Global markets see 2nd wave of tariff confrontation

ISTANBUL

In global markets, uncertainties about the course of economic tensions between Beijing and Washington have increased following the US administration's latest tariff move against China, while the news flow regarding the tariffs and the Fed meeting minutes to be announced on Wednesday are in the focus of investors.

The tariff steps taken by US President Donald Trump as part of his “America First” policy continue to increase the high-risk perception in the markets.

After Trump announced tariffs on April 2, many countries showed an open attitude toward negotiations, which brought along optimism supporting the recovery trend in the markets.

After China's tariff retaliation, the announcement that the US tariffs on China would be raised to 104% caused global risks to rise again.

Growing concerns about a slowdown in the US economy due to the possible effects of the tariffs make uncertainties about the future policies of the Fed, which is trying to balance between inflation and recession, even more evident.

White House spokesperson Karoline Leavitt said nearly 70 countries have reached out to Trump to start negotiations since the announcement of the reciprocal tariffs, noting that the tariffs against China, which totaled 104%, are becoming effective on Wednesday.

The statement was made after China announced that it would take “decisive countermeasures” against Trump's threat to impose an additional 50% tariff.

However, in his speech at the ceremony where he signed the energy decrees on Tuesday, Trump said that thanks to the tariffs, the US earns $2 billion a day.

Analysts pointed out that the uncertainties regarding the course of the ongoing tariff tensions between the US and China, the world's two largest economies, have deepened and said the rising risk perceptions in many areas could make it difficult for investors to make decisions at this time.

Analysts also said the probability of the Fed's interest rate cut in May is at 55%.

US 10-year bond yield continued to rise

After these developments, a sales-weighted course came to the fore in bond markets, while the US 10-year bond yield reached 4.51%, carrying its rise to the last three days.

The US 10-year bond yield is currently at 4.49%. The dollar index fell 0.7% to 102.1.

While the ounce price of gold is sold at $3,010 with an increase of 0.9%, the barrel price of Brent oil is at $60.3 with a 1.8% decrease.

On the New York Stock Exchange on Tuesday, the S&P 500 index lost 1.57%, the Nasdaq index 2.15% and the Dow Jones index 0.84%.

US index futures started Wednesday with a negative trend.

While European stock markets followed a positive course on Tuesday with optimism amid hopes of negotiations on tariffs, the main agenda across the region continues to be tariffs.

EU Commission President Ursula von der Leyen called for a negotiated solution to the problems caused by the new tariffs announced by Trump in a phone call with Chinese Premier Li Chiang.