Morning wrap (23.04.2025)

Stock markets rose sharply after Trump softened his tone, gains are especially visible in the USA. Futures contracts on the US500 are already gaining 1.50% today, US100 is trading 1.86% higher, and US2000 is up 1.65%.

Yields on 30-year bonds fell to 4.80%, and the US dollar strengthened by 0.25%. Investors received Trump's latest comments positively, despite the president's recent changing opinions.

Trump stated that he has no plans to fire Fed Chair Jerome Powell, despite earlier threats. However, he wants Powell to act more quickly on interest rate cuts.

Trump also adopted a softer tone towards China, stating that the US side will be "very nice" during negotiations. He warned, however, that the terms of the deal "could be tightened" if China does not cooperate.

Gold is seeing a 1.25% correction to 3335 USD per ounce.

The cryptocurrency market remains optimistic. Bitcoin rose to the level of 93,500 USD, and Ethereum to 1,800 USD.

Fed Governor Kugler emphasized the ongoing economic risks related to tariffs and uncertainty. She reaffirmed public confidence in the Fed and stated that inflation expectations remain anchored. According to Kugler, artificial intelligence should be seen as a potential driver of productivity growth, not a threat to jobs.

The preliminary PMI indicator for Australia in April showed slight declines in the manufacturing and services sectors (51.7 and 51.4 points, respectively).

In Japan, the manufacturing PMI remains in contraction territory for the tenth month (48.5 points), indicating weak orders and low business confidence.

The US is pressuring the UK to lower car tariffs from 10% to 2.5% and ease restrictions on agricultural imports. Regulations concerning the origin of goods are also being reviewed.

Tesla ultimately gained 5.40% in after-hours trading following its quarterly earnings release. The rise occurred despite a 71% drop in profits.