Investors Face Trade Uncertainty
Financial markets braced for increased volatility after US President Donald Trump announced plans to impose a 25% tariff on the European Union, with existing duties on Mexico and Canada set to take effect on April 2.
However, conflicting messages from the US administration added to investor uncertainty, causing volatility in currency and equity markets.
The US dollar rose, while the Canadian dollar steadied after coming under pressure in Wednesday's trading. Markets remained cautious as analysts assessed whether Trump's latest move was merely a negotiating strategy or a sign of more aggressive trade restrictions.
Studies show that tariffs on Chinese imports may have a bigger impact on the US economy than official data suggests.
US Treasury yields fell, reversing earlier gains that pushed the US 10-year bond yield to its lowest level since mid-December.
Bitcoin Falls, Oil Falls, Gold Holds Steady
Bitcoin plunged to around $84,000, down more than 20% from last month's highs, driven by outflows from exchange-traded funds (ETFs) that added to selling pressure.
Oil prices also fell, while gold held steady amid cautious market sentiment.
In currency markets, the yen was around 149.00 against the US dollar after stabilizing on Wednesday. A senior Japanese finance official signaled there was no immediate concern over speculation about a possible interest rate hike by the Bank of Japan (BOJ), which had previously pushed the yen to a four-month high.
Traders are now looking ahead to the release of key US economic data on Thursday, including GDP and initial jobless claims, which are expected to provide fresh clues on the direction of the Federal Reserve's (Fed) monetary policy.
