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Gold Cools, Oil Climbs, All Eyes on Powell
Fresh stimulus from Beijing, a surprise German data beat, and rising bets on U.S. rate cuts set the tone ahead of Powell’s remarks
Fed Decision on Hold, But Market Wants More
Targeted Stimulus Aims to Cushion Trade Blow
Asian Markets
China rolled out fresh easing measures to blunt the impact of the tariff standoff. The People’s Bank of China cut its 7-day reverse repo rate by 10 basis points to 1.40% and slashed bank reserve requirements by 50 basis points — moves expected to inject roughly 1 trillion yuan ($138 billion) into the financial system. Regulators also pledged capital market support, including allowing insurers to channel an additional 60 billion yuan into equities, boosting sentiment across local bourses.
Europe Markets
In a surprise upside, Germany’s factory orders for April jumped 3.6% month-on-month, sharply outpacing the forecast of 1.3%. The euro reacted positively, with EUR/USD firming after the release. Investors are also awaiting today’s European construction PMIs and retail sales, offering a broader read on the bloc’s resilience.
US Markets
All eyes are on the Federal Reserve today as it wraps up its two-day policy meeting. While no rate move is expected, the tone of Chair Powell’s remarks is critical. With inflation risks emerging from new tariff rounds and evidence of slowing growth, investors are betting on a shift toward easing by July. Also on the docket: Treasury Secretary Bessent is scheduled to testify before Congress and later meet with GOP lawmakers on potential tax adjustments ahead of his upcoming trade talks with Chinese officials.
Commodities
After a sharp rally earlier this year, gold took a breather today — but remains up nearly 30% year-to-date. Safe-haven demand has been a key driver as investors hedge against policy uncertainty and geopolitical risks stemming from the renewed Trump-era trade pressure. China's speculative buying and steady central bank accumulation have also added momentum, keeping gold well-supported on dips.
Oil prices bounced off four-year lows. Support came from the announcement of U.S.-China trade talks and hints of supply cuts. Several U.S. shale producers, Additionally, API data showing a 4.5 million barrel draw in crude inventories added bullish momentum.
