OPENING CALL

Turmoil in global markets snowballed into one of the worst routs in recent memory after Trump said he will stay the course with aggressive, economically disruptive tariffs.

"What's going to happen to the markets, I can't tell you," Trump said late Sunday.

"I don't want anything to go down. But sometimes you have to take medicine to fix something."

Amongst the stock futures plunging Monday were U.S. banks , a number of which are scheduled to kick off earnings season Friday.

Stocks to Watch

Apple fell 4.1%. A large majority of Apple's products are assembled in China, which retaliated Friday to Trump's tariffs.

Eli Lilly fell 4% and U.S.-listed shares of Novo Nordisk were down 1.2% after the U.S. administration said that Medicare and Medicaid won't be expanding coverage for anti-obesity medications.

Nvidia was down 4.5%.

Tesla fell 6.9%. Wedbush, a longtime Tesla bull, reduced its price target on the stock, but still rated the shares a buy.

U.S.-listed shares of Chinese companies such as Alibaba tumbled as stocks in Shanghai fell 7.3% after China said it would hit all U.S. goods with an additional 34% tariff.

Watch For:

Employment Trends Index for March; earnings from Levi Strauss, Greenbrier and Dave & Buster's Entertainment.

Today's Headlines/Must Reads:

-How Global Trade Could Survive Trump's Tariffs

-Trump Says Tariffs Are Reciprocal. They Aren't.

- Trump, Unbowed, Is Enacting Change on Scale Rarely Seen Before

-Wall Street Starts to Speak Out Against Trump's Tariffs

MARKET WRAPS

Forex:

The dollar remains a safe haven even if it doesn't appear to be acting like one amid heightened risk aversion stemming from global trade war fears, HSBC said.

However, the dollar looks poised to recover if risk sentiments falls further, it said.

Pepperstone said the dollar was taken a battering as it was the most exposed asset to Trump's tariff "incoherence" with the Japanese yen and Swiss franc being the safe havens of choice.

The euro eased from the highs reached last week against the dollar but remains in demand in the wake of Trump's decision to impose retaliatory tariffs, ING said.

The euro could extend its gains against the dollar on a weaker U.S. economic outlook and fiscal stimulus plans in the eurozone, Danske Bank said.

The gap between the U.S. real rate adjusted for inflation compared to elsewhere could narrow, reducing support for the dollar.

Danske expects the euro to rise to $1.14 in six months.

Bitcoin fell to a five-month low.

Bonds:

Treasury yields fell but stayed above Friday's six-month lows, Pepperstone said.

"Treasuries should continue to perform well, with haven demand providing a helping hand, though we have come a long way, and Fed expectations seem overly-dovish."

Energy:

Oil prices plummeted in early trade.

"The scale of the selloff suggests the market is pricing in a significant demand hit as recession fears grow," ING said.

Top oil exporter Saudi Arabia cut its official selling prices for May loadings of its flagship Arab Light crude to Asia by $2.30 a barrel.

Metals:

Gold futures were broadly flat amid volatile trading, ING said.

Still, gold's slump should be short-lived, with escalating trade actions set to continue propping up safe-haven demand, it added.

Copper Forecast

Copper prices outside the U.S. were expected to be bearish in the near-term, Citi said.

The tariffs' hit to physical copper consumption and manufacturing sentiment is likely to materialize in 2Q, with an average price of $8,500 forecasted for the quarter, it added.

Iron Ore

Demand for iron ore was good, supporting prices, but investors should watch for any restrictive policies on supplies of the metal, Baocheng Futures said.

TODAY'S TOP HEADLINES

Shell Lowers Gas Production Guidance After Unplanned Maintenance Hit Volumes

Shell lowered its integrated gas production estimate for the first quarter as volumes were hit by unplanned maintenance.

The London-based energy giant said Monday that maintenance in Australia, among other regions, means that gas production in the quarter should be between 910,000 and 950,000 barrels of oil equivalent a day, from a previous estimate of 930,000 to 990,000 barrels.

Surging Costs Complicate Plans for New U.S. Factories

Roofing-products manufacturer IKO North America has been on a factory-building spree in the U.S., with one plant completed and four more under construction. After President Trump launched a barrage of tariffs on U.S. trading partners, the math abruptly changed.

Chief Executive David Koschitzky said IKO's just-finished factory in Texas now faces higher prices on the steel it uses to fabricate metal shingles, while the plants that are still being built need machinery that isn't made in the U.S. The company will continue with the projects, he said, but tariffs will make them much more expensive.

