Insightz

U.S. inflation cooled further in April, with the Consumer Price Index (CPI) rising 2.3% year-over-year — the lowest increase in three years. This softer-than-expected reading has eased market concerns about persistent inflationary pressures. However, core CPI, which excludes food and energy, remained unchanged at 2.8%, reflecting ongoing price risks in housing and healthcare. Going forward, developments in U.S.-China trade tariffs and the Federal Reserve’s interest rate decisions will play a critical role in shaping investor sentiment. Market participants should stay vigilant and monitor inflation trends alongside shifts in monetary policy.

The euro has slipped to a five-week low against the US dollar, as easing trade tensions between the U.S. and China lifted demand for the greenback. Investors are now turning their attention to the upcoming U.S. April CPI report, which could play a pivotal role in shaping expectations for potential Federal Reserve rate cuts. From a technical perspective, the euro is at risk of breaking below the 1.1000 support level, increasing the likelihood of further short-term declines in the EUR/USD pair.

The Bank of Japan signals that while inflation is easing, rising wages and labor shortages are expected to support domestic demand and drive structural changes in the economy. As global uncertainty persists, investors are closely watching how Japan will manage the delicate balance between raising interest rates and sustaining economic growth.

The U.S. and China have agreed to a 90-day tariff truce, sparking the biggest single-day rally in the U.S. Dollar Index in recent months. This easing of trade tensions has lifted market sentiment, with investors showing a renewed appetite for risk assets. Capital is flowing back into the dollar and growth-oriented investments, pushing Hong Kong stocks and crude oil prices higher. While policy and political uncertainties remain, the dollar is showing signs of a strong rebound—an opportunity that investors should not overlook.

Gold prices have seen increased volatility recently, slipping below $3,250 per ounce. This pullback comes as safe-haven demand eases amid progress in U.S.-China trade talks, a stronger U.S. dollar, and reduced geopolitical tensions. Investors should keep a close eye on upcoming U.S. inflation data and Federal Reserve policy signals, as these factors could mark the next turning point for gold prices.

Hong Kong stocks extended their rally on Monday, with the Hang Seng Index climbing over 212 points in the morning session to reach 23,079. Trading volume exceeded HK$130 billion, led by strong gains in the technology and electric vehicle sectors. Citigroup raised its year-end 2025 target for the Hang Seng Index to 25,000 points, citing improving U.S.-China relations as a key factor supporting valuation recovery. Meanwhile, CATL has kicked off its IPO process, which could become the largest new listing on the Hong Kong Stock Exchange this year. In the currency market, competition among banks for USD time deposit rates is heating up, drawing investor funds with attractive returns. Investors continue to monitor interest rate trends and sector outlooks for future positioning.