Expert perspectives regarding the global stock market’s decline and the bond market’s surge

April 7 (Reuters) – On Monday, investors increased their wagers on the possibility of a recession and a U.S. rate cut as early as May amid concerns regarding a global trade conflict, resulting in a decline in Asian share markets and U.S.

stock futures. The two-day selloff that resulted in the wiping out of trillions of dollars from equity values following the announcement of comprehensive tariffs by the administration of U.S. President Donald Trump last week was further exacerbated by Monday’s loss. At the beginning of the previous week, our multi-

asset portfolio was relatively defensive, with an underweight risk position, primarily due to credit, and an overweight interest rate duration. At the margin, we are employing the sell-off to mitigate this to a certain extent, thereby increasing equity/credit risk and decreasing duration. However, the markets are still quite ambiguous, and we are content to maintain a defensive stance in general. TONY SYCAMORE, MARKET ANALYST, IG, SYDNEY

“This morning, the situation has deteriorated significantly.” The market dislocation has not elicited a response from Trump or Bessent, as their concern levels appear to be extremely low. If the announcements are not reversed, a liquidity event will occur, resulting in a significant loss of liquidity across all asset classes in these markets.

That has already been observed. It is evident that the U.S. dollar will reclaim its position as the kingmaker, with the exception of the yen. KAREN JORRITSMA, HEAD OF EQUITIES, AUSTRALIA, RBC CAPITAL, SYDNEY “Trump initiated this situation.” However, what is the solution to this situation? My concern is that there is no clear line of sight to the exit point or the catalyst for this to be resolved, and it is not him. MATTHEW RUBIN, CHIEF INVESTMENT OFFICER, CARY STREET PARTNERS, NEW YORK “One of the areas in which clients have a greater degree of exposure today is private markets.

This is due to the fact that the private markets of the portfolio are subject to a greater degree of control, as they are not subject to the daily volatility and trading that occurs on a daily basis.” I believe that is a critical point. However, I would not characterise that as a refuge.”This was not the result of an exogenous risk that was discovered.” Tariffs are the cause of this. And none of us is certain when we will witness additional clarity or resolution,

whether it be through further negotiation or a fundamental change to reshape the manufacturing economy in the United States. Jason Wong, Senior Market Strategist at BNZ, Wellington “Trump and his entourage have not yet blinked, and they are not expected to do so over the weekend. However, there will be a point at which they will capitulate, and you are attempting to time the market to predict when that may occur.

We require a response from the Trump team before the bleeding ceases.” Some of it may be due to jockeying due to margin calls or individuals attempting to advance margin calls, or it may be due to pre-positioning or selling into the news in anticipation of what they believe will occur tomorrow morning.

Given that Friday is such a significant down day, it is reasonable to assume that someone is receiving a margin call. “People are extremely anxious about the potential decline in earnings, the uncertainty this brings, and the Federal Reserve’s decision to wait and remain on hold until they receive additional clarity.” If the Federal Reserve is not intervening, who else will? “People are apprehensive that the worst is yet to come.”

They are concerned about the possibility of a market collapse. They are concerned about the potential for a depression, which could result from a recession in the United States and a subsequent global recession. DEAN FERGIE, DIRECTOR, CYAN INVESTMENT MANAGEMENT, MELBOURNE “I anticipate a significant amount of panic selling this morning; however, in the days ahead, a degree of rationality should prevail, and we will observe some buying support.”

The sectors to monitor will be the global discretionary equities and the financials/fund managers that have been affected by the global market weakness. ANGELO KOURKAFAS, SENIOR INVESTMENT STRATEGIST, EDWARD JONES, ST. LOUIS Since the April 2nd tariff announcement, market action has been driven by fear. I believe that a significant number of investors are apprehensive about the potential consequences of a protracted trade conflict.

That sentiment will remain fragile until we receive an off-ramp and some indication that we may be pivoting to striking deals to lower tariffs. CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE “The Trump administration’s failure to issue a policy response to the market sell-off is exacerbating the uncertainty, thereby bolstering the notion that the current trajectory may remain unaltered in the near term.”

Volatility is expected to remain elevated, and the path of least resistance for risk assets is to the downside, unless policymakers demonstrate a distinct pivot. Sean Callow, Senior Forex Analyst at ITC Markets in Sydney “Asian policymakers will be fully engaged today; however, they are aware that they have only a limited degree of control over the market panic.”

The only genuine circuit breaker is President Trump’s iPhone, and he is not demonstrating any indication that the market selloff is alarming him enough to reevaluate a policy stance that he has held for decades. DAVID SEIF, CHIEF ECONOMIST FOR DEVELOPED MARKETS, NOMURA, NEW YORK: “Panic and forced selling through margin calls can be the dominant force during market selloffs such as this.”

That is not to suggest that it is not founded on a very real negative incident, which is the imposition of these tariffs. However, I believe that the subsequent selloff may develop a self-sustaining momentum. In conclusion, I am uncertain as to the exact date on which equities will reach a bottom; however, I do not anticipate that they will return to their pre-April 2 levels in the near future. Ananda Mitra,

Head of Asia Macro Strategy at BNY Investment Institute in Singapore “The market may be legitimately apprehensive; however, it seems to be estimating the most severe consequences of a negative trajectory of trade policy changes in the United States.” In this context, any (eventually) negotiated, and downward adjustments in bilateral tariffs, a larger-than-anticipated U.S. fiscal offset, or a faster-than-anticipated Fed policy

pivot may mitigate some of the headwinds. However, market volatility may remain elevated until there is increased transparency in bilateral negotiations, tariff rollbacks, and other macro policy support. Reporting by the finance and markets team; compilation by Megan Davies and Vidya Ranganathan; editing by Himani Sarkar and Sonali Paul