Global Markets Fall, Bond Yields Spike as Trump's Tariffs Take Effect

By Dow Jones Newswires StaffGlobal stock markets fell again, paired with a big spike in bond yields, as U.S. President Trump's sweeping tariffs came into effect and cast a deepening cloud over the global economic outlook.Long-dated U.S. Treasury yields jumped in overnight trade, where volumes are likely thinner, with the 10-year yield hitting 4.511% at one stage, its highest level since late February. The 30-year Treasury yield spiked 16.5 basis points to 4.879%, having earlier touched 5%, according to Tradeweb. The 10-year German Bund yield was last up three basis points at 2.661%.In Asia, stock markets ended lower overall with only China bucking the trend in the face of Trump's 104% tariffs. South Korea's benchmark Kospi fell 1.7% dragged by semiconductor and battery stocks. Japan's Nikkei Stock Average fell 3.9%, tracking Wall Street's losses overnight. The JGB 10-year yield was two basis points higher at 1.275%. Taiwan's Taiex index closed 5.8% lower. Chinese shares ended higher, supported by defense and consumer stocks. The benchmark Shanghai Composite Index ended 1.3% higher.In Europe, the Stoxx Europe 600 dropped 2.5% at the open. The FTSE 100 lost 2.1% and Germany's DAX fell 2.55%.The dollar fell, with the DXY dollar index against a basket of major currencies down 0.7% to 102.217.Oil prices plunged to a four-year low, with Brent crude off 2.3% to $61.35 a barrel.U.S. futures for the S&P 500 were down 0.3% and futures for the Dow Jones Industrial Average declined 0.3%.Write to Barcelona Editors at [email protected]