The week began with concerns about a potential U.S. government shutdown and uncertainty surrounding the U.S. Federal Reserve (Fed). However, strong U.S. data and optimism from Wall Street provided relief for traders. Despite this, cryptocurrencies and the U.S. Dollar slid, while Gold and equities hit record highs.
Early Monday, market sentiment is challenged by renewed doubts over the Federal Reserve’s future rate cuts, trade discussions between U.S. President Donald Trump and Chinese President Xi Jinping, upbeat U.S. economic data, and mixed geopolitical news.
Risk appetite improved on Thursday, carrying modest optimism into Friday as traders responded positively to strong U.S. employment and manufacturing data, as well as the Trump administration's plans to boost U.S. manufacturing.
On Wednesday, the United States Federal Reserve’s (Fed) expected 0.25% interest rate cut initially sparked optimism, with the “dot plot” suggesting two more rate cuts in 2025.
Market sentiment follows the usual inaction pattern ahead of the all-important Federal Open Market Committee (FOMC) monetary policy announcements, especially after the recent U.S. data came in positive.
Risk sentiment remains slightly positive as weaker U.S. data boosts expectations for a dovish Federal Reserve stance. U.S. equities reached record highs, while fears of a U.S.-China trade war eased.
Markets turn cautious as big central bank week begins Global financial markets began the week on a cautious note after last week’s upbeat performance, when strong U.S. data raised expectations for consecutive interest rate cuts from the Federal Reserve (Fed).
Market sentiment remains slightly positive early Friday, supported by strong U.S. equity performance and dovish Federal Reserve (Fed) bets, despite hotter inflation data and renewed fears of a trade war.
Early Thursday, markets displayed typical caution ahead of key economic data, except in Japan, where the Nikkei surged to a record high, despite persistent inflation, tracing strong overnight gains in the S&P 500 and Nasdaq.
Markets stayed modestly positive, even as geopolitical and trade tensions rose, supported by dovish Federal Reserve (Fed) bets after the U.S. Bureau of Labor Statistics (BLS) reported a record revision to U.S. Nonfarm Payrolls (NFP).
Market sentiment stayed modestly positive early Tuesday, as traders remained optimistic after Friday’s weak U.S. jobs report boosted expectations of Federal Reserve (Fed) rate cuts.
Asia-Pacific markets showed cautious optimism early Monday, continuing the positive momentum from Friday's U.S. job data.
