Market Update 07/04/2025

U.S. Market:

On April 4, the Dow Jones Industrial Average fell 2,231.07 points from the previous trading day, closing at 38,314.86, a decline of 5.50%. The S&P 500 Index dropped 322.44 points to 5,074.08, a decrease of 5.97%, and the Nasdaq Composite fell 962.82 points to 15,587.79, down 5.82%.

Asian Markets:

On April 3, the Hong Kong Hang Seng Index closed down 1.52% at 22,849.81 points, and the Hang Seng Tech Index dropped 2.09% to 5,313.26 points. Japan’s Nikkei 225 Index declined 2.77%, closing at 34,735.93 points.

European Markets:

At the European market close, bond yields showed significant declines: The UK 10-year government bond yield fell by 7.2 basis points to 4.448%, while the 2-year yield dropped 7.6 basis points to 3.934%.Germany’s 10-year yield decreased by 7.4 basis points, settling at 2.578%.Over the past week, France’s 10-year yield cumulatively dropped by 10.1 basis points, closing at 3.333% on Friday, April 4.

Forex Market:

The U.S. Dollar Index fell over 0.4%, to 102.48, with a 1% decline last week. The Australian dollar (AUDUSD) dropped 0.73% to $0.6001, reaching a five-year low. The New Zealand dollar (NZDUSD) declined 0.75% to $0.5554. Meanwhile, the euro (EURUSD) rose 0.26% to $1.0994, and the British pound (GBPUSD) fell slightly by 0.13% to $1.2889.

Economic Analysis: 

Interest rate futures predict the Federal Reserve will cut rates by 100 basis points by December this year. Chairman Jerome Powell warned last Friday that it is still too early to determine the appropriate response measures for the Fed. In Asian markets on Monday, focus will also be on the yuan’s central parity rate to assess whether China can tolerate further yuan depreciation amid escalating U.S.-China trade tensions. China’s markets were closed on Friday for a public holiday.

Key data:

Eurozone February retail sales monthly rate

China March foreign exchange reserves

Here are the latest mid-market rates: