News Digest:

Global financial markets showed signs of cautious optimism on Tuesday as the U.S. administration signaled plans to ease some automotive tariffs, offering temporary relief to jittery investors. S&P 500 futures inched up by 0.1%, buoyed by the news that President Trump’s team will soften duties on foreign auto parts used in U.S.-made vehicles. This move comes amid mounting pressure from automakers concerned about compounding tariffs impacting costs and supply chains.

The U.S. dollar stabilized, posting modest gains, particularly against the Canadian dollar, following Canada’s election results, where Prime Minister Mark Carney’s Liberals won a minority government. Currency trading in Asia was thin due to a public holiday in Japan, while European markets opened slightly higher.

Despite the tariff reprieve, underlying concerns about U.S.-China trade tensions persist. Treasury Secretary Scott Bessent warned that without de-escalation from China, prolonged supply chain disruptions could damage global growth. Analysts noted a steep 42% drop in Chinese shipments to the U.S. over the past 10 days, signaling real-world economic contraction ahead.

Meanwhile, gold prices dipped by 1% to $3,314 an ounce, reflecting a pullback in safe-haven demand amid hopes of improving trade talks. Brent crude also declined 1% to $65.21 per barrel. Nonetheless, analysts like IG’s Yeap Jun Rong suggest the broader upward trend in gold could persist, fueled by long-term demand from central banks and inflationary pressures.

Investors now turn their focus to a packed week of economic data and corporate earnings. Major reports due include U.S. job openings, the Fed’s preferred inflation measure (PCE), and April’s non-farm payrolls. Earnings results from companies like General Motors, Visa, Coca-Cola, and tech giants Apple, Microsoft, and Amazon will offer further insight into corporate resilience.

While market sentiment has improved modestly, analysts remain wary of deeper macroeconomic risks, especially if trade tensions flare again or inflation remains stubborn. For now, the easing of automotive tariffs has offered a brief, welcome pause in market volatility.

End Notes

Source: https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-29/

Source: https://www.reuters.com/markets/commodities/gold-declines-trade-war-concerns-ease-us-data-focus-2025-04-29/