Commodities across the board surged, with significant gains in gold, copper, oil, and aluminum. Pre-market trading in US AI stocks declined. Expectations of interest rate cuts are rising, leading to a rise in European stocks. Non-dollar currencies are under pressure, with the Euro falling to a 5-month low
On Friday, commodities saw a major surge, with gold, silver, copper, and oil all rising. US stock futures were mixed, AI stocks fell before the market opened, and bank stocks kicked off the earnings season. Expectations for interest rate cuts are rising, leading to a rise in European stocks; in addition, the US dollar strengthened, putting pressure on non-US currencies, with the euro falling to a 5-month low.
Commodity Surge: Gold, Silver, Copper, Oil Soar
Gold prices surged, with spot gold rising above $2400 per ounce, hitting a new historical high.
Spot silver rose nearly 2% at one point, hitting a three-year high and approaching the $29 per ounce mark.
Due to increased supply risks and improved demand outlook, base metals continued to rise. Copper and aluminum surged, with LME copper rising over 2% intraday to a high of $9568.00 per ton, the highest level since June 2022;
London aluminum broke through $2500 per ton for the first time since February 2023, poised for a fifth consecutive week of gains, while tin prices rose 11% since last Friday's close.
The market expects the domestic economic recovery to boost demand outlook, leading to the best weekly performance in two years for iron ore prices.
Oil prices lingered at high levels, with Brent crude and WTI both rising over 1%, with international benchmark Brent crude rising to around $90 per barrel and WTI rising to around $86 per barrel.
On the news front, tensions in the Middle East escalated. According to CCTV News, on April 1st local time, Israel attacked the Iranian consulate in Syria, resulting in the deaths of more than ten people, including Iranian military personnel and Syrian civilians. Iran strongly condemned the attack and vowed to retaliate.
Mixed Performance in US Stock Futures, Pre-market Decline in AI Stocks
The three major US stock index futures declined, with Dow futures up 0.12%, S&P 500 futures down 0.13%, and Nasdaq 100 futures down 0.29%.
Pre-market trading for US AI stocks saw declines, with AMD falling nearly 2% and Intel dropping over 1%.
US bank stocks kicked off the earnings season, with major banks such as JP Morgan, Wells Fargo, and Citigroup beginning to report first-quarter earnings. Market focus will shift to corporate profits, with investors closely watching banks' outlook and comments on key profit drivers such as net interest income and investment banking
Rate Cut Expectations Rise, European Stocks Rise
The Euro Stoxx 50 index rose by nearly 1.04%, the German DAX index rose by nearly 0.93%, the UK's FTSE 100 index rose by 1.29%, and the French CAC 40 index rose by nearly 1%.
European stocks saw their largest increase in over two months, as the market expects the European Central Bank to end its unprecedented rate hike action before the start of June. The market predicts that the eurozone will cut interest rates three times this year, while the Federal Reserve's rate cuts will be less than twice.
Strong Dollar, Non-US Currencies Under Pressure
The US dollar continues to strengthen, with the dollar index at 105.78.
Non-US currencies are under pressure, with the euro falling to a 5-month low and the yen breaking below the 153 level.
Updates in progress