Stocks tank, gold hit new record high

HONG KONG

Equity markets suffered a bloodbath on Thursday after Donald Trump delivered a blow with sweeping tariffs that many fear will spark recessions and ramp up inflation.

"President Trump walked into the Rose Garden and detonated the most aggressive trade shock the market's seen in decades. This isn't a jab, it's a full-on haymaker," said SPI Asset Management's Stephen Innes.

Wall Street "had talked itself into a softer, more symbolic move. Instead, Trump carpet-bombed the global supply chain,” he added. 

He said the measures meant that inflation risks had surged and economic growth expectations would be cut, with the Fed  "pinned between a hawkish rock and a deflationary hard place."

Safe havens rallied as traders sought to dump risk assets.

Gold hit a new peak of $3,167.84 and the Japanese yen strengthened to 147.69 per dollar from 150.50 the day before.

U.S. Treasury yields sank to their lowest level in five months.

Oil also suffered big losses, with both main contracts down more than two percent on fears that the shock to economies would hit demand.