Good morning. Here's what happened overnight and what you need to know today.
1.
Poke the bear: US stocks careened through a manic Monday of volatility as President Donald Trump threatened to raise tariffs further, including an additional 50% on China if it does not withdraw its retaliatory tariffs. The Dow Jones plunged as much as 1,700 points before swinging to a gain of nearly 900, then turned lower again after the White House called a rumour of a 90-day tariff pause “fake news.” The S&P 500 fell more than 20% below its recent record at one point and saw a 7% intraday swing, its biggest since 2020. It was trading 0.48% lower late in the afternoon session. The wild moves followed frenzied markets in Asia and Europe. Hong Kong’s Hang Seng fell 13.2%, its worst since 1997, and the ASX slid 4.2%, its worst trading day since 2020. ASX futures were pointing to a flat start to Tuesday’s trading session. (Capital Brief)(FT)(Bloomberg)(Reuters)
2.
Tariff thunder: President Donald Trump threatened to impose an additional 50% tariff on China unless Beijing withdraws its 34% retaliatory tariff immediately. In a Truth Social post on Monday (Tuesday AEST), Trump said if China doesn’t pull back by 8 April, the 50% levy would come on top of the ‘reciprocal’ 34% duty, with both taking effect Wednesday, 9 April. He called China “the biggest abuser” on trade and blamed past US leaders. He dismissed reports of a tariff pause as “fake news” and claimed falling oil prices were a policy win. Trump also said “all talks with China... will be terminated” and talks with other countries would begin “immediately.” The new tariffs add to a prior 20% duty on China tied to fentanyl trafficking. The threat comes as markets plunge for a third day, with the Dow down as much as 4.4% Monday and the S&P 500 nearing bear territory. Indexes across Asia also suffered heavy losses. (Capital Brief) (Donald Trump)
