Delhi, 5 May (H.S.): US stock futures are experiencing profit booking after a nine-day winning streak, the longest for benchmark indices in 20 years. Currently, Dow futures are down by 250 points, with the S&P 500 and Nasdaq also lowered by 35 and 130 points, respectively. Asian markets largely remain closed due to a holiday. Notably, crude oil prices have fallen after OPEC+ approved a 411,000 barrels per day output increase for June, with Saudi Arabia warning of potential further hikes if non-compliant producers fail to adjust. President Trump indicated possible tariff deals may be finalized this week, though he did not specify the countries involved. In commodities, gold prices have risen, while the US Dollar holds steady around the 100 mark.
Emerging market currencies, such as the Taiwanese dollar and Malaysian ringgit, are appreciating amid hopes of easing Sino-US trade tensions, with Bloomberg’s Asian currency index hitting a six-month high. The Taiwanese dollar rose over 2%, marking a two-year peak. The Malaysian ringgit also reached its strongest level since October, and MSCI’s emerging market equities index gained as trade deal prospects improved.
On May 5, 2025, gold prices rebounded after a couple of weekly losses, trading above $3,260 an ounce. As investors sought refuge in gold amid global trade concerns and the Federal Reserve’s rate decision, geopolitical tensions flared in the Middle East, complicating the market landscape. Israel threatened severe retaliation against Houthi attacks, which are ongoing despite U.S. airstrikes.
In a recent interview, President Donald Trump signaled a willingness to reduce tariffs on China, citing high rates—up to 145%—as harmful to trade relations between the two nations. He noted that these tariffs hinder business dealings and remarked, “At some point, I’m going to lower them” to enhance trade dynamics. Trump also proposed a 100% tariff on foreign-produced films, aiming to boost American film production; however, the implementation details of this tariff remain uncertain, especially considering the global nature of film production.
In stock market developments, most Asian markets were closed due to public holidays, while the S&P/ASX 200 experienced a slight drop after a robust prior session. The Australian dollar depreciated by 0.06%, trading at 0.6439 against the US dollar. Concerns around oil prices heightened as OPEC+ announced a significant output increase, which analysts warned could not meet demand due to the impact of recent tariffs. Brent prices plummeted by 4.6% to around $58 per barrel, with West Texas Intermediate close to $56, as OPEC’s output rise aimed to alleviate overproduction concerns, particularly from members like Kazakhstan.
Overall, while most Magnificent Seven stocks rose, Apple Inc. fell 3.74%, reflecting broader global economic anxieties.
—————
Hindusthan Samachar / Jun Sarkar
