US stocks were volatile amid tariff-related headlines and 'fake news' - Newsquawk Asia-Pac Market Open

US stocks finished mostly lower on what was a volatile session as participants digested tariff-related headlines and with President Trump showing no signs of easing up on his aggressive approach to trade as he threatened an additional 50% tariff on China if they do not remove the 34% tit-for-tat tariff on the US by Tuesday. Nonetheless, some countries are aiming for deals with the US to reduce tariffs, although WH Trade Adviser Navarro warned that non-tariff barriers are the issue, while stocks saw a brief, monumental spike higher and T-notes were slammed after CNBC reported that WH Economic Adviser Hassett said President Trump was mulling a 90% pause on tariffs for all countries except China. However, this was misinterpreted by CNBC and the White House were quick to deny the comment which it called "fake news", to trigger a reversal that saw stocks tumble and T-notes pare some of the earlier losses.
USD was firmer to start the week as it benefitted from risk-off FX trade and as US yields surged with President Trump remaining firm on his tariff policy, while he threatened China with an additional 50% tariff effective on April 9th, if China doesn't withdraw its recently announced 34% reciprocal tariff by April 8th. Furthermore, the White House swiftly shut down rumours that Trump was considering a 90-day pause in tariffs for all nations, ex China. Aside from the tariff-related headlines, data and Fedspeak were limited with comments from Fed's Kugler not providing much to shift the dial in which she noted that inflation expectations have moved up and that it is mainly short-term expectations.
Looking ahead, highlights include New Zealand NZIER Business Confidence, Japanese Current Account, Australian Westpac Consumer Sentiment & NAB Business Survey, Supply from Australia and Japan.

More Newsquawk in 2 steps:

1. Subscribe to the free premarket movers reports

2. Trial Newsquawk’s premium real-time audio news squawk box for 7 days

LOOKING AHEAD

Highlights include New Zealand NZIER Business Confidence, Japanese Current Account, Australian Westpac Consumer Sentiment & NAB Business Survey, Supply from Australia and Japan.
Click for the Newsquawk Week Ahead.

US TRADE

US stocks finished mostly lower on what was a volatile session as participants digested tariff-related headlines and with President Trump showing no signs of easing up on his aggressive approach to trade as he threatened an additional 50% tariff on China if they do not remove the 34% tit-for-tat tariff on the US by Tuesday. Nonetheless, some countries are aiming for deals with the US to reduce tariffs, although WH Trade Adviser Navarro warned that non-tariff barriers are the issue, while stocks saw a brief, monumental spike higher and T-notes were slammed after CNBC reported that WH Economic Adviser Hassett said President Trump was mulling a 90% pause on tariffs for all countries except China. However, this was misinterpreted by CNBC and the White House were quick to deny the comment which it called "fake news", to trigger a reversal that saw stocks tumble and T-notes pare some of the earlier losses.
SPX -0.23% at 5,062, NDX +0.19% at 17,431, DJI -0.91% at 37,666, RUT -0.92% at 1,810
Click here for a detailed summary.

TRADE/TARIFFS

It was initially reported that White House Adviser Hassett said US President Trump is mulling a 90-day pause in tariffs for all nations, except China. However, it was reported shortly after that no one at the White House was aware of a 90- day pause and the White House said a 90-day pause is "Fake News".
US President Trump responded they are not looking at that when asked regarding a pause in tariffs and said Japan needs to open up its country. Trump stated that tariffs could be permanent and there could also be talks, while he is not worried about tariffs driving trading partners into the hands of China and said the US cannot be taken advantage of any longer. Trump said the EU has been very tough over the years and repeated it was formed to bring damage to the US, as well as noted that the EU tariff response is not enough.
US President Trump warned "if China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow..... the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th". Furthermore, Trump said "Additionally, all talks with China concerning their requested meetings with us will be terminated!" and that negotiations with other countries, which have also requested meetings, will begin taking place immediately.
US President Trump commented that "Countries from all over the World are talking to us. Tough but fair parameters are being set. Spoke to the Japanese PM this morning. He is sending a top team to negotiate!" & "It all has to change, but especially with CHINA!!!"
US President Trump would veto legislation introduced by Sen. Maria Cantwell and Sen. Chuck Grassley that would limit the President's authority to unilaterally impose tariffs, according to a White House statement seen by Axios.
US Treasury Secretary Bessent said US President Trump has tasked him and USTR to open negotiations to implement the President’s vision for the new Golden Age of Global Trade with the Japanese PM. This follows reports that Japanese PM Ishiba held a video meeting with US President Trump and told Trump that Japan has made the biggest investment in the US for five straight years, while they will continue to push the US to review tariff policies.
US Treasury Secretary Bessent said China has chosen to isolate itself by retaliating and doubling down on previous negative behaviour.
USTR is to tell Congress on Tuesday that nearly 50 countries have approached him to discuss tariffs, according to a written testimony seen by Reuters.
US Trade Advisor Navarro said he wants to hear from Cambodia, Mexico and Vietnam on tariffs, while he stated 'this is not a negotiation' regarding tariffs.
US White House Adviser Hassett said Taiwan reached out overnight on tariffs and that President Trump is doubling down on something he knows works, while he added that Trump will listen to trading partners if they offer really great deals and he has seen some deals that are great, but Trump will decide how great.
White House Economic Advisor Miran said would encourage countries to approach Trump with offers to reduce tariffs and that President Trump would welcome countries taking down barriers to US exports. Miran also commented that dollar dominance is a great thing, but it has some side effects that can be problematic, while he couldn’t say if any tariff deals will happen before reciprocal tariffs take effect on April 9th noted the decision will be up to Trump.
US bank CEOs met with Commerce Secretary Lutnick on Thursday to discuss the Trump tariff plan, according to Reuters citing sources.
Apple (AAPL) reportedly plans to send more iPhones to the US from India to offset the high cost of China tariffs, according to WSJ citing sources.
Mexican President Sheinbaum said they want to avoid putting reciprocal tariffs on the US.
EU Commission proposed a 25% tariff on US goods to take effect from May 16th, according to Reuters citing a document.
European Commission President Von der Leyen said they are ready to negotiate with the US on tariffs and are ready for a good deal but are also ready to take countermeasures and will set up an import surveillance task force.
EU's Sefcovic said a range of tariffs are hitting EUR 380bln worth of EU exports to the US and around 70% of total European exports are facing tariffs. Sefcovic stated the collection of duties is to commence on April 15th and the second component on May 15th, while he added the timing of countermeasures on tariffs cannot be delayed. Sefcovic also stated that VAT is an important source of income for EU member states and will not consider changing its VAT system.
EU will drop bourbon from its retaliatory tariff list against the US after heavy lobbying from France, Italy and Ireland, according to a senior official cited by FT. It was separately reported that Italy's Foreign Minister suggested that the EU could postpone initial counter-tariffs against the US to April 30th from April 15th.
UK PM Starmer said they are to support car makers and noted it is a moment of urgency, while he added that tariffs are a huge challenge for their future and that global economic consequences could be profound. Starmer also said it would be wrong to move away from the US-UK special relationship and need to step up to the tariff challenge.
CNBC's Yoon posted an article from China's People’s Daily that stated China's message to Trump is that China is prepared and tariffs will hurt but the Sky won't fall, while it added Beijing is ready with monetary and fiscal steps and with help for businesses and markets.
China is unlikely to yield to US President Trump’s latest threat, according to WSJ's Lingling Wei.

NOTABLE HEADLINES

Fed's Kugler (2025 voter) said tariffs and shortages are important to consider when forecasting what inflation will do new tariffs will be 'consequential' and have already started seeing some increase in prices, while she added that inflation expectations have moved up and that it is mainly short term expectations.
US President Trump commented in a post that oil and interest rates are down, there is "no inflation", while he called for the Fed to cut rates and said China is not acknowledging his warning for abusing countries not to retaliate.
US President Trump's team considers exporter tax credit to offset tariff risks, according to Bloomberg.
US President Trump's trade adviser Navarro said the Dow will hit 50k and talk of recession seems 'silly' given expected tax cuts, while he added the Fed is not going to do its job, but the long bond is doing it and the market is trying to find its bottom.

FX

USD was firmer to start the week as it benefitted from risk-off FX trade and as US yields surged with President Trump remaining firm on his tariff policy, while he threatened China with an additional 50% tariff effective on April 9th, if China doesn't withdraw its recently announced 34% reciprocal tariff by April 8th. Furthermore, the White House swiftly shut down rumours that Trump was considering a 90-day pause in tariffs for all nations, ex China. Aside from the tariff-related headlines, data and Fedspeak were limited with comments from Fed's Kugler not providing much to shift the dial in which she noted that inflation expectations have moved up and that it is mainly short-term expectations.
EUR suffered amid the stronger buck and tariff-related concerns with EU Trade Commissioner Sefcovic announcing the collection of duties is to commence on April 15th and the second response was pushed back around by 15 days to May 15th, while he reiterated the timing of tariff countermeasures cannot be delayed and they will not consider changing the VAT system.
GBP was pressured with GBP/USD retreating beneath the 1.2800 handle amid pressure in cyclical currencies while there were comments from UK PM Starmer who pledged to support carmakers and noted it is a moment of urgency, while he added that tariffs are a huge challenge for their future and that global economic
JPY gave way to the dollar strength which saw USD/JPY briefly return to 148.00 territory amid a surge in US yields.

FIXED INCOME

T-notes settled lower following an extremely volatile session as markets digest trade updates with lows seen in the 10yr T-note future following a misleading report from CNBC that WH Economic Adviser Hassett said Trump was considering a 90-day pause in tariffs for all nations, except China. However, this was swiftly denied by the White House and CNBC later admitted it was a misinterpreted comment.

COMMODITIES

Oil prices remained pressured amid the global downbeat risk tone with US President Trump refusing to budge from his aggressive tariff approach.
Cochilco said the average copper price could top USD 4/lbs this year amid trade turbulence, while it added that base metals prices, including copper, have likely reached a peak for the year and will be hit by US-China trade dynamics.

GEOPOLITICAL

MIDDLE EAST

Israeli PM Netanyahu said he spoke to US President Trump about Gaza and noted they are working on another deal.
Israel received Egypt's new proposal, which involves the release of 8 hostages in exchange for a 40- to 70-day ceasefire although a source said it will be difficult to accept the proposal, according to Jerusalem Post.
US President Trump said he is having direct talks with Iran and that doing a deal is preferable, while he added that they will have a very big meeting on Saturday and that the Gaza war will stop in the not-too-distant future.

RUSSIA-UKRAINE

Russia’s Kremlin said there should be a continuation of contacts between Russia and the US, which is the shared understanding.

ASIA-PAC