Financial markets still under pressure as US tariff deadline looms
Financial markets seem to be giving up any hope of an early resolution on tariffs before the April 2nd deadline. The week is expected to open on the heels of Friday’s close, with strong risk-off signals and a delicate stance for US equities. Bonds and commodities are mixed.
Friday and this morning’s early warnings seemed to reignite investors’ risk-off sentiment. Our intermarket dashboards show the recovery in gold and the re-acceleration of the VIX against the S&P500. As for the US equity market, we see a new breakout from the 200-day average and the arrival at a delicate resistance zone for the continuation of the long bullish trend. Bonds were in line, while commodities rose in the short term, but the move did not seem very robust.
On the macro front, the day will be marked by preliminary German inflation data for March, Chinese PMIs and Japanese industrial production.
Our forecast analysis suggests a wait-and-see attitude on the equity front, with no positive signals in any of the equity markets analysed. On the bond front, there is uncertainty over US yields, while positive signals remain for European corporates. In commodities, the best signals continue to come from the metals. On the currency front, the dollar is in a wait-and-see mode. Finally, volatility is expected to increase.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 31 March 2025 - 7:31 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
