US Stocks Rise as Weak Data Fuels Hopes for Rate Cuts

US equities gained traction on Tuesday, continuing a trend of tracking Treasury market developments as weak economic data and downbeat corporate signals bolstered expectations of forthcoming interest rate cuts. The S&P 500 and Nasdaq both moved higher, while the Dow Jones Industrial Average added 200 points. March job openings in the US fell to 7.19 million, below economists’ forecasts, while the Conference Board’s consumer sentiment survey revealed a notable rise in pessimism.

The South African rand weakened on Tuesday as markets awaited Finance Minister Enoch Godongwana’s announcement on the timing of a revised national budget. The minister faces pressure to amend fiscal plans after shelving a controversial increase in value-added tax (VAT), which had drawn strong opposition from across the political spectrum. By 14h16 GMT, the rand had depreciated by around 0.30%, trading at 18.5475 against the US dollar. The protracted debate over the 2025 budget represents the most significant challenge to date for the Government of National Unity, formed after the African National Congress lost its parliamentary majority in last year’s general election. The VAT increase - initially proposed as a two percentage-point rise in February - was scrapped following last-minute disagreements within the coalition.

In London, the FTSE 100 hovered around 8,410, trading slightly lower as investors absorbed a flurry of mixed corporate earnings reports. Associated British Foods (LON:ABF) fell over 7% after reporting a 10% drop in first-half profits, with sales marginally behind last year’s figures. BP (LON:BP) declined by 3.60%, weighed down by falling oil prices and a 48% year-on-year drop in net profit to $1.4 billion, attributed to weaker refining margins, subdued gas trading, and the departure of its chief strategy officer. AstraZeneca (LON:AZN) also declined 4% following disappointing first-quarter results.

European markets were mixed, reflecting investor uncertainty in the face of varied earnings reports and geopolitical concerns. The Stoxx 50 edged down 0.20%, while the broader Stoxx 600 gained 0.20%. However, the automotive sector lagged, falling 0.40%, led by Volvo Cars, which posted a sharp decline in first-quarter profits and suspended its full-year guidance. The Swedish carmaker also announced SEK 18 billion (approximately $1.87 billion) in planned cost reductions.

In Japan, the Nikkei 225 advanced 0.38% to close at 35,840, while the broader Topix Index rose 0.86% to 2,651 on Monday, building on last week’s rally. Gains were led by export-driven firms as the yen weakened from recent highs, improving the earnings outlook for exporters and enhancing the appeal of Japanese assets to foreign investors.

Meanwhile, in China, markets extended their losing streak. The Shanghai Composite slipped 0.05% to 3,287, and the Shenzhen Component also declined by 0.05% to 9,850 on Tuesday. This marked the third consecutive session of losses amid persistent uncertainty surrounding Sino-US trade relations.

In commodities markets, WTI crude oil futures dropped by over 1% to approximately $61.10 per barrel, recording a second consecutive session of losses amid ongoing concerns about potential oversupply and the lack of clarity in US-China trade negotiations. Gold also declined, falling below $ 3,320 per ounce, as easing fears of a trade war reduced investor demand for traditional safe-haven assets. US Treasury Secretary Scott Bessent noted on Monday that several major trading partners had made “very good” tariff proposals, adding that China’s move to exempt certain US goods from retaliatory duties suggested a willingness to de-escalate tensions.
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