U.S. Markets closed

Here's How Markets Are Reacting to Trump's Latest Trade Salvo

Eric Lam, Gregor Stuart Hunter
The words "Made In China" are seen on an object displayed for a photograph in Tiskilwa, Illinois, U.S., on Tuesday, April 10, 2018. A week after escalating tensions with his threat to impose tariffs on an additional $100 billion in Chinese products, President Trump said Thursday the two countries ultimately may end up levying no new tariffs on each other. Photographer: Daniel Acker/Bloomberg

Global markets already caught in the crossfire of Donald Trump’s escalating trade conflict with China took yet another hit Wednesday after the U.S. pushed ahead with plans to impose tariffs on an additional $200 billion in Chinese goods.

Stocks and industrial metals were impacted most in the wake of the news, selling off as havens from the yen to U.S. Treasuries reacted with modest gains which were soon pared.

The 10 percent tariffs proposed on items from clothing to television components to refrigerators further escalates a trade conflict that’s helped wipe out $2 trillion in value from global stock markets in the past month, according to data compiled by Bloomberg.

More from Bloomberg.com: Trump’s Personal Driver for 25 Years Sues for Unpaid Overtime

“The fear is that the trade war is far from being over and tariffs will be enacted on both sides, reducing international trade and causing inflation, hurting investor sentiment,” Tim Ghriskey, chief investment strategist with Inverness Counsel, said in a phone interview. “The fear about these tariffs that the markets have is real.”

Here’s a look at how various markets across the globe reacted:

S&P 500 and Dow Jones futures slumped as much as 1.1 percent.

The yuan weakened further, falling as much as 0.6 percent against the dollar in the biggest move among Asian currencies before paring losses.

Stocks across China tumbled at the open. The benchmark Hang Seng Index in Hong Kong approached its lowest level since last September, led by declines in consumer companies and industrials.

Other Asian equity markets were also hit, with declines seen in Japan, Korea, Taiwan and Australia.

The yen spiked initially before paring gains as the session progressed.

A similar pattern was seen in Treasuries, where yields dropped on the news before recovering some of the initial losses.

Base metals showed clear signs of stress, reflecting investors’ worries about the impact of trade tariffs on global growth and the demand for raw materials.

More from Bloomberg.com

Read Here's How Markets Are Reacting to Trump's Latest Trade Salvo on bloomberg.com