A look at the day ahead in European and global markets from

Ankur Banerjee

Fears of a sharp downturn in the global economy have

sent markets convulsing once more, with action focused on

currencies and bonds as the escalating U.S.-China trade war has

investors throwing out the usual playbook and fleeing

dollar-based assets.

Stock futures in Europe were pointing to a subdued open

but the Swiss franc reached a 10-year high and the yen

was its strongest in six months. Gold prices resumed

their march to successive record highs and the euro

rose to levels not seen since February 2022.

King dollar no more, perhaps.

After an all-too-brief relief rally that followed U.S.

President Donald Trump's temporary retreat from some of his

tariff threats, Asian stock markets from Japan to Australia were

showing a sea of red. Stock markets in China, the remaining

target of Trump's wrath, were nevertheless relatively steady.

Relentless selling resumed in the dollar and bonds, with the

10-year note yield rising to 4.444% and on course

for its biggest weekly increase since 2001, LSEG data showed.

Thirty-year bond yields are set for their biggest

weekly jump since at least 1982.

This week's volatile reaction in the bond market has called

into question Treasury bonds' status as the world's safest

asset. So, what are the safe assets now?

Apart from the surge in currencies such as the yen and Swiss

franc, gold prices have lurched to another record above $3,200

per ounce. The yellow metal's rise shows no signs of stopping as

safe haven flows keep on coming.

Key developments that could influence markets on Friday:

Economic events: March inflation data for Germany, Feb GDP

estimate for UK, tariff updates

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