Monday Afternoon Coffee - Markets Update - 14 Apr 2025 - Markets Mixed as Tariff Confusion Weighs on Sentiment; Dollar and Oil Dip, Tech Gains

Markets Update: U.S. stocks edged up on Monday as investors processed mixed messages regarding trade policy, while both the dollar and oil prices declined due to renewed uncertainty.

Global Markets Roundup: 14 Apr 2025

The White House stated that smartphones and computers will be exempt from tariffs; however, President Donald Trump insisted that tariffs remain a possibility.

The Dow Jones Industrial Average rose 0.4%, the S&P 500 gained 0.5%, and the Nasdaq Composite advanced 0.3%, lifted by tech stocks—most notably Apple, which jumped 2.3%. Despite last week’s 5.7% surge, the S&P remains more than 5% below its pre-tariff announcement level in early April.

The temporary exemption of 20 product categories—covering 23% of U.S. imports from China—offered limited relief to the bond market and the greenback. Markets remained jittery as policy reversals continued to cloud visibility. Treasury yields eased, and the dollar index dipped 0.2%, extending last week’s retreat.

Global markets showed cautious optimism. Europe's STOXX 600 increased by 2.7%, recovering from a 2% drop last week, while MSCI's broad index of Asia-Pacific shares outside Japan rose by 1.6% following a significant selloff the week before. The gains were primarily driven by tech and supply chain stocks, especially those supplying Apple.

Earnings season added momentum. Goldman Sachs reported a 15% rise in Q1 profit, driven by strong equity trading, pushing its shares up 2%. Reports from Bank of America and Citigroup are expected later this week. Investors are also watching for TSMC’s results as Trump’s administration eyes an inquiry into the global semiconductor supply chain.

Economic indicators showed Chinese exports surged 12.4% in March, likely as firms frontloaded shipments ahead of potential tariffs. Markets await U.S. retail sales and China’s GDP later this week, while Fed Chair Jerome Powell is due to speak Wednesday, expected to address rate cut prospects and bond market stress.

Treasury Market Remains Fragile

U.S. Treasury yields pulled back slightly, with the 10-year yield falling 7 basis points to 4.421%. However, this followed a dramatic 50-basis-point jump last week—the largest in decades—dampening enthusiasm.

The dollar continued to soften across the board, with investors pulling capital from U.S. assets amid concerns over waning growth exceptionalism and erratic policy.

In currency markets, the dollar dropped 0.3% against the yen, trading at USDJPY 143.08 after touching a six-month low of 142.05 last week. The euro EURUSD hovered around $1.135, not far from its three-year high of $1.1474.

The European Central Bank is widely expected to cut rates by 25 basis points to 2.25% at its meeting Thursday.

Japanese officials, preparing for trade talks with Washington, are bracing for U.S. pressure on currency alignment—though recent dollar weakness may ease that path.

Gold Retreats, Oil Choppy Amid Tariff Jitters

Gold prices dipped 1% to $3,206 an ounce, easing from Friday’s record high of $3,245, though overall market uncertainty continues to support the metal.

Oil markets remained volatile. U.S. crude fell 0.85% to $60.98 a barrel, while Brent dropped 0.62% to $64.36. A sharp rise in China’s crude imports in March competed with fears that U.S.-China tensions could dampen global demand.

Agricultural commodities slipped: CBOT May wheat fell 8-1/4 cents to $5.47-1/2 a bushel, May corn declined 4-1/2 cents to $4.85-3/4, and May soybeans edged down 1/4 cent to $10.42-1/2.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team