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Jitters about US tariffs hammered stocks and the dollar again Friday as President Donald Trump acknowledged the costs from his rollercoaster trade offensive but predicted a “beautiful” ending.After Trump relented on many tariffs but upped the ante on China, gold rose as discombobulated investors fled to safer assets, while warning lights kept flashing in bond markets and oil fell on recession fears.The US leader said Thursday that the European Union was “very smart” to refrain from retaliatory tariffs even as the bloc’s chief warned it could tax US Big Tech firms.”(The EU) were ready to announce retaliation. And then they heard about what we did with respect to China’,” Trump said.Trump acknowledged “a transition cost and transition problems,” but dismissed global market turmoil. “In the end it’s going to be a beautiful thing.”For investors, the realisation that nothing had been resolved, coupled with Trump’s decision to double down on his battle with economic superpower China, fuelled another bout of selling.On Wall Street, the broad-based S&P 500 finished down 3.5 percent on Thursday after soaring 9.5 percent the day before. The Dow Jones shed 2.5 percent and the Nasdaq 4.3 percent.On Friday in Asia, Tokyo sank more than four percent — a day after surging more than nine percent — while Sydney, Seoul, Singapore and others were also in the red. Oil and the dollar slid on fears of a global slowdown while gold hit a new record above $3,200, as investors spooked by Trump’s erratic policies dumped normally rock-solid US Treasuries.”The sugar high from Trump’s tariff pause is fading fast,” said Stephen Innes at SPI Asset Management.”Bottom line: the world’s two largest economies are in a full-blown trade war — and there are no winners.”- Climbdown -In a spectacular climbdown Wednesday, Trump paused for 90 days tariffs of 20 percent on the EU and even higher levies on other trade partners, including 24 percent on Japan.But levies on China, which has retaliated with tariffs on US goods, were not only maintained but hiked further.The White House on Thursday clarified that tariffs on Chinese imports are now at a staggering total of 145 percent.This was because the latest hike came on top of a 20 percent tariff already imposed. China has retaliated with levies of 84 percent on US imports.- ‘Golden Age’ -Trump says he wants to reorder the world economy by forcing manufacturers to base themselves in the United States and for countries to lower barriers to US goods.Howard Lutnick, his commerce secretary, posted on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”The EU welcomed the US president’s partial row-back and proffered its own olive branch, suspending for 90 days tariffs teed up on 20 billion euros’ ($22.4 billion) worth of US goods.But the 27-nation bloc’s chief Ursula von der Leyen told the Financial Times that it remained armed with a “wide range of countermeasures” if negotiations with Trump hit the skids.”An example is you could put a levy on the advertising revenues of digital services” applying across the bloc, she said.Trump likewise warned that the tariffs could come back after the 90 days.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.Chinese President Xi Jinping will visit Vietnam, Malaysia and Cambodia next week, Beijing’s foreign ministry said Friday.In its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.burs-stu/tym

Stocks and the dollar tumbled while gold hit a fresh record high as panic gripped markets again Friday after Donald Trump admitted that his global tariff blitz could see “a transition cost”.The US president’s decision to delay crippling duties for 90 days sparked a frenzied scramble for equities that had been beaten down since his “Liberation Day” announcement unleashed a global panic.However, the realisation that nothing had been resolved, coupled with Trump’s decision to double down on his battle with economic superpower China, fuelled another bout of selling.After blockbuster rallies Thursday in response to the 90-day tariff pause, markets across the region were back deep in negative territory at the end of a highly volatile week.Tokyo sank more than four percent — a day after surging more than nine percent — while Sydney, Seoul, Singapore, Taipei, Wellington, Jakarta and Manila were also in the red. Ho Chi Minh City stocks rallied, however, after Vietnam said it would hold talks with the US president.Hong Kong also dropped but Shanghai fluctuated as traders focused on possible Chinese stimulus measures instead of the fact that the country was now facing duties of up to 145 percent. Beijing also said Friday it would implement a moderately loose monetary policy in a bid to reassure investors.The losses followed a similar story on Wall Street, where the S&P 500 lost 3.5 percent, the Dow 2.5 percent and the Nasdaq 4.3 percent. That ate into the previous day’s gains of 9.5 percent, 7.9 percent and 12.2 percent.The selling was not limited to equities. The dollar tanked against the yen, euro, pound and Swiss franc — investors dropping what is usually considered a key safe haven currency as they look to unload US risk assets, including gold standard Treasuries.The weaker dollar and the rush for safety has also sent gold to a fresh record high above $3,200, while fears of a possible global recession have battered oil prices, which extended losses Friday.