LIVE MARKETS-Market tip: Sidestep stocks tied to China (for now)

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MARKET TIP: SIDESTEP STOCKS TIED TO CHINA (FOR NOW)

Stocks have had wild swings as Wall Street tries to parse through tariff policy changes and the global trade volatility. Analysts advise buckling up and steering clear of stocks heavily tied to China until tariff clouds clear.

Last week, China announced that it would raise its levies on imports of U.S. goods to 125%, hitting back at U.S. President Donald Trump's decision to single out the world's second-largest economy for higher duties, even as Trump exempted some Chinese items later.

Barclays recommended "avoiding China exposure", while reiterating that macro regime is turning recessionary.

"We expect HK (Hong Kong) and China equity markets are likely to be clouded by external risks associated with the escalation of tariff disputes in 2Q25 and is likely to extend to 3Q25," said OCBC in a note dated April 11.

In local terms, China's blue-chip CSI300 index .CSI300 and the Shanghai Composite Index .SSEC are down over 2% each as of last close since April 2.

China's retaliation has intensified a global economic turmoil unleashed by Trump's tariffs, rattling financial markets.

"An era of free trade is being replaced by something new. We have been talking for nearly a decade about the winding down of this multidecade long era. The peak is in", said analysts at UBS Global Research.

The tit-for-tat tariff increases by the U.S. and China stand to make goods trade between the world's two largest economies impossible, analysts say. That commerce was worth more than $650 billion in 2024.

China, holding an 80-100% market share for 15% of U.S. imports with a 40% price discount, faces a potential near decoupling of U.S.-China trade if tariffs remain above 100%, J.P.Morgan analysts said.

(Joel Jose)

FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:

TWO-FER TUESDAY: IMPORT COSTS AND EMPIRE STATE - CLICK HERE

GATHERING SOME STEAM - CLICK HERE

S&P 500 INDEX: CAN IT BUILD BACK BETTER? - CLICK HERE

RECOVERING FROM PEAK TARIFF PANIC - CLICK HERE

HUMPTY DUMPTY HAS FALLEN, BUT HARD DATA DOESN'T YET SHOW IT - CLICK HERE

EUROPE INC EARNINGS: "RISKS TO THE DOWNSIDE" - CLICK HERE

BARCLAYS RECOMMENDS LONG 5-YEAR US TREASURIES - CLICK HERE

BOUNCING BACK - CLICK HERE

EUROPE BEFORE THE BELL: LVMH EARNINGS WREST FOCUS FROM TARIFFS - CLICK HERE

MORNING BID: TAXES AND TARIFFS ON THE MIND AS RELIEF RALLY LIMPS ALONG - CLICK HERE