The first week of April began under significant tension in global markets. With the United States advancing protectionist measures, expectations surrounding key economic data, and a fresh surge in gold prices, the international financial agenda was defined by volatility, caution, and repositioning.

 

Here is a full overview from Monday to Friday, highlighting the events that shaped both the market and the geopolitical outlook.

 

Monday: Markets Enter Waiting Mode

 

The week opened with a sense of anticipation. Major US equity futures indices traded lower, reflecting investor caution ahead of Donald Trump’s expected tariff announcement scheduled for 2 April — which he dubbed “Liberation Day.”

 

Wall Street indices declined amid fears that the new tariffs would hamper economic recovery and reignite inflation. Recent reports already pointed to a troubling combination: slowing domestic consumption and persistent inflation, raising the risk of stagflation.

 

Meanwhile, gold prices soared in Asian markets, reaching new record highs. Traditionally viewed as a safe haven during times of instability, gold surged on rising risk aversion and the perception that the White House’s next moves could reshape global trade.

 

Oil prices fluctuated, pressured by concerns over a potential global economic slowdown, particularly in light of forecasted spending cuts in the US and possible retaliatory trade measures.

 

Tuesday: Gold Hits New Highs and China Surprises

 

Global markets traded slightly lower, remaining cautious as they awaited the tariff announcement. In the US, Dow Jones, S&P 500, and Nasdaq 100 futures dipped modestly but steadily. Caution prevailed.

 

Gold extended its rally, marking a fourth consecutive session of all-time highs, driven by uncertainty surrounding the upcoming protectionist measures. Demand for safe-haven assets strengthened amid mounting tension.

 

China delivered an unexpected boost. The Caixin Manufacturing PMI rose to 51.2 in March, beating expectations and signalling robust growth in the manufacturing sector. This was seen as a sign of resilience in the Chinese economy despite external threats.

 

In the US, the labour market came into sharper focus. The JOLTS report showed a decline in job openings, and analysts began to predict adverse effects of the tariffs on employment.

 

Wednesday: Trump Breaks Silence and Unveils New Tariff Order

 

Wednesday marked the pivotal moment of the week. In a speech from the White House Rose Garden, Donald Trump announced a sweeping package of trade tariffs, describing it as “a necessary adjustment to restore fairness in global trade.”

 

Key points included:

 

A base tariff of 10% on all imports, effective 5 April.

 

• China: 34% tariff on imported goods.

 

• European Union: 20% on exports to the US.

 

• Japan: 24%.

 

• India: 26%.

 

Non-US manufactured cars: 25%, with temporary exceptions under the USMCA agreement.

 

Additional tariffs on copper, timber, and products from countries purchasing oil from Venezuela were also under review.

 

The reaction was immediate. Markets responded with falling futures indices, a weakening US dollar, and declining oil prices amid concerns of reduced global demand. Gold, in contrast, held near record highs.

 

Thursday: Wall Street Crashes and the World Reacts

 

Thursday brought a sharp correction. Wall Street saw its worst decline in five years: the Nasdaq plummeted nearly 6%, the S&P 500 fell 4.8%, and the Dow Jones dropped more than 1,100 points. It was a direct response to the previous day’s tariff package.

 

Trump’s tariff plan was deemed the most aggressive since he took office. Economists warned that, while the intent to boost domestic production was clear, the side effects could be severe: rising inflation, shrinking activity, and growing unemployment.

 

Global reactions followed swiftly:

 

• China labelled the move as “unilateral intimidation” and pledged a response.

 

• The EU vowed a “robust and coordinated” reply.

 

• Switzerland and Australia issued criticism, albeit in different tones.

 

Gold maintained its appeal as a safe haven, while oil continued to decline under pressure from anticipated demand contraction. Bitcoin remained volatile amid a broader risk-off sentiment.

 

Friday: Global Markets Plunge Amid Growing Recession Fears

 

On Friday (4 April), global markets opened under heavy pressure. Major US indices saw sharp declines in pre-market trading, continuing the most significant sell-off in five years, triggered by Trump’s announcement of a 10% base tariff on all imports and higher rates for strategic trade partners.

 

US payroll data surprised to the upside, with 228,000 jobs added in March — above expectations — yet the unemployment rate rose to 4.2%, and the report failed to ease investor pessimism. Concerns that the tariff strategy could escalate the risk of a global recession gained traction, with JPMorgan raising the odds to 60%.

 

Gold, after a slight correction from its record highs, continued trending upwards with projections reaching $4,000. Oil prices dropped sharply, driven by demand concerns and news that OPEC+ members plan to accelerate production. All eyes were on a highly anticipated speech by Federal Reserve Chair Jerome Powell, expected later in the day.

 

The World Enters a New State of Alert

 

This week closes as one of the most significant since the start of 2025. The US’s new tariff strategy has dramatically altered global perceptions of trade, macroeconomic stability, and growth projections.

 

Industries such as automotive, technology, manufacturing, and energy were among the hardest hit. Fears of a large-scale trade war are once again being taken seriously by analysts and major market players.

 

Gold has solidified its role as the leading safe-haven asset. Oil, by contrast, has plunged amid looming recession fears.

 

More than just a tariff package, this was the repositioning of a global economic superpower — and its ripple effects will likely be felt in the weeks ahead.

 

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