Global Markets Poised for Early Losses Amid Trade War and Geopolitical Uncertainty

Overview:

Asian markets anticipate a bearish start as concerns over a wider trade war and geopolitical tensions continue to unsettle investors.

Equity Markets:

* Australia: Markets fell 1% shortly after opening, with National Australia Bank Ltd. dropping over 8% following a decline in earnings.
* Hong Kong and Shanghai: Equity index futures point to declines.
* Tokyo: Benchmark contract remained steady after a surge in chipmakers boosted the S&P 500 to a record high despite a dip in major tech stocks.

Trump Tariffs and Diplomacy:

* President Trump threatens tariffs of around 25% on automobile, semiconductor, and pharmaceutical imports, expected to be announced on April 2.
* US and Russian officials engage in talks on Ukraine, raising hopes for broader cooperation.

US Markets Recap:

* S&P 500 rose 0.2%.
* Nasdaq 100 gained 0.2%.
* Chipmakers index surged 1.7%, fueled by speculation and optimistic outlooks.
* 10-year Treasury yield increased seven basis points to 4.55%.

Other Markets:

* Chinese bond selloff extends, with investors shifting funds to stocks and short-term money markets.
* Positive sentiment in Asia following President Xi Jinping's support for tech companies.
* Bank of Japan considers further interest rate hikes after raising to 1%.
* Federal Reserve indicates restrictive monetary policy until inflation declines.

Key Events:

* Wednesday: New Zealand rate decision, Fed minutes
* Thursday: China loan prime rates, Eurozone consumer confidence, US initial jobless claims
* Friday: Eurozone manufacturing and services PMI, US S&P Global manufacturing and services PMI, existing home sales, consumer sentiment

Market Movements Summary:

* Stocks:
* S&P 500 futures steady
* Nikkei 225 futures unchanged
* Hang Seng futures down 1%
* S&P/ASX 200 declines 0.8%
* Currencies:
* Bloomberg Dollar Spot Index up 0.2%
* Euro unchanged at $1.0446
* Japanese yen slightly weaker at 152.04 per dollar
* Cryptocurrencies:
* Bitcoin gains 0.5% to $95,440.06
* Ether rises 0.5% to $2,665.58
* Bonds:
* 10-year Treasury yield up seven basis points to 4.55%
* Australian 10-year yield increases two basis points to 4.52%
* Commodities:
* WTI crude futures flat at $71.75 per barrel
* Spot gold steady