Tariff tensions continue in global markets. The increasing tension between China and the USA has negatively affected market sentiment. While the stock markets remain bearish, gold experienced a sharp rise. Oil hit its lowest level in 4 years. US President Trump stated, “Stay calm, everything will be fine. It’s a great time to buy.”

President Donald Trump’s tariff measures have reinforced the high risk perception in the markets. Tariffs higher than 10% and applying to about 60 countries have been imposed. Uncertainties have increased regarding the course of economic tension between the two countries after the latest tariff move towards China by the US administration. Many countries showing openness to negotiations after the tariffs announced by Trump on April 2 had brought about an optimistic recovery tendency in the markets. Following China’s retaliation, the announcement of the US raising tariffs on Chinese goods to 104% has led to a resurgence in global risks.

The new retaliation from China has escalated tensions to a maximum level. China’s Ministry of Finance announced that the additional tariff rate to be applied to US goods is 84%.

TRUMP’S CALL TO BUY: President Trump stated, “Stay calm, everything will fall into place. The US will be bigger and better than ever.” Trump, sharing on his Truth Social account, said it’s a great time to buy.

US STOCK MARKET TURMOIL: Indexes in the New York Stock Exchange started the day with a decline. At the opening, the S&P 500 index fell by 0.35%, the Nasdaq index by 0.45%, and the Dow Jones index by 0.59%.

After the opening, purchases accelerated in the indexes, and they turned green. The S&P 500 index gained 0.81%, the Nasdaq index 1.62%, and the Dow Jones index 0.28%.

GOLD ROSE, OIL FELL: The price of an ounce of gold saw nearly a 3% increase, reaching $3,070. In the free market, the gram of gold rose to 3,823 Turkish lira.

The barrel price of Brent crude oil declined by nearly 7%, dropping below $60. Thus, oil continued to be priced at its lowest level since September 2021.

EUROPEAN STOCK MARKETS TUMBLED: Sales accelerated in European stock exchanges following China’s retaliation decision. In Germany, the DAX 40 fell by 3.84%, in France, the CAC 40 index declined by 3.6%, in the UK, the FTSE 100 index dropped by 3.61%, and in Italy, the FTSE MIB 30 index retreated by 3.87%.

BOND YIELDS ROSE: While bond markets showed a selling-oriented movement, the US 10-year bond yield continued its rise for the past 3 trading days, reaching 4.51%. The US 10-year bond yield is currently at 4.49%. The dollar index fell by 0.7% to 102.1.

ASIA REVERSED GAINS: After a 1.2% decline, the CSI300 index in China later rose by 0.32%. Hong Kong’s Hang Seng index fell by 3.1%. The MSCI index tracking Asia-Pacific markets, excluding Japan, decreased by 2%. Japan’s Nikkei index, after a 6% rise yesterday due to trade deal expectations, saw a 4.15% decline today.