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Investors flock to safe havens, Swiss franc at 10-year

high

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Gold races above $3,200 per ounce to record high

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Bond selloff resumes as investors flee US assets

(Updates with European market open)

By Ankur Banerjee and Amanda Cooper

SINGAPORE/LONDON, April 11 (Reuters) - Global stocks

fell on Friday and the dollar slid after a brutal week marked by

the eruption of an all-out trade war and a bond market selloff

that has ignited fears of recession and shaken confidence in

U.S. assets.

The dollar slid to its lowest in 10 years against the Swiss

franc and a six-month low against the yen as investors sought

other safe haven assets. The euro surged 1.7% to $1.13855, a

level last seen in February 2022 and gold, seen as a safe asset

during times of crisis, hit another record high.

Investors are grappling with worries over the escalating

Sino-U.S. trade war after U.S. President Donald Trump ratcheted

up tariffs on Chinese imports, raising them effectively to 145%.

China has hit back, hiking its tariffs on the U.S. with each

Trump increase, raising fears that Beijing may jack up duties

above the current 84%.

The selloff in U.S. Treasuries picked up pace during

Asian hours, with the 10-year note yield rising to

4.45%, gaining about 45 basis points in the week, the biggest

increase since 2001, LSEG data showed.

"There's clearly an exodus from U.S. assets. A falling

currency and bond market is never a good sign," said Kyle Rodda,

senior financial markets analyst at Capital.com. "This goes

beyond pricing in a growth slowdown and trade uncertainty."

In Europe, stocks pared early gains, leaving the STOXX 600

down nearly 1% on the day and set for a 1.7% drop this

week, one of its most volatile on record.

In Asia, Japan's Nikkei tumbled 4.3% on the day,

while stocks in South Korea fell nearly 1%.

U.S. Treasury Secretary Scott Bessent tried to assuage

sceptics by telling a cabinet meeting on Thursday that more than

75 countries wanted to start trade negotiations. Trump himself

expressed hope of a deal with China, the world's No.2 economy.

But James Athey, fixed income manager at Marlborough, said

the outlook remains clouded in more uncertainty than it did a

month ago. "There are still so many unanswered and unanswerable

questions."

U.S. futures for the S&P 500 and Nasdaq were

mostly flat on the day, but trading was highly erratic, with

both having traded down as much as 2% earlier before rallying as

much as 1.6%.

The anxiety about tariffs has sparked a renewed rush into

safe havens, after a brief but massive relief rally following

Trump's move on Wednesday to temporarily lower tariffs on many

countries.

"The short-term outlook for global risk assets remains

uncertain given growth and inflation concerns, fluid sentiments

and fast-changing developments on the trade and tariff fronts,"

said Vasu Menon, managing director of investment strategy at

OCBC Bank in Singapore.

RECESSION FEARS

A violent U.S. Treasury selloff this week, evoking the

COVID-era "dash for cash", has reignited fears of fragility in

the world's biggest bond market.

Thirty-year bond yields rose to 4.90%, on course

for their biggest weekly jump since at least 1982, LSEG data

showed.

"What we are seeing in U.S. bond markets is not currently

about inflation concerns," said Michael Krautzberger, Global CIO

Fixed Income at Allianz Global Investors.

Krautzberger said the price action in Treasuries could be

reflecting investor fears that a sharp growth slowdown, or

recession, "makes an already unsustainable U.S. fiscal outlook

even worse."

"On the other hand, we could just be witnessing a

rebalancing among institutional investors or a deleveraging from

levered funds."

In commodities, gold hit another record high, rising

1.1% to $3,210 an ounce.

Oil prices rose on Friday, but still headed for a second

straight week in the red on concerns about a prolonged trade war

between the United States and China. Brent crude futures

were last up 1% at $63.97 a barrel.

(Editing by Shri Navaratnam and Susan Fenton)