Digest | 7 April 2025
- Edward von der Schmidt
- Apr 7
- 3 min read
Updated: Apr 21
Formidable equity losses in Asia extended into European weakness to establish a risk-off tone overnight, but US stocks navigated a turbulent session on Monday to pare losses and grant a temporary reprieve from last week's tariff-induced slide. Though escalating rhetoric between the US and China showed no signs of abatement, the prospect that sticker shock might soon give way to negotiated agreements eased market fears. Demand risks weighed on commodities, which saw oil trade below $60 per barrel for the first time since 2021 as copper also sputtered. Although a global slowdown is all but assured, its magnitude will be determined by the course of trade diplomacy at the onset. The question remains: will a trade war become increasingly entrenched or can tariff negotiations be instruments of peace?