The retaliatory tariffs announced by President Donald Trump last week remain the main driver of trade until this week.
This new round of tariffs has sparked concern and uncertainty in the market with the 'greed & fear' indicator showing extreme fear.
However, the situation is still not at its peak when China loudly showed its readiness to oppose the American tariffs.
After China announced to impose a 34% retaliatory tariff, the United States confirmed an additional 50% tariff on China, bringing the total tariff on the world's second largest economy to 104% and will begin today, Wednesday, April 9.
Several countries are trying to negotiate with the United States on the tariff issue, including Malaysia which will also send officials to start a tariff dialogue.
A bad situation is expected to continue for global trade, unless negotiations or Trump himself stops the tariffs.
If they continue, the tariffs risk affecting the global supply chain and many companies will face problems.
In turn, manufacturers who are forced to face rising costs of goods are likely to raise the prices of products they sell to consumers.
The impending inflationary surge will also influence the decision of central banks to set their monetary policy to offset pressure on the economy.
Currently, analysts are warning investors to be wary of volatile movements involving currencies, stocks, bonds and other financial instruments.
On Thursday, investors will be ready to await the release of the FOMC meeting minutes report and also American inflation data which will be the focus of the Federal Reserve (Fed).
