Europe Summary and Highlights 14 April

European morning session

The USD was mixed in the European morning, gaining slightly against the JPY and CHF but falling back against the higher yielders as risk sentiment slightly improved. EUR/USD was not much changed just below 1.14, but USD/JPY gained around 20 pips to trade above 143. AUD/USD rose 30 pips to 0.6330 and GBP/USD gained half a figure to 1.3175. The FX moves reflected better risk sentiment, but equity futures were not much changed through the session after modest overnight gains.

Here was little news of any note during the session, with the market still reacting to the pause in tech tariffs announced at the weekend and the sharp FX moves seen last week.

Asia session

The U.S. equity indexes are opening higher for the week as risk sentiment mostly positive. It was triggered by weekend headlines regarding potentially lower tariffs on certain Chinese import, around 20% tariffs on tech products. Market cheers on that since it could indicate more exemption on tariffs. USD/JPY is trading 0.22% lower at 143.12 despite opening 40 pips higher than Friday's close as JGB outperform U.S. Treasury yields.

The broad risk atmosphere has improved over the weekend's Trump suggests smartphones, computers and other tech products from China will only be subjected to 20% tariff, instead of 145%. While China has halted exports of rare earth minerals and materials critical to sectors like autos, aerospace, and semiconductors. but market participants are choosing to cheer on Trump's stance change. U.S. major equity indexes are off opening high yet still higher than Friday's close while regional equities are outperforming. AUD/USD has closed the opening gap and is still trading 0.05% higher at 0.6293, NZD/USD is up 0.44% and USD/CAD is trading unchanged than Friday's close. Else, EUR/USD is trading 0.11% higher after opening lower, GBP/USD is up 0.13%.