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29 Apr 2025

Tariff impacts starting to show

• US support. More tariff headlines. Sentiment improved with US equities & the USD rising. Bond yields declined. AUD & NZD slipped back.• AU inflation. Q1 CPI out today. Expected to show a further moderation in inflation supporting the case for another RBA rate cut in May.• US data. US Q1 GDP due tonight. Leading indicators point to a step down in growth. Will it be as bad as feared? Outcomes vs expectations matter. Global Trends US tariff related headlines continue to generate market gyrations with the overnight newsflow somewhat supporting demand for US financial assets. US equities rose with...

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Easing Trade Tensions Support Dollar, Loonie Languishes on Still-Unknown Election Result

Market sentiment is holding firm this morning as earnings reports come in, the cadence of data releases increases, and trade tensions show further signs of easing. Treasury yields are holding steady, S&P 500 and Nasdaq futures are up incrementally, and foreign exchange markets are trading on a mixed basis with the dollar up against most of its major rivals including the euro and yen. The Canadian dollar is modestly lower after Mark Carney’s Liberal Party achieved a thinner-than-expected margin of victory in yesterday’s close-fought Canadian election, driving whiplash price action within an incredibly-tight trading range. As we go to print,...

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