Morning,
On second thoughts, that should probably just say “Morning”—there’s not much “good” to report.
Post-Friday’s holiday, the Hang Seng is currently down 11%, marking its biggest intraday drop since 2008, following Beijing’s announcement of 34% tariffs on all imports from the US. Over the weekend, from Bill Ackman to Stanley Druckenmiller, investors have condemned Trump’s decision to launch expansive global tariffs in an attempt to reshape global trade in Washington’s favour. The fact that Trump’s tariffs are set to expand further on April 9th means we are firmly in risk-off mode, and there’s little in the way of positive news—unless, of course, you’re long volatility.
Looking ahead to the rest of the week, Thursday brings the US CPI report. As tariffs ripple through supply chains, this release could shift expectations around a potential Fed rate cut in May—though stickier inflation, driven by protectionist policy, may complicate the central bank’s decision-making. Mr. Powell is in a real conundrum: cut rates and risk fueling an inflationary boom, or hold rates steady and risk stagnation.
The unofficial earnings season begins Friday, with reports due from BlackRock Inc., JPMorgan Chase & Co., Morgan Stanley, and Wells Fargo.
Market-wise:
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Bitcoin fell 2.3% to $76,964.73
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Ether fell 1.4% to $1,551.44
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The 10-year Treasury yield declined seven basis points to 3.93%
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West Texas Intermediate crude fell 2.4% to $60.49 a barrel
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Spot gold fell 0.3% to $3,027.95 an ounce
We wish you a positive week—batten down the hatches and buy tinned food!
