Market Update 03/04/2025

U.S. Market:

At the opening of the New York session, Wall Street weakened but later recovered some losses. The Dow Jones Industrial Average turned positive in the late morning session, while the S&P 500 and Nasdaq remained down around 1%. In the later part of the North American trading session, the market showed a mixed performance, with the Dow Jones Industrial Average rising 1.0%, the S&P 500 gaining 0.5%, and the Nasdaq declining 0.4%. The U.S. 10-year Treasury yield fell to 4.2%.

Asian Markets:

Asian markets opened the week with sharp declines. The Nikkei 225 fell 4%, hitting a six-month low. The Hang Seng Index dropped 1.3%, and Australia’s ASX 200 declined 1.7%.

European Markets:

European markets opened lower as expected, with the Euro Stoxx 50 down 1.1%, the FTSE 100 losing 0.9%, and the German DAX falling 1.1%. Although some losses were recovered later in the trading session, European markets still closed notably lower, with the FTSE 100 down 0.9%, while the DAX and CAC 40 dropped 1.3% and 1.6%, respectively.

Forex Market:

The Australian dollar (AUD) hit a low of 0.6219 against the U.S. dollar (USD) in the late North American trading session before stabilizing around 0.6250/55 ahead of the Asian open. During the Asian session, AUD was among the worst-performing currencies, falling to 0.6254 at the European open and later rebounding from a low of 0.6243. In early New York trading, AUD/USD declined further to 0.6227 and then hit 0.6219 before recovering to around 0.6250 in the afternoon.

The euro (EUR) rebounded near its opening level after hitting a low of 1.0806 against the USD. During the New York morning session, EUR/USD fell toward 1.0800 and later dropped further to 1.0784.

The U.S. dollar (USD) strengthened against the Japanese yen (JPY), rising to 150.255.

Economic Data & Events:

Germany’s March Consumer Price Index (CPI) increased by 0.3% month-over-month and 2.2% year-over-year, both in line with expectations. The market reaction to these figures was muted.

The U.S. March Chicago Purchasing Managers’ Index (PMI) came in at 47.6, higher than the previous reading of 45.5 and the expected 45.0. Meanwhile, the Dallas Federal Reserve’s Manufacturing Activity Index fell to -16.3 in March, worse than the previous -8.3 and the forecasted -5.0.

Key News:

Earlier, former U.S. President Donald Trump’s comments regarding tariffs on Russian oil had an impact on the market, temporarily easing the U.S. dollar’s strength.

Here are the latest mid-market rates: