Limit Up!

Limit Up! 4th April 2025

Written by Ian Reynolds | Apr 3, 2025 10:21:31 PM

Links

Daily LinkedIn | Weekly LinkedIn | Check out the website

Overnight

Economic Indicators Released Overnight

US PMIs showing that the continued uncertainty has now pushed purchasing managers to be fearful where they were brave a few months ago.

A sea of red for risk assets with Gold and Bitcoin better performers.

  • S&P - 4.8%
  • NASDAQ -5.9%
  • Dow Jones -3.9%
  • FTSE -1.5%
  • Nikkei - 2.7%
  • Gold -0.6%
  • Silver -6%
  • WTI -7.1%
  • BTC -2.6%

Most worrying is oil down 7% and Silver down 6%, key indicators of global economic strength.

So markets got tariff certainty but that in itself presented far greater uncertainty in outcome for the global economy and pushes the chance of a global recession, or worse, much higher.

The signal that all markets are looking for is the FED to add liquidity to stabilise prices. There are 3 FED speakers today including Powell, and traders will be dissecting every word he says.

Nonfarm Payroll just adds to the volatility.

World Equities

Breaking

EU ready to retaliate against Donald Trump’s tariffs, says Ursula von der Leyen [FT]

Equities

Despite the price action the NASDAQ is not at the 20% bear market mark yet. Although we may get there by the end of the week!

NASDAQ Daily

Bitcoin

BTC still weathering the storm. At what point does money come out of tech stocks and into Bitcoin? When the FED announces QE.

BITCOIN / USD Daily

Commodities

The most important chart at the moment. The monthly descending wedge in oil has closed below the support. There's still a lot of April left but there's a yawning gap down to the low twenties below.

SPOT BRENT Monthly

Initial sell off was short lived for Gold and, as equities bottomed out, Gold moved back up

GOLD / USD Daily

Bonds

Bond rallied everywhere as recession fears heightened. Yields down 8% in JGBs was huge and tells us BoJ won't be able to tighten anytime soon.

Japan 10 Year Government Bond Yield Daily

Foreign Exchange

USD continuation down to the target around 100.00

DXY Daily

Interesting

China is sensibly having a holiday today, 3 FED speakers, Nonfarm payroll

Economic Indicators Today