Morning wrap (27.03.2025)

Stock indices on Wall Street returned to a correction yesterday (Nasdaq: -2%, S&P500: -1.1%, DJIA: -0.3%, Russell 2000: -1%), mainly due to a sell-off in technology companies.

A 25% tariff on cars manufactured outside the U.S. will take effect on April 3, Donald Trump announced. Additionally, the U.S. president threatened to impose further tariffs if "If the European Union works with Canada in order to do economic harm to the USA".

"Canada will react soon to the U.S. tariff annoucment", Canadian Prime Minister Mark Carney declared yesterday. The prime minister has scheduled a "high-level" meeting today to discuss "available options" in the context of trade policy.

The latest interest rate cut in Canada was motivated by support for Canadians during a period of uncertainty caused by tariffs, according to the minutes of the Bank of Canada. Without tariff pressure, rates would have remained at 3%.

Asian markets are showing mixed sentiment today. The HSCEI and Shanghai SE Composite are rising (by 0.6% and 0.3%, respectively) after Chinese Vice Premier Ding Xuexiang announced support for the stock market and real estate sector, as well as a more proactive macroeconomic policy in 2025. In response to U.S. car tariffs, however, Japan's Nikkei 225 is down (-0.9%), along with South Korea's Kospi Index (-1.45%).

In the forex market, a correction is visible in the U.S. dollar (USDIDX: -0.2%). The Canadian dollar (USDCAD) is trading flat despite the tariff escalation between the U.S. and Canada. Meanwhile, Antipodean currencies (AUDUSD, NZDUSD), the British pound (GBPUSD), and Scandinavian currencies (USDNOK, USDSEK) are appreciating by an average of 0.3% against the dollar. The EURUSD pair is rebounding by 0.2% after a series of declines.

Precious metals are gaining on a weaker dollar. Gold is up 0.3% to $3,028 per ounce, and silver is up 0.2% to $33.7 per ounce.

Energy commodity futures are recording losses at the start of the session (OIL: -0.4%, OIL.WTI: -0.2%, NATGAS: -2.1%). According to the latest survey conducted by Bloomberg, Donald Trump is perceived as "bearish" for oil prices (64% of respondents), mainly due to low geopolitical risk premiums and record uncertainty.

Cryptocurrencies are mostly rising. Bitcoin is up 0.2% to $87,490, while Ethereum is up 0.85% to $2,027. Futures on Solana (+1.5%), Dogecoin (+1.3%), and Chainlink (+3.4%) are also gaining.

The most important macroeconomic data for today include the final reading of U.S. GDP (Q4), U.S. jobless claims, and Norway’s interest rate decision.