United States
U.S. shares ended higher to start the week after the administration announced exemptions for certain tech products—such as smartphones and computers—from its Chinese tariff regime. While the move was initially welcomed by investors, weekend comments suggesting a new set of tariffs may soon apply to these very products introduced renewed uncertainty.
Major indices opened strongly but faded as the session progressed, closing with modest gains. The Dow Jones Industrial Average rose 312 points or 0.78% to finish at 40,524. The Nasdaq Composite added 0.64% to close at 16,831.48, while the S&P 500 gained 0.79%, ending the day at 5,405. Gains were broad-based, with 10 of the 11 S&P sectors closing in positive territory.
A decline in bond yields helped restore confidence in equities. The Russell 2000, which tracks small-cap stocks, outperformed with a 1.11% gain. In the bond market, yields fell across the curve, with the 10-year Treasury yield dropping 11 basis points to 4.38% and the 2-year falling to 3.85%. The U.S. dollar continued its slide, with the Bloomberg Dollar Index down 0.30%.
Real estate was the best-performing sector, as falling bond yields renewed interest in interest rate–sensitive stocks.
In corporate news, Apple shares closed 2.21% higher at USD 202.52 following the tariff reprieve, which provided some relief for the company. Apple shares opened more than 7% higher before paring gains during the session. Similarly, Dell ended the day up 3.98%, though it too traded higher earlier in the day.
Meta fell 2.22% to USD 531.48 as the U.S. Federal Trade Commission began its antitrust trial against the company. CEO Mark Zuckerberg was called as the first witness as the FTC seeks to prove that Meta’s acquisitions of Instagram and WhatsApp were aimed at preserving a monopoly in social networking. A successful outcome for the FTC could lead to forced divestitures.
Financials outperformed after Goldman Sachs reported stronger-than-expected first-quarter results. The investment bank cited better trading revenue, which offset a decline in asset and wealth management income. Goldman shares rose 1.93% to USD 503.98. Citigroup gained 2.56% ahead of its upcoming earnings release on Tuesday.
On the economic front, the New York Fed’s inflation expectations survey showed an uptick to 3.58%, in line with other recent surveys and further reinforcing the perception that inflationary pressures remain elevated. Meanwhile, former Fed Chair and current U.S. Treasury Secretary Janet Yellen expressed concern that the administration’s policies are undermining global trust in the U.S. financial system. She warned that rising yields on U.S. Treasuries—typically seen as a safe haven—may be calling into question “the safety of what is the bedrock of the global financial system.”
In news after the US markets closed the US administration has initiated probes led by the Commerce Department into the impact of semiconductor and pharmaceutical imports on US national security. This probe could lead to further specific tariffs on these sectors.
Europe
European shares rallied as the U.S. administration’s exemptions on certain tariffs were welcomed by investors, sparking hopes for further relief. The Euro Stoxx 600 rose 2.69% to close at 499.89, while the FTSE 100 gained 2.14%. Mainland European markets also advanced, with Germany’s DAX climbing 2.85%.
Gains were led by the healthcare and financial sectors, with banks notably outperforming the broader market. BNP Paribas surged 4.4% after securing a more favourable capital treatment for its acquisition of French insurer AXA, easing previous concerns. Italian bank UniCredit also rose after receiving unconditional approval from Germany’s competition regulator to increase its stake in Commerzbank. UniCredit currently controls 28% of Commerzbank shares through various instruments.
Mining stocks remained in demand following last week’s buying, with Glencore rising 2.5% and Anglo American up 0.90%. Healthcare was the standout sector, boosted by a 3.7% jump in Novo Nordisk after Pfizer announced it would cease development of its obesity pill due to liver toxicity concerns. Roche added 3.25% after receiving EU approval for a new treatment for blood cancer patients.
Bond yields declined as market sentiment stabilised. The German 10-year Bund yield fell by 6 basis points to 2.51%, while the UK 10-year gilt dropped 9 basis points to 4.66%. Attention now turns to Thursday’s European Central Bank meeting, where economists widely expect a 25-basis point interest rate cut.
Australia
Asian markets began the week on a strong note following concessions from the US administration regarding technology imports from China. The Australian ASX 200 Index surged 102 points, or 1.34%, to close at 7,748.60. Gains were led by the technology and materials sectors, while consumer staples was the only sector to finish in negative territory during Monday’s session.
Materials stocks rallied after strong performances in the US and European markets. BHP rose 2.68% to AUD 36.37, while Rio Tinto climbed 1.43% to AUD 110.85. Gold stocks continued to attract demand as the gold price held above USD 3,200. Evolution Mining gained 2.60% to AUD 7.90, and Newmont advanced 4.48%.
The banking sector also performed well, buoyed by broad-based buying. Commonwealth Bank added 1.69%, and Westpac rose 1.56% to AUD 30.51. Technology stocks were in favour, with Xero up 2.34% and WiseTech Global climbing 3.08% to AUD 86.74.
In corporate news, Neuren Pharmaceuticals jumped 21.11% to AUD 11.13 after announcing that key goals (primary endpoints) had been met in a clinical trial for its treatment of a rare childhood disease, Phelan-McDermid syndrome.
Bond yields were largely unchanged. The Australian 10-year yield remained steady at 4.39%, while the 2-year yield rose by 4 basis points to 3.29%.
Today, attention turns to the release of minutes from the Reserve Bank of Australia’s latest interest rate meeting. Investors will be watching closely for insights into the RBA’s perspective on shifting global trade dynamics and their potential impact on domestic monetary policy.
Australian shares are expected to open with a positive tone today, following a modest overnight gain in futures, which rose by 8 points or 0.10%. The Australian dollar also continued its upward momentum, with the AUD/USD climbing 0.60% to trade at 0.6328.
Commodities
Calm returned to commodity markets on Monday as traders reassessed their positions following the weekend’s announcement of a U.S. exemption on certain Chinese tech products. Oil prices fluctuated throughout the day—moving up and down by roughly 1%—before settling modestly higher. West Texas Intermediate (WTI) crude rose by 15 cents to close at USD 61.65, a gain of 0.23%, while Brent crude also added 0.23%, closing at USD 64.98.
OPEC released a report on Monday revising its oil demand growth forecast for next year downward by 150,000 barrels per day. The 10% cut reflects expectations of slower global growth and the impact of ongoing tariffs.
Gold retreated as traders took profits and adjusted positions, falling 0.90% or USD 29.12 to USD 3,208.60. Despite the decline, some analysts pointed to a weakening U.S. dollar and diminishing global confidence in the U.S. as an investment destination—factors that have led to more bullish forecasts for gold in the longer term. Silver was unchanged at USD 32.34.
Bitcoin gained 1.3% to reach USD 84,620.
Among industrial metals, copper edged up 0.35% to USD 9,187 per tonne on the London Metal Exchange. Iron ore slipped slightly, falling 25 cents to USD 97.75, a decline of 0.25%.
Economic Calendar
AU:
- Reserve Bank Board April meeting minutes. – 12:30pm
EU:
- ZEW Economic Sentiment Index (Apr) – 8:00pm
US:
- NY Empire State Manufacturing Index (Apr) – 11:30pm
- Import/Export Prices (Mar) – 11:30pm
This article was written by Paul Darwell, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
