China and Russia's foreign ministers: comprehensive strategic cooperation will be strengthened

The following is a summary of major news and market updates from 5:00 PM on April 1 to 7:00 AM on April 2:

– The White House states that Trump will announce reciprocal tariffs on Wednesday, raising global concerns about an escalating trade war.

The White House confirmed on Tuesday that President Trump will announce a series of reciprocal tariffs on Wednesday, but did not disclose details such as the scale and scope of the tariffs. Businesses, consumers, and investors are worried that this move will lead to an intensifying global trade war. For weeks, Trump has claimed that April 2 is "Liberation Day," when the U.S. will implement large-scale reciprocal tariffs that could disrupt the global trading system, and he plans to announce these new tariffs in the Rose Garden at the White House at 4 PM Eastern Time. White House spokesperson Levitt stated that the reciprocal tariffs will take effect immediately after Trump's announcement, with a 25% tariff on automobiles starting on April 3.

The Washington Post reported that White House aides proposed imposing tariffs of about 20% on most U.S. imports; markets and consumers are currently awaiting details of Trump's reciprocal tariff plan.

The Canadian Prime Minister's Office stated that Prime Minister Carney discussed Canada's plan to "counter unreasonable trade actions by the U.S." with Mexican President Sheinbaum.

– Celebrating the 75th anniversary of diplomatic relations, the leaders of China and India exchanged congratulatory messages.

In celebrating the 75th anniversary of diplomatic relations, both China and India are at critical periods in their respective modernization efforts, and being partners in mutual achievements to realize "the dragon and elephant dancing together" is the right choice for both sides.

• Ahead of the expected implementation of U.S. tariff measures on Wednesday, Xu Feihong, the Chinese ambassador to India, stated that China is ready to import more Indian products and strengthen trade cooperation.

– Wang Yi discusses the China-U.S. trade war: If the U.S. continues to exert pressure and engage in various forms of "extortion," China will firmly counteract.

Chinese Foreign Minister Wang Yi stated regarding the China-U.S. trade war that China has never accepted hegemonic power; if the U.S. continues to exert pressure and engage in various forms of extortion, China will firmly counteract. He hopes the U.S. will recognize the historical trend and make rational choices. Wang Yi pointed out that China will continue to adhere to the three principles of mutual respect, peaceful coexistence, and win-win cooperation, committed to the stable, healthy, and sustainable development of China-U.S. relations; at the same time, "we will also take resolute measures to firmly safeguard our sovereignty, security, and development interests."

– The foreign ministers of China and Russia held talks, Wang Yi: The comprehensive strategic cooperation between China and Russia will surely "revitalize."

During talks with Russian Foreign Minister Lavrov in Moscow, Chinese Foreign Minister Wang Yi stated that China is willing to implement the consensus reached by the leaders of the two countries and jointly promote the development of China-Russia relations and cooperation in various fields; he believes that under the strategic guidance of the two heads of state, the comprehensive strategic cooperation between China and Russia in the new era will surely revitalize and enter a new stage.

• The Russian Foreign Ministry stated that Russian Foreign Minister Lavrov and Chinese Foreign Minister Wang Yi discussed the situation on the Korean Peninsula and Iran's nuclear program. The two sides also discussed the conflict in Ukraine and the necessity of reaching a lasting peace agreement.

– Tariff issues lead to a contraction in U.S. manufacturing in March, with weakened labor demand.

U.S. manufacturing contracted in March after two consecutive months of growth, while the factory input price index surged to its highest level in nearly three years due to rising concerns over tariffs on imported goods. The survey report released by the Institute for Supply Management (ISM) provided a pessimistic assessment of business conditions, with manufacturers citing tariffs as a major factorPresident Trump's wave of tariffs has weakened the confidence of businesses and consumers. The ISM reported that its manufacturing PMI fell from 50.3 in February to 49.0 last month. The Reuters survey predicted a drop to 49.5. Another report from the Labor Department showed that as of the last day of February, job openings, which measure labor demand, decreased by 194,000 to 7.568 million, highlighting a weakening demand for labor.

• The latest U.S. employment data is poor, and the weak manufacturing report underscores the emerging concerns among Federal Reserve policymakers: employment may decrease, but the risk of a new round of inflation triggered by tariffs limits their ability to take any action.

– Russia claims it cannot accept the current U.S. proposal to end the war in Ukraine.

A senior Russian diplomat stated that Russia cannot accept the current U.S. proposal to end the war in Ukraine, as these proposals fail to address what Moscow sees as the root causes of the conflict, indicating that negotiations between the U.S. and Russia on this issue have reached an impasse. The remarks by Russian Deputy Foreign Minister Ryabkov suggest that Moscow and Washington have yet to bridge their differences. Kremlin spokesman Peskov told reporters earlier on Tuesday that Moscow "is continuing to engage with the U.S.... This issue is very complex. The Ukraine issue we are discussing involves many complicated factors and requires a lot of additional effort."

CNN reported, citing a U.S. official and two sources familiar with the plans, that a Russian official is expected to visit Washington this week for talks with the Trump administration.

