- U.S. stock indices closed significantly higher, continuing the rebound on Wall Street. A key driver of the gains was renewed optimism in technology stocks, which supported solid performance across the indices. The S&P 500 rose nearly 0.3%, the Nasdaq gained over 0.2%, and the Dow Jones led the pack with a 0.6% increase.
- Data on new U.S. unemployment claims highlighted that the Fed has room to remain patient in making future policy decisions.
- Claims fell below 200,000, well under market expectations of 215,000. The odds of an April rate cut dropped below 40%, signaling that the market is increasingly discounting further Fed easing.
- Despite the Trump administration’s assurances of no intervention in Iran, geopolitical risk remains elevated. According to reports, Prime Minister Netanyahu sought to delay strikes, suggesting that the potential for escalation or an increased U.S. military presence in the region still exists.
- Asian stock markets closed mixed. Technology shares, particularly chipmakers, gained following better-than-expected results from TSMC, while most national indices, including the Nikkei 225, Hang Seng, and Shanghai Composite, ended the session lower. The exception was Australia’s S&P/ASX 200, which rose nearly 0.5%.
- Forex: The Japanese yen strengthened during the Asian session after the Finance Minister emphasized that all options are on the table, including potential joint intervention with the U.S. to prevent excessive currency weakening. Yen gains were also supported by signals that the Bank of Japan may accelerate interest rate hikes.
- Canada and China announced steps toward improving bilateral relations, considering closer cooperation in agriculture and energy sectors.
- The People’s Bank of China (PBOC) set today’s USD/CNY reference rate at 7.0078, above forecasts of 6.9722.
- Concerns over U.S. trade policy resurfaced after the White House signaled that tariffs on AI chips are only the “first step” in a broader strategy targeting the semiconductor sector.
- On the precious metals market, gold fell below $4,600 per ounce, silver dropped over 2% approaching $90 per ounce, palladium declined about 5% to $1,730, and platinum slipped over 3.5% to $2,320.
- Cryptocurrencies: Bitcoin edged up slightly by 0.1%, while Ethereum remained largely unchanged.
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