Market Movements and Global Developments: A Snapshot (28 April 2025)

Highlights:

• Global market indices show modest movements at the start of the week, with declines in several major Asian markets.

• U.S. Treasury Secretary comments on trade issues with China, while Walmart resumes orders from Chinese suppliers amid tariff concerns.

• China continues to invest heavily in nuclear energy, approving additional reactors to strengthen its energy production capacity.

At the beginning of the new week, global financial markets have exhibited minimal fluctuations, with most indices showing little movement. The Chinese stock market is seeing marginal changes, with fluctuations generally remaining within a narrow range. The Japanese JP225 index has experienced a slight decline, while the Australian AU200.cash and Singaporean SG20cash have also posted modest losses. American CFD contracts on major indices are reflecting similar trends, maintaining declines within a similar range.

The forex market is similarly subdued, with movements of most currency pairs limited to a small margin, indicating a lack of significant volatility in the early hours of the week.

Trade and Economic Developments

In the realm of international trade, U.S. Treasury Secretary Bessent provided clarity on discussions with Chinese officials. According to reports, tariffs were not discussed during the talks, and Bessent expressed skepticism about claims made by former President Trump regarding recent communications with President Xi. This statement comes amid ongoing tensions surrounding trade issues between the two nations.

Meanwhile, in Hong Kong, Walmart has resumed placing orders with Chinese suppliers after disruptions caused by trade tensions. Several exporters have confirmed that tariffs are being absorbed by buyers, which could indicate a shift in the dynamics of global trade. This move has sparked optimism, with market participants watching for further developments on tariff reductions or the lifting of tariffs altogether.

Monetary Policy and Interest Rates

The European Central Bank (ECB) appears to be moving toward a rate cut in the near future, with a growing consensus forming among ECB policymakers about the need for action. Key factors influencing this potential move include weakening economic data, a strengthening euro, and declining oil prices. However, it is widely expected that the ECB will refrain from a larger rate reduction, with policymakers focusing on smaller adjustments.

On the other side of the world, the Bank of Japan is expected to keep interest rates steady during its upcoming meeting later this week. Concerns over U.S. tariffs have been identified as a major factor impacting Japan's economic outlook. These concerns, particularly in relation to potential negative effects on Japan's GDP, are leading to expectations that Japan may delay rate hikes until later in the year.

Global Political Landscape

Political commentary from former U.S. President Trump has stirred discussions on the ongoing conflict between Ukraine and Russia. Trump suggested that a resolution between the two nations could be within reach, even mentioning the possibility of Ukraine ceding Crimea to Russia. This statement has contradicted earlier statements made by Ukrainian leadership and has added to the complexity of the political landscape.

Meanwhile, in Canada, the focus has shifted toward the upcoming federal elections. Recent polls indicate a likely victory for the Liberal Party, led by Mark Carney, with concerns over the U.S. trade war influencing voter preferences. The Liberal Party’s stance on sovereignty and foreign relations appears to resonate with the electorate as Canada faces increasing economic pressures.

China's Nuclear Energy Expansion

China continues to make significant strides in expanding its nuclear energy capabilities. Over the weekend, China's State Council approved the construction of 10 new nuclear reactors. This marks the fourth consecutive year that at least ten reactors have been approved, underscoring China’s commitment to becoming the leading global player in nuclear energy. With these new projects, China is poised to surpass the U.S. as the world's largest producer of nuclear energy by the end of the decade.

As part of its broader strategy to strengthen energy security and reduce reliance on fossil fuels, China’s expansion of nuclear power is part of a long-term vision to lead the global energy sector.

China's economic policy remains a significant driver of global market sentiment.