Back to white-knuckle ride in the markets

A look at the day ahead in European and global markets

By Ankur Banerjee, Asia Finance & Markets Breaking News Correspondent

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Fears of a sharp downturn in the global economy have sent markets convulsing once more, with action focused on currencies and bonds as the escalating U.S.-China trade war has investors throwing out the usual playbook and fleeing dollar-based assets.

Stock futures in Europe were pointing to a subdued open but the Swiss franc reached a 10-year high and the yen was its strongest in six months. Gold prices resumed their march to successive record highs and the euro rose to levels not seen since February 2022.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 10, 2025. REUTERS/Joachim Herrmann

King dollar no more, perhaps.

After an all-too-brief relief rally that followed U.S. President Donald Trump's temporary retreat from some of his tariff threats, Asian stock markets from Japan to Australia were showing a sea of red. Stock markets in China, the remaining target of Trump's wrath, were nevertheless relatively steady.

Relentless selling resumed in the dollar and bonds, with the 10-year note yield rising to 4.444% and on course for its biggest weekly increase since 2001, LSEG data showed. Thirty-year bond yields are set for their biggest weekly jump since at least 1982.

This week's volatile reaction in the bond market has called into question Treasury bonds' status as the world's safest asset. So, what are the safe assets now?

Apart from the surge in currencies such as the yen and Swiss franc, gold prices have lurched to another record above $3,200 per ounce. The yellow metal's rise shows no signs of stopping as safe haven flows keep on coming.

Graphics are produced by Reuters.

Graphics are produced by Reuters.

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