Morning Wrap (11.04.2025)

Asian indices reversed the losses with China's markets leading gains as the CHN.cash rose 2.07%, Hong Kong's HK.cash climbed 1.77%, and Vietnam's VIET30 advanced 1.98%. Meanwhile, Japan's JP225 fell 0.77% and Singapore's SG20cash declined 0.61%. Australia's AU200.cash edged up slightly by 0.21%, while CH50cash gained 0.76%.

Dollar collapses as markets flee US assets with the dollar index plunging below 100 for the first time since July 2023. The Swiss franc hit a decade high, while the yen strengthened to its firmest level since September. The euro surged to $1.13855, a level not seen since February 2022.

Trump's tariff policy sparks market turmoil after his decision to pause higher tariff rates on most trading partners, while simultaneously increasing duties on Chinese imports to 145%. China responded with 84% tariffs on US goods, vowing to "fight to the end" while remaining open to dialogue "on the basis of mutual respect."

Gold prices surge to unprecedented highs breaching $3,200/oz and hitting a record $3,206.84 per ounce, up nearly 6% this week. Analysts cite the weaker dollar and escalating trade tensions as primary drivers, with some eyeing $3,500 as the next target level.

Oil continues downward slide with Brent falling 0.3% to $63.13 and WTI dropping 0.5% to $60.11, hovering near four-year lows. Both benchmarks are headed for a second consecutive weekly decline of about 3.7% amid growing demand concerns tied to the US-China trade war.

US Treasury yields surge with the 10-year yield climbing to 4.48%, on track for its biggest weekly increase since 2001. Thirty-year bond yields are poised for their largest weekly jump since at least 1982, reflecting diminished confidence in US assets.

EIA slashes oil demand and price forecasts cutting its 2025 global demand growth projection by 300,000 barrels per day to 900,000 bpd. The agency now expects Brent to average $67.87 this year, down sharply from previous estimates of $74.22.

Tesla suspends Model S and X orders in China with both imported models unavailable on Tesla's Chinese website. The move comes amid escalating US-China trade tensions, with CEO Elon Musk previously warning that Trump's tariffs would "significantly" impact the company.

Japanese inflation expectations rise with 86.7% of households anticipating higher prices a year from now, up from 85.7% in December. Long-term inflation expectations also increased, with 83.5% expecting higher prices five years ahead.