Francisco Bruno Moreira Bras Gomes
Weekly Market Recap: Navigating Trade Tensions and Economic Signals ๐Ÿ‡บ๐Ÿ‡ธ ๐—จ๐—ป๐—ถ๐˜๐—ฒ๐—ฑ ๐—ฆ๐˜๐—ฎ๐˜๐—ฒ๐˜€: Market Gains Amid Mixed Economic Indicators After the sharp decline in begining of march, U.S. equities experienced a rebound last week, buoyed by easing trade tensions between the U.S. and China and positive corporate earnings reports. The Nasdaq Composite led the gains, with small- and mid-cap stocks also showing strength. However, economic data presented a mixed picture:โ€‹ ๐˜ฝ๐™ช๐™จ๐™ž๐™ฃ๐™š๐™จ๐™จ ๐˜ผ๐™˜๐™ฉ๐™ž๐™ซ๐™ž๐™ฉ๐™ฎ: The S&P Global Flash PMI indicated the slowest business activity growth in 16 months, with services sector growth decelerating sharply.โ€‹ ๐˜ฟ๐™ช๐™ง๐™–๐™—๐™ก๐™š ๐™‚๐™ค๐™ค๐™™๐™จ ๐™Š๐™ง๐™™๐™š๐™ง๐™จ: March saw a 9.2% increase, primarily driven by a surge in transportation equipment orders, notably commercial aircraft.โ€‹ ๐™ƒ๐™ค๐™ช๐™จ๐™ž๐™ฃ๐™œ ๐™ˆ๐™–๐™ง๐™ ๐™š๐™ฉ: Existing home sales dropped 5.9% in March, marking the steepest monthly decline since November 2022, attributed to high mortgage rates and affordability challenges.โ€‹ ๐˜พ๐™ค๐™ฃ๐™จ๐™ช๐™ข๐™š๐™ง ๐™Ž๐™š๐™ฃ๐™ฉ๐™ž๐™ข๐™š๐™ฃ๐™ฉ: The University of Michigan's Index of Consumer Sentiment fell for the fourth consecutive month, with inflation expectations rising to 6.5%, the highest since 1981.โ€‹ ๐Ÿ‡ช๐Ÿ‡บ ๐—˜๐˜‚๐—ฟ๐—ผ๐—ฝ๐—ฒ: Stock Markets Rally on Trade Optimism European markets posted solid gains, with the STOXX Europe 600 Index up 2.77%. Germany's DAX rose 4.89%, France's CAC 40 gained 3.44%, and Italy's FTSE MIB increased by 3.80%. The UKโ€™s FTSE 100 added 1.69%. The rally was fueled by positive developments in U.S.-China trade relations and reassurances from the European Central Bank about the unlikelihood of a eurozone recession.โ€‹ ๐Ÿ‡ฏ๐Ÿ‡ต ๐—๐—ฎ๐—ฝ๐—ฎ๐—ป: Economic Relief Measures and Market Response Japan's Nikkei 225 Index advanced by 2.8%, supported by signs of easing global trade tensions. The government announced emergency economic relief measures, including support for corporate financing and initiatives to stimulate consumption, aiming to mitigate the impact of higher U.S. tariffs. The yen weakened slightly against the U.S. dollar, and the 10-year government bond yield rose to 1.34%. ๐‘ฏ๐’‚๐’‘๐’‘๐’š ๐’Š๐’๐’—๐’†๐’”๐’•๐’Š๐’๐’ˆ!!
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