Asian Markets Nudge Up—Because Traders Needed Something to Justify Their Coffee Breaks
Another day, another microscopic uptick in Asian equities. Wednesday's 'rally'—if you can call a 0.2% gain that—proves markets still move even when nothing happens.
Why This Matters (Sort Of)
Pension funds rebalanced. Algorithms twitched. Someone at a Tokyo desk probably fat-fingered a buy order. The usual suspects for faux momentum.
The Real Takeaway
Traditional finance keeps pretending these fractional moves mean something—meanwhile, crypto traders would've 10x'd this 'action' with leverage by breakfast. Just saying.
OECD cuts global growth forecast to 2.9% for 2025 and 2026
Wednesday marked the deadline for U.S. trading partners to submit proposals that could help them avoid President Trump’s planned “Liberation Day” tariffs, set to take effect in five weeks.
On Wednesday at 04:01 GMT, Trump’s surprise MOVE to raise existing tariffs on steel and aluminium from 25% to 50% officially took effect, following an order he signed last week.
“We believe that the steel and aluminium tariffs are an exemplar of other strategic tariffs that are coming and likely to ‘stick,’” said Thierry Wizman, global FX and rates strategist at Macquarie. “With that, there’s still little impetus for a U.S. dollar rally to take hold.”
The on-again, off-again nature of U.S. tariffs has driven investors away from American assets and toward SAFE havens like gold and other currencies.
The Organisation for Economic Cooperation and Development (OECD) warned that the global economy is set to slow from 3.3% growth last year to 2.9% in both 2025 and 2026, trimming its previous estimates from March, largely due to the impact of the U.S. trade war.
Dollar slips sear six-week low as Yen and Euro gain ground
On Wednesday, the dollar slipped 0.17% against the Japanese yen to 143.72 and fell 0.1% against the Swiss franc to 0.8227. The euro rose 0.15% to $1.1388. The dollar index, which tracks the U.S. currency against six major peers, stood at 99.11, not far from a six-week low of 98.58 hit on Monday. Year-to-date, the index has fallen 8.5%.
In commodity markets, oil prices eased as a softening supply-demand balance emerged amid rising OPEC+ output and ongoing worries about global growth.
Brent crude futures inched down 0.06% to $65.59 a barrel, while U.S. West Texas Intermediate crude declined 0.09% to $63.35 per barrel. Gold continued its climb, rising 0.5% to $3,369.59 per ounce, bringing its gains so far this year to an impressive 28% on safe-haven buying.
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