Global Markets Rally Amid Trade Optimism, Diverging Central Bank Policies, and Mixed Economic Indicators

🇺🇸 United States

• Equities: U.S. markets extended their rally for a third consecutive day. The S&P 500 surged 2% to 5,484.77, the Dow Jones climbed 1.2% to 40,093.40, and the Nasdaq Composite advanced 2.8%, driven by strong tech performance and easing trade tensions with China.
• Bonds: The yield on the 10-year Treasury note declined to 4.31%, as investors sought safety amid uncertainty surrounding global trade talks.
• Currency: The U.S. dollar weakened, with the Dollar Index falling to 99.29, reflecting investor caution over unresolved negotiations with China.
• Economic Data: Durable goods orders rose 9.2% in March, far exceeding expectations and suggesting strong business investment. However, initial jobless claims increased to 222,000, pointing to potential softness in the labor market.

🇪🇺 Eurozone

• Equities: European markets were mixed. The STOXX 600 index faced volatility due to uncertainty in corporate earnings and concerns over trade disputes.
• Bonds: Yields across Eurozone sovereign bonds declined after the European Central Bank cut interest rates to 2.25% and signaled it may ease further if needed.
• Economic Data: Germany downgraded its 2025 GDP growth forecast to 0%, citing the negative effects of ongoing global trade disruptions.

🇬🇧 United Kingdom

• Equities: The FTSE 100 remained flat as investors weighed mixed earnings results against broader geopolitical risks.
• Bonds: The 10-year gilt yield fell slightly to 4.50%, reflecting growing concerns about economic resilience.
• Economic Data: A survey showed UK manufacturers faced declining export orders in April, highlighting headwinds for the sector.

🇨🇳 China

• Equities: Chinese markets remained under pressure amid deteriorating trade relations with the U.S. and lingering growth concerns.
• Economic Data: Q1 GDP growth came in higher than expected, but annual forecasts were lowered to 4.5%, reflecting persistent headwinds.
• Policy: The central bank left lending rates unchanged for the sixth straight month as it navigates between supporting growth and maintaining financial stability.

🇯🇵 Japan

• Equities: The Nikkei 225 closed at 35,039.15, as concerns over Japan’s export outlook weighed on sentiment.
• Economic Data: Tokyo core consumer prices rose 3.4% year-on-year in April, the fastest pace in two years, driven by increases in food and education costs.
• Policy: The Bank of Japan reiterated its gradual tightening stance while warning of risks stemming from global trade tensions.

🌍 EMEA (Europe, Middle East, and Africa)

• Ukraine: The government failed to secure a restructuring deal with holders of GDP-linked debt, raising fears of fiscal instability.
• India: A recent liquidity injection by the Reserve Bank of India offered only modest relief, with economists urging more aggressive policy measures.

🛢️ Commodities & 🪙 Cryptocurrencies

• Oil: Crude oil prices edged higher, supported by a weaker U.S. dollar and speculation over potential OPEC+ production cuts.
• Gold: Gold prices declined as improved market sentiment reduced demand for safe-haven assets.
• Cryptocurrencies: The crypto market saw increased volatility, influenced by global risk sentiment and regulatory developments.

📌 Key Headlines

• U.S. equities extend rally as trade tensions ease
• Germany slashes 2025 GDP forecast to zero
• UK manufacturers report sharp drop in export orders
• China keeps lending rates steady; GDP growth outlook softens
• Bank of Japan signals gradual rate hikes amid global headwinds