LG Electronics Expects Lower Quarterly Operating Profit

LG Electronics forecast a 5.7% drop in first-quarter operating profit, largely meeting market expectations, though the consumer-electronics giant sustained steady revenue growth.

The mixed preliminary quarterly results came as LG Electronics, in response to an expected global economic slowdown, continued to push for new business growth initiatives such as home-appliance subscription services, as well as its heating, ventilation and air-conditioning segment for corporate clients.

What Luxury Sells in a Trade War? Not the Bold Designs Brands Were Banking On

What do people reach for in their wardrobes when the economy heads south? Usually low-key, conservative clothes. Luxury brands hoping that a burst of creativity would pull them out of a yearslong sales slump just got a major setback from President Trump.

The tariff war the White House unleashed has pushed the odds of a global recession to 60% in 2025, according to JPMorgan. Understated luxury designs typically sell better in a downturn when it becomes a no-no for people to flaunt their wealth. Louder fashions take off only once the economy recovers.

Inside Boston's Luxury Brothel Scandal

Eager to gain access to an exclusive establishment near Harvard University, biotech executives, doctors, lawyers and politicians filled out applications and handed over IDs, work badges and personal references.

This elite club was a high-end brothel charging up to $600 an hour for sexual encounters in luxury apartments in Cambridge, Mass.

Columbia's Former President Undergoes Heated Government Questioning in Closed-Door Session

Closed-door government questioning of Columbia University's recently departed interim president indicates the Trump administration's relationship with the school remains strained as they negotiate over federal funding, according to a transcript reviewed by The Wall Street Journal.

Katrina Armstrong, who stepped down as Columbia's interim president March 28, was questioned by a government attorney in Washington, D.C., this past Tuesday for about three hours as part of the Trump administration's investigation of antisemitism on campus. The deposition offers a behind-the-scenes glimpse into the relationship between elite universities and an administration taking extraordinary measures to reset their campus cultures.

Trump Golfs, Fires Off Social Media Posts as Markets Convulse

WEST PALM BEACH, Fla.-Steve Cambronne voted for Donald Trump three times. Now, he hopes the president's far-reaching tariffs don't hurt his small business.

Cambronne, 70 years old, a Fort Myers-based artist, said sales of his whimsical, metallic sculptures were down this weekend, a decline he blames on public concern about the fallout from the tariffs. He decided to skip a coming art show in the Washington, D.C., area because he thinks laid-off federal workers might not have enough spare cash to buy his art.

On Foreign Policy, Party Divisions Become a Chasm, WSJ Poll Finds

Divisions between the two political parties over American foreign policy have grown into a chasm, Wall Street Journal polling shows, as Republican voters have increasingly turned against aid to Ukraine, free trade and international commitments.

The gaping difference shows in a new Wall Street Journal poll, which tested two competing statements about America's foreign alliances. Some 81% of Republicans agreed that U.S. allies haven't shouldered enough responsibility for their own defense and that the U.S. should stop using tax dollars to defend them. By contrast, 83% of Democrats agreed with an alternative statement that international alliances are a source of strength and should be supported with tax dollars.

Write to nina.kienle@wsj.com

TODAY IN CANADA

Earnings:

Nothing major scheduled

Economic Indicators $(ET)$:

Nothing major scheduled

Stocks to Watch:

Barrick Gold Sets Sights on 30% Production Growth by 2030, Ben Van Beurden and Pekka Vauramo Nominated for Election to board of Directors

Market Talk:

No items published

Expected Major Events for Monday

05:00/JPN: Feb Indexes of Business Conditions - Preliminary Release

06:00/UK: Mar Halifax House Price Index

06:00/UK: 1Q Halifax House Price Index: UK Regional Breakdown quarterly release

06:00/GER: Feb Foreign Trade

06:00/GER: Feb Industrial Production Index

14:00/US: Mar Employment Trends Index

14:30/CAN: Bank of Canada Business Outlook Survey

19:00/US: Feb Consumer Credit

23:01/UK: CBI Financial Services Survey

23:50/JPN: Mar Provisional Trade Statistics for 1st 20 days of Month

23:50/JPN: Feb Balance of Payments

23:50/JPN: Mar International Transactions in Securities

23:50/JPN: 4Q Revised Balance of Payments

All times in GMT. Powered by Kantar Media and Dow Jones.

Expected Earnings for Monday

Accord Financial Corp (ACD.T) is expected to report for 4Q.

California First Leasing Corp (CFNB) is expected to report for 1Q.

Dave & Buster's Entertainment Inc $(PLAY)$ is expected to report $0.67 for 4Q.

(MORE TO FOLLOW) Dow Jones Newswires

April 07, 2025 06:14 ET (10:14 GMT)

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