Markets selloff continues - 7.4.2025

The Dollar weakening has resumed presently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rebounded 1.1% on Friday.

Both GBP/USD and EUR/USD reversed their advancing on Friday while federal statistics office Destatis reported German factory orders stagnated in February. Both euro and Pound are higher against the Dollar currently. USD/JPY reversed its sliding and AUD/USD reversed its climbing on Friday with the Australian dollar lower against the Greenback currently and the yen higher.

US stock indexes futures are sharply down currently as the selloff deepened on Friday. US stocks ended sharply lower with the three main stock benchmarks recording daily losses in the range from -5.9% to -5.7% as Nasdaq Composite entered bear market and the Dow Jones Industrial Average entered correction territory. Federal Reserve Chair said the central bank was in no hurry on rates while president Trump told that investors would have to take their medicine and he would not do a deal with China until the US trade deficit was sorted out.

European stock futures are tracking Wall Street currently after closing sharply lower on Friday led by bank shares while Goldman Sachs trimmed its growth forecast for the British economy, down from 0.8% to 0.7% this year, and downgraded its growth outlooks for Switzerland, Sweden and Norway. Asian stock indexes futures are falling today with Hong Kong’s Hang Seng index leading losses after China retaliated on Friday with its own 34% tariff on all goods imported from the US starting April 10, in response to a total tariff rate of 54% on Chinese exports by the US.

Brent is down sharply currently. Prices extended losses on Friday as Federal Reserve Chair Jerome Powell said president Trump’s new tariffs are "larger than expected" and the economic fallout, including higher inflation and slower growth, likely will be as well. US West Texas Intermediate WTI sank 7.4% and are lower currently. Brent dropped 6.5% to $65.58 a barrel on Friday. On a weekly basis, Brent futures fell 10.9%, while WTI lost 10.6%.