- Asian stocks dip after US selloff, dollar edges up
Asian stocks edged down at the open after President Donald Trump’s criticism of Federal Reserve Chair Jerome
Powell raised concerns about the central bank’s independence and sparked a selloff in US assets. A regional
gauge of equities dropped for the first time in four days with Hong Kong set to reopen after Easter holidays.
Some stability appeared in US assets in early Asian trading as equity-index futures extended a late Monday
rally. A gauge of the dollar rebounded after weakening to a 15-month low while 10-year Treasuries edged
higher. Trump’s assurances that tariff talks were progressing did little to lift optimism as concerns mount he
may be preparing to fire Powell for refusing to cut interest rates faster. The mood on Wall Street has turned
from optimism to a ‘Sell America’ mode as Trump upends a global trade order by ratcheting up tariffs to the
highest level in a century, a move that economists have said will boost inflation and push the US into a
recession. - Dow slides more than 950 points as Trump rips Fed Chair Powell, reigniting investor worries
Stocks fell again on Monday as President Donald Trump ramped up his attacks on Federal Reserve Chair Jerome
Powell, raising questions about the central bank’s independence, while traders received few signs of progress
on global trade talks. The Dow Jones Industrial Average dropped 971.82 points, or 2.48% to close at 38,170.41.
The S&P 500 shed 2.36% and ended at 5,158.20, and the Nasdaq Composite lost 2.55% to settle at 15,870.90.
“Magnificent Seven” tech titans dragged the major indexes lower, with Tesla and Nvidia respectively losing
5.8% and more than 4%. Amazon shed 3%, as did Meta Platforms. Equipment manufacturer Caterpillar declined
2.8%. - Oil falls more than 2% on signs of progress in U.S.-Iran talks amid more market stress
Oil prices fell more than 2% on Monday on signs of progress in talks between the U.S. and Iran while investors
remained concerned about economic headwinds from tariffs which could curb demand for fuel. Brent
crude futures slipped $1.70, or 2.5%, to close at $66.26 a barrel after closing up 3.2% on Thursday. U.S. West
Texas Intermediate crude settled at $63.08 a barrel, down $1.60, or 2.47%, after settling up 3.54% in the
previous session. Thursday was the last settlement day last week because of the Good Friday holiday. “The
U.S.-Iran talks seem relatively positive, which allows for people to start thinking about the possibility of a
solution,” said Harry Tchilinguirian, group head of research at Onyx Capital Group. “The immediate implication
would be that Iranian crude would not be off the market.” Markets also have lower liquidity due to the Easter
holiday, which can exacerbate price moves, he added. In the talks, the U.S. and Iran agreed to begin drawing
up a framework for a potential nuclear deal, Iran’s foreign minister said, after discussions that a U.S. official
described as yielding “very good progress.” The progress follows further sanctions by the U.S. last week against
a Chinese independent oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran.
Markets also came under stress on Monday, after U.S. President Donald Trump last week made criticisms about
the Federal Reserve. Gold prices rose to another record, with jitters rippling into energy markets due to
concerns about demand, according to analysts. - Gold maintains record rally following Trump’s criticism of Federal Reserve chief
Gold prices continued their record rally on Tuesday, driven by concerns over U.S. President Donald Trump’s
criticism of Federal Reserve Chair Jerome Powell, which dampened risk sentiment and drove investors towards
the safe-haven bullion. Spot gold was up 1.4% at $3,472.49 an ounce, as of 0247 GMT, after touching a record
high of $3,473.03 per ounce earlier in the session. U.S. gold futures firmed 1.7% to $3,482.40. “Investors have
been giving a wide berth to U.S. assets amid tariff worries and Trump-Powell dramas, which has kept gold in
prime position to capitalize on the dollar’s woes,” said Tim Waterer, chief market analyst at KCM Trade. Trump
reiterated his call for an immediate reduction in interest rates on Monday, warning that the
U.S. economy could face a slowdown, while criticizing Powell’s stance to keep rates unchanged until clarity on
the inflation impact of Trump’s tariff plans. Asian stock markets struggled to maintain stability following a rapid
sell-off of U.S. assets that weakened Wall Street and the dollar. On Monday, China accused Washington
of abusing tariffs and warned countries against striking a broader economic deal with the U.S. at its expense.
