The focus of investors’ attention remains on the US tariff policy

As of Wednesday, the Dow Jones Index (US30) rose by 1.07%. The S&P 500 Index (US500) gained 1.67%. The Nasdaq Technology Index (US100) was up 2.28%. Easing trade tensions between the US and China and President Trump’s assurances that he will not remove Fed Chairman Jerome Powell continue to boost sentiment.

The first-quarter earnings reporting season is in full swing. According to data compiled by Bloomberg Intelligence, market consensus expects first-quarter annualized first-quarter earnings growth of 6.7% for S&P 500 stocks, down from expectations of 11.1% in early November. Boeing (BA) rose more than 6% and topped the Dow Jones Industrials after reporting first-quarter revenue of $19.50 billion, better than the consensus expectations of $19.37 billion. Intel (INTC) closed higher by more than 6% after Bloomberg reported that the company plans to cut more than 20% of its workforce to streamline operations. Tesla (TSLA) shares rose by 5.4% after CEO Elon Musk announced that he will significantly reduce his involvement in the government to focus on running his companies.

The Canadian dollar weakened to US$1.39, down from a six-month high of US$1.38 on April 22, as it came under pressure from a recovering US dollar. Meanwhile, the IMF’s downgrade of Canada’s 2025 GDP expectations to 1.4% has renewed concerns about domestic demand, limiting Lonnie’s upside potential. And the Bank of Canada’s decision to keep the benchmark rate at 2.75% reflects caution amid the unclear outlook for US tariffs, which could either support sustainable growth with inflation around 2% or, if tariffs intensify, create the risk of recession and higher inflation.

Equity markets in Europe were mostly up on Wednesday. Germany’s DAX (DE40) rose by 3.14%, France’s CAC 40 (FR40) closed 2.13% higher, Spain’s IBEX 35 (ES35) gained 1.52%, and the UK’s FTSE 100 (UK100) closed positive 0.90%. European stocks closed sharply higher on Wednesday, following strong momentum in stock markets around the world after the US presidential administration signaled that tariffs against China are likely to be reduced or eliminated soon.

WTI crude prices fell below $62.6 a barrel on Wednesday, down 9% since early April, amid the likelihood that OPEC+ will continue to increase supply in the coming months. Key OPEC+ member Kazakhstan has said it will put national interests ahead of OPEC+ rules, signaling increased production for a key pool of consumers and raising tensions between cartel members as many countries fight to keep production below their quotas. That prompted individual cartel members to call for another production increase in June, adding to surprise plans to raise output three times faster than expected in May.

Asian markets were predominantly rising yesterday. Japan’s Nikkei 225 (JP225) gained 1.89% yesterday, China’s FTSE China A50 (CHA50) climbed 0.02%, Hong Kong’s Hang Seng (HK50) added 2.37%, and Australia’s ASX 200 (AU200) closed positive 1.33%.

Consumer sentiment in New Zealand rose to a 4-month high. The ANZ-Roy Morgan Consumer Confidence Index rose by 5 points to 98.3 in April, the highest reading since December, reinforcing a recovery that had begun to falter. The rise in the index was broad-based, with the current Conditions Index and future Conditions Index rising by 6 and 4 points, respectively.