Investor sentiment swung lower in overnight trading after China unveiled a tariff response and specific issues in US tech shares sunk the sector. Gold and bonds rallied and oil plummeted as growth fears plagued markets. Currency market reactions were more measured, but the safe haven Yen outperformed commodity exposed currencies like the Australian dollar.

White House twitter attacks on Amazon and worries that Tesla will miss yet another production deadline sparked a general move out of technology stocks. The selling spread across the sector, and the broader market, although the Nasdaq still performed worst among major indices. Stretched equity valuations in Europe and the US have investors nervous and the “pile on” selling overnight points to vulnerability to panic.

Bonds yields have fallen to levels last seen before the February inflation scare. Support for gold is partially inspired by a weaker US dollar, but fear fuelled the rally. US manufacturing underperformed in March according to the ISM, but the prices component showed renewed life.

The RBA is expected to maintain interest rates and a soothingly optimistic outlook at its monthly meeting today. Investors will see a full week of macro data. Highlights include China Caixin PMIs mid-week and US non-farm payrolls on Friday night.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.