Markets kicked off the week on a quiet note, with holidays in Asia and the UK, mixed US data, and trade jitters keeping volatility low.
Markets rallied last Friday on hopes for a US-China trade deal and upbeat US job data.
Early signs of renewed US-China trade talks lifted market sentiment on Friday, helping risk assets recover and easing pressure on the US Dollar.
The market sees limited momentum early Thursday due to Labor Day holidays in Europe and China.
Momentum slows midweek as month-end flows and caution ahead of major US and European data weigh on risk appetite.
Market optimism over Trump’s auto tariff relief faded quickly as China, the EU, UK, and Japan criticized US trade policies and pushed for broader deals.
Early Monday sees traders stepping back as fears over US-China trade talks and Ukraine ceasefire negotiations resurface.
After easing fears around Fed independence and China tariffs, Trump’s renewed trade threats have shaken market confidence.
US President Trump’s change of stance on firing Fed Chair Powell and his more positive tone on trade talks with China sparked market optimism late Tuesday.
Despite some markets being closed for Easter Monday, traders continued to sell the US Dollar and favor safer assets like Gold, Japanese Yen (JPY), and Swiss Franc (CHF).
Despite the Easter holiday, USD continues to weaken as concerns grow over the US economy amid tough trade and political policies.
Easter holidays slow trading as market liquidity remains thin, despite positive trade headlines from China and Japan easing risk aversion.
Despite mixed news on US trade talks and tensions with China, market sentiment improved early Thursday, boosted by progress in US-Japan trade talks.
