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Market Review

US: US stocks closed lower on Tuesday, marking a major reversal from a rally that sent the S&P 500 and Nasdaq up more than 4% earlier in the day. As trading opened, investors appeared to shake off days of worry over Trump's tariffs. Hours later, markets resumed their jitters and a selloff ensued. The Dow Jones Industrial Average closed down 320 points, or 0.8%, while the Nasdaq dropped 2.1%.

Asia: Asian shares tumbled at the opening bell on Wednesday as the White House's decision to proceed with substantial tariffs on trade partners, especially a 104% levy on China, soured investor risk appetite.

India: India's benchmark equity indices snapped their three-day losing streak and ended with gains on Tuesday. Market is expected to open with gap down and likely to witness volatile session ahead of Monetary Policy

Global economy: The Trump administration has frozen over $1 bn in funding for Cornell University and $790 mn for Northwestern University while it investigates both schools over civil rights violations, a U.S. official said on Tuesday. The funding being paused includes mostly grants and contracts with the federal departments of health, education, agriculture and defense, the official said, speaking on condition of anonymity.

U.S. President Trump on Tuesday evening signed an executive order imposing an additional 50% tariff on China, marking an escalation in an increasingly dire trade war with Beijing. Trump signed an order increasing his reciprocal tariffs against China to 84% from a prior rate of 34%, effective from April 9. The order comes just a day after Trump threatened to hike tariffs against China if Beijing did not withdraw its decision to impose 34% retaliatory tariffs against the U.S. Trump’s order now brings the total tariff rate against China to 104%, well above the 60% threatened by Trump when he was campaigning for the presidency.

Commodities: Oil prices dropped to their lowest in more than four years in early trade on Wednesday on looming demand concerns fuelled by an escalating tariff war between the U.S. and China, the world's two biggest economies, and a rising supply outlook

Gold prices eased on Wednesday as U.S. Treasury yields ticked higher, while anxious investors monitored the escalating trade war between the U.S. and its key trading partners amid rising fears of a global recession.

Currency: The dollar lost ground to the safe-haven yen and Swiss franc on Wednesday as the imminent imposition by the U.S. of 104% tariffs on China spooked world equity markets and sent the Chinese yuan to record lows.

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