NEW YORK, New York - Automakers and tech companies helped to lift U.S, stock indices Monday as stock markets around the world saw a reprieve from trade tensions due to weekend comments and actions by the Trump administration.
"The market believes that the administration is probably in some sort of retreat from their most-extreme tariff proposal," ed Ellerbroek, portfolio manager at Argent Capital Management told CNBC Monday. "That's incremental good news."
Imported automobiles and parts could get a reprieve along with computers and smart phones. Messages however from the president himself, and his closest advisors still tended to be mixed.
"I'm looking at something to help car companies with it," the U.S. president said Sunday. "They're switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time because they're going to make them here," Mr Trump added.
Following are Monday's closing quotes for key U.S. indices:
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The Standard and Poor's 500 rose 42.61 points, or 0.79 percent, to close at 5,405.97.
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The Dow Jones Industrial Average gained 312.08 points, or 0.78 percent, ending at 40,524.79.
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The Nasdaq Composite advanced 107.03 points, or 0.64 percent, finishing at 16,831.48.
Investors reacted positively to the White House's announcement that smartphones and computers would be temporarily exempted from new tariffs, alleviating concerns about potential cost increases for consumer electronics. However, the administration indicated that additional levies on semiconductors are expected to be announced later in the week.
Global Currencies Gain as U.S. Dollar Slips Amid Tariff Uncertainty
On Monday, April 14, 2025, the U.S. dollar weakened against major currencies, as investors reacted to the White House's inconsistent trade policies and growing concerns over the stability of U.S. assets. The dollar's decline was influenced by President Donald Trump's temporary exemptions on tariffs for certain tech products, which, while offering short-term relief, failed to alleviate broader market anxieties.
The euro edged up 0.04 percent to $1.1363, nearing a three-year high, bolstered by expectations of a European Central Bank rate cut later this week. The British pound surged 0.86 percent to $1.3195, its highest level in six months, as investors sought alternatives to the dollar amid ongoing trade tensions.
In the Asia-Pacific region, the New Zealand dollar led gains, climbing 1.16 percent to $0.5886, while the Australian dollar rose 0.73 percent to $0.6336. The Japanese yen appreciated 0.29 percent against the dollar, reaching 143.02, as Japan prepared for upcoming trade talks with the U.S.
The Swiss franc also strengthened, with the USD/CHF pair declining 0.08 percent to 0.8133, reflecting the franc's appeal as a safe-haven currency. Meanwhile, the Canadian dollar saw a modest gain, with the USD/CAD pair increasing 0.05 percent to 1.3869.
Analysts attribute the dollar's weakness to a combination of factors, including erratic trade policies, a sharp sell-off in U.S. treasuries, and a broader reassessment of the dollar's role as the global reserve currency. The European Central Bank's anticipated rate cut and the Bank of England's upcoming economic data releases are expected to further influence currency markets in the coming days.
As global markets navigate the uncertainties surrounding U.S. trade policies, investors continue to seek stability in other major currencies, leading to the dollar's ongoing decline.
Global Markets Surge Amid Tariff Reprieve
Global stock markets rallied on Monday, April 14, 2025, buoyed by the U.S. administration's decision to temporarily exempt smartphones, laptops, and other electronics from tariffs on Chinese imports. This move alleviated investor concerns over escalating trade tensions and sparked a broad-based rally across major indices.
Canada:
The Canadian market's gains were broad-based, with significant contributions from the technology and energy sectors. The rally was supported by easing trade tensions and a rebound in commodity prices.
UK and European Markets
European and UK indices posted robust gains:
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Germany's DAX surged 580.73 points to 20,954.83, up 2.85 percent.
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France's CAC 40 climbed 168.32 points to 7,273.12, a 2.37 percent increase.
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The EURO STOXX 50 rose 124.16 points to 4,911.39, gaining 2.59 percent.
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The Euronext 100 advanced 37.46 points to 1,437.33, up 2.68 percent.
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Belgium's BEL 20 added 105.55 points to 4,134.52, a 2.62 percent rise.
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The UK's FTSE 100 increased by 170.16 points to 8,134.34, marking a 2.14 percent gain.
Asian-Pacific Markets
Asian markets also experienced significant upticks:
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Hong Kong's Hang Seng Index rose 502.71 points to 21,417.40, up 2.40 percent.
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Singapore's STI Index gained 36.38 points to 3,548.91, a 1.04 percent increase.
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Australia's S&P/ASX 200 climbed 102.10 points to 7,748.60, up 1.34 percent.
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The All Ordinaries added 106.00 points to 7,959.70, a 1.35 percent rise.
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India's S&P BSE SENSEX surged 1,310.16 points to 75,157.26, gaining 1.77 percent.
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Malaysia's FTSE Bursa Malaysia KLCI increased by 26.10 points to 1,480.86, up 1.79 percent.
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New Zealand's S&P/NZX 50 Index Gross rose 88.41 points to 12,107.54, a 0.74 percent gain.
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South Korea's KOSPI Composite Index added 23.17 points to 2,455.89, up 0.95 percent.
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Japan's Nikkei 225 advanced 396.78 points to 33,982.36, a 1.18 percent increase.
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Taiwan's TWSE Capitalization Weighted Stock Index was the outlier, declining by 15.68 points to 19,513.09, a 0.08 percent drop.
Middle East & Africa
Markets in the Middle East and Africa showed positive movements:
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Israel's TA-125 rose 56.31 points to 2,511.43, up 2.29 percent.
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Egypt's EGX 30 Price Return Index edged up 7.80 points to 31,182.40, a 0.03 percent increase.
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South Africa's Top 40 USD Net TRI Index surged 199.60 points to 4,656.31, gaining 4.48 percent.
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