2025-04-10 07:00

EU pauses retaliatory countermeasures, providing some relief U.S. stocks resume downturn after one-day reprieve; S&P 500 ends down 3.5% Beijing may again respond and increase 84% tariffs on U.S. WASHINGTON/BRUSSELS/BEIJING, April 10 (Reuters) - President Donald Trump's trade war rattled global markets anew on Thursday as stocks and oil prices sank amid fears China may once again respond in kind with higher tariffs to match the latest levies imposed by the United States. Battered global markets and anxious global leaders welcomed Wednesday's reprieve when Trump suddenly decided to freeze most of his hefty new duties for 90 days. Sign up here. U.S. Treasury Secretary Scott Bessent tried to further assuage skeptics by telling a meeting of Trump's cabinet that more than 75 countries wanted to put in place a process for trade negotiations, and Trump himself expressed hope of a trade deal with China. But the uncertainty in the meantime extended some of the most volatile trading since the early days of the COVID-19 pandemic. The S&P 500 index (.SPX) , opens new tab ended 3.5% lower on Thursday, while the Nasdaq (.IXIC) , opens new tab dropped 4.3% and the Dow Jones Industrial Average (.DJI) , opens new tab was down 2.5%. Oil prices fell more than 3%. The S&P 500 is down about 15% from its peak, and analysts believe stocks are in danger of falling into a bear market due to the uncertainty surrounding tariff policy. "This has gone from a disorderly selloff to hopefully back to more of an orderly selloff because recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at Janus Henderson in Denver. Bessent predicted that striking deals with other countries would bring more certainty to trade policy over the next 90 days, once "we go through the queue and settle with these countries" which he said would present more favorable terms. "I don't see anything unusual," he said of the day's market activity. The U.S. and Vietnam agreed to begin formal trade talks after Bessent spoke with Vietnamese Deputy Prime Minister Ho Duc Phoc, the White House said. Trump told reporters at the White House he thought the United States could make a deal with China, but he reiterated his argument that Beijing had "really taken advantage" of the U.S. for a long time. "I'm sure that we'll be able to get along very well," Trump said, adding that he respected Chinese President Xi Jinping. "In a true sense he's been a friend of mine for a long period of time, and I think that we'll end up working out something that's very good for both countries." While announcing a 90-day tariff pause on dozens of countries, Trump ratcheted up tariffs on Chinese imports, raising them effectively to 145% when levies imposed earlier this year are taken into account. China has been raising its tariffs on the U.S. with each Trump increase, raising fears that Beijing may jack up tariffs above the current 84%. China rejected what it called threats and blackmail from Washington and pledged to follow through to the end if the U.S. persists, Commerce Ministry spokesperson He Yongqian told a regular press briefing. China's door was open to dialogue, but this must be based on mutual respect, the ministry said. With trade hostilities persisting among the top three U.S. trade partners, Goldman Sachs estimates the probability of a recession at 45%. The U.S. tariff pause does not apply to duties paid by Canada and Mexico, whose goods are still subject to 25% fentanyl-related tariffs unless they comply with the U.S.-Mexico-Canada trade agreement's rules of origin. The rollback on the other tariffs did little to lower the overall average import duty rate, according to Yale University researchers. The average effective tariff rate is the highest in more than a century, the Yale Budget Lab wrote on Thursday. One reprieve in the global trade wars came when the European Union said it would pause its first counter-tariffs, and more than a dozen countries have made offers to reach a trade deal, according to White House economic adviser Kevin Hassett. "We want to give negotiations a chance," European Commission President Ursula von der Leyen said on X, while also warning that counter-tariffs could be reinstated if negotiations "are not satisfactory." The EU had been due to launch counter-tariffs on about 21 billion euros ($23.25 billion) of U.S. imports next Tuesday in response to Trump's 25% tariffs on steel and aluminium. It is still assessing how to respond to U.S. car tariffs and the broader 10% levies that remain in place. Some central bankers also remained cautious. European Central Bank policymaker Francois Villeroy de Galhau told France Inter radio it was "less bad news" than before, but that ongoing uncertainty remained a threat to trust and growth. Trump has claimed the U.S. was now collecting $2 billion a day from his tariffs. But that appeared to be an overstatement given that the Treasury on Thursday reported that gross customs duties in March totaled $8.75 billion, up by about $2 billion from a year earlier and the highest since September 2022. The increase is partly due to Trump's tariff increases since February, a Treasury official said. https://www.reuters.com/world/trump-u-turns-tariffs-turns-trade-war-heat-china-2025-04-10/

