Global stocks rebound, but tariff risks remain looming

Illustration (Source: Internet)

Optimistic… in the short term

After days of market crashes that wiped trillions of dollars off global equity markets and rocked U.S. Treasury bonds and the dollar, Trump on Wednesday announced a 90-day pause on reciprocal tariffs on many countries.

That sent a positive ripple effect through global equity markets, starting with Wall Street, where the “Big Seven” stocks surged back, adding more than $1.5 trillion in market value overnight. The S&P 500 and Nasdaq Composite posted their biggest daily gains in more than a decade.

In Asia, investors also welcomed Mr Trump’s temporary tariff delay. Japan’s Nikkei jumped 8%. Chinese stocks also opened in the green, with the blue-chip CSI300 up 1.6%; Hong Kong’s Hang Seng Index rose 3.3%.

While European futures jumped, with EUROSTOXX 50 futures and DAX futures up around 8% each; FTSE futures up 5.5%.

This week’s sharp bond sell-off also showed some signs of easing on Thursday, with the yield on the benchmark 10-year Treasury note falling to 4.2889%, after hitting a high of 4.5150% in the previous session.

Risks still exist

However, Nasdaq futures fell 0.7% and S&P 500 futures fell 0.3%. The US dollar also fell in Asian trading on Thursday, highlighting market uncertainty about the long-term outlook as trade tensions persist.

In fact, Mr. Trump only postponed the imposition of reciprocal tariffs for 90 days, and the general 10% tariff on most imports into the US remains in effect. Mr. Trump even announced that he would increase tariffs on Chinese imports to 125%.

Sell-offs in US Treasuries in previous sessions also raised concerns about fragility in the world's largest bond market.

“Persistent inflation, a patient (Federal Reserve) (not cutting rates anytime soon), a potential foreign buyer boycott, hedge fund deleveraging, rebalancing of bonds to cash and an illiquid Treasury market are all reasons why Treasury yields continue to rise,” said Lawrence Gillum, fixed income strategist at LPL Financial.

In minutes from their March policy meeting released on Wednesday, Fed policymakers signaled they would not rush to the rescue by cutting interest rates because they expect higher tariffs to boost inflation, even as they worry Trump's trade policies could deal a blow to economic growth.

Markets are now pricing in just around 80 basis points of a rate cut in December, down from more than 100 basis points at the start of the week.

Concerns about trade tensions were also evident in falling oil prices, while spot gold prices continued to rise, most recently up 0.5% to $3,097.52/oz.

Source: https://thoibaonganhang.vn/co-phieu-toan-cau-phuc-hoi-nhung-rui-ro-thue-quan-van-con-lon-162552.html