Morning Bid: Risk assets trampled as Trump touts broad tariffs

On March 31, global markets opened the week on a turbulent note after U.S. President Donald Trump announced sweeping tariffs that will affect all countries. Asian equity markets were hit hard, with the Nikkei falling 3.8% and similar declines seen in Nasdaq futures, fueling fears about a potential U.S. recession. Analysts at Goldman Sachs have estimated an average tariff rate around 15% and raised recession odds to 35%.

Investors reacted by driving a rally in bonds and pushing gold prices to new highs, while lower yields contributed to a weaker dollar against currencies such as the yen, euro, and pound. Supplementary insights from sources including the Financial Times and Reuters indicate that despite the immediate market shake-up, longer-term dynamics in global trade and digital services may help mitigate the impact over time. Market participants are now closely watching key economic indicators, including German retail sales and the Dallas Fed manufacturing survey, for further clues on future trends.