Morning Bid: Ray of Hope Amid Escalating Trade Tensions

Global markets remain on edge as aggressive new U.S. trade tariffs have triggered extreme volatility. European stocks, which fell nearly 12% over the past three days, have shown a slight rebound with futures climbing over 3%, offering a glimmer of hope amid widespread uncertainty. The VIX fear index spiked above 60 for only the second time since the pandemic, underscoring the nervous sentiment gripping investors.

On April 7, 2025, President Donald Trump threatened additional 50% tariffs on Chinese imports, intensifying concerns over further economic disruptions. In Asia, Japan saw a relative rally of 6% amid expectations of trade negotiations in Tokyo, while emerging markets such as Taiwan, Thailand, and Indonesia continued to suffer. As financial heavyweights from the ECB, Bank of England, and other central banks prepare to speak, market participants remain cautious, closely watching developments in Washington and overseas responses to the tariff escalation.