📆 Monday, March 24
► European equities opened higher as investors welcomed signs that U.S. tariffs set for April 2 may be narrower in scope. The Stoxx 600 rose +0.2%, led by mining stocks after copper prices jumped but lost much of even stronger gains. Germany’s DAX gained +0.2% following strong manufacturing PMI data (highest in 3 years), while France’s CAC 40 is now flat after a positive start into this week's session and despite private sector contraction. Flash PMIs out of France, Germany and UK were mixed, with Germany showing improvement in manufacturing and France remaining in contraction (but strong services data – similar to what UK PMI's show). Yields edged up, and traders monitored further tariff developments and geopolitical risks.
► U.S. stock futures jumped early Monday with S&P 500 +1.1%, and Nasdaq +1.5%, building on gains of the previous week and the surprisingly strong Friday finish (that we perfectly traded – congrats to the community). Optimism was fueled by expectations that Trump’s (“reciprocal”) tariffs may be more targeted, with some countries or sectors possibly exempt. The 10-year US treasury yield climbed to 4.30% (+5 bps for US 10-Y), while the USD was little changed. Traders now eye flash U.S. PMI data and look ahead to the PCE inflation report on March 28, a key gauge for Fed policy. Friday’s session saw strong recoveries in megacaps (Nvidia, Alphabet, Apple), with sentiment improving on hopes for Fed rate cuts and reduced geopolitical escalation.
► Asian stocks were mixed as investors remained cautious with less optimism that Trump's tariff exemptions would include Chinese imports. Japan’s Nikkei 225 declined -0.15% dragged by weak PMI data . China’s CSI 300 and Shenzhen Component rose slightly despite trade concerns resurfacing. Hong Kong's Hang Seng Index also rose by 0.95%. Australia’s equities traded flat despite strong PMI data, while the AUD rebounded as attention turned to Tuesday’s budget release and as risk sentiment improved.
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