Trump’s Tariffs Spark Global Market Turmoil
President Trump announced a new wave of tariffs targeting major global economies, sending shockwaves through international markets. While an initial 10% baseline tariff offered a brief respite, country-specific tariffs ranging from 10% to 34% quickly erased gains, sparking fears of a global trade war and impacting US futures, tech stocks, and even Bitcoin.
Trump announced a complex tiered tariff system targeting various countries. He justified the tariffs by claiming the US has been unfairly treated in global trade, using strong language to describe the perceived exploitation.
U.S. Market Wrap
The Nasdaq was particularly hard hit, with futures dropping over 1.5% as major tech companies saw their share prices decline in after-hours trading. Nasdaq futures fell over 1.5%. Magnificent Seven tech stocks fell in after-hours trading.
ASX Outlook
Despite the global downturn, the ASX is predicted to open slightly higher, reflecting the initial positive reaction to the baseline tariff announcement. However, this initial optimism is expected to be short-lived as the market absorbs the full impact of the targeted tariffs. ASX 200 futures suggest a 0.5% increase at the open. Volatility is expected throughout the trading day.
ANZ bank will need to hold an additional $250 million in capital reserves. This is a result of regulatory scrutiny and the bank’s acceptance of a court enforceable undertaking related to risk management weaknesses.ANZ must hold an extra $250 million.
Economic Data
Key Australian economic data releases are scheduled for today, including the RBA’s Financial Stability Review and job vacancy figures. These releases will provide further insights into the health of the Australian economy.
Economic data releases from major economies will also be in focus, with March services data from France, the UK, and the US will be released. US trade data and weekly jobless claims are also due.
