Global equity markets experienced a second consecutive week of gains, buoyed by signs of easing trade tensions between the U.S. and China. China's consideration to exempt certain U.S. imports from its steep tariffs has raised investor optimism. This sentiment was further supported by U.S. President Donald Trump's softened rhetoric and a 90-day suspension of some levies. Consequently, global equity funds attracted $9.11 billion in inflows during the week, marking a continuation of the positive trend from the previous week.
Asia Pacific Markets
Asian markets showed resilience amid the evolving trade landscape. The prospect of China exempting certain U.S. goods from its 125% tariffs has been a positive development for the region. This move is perceived as a step towards de-escalation in the ongoing trade dispute. Investors responded by channeling $3.65 billion into Asian equity funds, reflecting renewed confidence. However, the broader market sentiment remained cautious, with investors closely monitoring the progress of trade negotiations and potential policy shifts.
The Japanese yen is trying to continue its growth. There may be resistance around the 144.50 mark.
European Markets
European equities advanced, supported by the easing of U.S.-China trade tensions and encouraging corporate earnings. The pan-European STOXX 600 index rose by 0.3%, on track for a weekly gain of approximately 2.8%. Notable performances were seen in Germany's DAX, France's CAC 40, Spain's IBEX, and the UK's FTSE 100, which all posted gains between 0.1% and 0.9%. Sector-wise, defense and construction stocks led the rally.
The euro continues to consolidate in the support area above the level of 1.1270.
The GBP/USD pair has also found support. A further decline is possible when consolidating below the 1.3200 mark.
American Markets
U.S. markets presented a mixed picture. While technology shares led Wall Street higher, concerns lingered over economic indicators. Existing home sales in March fell more than anticipated, weighed down by higher borrowing costs. Additionally, the labor market showed signs of resilience, with a marginal increase in unemployment benefit applications, suggesting continued strength. However, the broader market remained jittery amid conflicting signals on trade tensions and economic data.