by 0.06%.
US stock futures stabilized in the first Asian session, with Nasdaq futures up 0.05%, while S&P 500 futures ES1! fell by 0.06%. Due to increased concerns about a global recession, particularly in the United States, traders have increased bets on further Federal Reserve rate cuts this year, believing that policymakers should ease more aggressively to support growth in the world's largest economy. Fed funds futures now point to about 96 basis points of cuts by December, up from about 70 basis points just before Trump's tariff announcement on Wednesday. "Central banks are not well equipped to deal with stagflation, as the impacts of slower growth and higher inflation push policy in opposite directions," said David Doyle, chief economist at Macquarie Group. "This means that stronger core inflation will likely limit the scope of any policy response by the Fed due to the headwinds created for growth." Fed Chair Jerome Powell will speak later on Friday and investors will be looking for his latest assessment of the US economy and any clues on policy outlook after the new wave of Trump tariffs. In the currency market, the dollar rose 0.09% against the yen USDJPY to 146.23, after plunging 2.2% in the previous session, the sharpest daily drop in more than two years.
In the currency market, the dollar rose by 0.09% against the yen USDJPY at 146.23, after plunging 2.2% in the previous session, the biggest daily drop in more than two years.
On the currency market, the dollar rose by 0.09% against the yen USDJPY at 146.23, after having plunged by 2.2% in the previous session, the biggest daily drop in more than two years. The euro EURUSD stabilized at 1.1043 dollars after Thursday's 1.9% jump, while the Swiss franc was last at 0.8591 per dollar, after also posting a 2.6% surge on Thursday.
The euro EURUSD stabilized at 1.1043 dollars after Thursday's 1.9% jump, while the Swiss franc last stood at 0.8591 per dollar, after also recording a 2.6% surge on Thursday.
The euro stabilized at 1.1043 dollars after Thursday's 1.9% jump, while the Swiss franc USDCHF was last at 0.8591 per dollar, after also recording a 2.6% surge on Thursday.
The euro stabilized at 1.1043 dollars after Thursday's 1.9% jump, while the Swiss franc USDCHF last stood at 0.8591 per dollar, after also recording a 2.6% surge on Thursday. Against a basket of currencies, the dollar DXY remained near a six-month low at 102.04. "Much of the dollar's weakness is due to the fact that the dollar has been a bit weaker than the dollar.
Compared to a basket of currencies, the dollar remained close to a six-month low at 102.04. "Much of the dollar's weakness DXY is due to the fact that the dollar has been a bit weaker than the dollar." "Much of the weakness of the US dollar this year can be traced back to the weight of long positions accumulated at the end of the year and the renewed focus on US growth risks that have accompanied tariff talks for weeks," said Jane Foley, senior FX strategist at Rabobank. Safe-haven currencies, such as the yen and the Swiss franc, have benefited from investors fleeing to safe assets, which has also seen a surge in bond prices. The benchmark 10-year US Treasury yield US10Y remained little changed at 4.0436%, after falling 14 basis points in the previous session. Government bond yields move inversely to prices.
The benchmark yield on the 10-year US Treasury US10Y remained little changed at 4.0436%, after falling by 14 basis points in the previous session. Government bond yields move inversely to prices. Elsewhere, spot gold GOLD remained close to a record high at $3,112.81 an ounce, and headed for a fifth consecutive weekly gain, thanks to concerns over the impact of Trump's tariffs on the global economy, which increased the appeal of the metal as a safe haven asset.
Elsewhere, spot gold GOLD remained close to a record high at $3,112.81 an ounce, and was heading for its fifth consecutive weekly gain, thanks to concerns about the impact of Trump's tariffs on the global economy, which increased the metal's appeal as a safe haven asset. Oil prices extended their sharp decline from the previous session, with Brent futures BRN1! down 0.13% at $70.05 a barrel, while U.S. West Texas Intermediate crude futures fell 0.15% to $66.85 a barrel.
Oil prices extended their sharp decline from the previous session, with Brent futures down 0.13% at $70.05 a barrel, while US West Texas Intermediate crude futures CL1! fell 0.15% to $66.85 a barrel.
VOICE SUMMARY LINK: https://t.me/seriamentetrading/2688