22 April 2025
Global financial markets had a subdued start to the week on Easter Monday, with only the US and Asian markets open, while European markets remained closed.
Evolution of the international financial markets and evaluation of the main events and economic indicators of the previous day session. Available in English.
Global financial markets had a subdued start to the week on Easter Monday, with only the US and Asian markets open, while European markets remained closed.
Financial markets saw a mixed session as investors navigate trade policy unpredictability and weigh the economic outlook. In the euro area, industrial production rose +1.1% mom in March, while the German ZEW economic sentiment index registered its largest monthly decline since 2022 due to uncertainty derived from US tariffs.
Sentiment recovered in financial markets following news that, over the weekend, President Trump exempted smartphones, computers and other electronics from the reciprocal tariffs announced on April 2nd (the 10% baseline tariff and additional tariffs to a list of other countries).
Financial markets had a mixed session on Friday, closing off a highly volatile week with large swings in asset valuations amid chaotic tariff announcements, increased trade tensions, and heightened uncertainty. The latest announcement came from China, which retaliated against the US by increasing the tariff on US imports to 125%.
Global markets endured heightened volatility on Thursday following President Trump's surprise announcement of a 90-day suspension of tariffs for most countries, excluding China. The European Union responded by delaying the implementation of its reciprocal measures.
US President Trump announced a 90-day pause on the so-called “reciprocal" tariffs for all targeted countries, but still maintained the 10% general tariff rate and raised the tariff rate for China to 125% after both countries’ authorities escalated the tension. US stocks rallied and the S&P had its largest intraday gain in over 17 years (+9.5%).
Tuesday saw another volatile session in the financial markets. Risk appetite rebounded from the Asian session on hopes of Trump's willingness to negotiate tariffs with some partners, which extended into the European session and the start of the US session. Asian and european stocks rose and while eurozone government bond yields rose slightly.
Yesterday marked the third consecutive session with an intense risk-off mode and high volatility in financial markets amid heightened tariff uncertainty and ongoing fears of a global economic slowdown. In this context, sovereign bond yields increased on both sides of the Atlantic, with euro area peripheral risk premia edging higher.
Financial markets continued on a risk-off mode during Friday's session, as investors tried to assess the potential consequences of China retaliating on US tariffs, enacting duties on all US imports and export controls on rare earths. In this context, US sovereign yields fell, as investors expected the Federal Reserve will cut its intervention rate twice by July.
So-called 'Liberation Day' tariffs announced by the Trump's administration on Wednesday evening had a substantial negative impact on financial markets during yesterday’s session. From a minimum 10% tariff on all countries, up to an accumulated tariff over 50% on China, investors began to price in slower growth as global trade starts to adapt to the tariffs shock.
Yesterday all eyes were on Trump's tariffs announcement, which took place after US markets had closed. Trump finally set tariffs close to the worst expectations, with a 34% tariff for China, 20% for the EU and 24% for Japan. Asian equities are down at today's session (Nikkei around -3%), while stock index futures for Europe and the US point to similar losses.