Macro
- Fed Chair Jerome Powell sees no urgency to change interest rates, citing a strong economy.
- Warns against premature easing, which may hinder inflation progress, or delaying cuts, which could weaken growth.
- Trump imposes a 25% tariff on steel and aluminum imports, with no exceptions, raising trade war concerns.
Equities:
- Tesla (-6.3%) dropped as BYD launched free smart driving features.
- US Markets: Mixed session—S&P 500 flat, Nasdaq 100 (-0.3%), Dow Jones (+0.3%).
- Hong Kong: HSI fell (-1%) amid US inflation concerns; auto stocks Geely (-10.3%) and Xpeng (-9.1%) tumbled.
- Germany: DAX (+0.6%) hit a record high, led by tech and banking stocks.
- The FTSE 100 also hit a record despite volatility from Trump’s tariffs.
Earnings This Week:
- Wednesday: CVS Health, Barrick Gold, Biogen, Kraft Heinz
- Thursday: Datadog, John Deere, Coinbase, Twilio
- Friday: Moderna, Enbridge, Magna International
FX & Commodities:
- GBP/USD rose above 1.244 as BoE’s Mann advocated a 50bps rate cut over 25bps.
- USD weakened despite Trump’s tariffs; DXY closed at 107.94.
- Gold is steady below its record high (~$2,900/oz) amid Fed rate-cut uncertainty and trade war fears.
- Oil prices rose as US sanctions impacted Russian crude supply; WTI climbed 1.4% to $73/barrel.
Fixed Income:
- US bond yields rose, steepening the yield curve as Powell reaffirmed no rush for rate cuts.
- US 10-year yield closed at 4.535%, up nearly 4 bps.
- European bonds underperformed due to concerns over gas supply shortages.
📊 Investors await US CPI data and Powell’s testimony for further insights.
Disclaimer:
This content is for informational purposes only and does not constitute financial, investment, or trading advice. Market conditions are subject to change, and past performance is not indicative of future results.