- ‘Ground Zero’ -“There has been a pronounced ‘sell US’ vibe flowing through broad markets and into the classic safe-haven assets, with the dollar losing the safe-haven bid put in over the past week,” said Pepperstone group’s Chris Weston.He added that the moves had “the feel of repatriation flows by foreign entities, with many re-focused on the idea that Trump’s reluctant pause on tariffs was due to increased system risk and migrating capital away from Ground Zero”. With Treasuries being sold off, sending their yields higher and making US debt more expensive, there is a fear of a bigger calamity down the line.Michael Krautzberger at Allianz Global Investors wrote: “A fall in the dollar could be a sign that markets are questioning its status as a global reserve currency.”Looking forward, the big fear is that the response to the additional US tariff threats in recent days, especially on Chinese goods, is the opening salvo from the big foreign holders of US Treasuries in tariff-hit countries, as they sell their US Treasury holdings. “A trade war morphing into a capital war would represent a significant escalation in recent tensions.”Trump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States and for other countries to decrease barriers to US goods.While he acknowledged Thursday there would be “a transition cost and transition problems”, the Republican dismissed the global market turmoil and insisted that “in the end it’s going to be a beautiful thing”.And commerce secretary Howard Lutnick posted on social media that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy”.Trump also warned that the huge tariffs delayed Wednesday would be reintroduced if no agreements had been made between Washington and other countries.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 4.2 percent at 33,148.45 (break)Hong Kong – Hang Seng Index: DOWN 1.1 percent at 20,452.64Shanghai – Composite: DOWN 0.3 percent at 3,214.14Dollar/yen: DOWN at 143.43 yen from 144.79 yen on ThursdayEuro/dollar: UP at $1.1305 from $1.1183Pound/dollar: UP at $1.3021 from $1.2954Euro/pound: UP at 86.83 pence from 86.33 penceWest Texas Intermediate: DOWN 0.7 percent at $59.63 per barrelBrent North Sea Crude: DOWN 0.7 percent at $62.92 per barrelNew York – Dow: DOWN 2.5 percent at 39,593.66 (close)London – FTSE 100: UP 3.0 percent at 7,913.25 (close)

Jitters about US tariffs hammered Asian stocks again early Friday as President Donald Trump acknowledged a “cost” to his surging trade offensive against superpower rival China.The US leader said Thursday that the European Union was “very smart” to back off from imposing retaliatory tariffs because of his tough stance on China even as the bloc’s chief warned it could tax US Big Tech.”(The EU) were ready to announce retaliation. And then they heard about what we did with respect to China… and they said, you know, ‘We’re going to hold back a little bit,'” Trump said.Trump acknowledged “a transition cost and transition problems,” but dismissed global market turmoil. “In the end it’s going to be a beautiful thing.”On Wall Street, the broad-based S&P 500 finished down 3.5 percent on Thursday after soaring 9.5 percent the day before. The Dow Jones shed 2.5 percent and the Nasdaq 4.3 percent.In early trade in Asia Friday, Japan’s Nikkei tumbled over five percent, handing back some of the 9.1-percent gain of the previous day. Seoul and Sydney also fell.Oil and the dollar slid on fears of a global slowdown while gold hit a new record. Fellow safe haven asset the yen also firmed against the greenback.- Climbdown -In a spectacular climbdown Wednesday, Trump paused for 90 days tariffs of 20 percent on the EU and even higher levies on other trade partners, including 24 percent on Japan.But levies on China, which has retaliated with tariffs on US goods, were not only maintained but hiked further.The White House on Thursday clarified that tariffs on Chinese imports are now at a staggering total of 145 percent.This was because the latest hike came on top of a 20 percent tariff already imposed. China has retaliated with levies of 84 percent on US imports.