Global stock markets wobble while China-U.S. trade spat continues

The Associated Press

· Posted: Apr 11, 2025 9:09 AM EDT | Last Updated: 10 minutes ago

Global shares wobbled Friday aft the latest escalation successful the China-U.S. commercialized war, with Japan and immoderate European markets slipping portion others stood firm.

The futures pointed toward flimsy gains earlier trading opened successful North America — the S&P 500 precocious 0.7 per cent while futures for the Dow Jones Industrial Average were up 0.4 per cent.

The deepening worries implicit U.S. President Donald Trump's commercialized warfare caused Tokyo's benchmark to initially autumn much than five per cent. It aboriginal regained immoderate ground, closing three per cent lower astatine 33,585.58.

Then, China announced it was boosting its tariffs connected U.S. exports to 125 per cent, to lucifer the level of U.S. tariffs not including an earlier 20 per cent imposed weeks ago.

"The U.S. alternately raising abnormally precocious tariffs connected China has go a numbers game, which has nary applicable economical significance, and volition go a gag successful the past of the satellite economy," a Chinese Finance Ministry spokesperson said successful a connection announcing the caller tariffs. "However, if the U.S. insists connected continuing to substantially infringe connected China's interests, China volition resolutely antagonistic and combat to the end."

WATCH | Trade war: How acold volition China spell to bushed the U.S.? 

Early Friday, the 10-year Treasury output was astatine 4.40 per cent. The markets' swings person deed the enslaved marketplace and Treasury yields person jumped arsenic enslaved prices fell connected dense selling. That disquieted experts aboriginal successful the week due to the fact that bonds are typically viewed arsenic a harmless haven for investors during times of instability, but alternatively they were ditching U.S. authorities bonds fixed the U.S. government's tariff argumentation was the root of the instability.

In announcing a 90-day hold successful implementing his higher tariffs against dozens of countries, Trump mentioned that the enslaved marketplace was a spot "queasy."

The 10-year Treasury output changeable up to astir 4.50 per cent Wednesday greeting from conscionable 4.01 per cent at the extremity of past week. It calmed somewhat pursuing Trump's U-turn Wednesday connected tariffs, dropping each the mode backmost to 4.30 per cent shortly aft the merchandise of a better-than-expected study connected ostentation Thursday morning.

In aboriginal European trading, Germany's DAX shed one per cent to 20,353.16, portion the CAC 40 successful Paris mislaid 0.4 per cent to 7,100.90. Britain's FTSE 100 gained 0.5 per cent as the authorities reported the economy, the world's sixth largest, enjoyed a maturation spurt successful February, the period before Trump started to rotation retired tariffs connected imported goods. It expanded 0.5 per cent in February, up of marketplace expectations for a much humble summation of 0.2 per cent.

South Korea's Kospi fell 0.5 per cent to 2,432.72, portion successful Australia, the S&P/ASX 200 shed 0.8 per cent to 7,646.50.

Chinese markets rallied aft President Xi Jinping met with Spanish Prime Minister Pedro Sanchez and Beijing announced plans for Xi to sojourn Vietnam, Malaysia and Cambodia.

China has been seeking to articulation forces with different countries successful evident hopes of forming a agreed beforehand against Trump. The world's second-largest system is besides ramping up its ain countermeasures to Trump's tariffs.

LISTEN: What did Trump conscionable bash to the economy? 

Hong Kong's Hang Seng picked up 1.1 per cent to 20,914.69 and the Shanghai Composite Index climbed 0.5 per cent to 3,238.23.

Taiwan's Taiex gained 2.8 per cent as investors anticipated that orders for the island's high-tech products volition surge arsenic commercialized betwixt the U.S. and the Chinese mainland dwindles.

On Thursday, the S&P 500 tumbled 3.5 per cent, slicing into Wednesday's surge of 9.5 per cent following Trump's determination to intermission galore of his tariffs worldwide. The Dow Jones Industrial Average dropped 2.5 per cent and the Nasdaq composite tumbled 4.3 per cent.

Investors are viewing Trump's determination to hold higher tariffs for astir countries for 90 days arsenic a ploy, not a pivot, Stephen Innes of SPI Asset Management said successful a commentary.

"That's the marketplace hitting the brakes, hard. The sweetener precocious from Trump's tariff intermission is fading fast," helium wrote.

Losses for U.S. stocks accelerated aft the White House clarified that the United States volition taxation Chinese imports astatine 145 per cent, not the 125 per cent rate that Trump had written astir successful his posting connected Truth Social Wednesday, erstwhile different antecedently announced tariffs were included. The driblet for the S&P 500 exceeded six per cent at 1 point.

In different dealings aboriginal Friday, U.S. benchmark crude lipid added 47 cents to $60.54 per tube successful physics trading connected the New York Stock Exchange.

Brent crude, the planetary standard, added 40 cents to $64.73 per barrel.

One dollar bought 142.58 Japanese yen, down from astir 145 yen a time earlier. The Euro roseate to $1.1380 from $1.1200.