Markets rose on first quarter trading day, uncertainty over Trump's tariffs announcement

From Yahoo Finance: 2025-04-01 17:01:00

Stocks rose on the first trading day of the quarter, but U.S. Treasury yields fell as markets awaited Trump’s new tariffs announcement. European stocks surged, while the dollar remained steady. Bitcoin rose above $85,000. The uncertainty surrounding Trump’s tariffs has put a damper on world markets, creating a fog of unknowns for investors. The announcement is scheduled for Wednesday. U.S. economic indicators show manufacturing contraction and rising inflation, pointing to stagflation risks.

Japanese stock futures suggest a slight rise on Wednesday. IMF data shows a record low share of FX reserves in dollars, but a surge in the dollar’s value may offset the decline. Reserve managers are diversifying away from the dollar, with the dollar’s share reaching a record low of 54.1%. While the dollar’s dominance is weakening, it remains the top global reserve currency. Other currencies like the euro are not gaining at the dollar’s expense. Euro reserve holdings have fallen in nominal and valuation-adjusted terms, a trend ongoing since the Global Financial Crisis and accelerated post-pandemic. Cofer data shows central banks’ FX reserves now include a 12.6% share of “nontraditional” currencies, up from 3% before 2009. The euro’s share has never dropped below 19% in over 25 years, with the dollar’s dominance gradually diminishing. Trump may be content with the dollar’s continued influence. Market-moving events tomorrow include South Korea inflation, India manufacturing PMI, and speeches by ECB and Fed officials. Recent articles cover Tesla sales, PIMCO’s international focus, and Trump’s tariffs impact.



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