- Relief -Trump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States and for other countries to decrease barriers to US goods.Howard Lutnick, his commerce secretary, posted on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”The EU welcomed the US president’s partial row-back and the 27-nation grouping responded with its own olive branch.It suspended for 90 days tariffs on 20 billion euros’ ($22.4 billion) worth of US goods that had been greenlit in retaliation to duties on steel and aluminum.But the bloc’s chief Ursula von der Leyen told the Financial Times that there remained a “wide range of countermeasures” at the bloc’s disposal if negotiations fall short.”An example is you could put a levy on the advertising revenues of digital services” applying across the bloc, she said.This raised the possibility of the use of a new trade weapon called the anti-coercion instrument, according to the FT.Dubbed a “bazooka”, the weapon has never been used but empowers the EU to target services and could limit American companies’ access to public procurement contracts in Europe.Trump likewise warned that the tariffs could come back after the 90 days.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.In its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.Trump brushed off Beijing’s clampdown on US films, saying, “I think I’ve heard of worse things.”burs-stu/tym

US President Donald Trump’s delay of steeper tariffs may have won brief respite on Wall Street, but analysts say his actions — which hit China especially hard — already bring the average US effective tariff rate to its highest in over a century.Besides imposing sweeping new 10 percent tariffs on goods from most US trading partners, Trump has also unleashed steep duties on imports of steel, aluminum and autos since his White House return.But on Wednesday, he backed off even higher rates on dozens of economies, including the European Union and Asian manufacturing hub Vietnam, following a sharp sell-off in US government bond markets — though he doubled down on action against China.Many goods from the world’s second biggest economy now face levies of at least 145 percent — the total additional figure Trump has imposed this year.”The newly imposed tariffs now affect $2.4 trillion of US imports, or nearly 75 percent,” said Erica York of the Tax Foundation.”Compared to Trump’s first term, this is a massive escalation, as his first tariffs affected about $380 billion of US imports or 15 percent,” she told AFP.- ‘Highest since 1903′ -Researchers from the Budget Lab at Yale University estimate that “consumers face an overall average effective tariff rate of 27 percent, the highest since 1903.””This is only slightly different from where the effective rate was before the late-April 9 announcement,” they added.Even after accounting for consumption shifts, the average tariff rate will be 18.5 percent, the Budget Lab anticipates. This would be the highest since 1933.Thibault Denamiel, a fellow at the Center for Strategic and International Studies (CSIS), estimates that the US tariff rate was 2.4 percent in December 2024 — a figure which now stands north of 20 percent.”That’s mostly due to the fact that we still have a 125 percent tariff rate on China,” he said, referring to the latest duty Trump imposed on Chinese goods.The 125 percent tariff, which took effect Thursday, coupled with an earlier 20 percent over China’s alleged role in the fentanyl supply chain, putting Trump’s new tariffs targeting China this year to 145 percent.Even a much lower tariff would significantly impact the world’s biggest economy, Denamiel said, noting that China is the United States’ third most important trading partner.Analysts have also pointed out that Trump’s actions marked the biggest tariff increase since the Smoot-Hawley Act of 1930, which deepened the Great Depression.- Shrinking imports -Trump has claimed the United States was “taking in almost $2 billion a day” from tariffs.He has referred to them as a means to raise government revenue, boost the country’s industrial sectors and to pressure other governments on US priorities.But experts warn that prohibitively high duties on China will likely cause US imports from the country to contract.With Chinese tariffs reaching punitive levels, even conservative estimates suggest that China’s share of imports “should shrink dramatically,” said JPMorgan chief US economist Michael Feroli in a recent note.If this were to happen, York of the Tax Foundation added that imports from China would end up generating “very little tariff revenue.””Overall, we estimate the tariffs and announced retaliation will shrink US GDP by 1.0 percent,” she said.With Trump’s latest actions, Feroli expects “the drag from trade policy is likely to be somewhat less than before, and thus the prospect of a recession is a closer call.””However, we still think a contraction in real activity later this year is more likely than not,” he added.

