U.S. Markets and Economic Indicators
Following Wednesday’s market close, investor sentiment shifted toward caution after U.S. President Donald Trump announced the introduction of new reciprocal tariffs. The measures include a 10% baseline tariff effective April 5, with broader implementation set for April 9. The tariffs target multiple regions including China, the European Union, Japan, and others, with Chinese goods facing rates as high as 34% and EU imports up to 24%.
This announcement impacted U.S. equities, with after-hours trading reflecting a downward trend. Futures for the S&P 500 pointed to a weaker open, while bond markets also responded, with the 10-year Treasury yield falling by 5 basis points to 4.13%.
The move is expected to generate further uncertainty in the global economy, especially as it impacts critical sectors such as the automotive industry, which will now be subject to a 25% tariff starting immediately.
In commodity markets, WTI crude oil prices declined, while the U.S. dollar weakened against other major currencies. Despite the market volatility, U.S. economic data released during the session showed resilience. The ADP employment report indicated that 155,000 private sector jobs were created in March. Additionally, a rise in manufacturing activity suggests the U.S. economy remains stable amid the ongoing trade policy shifts.
Developments in Asian and European Markets
Asian Equities
Asian stock markets experienced significant losses in Thursday’s session. Japan’s Nikkei 225 fell by 4.7%, reaching an eight-month low due to investor concerns surrounding the latest U.S. tariff actions. Other regional markets, including Hong Kong’s Hang Seng and South Korea’s KOSPI, also declined sharply.
U.S. and European Market Moves
U.S. equity futures continued to slide overnight after the tariff announcement. Futures for the S&P 500 dropped by 3.6%, while Nasdaq 100 futures declined by 4.5%. Investor concerns focused on the risks of inflation, potential retaliatory tariffs, and the broader impact on global markets.
In Europe, major indices closed lower on Wednesday. The Stoxx 50 fell by 0.4%, and the Stoxx 600 declined by 0.6%. The healthcare sector saw notable losses, led by Bayer. In contrast, UniCredit and Crédit Agricole reported positive developments, having received regulatory approvals for acquisition-related activity.
Currency and Commodities Market Update
The U.S. dollar depreciated against most global currencies, including the euro, amid increased recession concerns and the reaction to the tariff measures. The EUR/USD exchange rate reached 1.0912, illustrating the broader risk-averse sentiment among investors.
Oil markets also faced downward pressure. Brent crude dropped by 2.13% to $73.35 per barrel, while WTI crude fell by 2.26% to $70.09. These price movements were influenced by fears of a global trade war, a surprise increase in U.S. crude oil inventories, and lower-than-expected gasoline demand.
Company-Specific Market Movers
Oracle
Oracle confirmed a cybersecurity breach involving outdated client login data taken from its cloud servers. The FBI and CrowdStrike are investigating the incident. The compromised credentials include some from as recently as 2024. Oracle stated the breach pertains to a legacy system that is no longer active, minimizing current risk.
BNP Paribas
The Belgian government is reportedly considering the sale of its 5.6% stake in BNP Paribas, originally acquired in 2009 through the purchase of Fortis Bank Belgium. The potential sale of 63.3 million shares, valued at approximately €4.84 billion, would be used to support increased defense spending to meet NATO’s 2% GDP target.
UniCredit and Banco BPM
Italy’s financial authority, Consob, approved UniCredit’s public exchange offer for Banco BPM shares. The deal is scheduled to run from April 28 to June 23, 2025. Banco BPM shareholders will receive 0.175 newly issued UniCredit shares for each Banco BPM share tendered.
Siemens
Siemens has announced the acquisition of U.S.-based scientific software provider Dotmatics from Insight Partners for $5.1 billion. The acquisition is aimed at enhancing Siemens’ AI-powered product lifecycle management software within the life sciences field. The deal is expected to close during the first half of fiscal 2026, pending regulatory approvals.
BHP Group
BHP Group Ltd had considered spinning off its Australian coal and iron ore units to shift focus toward growth in copper and potash. However, the company has decided against the move, citing a need for steady cash flow to finance major investments. With new Chair Ross McEwan taking leadership, the topic may be revisited in the future.
DoorDash and Domino’s
DoorDash has entered into a strategic partnership with Domino’s Pizza, allowing Domino’s drivers to deliver orders placed on DoorDash’s Marketplace. The U.S. launch is set for May 2025, with Canadian expansion planned later in the year. The collaboration aims to boost reach in suburban and rural areas and will include benefits for DashPass subscribers.
ConocoPhillips
ConocoPhillips is exploring the sale of oil and gas assets in Oklahoma that it acquired from Marathon Oil in 2021. The assets are estimated to be worth over $1 billion. The sale would contribute toward the company’s plan to raise $2 billion through divestitures of non-core assets.
Tesla
Tesla reported a 13% drop in first-quarter sales—the lowest in almost three years. The decline was attributed to rising competition, backlash against CEO Elon Musk’s political involvement, and delays in the refreshed Model Y. Despite the disappointing results, shares rebounded amid speculation that Musk may step back from his government-related activities. Analysts at Wedbush interpreted this as a potentially positive development for the company.
Analyst Ratings and Forecasts
- ASML: Downgraded by Mizuho from Buy to Neutral due to concerns over its 2026 outlook. Sales are expected to decline by 3%, with flat earnings per share. The price target was lowered from €810 to €650, citing risks related to dependence on TSMC and reduced EUV shipments.
- Fiserv: Upgraded to “Buy” by Goldman Sachs. The firm highlighted growth opportunities in the Clover platform and new small business banking solutions, setting a price target of $260. EPS is forecast to grow at mid-teens rates, with a 5% free cash flow yield.
- United Airlines: Downgraded from Outperform to Market Perform by Raymond James, citing a potential downturn in long-haul international travel and changes in both corporate and leisure travel patterns. The firm removed its price target and expressed a preference for Delta Airlines.
- GE Vernova: Initiated with a “Positive” rating and a $370 price target by Susquehanna. Analysts cited high demand for gas turbines and electrification technologies, supported by a $120 billion backlog. The firm expects substantial growth in both revenue and EBITDA.
- Charles Schwab: Upgraded to “Buy” by Citi, citing growth in net new assets, increased trading activity, and reduced short-term funding needs. The price target was raised to $102, with Q1 2025 earnings forecast at $1.00 and full-year expectations at $4.24 per share.
- Engie: Upgraded to “Buy” by Jefferies following strong financial updates and an improved long-term outlook. The firm expects earnings and dividend growth of 4–5% CAGR through 2030. The price target was increased to €20. Risks include political developments in France and supply chain constraints.
Economic Data to Watch
Key economic indicators expected today include the Services Purchasing Managers’ Index (PMI), the ISM Non-Manufacturing PMI, and Initial Jobless Claims. These data releases could influence broader market sentiment.
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