Beyond Markets The Week in Markets: Markets rebound as US softens its tone
Apr 28, 2025
US markets rebound as optimism grows over trade talks and a softer stance from President Trump. Manufacturing indicators, however, hint at potential contraction, raising concern. Polls show a majority disapprove of tariffs, fearing inflation. Meanwhile, analysts predict rate cuts could materialize as recession risks rise. Insights into investment strategies and currency movements enrich the discussion as the landscape shifts.
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Markets Rebound on Trump's Tone
- US Treasuries and equities rebounded strongly after President Trump took a more conciliatory tone on Fed Chair Powell and tariffs with China.
- This shift sparked optimism about potential trade deals and tariff suspensions, boosting investor sentiment significantly.
Manufacturing Contracts Amid Tariff Concerns
- Recent US manufacturing activity indicators point to renewed contraction, signaling economic slowdown risks.
- Tough public sentiment shows 64% oppose Trump's tariffs, with many fearing inflation and economic leadership erosion.
US Dollar Faces Weakening Outlook
- The US dollar faces potential consolidation weakness due to deteriorating growth and recession risk.
- Lower interest rates and weakening safe haven status may reduce foreign investor appetite for US assets.