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HONG KONG/SHANGHAI/NEW YORK (Reuters) -Some hedge funds say they are offloading all or most of their holdings of stocks as U.S. President Donald Trump's trade war wipes out trillions of dollars of market value and forces them to curtail trading using borrowed cash. In the three trading days following Trump's announcement of broad reciprocal tariffs on almost all countries, stock markets across the world have plummeted, and bonds have become both a haven and a bet on rate cuts by the Federal Reserve, turning on their head market assumptions before Trump took office. The selloff on Wall Street has been vicious as investors that bet on U.S. exceptionalism and economic might stampede out of its markets.

An index of European banking <.SX7P shares fell 4.8% on Monday, falling more than 20% from recent closing high and leaving it on course to confirm it is in a bear market. The decline extended into a third day as U.S. President Donald Trump's sweeping tariffs ignited fears of an all-out trade war and a global economic recession. Together with the losses over the past two trading days, the index had fallen by more than 18% on Monday.

TOKYO (Reuters) -The Bank of Japan said uncertainty over Japan's economy was growing as some firms worried about the hit to profits from higher U.S. duties, a sign that President Donald Trump's sweeping tariffs risk upending a moderate economic recovery. One of the BOJ's branch managers described the Trump-induced turmoil as "unlike any other shock" with the impact on the economy hard to quantify, suggesting the uncertainty will keep the central bank in a holding pattern for the time being. In a quarterly meeting of its regional branch managers on Monday, the BOJ maintained its assessment for all nine regions of the country to say they were either recovering or picking up moderately.

SINGAPORE/LONDON (Reuters) -Global credit markets began to come under fire on Monday, driving the cost of insuring against corporate and sovereign default higher, as recession fears rippled across equities, commodities and currencies. Trillions of dollars have been wiped off global stock markets in the last three days, as investors have taken fright at the range and severity of the tariffs unveiled last week by U.S. President Donald Trump. Fears of a sudden global recession have hit asset markets hard and credit, which is often seen as a warning sign that a deeper downward correction may be approaching, is starting to show the strain.

U.S. stocks are swinging Monday following a manic morning where indexes plunged, soared and then sank again as Wall Street tossed around a false rumor about President Donald Trump’s plans for his trade war. Countries are scrambling to figure out how to respond to the tariffs, with China and others retaliating quickly. Trump’s tariff blitz fulfilled a key campaign promise as he acted without Congress to redraw the rules of the international trading system.

(Bloomberg) -- President Donald Trump and his economic team dismissed investors’ fears of inflation and recession, offering no apologies for the market turmoil sparked by sweeping global tariffs and defiantly insisting a boom is on the horizon. Most Read from BloombergHousing Agency Aims to Relocate Its DC HeadquartersBoston Mayor Wu Embraces Trump Resistance as Campaign Heats UpThis Skinny Mexico City Tower Is Just 14 Feet Wide on One SideThe Irish Hot Press Is the Low-Tech Laundry Trick the Wo

WASHINGTON/LUXEMBOURG (Reuters) -U.S. President Donald Trump threatened to further increase tariffs on China on Monday, raising the possibility of further escalation in a trade war that has already wiped trillions of dollars from global markets. Trump said he would impose an additional 50% duty on U.S. imports from China on Wednesday if the world's No. 2 economy did not withdraw the 34% tariffs it had imposed on U.S. products last week. "All talks with China concerning their requested meetings with us will be terminated!" he wrote on social media.