Wall Street stocks resumed their free fall Thursday while the dollar stumbled as persistent concerns about the economic fallout from President Donald Trump’s trade wars put a fast end to the prior session’s surge.Major US indices spent the entire day in the red, disappointing traders who had been hoping to extend Wednesday’s rally following Trump’s pivot on tariffs.”There’s still a lot of apprehension,” said Tom Cahill of Ventura Wealth Management, who described the level of uncertainty now permeating markets as “nearly unprecedented for my 30-year career.”The broad-based S&P 500 finished down 3.5 percent at 5,268.05. The index had soared 9.5 percent on Wednesday.The dreary US session also put a damper on the day’s buoyant rounds in Europe and Asia, with Tokyo surging 9.1 percent and Frankfurt winning 4.5 percent.”Asia markets are flipping the switch — from fear to euphoria — as Trump throws a 90-day lifeline, pausing the reciprocal tariff barrage,” said Stephen Innes at SPI Asset Management.The gains in Asia and Europe followed Wednesday’s historic rally in New York following Trump’s decision to pause for 90 days many of his most onerous tariffs on trading partners, while doubling down on levies on China.US stocks wiped out trillions of dollars in value in the sessions after President Trump’s “Liberation Day” tariff announcement before the president’s reversal on Wednesday.But by Thursday, investors realized that Trump’s tariff pause “is not enough to get people back in this market,” said Peter Tuchman, senior floor trader at TradeMas Securities.  “It’s still no clarity,” Tuchman said. “We’re still in the midst of a major trade war with China, and so where do we go from here?”Data showed that US consumer inflation contracted 0.1 percent from a month earlier in a reading that was lower than analyst expectations.But traders have been unnerved by the massive reversals in Trump’s policies, resulting in uncertainty that economists warn can paralyze consumers and businesses.Oil prices tumbled on fears slowing growth would hit demand, while haven assets like gold and the Swiss franc benefitted from the search for safety.The dollar, meanwhile, slid more than two percent against the euro, evidence of the diminishing outlook for the US economy.”When you talk about rewriting the rules of economics, the result is going to be weaker growth in the United States,” said Adam Button on ForexLive. “The market is looking ahead to a period where ultimately the US is going to have a terrible policy of slow growth and high inflation.”- Key figures around 2050 GMT -New York – Dow: DOWN 2.5 percent at 39,593.66 (close)New York – S&P 500: DOWN 3.5 percent at 5,268.05 (close)New York – Nasdaq: DOWN 4.3 percent at 16,387.31 (close)London – FTSE 100: UP 3.0 percent at 7,913.25 (close)Paris – CAC 40: UP 3.8 percent at 7,126.02 (close)Frankfurt – DAX: UP 4.5 percent at 20,562.73 (close)Tokyo – Nikkei 225: UP 9.1 percent at 34,609.00 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 20,681.78 (close)Shanghai – Composite: UP 1.2 percent at 3,223.64 (close)Euro/dollar: UP at $1.1183 from $1.0949Dollar/yen: DOWN at 144.79 yen from 147.76 yen on WednesdayPound/dollar: UP at $1.2954 from $1.2820Euro/pound: UP at 86.33 pence from 85.43 penceWest Texas Intermediate: DOWN 3.7 percent at $60.07 per barrelBrent North Sea Crude: DOWN 3.3 percent at $63.33 per barrel

President Donald Trump claimed victory over Europe in the US tariffs war but acknowledged a “cost” to his surging trade offensive against superpower rival China as markets plunged again Thursday.Trump sought a victory lap at a White House cabinet meeting, saying the European Union had backed off from imposing retaliatory tariffs because of his tough stance on China.”They were very smart. They were ready to announce retaliation. And then they heard about what we did with respect to China… and they said, you know, ‘We’re going to hold back a little bit,'” he said.Trump acknowledged “a transition cost and transition problems,” but dismissed global market turmoil. “In the end it’s going to be a beautiful thing.”Treasury Secretary Scott Bessent was upbeat, telling reporters that “I don’t see anything unusual today,” as he touted better than expected US inflation numbers and other economic indicators.But major indices spent the entire day in the red, with the broad-based S&P 500 finishing down 3.5 percent after soaring 9.5 percent on Wednesday.The Dow Jones Industrial Average shed 2.5 percent, while the tech-rich Nasdaq slumped 4.3 percent.Oil and the dollar also slid on fears of a global slowdown in economic activity, while safe-haven asset gold hit a new record.Thursday’s market losses followed giddy gains on Wednesday in the aftermath of a stunning Trump climbdown, where he maintained a 10 percent blanket tariff on most countries but paused plans for tariffs of 20 percent on the EU and even higher levies on multiple other trade partners.The dialing back of the planned global trade war left most of the focus on China, the world’s number two economy after the United States.The White House on Thursday clarified that levies on Chinese imports are now at a staggering total of 145 percent — not the previously reported 125 percent.This was because the latest tariff hike comes on top of a 20 percent tariff already imposed earlier. China has retaliated with levies of 84 percent on US imports.