Tariffs: stock markets show modest rebound as Europe and Asia strive for recovery

Brussels – After yesterday’s plunge, which saw global financial markets plummet due to US President Donald Trump’s tariffs, signs of recovery are coming from Asian and European stock exchanges, which are showing signs of a rebound.
The first wave of positivity this morning (April 8) was the Tokyo Stock Exchange, which, after its third consecutive daily decline, managed to close higher, with the Nikkei reference index advancing 6.03 percent to 33,012.58 and a gain of 1,876 points. On the foreign exchange front, the yen depreciated against the dollar to 147.50 and against the euro to 161.80, favoring Japanese trade. Japan is carving out a favorable negotiating position with the United States, and the prospect of being able to do the same has electrified Asian markets. Shanghai gained 0.61 percent, Hong Kong was up 0.45 percent, and Seoul’s Kospi was 0.27 percent higher. Still faring very poorly is, besides Indonesia, which opened with a 9 percent slump, China, which sees the yuan weaken as never in the past 19 months (7.3363 to the dollar).

Europe opened higher, albeit modestly: Frankfurt is up 1.17 percent at the start, Paris +1.66 percent, London (+1.25 percent) and Madrid (+0.57 percent) are also doing well. Zurich (+1.67 percent) and Amsterdam (+1.58 percent) are also higher amid market optimism, as Deutsche Bank market strategist Jim Reid pointed out, regarding a possible US-Japan tariff agreement.

Milan was also higher, attempting to rebound after yesterday’s slump (-5.18 percent). The FTSE Mib index in early trade marks +1.64 percent at 33,393.74 points. Iveco, STM, and Leonardo are in the spotlight at +4.62 percent, +4.49 percent, and +3.89 percent, respectively. Banks are also recovering, with Monte dei Paschi di Siena +2.42 percent, UniCredit +2.38 percent, Banca Mediolanum +2.15 percent, and Intesa Sanpaolo +1.29 percent. Gains also for Unipol +4.55 percent, Stellantis +2.25 percent, and Tim +1.74 percent. In energy, Eni +1.46 percent and Saipem +2.62 percent. Bucking the trend were Terna -0.64 percent, Snam -0.63 percent, and Enel -0.34 percent, still in the red.

The global cryptocurrency market also rebounded, with Bitcoin gaining 1 percent to $79,714 after hitting a low yesterday at $77,000.

Wall Street is also expected to recover despite the heated exchange of threats that took place last night between the United States and China: Trump announced that he would impose further tariffs of 50 percent on Made in China products if Beijing does not withdraw its 34 percent counter-tariffs against US goods. A spokesman for China’s Ministry of Commerce said in a note that the country would never accept the “blackmailing nature” of the United States and considers the latest threats “A mistake upon another mistake.” “If Washington wants to continue on this path, then Beijing will fight to the end,” the official concluded.

However, the slight rise in stock markets should not trigger too much enthusiasm. Russ Mould, investment director at AJ Bell, puts his clients on guard: “Markets may remain fragile for days and weeks to come. All it would take is a new sign of aggression from Trump or a trade partner reacting harshly to cause another upheaval. Market recovery can lose momentum quickly if investors lose confidence in remedying the situation that caused the initial jolt.”