The Mid-Morning Market Update

• In the first part of the day in the Asia-Pacific region, we observe modest movements in stock indices. On the Chinese market, index changes are limited to the -0.60% to 0.00% range. The Japanese JP225 index is down 0.20%, AU200.cash is trading flat, and Singapore’s SG20cash is down 0.25%. US CFD index futures are posting declines in the range of 0.45–0.55%.
• SMCI, a semiconductor manufacturer, released preliminary financial data for the completed quarter. The company lowered its revenue and earnings-per-share forecasts, citing delays in customer decisions and inventory issues. It also reported lower gross margins. The company’s stock dropped 15% in after-hours trading and contributed to a sell-off in Nvidia and other sector peers.
• US Treasury Secretary Bessent confirmed that Trump still needs to personally approve 18 major trade agreements. He emphasized that none of them have been finalized yet. His comments suggest that Trump’s involvement is slowing progress, and markets may be prematurely pricing in the completion of these deals.
• President Trump congratulated Canadian Prime Minister Mark Carney on his election victory. Both leaders emphasized their willingness to cooperate as sovereign nations. They plan to meet in person soon.
• Inflation in Australia for Q1 2025 came in slightly above expectations — the CPI index was 2.4% y/y. Despite this, the data supports expectations for a rate cut at the Reserve Bank of Australia’s meeting on May 19–20. However, the RBA may avoid strongly dovish messaging due to global economic uncertainty. The AUD rose slightly following the data release.
• China’s official manufacturing PMI fell to 49.0 in April (forecast 49.8, previous 50.5). Meanwhile, the Caixin PMI, which focuses on smaller private exporters, remained in expansion territory at 50.4. This discrepancy highlights the resilience of small exporters despite rising tariff pressure. Export orders fell at the fastest pace since July 2023.
• Goldman Sachs’ chief economist expects a continued 5% decline in the value of the dollar, which would deepen inflation but support exports. Economic slowdown in the U.S. may further weaken the USD.
• Industrial production in Japan in March 2025 fell by 1.1% m/m (forecast -0.5% m/m, previous 2.3% m/m). Retail sales rose 3.1% y/y but also missed expectations. Officials pointed to weak vehicle production and concerns over U.S. tariffs. Nevertheless, the Bank of Japan is expected to leave monetary policy unchanged at its April 30–May 1 meeting.

The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.

Register a Revolut Business Account