● Donald Trump stated that it is a good time for the Fed to cut interest rates, arguing that economic conditions and cost pressures justify monetary easing, while criticising the central bank for being overly restrictive.
● He also said he would not lift the naval blockade of the region unless Iran agrees to a nuclear deal, maintaining strong economic and military pressure and tying any de-escalation to concessions from Tehran. At the same time, he proposed forming an international coalition aimed at reopening the Strait of Hormuz and securing freedom of navigation.
● As a result of stalled peace talks and lack of progress in negotiations, Brent crude oil surged above $110 per barrel.
● Chinese PMI data showed an uneven recovery, with external demand remaining the main driver of growth as private manufacturing PMI rose to 52.2, the highest since 2020, and official manufacturing PMI stayed slightly above 50. However, domestic demand remains weak, as services PMI fell to 49.4, signalling contraction and highlighting reliance on exports rather than internal consumption.
● Japan’s March data painted a mixed picture, with industrial production falling 0.5% month-on-month versus expectations of a 1% increase, while retail sales surprised positively with a 1.7% year-on-year gain, indicating resilient consumer demand despite manufacturing weakness.
● In currency markets, the Japanese yen continued to weaken, with USDJPY breaking above the psychologically important 160 level and remaining elevated above it.
