04/03/2025 Daily Reports
Markets Under Pressure as US-China Trade Tensions Intensify
- US stock futures are pointing to further declines following the S&P 500’s biggest drop of the year.
- Investors are reacting to renewed global trade tensions after President Donald Trump imposed tariffs on Mexico, Canada, and China, prompting immediate retaliation.
Safe-Haven Assets Rally:
- Investors sought safety in traditional havens, with gold rising to $2,922 per ounce. The Swiss franc and the Japanese yen gained, reflecting broader risk aversion in financial markets.
Oil Prices Decline:
- West Texas Intermediate crude dropped by 1.6 percent to $67.26 per barrel, pressured by trade uncertainty and OPEC+ discussions about increasing production.
Cryptocurrency Volatility:
- Bitcoin fell 2.1 percent, continuing its decline after dropping more than 9 percent on Monday.
- Ethereum also declined, reflecting broader weakness in digital assets after Trump called for a digital-asset stockpile.
Key Events to Watch This Week:
- President Trump’s speech to Congress later today may offer further clues about trade policy.
- The US jobs report on Friday will be closely monitored for signs of economic resilience.
- Federal Reserve Chair Jerome Powell’s speech on Friday could provide insights into potential interest rate cuts.
What’s Next?:
- While the market downturn is concerning, it is not yet a sign of broader financial distress.
- However, uncertainty surrounding trade policy, interest rates, and global economic growth is likely to continue weighing on investor sentiment.
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Markets Slide as Trump’s Tariff Blitz Roils Global Trade; Investors Seek Safe Havens
- US stock futures pointed to further losses after the S&P 500 suffered its worst drop of the year, with concerns over escalating global trade tensions rattling markets.
- S&P 500 and Nasdaq 100 contracts fell at least 0.5%, while Europe’s Stoxx 600 slumped 1.5% as investors feared the region would be President Trump’s next target for tariffs.
- Trump’s sweeping tariffs on Mexico, Canada, and China triggered retaliatory measures, with Canada imposing counter-tariffs and China hitting certain US exports with levies up to 15%.
- Investors await Trump’s congressional address for potential hints on further trade actions.
- Meanwhile, the European Union proposed €150 billion in loans to boost defense spending, lifting European defense stocks, while tariff-sensitive automakers and energy shares led the declines.
- Safe-haven assets surged as market uncertainty deepened—gold climbed above $2,920 an ounce, the Swiss franc and yen strengthened, and two-year Treasury yields hit their lowest level since October as traders increased bets on Federal Reserve rate cuts.
- The Bloomberg Dollar Spot Index fell for a second day, reflecting investor concerns about the economic outlook.
- Elsewhere, Trump ordered a halt to all military aid to Ukraine, intensifying geopolitical tensions, while cryptocurrencies remained volatile as Bitcoin tumbled for a second day.
- In Asia, Chinese markets declined modestly, signaling a measured response to US trade actions, while India’s benchmark Nifty 50 Index extended its record losing streak to ten days amid foreign investor outflows.
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