Global markets are navigating another wave of volatility today, driven by escalating trade tensions between the United States and China.

On the U.S. front, President Trump’s long-anticipated reciprocal tariffs — including a hefty 104% levy on certain Chinese goods — officially came into effect. In a statement, the President accused China of manipulating its currency to offset the impact of tariffs and signaled that additional measures could be on the horizon. Among them: potential tariffs on pharmaceuticals, a move that could further shake global supply chains.

In response, China has so far refrained from immediate retaliation. However, according to Reuters, top Chinese leaders are expected to meet today (Wednesday) to discuss possible economic stimulus measures in light of the latest U.S. actions. Markets will be closely watching any policy signals that emerge from this high-level meeting.

Market Reaction: Europe Down, U.S. Mixed

The initial response across markets has been cautious. European indices are broadly lower, weighed down by uncertainty and lack of clarity on China’s next move. Meanwhile, U.S. futures are trading mixed, reflecting investor hesitation in the face of rising geopolitical risk.

Currency markets are also feeling the strain. The U.S. dollar is under pressure as the trade narrative continues to heat up, while safe-haven demand is giving bonds a significant boost ahead of today’s U.S. 10-year Treasury auction — setting the stage for a blockbuster session in fixed income.

Commodities & Corporate Watch

Commodities are responding with a mixed tone. Crude oil is facing demand headwinds, while base metals are trading with less direction, supported in part by hopes that China may step in with fresh economic support.

Looking ahead, investors will have plenty to digest:

• U.S. Wholesale Sales data
• The FOMC Minutes release
• Scheduled remarks from Fed officials including Thomas Barkin
• Treasury supply and corporate earnings from names like Delta Air Lines and Constellation Brands