Ukrainian Foreign Minister Kuleba stated that Ukraine will work with the U.S. to strive for a mineral agreement text acceptable to both countries.

– A White House official told Reuters that President Trump will consider the final proposal related to TikTok on Wednesday. TikTok must find a non-Chinese buyer before the April 5 deadline, or it will face a ban in the U.S.

– The Financial Times reported that the U.S. venture capital firm Andreessen Horowitz is in discussions to invest in TikTok. The Financial Times cited several people familiar with the matter, saying that their bid has recently become the frontrunner ahead of the April 5 deadline. TikTok and Andreessen Horowitz did not immediately respond to Reuters' request for comment.

– Federal Reserve's Goolsbee: U.S. economic hard data is quite robust, but tariff impacts are concerning.

Chicago Federal Reserve Bank President Goolsbee stated that although "hard" data shows the U.S. economy is fundamentally strong, with a robust labor market and inflation rates falling from their peak in 2022, the series of broad new tariffs implemented by President Trump could lead to a resurgence of inflation or an economic slowdown.

– Exclusive: Trump prepares to issue an executive order to increase arms exports – sources.

Four sources familiar with the discussions said that President Trump's administration is planning to issue an executive order to relax military equipment export rules, which could be announced as soon as Tuesday or Wednesday. Some of these sources are from government agencies, while others are from the industry, and they expect this order to be similar to legislation proposed by Trump's National Security Advisor O'Brien when he was a Republican congressman last yearWhite House aides did not immediately respond to requests for comment.

– U.S. first-quarter auto sales rise as consumers rush to buy before Trump tariffs

U.S. consumers purchased more pickups and SUVs in the first quarter compared to the same period last year, rushing to buy before President Trump's tariffs on auto imports, which could raise car prices by thousands of dollars. Trump plans to impose a 25% tariff on auto imports starting April 3, and automakers are weighing whether to raise prices and by how much. According to Wards Intelligence, overall U.S. new vehicle sales in the first quarter were approximately 3.91 million units, a year-on-year increase of 4.8%. General Motors saw a surge in sales of 17%, leading the increase.

– Eurozone March inflation preliminary reading falls to 2.2%, in line with estimates

The European Union's statistics office announced that the preliminary year-on-year increase in the Eurozone's Harmonized Index of Consumer Prices (HICP) for March fell to 2.2%. Economists surveyed by Reuters had previously expected a March inflation rate of 2.2%. The preliminary HICP for March, excluding food and energy, rose 2.4% compared to the same period last year, with an estimate of a 2.5% increase.

– European Central Bank Governing Council member Lane stated in an interview with Politico that if inflation continues to develop as expected, the ECB should cut interest rates in April, and further easing policies will keep price growth on track.

– Bank of England MPC member Green expressed concern over the rising public expectations for future inflation but added that public inflation expectations remain controlled. She stated, "I do believe that inflation expectations are still controlled, but I think they have been rising over the past six months, which is a concerning issue." Green added, "Currently, this trend has not reached a warning level."

– Business surveys show that British manufacturers faced a tough March due to the threat of U.S. tariffs and imminent domestic tax increases leading to a sharp decline in new orders and waning optimism. The final reading of the S&P Global UK Manufacturing Purchasing Managers' Index (PMI) for March fell from 46.9 in February to 44.9, marking the lowest point since the UK economic recession in October 2023.

– Sources from the OPEC+ oil-producing alliance told Reuters that ministers from eight countries in the alliance will meet on Thursday and may approve further production increases starting in May. OPEC+ is gradually raising oil production.

– China will complete its long-awaited first issuance of global green sovereign bonds on Wednesday, expected to be the first in a series of similar bond issuances, expanding China's influence in the green bond market at a critical moment. Senior officials from China's Ministry of Finance stated last month that they were ready to issue the bonds and detailed specific details in a meeting with investors in London on Tuesday. This bond, worth 6 billion yuan (approximately $825 million), will be issued on the London Stock Exchange.

– The U.S. has imposed sanctions on entities and individuals in Iran, the UAE, and China, accusing them of participating in Iran's weapons procurement network. The U.S. Treasury announced sanctions against six entities and two individuals, accusing them of being responsible for procuring drone components for a major manufacturer representing Iran's drone program. The sanctions will be coordinated with the Department of Justice–S&P: A major reshuffle in China's automotive industry is imminent, and state-owned car companies "may determine their fate in the next two to three years"

S&P Global Ratings released a report stating that China's automotive industry is about to undergo extensive consolidation, with many car companies in unsustainable states that must cut production capacity to restore profitability. The report cites S&P Global Ratings credit analyst Yuan Jie, who stated that for state-owned car companies, the next two to three years may determine their fate; the competition in China's new energy vehicle market is fierce, and mergers or some form of cooperation is a necessary path for many companies to survive.

–Data from Tuesday showed that Tesla's sales in major European markets fell again in March, further indicating that as competition from China intensifies and some consumers protest Musk's political views, they are avoiding Musk's electric vehicle brand.

