Morning Economic Update

Global bourses tumble on US tariff news. Indices in South Korea, Australia finished down 2%, HNGS -1%, NIKK -3% before futures see some recovery. Europeans are broadly -1.5% and US futures between -1.5-2.5%. Trump continues antagonistic rhetoric and lines up EU as well calling trade deficit an 'atrocity'. Contagion ensues in risk, yield rise, BTC falls sharply through $100k. Canada and Mexico announce own retaliation tariffs, while China will refer US to the WTO. USD soars; against the greenback, C$ at 20y low and EURO flirting with pandemic low of 1.02. Eurozone inflation came in largely as expected but most other news drowned out by tariff headlines and speculation. DAX +1.65%, CAC -1.21%, FTSE -1.04%, Euro STOXX600 -1.34%. USD rallies hard on tariff-led inflation expectation and possibility of stubborn interest rates, DXY 109.49. Gold 2798. BTC $95,580.