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Global Markets Steady as Trade Talks and Inflation Data Shape Sentiment

High-level US-Japan-Italy trade discussions, divergent central bank actions, and mixed corporate earnings drive cautious investor outlook.

A woman walks down Wall Street in New York City, U.S., April 8, 2025. REUTERS/Kylie Cooper/File Photo
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A man smiles in front of an electronic screen displaying Japan's Nikkei share average during an interview with local TV reporter outside a brokerage in Tokyo, Japan, April 10, 2025.   REUTERS/Kim Kyung-Hoon/File Photo
Broker watches their screens at the stock market in Frankfurt, Germany, Wednesday, April 16, 2025. (AP Photo/Matthias Schrader)

Overview

  • US President Trump highlighted 'big progress' in trade talks with Japan and Italy, providing some relief to markets concerned about tariff uncertainties.
  • The Federal Reserve signaled caution on interest rate cuts, while the European Central Bank lowered its main rate by 25 basis points, citing trade-related risks.
  • Japan's March core inflation reached 3.6%, exceeding the Bank of Japan's 2% target, intensifying scrutiny of its monetary policy approach.
  • Corporate earnings reports added sectoral volatility, with UnitedHealth's 22% stock drop after an earnings miss and Nvidia warning of a $5.5 billion impact from export restrictions to China.
  • Global equity indices showed modest movement, with the S&P 500 up 0.1%, Nasdaq down 0.1%, and the Dow Jones falling 1.3%, reflecting a mixed market environment.