Bitcoin Falls as Trump Tariff Remarks Hit SentimentMarket Talk

0732 GMT - Bitcoin falls on reduced risk appetite after President Trump said reciprocal tariffs on Wednesday would start by targeting all countries. His comments came despite last week suggesting he could water down his tariff plans. Concerns about the depth of the tariff plan and the risk of a U.S. recession is sparking a "fresh round of nervousness" in markets, Hargreaves Lansdown analyst Susannah Streeter says in a note. Bitcoin falls 0.7% to $82,006 after hitting a near two-week low of $81,311 overnight, according to LSEG.([email protected])0727 GMT - Credit spreads on euro-denominated and sterling-denominated credit widened last week after President Trump announced aggressive 25% tariffs on all auto imports to the U.S., CreditSights analysts say in a note. Sterling investment-grade spreads widened 5 basis points during the week to 105bps, the widest level in 4 months, while euro investment-grade spreads widened 2 basis points to 92bps, the analysts say. The largest widening in credit spreads came in the auto sector, bank subordinate bonds, and insurance subordinate bonds, while credit within transportation, construction, and healthcare sectors performed better, CreditSights says. ([email protected])0710 GMT - The euro won't necessarily fall if upcoming German and eurozone inflation data come in lower than expected, Commerzbank's Ulrich Leuchtmann says in a note. Lower inflation normally implies the European Central Bank should have good reason to cut interest rates at a fast pace, he says. However, the ECB "likely has a reputation among market participants for not reacting quickly to inflation fluctuations." In this case, lower-than-expected inflation is euro positive while higher inflation is euro negative. Furthermore, U.S. tariffs and possible EU retaliatory tariffs could lead to higher inflation. The German inflation data are due at 1300 GMT and eurozone print is out Tuesday. The euro rises 0.1% to $1.0843.([email protected])0652 GMT - Japanese stocks ended lower as concerns about U.S. tariffs resurfaced. Chip and financial stocks led the declines. Advantest dropped 7.6% and Nomura Holdings lost 5.5%. The Nikkei Stock Average fell 4.0% to 35617.56, marking its biggest percentage drop since Sept. 30. USD/JPY is at 148.92, compared with 149.84 late Friday in New York. Investors are focusing on any developments related to U.S. tariffs. The 10-year Japanese government bond yield fell 6 basis points to 1.485%. ([email protected]; @kosakunarioka)0639 GMT - The dollar falls after remarks from President Trump added to uncertainty over his tariff plans. Trump on Sunday said reciprocal tariffs taking effect on Wednesday would start by targeting all countries. Last week, he suggested these tariffs could be more targeted than previously anticipated. Trump looks serious about making massive policy changes but the next important question is where his pain threshold is over the impact to markets and the economy, Deutsche Bank analysts say in a note. "The rhetoric from the administration at the moment seems to suggest it's high but there is an extraordinary amount of uncertainty at the moment." The DXY dollar index falls 0.1% to 103.886 after earlier hitting a one-and-a-half-week low of 103.765. ([email protected])0628 GMT - German 10-year Bund yields are expected to stay below 2.75% with a number of factors set to propel buys, Commerzbank Research's Rainer Guntermann says in a note. "Bunds are likely to remain underpinned below 2.75% in 10-year yields with inflation data and month-end flows also supportive and European Central Bank rate cuts becoming more likely," the rates strategist says. U.S.-led risk-off remains the key theme as weak U.S. activity and high inflation data amplify U.S. growth concerns and tariff anxiety ahead of President Trump's "liberation day", a reference to April 2 when he is due to announce reciprocal tariffs alongside tariffs on auto imports. The 10-year Bund yield falls 5.5 basis points to last trade at 2.677%, according to Tradeweb. ([email protected])0610 GMT - The shadow of Donald Trump is haunting the U.K. economy, economists at Pantheon Macroeconomics say ahead of possible further tariffs to be set out this week. Trump has earmarked Wednesday as the date for new trade tariffs, a move that could "spark a global trade war in which everyone loses," Pantheon says. Trump might pare back the planned trade duties but uncertainty will still weigh on business investment, and therefore on growth in the British economy, the economists write in a note. ([email protected]; @joshualeokirby)0556 GMT - Eurozone duration could firm, pushing yields lower, benefiting from relatively cheap levels, say Morgan Stanley Research's Lorenzo Testa and Maria Chiara Russo in a note. "We think the next events in the calendar should favor some more richening given duration is currently trading at discount," the rates strategists say. As for upcoming events, they refer in particular to flash estimate inflation data for Italy and Germany on Monday and for the eurozone on Tuesday. In addition, more clarity is expected on U.S. tariffs on April 2. Morgan Stanley's fair value model for 10-year Bunds shows the German benchmark is currently trading on the cheap side. On Friday, the 10-year Bund yield closed 4.5 basis points lower at 2.732%, according to Tradeweb. ([email protected])0553 GMT - Gross government bond issuance in the eurozone in 2Q is expected to fall by 20% to 343 billion euros from the first quarter, according to forecasts of LBBW's Elmar Voelker. A slowdown is usual as countries usually frontload issuance. "This includes not least a significant slowdown in the number of large-volume syndicated new issues," the senior fixed income analyst says in a note. The decline in the net supply will be above average because redemptions are set to increase by around 5% quarter-over-quarter to 224 billion euros, he says. He forecasts net supply of 119 billion euros in the second quarter, a drop of more than 40% from the first quarter. ([email protected])0539 GMT - Morgan Stanley Research recommends investors to increase exposure in U.S. Treasurys in anticipation of lower rates, its strategists say in a note. Specifically, they recommend adding an outright long position in seven-year Treasurys, or in futures, while maintaining exposure to the five-year point on the 2-5-30-year "fly." In a "butterfly," or "fly" trade, investors bet on the shape of the yield curve. The 10-year U.S. Treasury yield trades 5 basis points lower at 4.205%, according to Tradeweb. ([email protected])0522 GMT - Thailand's consumer-price index is expected to have risen 1.13% on year in March, according to the median forecast of eight economists surveyed by The Wall Street Journal. That would compare with February's 1.08% increase and BOT's inflation target range of 1.0% to 3.0%. High frequency data pointed to a decline in retail gasoline prices, while core inflation likely held steady, ANZ Research analysts write in a note. Looking ahead, they expect inflation to fall below the central bank's target range from April, reflecting high base effects and the government's decision to lower retail fuel prices. With price pressures weak and growth lackluster, they expect BOT to further cut rates. The CPI data are due this week. ([email protected])0455 GMT - Consumer inflation in the Philippines likely eased slightly to 2.0% on year in March, down from February's 2.1% increase, according to the median estimate of eight economists polled by The Wall Street Journal. However, Barclays analysts believe inflation could fall below the BSP's target range of 2%-4%, potentially allowing the central bank to cut rates in April. They attribute this to a sharp decline in oil prices in March, a continued drop in rice prices and a slightly higher base effct, they write in a note. The CPI data are due Friday. ([email protected])