By Naomi Rovnick, Yoruk Bahceli and Harry Robertson LONDON (Reuters) -Big investors reeling from the shock of U.S. President Donald Trump's hefty new tariffs are pulling out their global recession playbooks and rushing to diversify away from battered Wall Street stocks and the dollar. Trump imposed heftier tariffs than investors expected on Wednesday, announcing a 10% baseline tariff on all imports, including 34% on China and 20% on the European Union, bringing the overall U.S. tariff level to its highest since 1910. The question is to what extent the measures are a negotiating tactic, how much U.S. partners will retaliate and how fast tariff fallout feeds into economic pain. Here's a look at some markets in focus right now: 1/ RECESSION RISK With tariffs set to hit economic growth and raising the odds for a global recession, it's no surprise that traders are ramping up their central bank rate-cut bets. They now see over 80 basis points (bps) of rate cuts from the Federal Reserve this year, versus closer to 70 bps before Trump's announcement. Even before Wednesday's announcement, JPMorgan saw a 40% chance of a U.S. recession this year. "We don't know where those tariffs are going to end up, but it's negative for global growth," Columbia Threadneedle Investments CIO William Davies said. 2/ DOLLAR RATTLED The U.S. dollar slid almost 2% percent against a basket of peers on Thursday, bringing its loss to over 6% so far this year with investors shunning it as a safe-haven for now. "There's a nervousness that everybody loses in terms of growth and the U.S. is one of the bigger losers," said Societe Generale's chief currency strategist Kit Juckes. With Asian countries being hit with some of the highest tariffs, the dong in Vietnam, which will see a 46% levy, hit a record low. But the euro surged above $1.10 and was set for its biggest one-day jump since 2015, despite hefty measures against the European Union. Juckes said while the tariffs would hurt Europe's economy in the near term, he was looking through that expecting stronger growth later, on the back of massive German stimulus and defence spending. 3/ NIGHTMARE ON WALL STREET Wall Street shares have dropped 3.5% this year with futures trading on Thursday morning in New York signalling another 3% drop could occur in the next few hours. "The US has been showing signs of weakness recently and there is nothing in what is going on now that will help it in the short and medium term," Premier Miton CIO Neil Birrell said.