2025-04-10 06:49

Dollar hits lowest against Swiss franc since January 2015 Data shows US inflation cooling in March Trump paused reciprocal duties on most nations for 90 days US trade war with China intensifies Euro makes biggest one-day jump since 2022 NEW YORK/LONDON, April 10 (Reuters) - The U.S. dollar fell against its major peers on Thursday, hitting a 10-year low against the safe-haven Swiss franc, as markets digested President Donald Trump's dramatic reversal on tariffs. Trump stunned financial markets on Wednesday by walking back steep duties on trading partners that had gone into effect less than 24 hours earlier. Trump granted a 90-day freeze on so-called "Liberation Day" tariffs but maintained a 10% blanket duty on most countries. Sign up here. Tariffs on Chinese imports, however, were raised to 125% with immediate effect after China retaliated against previous U.S. duties with an 84% tariff rate. Total U.S. duties on Chinese imports are now 145% in addition to the new tariffs, according to the White House. The U.S. dollar rebounded against the safe-haven Swiss franc and Japanese yen on Wednesday, while Wall Street's main stock indexes leaped as the tariff reprieve brought some relief to investors. But traders were readjusting their positions on Thursday, with the dollar dropping 2% to 144.795 yen and 3.6% versus the Swiss franc to 0.82635 . The benchmark S&P 500 (.SPX) , opens new tab, Dow (.DJI) , opens new tab and Nasdaq (.IXIC) , opens new tab share indexes fell sharply. The dollar has fallen 3.46% against the yen and nearly 6.5% against the Swiss franc so far this month. It is on track for the biggest one-day loss against the franc since January 2015. "Up until yesterday's 90-day reprieve, there was a pretty large dislocation in the market, across all markets in fact, and full adjusting to the tariff regime. But now that there's a pause, every adjustment is basically being re-readjusted," said Eugene Epstein, head of structuring for North America at Moneycorp in New Jersey. Labor Department data on Thursday showed that U.S. consumer prices unexpectedly fell in March although the improvement in inflation is unlikely to be sustained in the wake of tariffs. A drop in U.S. Treasury yields after a solid 10-year note auction was also partly weighing on the greenback. The yield on benchmark U.S. 10-year notes fell 2 basis points to 4.376%. European Commission chief Ursula von der Leyen said on Thursday the EU will pause its first countermeasures against U.S. tariffs after Trump's pause. The euro was up nearly 2.47% at $1.1221 after hitting its highest since July 2023 and making its biggest one-day jump since 2022. The pound was up 1.13% at $1.29720. Risk sensitive currencies were also firmer. The Australian dollar strengthened 1.24% to $0.62280, while the Swedish crown rose 1.5% versus the dollar to 9.839 crowns. China's central bank cut guidance for the official yuan rate for a sixth successive trading session on Thursday, signaling an intention to allow a very gradual depreciation. Investors are waiting to see whether Chinese authorities use currency depreciation as part of the trade war. The dollar weakened 0.49% to 7.307 yuan versus the offshore Chinese yuan but remained above Tuesday's record low of 7.4288 yuan. "Seeing the world as a zero-sum game is not very helpful. I don't see this as a zero sum but that's what the (Trump) administration is pushing," said Marc Chandler, chief market strategist at Bannockburn Global Forex LLC. "The market requires a higher U.S. interest rate premium to stay long dollar." https://www.reuters.com/markets/currencies/safe-havens-rebound-sino-us-trade-war-anxiety-overshadows-tariff-u-turn-2025-04-10/

2025-04-10 06:47

Anglo says no signs of damage at the Moranbah North mine The mine is among assets being sold to Peabody Energy Peabody in contact with Anglo over impact of fire JOHANNESBURG, April 10 (Reuters) - The situation at Anglo American's (AAL.L) , opens new tab Moranbah North coal mine in Australia is stable and there is no evidence of damage after an underground fire, the company said on Thursday. Moranbah is one of several steelmaking coal assets that Anglo is selling to Peabody Energy (BTU.N) , opens new tab in a $3.78 billion deal that is expected to close mid-year. Sign up here. Anglo said the fire was started by a "minor ignition" on March 31 and it was making progress towards the temporary suspension of mining operations. "Conditions in the mine normalised shortly afterwards and they remain stable, with data and camera footage showing no evidence of damage," it said in a statement. U.S.-based Peabody said on Tuesday it was "reviewing all options" regarding the acquisition of the steelmaking coal assets and had contacted Anglo to better understand the impact of the fire. Peabody agreed to an upfront payment of about $2 billion at completion of the deal with Anglo, a $725 million deferred cash payment and another potential $550 million. The deal also includes a contingent cash consideration of $450 million linked to the reopening of the Grosvenor mine, which suffered a fire in June, before the agreement was reached. The Moranbah and Grosvenor mines are adjacent to each other. If the Moranbah incident qualifies as a material adverse change in the agreement, Peabody "could walk away or the two parties could revise the terms of the transactions," Jefferies analysts said in a note on Wednesday. Anglo said it was working with Peabody to satisfy the remaining conditions to complete the assets sale. Anglo is selling the assets as part of a business revamp after it fought off a $49 billion takeover from bigger rival BHP Group (BHP.AX) , opens new tab last year. It is also selling its nickel business in Brazil, spinning off Anglo Platinum (AMSJ.J) , opens new tab and weighing options for its diamonds business. https://www.reuters.com/world/africa/anglos-australian-coal-mine-stable-after-underground-fire-2025-04-10/

