MARKET WRAPS

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No major economic or corporate trading updates expected

Opening Call:

European stock futures edged lower at the start of the week. Asian stock benchmarks were little changed amid holidays in parts of the region; the dollar fell; oil futures slid; while gold rose.

Equities:

Stock futures fell slightly, pointing to a lower open for Monday. U.K. markets are closed for a bank holiday.

U.S. stock futures declined after the S&P 500 notched its longest winning streak in more than 20 years last week.

Investors will be looking toward Federal Reserve Chair Jerome Powell's remarks Wednesday, following a two-day meeting of the Fed's rate-setting committee. While the Fed is not expected to cut interest rates - much to the chagrin of President Trump and many investors - ears will be perked for clues from Powell about if and when cuts may occur later this year. The CME FedWatch tool is still pricing in three rate cuts by the end of 2025.

Forex:

Asian currencies strengthened amid U.S. dollar weakness, as "shifting sentiments of US policy risks and recession concerns weighed heavily on the greenback with the 'sell America' wave in full swing," CIMB said.

Bonds:

There is little data to suggest that China contributed to the recent volatility in U.S. bond markets, said Louise Loo, economist at Oxford Economics. Instead, evidence indicates Chinese policymakers are not actively de-dollarizing and they are unlikely to do so, she added.

China's share of total known dollar assets has been remarkably stable over the past few years, at around $1.6 trillion. Even if authorities wanted to quickly diversify away from the dollar, there are few options of high-grade and liquid foreign assets exist wherein to park China's $3.2 trillion official FX reserves, Loo added. China's export orientation means that it still requires substantial dollar assets, she said.

Energy:

Goldman Sachs cut its oil-price forecasts on assumptions of higher OPEC+ supply. OPEC+ decided Saturday to increase June production by 411,000 bbl/day, in line with Goldman's base case.

The investment bank forecasts Brent crude oil to average $60/bbl for the remainder of 2025 and $56/bbl for 2026, versus earlier expectations of $63/bbl and $58/bbl, respectively.

It projects WTI to average $56/bbl for the rest of 2025 and $52/bbl for 2026 versus previous forecasts of $59/bbl and $55/bbl, respectively.

Metals:

Gold edged higher in Asia amid losses in U.S. stock-index futures. The precious metal's direction is likely to be determined by equities' direction and risk appetite, said Fawad Razaqzada, a market analyst at City Index and Forex.com.

Gold, which has been on the defensive since topping out around $3,500/oz recently, is trying to find its footing once again, he said, adding that there seems to be some short-covering occurring.

TODAY'S TOP HEADLINES

How Bad Is China's Economy? The Data Needed to Answer Is Vanishing

Not long ago, anyone could comb through a wide range of official data from China. Then it started to disappear.

Land sales measures, foreign investment data and unemployment indicators have gone dark in recent years. Data on cremations and a business confidence index have been cut off. Even official soy sauce production reports are gone.

Trump Downplays Economic Concerns as He Looks to Cut Trade Deals

WEST PALM BEACH, Fla.-President Trump is minimizing concerns over further economic turmoil as he moves forward with trade negotiations and steps up pressure on Congress to pass a tax-and-spending bill.

In the coming week, the White House aims to announce at least one deal with a country seeking to escape higher tariffs, according to a senior administration official. Trump in return is seeking an array of benefits, including agreements that trading partners purchase more U.S. goods and curb non-tariff barriers.

Why Trump - and investors - will probably be disappointed by the Fed this week

The Federal Open Market Committee is scheduled to meet on May 6 and 7, and while the Fed isn't expected to cut interest rates, the meeting will likely be closely watched by both investors and President Donald Trump.

It's no secret that Trump wants the Fed to cut rates, he's said so explicitly a handful of times. On Friday he posted an all-caps message on Truth Social saying, "NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!"

Gold Fields to Buy Australia's Gold Road for Roughly $2.4 Billion

Australia's Gold Road Resources agreed to a sweetened US$2.4 billion takeover by South Africa's Gold Fields, after rejecting an earlier bid against a backdrop of surging gold prices.

Gold Fields approached its joint-venture partner in the Gruyere gold mine in Western Australia in March with a US$2.1 billion takeover proposal, but directors at Gold Road rejected that bid as highly opportunistic and materially undervaluing the company.

To Win Monopoly Fight, Meta Is Touting a Rival: TikTok

WASHINGTON-Weeks into an antitrust trial that threatens the future of Meta Platforms' social-media empire, the company's best bet for a court victory might lie with one of its rivals: TikTok.

The Federal Trade Commission is seeking to break up Meta, alleging that it wields an illegal monopoly originally built more than a decade ago through Facebook's acquisitions of Instagram and WhatsApp. To prevail, the agency needs to show not only that Meta engaged in unlawful monopolization, but also that its dominance hasn't waned since. That is where TikTok comes in.

Greg Abel's Challenge: Lead Berkshire Into a New Era Without the Buffett Touch

OMAHA, Neb.-Warren Buffett has done what he can to prepare his successor at Berkshire Hathaway.

He has tasked CEO-in-waiting Greg Abel with running most of the companies the sprawling conglomerate owns. He named Abel a vice chairman, worked with him on recent investments in Japan and shared the stage with him at Berkshire's famous annual meetings.

Novo Nordisk Says FDA Accepted New Drug Application for Wegovy Pill

Novo Nordisk said the Food and Drug Administration accepted its submission of a new drug application for a Wegovy pill to treat obesity amid a tense race to get an oral weight-loss medication on the market.

The Bagsvaerd, Denmark, company said Friday that if the application is approved, Wegovy would become the first oral formulation of a GLP-1 drug for chronic weight management.

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Expected Major Events for Monday

06:00/DEN: 1Q Consumer credit

06:30/SWI: Apr CPI

07:00/TUR: Apr CPI

07:00/TUR: Apr PPI

07:30/EU: Apr EuroCOIN indicator of euro area economic activity

15:59/UKR: Mar Industrial Production

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(END) Dow Jones Newswires

May 05, 2025 00:00 ET (04:00 GMT)

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