Asia Markets Mixed, Europe Gains On Tariff Optimism; Gold Edges Higher

On Monday, U.S. markets experienced positive momentum, with major indices closing higher. The S&P 500 reached a multi-week high, fueled primarily by the rise of technology stocks such as Tesla and Nvidia. This surge occurred amidst growing expectations that the Trump administration might adopt a softer approach toward tariffs. Despite the positive rebound, there remain significant concerns regarding the lasting effects of tariffs on economic growth and corporate profits, as many firms continue to lower their earnings outlooks.

Recent economic indicators showed a noteworthy rise in the Chicago Fed index, which climbed to 0.18 in February from -0.08 in January. On the services front, the PMI rose to 54.3 in March compared to 51 in February, while the Manufacturing PMI saw a decline to 49.8, down from 52.7.

Throughout the S&P 500, most sectors closed higher, particularly in consumer discretionary thanks to Tesla's strong performance, along with advances in communication services and industrial sectors. Utilities were the only sector that registered a slight decrease.

The Dow Jones Industrial Average increased by 1.42% to 42,583.32, the S&P 500 was up 1.76% to 5,767.57, while the Nasdaq Composite climbed 2.27% to 18,188.59.

Asia Markets Today

• Japan’s Nikkei 225 closed higher by 0.52% at 37,805.00, led by strong performances in the Power, Rubber and Chemical, Petroleum & Plastic sectors.
• Australia’s S&P/ASX 200 saw a modest rise of 0.07%, closing at 7,942.50, with gains from IT, Healthcare, and Industrials.
• The Nifty 50 in India rose by 0.07% to 23,674.95, while the broader Nifty 500 fell by 0.46% to 21,440.35.
• China’s Shanghai Composite ended flat at 3,369.98, while the Shanghai Shenzhen CSI 300 dipped 0.06% to close at 3,932.30.
• Hong Kong’s Hang Seng index decreased by 2.35%, finishing at 23,344.25.

European Markets Update

• As of 05:45 AM ET, the European STOXX 50 was up 0.66%.
• Germany's DAX experienced a gain of 0.53%.
• France’s CAC index rose by 0.76%.
• The U.K.’s FTSE 100 traded higher by 0.42%.
• European stock markets inched up as investors absorbed mixed messages regarding U.S. tariffs, balancing optimism about limited trade measures against new tariff threats.

Commodities Update

• Crude Oil WTI was trading 0.64% higher at $69.55 per barrel, while Brent crude rose 0.58% to $72.79 per barrel.
• The continued rise in oil prices, marking the fifth consecutive day of increases, is attributed to fears of tighter global supplies following U.S. tariffs on Venezuelan crude buyers. Sanctions imposed on Venezuela and Iran, coupled with uncertainty around broader tariffs, are adding to the market's volatility.
• Natural Gas prices gained 0.68%, reaching $3.981.
• In precious metals, Gold was trading up by 0.31% at $3,053.61, Silver rose by 0.85% to $33.737, and Copper saw an increase of 0.84% to $5.1360.

U.S. Futures and Forex Update

As of 05:45 AM ET, Dow futures were down 0.10%, S&P 500 futures decreased by 0.11%, and Nasdaq 100 futures slipped by 0.23%.

The U.S. Dollar Index also fell by 0.05% to 104.27, with USD/JPY down 0.07% to 150.55, and USD/AUD declining by 0.19% to 1.5878. Despite this decline, the dollar touched a near three-week high recently, supported by strong U.S. services data and the hope for more targeted tariff measures.

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