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Markets Whipsaw on Fresh U.S.–China Trade Salvos as Caution Returns

Investor caution deepens before U.S. bank earnings, with IMF forecasts pending.

Overview

  • After threatening 100 percent tariffs on Chinese goods, President Trump posted conciliatory messages saying the U.S. does not want to harm China, helping risk assets stabilize to start the week.
  • European stocks were signaled lower on Tuesday despite Monday’s Wall Street rebound, as investors positioned cautiously ahead of major U.S. bank results that open the earnings season.
  • Beijing condemned Washington’s stance and vowed to fight a trade war “to the end” while keeping talks open, and both countries began levying new port fees on cargo ships today.
  • Safe-haven demand persisted with gold touching a record near $4,060 per ounce, while oil prices inched higher.
  • Cryptocurrencies saw a sharp weekend sell-off that erased roughly €400 billion in market value with record liquidations before a partial recovery, alongside allegations of suspiciously timed short trades on Hyperliquid.