Gap-up opening seen for Wall Street as US Futures surge up to 2% to snap tariff-fueled three-day rout

President Donald Trump threatened an additional 50 percent tariff on Chinese imports if Beijing does not withdraw its retaliatory duties. However, other major economies, including the European Union and Japan, have opened channels for negotiation. India has already started the negotiations for a bilateral trade agreement (BTA) with the United States.

"There are some significant takeaways from the ongoing chaos. One, the trade war is like to be confined to US and China. Others including EU and Japan have opted for negotiations. India has already started negotiations on a BTA with US. Two, the risk of a recession in the US has increased. Three, China is likely to be the worst-hit economy. Trump’s threat of another 50% tariff on China will, if carried out, almost freeze Chinese exports to US," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

European shares were also trading in the green on April 8, with the pan-European STOXX 600 up 1.56 percent, while Germany’s DAX index edger higher by 1.53 percent.

Japan’s Nikkei 225 rose as high as 6 percent during the session to 33,012.58, while the broader Topix was up 6.26 percent. Hong Kong's Hang Seng, South Korea's Kospi and Shanghai SSE Composite index - all traded in the positive territory after falling sharply on Monday.

In India, Sensex jumped 1,617.16 points or 2.21 percent to touch a high of 74,755.06, while the broader Nifty rallied 504.6 points or 2.27 percent to scale 22,666.20. The gains helped the indices recover a large part of Monday’s sharp losses, when they had logged their worst single-day fall in 10 months.

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