Daijiworld Media Network- New York
New York, Apr 24: Global financial markets rallied on Wednesday as investor sentiment surged on hopes of a thaw in the ongoing US-China trade tensions. Equity indices soared, the dollar gained strength, and gold prices fell sharply, signaling renewed risk appetite among traders.
Market optimism was fuelled by reports suggesting that the US administration, led by President Donald Trump, may consider easing tariffs on Chinese imports. A source familiar with internal discussions confirmed that the White House is exploring the possibility of reducing import duties, pending upcoming negotiations with Beijing. This followed a report in The Wall Street Journal that cited multiple officials contemplating the move to cool down economically disruptive trade disputes.
Adding to the bullish mood, President Trump on Tuesday stepped back from threats to dismiss Federal Reserve Chair Jerome Powell — a shift that reassured investors already wary of political interference in monetary policy.
“There seems to be some light at the end of the tunnel here in terms of the trade war,” said Peter Cardillo, chief market economist at Spartan Capital Securities, echoing the cautious optimism now gripping global markets.
In the US, major indices responded enthusiastically. The Dow Jones Industrial Average climbed 685.41 points (1.76%) to close at 39,877.68, while the S&P 500 jumped 113.44 points (2.16%) to 5,401.20. The Nasdaq Composite soared 500.27 points (3.07%) to settle at 16,800.68. Positive corporate earnings, including Boeing’s better-than-expected quarterly performance, further propelled gains.
Global market sentiment remained upbeat, with MSCI’s world stocks index rising 1.84% to 810.90. In Europe, the STOXX 600 advanced 1.67%, reflecting broader optimism across major economies.
Meanwhile, safe-haven assets lost ground. Gold, which had recently touched record highs, tumbled 3.09% to $3,276.93 an ounce as risk-on sentiment prevailed. The US dollar strengthened, pushing the euro down 0.36% to $1.1379, and gaining 0.49% against the Japanese yen to trade at 142.28.
US Treasury yields declined, with the benchmark 10-year note yield falling 5.3 basis points to 4.336%, signaling investor relief over possible easing trade tensions and a pause in rate hike concerns.
Crude oil, however, bucked the equity trend. US crude dropped 2.97% to $61.78 a barrel, reflecting subdued demand projections.
Indian Markets Join Global Rally
India’s markets echoed the global rally, with benchmark indices posting solid gains. The BSE Sensex surged 520.90 points (0.65%) to close at 80,116.49, breaching the 80,000 mark for the first time in four months. In intraday trade, the index touched a high of 80,254.55. The NSE Nifty advanced 161.70 points (0.67%) to finish at 24,328.95.
Tech and auto stocks led the rally, buoyed by strong earnings and positive global cues. HCL Technologies was the top gainer, rising 7.72% after reporting an 8.1% increase in Q4 consolidated net profit to ?4,307 crore, backed by large deal wins worth ?25,500 crore. Tech Mahindra, Tata Motors, Infosys, TCS, Mahindra & Mahindra, and Maruti also recorded significant gains.
However, banking shares witnessed profit booking, with HDFC Bank shedding 1.98% to emerge as the biggest loser on the Sensex. Kotak Mahindra Bank, SBI, Axis Bank, ITC, and UltraTech Cement also ended in the red.
Analysts credited foreign fund inflows and favorable global sentiment for sustaining the bullish momentum in Indian equities. With signs of de-escalation in the global trade environment, investors appear increasingly hopeful of a smoother path ahead for global economic recovery.