Daily Fundamental Analysis: US Indices Rise as the Dollar Regains Strength
Key Takeaways:
- U.S. Stock Markets close higher on Tuesday on hopes of trade deals between the U.S. and its trader partners
- Australian CPI data come slightly higher than expected with yearly inflation at 2.4%
- Eyes on the PCE numbers from the U.S. later today
European markets expect a quiet open Wednesday ahead of earnings reports and eurozone GDP data. The Stoxx 600 and FTSE 100 extended their winning streaks, with the latter marking its best run since 2017.
Major companies reporting include Airbus, Mercedes, TotalEnergies, and Barclays.
U.S. tariffs remain a key concern in earnings reports, though banks continue to exceed expectations, with UBS posting profits of $1.692 billion.
Global markets focus on U.S. trade as President Donald Trump reduced automotive tariffs while maintaining the 25% vehicle import rate.
President Donald Trump expressed optimism about India trade talks, while Treasury Secretary Bessent noted progress with Japan and South Korea.
Asian markets showed mixed performance today, with Japan’s Nikkei 225 up 0.14%, South Korea’s Kospi down 0.2%, and Hong Kong’s Hang Seng falling 0.53%.
The Bank of Japan meets Wednesday, with rates expected to stay at 0.5%. Australia reported Q1 inflation at 2.4%, while China’s manufacturing hit a two-year low amid trade tensions.
U.S. futures showed minimal movement in early trading, with the Dow down 0.01%, S&P 500 down 0.2%, and Nasdaq down 0.4%. The Dow closed up 300 points at 40,527, while the S&P 500 was up 0.58% to 5,560 and the Nasdaq Composite rose 0.55% to 17,461, marking extended winning streaks for major indexes.
Markets were mostly up on Tuesday after Commerce Secretary Lutnick hinted at an upcoming trade deal, with Trump later citing positive progress in India negotiations.
The Dow and S&P 500 extended their winning streaks to six days, while the Nasdaq rose 0.55%.
Wednesday brings crucial economic indicators including Q1 GDP, projected at 0.4% growth, and March PCE inflation data, expected at 2.2%. Meta Platforms and Microsoft earnings are also due.
