The global sell-off gained momentum. From equities to gold to crude, you name it and every asset class is on a downward spiral after the tariff storm started by US President Donald Trump. The GIFT Nifty implied a lower start. The Asian indices are trading in the red tracking Friday’s meltdown in the US stock market on the back of tariff turmoil.
Previously, on Friday, the NSE Nifty 50 closed the session 346 points or 1.49% lower at 22,904, while the BSE Sensex lost 931 points or 1.22% to close at 75,35.
Key global and domestic cues to know on April 07, 2025
US futures cracks
US stock futures fell on Sunday night as the White House continued to stand firm following a significant two-day decline in the stock market after President Donald Trump announced high tariff rates on most key US trading partners. The Dow Jones Industrial Average futures lost 1,405 points or 3.7%. The futures tied to the S&P 500 shed 4.3%. The Nasdaq 100 futures fell 5.4%.
Asia Markets
Asia markets traded on a lower/higher note following China’s retaliatory tariffs on US goods and a nosedive in the US markets on the back of Trump’s tariff turmoil. Japan’s Nikkei 225 plunged 8% to 30,967. South Korea’s Kospi collapsed 4.7% to 2,348.52. The Shanghai Composite was yet to commence trading. The Asia Dow was trading 5.13% lower at 3,312.81.
US markets
Wall Street declined on Friday as China retaliated with new tariffs on US goods, almost igniting a global trade war that may lead to a recession. The Dow Jones Industrial Average dipped 2,231.07 points, or 5.5%, to 38,314.86, the biggest decline since Covid-19. The S&P 500 nosedived 5.97% to 5,074.08, following a fall of 4.84% on Thursday. The Nasdaq Composite dropped 5.8% to 15,587.79.
China’s retaliatory tariffs
China announced retaliatory tariffs of 34% on US goods, which will come into effect from April 10. “A 34% tariff will be imposed on all imported goods originating from the United States on the basis of the current applicable tariff rate. The current bonded, tax reduction and exemption policies remain unchanged, and the additional tariffs will not be reduced or exempted,” said China’s State Council Tariff Commission in a statement.
Gold slides 2%
The gold rate today is Rs 88,210 per 10 gms, retreating 1.8% from its all-time high of Rs 89,860/10 gms. The gold prices are down 1.25% compared to a week ago. The fall in gold rate could be primarily due to profit booking since there has been a significant run over the last 12 months.
US dollar
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, surged 0.22% at 102.75 on Monday morning. The index evaluates the strength or weakness of the US dollar in comparison to major currencies. The basket contains currencies such as the British Pound, Euro, Swedish Krona, Japanese Yen, Swiss Franc, etc. The rupee depreciated 0.26% to close at 85.23 to the dollar on April 04.
Crude oil
The crude oil prices declined on Monday. WTI crude prices were trading at $59.87 down by 3.44%, while Brent crude prices were trading at $63.41 down by 3.31%, on Monday morning.
FII, DII data
Foreign institutional investors (FII) were the net sellers of shares worth Rs 3,483.98 crore. Also, the Domestic institutional investors (DII) were the net sellers of shares worth Rs 1,720.32 crore on April 04, 2024, according to the provisional data available on the NSE.