Morning report

Putting the Red in Red, White, and Blue

Global markets fell sharply following Trump’s sweeping tariff announcement on Liberation Day. A minimum 10% tariff on most—if not all—major US trading partners sent Wall Street into the red. Major benchmarks in Europe, the UK, and Asia also posted steep declines.

Batch tariffs from Liberation Day send Wall Street sharply down

The NASDAQ lost -5.4%, the S&P 500 fell -4.4%, and the DOW dropped -3.3% as investors reacted to Trump’s aggressive tariff policy. Liberation Day introduced a minimum 10% tariff on imports from most major US trading partners, with the EU, Japan, Vietnam, and China facing even higher rates. China vowed to retaliate, fuelling fears of a more severe trade war than previously seen.​​​​​​​ Megacaps tumbled: Apple dropped -9.3% after the aggregate tariff on Chinese imports reached 54%. Nvidia fell -7.0%, and Amazon -8.4%. Retailers were hit hard, with Nike down -13.1% and Ralph Lauren -15.9%. The banks weren’t spared—Citigroup and Bank of America both fell -9.0%. Energy giants Exxon Mobil and Chevron declined -4.0% and -5.1% respectively, as crude prices also slumped. In bond markets, the US two-year Treasury yield fell -18 bps to 3.72%, while the 10-year dropped -14 bps to 4.05%.

Europe into the red following reciprocal tariffs

Trump’s sweeping tariff announcement dragged European markets lower, with the STOXX 600 down -2.6% and London’s FTSE 100 falling -1.6%. The UK market saw smaller losses, likely due to its imports facing only a 10% tariff, compared to the EU’s 20%. Regional data showed the Producer Price Index (PPI) rose +3.0% year-on-year in February, up from +1.7% in January.

Australasia down following Liberation Day tariffs

Liberation Day triggered a -0.9% fall in the ASX 200, after the US imposed a 10% tariff on Australia’s US$14b worth of exports.​​​​​​​ ANZ was hit with an enforceable undertaking and an additional capital penalty, falling -1.4%. Ansell sank -14.4% as its PPE manufacturing operations across Southeast Asia attracted tariffs of 24%, 36%, and 44% depending on the country. In New Zealand, the NZX 50 rose +0.1%, recovering from earlier weakness. Fisher & Paykel Healthcare also clawed back losses tied to concerns about its Mexican manufacturing exposure, closing up +0.2%. Across Asia, markets weakened. Japan’s Nikkei 225 led losses, down -2.8%, followed by the Hang Seng at -1.5%. Korea’s Kospi slipped -0.8%, while China’s CSI 300 and Shanghai Composite fell -0.6% and -0.2% respectively.

WTI Crude and Gold down, ​​​​​​​Iron Ore up

WTI Crude fell sharply (-6.7%) to US$66.94/bbl, Gold  lost -0.9% to US$3,106.56/oz, Iron Ore gained +2.0% to US$104.25/MT.