Investors welcome tariff reliefs. Demand for safe assets is decreasing

At the end of Monday, the Dow Jones Index (US30) rose by 0.78%. The S&P 500 Index (US500) was up 0.79%. The Nasdaq Technology Index (US100) jumped by 0.57%. The US stocks rose on Monday after a volatile week as investors welcomed temporary tariff relief. Apple and Dell shares rose by 2.2% and 4%, respectively. Automakers also rose after Trump signaled a potential easing of 25% tariffs on cars, noting that companies need more time to move production to the US. Shares of Ford, GM, Stellantis, and Rivian jumped 3–6%, Tesla rose, and Toyota and Honda added more than 1%. Goldman Sachs added 1.9% after reporting strong quarterly earnings.

Equity markets in Europe were mostly up yesterday. Germany’s DAX (DE40) rose by 2.85%, France’s CAC 40 (FR 40) closed 2.37% higher, Spain’s IBEX 35 (ES35) gained 2.64%, and the UK’s FTSE 100 (UK100) closed 2.14% higher. European stocks rose sharply on Monday after US President Trump announced a temporary pause in imposing retaliatory tariffs on a range of computers and consumer electronics products. Banks and insurance companies rose as Eurozone bonds rose and yield spreads between its members narrowed, with BNP Paribas, UniCredit, Santander, and Munich Re up 6.5–4%.

Swiss producer and import prices fell by 0.1% year-on-year in March 2025, the same pace as the previous month. This marked the 23rd consecutive period of producer price deflation and the softest pace in the sequence.

WTI crude oil prices hovered near $61.5 a barrel on Tuesday amid news of a possible easing of restrictions on Iranian oil and a temporary postponement of tariffs imposed by the US Nuclear talks between the US and Iran, which have been described as “constructive,” have raised hopes of increased Iranian oil exports, putting downward pressure on prices. However, OPEC revised its 2025–26 demand growth projections downward by 100,000 bpd to reflect lower consumption due to US tariffs, although it still expects growth of 1.3 million bpd a year.

Silver prices fell to around $32 an ounce on Monday, breaking a three-day rally, as easing trade tensions reduced demand for safe-haven assets. Market attention is now focused on upcoming trade talks between the US and key partners, including Japan, India, and South Korea. Silver has gained over 8% in the previous three sessions as heightened trade tensions and concerns over the US economic outlook have caused investors to turn to alternative assets.

Asian markets were predominantly up yesterday. Japan’s Nikkei 225 (JP225) gained 1.18%, China’s FTSE China A50 (CHA50) climbed 0.34%, Hong Kong’s Hang Seng (HK50) rose by 2.40%, and Australia’s ASX 200 (AU200) gained 1.34%.

On Tuesday, the Australian dollar climbed as high as USD 0.635, posting a fifth consecutive session of gains as improving global risk appetite fueled the rally. On the domestic front, minutes from the Reserve Bank of Australia’s (RBA) April meeting failed to provide clarity on the timing of the next interest rate change. Policymakers pointed to heightened uncertainty both at home and abroad, making future policy decisions data-driven.

The New Zealand dollar rose to around 0.590 of the US dollar on Tuesday, rising for a sixth straight session and hitting its highest level since early December 2024, as risk sentiment continued to improve. Investors await the release of key economic data this week, including the first-quarter consumer inflation report and the March trade balance, to gain a better understanding of price pressures and overall economic conditions. Following the RBNZ’s recent rate cut to 3.5%, investors are expecting further signs of a slowing economy.