Markets soar as Trump pauses tariffs

Good morning, Paul-Alain from Melbourne bringing you the latest. What a night. The Aussie dollar surged and the huge Wall Street rebound set

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Good morning, Paul-Alain from Melbourne bringing you the latest. What a night. The Aussie dollar surged and the huge Wall Street rebound sets our stock market up for a massive rally.  Today's must-reads: • Trump halts tariffs on most nations • Regulators expect uncertainty to persist • Woodside at crossroads over huge gas plant

What's happening now

US President Donald Trump backpedaled on tariffs, announcing a 90-day pause on higher tariffs that hit dozens of trade partners. But, he also raised duties on China to 125%. The S&P 500 rose 9.5%, the biggest one-day gain since the global financial crisis.  Australia's top financial regulators said a period of uncertainty would likely persist for some time, while noting the country's financial system is strong and resilient.  Michele Bullock, governor of the Reserve Bank of Australia.  Photographer: Brendon Thorne/Bloomberg A ruling on whether or not to extend the life of Australia's biggest and oldest liquefied natural gas export facility, North West Shelf, will help determine how the country will fuel itself and its growth for decades. Read our deep dive on the project and its implications here.  Bain Capital-controlled airline Virgin Australia is pushing ahead with plans for an initial public offering in June, despite market turmoil, people familiar with the matter said. That's even as billions of dollars worth of acquisitions and IPOs are being put on ice amid the fragile outlook.  Peabody Coal is reviewing its $3.8 billion acquisition of Anglo American's portfolio of Australian coal mines after an "ignition event" that shut a mine in Queensland. It is the second mine to experience closures since Anglo announced its divestment strategy.  Listen and follow The Bloomberg Australia Podcast on Apple, Spotify, on YouTube, or wherever you get your podcasts. Terminal clients: Run {NSUB AUPOD } on your desktop to subscribe. New Zealand's central bank cut interest rates for a fifth straight meeting and said it has scope for further reductions as US tariffs create downside risks for economic growth and inflation.

What happened overnight

Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping… US stocks and commodities surged after Trump announced the pause on tariffs for most countries, even though he raised duties on China. The Aussie and kiwi soared and yields on short bonds also jumped. The RBNZ is probably glad it only cut 25 basis points yesterday. Here, Governor Bullock may have to tweak her speech due 8pm Sydney given the news. ASX futures indicate a very strong open. President Xi Jinping's government is urging Chinese citizens to think twice before boarding a flight to the US, expanding Beijing's response to the Trump administration's steep tariff hikes. The world's wealthiest people added $304 billion to their combined net worth on Wednesday — the largest one-day gain in the history of the Bloomberg Billionaires Index.  NetJets Inc., a private jet company owned by billionaire investor Warren Buffett's Berkshire Hathaway, is investigating a data breach after a hacker stole information about some of its clients, according to two people familiar with the incident and an email seen by Bloomberg News. Amazon.com Inc. has canceled orders for multiple products made in China and other Asian countries, according to a document reviewed by Bloomberg and people familiar with the matter. United States Steel Corp. shares tumbled as much as 16% in post-market trading after Trump said he does not want to see the steelmaker owned by a Japanese company.

What to watch

• 11:00 a.m. — Australian April consumer inflation expectations • 8 p.m. — RBA's Bullock speech

One more thing...

Wall Street bankers have found themselves in a bind, and their powerful new rivals in private credit may once again hold the key to getting them out of it, at least for now. Read our Big Take on how the turbulence from tariffs is making it harder for banks to offload debt.  Pedestrians on Wall Street. Photographer: Michael Nagle/Bloomberg

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