Market Highlights 💡 - 22 April 2025

U.S. stock markets decline as Trump renews criticism of Powell; Asian markets mixed amid ongoing trade uncertainty

🇺🇸 S&P 500 Index: -2.35% 📉

🇺🇸 Nasdaq Index: -2.55% 📉

🇪🇺 STOXX 600 Index: 0.00% (Market closed)

🇯🇵 Nikkei 225 Index: -1.30% 📉

🇭🇰 Hang Seng Index: 0.00% (Market closed)

🇨🇳 CSI 300 Index: 0.33% 📈

🇸🇬 Straits Times Index: 1.05% 📈

On Monday, U.S. stocks broadly declined, with the S&P 500 and Nasdaq Composite falling by -2.4% and -2.6% respectively. President Trump once again escalated his criticism of Federal Reserve Chair Powell, raising investor concerns over the Fed's independence.

Asian markets showed mixed performance. The CSI 300 rose by 0.3%, boosted by expectations that Beijing may introduce more stimulus measures to offset the impact of the U.S.-China trade war. Meanwhile, the Nikkei 225 fell -1.3%, primarily due to the yen strengthening to its highest level since last September, weighing on export-related stocks.

China held its Loan Prime Rate (LPR) steady for the sixth consecutive month, in line with market expectations. Stronger-than-expected Q1 economic growth reduced expectations for imminent policy easing.

Upcoming Events:

Wednesday: Key data releases include Malaysia's inflation rate (MoM and YoY), preliminary HCOB manufacturing and services PMIs for Europe, and U.S. preliminary manufacturing and services PMIs.

Thursday: The U.S. will release the latest initial jobless claims.

Weekend: The U.S. will report the final reading of the University of Michigan Consumer Sentiment Index.

Today's Key Developments:

1. China accused the U.S. of abusing tariff policies and warned other countries against entering broader economic agreements that could harm Beijing's interests, further escalating tensions between the world's two largest economies.

2. Amid growing fears of a U.S. economic slowdown, investors are shifting funds from U.S. Treasuries to other safe-haven assets. Japan's ultra-long government bonds saw record foreign demand last month, highlighting the market's appetite for alternative safe assets.

Safe Haven Asset

3. President Trump again criticized Fed Chair Powell, warning that a failure to cut rates soon could risk a downturn for the U.S. economy, further pressuring the direction of monetary policy.

Trump VS Powell

4. U.S. Vice President J.D. Vance began a four-day visit to India and met with Prime Minister Modi, aiming to strengthen bilateral ties with the Trump administration and push for a trade deal to avoid hefty U.S. tariffs.

JD Vance

5. President Trump met at the White House with the CEOs of Walmart $Wal-Mart(WMT)$  , Target $Target(TGT)$  , and Home Depot $Home Depot(HD)$   to discuss the potential impact of his broad tariff proposals on import-dependent retail businesses.

Key Takeaway:

Businesses remain uncertain about how to respond, mostly adopting a wait-and-see approach as they await final U.S. tariff decisions. Frustratingly, the situation appears to be “self-inflicted,” driven by the U.S. government's own policy choices.

@Daily_Discussion  @Tiger_comments  @TigerStars