Market Information Monday 14 April 2025

EU finance ministers have agreed to present a united front in trade talks with the U.S. after President Trump suspended some import tariffs for 90 days. They warned that while the current impact on the EU is limited, long-term or permanent tariffs could push the EU towards recession. Meanwhile, the U.S. economy would likely suffer even more under such a scenario. The EU aims to strengthen its internal market and is ready to retaliate if talks fail, with key sectors like steel, cars, and microchips most at risk.

U.S. Commerce Secretary Howard Lutnick revealed that smartphones, computers, and other electronics recently exempted from steep tariffs on Chinese imports will face new tariffs within two months, alongside tariffs on semiconductors. These new tariffs will be separate from the reciprocal tariffs that have already surged to 125% on Chinese goods. The uncertainty created by President Trump’s shifting tariff policies has caused significant volatility in financial markets. Meanwhile, China has responded by increasing its tariffs on U.S. imports and is evaluating the impact of the exemptions granted late last week.

Gold has had its strongest week in five years, soaring over 6.5% to a record $3,237 per troy ounce, as investors fled to safety amid market turmoil caused by Trump’s escalating trade war. The sell-off in U.S. stocks and Treasuries, along with a weakening dollar, has boosted gold’s appeal as a safe haven asset. Central banks and investors are driving demand, with China even paying a premium for physical gold. UBS raised its 12-month gold forecast to $3,500, citing continued global uncertainty and strong institutional buying.

The 6M Euribor decreased with 4 basis points to 2.19% compared to previous business day. The 10Y Swap increased with 2 basis points to 2.57% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.