Asian markets started the week calmly, with investors waiting for updates on US trade talks and possible new stimulus measures from China before making big moves.
A regional index gained 0.6%, while S&P 500 futures dropped 0.6%, hinting that the recent four-day rally in US markets might be slowing down. Gold fell by as much as 1.6% as traders sold off, feeling its recent surge was overdone. Meanwhile, Treasuries and the Dollar stayed steady, but cryptocurrency prices declined.
Investors are watching for signs of progress in US trade discussions, especially after Trump indicated he’s unlikely to delay his planned tariffs again. Export-reliant Asian economies, which have faced tough US tariffs, seem to be negotiating more effectively than their Western counterparts.
Chinese authorities continue to state that there have been no calls with the US over a trade deal. Chinese officials said they plan to provide more support for jobs and the economy. They are confident the government will hit its economic goals this year. The PBOC also promised to keep enough money flowing in the market and will lower banks' reserve requirements and interest rates when needed.
The dollar stayed stable on Monday as investors anxiously awaited updates on U.S. trade policy and a busy week of economic reports that might show the impact of Trump's trade war.
For a full breakdown on the week ahead read Markets weekly outlook - Data dump ahead as tariff concerns linger
Currently at 143.69/yen and 1.1325/euro, the dollar has steadied but remains on track for its biggest monthly drop in over two years due to shaken confidence in U.S. assets under Trump’s policies.
Currency Strength Chart, Strongest - Weakest: USD, JPY, GBP, AUD, CAD, EUR, NZD, CHF
Source: FinancialJuice
Oil prices rose slightly this morning as the market stayed cautious about ongoing U.S.-China trade talks.
Gold prices slid this morning surrendering the $3300/oz handle to trade at $3285/oz at the time of writing. Risks for Gold have shifted to the downside as optimism around a trade deal remains.
Market participants are starting to believe that the worst may be behind us where tariffs are concerned and this will make it difficult for Gold bulls in the short- term.
Economic data releases
From a data standpoint, it’s a bit of a quiet start to the week as traders brace for a barrage of data releases starting Wednesday. In the interim overall sentiment will be the primary market driver.
Chart of the day - DAX
From a technical standpoint, the DAX has continued its advance in line with other risk assets.
The index is currently testing a key level of resistance at 22405 with a daily candle close above likely opening up further upside.
Immediate resistance rests at 22620 before the 22800 and 23200 handle come into focus.
For now immediate support is provided by the 50-day MA at 22282 before the 22000 and 21600 handles come into focus.
DAX Daily Chart, April 28, 2025
Source: TradingView.com (click to enlarge)
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