- Asian Stocks Bounce Back After Worst Day on Record: Markets Wrap
Shares in Asia rebounded after posting a historic loss, as Japan led gains on expectations that it will get priority
in US trade talks. Treasuries gained after Monday’s sharp selloff. Benchmark gauges in Japan rose more than
5%, along with futures contracts for the US and Europe. Equities in Hong Kong and China advanced as state
linked funds scooped up assets and the central bank promised loans to help stabilize the market. Oil gained
while gold climbed for the first time in four days. The dollar slipped against major peers. Volatility has surged
with $10 trillion wiped off global equities after the US unveiled sweeping tariffs last week. As fears of a global
recession and escalating trade war mounted, investors have been left clinging onto any signs of respite. For
now though, President Donald Trump has threatened to slap an additional 50% tariffs on China, while dangling
the prospects of some negotiations. - Dow slides more than 300 points as Trump tariffs rattle stocks for a third day
The Dow Jones Industrial Average fell for a third day following President Donald Trump’s tariff rollout, with the
president threatening even higher rates against China on Monday. The session was a wild one as traders tried
to speculate when the market would bottom from Trump’s tariff turmoil, with the Dow posting its largest
intraday point swing ever recorded. Trading volume also reached its highest level in at least 18 years, with
markets trading about 29 billion shares. That surpassed Friday’s volume of 26.77 billion shares, as well as the
10-day average volume of 16.94 billion shares. The Dow Jones Industrial Average dropped 349.26 points, or
0.91%, to close at 37,965.60. The 30-stock average had fallen more than 1,700 points during its Monday session
low. It then swung 2,595 points from low to high, in a record reversal. The S&P 500 shed 0.23% to end at
5,062.25. The broad market average was down 4.7% at the lows of the session. It briefly entered bear market
territory during the session, but was last off nearly 18% from its recent high. The Nasdaq Composite inched
higher by 0.10% to settle at 15,603.26. Investors stepped in to buy some megacap tech stocks such as Nvidia
and Palantir. At its low in the session, the tech-heavy index was off more than 5%. - Oil prices climb 1% after heavy U.S. tariff-driven selloff
Oil prices rose more than 1% on Tuesday, rebounding after a hefty selloff in recent sessions led by concerns
that U.S. tariffs might depress demand and lead to a global recession. Brent futures were up 81 cents, or 1.26%,
at $65.02 per barrel, while U.S. West Texas Intermediate crude futures rose 92 cents, or 1.52%, to $61.61, at
0051 GMT. On Monday, oil prices slid 2%, nearing a four-year low, due to fears that U.S. President Donald
Trump’s latest trade tariffs could thrust global economies into recession and diminish energy demand.
Markets, however, anticipate a potential limit to the downward trajectory of oil prices. Trump maintains that
the tariffs – a minimum of 10% for all U.S. imports, with targeted rates of up to 50% – would facilitate the revival
of the U.S. industrial base which he says has been declining due to decades of trade liberalization. While many
countries are seeking an exemption or at least reduction in the tariffs, some, including China, the world’s
second-largest economy after the U.S., have announced plans for reciprocal tariffs. Trump said he would
impose even more tariffs on China if Beijing does not withdraw its countermeasures. - Gold rises as trade war jitters revive safe-haven demand
Gold prices rebounded on Tuesday from a near four-week low reached in the previous session, as heightened
concerns over the global trade war between the United States and its key trading partners lifted investor
appetite for safe-haven assets. Spot gold was up 0.5% at $2,996.6 an ounce, as of 0340 GMT. Bullion hit its
lowest level since March 13 on Monday. U.S. gold futures gained 1.3% to $3,010.70. U.S. President Donald
Trump ramped up tariff threats against China on Monday, while the European Union outlined plans
for retaliatory duties, deepening fears of a drawn-out trade war that could tip the global economy into
recession. “Escalation of the trade war could trigger a global recession, and that is driving safe-haven demand,”
said Reliance Securities’ senior analyst Jigar Trivedi. “Despite slipping in the previous sessions, gold is still strong
and should remain on the upward trend,” because of the bullish undertone. Trump said he was not considering
a pause on tariffs to facilitate negotiations with trading partners, but mentioned that he would engage in
discussions with China, Japan and other countries regarding the duties. Gold, often considered a safe
investment during times of political and financial uncertainty, scaled an all-time peak of $3,167.57 on April 3.
