Markets Steady Amid Trade Tensions, Strong Gold and Bitcoin Rally Highlight Safe-Haven Demand

🇺🇸 United States

Equities:
U.S. markets experienced modest gains as investors braced for a week filled with significant economic data and earnings reports. The S&P 500 rose over 0.3%, the Dow Jones Industrial Average gained 0.5%, and the Nasdaq Composite edged higher.

Bonds:
The 10-year Treasury yield remained steady at 4.206%, with the Treasury Department expected to keep auction sizes unchanged for the fifth consecutive quarter.

Currency:
The U.S. dollar faced continued pressure amid escalating trade tensions with China. The dollar index slipped, and the euro posted its strongest monthly performance against the dollar in nearly 15 years.

Key Developments:

• Investors await key economic indicators, including U.S. payrolls, GDP, and inflation data, to assess the impact of tariffs on the broader economy.
• The Trump administration’s trade policies continue to create uncertainty, with conflicting signals on U.S.-China negotiations.

🇪🇺 Eurozone

Equities:
European stocks remained subdued, with the STOXX 600 index facing pressure from ongoing trade tensions and cautious corporate outlooks.

Currency:
The euro strengthened against the dollar, benefiting from investor concerns over U.S. trade policies.

Key Developments:

• The European Commission imposed duties of up to 66.7% on imports of Chinese construction machinery, escalating trade tensions between the EU and China.
• Power outages affected large parts of Spain and Portugal, with electricity gradually returning to affected areas.

🇬🇧 United Kingdom

Equities:
The FTSE 100 index experienced minor gains, continuing its recent upward trend.

Currency:
The British pound appreciated against the dollar, briefly surpassing $1.34, as investors reacted to global trade developments.

Key Developments:

• UK stocks are perceived as undervalued, with several companies reporting significant earnings growth over the past year.

🇨🇳 China

Equities:
Mainland Chinese stocks saw mixed performance, with the CSI 300 index slightly down, while Hong Kong’s Hang Seng index edged higher.

Key Developments:

• China’s crude oil storage surged in March, reversing earlier draws, as refineries processed the most oil in a year.
• Trade tensions with the U.S. persist, with China granting limited tariff exemptions but refraining from broader economic stimulus measures.

🇯🇵 Japan

Equities:
The Nikkei 225 index closed at 35,839.99, reflecting cautious investor sentiment amid global trade uncertainties.

Currency:
The yen strengthened against the dollar, with the USD/JPY pair trading around 142.19, as investors sought safe-haven assets.

Key Developments:

• Japanese brokerage Daiwa reported a 24% drop in quarterly profit, citing challenges from global market volatility.

🌍 EMEA (Europe, Middle East, and Africa)

Equities:
Markets across the EMEA region remained cautious, with investors monitoring global trade developments and regional economic indicators.

Key Developments:

• Canada held a general election, with the ruling Liberals projected to win a minority government.

🛢️ Commodities

Crude Oil:
Brent crude prices fell over $1 per barrel, trading around $65.68, amid concerns over global economic growth and demand.

Gold:
Gold prices surged to $3,333 per ounce, up nearly 27% year-to-date, as investors sought safe-haven assets amid market volatility.

Other Commodities:

• Natural gas prices stood at $3.33 per MMBtu.
• Copper prices were at $4.83 per pound.
• Silver traded at $32.95 per ounce.

💱 Cryptocurrencies

Bitcoin (BTC):
Bitcoin traded around $95,206, marking a 10% increase over the past week, its strongest performance since November.

Ethereum (ETH):
Ethereum’s price movement remained steady, with investors closely watching developments in the broader cryptocurrency market.

Key Developments:

• Coinbase announced the launch of an institutional fund offering yields on Bitcoin, aiming to attract more institutional investors.

Top Performers:

• Gold: Up nearly 27% year-to-date, reaching $3,333 per ounce.
• Bitcoin: Gained 10% over the past week, trading around $95,206.
• Euro: Achieved its strongest monthly performance against the dollar in nearly 15 years.

Significant News:

• Escalating U.S.-China trade tensions continue to impact global markets.
• European Commission imposes duties on Chinese construction machinery.
• Power outages disrupt large parts of Spain and Portugal.
• Coinbase to launch institutional Bitcoin yield fund.