US Equity Markets Have Rebounded - Is the Dip Over?

US equity markets staged a strong rebound last week, with the $E-mini S&P 500 Futures(JUN5) (ESmain.US)$ and $E-mini NASDAQ 100 Futures(JUN5) (NQmain.US)$ surging 7.67% and 9.99% respectively. The rally was fueled by a combination of easing trade tensions, supportive central bank signals, and strong corporate earnings. Investor sentiment improved after Trump announced a pause on most reciprocal tariffs, although a 10% blanket tariff on imports remains in effect. Over the weekend, Trump also exempted electronic imports from the 145% tariffs on chinese goods. Markets welcomed his renewed optimism about reaching a deal with China, after Beijing retaliated and raised tariffs on US imports to 125%. Further boosting confidence were reassurances from the Fed, which signaled its readiness to step in to maintain financial stability if needed. On the corporate front, better-than-expected earnings from major banks added to positive momentum. $JPMorgan (JPM.US)$ and $Morgan Stanley (MS.US)$ led the charge, rising 14.79% and 12.31% over the week. Traders will be looking for further clues on monetary policies given that this week is "Fed Speak" week. Further US retail sales and initial jobless claims, should give a clearer picture as to the state of the US economy. The stock market will be closed on Good Friday.

Asian markets, in contrast, ended the week lower. Japan's $OSE Nikkei 225 Futures(JUN5) (NK225main.JP)$ whipsawed, moved alot and got nowhere. Sentiment was weighed down by a decline in consumer confidence, which slipped from 34.8 points in February to 34.1 in March. PPI also rose by 0.1% to 4.2%, adding to concerns about cost pressures. Meanwhile, a stronger yen further dampened equity performance. Traders can look out for Japan's trade balance and CPI data this week. The $HSI Futures(APR5) (HSImain.HK)$ ended the week lower by 8.54%, with the index plunging more than 13% on Monday after Beijing announced retaliatory tariffs on US. This was the largest daily drop since the 2008 Global Financial Crisis. Although the HSI recovered slightly from Monday's drop, tensions between China and US weighed on investor sentiments. Traders should take note of China's GDP, retail sales and unemployment rate. The $FTSE Singapore Straits Time Index (.STI.SG)$ fell by 2.45% as trade tensions escalated. UOB has also revised Singapore's GDP forecast to 1.5% this year, from 2.5%. Investors can look out for Singapore's trade balance data on Thursday. Singapore and Hong Kong markets will also be closed for Good Friday.

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