The reciprocal tariffs imposed by US President Donald Trump took effect. The US raised customs duties on China to 104%. In return, China promptly increased tariffs to 84%. The escalating tension in trade supported a negative atmosphere in global markets. Stocks continued to see selling pressure, while gold saw a sharp rise. Meanwhile, oil continued to be priced at its lowest level in four years.

President Trump’s tariff actions heightened the high-risk perception in markets. Tariffs higher than 10%, applying to approximately 60 countries, were implemented. Uncertainties grew about the course of economic tension between the US and China after the US administration’s recent customs duty increase on China. Following Trump’s tariff announcement on April 2nd, the willingness of many countries to negotiate had brought forward an optimistic sentiment supporting a recovery trend in the markets. China’s retaliatory tariffs led to the reemergence of global risks when the news of the US escalating customs duties on China to 104% was disclosed.

The new retaliation from China further escalated the tension. The Chinese Ministry of Finance announced an additional tariff rate of 84% on US goods.

GOLD ROSE, OIL FELL Gold’s ounce price saw an almost 3% increase approaching $3070. In the free market, the gram of gold climbed up to 3823 liras.

The barrel price of Brent oil dropped by nearly 7%, falling below $60. Consequently, oil continued to be priced at its lowest level since September 2021.

EUROPEAN STOCKS DECLINED Following China’s retaliatory decision, sales accelerated in European stock markets. DAX 40 in Germany fell by 3.84%, CAC 40 in France dropped by 3.6%, FTSE 100 in the UK decreased by 3.61%, and FTSE MIB 30 in Italy declined by 3.87%.

BOND YIELDS ROSE While bond markets saw a trend weighted towards sales, the US 10-year bond yield climbed to 4.51% over the past three trading days. The current 10-year bond yield in the US stands at 4.49%. Meanwhile, the dollar index dropped by 0.7% to 102.1.

US STOCKS IN DECLINE Yesterday at the New York Stock Exchange, the S&P 500 index lost 1.57%, the Nasdaq index decreased by 2.15%, and the Dow Jones index saw an 0.84% loss.

In the US, index futures opened the new day with a negative trend. The S&P 500 index is trading with close to a 2% loss on the futures side. ASIA GAVE BACK GAINS After a 1.2% decline, the CSI300 index in China rose by 0.32%. Hong Kong’s Hang Seng index fell by 3.1%. The MSCI index tracking Asia-Pacific markets, excluding Japan, dropped by 2%. Following a 6% increase with trade agreement expectations, Japan’s Nikkei index recorded a 4.15% decline today.