Markets will be closely monitoring minutes from the U.S. Federal Reserve’s latest policy meeting, scheduled
for release on Wednesday. Traders also await U.S. Consumer Price Index data, due on Thursday, and the
Producer Price Index on Friday for U.S. interest rate cues amid escalating global trade war and recession fears. - China says it will ‘fight to the end’ after Trump threatens 50% additional tariffs
China’s Commerce Ministry said it “resolutely opposes” U.S. President Donald Trump’s threat of escalating
tariffs, and vowed to take countermeasures to safeguard its own rights and interests. The comments came
after Trump said he would impose an additional 50% duty on U.S. imports from China Wednesday, if Beijing
does not withdraw the 34% tariff it imposed on American products last week. “The U.S. threat to escalate tariffs
on China is a mistake on top of a mistake,” the statement said, according to a CNBC translation. “China will
never accept it. If the U.S. insists on its own way, China will fight to the end.” Last Friday, China’s Finance
Ministry announced 34% in additional tariffs on all goods imported from the U.S., starting April 10, in retaliation
to Trump imposing new levies of 34% on China. The across-the-board tariffs followed two previous rounds of
10%-15% tariffs, targeting mostly agricultural and energy products imported from the U.S. The broadened tariff
scope reflects Chinese leadership’s diminished hopes for a trade deal with the U.S., said Gabriel Wildau,
managing director at Teneo. Trump’s 34% tariffs on China were on top of the 20% duties rolled out since
February, bringing the total new tariffs this year on China to 54%. The additional levies have lifted U.S.
weighted average tariff rate on China to as high as 65%, and could dent China’s economy by 1.5 to 2 percentage
points this year, according to Morgan Stanley. - Defense stocks abruptly stem losses as Trump’s tariffs wreak havoc on global markets
U.S. President Donald Trump appeared to double down on his aggressive trade policy after rolling out sweeping
new tariffs last week, saying that “sometimes you have to take your medicine.” European defense stocks, which
have surged in recent months amid a regional push for strategic independence, pared back losses as a sell-off
in the sector eased through the trading session. Shares of German defense giant Thyssenkrupp fell 6.4%,
Germany’s Renk Group traded 3.3% lower, while France’s Thales slipped 4%. - Trump orders new review of U.S. Steel acquisition by Japan’s Nippon Steel
President Donald Trump on Monday ordered the proposed acquisition of U.S. Steel by Japan’s Nippon Steel to
undergo a new review after the deal was blocked by President Joe Biden. Trump directed the Committee on
Foreign Investment in the United States to review the acquisition again to assist “in determining whether
further action in this matter may be appropriate,” according to a presidential action issued by the White House
on Monday. U.S. Steel stock spiked more than 16% in reaction to the decision, closing at $44.49 per share.
Trump gave the committee 45 days to submit a recommendation on whether measures suggested by U.S. Steel
and Nippon “are sufficient to mitigate any national security risks.” Biden blocked the $14.9 billion deal in
January, citing a potential threat to critical supply chains posed by one of the largest steel producers in the U.S.
coming under foreign control. Trump has also opposed the deal, but the president appeared to soften his
position in February during a meeting with Japanese Prime Minister Shigeru Ishiba. Trump said at the time that
Nippon would invest heavily in U.S. Steel rather than purchase the company. - Shell expects lower natural gas production and LNG volumes in the first quarter of 2025 due to
unplanned maintenance in Australia and adverse weather
Oil production is expected to be slightly higher than planned, refining margins rose from the previous quarter,
and the company signaled a strong quarter for oil trading. Shell’s integrated gas production is expected to be
910,000 to 950,000 barrels of oil equivalent, lower than previously expected. Shares fell 4.5%. - Rheinmetall AG
A brief initial plunge in Rheinmetall shares tempted the head of the German defense group to spend more than
€710,000 increasing his stake on Monday. Chief Executive Officer Armin Papperger bought two chunks of stock,
one at an average price of €1,065, the other at about €1,058, according to filings. After opening down 27%, the
stock erased all its declines and traded at €1,279 shortly before the close of trading. Shares worth about €1.8
billion changed hands, a record for a single day. Papperger’s bet may help soothe investor nerves after
President Donald Trump’s unswerving line on tariffs fueled an accelerated flight from risk assets Monday. - Caterpillar shares fell 2.8% after UBS analyst Steven Fischer downgraded the machinery stock to sell from
neutral
Fischer also downgraded CMI, PCAR, URI and TEX to sell, and in his building materials coverage, MLM and VMC
were cut to neutral. “We think there’s more earnings downside for Machinery companies related to
macroeconomic headwinds that is not yet priced in, despite the pullbacks in the stocks to date,” he wrote.
