Digest | 10 April 2025
- Edward von der Schmidt
- Apr 11
- 3 min read
Updated: Apr 21
Momentum from Wednesday's reciprocal tariff pause proved short-lived after overnight equity strength dissipated on Thursday, when the reality of a US-China trade war and shaken world order appeared to set in. The S&P 500 closed down 3.5%, WTI fell below $60bbl, gold hovered near record highs, and Treasury weakness continued notwithstanding softer-than-expected inflation data. While global partners sought to reduce US financial and diplomatic exposure, the House adopted the Senate's budget blueprint to begin the reconciliation process. The legislation could add another $5.5 trillion to the deficit over ten years even if $1.5 trillion of spending cuts are incorporated. Longer-dated Treasury yields were on pace for their highest weekly increase in over 40 years.