Trade Tensions Escalate: Markets React to U.S.-China Moves

U.S. actions in the trade war with China have rattled global markets, particularly affecting Nvidia and AMD stocks due to new export licensing requirements. Despite China's GDP growth, Asian indices fell, with Europe's markets expected to follow suit. Gold prices hit a record high amid global uncertainty.

Amid escalating trade tensions between the U.S. and China, global markets are reeling from Washington's latest move to impose new export licensing requirements on Nvidia's H20 and AMD's MI308 AI chips destined for China. In response, Nvidia experienced a significant dip, with shares falling 6% during after-hours trading as the company projected a $5.5 billion hit from the decision.

President Trump's hardline stance continues, with an investigation into new tariffs on critical mineral imports. Despite China's Q1 GDP growth of 5.4% prior to tariff hikes, Asian shares, including Hong Kong's Hang Seng index, saw declines. The pessimism is expected to influence European markets, with EUROSTOXX 50 futures indicating a downtrend.

As economic uncertainties loom, gold prices reached a record $3,275 per ounce. In anticipation of lower inflation figures from Britain, the Bank of England may consider policy easing. Investors are also eyeing the Bank of Canada's rate decision and U.S. retail sales data, with attention focusing on Fed Chair Powell's speech, looking for clues on potential rate cuts.