Recent underperformance mostly reflects direct impacts of tariffs and a “modestly more challenged” demand
and pricing environment than was reflected in prior expectations. His current view is that macroeconomic
impacts of tariffs and prolonged uncertainty will lead to “further deterioration in demand from most end
markets, including freight, construction, oil & gas, mining, and industrial activity generally”. Sees difficulties for
companies to boost product prices (in effort to pass along higher costs) without hurting volume and
margin.“There is still the potential for a rapid de-escalation in trade tensions/tariffs and Federal Reserve
actions, but we think there will be damage from actions already taken and continued uncertainty, and believe
the stock prices today reflect too much optimism,” Fischer says. - Broadcom announced plans to buy back as much as $10 billion in shares, saying it remains confident in
the chip industry
The board has authorized the repurchase through Dec. 31, Broadcom said. The announcement sent the
company’s shares up 3.2% in afterhours trading. The buyback “reflects the board’s confidence in the strength
of Broadcom’s diversified semiconductor and infrastructure software product franchises,” Chief Executive
Officer Hock Tan said. - Marvell Technology shares gained 3.4% in afterhours trading after the chipmaker agreed to sell an
automotive networking business to Infineon Technologies for $2.5 billion in cash
The acquisition of Marvell’s Automotive Ethernet division is expected to close in calendar 2025, the company
said. The unit is poised to generate revenue of $225 million to $250 million this year, with a gross margin of
around 60%. Automotive components have been a weak spot for the chip industry in recent quarters, hurt in
part by sluggish sales of electric vehicles. Marvell has been focusing more on chips for data centers, an area
that grew 78% in the fourth quarter. Its automotive and industrial division was up 4.1% during that period.
Customers of the Automotive Ethernet business include more than 50 car manufacturers, Infineon said in its
own statement. Infineon is financing the deal with existing liquidity and additional debt, and the business will
become part of Infineon’s automotive division. The acquirer aims to drive cost savings by combining research
and development and leveraging Infineon’s production. - CVS Health Corp & Humana Inc
The US government will pay private Medicare Advantage plans more money next year than it originally
proposed in January, with payments increasing by an average of 5.06%. The increase means the government
will pay private Medicare insurers at least $25 billion more next year than current rates, a huge improvement
over rates first proposed. The government paid private Medicare Advantage plans about $494 billion last year,
with over half of Medicare patients, or more than 30 million people, enrolled in these plans. Shares of related
stocks surged afterhours after the decision. CVS Health jumped 6.5% and Humana soared 11.3%. - Levi Strauss maintains annual forecast, shares surge more than 7%
Levi Strauss maintained on Monday its annual forecast for sales and profit, excluding the impact of tariffs, and
posted quarterly profit ahead of Wall Street targets, sending its shares up more than 7% in after hours trade.
Sweeping tariffs by President Donald Trump have sparked concerns over a global downturn and sharp price
hikes for items such as clothing and footwear. “While we recognize that we are operating in an uncertain
environment, our global footprint, strong margin structure, and agile supply chain position us to navigate the
balance of the year and beyond,” President and Chief Executive Michelle Gass said in a statement on Monday.
The company said in January that a diverse supply chain across 25 countries would allow it cross-source
products. Levi imports only about 1% of its merchandise directly from China into the U.S., while that for Mexico
was about 5%, its executives said in January. The retailer is looking at price increases as one of the mitigating
measures, said Gass, adding that price increases will be “surgical.” It has seen demand for wide-legged and
skinny jeans hold up – a trend in line with rivals such as Abercrombie & Fitch and Gap – despite shoppers being
selective in spending on discretionary items. In its quarterly filing with regulators, the company added that it
was analyzing the impact of tariffs and what it could do to minimize impact.
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