Daily summary: Dollar dips with US equities, while gold outshines everyone (16.04.2025)

U.S. stocks and the dollar recorded declines today due to escalating tensions related to semiconductor tariffs. The Nasdaq is currently down 2.07%, while the S&P500 has lost 1.3%.

Concerns about supply chains and the overall costs of regulation triggered a sell-off in major tech companies (Nvidia: -7.8%, AMD: -7.6%, ASML: -6%, Apple: -2.9%).

Sentiment in Europe was quite mixed today. Stock exchanges in London (FTSE 100: +0.3%), Milan (FTSE MIB: +0.6%), Madrid (IBX35: +0.5%), and Frankfurt (DAX: +0.27%) recorded gains. However, slight declines were observed on the French CAC40 (-0.07%) and Swiss SMI (-0.1%)

The Bank of Canada (BoC) left the main interest rate unchanged at 2.75%, as expected. The Canadian dollar gained against the USD following the decision. Bank of Canada officials communicated that significant changes in U.S. trade policy have increased uncertainty, lowered growth prospects, and raised inflation expectations.

Cleveland Fed President Beth Hammack advocated for maintaining interest rates in the U.S. at the current level.

Powell: "There will be no strong labor market without price stability." The Fed President echoed Hammack's concerns about the dual risks to the mandate. He also added that the central bank is in a good position to wait for more clarity on economic conditions.

In the forex market, the dollar remains the biggest loser (USDIDX: -0.65%), which is trading at its lowest level since April 2022. The biggest gainers are the Scandinavian currencies (USDNOK: -0.7%; USDSEK: -1.15%) and EURUSD (+0.8% to 1.1371). Capital is also flowing into safe-haven assets, such as the Swiss franc (USDCHF: -0.9) and the yen (USDJPY: -0.4%). The pound is trading flat.

Rising uncertainty is supporting gold prices today, with gold up 3% and hitting new historical highs.

Brent and WTI crude oil are up 2.05% after a noticeable decline in inventories according to the DOE (0.515 million, previously: 2.553 million) and growing hopes for easing the trade war between China and the U.S. However, NATGAS futures are in retreat (-2.5%).

Good sentiment is also visible in the cryptocurrency market. Bitcoin is up 1.3% to $85,000, Ethereum is up 0.2% to $1,597. Meanwhile, contracts on Dogecoin (-0.85%), Chainlink (-0.6%), and Ripple (-0.9%) are in the red.