## Global Market Highlights
– Global stocks saw a positive week due to easing US-China trade war concerns.
– Gold experienced a decline as safe haven flows decreased, while Bitcoin saw a significant increase.
– The US Dollar Index is aiming for its first weekly gain since mid-March.
– The upcoming week is packed with high-impact data releases from Asia Pacific, Europe, UK, and the US.
## Week in Review: Trump and Bessent Eye China Deal as Markets Grow Optimistic
Global stocks ended the week on a solid note as early week concerns around Federal Reserve independence and the ongoing US-China trade war dissipated. President Trump and Treasury Secretary Bessent have tempered rhetoric as they eye a deal with China. The comments by both parties went a long way to restoring some confidence in the market and this has seen a notable shift in sentiment.
– Risk assets have risen steadily throughout the week.
– Safe haven flows have taken a knock.
– US equities were largely muted on Friday as market participants wait for more information on the US-China situation.
– Despite mixed messages, market participants should see this as a positive week.
– The overall mood remains cautious as economic outlook worsens and tariffs hurt company earnings.
– The US Dollar Index, Gold, and Bitcoin all saw notable movements throughout the week.
## The Week Ahead: Shortened Trading Week Brings a Host of Data Releases
The upcoming week will be a busy one with a barrage of high-impact data releases scheduled. There are also lingering concerns around tariffs which are unlikely to dissipate soon. President Trump’s expectations of trade deals in the next three to four weeks leave the door open for further twists and turns in the saga.
### Asia Pacific Markets
It will be a busy week for the Asia Pacific region with high-impact data from Japan, China, and Australia all on the agenda.
– Japan’s Bank of Japan is expected to keep rates unchanged despite uncertainty about U.S. trade policies.
– China will release industrial profits data and official and Caixin PMIs to show the impact of tariffs on the manufacturing sector.
– Australia will release Q1 CPI data which is expected to rise due to higher food and electricity costs.
### Europe + UK + US
In developed markets, it will be a huge week for US data. Next week’s U.S. data could raise recession fears.
– Consumer confidence is expected to drop as households worry about rising prices from tariffs.
– Weak first-quarter GDP report is likely.
– April’s job report will show slower hiring due to economic uncertainty.
– Canada’s election has taken an unexpected turn with potential implications for the economy.
This detailed analysis provides insights into the recent market movements, upcoming data releases, and potential economic impacts. It is essential for investors, traders, and individuals to stay informed about these developments to make informed decisions about their financial future.
The Impact of Trade Wars on Canada’s Exports
As the world’s top investment manager, it is crucial to stay informed about the economic landscape, especially when it comes to trade wars and their impact on global markets. One particular area of concern is Canada, as 75% of its exports are destined for the United States.
Trade tensions between the US and other countries, including Canada, have the potential to disrupt supply chains, increase costs for businesses, and ultimately affect the overall economy. Here are some key points to consider:
- Trade wars can lead to higher tariffs on goods exported from Canada to the US, making them more expensive and less competitive in the market.
- Uncertainty around trade agreements can cause fluctuations in currency exchange rates, impacting the value of Canadian exports.
- Investors should pay close attention to any developments in trade negotiations between the US and Canada, as they can have a direct impact on the profitability of Canadian companies.
European Economic Data Releases
Europe also has an eventful week ahead with a series of high-impact data releases. On Wednesday at 09:00am GMT time, Eurozone preliminary numbers for Q1 will be released, followed by Eurozone preliminary numbers on Friday.
Market expectations are for a slight increase in the Year-on-Year (YoY) print to 2.5%, up from the previous 2.4%. This data can provide valuable insights into the health of the European economy and potentially influence market sentiment.
Chart of the Week – US Dollar Index (DXY)
Turning our attention to the US Dollar Index (DXY), this week’s focus remains on the performance of the index. Despite heading towards its first weekly gain since mid-March, the DXY is struggling to surpass the key level of 99.57.
Key levels to watch for in the US Dollar Index include:
- Immediate resistance at 100.00, 100.61, and 101.18.
- Support levels at 99.00, 98.30, and 97.70.
US Dollar Index (DXY) Daily Chart – March 28, 2025
Source: TradingView.Com
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By analyzing the potential impact of trade wars on Canada’s exports, understanding the significance of European economic data releases, and monitoring the performance of the US Dollar Index, investors can make more informed decisions about their portfolios. It is essential to stay informed and adapt to changing market conditions to navigate the complexities of the global economy successfully.