From Yahoo Finance: 2025-04-17 06:26:00

The U.S. Federal Reserve takes a hawkish turn while the European Central Bank is expected to ease borrowing rates. The bond market seems unconcerned about long-term U.S. inflation, but the situation may not be all positive. U.S. stock markets will be closed for Good Friday, with ‘Morning Bid’ returning on Tuesday for market coverage.

European shares are mixed as investors assess the impact of President Trump’s trade policies. Japan expresses deep concern over global economic repercussions from Trump’s tariffs. Trump’s desire for a stronger yen against the dollar could complicate trade negotiations with Japan, posing risks for both sides.

Federal Reserve Chair Jerome Powell states the Fed will wait for more economic data before changing interest rates. Powell warns that Trump’s tariff policies could push inflation and employment further from the central bank’s goals. An American-owned company seized by Russia may be used to supply food to the Russian army, potentially straining U.S.-Russia relations.

Stock futures recover some losses after a tech sell-off. Fed Chair Jay Powell indicates a prolonged hold on interest rates to curb inflation expectations due to tariffs. Market-based measures show long-term inflation expectations near 2%. The Bank of Canada defies expectations of a rate cut, while the ECB is expected to lower rates.

Investors await housing and jobless data, as well as earnings updates from Netflix. Trade negotiations with Japan and a meeting between Italy’s Prime Minister and President Trump are in focus. Powell’s firm stance on tariffs amid market volatility may help anchor long-term inflation expectations. China and Japanese holdings of U.S. debt securities rise, but further data is needed to understand the full picture.

Events to watch include the ECB policy decision, U.S. housing starts and jobless claims data, and corporate earnings reports. IMF and World Bank meetings, Japan-U.S. trade talks, and U.S. Treasury securities sales are also on the agenda. Opinions expressed are those of the author and do not reflect Reuters News views.



Read more at Yahoo Finance: ECB set to ease as Fed delivers hawkish twist