Market Update 17/03/2025

U.S. Market:

Wall Street saw a strong rebound over the weekend. The Nasdaq closed up 2.4%, the S&P 500 gained 2.1%, and the Dow Jones Industrial Average rose 1.6%. The U.S. 10-year Treasury yield climbed to 4.32%, reflecting increased investor appetite for risk assets.

Asian Markets:

Asian markets performed strongly over the weekend. The Shenzhen Index rose 2.4%, the Hang Seng Index gained 2.1%, and the Nikkei climbed 0.7%. Australia’s ASX Index rebounded by 0.5%, led by utilities and materials sectors.

European Markets:

European markets opened higher, with the Stoxx Index, DAX, and CAC all gaining more than 0.5% in early trading. By the close in London, the FTSE and CAC had both risen slightly over 1%, while the DAX closed up 1.9% for the day.

Forex Market:

The AUD/USD traded between 0.6278 and 0.6331 before closing the weekend at its high of 0.6331. The NZD/USD followed a similar trend, reaching a weekend closing high of 0.5756. The EUR/USD rebounded from a low of 1.0831 to a high of 1.0912, driven by reports of a German parliamentary agreement on a debt package. It ultimately closed the weekend at 1.0832.

Economic Data:

• Germany’s February Consumer Price Index (CPI) rose 0.4% month-over-month, in line with expectations.
• U.S. University of Michigan March Consumer Sentiment Index fell to 57.9, down from 64.7 previously and below the expected 63.0.
  • The Current Conditions Index saw a slight decline, while the Expectations Index dropped sharply.
  • Inflation expectations surged:
    • 1-year inflation expectations rose to 4.9%, above the expected 4.3%.
    • 5-10 year inflation expectations increased to 3.9%, surpassing the forecasted 3.4%.

Key Headlines:

Reports indicate that the German parliament has reached an agreement on a debt package, which had a positive impact on the euro exchange rate.