 Reactions in the US markets to the long-anticipated reciprocal tariff announcement were decisively negative. NASDAQ futures tumbled more than -3%, while DOW futures shed as much as -2% at one point. US 10-year yields plunged below the 4.1% mark, highlighting a strong wave of safe haven flows. The reactions confirm what traders feared most—not just new tariffs, but the sheer complexity and breadth of the measures rolled out by the White House. However, the global market reaction was more uneven. Japan’s Nikkei plummeted by over -1,000 points, nearly -3%, reflecting its vulnerability given the 24% tariff rate applied to its goods. Meanwhile, Hong Kong’s HSI fared relatively better, falling by just -1.5%, while Singapore’s Straits Times Index even managed to claw back most of its early mild losses. In currency markets, Aussie and Kiwi led the declines, driven by broad risk aversion and China’s exposure to some of the harshest tariff levels. Dollar also came under pressure, as investors pulled out of US assets. Yen emerged as the day’s biggest gainer on classic safe-haven flows, followed by Swiss Franc. Euro, Pound, and Canadian Dollar showed some resilience, as the EU, UK, and Canada either received relatively milder rates or were temporarily spared.... |