- Relief -Trump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States and for other countries to decrease barriers to US goods.Howard Lutnick, his commerce secretary, was bullish, posting on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”Amid questions over how far Trump is ready to push, the European Union welcomed the US president’s partial row-back on his original threat to impose 20 percent tariffs against the bloc.The 27-nation grouping responded with its own olive branch, suspending for 90 days tariffs on 20 billion euros’ ($22.4 billion) worth of US goods that had been greenlit in retaliation to duties on steel and aluminum.”We want to give negotiations a chance,” EU chief Ursula von der Leyen said in a statement.She warned, however, that “if negotiations are not satisfactory, our countermeasures will kick in” and that all options remain on the table.Trump likewise warned that the partial thaw could return to deep freeze after a 90-day truce period.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.In its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.Trump brushed off Beijing’s clampdown on US films, saying, “I think I’ve heard of worse things.”burs-sms-tgb/md

The US-China trade war intensified Thursday, sending the global economy into unknown territory and dampening relief after President Donald Trump’s earlier climbdown from a wider tariff onslaught against the rest of the world.The White House clarified that Trump’s big hike in tariffs on China announced 24 hours earlier had actually taken his total levies this year on imports from the world’s second biggest economy to a staggering total of 145 percent — not the previously reported 125 percent.This was because latest tariff hike comes on top of a 20 percent tariff already imposed earlier. China has retaliated with levies of 84 percent on US imports.The superpower confrontation threw a deep shadow over jubilation that Trump was retreating from threats to impose punishing tariffs on dozens of other countries — everywhere from European Union allies to Asian manufacturing hubs like Vietnam and even tiny, remote ocean islands.Trump maintained a blanket 10 percent tariff on most countries. However, his retreat from more damaging levies against European countries prompted the EU to pause plans for its own retaliation.Amid relief, Asian and European stock markets rocketed, with Tokyo closing 9.1 percent higher.But realization that Trump’s splashy about-face on Wednesday masked the reality of a surging trade war with China dampened spirits.The Dow Jones in New York fell more than three percent and the S&P dropped 4.5 percent in morning trading. Gold prices hit a record high as the US dollar crumbled.- EU wants negotiations -Trump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States.Howard Lutnick, his commerce secretary, was bullish, posting on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”Amid questions over how far Trump is ready to push, the European Union welcomed the US president’s partial row-back on his original threat to impose 20 percent tariffs against the bloc.The 27-nation grouping responded with its own olive branch, suspending for 90 days tariffs on 20 billion euros’ worth of US goods that had been greenlit in retaliation to duties on steel and aluminum.”We want to give negotiations a chance,” EU chief Ursula von der Leyen said in a statement.She warned, however, that “if negotiations are not satisfactory, our countermeasures will kick in” and that all options remain on the table.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.In its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.burs-sms/bgs

Wall Street shares fell Thursday as a rally faded over lingering concerns about the economic fallout from President Donald Trump’s trade war despite his U-turn on steep new tariffs.A larger-than-expected drop in US consumer inflation in March added to the pessimistic outlook, as it suggested that uncertainty over Trump’s tariff plans has already taken a toll on the world’s largest economy.Investors in response sold off the dollar, which had already taken a hit from the trade war worries, even though slowing inflation would give the Federal Reserve more room to cut interest rates to spur growth.”Is inflation moving sustainably lower or did businesses and consumers pull in the reins as they brace for an economic slowdown?” said Bret Kenwell, US investment analyst at the eToro trading platform.”Getting lower inflation due to a material drop in economic activity — and thereby jeopardising the economy — isn’t