Morning Note: A round-up of market news.
Market News
There are signs the next round of President Trump’s tariffs may be more measured than previously suggested. The reciprocal tariffs expected on 2 April will be more targeted than initially planned, US officials said. Some countries will be exempt, while the administration may also hold off on unveiling separate, sectoral-specific levies.
Futures for the S&P 500 and Euro Stoxx 50 rose in response this morning, though a broader gauge of Asian shares were mixed: Nikkei 225 (-0.2%); Hang Seng (+0.9%); Shanghai Composite (+0.2%). Japan’s factory activity fell at the fastest pace in a year in March.
US economic data this week includes PMI’s, Consumer Confidence, and PCE, the Fed’s preferred economic measure. Scott Bessent’s campaign to lower 10-year bond yields (currently 4.29%) has Wall Street strategists revising their forecasts. Gold trades at $3,025 an ounce.
US and Ukrainian officials held talks in Riyadh that Zelenskiy called constructive. A US-Russia meeting is expected today, with the White House is aiming for a truce agreement by 20 April.
Coalition talks in Germany are ongoing today. CDU leader and potential new chancellor Friedrich Merz says nothing has been done yet and there is still way to go. Bund yields ticked up to 2.79%.
The FTSE 100 is currently 0.4% higher at 8,689. Chancellor Reeves will deliver her Spring Statement on Wednesday. Sterling trades at $1.2950 and €1.1940.
Ant has built AI models that cost 20% less using Chinese-made chips with results similar to those from Nvidia. BYD may report 2024 revenue above $100bn, a milestone that would see it top Tesla for the first time since 2018.
Source: Bloomberg