US stocks gave back some of Wednesday's historic gains as tariff uncertainty lingered - Newsquawk Asia-Pac Market Open

• US stocks pared some of Wednesday's historic gains after President Trump's tariff "pause" ex-China, with the major indices heavily sold (SPX -3.5%, NDX -4.2%, DJI -2.5%, RUT -4.3%) and the NDX even flirted with the 7% losses circuit breaker at one point. The move away from US assets was notable as the Dollar was heavily sold, to the benefit of all G10 FX peers, while the long-end of the Treasury curve saw further selling despite a strong US 30yr auction and with the risk-off mood further exacerbated after reports that the White House clarified that US tariffs on China now totalled 145% (not 125%) after the latest hike.
• USD suffered heavy losses as safe havens surged, in particular, CHF which gained around 4% against the dollar amid uncertainty following President Trump's recent tariff flip-flopping and with the losses in the greenback exacerbated after softer-than-expected CPI data.
• Looking ahead, highlights include Japanese Money Supply & Malaysian Industrial Production, Supply from Australia.

More Newsquawk in 2 steps:

1. Subscribe to the free premarket movers reports

2. Trial Newsquawk’s premium real-time audio news squawk box for 7 days

LOOKING AHEAD

• Highlights include Japanese Money Supply & Malaysian Industrial Production, Supply from Australia.
• Click for the Newsquawk Week Ahead.

US TRADE

• US stocks pared some of Wednesday's historic gains after President Trump's tariff "pause" ex-China, with the major indices heavily sold (SPX -3.5%, NDX -4.2%, DJI -2.5%, RUT -4.3%) and the NDX even flirted with the 7% losses circuit breaker at one point. The move away from US assets was notable as the Dollar was heavily sold, to the benefit of all G10 FX peers, while the long-end of the Treasury curve saw further selling despite a strong US 30yr auction and with the risk-off mood further exacerbated after reports that the White House clarified that US tariffs on China now totalled 145% (not 125%) after the latest hike.
• SPX -3.46% at 5,268, NDX -4.19% at 18,344, DJI -2.50% at 39,594, RUT -4.27% at 1,831.
• Click here for a detailed summary.

TARIFFS/TRADE

• US President Trump said plenty are working to make a deal and he thinks it's going to work very well, while he added there have been transition problems, but in the end, it will be an incredible thing. Trump also said they may buy ships from other countries and reiterated he would love to get a deal with China and think they will end up working out something good for both countries. Furthermore, he said the first deal on tariffs is very close and they will go back to where they were if they can't make a deal, while he is looking at EU as one block on tariffs and is not looking to hurt Mexico.
• White House Economic Adviser Hassett said there is a big inventory of deals that are right close to the finish line, according to a CNBC interview. Hassett also said two trade deals almost closed as of last week and the bond market may have contributed to the tariff decision but it did not cause a panic move.
• White House told CNBC that US tariffs on China now total 145% after the latest hike, while CNN also reported the White House clarified on Thursday that the 125% "reciprocal" tariff Trump announced on Wednesday comes on top of the 20% tariff that had already been in place".
• Trump Administration is moving toward a possible delisting of Chinese public Co shares on US exchanges with incoming SEC chair Paul Atkins likely to take up the delisting issue when he officially takes office, according to FBN's Gasparino citing sources.
• EU Trade Commissioner Sefcovic posted on X "Another call with Secretary Lutnick and Ambassador Greer, as we're set to suspend EU countermeasures and enter meaningful negotiations. Constant communication and daily updates keep us moving forward".
• European Commission said it will closely consult with member states and industry before deciding on the next steps and will take the necessary time to assess the latest developments regarding the Trump tariff situation.
• EU Commission said what they are saying to the US is that they are ready to make a deal and urged for a conversation.
• EU Commission President Von De Leyen said could tax big tech if Trump trade talks fail, while she added the EU would seek a "completely balanced" agreement with the US during Trump's 90-day pause in applying additional tariffs and there is a wide range of countermeasures in case the negotiations are not satisfactory, according to FT.
• EU agreed on a 90-day pause in countermeasures due on April 15th against the US but said if negotiations are not satisfactory then EU countermeasures will kick in, while it noted preparatory work for further countermeasures continue and all options remain on the table.
• EU and China began negotiations to abolish EU tariffs on Chinese EVs, according to Handelsblatt.
• China's MOFCOM said the challenges facing foreign trade have significantly increased and the resilience of foreign trade has not diminished, while it added that the door is open, but pressure threats and blackmail are not the correct approach.
• China's Foreign Ministry said taking further measures to oppose US moves is not only aimed at protecting own sovereignty, security and development interests but is also for safeguarding international fairness and justice, while it added China does not want to fight, "but will not fear when they come our way".
• China will moderately lower the number of US films imported to China, according to CCTV.
• UK PM Starmer spoke to Japanese PM Ishiba and agreed on the importance of like-minded partners to work closely together to lower trade barriers.