–Xiaomi Group stated that following a fatal traffic accident involving the SU7 electric vehicle last Saturday (March 29), the company is fully cooperating with the police and has submitted vehicle driving data and system operation information. This traffic accident, which occurred on the De Shang Expressway in Tongling, Anhui, is the first major incident involving the Xiaomi SU7. Information about this tragic accident spread widely on social media on Tuesday, and Xiaomi subsequently released a statement regarding the incident investigation that afternoon. Xiaomi's stock price fell by as much as 6.3% in the afternoon, ultimately closing down 5.5%.

–U.S. bond management company PIMCO stated that due to the impact of Trump’s policies, corporate and consumer confidence has declined, leading to a gradual narrowing of the U.S. capital market's advantages compared to other regions of the world, strengthening the rationale for investors to diversify their investments globally.

–According to ship tracking data and documents, Venezuela's crude oil and fuel exports fell by 11.5% in March, as the U.S. imposed secondary tariffs and revoked key operating licenses for Venezuela's energy sector under U.S. sanctions, causing delays and cargo stoppages in crude oil and fuel exports. Fixed buyers of Venezuelan crude oil in China and India suspended some shipments at the end of March and in April following the announcement of these measures.

(Market Summary)

Stock Market:

–U.S. stock markets saw the S&P 500 and Nasdaq indices both close higher on Tuesday, as investor anxiety dominated a turbulent day on Wall Street ahead of the Trump administration's impending tariff announcement. The S&P 500 rose by 21.22 points, or 0.38%, to 5,633.07 points; the Nasdaq rose by 150.60 points, or 0.87%, to 17,449.89 points. The Dow Jones Industrial Average fell slightly by 11.80 points, or 0.03%, to 41,989.96 points. (.NCN)

–European stock markets rebounded from a two-month low reached in the previous trading session, while the market awaited the U.S. announcement of reciprocal tariffs on April 2. The pan-European STOXX 600 index closed up 1.1%. The UK FTSE index rose by 1.08%, the German DAX index increased by 1.7%, and the French CAC-40 index closed up 1.1%. (.EUCN)

Foreign Exchange Market:

–The Japanese yen rose against the U.S. dollar, following U.S. economic data showing weak manufacturing and labor market performance, while the Trump administration is set to announce reciprocal tariffs on Wednesday. The dollar fell by 0.37% against the yen to 149.41 yen, while the euro fell by 0.65% to 161.14 yenThe US dollar index remained flat at 104.25. The euro fell 0.29% to $1.0786. (FRX/CN)

Bond Market:

– US Treasury yields fell as earlier economic data showed weakness in manufacturing and the labor market, while the upcoming tariff measures announced by the Trump administration heightened investor caution. The benchmark 10-year US Treasury yield dropped 9.1 basis points to 4.154%, earlier falling to 4.133%, the lowest level since March 4. The 30-year Treasury yield fell 9.9 basis points to 4.515%. The two-year US Treasury yield decreased 5.1 basis points to 3.861%. (US/NCN)

– Eurozone government bond yields declined as traders awaited details on the reciprocal tariffs from Trump on Wednesday, while the latest inflation data supported market expectations for an interest rate cut by the European Central Bank in April. The German 10-year government bond yield fell 7 basis points to 2.659%, the lowest since early March. The German two-year government bond yield dropped 3 basis points to 1.999%. (GVD/EURCN)

Oil Market:

– Oil prices fell as traders worried that the reciprocal tariffs Trump is expected to announce on Wednesday could escalate the global trade war. Brent futures fell 28 cents, or 0.37%, to $74.49 per barrel. The intraday high exceeded $75 per barrel. US crude futures dropped 28 cents, or 0.39%, to $71.20. (O/NCN)

Metals:

– Gold prices retreated due to profit-taking but remained close to historical highs. Investors turned to safe-haven assets ahead of Trump's planned announcement of comprehensive tariffs on countries with trade imbalances with the US. Spot gold was priced at $3,110.55 per ounce, down 0.4%, having touched a historical high of $3,148.88 during the session. US gold futures closed down 0.1% at $3,146. (GOL/HCN)

– Copper prices fell to a nearly three-week low, declining for the fifth consecutive trading day, as uncertainty over US tariffs overshadowed positive data from China, the largest metal consumer. At 1600 GMT, the London Metal Exchange (LME) three-month copper contract fell 0.3% to $9,681 per ton. US May Comex copper rose 0.2% to $5.04 per pound. (MET/LCN)

(Today's Highlights)

Important Economic Data (GMT Time):

– US March ADP private employment change (around 1215)

– US February factory orders/durable goods orders revision (around 1400)

Major Economic Events and Official Speeches (GMT Time):

– European Central Bank Executive Board Member Schnabel delivers a speech (1030)

– European Central Bank Executive Board Member Lane chairs a policy roundtable at the ECB AI conference (1405)

– European Central Bank President Lagarde delivers a speech (1945)

– Federal Reserve Governor Cook discusses "Inflation Expectations and Monetary Policy Making" in an online speech (2030)

– Reserve Bank of Australia Governor Lowe and Assistant Governor Kent attend a parliamentary committee (2200) Note: For other important financial news, please click (TOP-CMN); for the recent "Reuters Morning Report," please click (NN/CN)