- Proposed U.S. shipping rules could disrupt trade and ports, industry warns – From April 17
- Chinese stocks higher as state support lifts sentiment
- Deutsche Bank is now forecasting a 50bp RBA rate cut in May
- Global turmoil raises chances of larger RBNZ rate cut – meeting tomorrow
- Australia business confidence (March 2025) -3.0 (prior -1.0)
- More – China’s Huijin vows to act as market stabiliser, boost long-term share buying
- PBOC sets USD/ CNY reference rate for today at 7.2038 (vs. estimate at 7.3321)
- China commerce ministry: China will never accept the “blackmail nature” of the US
- PBoC says it will provide lending support to China state fund Huijin if needed
- Recap – Chinese state firms pledge support for markets amid tariff-driven selloff
- China will Increase the proportion of insurance funds invested in the stock market
- Australia: Westpac/Melbourne Institute Consumer Sentiment Index(April) -6% m/m (prior +4%)
- Japan’s Nikkei rockets higher, up 6%
- Trump will undergo his annual physical exam on Friday, April 11
- Japan to tap Economy Minister Akazawa for U.S. trade talks: FNN
- US energy Sec Wright heads to Middle East for a 2 week visit
- China state investment Chengtong says will increase holdings safeguard market stability
- Fed’s Goolsbee on ‘almost unprecedented situation’ – anxiety – warns of high inflation
- Moody’s: Tariff shock sends global business sentiment into crisis territory
- US Chamber of Commerce weighing a lawsuit to block new Trump global tariffs
- U.S. 10-year Treasury futures fall another 10 ticks in wake of sharp reversal
- ICYMI – “Global bank chiefs hold talks over Trump tariffs crisis”
- New Zealand NZIER Business Confidence (Q1 2025) 19% (vs. prior 16%)
- Iran and the US are planning to meet in Oman on Saturday
- Bessent says expects no trade deals by April 9, tariffs to hit then
- BoA slashes target – warns Trump tariffs could shave 10% off 2025 S&P 500 earnings
- Forexlive Americas FX news wrap: A fake headline takes the market for a ride
- Bessent says Japan’s non-tariff trade barriers are quite high
- Gundlach says “no way” tariffs delay is going to happen, Trump will keep this going
- Trade ideas thread – Tuesday, 8 April, insightful charts, technical analysis, ideas
Markets across Asia remained on edge Tuesday as escalating U.S.-China trade tensions triggered moves in currencies and weighed on investor confidence.
China vowed to “resolutely take countermeasures” after U.S. President Donald Trump threatened to impose an additional 50% tariff on Chinese goods. Beijing warned it would “fight until the end” if Washington presses ahead, further intensifying fears of a global trade war.
In response to market instability, China’s state-owned investment arms, including Central Huijin, announced increased equity purchases to help shore up confidence. The People’s Bank of China (PBoC) pledged lending support to Huijin if needed, reinforcing its role as a market “stabiliser.”
Meanwhile, China’s yuan slid to its lowest level since 2023, with the offshore yuan touching a two-month low. The PBoC has allowed a near-linear depreciation in the onshore yuan, CNY, in recent days, breaking the symbolic 7.2 level—long seen as a line in the sand—signaling a policy shift and sending a message to Washington.
In the U.S., Federal Reserve official Chicago Fed President Austan Goolsbee expressed growing concern that escalating tariffs could reignite inflation and disrupt supply chains, echoing conditions last seen during the 2021–22 inflation surge. While hard economic data remains resilient, Goolsbee said rising uncertainty is clouding the outlook.
In Australia, the tariff shock has started to bite into the data. The Westpac-Melbourne Institute consumer sentiment index fell 6% in April, its sharpest drop in nearly two years, retreating from a three-year high. Households cited growing concern over the economic outlook and personal finances.
Business conditions remained largely steady in March, according to NAB, although the survey was conducted before the latest tariff developments. Deutsche Bank now expects the Reserve Bank of Australia to deliver a 50 basis point rate cut in May, up from its earlier forecast of 25 bps, in anticipation of mounting economic headwinds.
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EUR/USD has been a more, bouncing from late US time lows circa 1.0900 to highs around 1.0980. GBP, AUD, NZD and CAD have all also shown some strength, USD/JPY yen backed off from 148.00 to be under 147.40 as I post.
