Global Markets Tumble as Trade Tensions Deepen and Safe-Haven Rush Intensifies
SINGAPORE, April 11 –
Global markets ended the week sharply lower as escalating trade tensions between the United States and China rattled investors, sending shockwaves through stocks, bonds, and currencies.
Major indices across Asia posted heavy losses, with Japan’s Nikkei plummeting 4.5% and South Korea’s Kospi falling 1.7%. Hong Kong’s Hang Seng and China’s CSI300 index also slipped into the red. U.S. futures pointed to further declines, with both the S&P 500 and Nasdaq down about 1% in pre-market trading.
The selloff intensified as worries over a possible recession grew, fueled by a wave of tit-for-tat tariff hikes between Washington and Beijing. Analysts warned that confidence in U.S. assets is eroding rapidly, reflected in the steep decline of the dollar and the sharp rise in bond yields.
“There’s a clear flight from U.S. assets,” said Kyle Rodda, senior market analyst at Capital.com. “It’s more than just trade war fears — it’s about the underlying trust in the U.S. economy.”
In currency markets, the dollar tumbled to a 10-year low against the Swiss franc and a six-month low against the yen. The euro strengthened notably, rising 1.7% to levels last seen in early 2022. The U.S. dollar index slipped below 100 for the first time since July 2023.
Investors flocked to safe havens, pushing gold prices to a fresh all-time high of $3,214 per ounce. Meanwhile, U.S. Treasury yields surged, with the 10-year note climbing to 4.475%, marking the biggest weekly rise since 2001. Thirty-year yields soared to 4.90%, the largest weekly jump since at least 1982.
Despite a temporary boost after President Trump announced a partial rollback of some tariffs, fears quickly resurfaced as China retaliated with higher duties. Markets largely brushed off U.S. inflation data showing a surprise dip in consumer prices, focusing instead on the broader risk environment.
Oil prices also dipped, with Brent and West Texas Intermediate crude both down nearly 0.5% after sliding over $2 per barrel the previous day.
“The road ahead looks increasingly uncertain,” said James Athey, investment manager at Marlborough. “Markets are reacting to a landscape where few answers — and even fewer assurances — are available.”