Market Turmoil Across Asia

Futures markets have quickly adjusted, anticipating nearly five quarter-point cuts in U.S. rates this year, leading to a sharp decline in Treasury yields and a weakened dollar.

A screen displaying the Hang Seng stock index is seen at Central district, in Hong Kong, China, April 7, 2025. Photo by Reuters

Global Recession Fears Intensify

President Donald Trump's stance on trade with China has exacerbated market fears, with investors hoping for a policy reconsideration amidst significant market losses.

"The size and disruptive impact of U.S. trade policies, if sustained, would be sufficient to tip a still healthy U.S. and global expansion into recession," said Bruce Kasman, head of economics at JPMorgan.

Oil and Gold Markets React

The outlook for global growth has also pressured oil prices, with Brent and U.S. crude experiencing significant drops. Even gold, typically a safe haven, saw a decrease in value.

Investors Brace for Impact

With the earnings season underway, rising costs and tariff impacts are expected to pressure company profit margins, leading to potential revisions in profit margin estimates.