Summary:
Global equity markets and U.S. Treasury yields rose on Tuesday ahead of the Fed's expected interest rate hike and as markets awaited a stream of quarterly results from corporate heavyweights.
Global equity markets and U.S. Treasury yields rose on Tuesday ahead of the Fed's expected interest rate hike and as markets awaited a stream of quarterly results from corporate heavyweights.
The U.S. dollar weakened, losing earlier session gains. Most market participants expect the Fed to deliver a 25 basis-point rate hike on Wednesday.
Oil prices rose to three-month highs as signs of tighter supplies and pledges by Chinese authorities lifted sentiment. Gold prices strengthened as the dollar fell, increasing 0.5% to $1,964.34.
Commodities
China’s top leaders pledged to step up policy support for the economy, focusing on boosting domestic demand.
The crude benchmarks have already clinched four weekly gains in a row, with supplies expected to tighten due to output cuts from the OPEC+.
Earlier-loading Brent contracts are selling above later loadings, a price structure known as backwardation indicating traders see tight supply, with the six-month spread near a 2.5-month high.
Forex
Signs of an extremely resilient U.S. economy helped the dollar recover from a recent 15-month low, as well as persistent weakness in Europe.
Still the survey from the Conference Board offered mixed signals. Consumers remain fearful of a recession over the next year following hefty interest-rate hikes from the Fed.
The euro fell for a fifth successive session as evidence of a slowdown in Europe builds after a recent survey showed demand for loans in the euro zone hitting a record low in the second quarter.
Trump's policies led to US stock outflows, and the dollar's decline widened the asset gap. Emerging markets may attract capital inflows.
2025-04-30
Private sector added 155,000 jobs in March, with wages up 4.6%, easing concerns about a labor market and economic slowdown.
2025-04-30
Inflation did not slow down in February, with core PCE up 2.8% year-on-year. Goods prices rose 0.2%, led by entertainment goods and automobile prices.
2025-04-30
