Global Markets Stir Amid Trump's New Tariff Announcement

Global markets experienced turbulence as President Trump's latest tariff announcement hinted at levies covering all countries. This spurred declines in Asian stocks, particularly the Nikkei, and influenced European and U.S. futures. Investors are eyeing potential central bank easing amidst concerns of a U.S. recession and inflation impacts.

Global markets have reacted turbulently to President Trump's announcement that U.S. tariffs will extend to all countries, not just select few. His comments, made aboard Air Force One, led to a 3.8% drop in the Nikkei, marking its largest daily fall in six months.

This uncertainty also saw Nasdaq futures fall by 1.3% with European stock futures following suit. Analysts, convinced of Trump's commitment, see reciprocal tariffs averaging 15% and have increased the projected risk of a U.S. recession to 35%.

In response, markets anticipate central bank rate cuts, with 75 basis points from the Fed, 60 from the ECB, and 50 from the Bank of England. Meanwhile, bond investors found solace in lower Treasury yields and a weaker U.S. dollar.

(With inputs from agencies.)