Thursday Afternoon Coffee - Markets Update - 17 Apr 2025 - Markets Steady as U.S. - Japan Trade Talks Support Sentiment; ECB Cuts Rates, Gold Eases From Highs

Markets Update: As markets head into the Good Friday holiday with lower trading volumes, investors remain cautious. Trade developments, central bank rhetoric, and corporate earnings will shape sentiment into next week.

Global Markets Roundup: 17 Apr 2025

U.S. stocks gained some stability on Thursday as investors reacted positively to indications of progress in U.S.-Japan trade discussions, despite Fed Chair Jerome Powell's cautious stance on rate cuts. The dollar appreciated, Treasury yields increased, gold retreated from record highs, and oil prices soared.

Markets began to stabilize following a turbulent week driven by rate uncertainty and geopolitical tensions. An unexpected appearance by President Donald Trump at the Washington trade talks boosted hopes that tariff pressures might lessen in the short term, although no specific details were revealed.

Stocks Mixed as Earnings and Trade Drive Diverging Moves

Equities saw uneven performance across indexes. The S&P 500 rose 0.5%, buoyed by strong earnings from Taiwan Semiconductor Manufacturing Company (TSMC), while the tech-heavy Nasdaq Composite was little changed. The Dow Jones Industrial Average dropped 1%, weighed down by a 22% plunge in UnitedHealth shares following a disappointing earnings report and lowered guidance.

Dow Jones Industrial Average: -1.00%S&P 500: +0.50%; Nasdaq Composite: +0.00%

Alphabet (GOOGL) fell 1.4% after a federal judge ruled it illegally dominated two digital ad tech markets.

Treasury Yields Rise; Powell Signals Patience

U.S. 10-year Treasury yields climbed 5.8 basis points to 4.337%, a recovery from last week’s panic-driven peak of 4.59%. Powell emphasized the need for more economic data before adjusting rates and warned that Trump’s tariff strategy could push inflation and employment further from the Fed’s targets. Tensions escalated further when Trump stated Powell’s removal "cannot come fast enough," intensifying concerns over Fed independence.

ECB Cuts Rates, Euro Slides

The European Central Bank cut rates by 25 basis points as expected, citing weakened business and consumer confidence amid trade volatility. The euro dropped 0.41% to $1.1351. Danske Bank’s Kirstine Kundby-Mielsen described the ECB’s tone as dovish, shifting its focus to downside growth risks.

Euro EURUSD: -0.41% to $1.1351
Yen USDJPY: +0.51% to 142.54
Swiss Franc (USDCHF): +0.97% to 0.821

The dollar index DXY rebounded slightly from recent lows, supported by higher yields and a cooling of panic.

Gold Retreats, Oil Surges on Supply Concerns

Gold prices pulled back from record highs, slipping 0.8% to $3,315/oz as risk appetite improved and dollar strength returned. Oil markets rallied, with Brent crude jumping 3.2% to $68 and WTI crude closing at $64.68, up $2.21, on expectations of tighter global supply.

Gold: -0.8% to $3,315/oz
WTI Crude (CL1!): +$2.21 to $64.68/barrel
Brent Crude (BRN1!): +3.2% to $68.00/barrel

Cocoa Leads Commodity Gains

Commodities were mostly higher. Cocoa prices soared over 4% in London and 3.3% in New York on signs of strong global demand. Cotton futures rose mid-session, and wheat climbed 4.5 cents to $5.52/bushel. Corn was marginally higher, while soybeans edged down.

Cocoa (ICE NY May): +3.32%
Cocoa (ICE London May): +4.13%
Wheat (ZW1!): +0.82% to $5.52/bushel
Corn (ZC1!): +0.05% to $4.84½/bushel
Soybeans (ZS1!): -0.41% to $10.34½/bushel

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