“There remains a chance of a pullback given the rapid rate of gains on display so far this month. But there is
reason to believe that buyers will be keen on gold should a pullback occur given that high economic uncertainty
remains a prevailing market theme,” Waterer said. Gold, viewed as a safe-haven against economic
uncertainties, surpassed the $3,300 mark last Wednesday and continued its upward trajectory, crossing $3,400
on Monday. Markets are eagerly anticipating speeches from several Fed officials later this week, hoping for
insights into future monetary policy amid concerns about central bank’s independence. Spot silver fell 0.4% to
$32.57 an ounce, platinum gained 0.3% to $964.78, while palladium rose 1.3% to $939.50. - As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not
Uncertainty about U.S. policymaking has led to a flight out of the U.S. dollar and Treasurys, with the dollar
index weakening more than 9% so far this year, and analysts see more declines. The drop in the greenback has
led other currencies to appreciate against it, especially safe havens such as the Japanese yen, the Swiss franc
as well as the euro. Currency devaluation is likely to be more of an active consideration across emerging
markets, particularly in Asia, said Nick Rees, head of macro research at Monex Europe. “Emerging markets face
high inflation, debt, and capital flight risks, making devaluation dangerous,” said Wael Makarem, financial
markets strategists lead at Exness. - Trump ramps up attacks on Powell, demands ‘loser’ Fed chair lower rates ‘NOW’
President Donald Trump on Monday ratcheted up his pressure campaign on Federal Reserve Chairman Jerome
Powell, calling him a “major loser” and warning that the U.S. economy could slow down unless interest rates
are lowered immediately. ″‘Preemptive Cuts’ in Interest Rates are being called for by many,” Trump wrote
on Truth Social. Trump claimed that there is currently “virtually No Inflation” in the U.S., and that costs for
energy and “most other ‘things’” are on the decline. “With these costs trending so nicely downward, just what
I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless
Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump wrote. Trump’s latest salvo against Powell —
whom he appointed during his first administration — came as the president and his team are studying whether
they can legally fire the central bank leader before his term expires in May 2026. Powell has flatly stated that
the president cannot remove him under the law. Any attempt by Trump to fire Powell would likely trigger a
steep sell off in U.S. equity markets, Evercore ISI’s vice chairman, Krishna Guha, told CNBC on Monday. - Google says DOJ’s proposal for breakup would harm U.S. in ‘global race with China’
As Google heads back to the courtroom Monday, the company is arguing that the U.S. needs the company in
its full form to take on chief adversary China and uphold national security in the process. The remedies trial in
Washington, D.C., follows a judge’s ruling in August that Google has held a monopoly in its core market of
internet search, the most-significant antitrust ruling in the tech industry since the case against Microsoft more
than 20 years ago. The Justice Department has called for Google to divest its Chrome browser unit and open
its search data to rivals. Google said in a blog post on Monday that such a move is not in the best interest of
the country as the global battle for supremacy in artificial intelligence rapidly intensifies. In the first paragraph
of the post, Google named China’s DeepSeek as an emerging AI competitor. The DOJ’s proposal would
“hamstring how we develop AI, and have a government-appointed committee regulate the design and
development of our products,” Lee-Anne Mulholland, Google’s vice president of regulatory affairs, wrote in
the post. “That would hold back American innovation at a critical juncture. We’re in a fiercely competitive
global race with China for the next generation of technology leadership, and Google is at the forefront of
American companies making scientific and technological breakthroughs.” - Nvidia, the chip giant, fell 4.5%, leading the Dow Jones Industrial Average’s slump during Monday’s session
Nvidia shares slid nearly 3% on Thursday and almost 7% on Wednesday after the company said last week that
it will record a $5.5 billion charge due to controls around exporting its H20 graphics processing units to China
and other destinations. The US government informed Nvidia that the H20 would require a license to export to
China “for the indefinite future.” The new rules address Washington’s concerns that “the covered products
may be used in, or diverted to, a supercomputer in China,” the company said. Nvidia warned it will report about
$5.5 billion in writedowns during the current quarter, tied to inventory and commitments for the chip. - Amazon.com was downgraded by Raymond James on anticipation that earnings will come under pressure
from its increasing investments and the steep US tariff increases on imports from China
Shares fell 3.1%. Josh Beck lowered his rating to outperform from strong buy, saying it’s likely that Wall Street
analysts are underestimating the impact of the US trade war and the company’s continued investments. Beck
also cut his price target to a Street-low view of $195, from $275. While Raymond James still has the equivalent
of a buy rating, downgrades of Amazon are rare, and 95% of the analysts tracked by Bloomberg recommend
buying the stock. Even Beck wrote that he remains “constructive on AI prospects/long-term investments” at
Amazon, though the earnings risks are a near-term headwind. Still, caution surrounding the company has been
growing. Also on Monday, Bank of America wrote that the company has an uncertain outlook given tariff
related risks. There are concerns about “a growing impact from supply disruptions as 2Q progresses,” and
“questions on how Amazon would consider tariff uncertainty in profit guide, with a wider guidance range, or a
downside scenario possibly with profit in the single digit billions.” - Tesla Inc (TSLA US)
Shares of the electric vehicle company declined 5.7% after Barclays cut its price target on Tesla ahead of its
first-quarter earnings report. Barclays cited “confusing” visibility heading into earnings and said “it will be
increasingly difficult” for Tesla to see volume growth in 2025. Meanwhile, Wedbush Securities analyst Dan
Ives said Tesla’s chief executive officer should step back from his controversial work at the Department of
Government Efficiency and re-focus his attention on the carmaker. Tesla is facing a “code red” moment as it
prepares to report first-quarter earnings Tuesday, the analyst said. - Netflix shares rose 1.5% on the back of its first-quarter earnings and revenue beat. Netflix also cited
relative insulation from tariffs. Several Wall Street analysts raised their price targets on the stock on Monday
Piper Sandler (overweight): Analyst Tom Champion notes 1Q print was strong and 2Q guide solid, which
suggests limited friction from macro; says reiteration of FY guide sets up well for 2H. Sees Netflix as defensive
name with multiple upside levers. KeyBank Capital Markets (overweight): Analyst Justin T Patterson says
earnings reinforced Netflix is “relatively insulated from the macro,” it has catalysts for 2H and margin cushion.
