President Donald Trump’s reciprocal tariffs have taken effect. The increasing tension in trade has supported a negative atmosphere in global markets. While the selling trend continues in stock markets, gold has again risen above $3,000. Oil, on the other hand, continues to be priced at its lowest level in 4 years.

President Donald Trump’s tariff measures have supported the high risk perception in markets. Tariffs higher than 10% applied to approximately 60 countries took effect. Uncertainties regarding the course of economic tensions between the two countries increased after the U.S. administration’s latest customs duty move towards China. Following China’s tariff retaliation, the announcement that the U.S.’s customs duties on China would be raised to 104% led to a renewed increase in global risks. Treasury yields rose in bond markets with the 10-year U.S. Treasury yield reaching 4.51% in the last 3 trading days. The 10-year U.S. Treasury yield is currently at 4.49%. The dollar index fell to 102.1 with a 0.7% decrease. Gold is trading at $3,010 with a 0.9% increase.

The price of a barrel of Brent crude oil stands at $60.3, down 1.8%. Thus, oil continues to be priced at its lowest level in 4 years.

SELLING IN U.S. MARKETS
Yesterday in the New York Stock Exchange, the S&P 500 index fell by 1.57%, the Nasdaq index by 2.15%, and the Dow Jones index by 0.84%. Index futures in the U.S. started the new day with a negative trend.

ASIA GIVES BACK ITS GAINS
After a 1.2% decline, the CSI300 index in China rose by 0.32%. Hong Kong’s Hang Seng index, on the other hand, fell by 3.1%. The MSCI index tracking Asia-Pacific bourses fell by 2%. Japan’s Nikkei index, which rose by 6% yesterday on trade deal expectations, fell by 4.15% today.

MIXED TRENDS IN EUROPE
Yesterday, the DAX 40 in Germany rose by 2.48%, the CAC 40 in France by 2.50%, the FTSE 100 in the UK by 2.71%, and the FTSE MIB 30 in Italy by 2.44%.

European index futures started the new day with mixed trends.