Market Outlook

Relief Rally Unfolds as Washington Hints at Softening Trade Stance Markets rallied after US Commerce Secretary Howard Lutnick suggested that the Trump administration may reconsider certain tariffs, offering a glimmer of hope to investors rattled by prolonged trade tensions. US Treasuries held onto Tuesday’s losses, while the dollar strengthened against all G-10 peers as President […]

Financial markets braced for heightened volatility as US President Donald Trump unveiled plans to impose 25% tariffs on the European Union, with previously announced duties on Mexico and Canada set to take effect on April 2. However, inconsistent messaging from the administration has left investors grappling with uncertainty, fueling swings across currency and equity markets.

Crude oil edged higher as traders assessed the impact of fresh US sanctions on Iran, adding another layer of complexity to global supply dynamics. Meanwhile, gold hovered near its all-time high, fueled by ongoing demand for safe-haven assets amid economic uncertainty. Treasury 10-year yields slipped three basis points to 4.4% in Asia, tracking the flight

Treasury futures declined as trading resumed on Monday, though cash Treasuries remained inactive in Asia due to Japan’s market holiday. The US dollar softened in early Asian trading, while the euro led gains among G-10 currencies, rising 0.5% against the greenback. The move came after Germany’s conservative leader Friedrich Merz signaled his intent to swiftly

Japan’s inflation picked up more than expected in January, with core consumer prices excluding fresh food rising 3.2% year-on-year, marking the sharpest gain since June 2023. The data reinforced expectations for a policy shift from the Bank of Japan, with traders now pricing in an 84% probability of a 25-basis-point hike by July, up from

Minutes from the Federal Reserve’s January meeting underscored policymakers’ preference for maintaining current interest rate levels amid persistent inflation and lingering economic uncertainty. Officials also signaled potential adjustments to the pace of quantitative tightening (QT), indicating they may hold off on further balance-sheet reductions until the ongoing US debt-ceiling debate is resolved. Geopolitical Tensions Rise

Investors are closely monitoring trade developments as President Donald Trump prepares to unveil new tariffs as early as April 2, adding to previously announced 25% levies on steel and aluminum set to take effect in March. His latest comments provided the clearest signal yet on expanding protectionist measures across additional sectors. Meanwhile, Japan’s exports surged,

The US dollar advanced against major global currencies, with 10-year Treasury yields rising to 4.5% as markets reopened after the Presidents’ Day holiday. Investors assessed remarks from Federal Reserve Governor Christopher Waller, who emphasized that policymakers are in no rush to cut interest rates without clearer signs of inflation cooling. Waller suggested that if price

The Dollar Spot Index has declined roughly 2.5% from its February peak as traders unwind positions built on expectations that US President Donald Trump would aggressively escalate global tariffs under his “America First” agenda. With growing indications that tariff measures will be more targeted framed around national security and trade equity rather than broad-based escalation

Global markets turned their attention to US President Donald Trump’s peace negotiations with Russia, brushing aside hotter-than-expected US inflation data that cast doubt on the timing of Federal Reserve rate cuts. While elevated price pressures weakened the case for immediate monetary easing, investors remain in wait-and-see mode, needing more inflation data to determine a definitive