the best route to take,” he added.Wall Street indices on Wednesday had posted their biggest one-day gains since 2008 after Trump announced the tariff pause, which had sent stocks lower around the globe in recent sessions.Asian and European markets staged their own rallies on Thursday.The shock decision to delay bigger levies on goods from scores of countries by 90 days drove the European Union to put its counter-tariffs on hold.The trade war fears had also pummelled US Treasuries — normally considered the safest option in times of crisis — a sign of how nervous investors had become.”The bottom line is that the tariff narrative still remains too volatile for comfort, and markets are searching for equilibrium in a sea of uncertainty,” said Fawad Razaqzada, a market analyst at StoneX.Trump nonetheless kept a baseline 10 percent tariff intact and ramped up his trade war with Beijing by hiking duties Chinese goods to 125 percent after facing strong retaliation.But Chinese markets still benefitted from the relief rally across Asia and Europe on Thursday, also gaining support from optimism that Beijing will unveil fresh stimulus measures to support its economy.Hong Kong rose more than two percent — a third day of gains after collapsing more than 13 percent on Monday, its worst trading day since the Asian financial crisis in 1997. “Crucially, we are currently still on course for a disorderly economic decoupling between the world’s two largest economies, with no immediate signs of either US or China backing down,” said Jim Reid, an analyst at Deutsche Bank. US Treasury yields have edged down after a successful auction of $38 billion in notes.That eased pressure on the bond market, which had fanned worries that investors were losing confidence in the United States.Tech firms were the standout performers, with Sony, Sharp, Panasonic and SoftBank chalking up double-digit gains, while airlines, car makers and casinos also enjoyed strong buying.Gold climbed two percent to $3,140 an ounce — closing in on its record touched last month — thanks to the weaker dollar and the metal’s safe-haven status. Oil prices dropped after bouncing more than four percent Wednesday, again under pressure from concerns about the global economy and its impact on demand.- Key figures around 1350 GMT -New York – Dow: DOWN 1.8 percent at 39,878.20New York – S&P 500: DOWN 2.1 percent at 5,339.21New York – Nasdaq: DOWN 2.8 percent at 16,641.78London – FTSE 100: UP 3.9 percent at 7,979.04 pointsParis – CAC 40: UP 4.9 percent at 7,200.24Frankfurt – DAX: UP 5.3 percent at 20,704.23 Tokyo – Nikkei 225: UP 9.1 percent at 34,609.00 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 20,681.78 (close)Shanghai – Composite: UP 1.2 percent at 3,223.64 (close)Euro/dollar: UP at $1.1130 from $1.0948 Dollar/yen: DOWN at 144.80 yen from 147.82 yen on WednesdayPound/dollar: UP at $1.2928 from $1.2810Euro/pound: UP at 86.12 pence from 85.45 penceWest Texas Intermediate: DOWN 4.5 percent at $59.51 per barrelBrent North Sea Crude: DOWN 4.2 percent at $62.73 per barrel

The EU paused plans for retaliatory tariffs on US goods Thursday after President Donald Trump abruptly suspended higher US duties on the bloc and other countries, leaving China in the crosshairs of his trade war.Trump’s about-face on Wednesday triggered a massive market rebound but Wall Street’s rally fizzled on Thursday and the dollar slumped, as investors remain on edge over the outlook for the world economy.The US president halted steep tariffs on scores of nations for 90 days. But he kept a global baseline tariff of 10 percent intact and punished Beijing for retaliating by slapping a 125 percent duty on its goods.The European Union, which had faced a 20 percent tariff, welcomed Trump’s U-turn, saying it was an “important step towards stabilising the global economy”.The 27-nation bloc responded with its own olive branch, suspending for 90 days tariffs on 20 billion euros’ worth of US goods that had been greenlit in retaliation to duties on steel and aluminium.”We want to give negotiations a chance,” EU chief Ursula von der Leyen said in a statement.She warned, however, that “if negotiations are not satisfactory, our countermeasures will kick in” and that all options remain on the table.Other countries are also lining up to bargain.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.- China hits Hollywood -But there was no let-up in Trump’s trade war with China, which said the US tariffs policy “goes against the will of the world and goes against the whole world”.The heightened tariffs against China took effect at the same time as retaliatory levies of 84 percent imposed by Beijing on US imports.Beijing added Hollywood to its target list on Thursday as it announced it would “moderately reduce” the number of US films it imports.But China’s commerce ministry said the door remained open for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.Trump has predicted that trade deals will be made with all countries, including China, which has for now refused to roll back retaliatory tariffs on US goods.”A deal’s going to be made with China. A deal’s going to be made with every one of them,” Trump said at the White House. However,  China’s leaders “don’t quite know how to go about it”.Trump believes his policy will revive America’s lost manufacturing base by forcing companies to relocate to the United States.The billionaire former property tycoon has particularly raged against China, accusing it of excess production and “dumping” inexpensive goods on other economies.