Raises EPS estimates for 2025, 2026 and PT to $1,070 from $1,000. Morgan Stanley (overweight): Analyst
Benjamin Swinburne raises estimates and PT to $1,200 from $1,150 as 1Q was modestly ahead of expectations
and FX is for now a tailwind; sees upside to 2025 FCF expectations. Says company is a predictable business and
should be relatively resilient in a tougher macro. - UnitedHealth shares extended their declines to a second day after Argus downgraded the health insurer
following a disappointing earnings report and an outlook cut that weighed on the sector
Shares fell 6.3% on Monday after a 22% plunge on Thursday. “UNH’s cut in 2025 guidance makes it more
difficult to see a path to profitable growth in managed-care,” writes analyst David Toung. Analyst is “surprised
at the scope of the underperformance and the elevated levels of care activity” in UNH’s Medicare Advantage
business. Says medical cost pressures at Medicare Advantage will likely continue through the first half of 2025. - China’s CATL claims to beat BYD’s EV battery record with longer range on a 5-minute charge
China’s CATL, the world’s largest supplier of EV batteries, announced a set of new incoming products Monday,
including a battery it claims has set a “new global record for superfast charging technology.” In a post on
WeChat, the company — Contemporary Amperex Technology Company Ltd. — said that its second-generation
Shenxing battery could add 520 km (323 miles) of driving range from just five minutes of charging time— only
slightly longer than it takes to refuel gas cars. This appears to put CATL’s fast charging ahead of that of Chinese
EV giant and Tesla rival BYD, which last month surprised the industry with a charging system it claimed could
add about 400 km in range to its batteries also in about 5 minutes. Some analysts were skeptical about BYD’s
claims, noting potential technical hurdles and high costs. However, if proved feasible on a larger scale, the tech
could help the EV industry alleviate consumer concerns about electric vehicle range and convenience. CATL’s
latest claims would also place its cutting-edge charging speeds comfortably ahead of those of its Western
competitors. Tesla’s latest superchargers can add up to 270 kilometers of range in 15 minutes, while Mercedes
Benz Group recently said one of its batteries can recharge up to 325 kilometers within 10 minutes. - Japan’s Nomura to buy Macquarie’s U.S. and European public asset management business for $1.8 billion
Japanese investment bank and brokerage group Nomura said Tuesday it will buy the U.S. and European public
asset management businesses of Australian investment banking company Macquarie for $1.8 billion. The all
cash deal is expected to close by the end of this year, subject to regulatory approvals. Nomura said it has
“identified global asset management as a key strategic growth priority for the organization,” adding that this
would increase the assets under management of its investment management division to $770 billion, up from
the $590 billion currently. Macquarie said it will retain its public investments business in Australia, where it will
continue to service institutions, governments and individual investors. As part of the transaction, Macquarie
and Nomura have also agreed to collaborate on product and distribution opportunities.
This includes Nomura being a U.S. wealth distribution partner for Macquarie, which will see clients in the U.S.
still having access to Macquarie’s alternative investment capabilities.
Nomura has committed to providing seed capital for a range of alternative funds tailored for U.S. wealth clients,
the two companies said. Nomura said that the impact of the transaction on the company’s financials will be
“minimal,” and both companies will continue to operate separately and independently until the deal closes.
Nomura Holdings CEO Kentaro Okuda said the company does not intend to make any funding or financing
activities directly relating to the deal, Reuters reported. He also added that the transaction “should be durable
against the volatility of the market,” saying the deal had a “very prudent due diligence process.” Nomura is
among Japan’s largest brokerages and investment firms with a presence in about 30 countries. Shares of
Nomura in Tokyo were down 0.15% on Tuesday, while Macquarie’s stock in Australia climbed 0.32%.
Menu