Global markets plunged sharply on Friday, with stocks and the US dollar falling as gold surged to a new record. Investors panicked again after President Donald Trump admitted his tariff policies could trigger a “transition cost.”
Markets initially soared after Trump announced a 90-day delay on new tariffs, sparking relief rallies worldwide. However, investor sentiment quickly reversed upon realizing underlying trade tensions remained unresolved.
Trump intensified his trade conflict with China, leading to a renewed sell-off. Equities quickly lost the previous day’s gains, marking a highly volatile trading week.
Major Asian Markets Deep in Losses
Asian stocks faced heavy losses at the end of the week. Tokyo’s Nikkei 225 dropped over 4%, sharply reversing Thursday’s 9% rally. Markets in Sydney, Seoul, Singapore, Taipei, Wellington, Jakarta, and Manila are also red-lipped.
However, Ho Chi Minh City stocks bucked the trend, rising after Vietnam announced plans for trade talks with the US.
📉🌍 Global Stocks Plunge, Dollar Sinks as Tariff War Spurs Bond Rout and Recession Fears
Tickers of interest: $USD $DXY $XAUUSD $SPX $NDX $HSI
Full Story → https://t.co/Ip5ju6wUod pic.twitter.com/tDWyJzFyde
— PiQ (@PiQSuite) April 11, 2025Hong Kong stocks declined significantly in China, though Shanghai showed fluctuations as investors anticipated possible economic stimulus from Beijing. China’s government confirmed a “moderately loose” monetary policy to soothe investor anxiety.
Wall Street Suffers Heavy Declines
US markets mirrored the global sentiment, experiencing significant downturns. Wall Street posted large gains of up to 12% on Thursday, only to relinquish a substantial portion on Friday. The Dow Jones closed down 2.5%, the S&P 500 dropped 3.5%, and the Nasdaq fell by 4.3%.
The dollar weakened notably against major currencies, including the yen, euro, pound, and Swiss franc. Investors turned away from traditionally safe US Treasuries, selling dollar-denominated assets amid heightened economic risks.
Read: WTO Warns US-China Tariff War Could Slash Trade by 80%
Gold prices, benefiting from panic-driven investment shifts, soared above $3,200, reaching record highs. Conversely, fears of an impending global recession pushed oil prices further downward.
Chris Weston of Pepperstone Group highlighted investor concerns, stating markets exhibited a clear “sell US” trend. He attributed this to global investors withdrawing capital from US-based risks.
Michael Krautzberger of Allianz Global Investors warned of more significant issues. He suggested the falling dollar could signal investors questioning its role as a global reserve currency.
Analysts also expressed concern that ongoing trade disputes might evolve into broader economic conflicts, potentially escalating into a full-scale capital war.
Trump’s Tariff Strategy Sparks Controversy
President Trump argues his tariffs aim to reshape the global economy by incentivizing manufacturers to relocate to the US and reducing barriers to American goods.
Acknowledging temporary challenges, Trump stated, “There will be a transition cost,” but dismissed market turbulence. Commerce Secretary Howard Lutnick echoed Trump’s optimism, describing the administration’s approach as essential to long-term prosperity.
Trump, however, warned tariffs might resume if satisfactory agreements aren’t reached during negotiations.
Key Market Figures
| Market/Asset | Change | Value | Previous/Comparison |
|---|---|---|---|
| Tokyo – Nikkei 225 | Down 4.2% | 33,148.45 | – |
| Hong Kong – Hang Seng | Down 1.1% | 20,452.64 | – |
| Shanghai – Composite | Down 0.3% | 3,214.14 | – |
| Dollar/Yen | Down | 143.43 yen | 144.79 yen |
| Euro/Dollar | Up | $1.1305 | $1.1183 |
| Pound/Dollar | Up | $1.3021 | $1.2954 |
| West Texas Intermediate | Down 0.7% | $59.63/barrel | – |
| Brent Crude | Down 0.7% | $62.92/barrel | – |
| New York – Dow | Down 2.5% | 39,593.66 | – |
| London – FTSE 100 | Up 3.0% | 7,913.25 | – |
