Morning wrap (24.03.2025)

On Friday, Wall Street closed in the green despite deep losses at the open. The Nasdaq rebounded significantly (+0.52%), while the S&P 500 and DJIA posted slight gains (+0.08%).

Donald Trump announced "flexibility" regarding the retaliatory tariffs planned for early April.

John Williams from the Fed stated that he "does not see signs of uncertainty in inflation expectations [in the U.S.]," describing the latest data from the University of Michigan as an outlier.

Asian and Pacific markets extended their losses amid concerns over the planned wave of U.S. retaliatory tariffs in April. The HSCEI (-0.15%), Shanghai SE Composite (-0.57%), and South Korea's Kospi (-0.3%) are all in the red, while Japan's Nikkei 225 trades flat.

The telecommunications services sector was under particular pressure (e.g., China Unicom -3.1%) after the U.S. launched an investigation into alleged violations of operational restrictions imposed on Chinese companies in the U.S.

The Bank of Japan will continue raising interest rates if inflation keeps moving toward the target, regardless of losses on its government bond holdings.

Preliminary PMI readings showed a significant rebound in Australia. The manufacturing index rose to 52.6 in March (previous: 50.4), while the services index climbed to 51.2 (previous: 50.8). New orders grew at the fastest pace since May 2022, along with the emergence of new businesses.

However, in Japan, PMI unexpectedly declined. The manufacturing index dropped to 48.3 (forecast: 49.2, previous: 49), while the services index fell to 49.5 (previous: 53.7).

On the FX market, the dollar gave up some of its recent gains (USDIDX: -0.05%). The Swedish krona (USDSEK: +0.4%), Norwegian krone (USDNOK: +0.25%), and Australian dollar (AUDUSD: +0.2%) gain the most. Meanwhile, the Japanese yen weakens against the dollar amid concerns over upcoming tariffs (USDJPY: +0.2%). The EURUSD rebounds by 0.2%.

Brent and WTI crude oil futures declined by 0.19% and 0.12%, respectively, while natural gas (NATGAS) also fell (-0.75%).

Iraq plans to increase oil and gas production to 6 million barrels per day by 2029.

Gold trades flat at $3,022 per ounce, while silver gains 0.35% to $33.15 per ounce.

Cryptocurrency futures rebounded strongly as risk appetite increased in U.S. and European index futures. Bitcoin rose to $86,930 (+2.13%), Ethereum to $2,065 (+3.73%), while Solana (+5.2%) and Chainlink (+5%) futures also climbed higher.

The key macroeconomic data releases today will be the preliminary March PMI figures for services and manufacturing.