Morning Wrap (14.03.2025)

Asian stocks advance as Chinese shares surge to over a two-month high after PBoC vows to cut interest rates. Shanghai Composite jumped 1.5%, while the CSI 300 surged 2.2%. Hong Kong's Hang Seng climbed 1.9% as optimism spread across regional markets.

Japan's TOPIX rises 0.8% as Nikkei 225 advanced 0.4% on Friday due to a weaker yen. USD/JPY pair rose 0.4% and was set to inch up 0.2% for the week.

S&P 500 enters correction territory with major U.S. indexes closing sharply lower on Thursday amid escalating trade tensions. S&P 500 futures rose 0.7% in Asian trading after Senate Democratic Leader Chuck Schumer backed the Republican stopgap funding bill to prevent a government shutdown.

Oil prices rebound with Brent crude up 0.7% to $70.34 a barrel after falling 1.5% in the previous session. WTI rose 0.7% to $67.03 a barrel. IEA warned global oil supply could exceed demand by around 600,000 barrels per day this year.

Canada-U.S. tariff talks continue after a high-level meeting between Canadian ministers and U.S. Commerce Secretary Howard Lutnick. Canadian officials said discussions were constructive but offered no immediate relief from tariffs.

China's copper prices near 5-month high rising 0.6% to $9,813.75 a ton amid expectations PBoC stimulus will boost industrial activity and infrastructure development.

PBoC pledges fresh stimulus measures including potential interest rate cuts and tools to maintain yuan stability. The central bank plans to utilize the seven-day reverse repo rate as its main policy instrument, reflecting a move towards market-based liquidity management.

Trump threatens 200% tariffs on European alcohol if EU proceeds with planned 50% tariff on American whiskey. The EU's move, set for April 1, is a response to U.S. tariffs on imported steel and aluminum. Trump warned European wines, champagnes and other alcoholic products would be targeted.

Gold reaches all-time high of $2,993.90 per ounce, supported by trade tensions and soft U.S. inflation data. Prices are set to gain 2.5% this week as escalating trade war and recession fears boost the metal's safe-haven appeal.

U.S. producer prices unchanged in February, signaling potential easing in inflationary pressures. PPI for final demand showed no movement following January's 0.6% increase. On an annual basis, PPI advanced 3.2%, down from January's 3.7% rise.

Tesla developing lower-cost Model Y in Shanghai under project "E41" according to sources. The car will be smaller and cost at least 20% less to produce than the current model, with mass production beginning in 2026. Tesla aims to regain market share in China after slipping to 10.4% last year.

Intel shares surge 14.6% after appointing Lip-Bu Tan as its new CEO, bucking the broader market downturn.

Focus next week on central bank decisions with the Federal Reserve, Bank of Japan, and Taiwan's central bank all scheduled to meet. China will release key economic data including retail sales, industrial output, and trade balance figures on Monday.