· U.S. stock index futures were sharply lower Friday morning, as investors feared President Donald Trump’s threat of tariffs on all Mexico imports exacerbated the risk of recession.

At around 03:00 a.m. ET, Dow futures slipped 219 points, indicating a negative open of roughly 200 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market participants moved aggressively to price in deeper rate cuts by the Federal Reserve over the coming months, while the closely-watched 10-year Treasury yield dropped to lows not seen since 2017.

· European stocks opened sharply lower Friday morning after U.S. President Donald Trump announced plans to impose a 5% tariff on all Mexican imports from June 10, stirring fears of a global recession.

The pan-European Stoxx 600 dropped 1% after the opening bell, hitting its lowest point since February 19. Autos led the losses with a 2.6% drop as all sectors traded in the red. Telecoms stocks were the best performer, falling just 0.2% in early trade.

· U.S. stock futures slid and sovereign bonds surged on Friday as investors feared President Donald Trump’s shock threat of tariffs on Mexico risked tipping the United States, and maybe the whole world, into recession.

Asian shares fell at first, only to draw month-end bargain hunting having endured a torrid few weeks. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3%, though it was still down a whopping7.3% for the month.

The investor mood darkened further when a key measure of Chinese manufacturing activity for May disappointed, raising questions about the effectiveness of Beijing’s stimulus steps.

Markets moved aggressively to price in deeper rate cuts by the Federal Reserve this year, while bond yields touched fresh lows and curves inverted further in a warning of recession.

Washington will impose a 5% tariff from June 10, which would then rise steadily to 25% until illegal immigration across the southern border was stopped.

Trump announced the decision on Twitter late Thursday, catching markets completely by surprise.

· Japan’s Nikkei tumbled to a 3-1/2-month low, led by a plunge in carmakers after U.S. President Donald Trump said the United States would impose a new tariff on all imports from Mexico next month until illegal immigration is stopped.

The Nikkei share average ended 1.6% lower to 20,601.19, the weakest closing price since February 8.

For the week, it dropped 2.4% to post a fourth straight day of losses, and is off 7.4% for the month for its the biggest monthly drop since last December.

· China stocks fell on Friday, posting the worst monthly decline since last October, as festering trade tensions between Beijing and Washington reduced risk appetite and stoked economic slowdown fears.

At the close of trade, the blue-chip CSI300 index fell 0.3%, to 3,629.79, while the Shanghai Composite Index lost 0.2% to 2,898.70 points.

For the month, CSI300 and SSEC fell 7.2% and 5.8%, respectively, recording their biggest monthly decline since October.

Reference: Reuters, CNBC