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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 midday prices, adds comment)

By Ankur Banerjee and Amanda Cooper

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

see-sawed in volatile trade Friday while the dollar sank, as

investors jostled to square their books after a brutal week

marked by all-out trade war and a dramatic loss of confidence in

U.S. assets as anchors of market stability.

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%.

On Friday, China hit back, hiking its tariffs on U.S.

goods to 125%, from 84%, helping unleash another wave of money

into other markets, such as Europe, where the euro roared to

more multi-year highs against the dollar and the Chinese yuan.

An overnight selloff in U.S. Treasuries abated but left

the 10-year note yield at 4.4%, still up about 45

basis points in the week, its biggest increase since 2001, LSEG

data showed. Bond yields go up when prices go down.

"U.S. and China tariffs are now so high on one another, it's

easy to argue trade in most goods will come to a complete stall

apart from essential items and those with high margins. US-China

commercial flows will be in freefall casting doubt on the

long-term and short-term role of the dollar," Mizuho head of

fixed income, currencies and commodities strategy Jordan

Rochester said.

European stocks pared earlier losses to trade up around 0.1%

on the day, having fallen by as much as 1% previously. The STOXX

600 is still down around 1.7% this week, one of its

most volatile weeks on record.

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

up almost 1%, 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 postpone 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 1.2% to $3,212 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 0.35% at $63.54 a barrel.