Global Financial Market Update – April 8, 2025
Global stock markets fluctuated sharply. U.S. indices plunged as new tariffs on China escalate tensions, while Bitcoin and Nikkei posted strong gains.
United States Market: Stocks Plunge Amid Tariff Shock
Equities
U.S. stock markets closed sharply lower on April 8, 2025.
- S&P 500 dropped 1.6%, hitting its lowest level in nearly a year.
- Dow Jones declined 0.8%, shedding 320 points.
- Nasdaq Composite fell 2.2%.
The sharp losses followed the U.S. administration’s confirmation of a 104% tariff on Chinese imports, effective at midnight. This move intensified trade tensions, fueling widespread investor anxiety.
U.S. Treasury Yields Jump as Hedge Funds Unwind Positions
Fixed Income
U.S. Treasuries came under pressure as yields surged:
- The 10-year Treasury yield jumped by 0.17 percentage points to around 4.16%.
- Further increases were noted on Tuesday.
Analysts cite profit-taking and forced liquidations, especially by hedge funds involved in basis trade strategies, as key drivers of the move.
European Markets Rebound After Four-Day Decline
Equities
European equities recovered:
- The STOXX 600 gained 1.1%.
- Germany’s DAX also rose 1.1%.
However, the STOXX 600 remains 17.9% below its March 3 peak, reflecting lingering fears of a global recession amid the ongoing U.S.–China trade conflict.
FTSE 100 Posts Strongest Rally Since March 2022
United Kingdom Equities
The FTSE 100 surged 2.7%, recording its best session since March 2022.
Optimism over potential tariff negotiations with the U.S. drove the rally.
Sector leaders included:
- Rolls-Royce: +6.8%
- BAE Systems: +4.6%
Asia Markets: Nikkei Soars, Chinese Yuan Under Pressure
Japan Equities
The Nikkei 225 jumped 6%, closing at 33,012.58 – its biggest daily gain since August 6.
Gains were driven by positive sentiment from Wall Street recovery signals.
China Equities & Currency
Chinese stocks struggled amid intensifying trade war pressures.
The onshore yuan hovered near its lowest level since 2007, reflecting mounting investor concerns.
Emerging Markets Struggle as Trade Tensions Deepen
Emerging economies continued to face pressure from global trade instability.
The depreciating yuan signals deeper challenges for trade-reliant nations.
Commodities: Oil Crashes, Gold Volatile Amid Yield Surge
Oil
Oil prices plunged to a four-year low, driven by:
- Global recession fears
- Weakening demand expectations
Gold
Gold prices were volatile:
- Initial gains from safe-haven demand
- Reversed as U.S. bond yields surged
- Spot gold fell 2.4% to $2,963.19/oz, after touching a four-week low.
Cryptocurrencies: Bitcoin Nears $80K in Massive Rebound
Crypto Market
Cryptocurrencies bounced back sharply:
- Bitcoin approached $80,000, fueled by improved risk sentiment across financial markets.
Key Headlines – April 8, 2025
- U.S. confirms 104% tariffs on Chinese imports, heightening trade conflict
- European stocks recover after four consecutive losing sessions
- Oil hits a 4-year low amid recession-led demand fears
- Bitcoin surges, approaching all-time highs near $80,000
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