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Markets Update: Suspension of Canada tariffs announced. New tariffs on China implemented; Beijing responds with countermeasures. JOLTS data reveals unexpected decline in U.S. job openings. Gold reaches an all-time high.
Global Markets Roundup: 4 February 2025
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Equity Markets
U.S. stocks showed resilience, while gold prices hit record highs on Tuesday amid ongoing global trade uncertainties. The announcement of a one-month suspension of President Trump's 25% tariffs on Canada and Mexico contributed to the market's recovery.
Despite this, the implementation of a 10% tariff on Chinese goods and Beijing's retaliatory measures, including tariffs on U.S. energy exports, continued to drive investors towards safe-haven assets like gold. Additionally, China cautioned American companies, including Alphabet, of potential sanctions. Economic data revealed a decline in U.S. job openings and factory orders for December, dampening economic expectations. However, this was not sufficient to prompt the Federal Reserve to alter its current interest rate policy. The Dow Jones Industrial Average rose by 59.74 points, or 0.13%, reaching 44,481.65. The S&P 500 increased by 40.42 points, or 0.67%, to 6,034.94, while the Nasdaq Composite advanced by 247.84 points, or 1.28%, to 19,639.79.
European shares experienced mixed results, with financial sector pressures counterbalanced by reduced concerns over a global trade war, resulting in the STOXX Europe 600 turning positive. MSCI's global stock index rose by 7.68 points, or 0.89%, to 867.01, and the STOXX 600 increased by 0.27%. The FTSEurofirst 300 index ascended by 5.11 points, or 0.24%. Emerging market stocks climbed by 21.49 points, or 2.00%, to 1,095.21, while the MSCI Asia-Pacific ex-Japan index closed up by 1.97% at 575.53. Japan's Nikkei index rose by 278.28 points, or 0.72%, to 38,798.37. U.S. Treasury yields dipped slightly following the JOLTS data. The yield on the benchmark 10-year note decreased to 4.539% from 4.543%, and the 2-year note yield fell to 4.228% from 4.265%. However, the 30-year bond yield edged up to 4.7806% from 4.771%.
Currency Markets
The dollar index DXY, which measures the performance of the U.S. dollar against a basket of major currencies including the yen and the euro, declined by 0.53% to 108.00. Concurrently, the euro EURUSD appreciated by 0.36% to $1.0381. The Mexican peso MXN weakened by 0.49% against the dollar, reaching 20.45. Conversely, the Canadian dollar USDCAD strengthened by 0.75% against the U.S. dollar, trading at C$1.43 per dollar. In relation to the Japanese yen USDJPY, the dollar experienced a slight depreciation of 0.09%, settling at 154.61. In the cryptocurrency market, bitcoin BTCUSD decreased by 2.49%, reaching $99,332.53, while Ethereum ETH recorded a decline of 1.23%, trading at $2,780.54.
Commodities
In the commodities market, Crude oil prices declined initially before recovering some losses as Beijing responded to the newly imposed tariffs with retaliatory measures of its own. U.S. crude (CL1!) decreased by 0.48% to $72.81 per barrel, whereas Brent crude (BRN1!) increased by 0.34% to $76.21 per barrel. Gold prices continued their upward trend, reaching new highs as investors sought refuge in the safe-haven asset. Spot gold (GOLD) rose by 0.99% to $2,841.27 per ounce, while U.S. gold futures (GCc1) increased by 0.35% to $2,843.70 per ounce. In the soft commodities market, March ICE NY cocoa (CCH25) declined by 101 points (-0.92%), while March ICE London cocoa #7 (CAH25) fell by 94 points (-1.08%). Corn futures for March delivery rose by 7.25 cents, reaching $4.96 per bushel by 12:35 p.m. CST (1835 GMT). Wheat prices increased by 10.5 cents to $5.77, and soybean futures advanced by 16.5 cents to settle at $10.74. Notably, wheat futures attained their highest value since November, while corn futures remain near the peak recorded in October 2023. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!
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