NOTABLE HEADLINES

• Fed's Bowman (voter) said the economy is strong and growth is solid, but slowing, while she noted inflation came down as the CPI report shows and she is watching to see how evolving policies affect the economy.
• Fed's Goolsbee (2025 voter) said the Fed timetable is not the market timetable and the Fed's goal is to find through line and not jump to conclusions, while he added there's an argument short run tariffs would not alter the economy's path. Goolsbee said now is the time for the Fed to wait and forecast on interest rates and the Fed should keep all policy actions on the table. Furthermore, he stated that tariffs are higher than most scenarios even with President Trump's pause.
• Fed's Schmid (2025 Voter) said tariff announcements have elevated economic uncertainty and coincided with falling sentiment and a lift in short-term inflation expectations. Schmid also stated that disruptions in the Treasury market were "instructive" and the Fed is watching markets to ensure liquidity keeps flowing. Schmid said it looks as if the market is adjusting well, given the volatility in recent weeks and the data is not yet fully reflecting the impact of the administration's actions, while he added the Fed still has work to do on inflation.
• Fed's Logan (2026 voter) said it is important to keep any tariff-related price increases from fostering more persistent inflation and if higher inflation expectations get entrenched, the road to price stability is longer and economic scars are deeper.
• US House passed the budget plan providing for the extension of Trump tax cuts.

DATA RECAP

• US CPI YY, NSA (Mar) 2.4% vs. Exp. 2.6% (Prev. 2.8%)
• US Core CPI YY, NSA (Mar) 2.8% vs. Exp. 3.0% (Prev. 3.1%)
• US Cleveland Fed CPI (Mar) 0.3% (Prev. 0.3%)
• US Initial Jobless Claims 223.0k vs. Exp. 223.0k (Prev. 219.0k)
• US Continued Jobless Claims 1.85M vs. Exp. 1.882M (Prev. 1.903M, Rev. 1.893M)

FX

• USD suffered heavy losses as safe havens surged, in particular, CHF which gained around 4% against the dollar amid uncertainty following President Trump's recent tariff flip-flopping and with the losses in the greenback exacerbated following softer-than-expected CPI data.
• EUR rallied on the back of the slump in the dollar which helped the single currency return to above the 1.1200 level, while it was reported that the EU agreed on a 90-day pause in countermeasures due on April 15th against the US but said if negotiations are not satisfactory then EU countermeasures will kick in.
• GBP steadily advanced and briefly approached just shy of the 1.3000 handle where it met some resistance amid light UK-specific catalysts, although participants now look ahead to a slew of economic data from the UK including monthly GDP and Industrial Production.
• JPY strengthened in which USD/JPY tested the 144.00 level to the downside amid haven flows and the dollar's demise.
• Banxico Minutes stated all board members said the Mexican economy has continued decelerating and the Governing Board deemed that the disinflation process remains well on track.

FIXED INCOME

• T-notes gained and the curve steepened as stocks pared historic gains and with President Trump's China tariffs clarified at 145%, while there was also a strong 30yr bond auction and the House passed the tax cut bill.

COMMODITIES

• Oil prices declined in tandem with the risk environment and gave back some of the hefty gains seen after Trump's 90-day pause announcement.
• EIA STEO sees 2025 world oil demand at 103.6mln BPD (prev. 104.1mln BPD) and 2026demand at 104.7mln BPD (prev. 105.3mln BPD).
• Russia's Novak met the Kazakh Energy Minister and discussed OPEC+ cooperation and increasing Russian oil and gas transit via Kazakhstan.

GEOPOLITICAL

MIDDLE EAST

• Israeli security source told Sky News Arabia that so far, the army has not been instructed to act directly against the Turkish presence in Syria, according to Sky News Arabia. An Israeli security source also said that they will withdraw from Lebanon when they do not see any military force in it other than the power of the state, according to Sky News Arabia.
• Hezbollah said they are ready to enter talks with the Lebanese government on the defence strategy, according to Sky News Arabia.
• Adviser to Iran’s Supreme Leader Khamenei said "continued threats" against Tehran could lead to the expulsion of IAEA inspectors and transfer of enriched material to unknown locations, according to journalist Elster.

RUSSIA-UKRAINE

• Russia's Kremlin dismissed Ukraine's claims that China is being drawn into the conflict and said China is a partner, friend and comrade, while it added that China has a balanced position on the Ukraine crisis.
• US and Russia undertook a prisoner swap early Thursday in Abu Dhabi, while the swap was reportedly organised by the CIA Director and a senior Russian official.
• Russian ambassador to the US said Russia and the US will work on the initiatives put forward in Istanbul for the new round of consultations.

OTHER

• US President Trump is considering visiting Turkey as part of his Middle East trip next month after making stops in Saudi Arabia, Qatar and UAE, according to CNN citing sources who added no final decision has been made.
• White House is reportedly moving on with its messaging plan to acquire Greenland, according to NYT.
• Chinese officials acknowledged in a secret December meeting that Beijing was behind a widespread series of alarming cyberattacks on US infrastructure, according to people familiar with the matter cited by WSJ.

ASIA-PAC

NOTABLE HEADLINES

• China's MOFCOM held an Export Control Work Conference on April 9th-10th and is set to further improve China's export control system, according to a statement.
• RBA Governor Bullock said tariff unpredictability means patience is needed to assess how it could impact demand and supply and it is too early to determine what is the best path for interest rates.

EU/UK

NOTABLE HEADLINES

• BoE announced in light of recent market volatility, the Bank will amend this schedule and will auction short-maturity bonds on April 14th, instead of long-maturity bonds.
• BoE's Breeden said the potential impact of the UK exchange rate is one key uncertainty for her inflation outlook, while she added that UK employment growth is slower than population growth and suggests weakness is due to demand rather than supply.
• German Economic Institute cut the 2025 GDP growth forecast to 0.1% (prev. 0.8%) and maintained the 2026 GDP growth forecast at 1.3%.