Finance
Morning Bid: Relief Rally Starts to Fizzle
Published by Global Banking & Finance Review®
Posted on March 25, 2025
2 min readLast updated: January 24, 2026
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U.S. tariffs are unsettling global markets, with Asian stocks initially rising but later wavering. European stock futures are also pointing lower.
Relief Rally Fizzles Amid U.S. Tariffs Concerns
A look at the day ahead in European and global markets from Ankur Banerjee
The prospect of narrower-than-feared U.S. tariffs rekindled some investor optimism in recent days but the relief rally in stocks is already showing signs of petering out, worn down by the unrelenting uncertainty over what comes next.
Asian stocks took their cues from Wall Street and rose during the early Asia trading hours on signs that there may be negotiations under way to head off or narrow the scope of reciprocal tariffs due to be announced on April 2.
But by afternoon Asian stocks were wavering, while U.S. and European stock futures pointed lower.
The markets' gyrations underscore investor skittishness over U.S. tariffs and the damage they could inflict on the global economy as well as on corporate profits.
U.S. President Donald Trump indicated on Monday that not all of his threatened levies would be imposed on April 2 and that some countries may get a break. He also warned that automobile tariffs are coming soon and slapped 25% secondary tariffs on any country that buys oil or gas from Venezuela.
And those were just the tariff headlines from Monday!
With the economic calendar during European hours rather sparse, global trade conflicts will remain in the spotlight even if market reactions for now will likely be muted.
Among currencies, the focus during Asian hours was on the Indonesian rupiah, which sank to its lowest level since the Asian financial crisis of the late 1990s on the dollar's overall strength and worries over the fiscal health of Southeast Asia's largest economy.
Investor confidence has been waning in Indonesia, where the stock market last week felt the brunt of investor angst over Indonesian President Prabowo Subianto's massive social spending plans.
The dollar was near a three-week high against the yen and the euro after upbeat U.S. services data eased some concerns about where the economy is headed.
Overshadowing everything in the markets, however, is what's happening with tariffs - implemented, proposed and on the way - and whether they may undermine economic growth in the United States.
Key developments that could influence markets on Tuesday:
Economic events: Germany business climate survey for March from the Ifo institute
(By Ankur Banerjee in Singapore; Editing by Edmund Klamann)
Key Takeaways
- •U.S. tariffs are causing market uncertainty.
- •Asian stocks initially rose but later wavered.
- •European stock futures pointed lower.
- •Indonesian rupiah hit a low since the 1990s.
- •Global trade conflicts remain in focus.
Frequently Asked Questions about Morning Bid: Relief rally starts to fizzle
1What is the main topic?
The article discusses the impact of U.S. tariffs on global markets and investor sentiment.
2How are Asian stocks reacting?
Asian stocks initially rose but later wavered due to tariff concerns.
3What is happening with the Indonesian rupiah?
The Indonesian rupiah sank to its lowest level since the late 1990s.
