Stock prices rose, and the US Dollar gained slightly as the Trump administration eased tensions that had recently unsettled financial markets.
President Trump’s comments last night boosted sentiment and once again proved that his outbursts should, at times, be taken with a pinch of salt. Any concerns about Federal Reserve independence appear to have been put to bed as President Trump confirmed he has no plans to remove Fed Chair Jerome Powell, but that he would prefer a rate cut sooner rather than later.
Signs of progress in some trade talks also helped improve market sentiment, with Trump and Treasury Secretary Scott Bessent saying that a standoff with China will ease. There were also reports of positive developments in trade talks with Japan and India, which further aided market optimism.
The above has seen risk assets wipe out early week gains with Gold trading lower than its weekly open, down around $3300/oz handle.
US index futures rose, wiping out Monday’s losses and also gapping up overnight. A continuation of the improved risk appetite we are seeing could lead to further gains ahead in today’s session.
The improved sentiment has also led to European stock indices recovering with the DAX finally breaking above key areas of resistance and eyeing further gains at the start of the European session.
SAP (NYSE: SAP ) shares surged 9.3% after the German company exceeded analysts’ expectations for first-quarter adjusted operating profit. The European technology sector rose 3.3%, making it the best-performing industry group.
The US dollar gained over 1% against the Japanese yen , hitting 143.21 early on but later settled at 141.85. It also rose 0.4% against the Swiss franc to 0.8222, after climbing more than 1% earlier. Meanwhile, the euro dropped 0.2% to $1.1393, and the British pound fell 0.15% to $1.3313.
Currency Strength Chart
Economic Data Releases
From a data standpoint, it’s a packed session for Europe as key economic reports from the Eurozone and the UK are set to be released. Significant deviations from expectations could trigger notable market volatility.
Chart of the Day - DAX
From a technical standpoint, the DAX has broken above a key resistance level thanks to the improved risk sentiment in play.
The index now trades above the 20 and 100-day MAs, with the potential death cross now looking unlikely if the bullish momentum persists.
The DAX is now eyeing resistance at a key level around 22405, with the 200-day MA resting just below at 22278 and could prove a stubborn hurdle.
If the index is able to maintain the bullish momentum and break above the 22405 handle then focus shifts to 22800 and 23200 as key areas of resistance.
Any move lower now, and support rests at 21602, 21433, before the 20800 and 20400 handles come into focus.
DAX Chart, April 23, 2025
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