- ‘A little queasy’ -Markets have been on a roller-coaster ride since Trump announced his tariff plans last week, with the 10 percent global levy taking effect on Saturday and the higher ones on Wednesday before the pause.Investors also began to dump US government bonds — a major economic red light since American sovereign debt is normally seen as a haven for investors in troubled times.”I saw last night where people were getting a little queasy,” Trump said Wednesday, though he denied that he backtracked on the tariffs.Wall Street’s main index were all down more than two percent as trading resumed on Thursday, a day after the tech-heavy Nasdaq soared 12 percent higher and the S&P 500 surged 9.5 percent.Asia and Europe caught up on Thursday, with Tokyo closing 9.1 percent higher as the Japanese government welcomed the tariff pause but demanded that other levies be halted.Paris and Frankfurt were up more than five percent in afternoon deals while London rose 4.5 percent.”This will go down in American history as the greatest trade negotiating day we have ever had,” said Trump’s senior trade advisor Peter Navarro.”We’re in a beautiful position for the next 90 days” to seek trade deals with partners, he told ABC News, adding that more than 75 have sought to negotiate with Washington.burs-oho-lth/phz

As stock prices flashed across a huge screen at a bustling intersection in China’s business hub Shanghai, finance workers shared their concerns after getting front-row seats to the global market turmoil wreaked by Donald Trump this week.After equities tanked at the beginning of the week, the US president on Wednesday paused the sweeping tariffs he had introduced on most countries. But he increased levies on China to 125 percent, citing a “lack of respect” over Beijing’s introduction of retaliatory duties. At lunchtime on Thursday in central Shanghai, the news didn’t appear to be disrupting people’s enjoyment of a warm spring day — but asked whether it had been an interesting week at work, a woman who gave her name as Catherine laughed. “Every night Trump sends out a social media post, then the market goes up or down… us finance professionals are getting first-hand experience of this,” she said, standing in front of a bronze-coloured statue of a bull charging.Shanghai lost over seven percent on Monday, though it has subsequently clawed back some of those losses. “We think (Trump’s) words and deeds have attacked all our financial systems, especially the global stock market,” a fellow worker surnamed Zhang told AFP. “He is a hugely unpredictable, uncertain factor, and this is a very big risk point from an investment perspective.”- ‘Just emotional rage’ -The Chinese government on Thursday urged the United States to meet it “halfway”, but the stand-off currently shows no sign of de-escalating. Catherine said that at this point the exact figure of the constantly rising tariff percentage made little difference. “As soon as (Trump) put 60 percent on, the trade relationship is over, so if he puts 100, over 100 percent on, that’s just another number, it’s just him expressing his emotional rage,” she said. Zhang said that although she hadn’t noticed any effect on her own life yet, the whole economy would eventually be impacted because of the importance of foreign trade to China’s growth. Overseas shipments represented a rare bright spot in a sluggish economy last year, with the United States as the top single country buyer of Chinese goods. “I hope there will be a mutual rejection of tariffs, that it can be negotiated as soon as possible, and that the negotiations will end well,” Zhang said.Semi-retired Arthur Zheng, who was taking his dog Charlie for a stroll in a pram, said he thought China could ultimately thrive on the competition. “If he raises (tariffs), we will also raise them… and everyone’s costs will get higher and higher,” he said. “But I think for everyday Chinese people… most things are not imported,” he said, gesturing at the pink floral shirt his dog was wearing. “It’s all domestically produced, we’re self-sufficient.” The 57-year-old held no animosity for the US president. “I think this guy is a hero,” he said animatedly. “The world needs someone to stir things up like this. But I hope he’s able to guide things in a positive direction — you don’t want him to stir and stir, stir the whole world up and then just stop at that, that’s not ok.”