Mid-Morning Market Update
- Futures opened Monday’s session lower and continue to decline. The US500 is down over 1%, while the US100 drops by 1.15%. No major macroeconomic releases are scheduled for today, except for the set of U.S. leading indicators due at 4:00 PM. The VIX volatility index is up more than 2%.
- Gold is rising nearly 2%, approaching the $2,400 per ounce mark. EUR/USD is also seeing a significant surge, pushing the pair above 1.15. The U.S. Dollar Index is down over 1%; USDIDX has clearly broken below the 100 level and is testing the 98 area.
- Bitcoin is gaining nearly 3%, climbing above $87,500. Similarly, Ripple is up 2.5%, holding above the key support (200-day EMA) and rising to $2.12 today. Among cryptocurrencies, Decentraland is performing the best, posting a nearly 12% gain.
- The People’s Bank of China kept interest rates unchanged as expected, at 3.6% for the 5-year and 3.1% for the 1-year terms. Asian index futures (except for JP225 and SG20) are inactive. Futures on Japan’s Nikkei (JP225) are up 0.7%, while MSCI Singapore Index futures are slightly down.
- Crude oil is falling by 1%, with a similar 1% pullback seen in natural gas (NATGAS) futures. Agricultural commodities traded on the Chicago Board of Trade (CBOT)—such as corn, soybeans, and cotton—are posting slight gains, except wheat, which is down over 0.5%.
- Over the weekend, concerns grew in the United States over the potential dismissal of Federal Reserve Chair Jerome Powell. Donald Trump is pushing for interest rate cuts, and it appears that a new Fed chief—even if appointed only in May 2026, after Powell’s term ends—would likely adopt a more dovish monetary policy stance, even if inflation remains elevated.
- Austan Goolsbee of the Fed emphasized the importance of the central bank’s political independence and pointed out that stockpiling goods to avoid U.S. tariffs is more evident in business purchases than in retail consumer behavior.
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