2025-04-10 06:35

Oil drops, reversing some gains from volatile prior session Trump announces 90-day freeze for dozens of countries But duties raised to 125% on Chinese imports Analysts warn of risks to oil demand on trade war escalation April 10 (Reuters) - Oil prices retreated by more than 2% on Thursday as fears of a deepening U.S.-China trade war and a possible recession eclipsed earlier relief created by President Donald Trump's announcement of a 90-day pause on some tariffs against most countries. Brent futures fell $1.77, or 2.7%, to $63.71 a barrel by 1213 GMT. While U.S. West Texas Intermediate crude futures dropped $1.77, or 2.84%, to $60.58. Sign up here. The retreat followed a volatile session on Wednesday, when crude benchmarks, which had tumbled as much as 7% earlier in the day, ended around 4% higher following Trump's announcement of a pause on reciprocal tariffs on most countries, though he maintained a baseline tariff rate of 10%. However, the reprieve excluded China. Trump increased tariffs on Chinese imports to 125% from 104%, deepening a trade standoff with the world's second-largest economy and a leading consumer of crude. The trade war between the U.S. and China leaves significant uncertainty over oil demand growth with more risk to downside for prices, said Ashley Kelty, analyst at Panmure Liberum. "Volatility remains high, and it remains tricky to see where oil prices may settle in near-term," said Kelty. China also announced an additional import levy on U.S. goods, imposing an 84% tariff from Thursday. Despite the tariff pause, Ole Hansen, head of commodity strategy at Saxo Bank, said the world was still facing the most severe trade barriers since the 1930s. "With a lot of uncertainty still existing, the prospect for a major rebound in crude is not possible at this stage when the market has to deal with the risk of weakening demand and rising production from OPEC," said Hansen. Analysts at ANZ Research warned that a deeper global slowdown could push prices lower still. "In a worst-case scenario of a global recession (which is not our base case), there is scope for further weakness... for oil, we view $50/bbl as a likely support level," the analysts said in a note. Investors were eyeing mixed supply drivers as well. The Keystone oil pipeline from Canada to the United States remained shut on Wednesday following an oil spill near Fort Ransom, North Dakota, while plans to return it to service were being evaluated, its operator South Bow (SOBO.TO) , opens new tab said. Elsewhere, the Caspian Pipeline Consortium resumed loading oil at one of two previously shut Black Sea moorings, it said on Wednesday, after a court lifted restrictions put on the Western-backed group's facility by a Russian regulator. In the United States, crude inventories rose by 2.6 million barrels in the week to April 4, the Energy Information Administration said, nearly double the expectations in a Reuters poll for a 1.4-million-barrel rise. https://www.reuters.com/business/energy/oil-prices-fall-trump-escalates-trade-war-with-china-2025-04-10/

2025-04-10 06:33

WARSAW, April 10 (Reuters) - The suspension of U.S. tariffs is good news and shows the U.S. administration's will to deescalate this trade conflict, Polish Finance Minister Andrzej Domanski said on Thursday. In a stunning reversal, U.S. President Donald Trump said he would temporarily lower the hefty duties he had imposed on dozens of countries, while further ramping up pressure on China, sending global stocks rocketing higher. Sign up here. "This is positive information. It indicates a desire for some de-escalation on the part of the American administration of this trade conflict," Domanski told private broadcaster Polsat News. "90 days is, I think, enough time to discuss the next steps with a cool head and in a thoughtful manner ... I think we will see a positive reaction on the Polish stock exchange as well." Polish Prime Minister Donald Tusk said last week that the introduction of new tariffs by the United States might reduce the growth rate of the Polish economy by 0.4%. https://www.reuters.com/world/europe/us-tariff-suspension-is-good-news-polish-finance-minister-says-2025-04-10/

2025-04-10 06:27

HONG KONG, April 10 (Reuters) - U.S. investment bank Goldman Sachs lowered its forecasts for China's GDP growth to 4% in 2025 and 3.5% in 2026 in a report published on Thursday, from 4.5% and 4.0% previously, citing the effects of tariffs. Goldman Sachs made the revision for the world's No. 2 economy and second biggest provider of U.S. imports after U.S. President Donald Trump hiked the tariff on Chinese imports to 125% from the 104% level that kicked in on Wednesday. Sign up here. Although additional tariff increases are likely to have a "diminishing marginal impact", the substantial rise in US tariffs on China is expected to significantly weigh on the Chinese economy and labor market, Goldman said. "We anticipate the Chinese government will further intensify policy easing, projecting 60bp of policy rate cuts (vs. 40bp previously)." However, the report added that "even these significant easing measures are unlikely to fully offset the negative effects of the tariffs." Fitch, on April 3, cut China's long-term foreign currency rating by one notch to "A" from "A+", one year after it downgraded its outlook on China's credit rating. https://www.reuters.com/world/china/goldman-sachs-revises-down-china-gdp-growth-forecasts-cites-tariff-effects-2025-04-10/