BoykoWealth.com — Automated Daily Report on World Macroeconomic News for April 14, 2025
A comprehensive summary of the news, covering GDP, inflation, unemployment, consumer confidence, equity markets, fixed income and interest rates, commodities, currencies, economic indicators, geopolitical developments, and new technology news.
GDP: The U.S. GDP growth forecast for Q2 2025 has been revised down to 1.2% from 2.0% due to the anticipated impact of new tariffs. In Europe, the Eurozone’s GDP growth is expected to slow to 0.8% in Q2 2025, down from 1.1% in Q1. China’s GDP growth forecast for 2025 has been cut to 4.5% from 5.2% as the country grapples with the economic fallout from increased tariffs.
Inflation: Inflation remains a critical concern globally. In the U.S., inflation is projected to exceed 4% this year, driven by higher import costs due to tariffs. The Eurozone is also experiencing rising inflation, with the annual rate expected to reach 3.2% in April 2025. In China, inflation is forecasted to rise to 3.5% as the country faces higher costs for imported goods.
Unemployment: The U.S. unemployment rate ticked up slightly to 4.2% in March 2025, primarily due to more people entering the labor force. In the Eurozone, the unemployment rate remains steady at 6.8%, while China’s unemployment rate is expected to rise to 5.5% as economic growth slows.
Consumer Confidence: Consumer confidence in the U.S. has taken a hit, with the Consumer Confidence Index falling to 98.3 in April 2025 from 102.5 in March. In Europe, consumer confidence has also declined, with the Eurozone Consumer Confidence Index dropping to -10.5. In China, consumer confidence remains relatively stable but is expected to weaken if the trade war continues.
Equity Markets: Global equity markets experienced significant declines on April 14, 2025, due to escalating trade tensions. The Dow Jones Industrial Average closed at $40,524.79, up 0.78%. The S&P 500 Index rose 0.79% to $5,405.97. The Nasdaq Composite Index increased 0.64% to $16,831.48. In Europe, the Stoxx 600 declined 5.01%, and the FTSE 100 fell 4.86%. Asian markets were also affected, with the Nikkei 225 dropping 3.5% and the Shanghai Composite falling 4.2%.
Corporate Actions and Earnings: Several major corporations reported earnings on April 14, 2025. Nike Inc. (NKE) saw its stock price plunge 14.4% due to concerns about growth amid the escalating trade war. Apple Inc. (AAPL) dropped 5% in premarket trading due to potential price hikes for iPhones. Other companies, including Microsoft (MSFT) and Amazon (AMZN), also reported declines in their stock prices.
Trending Industry Update: The technology sector has been particularly hard hit by the trade war, with significant declines in stock prices for major tech companies. The Technology Select Sector SPDR (XLK) tumbled 6.8% on April 14, 2025.
United States: The U.S. Bureau of Labor Statistics showed that the Producer Price Index (PPI) for final demand decreased by 0.4% in March, following a 0.1% rise in February, but the core PPI increased by 0.3%, which showed ongoing price pressure. The University of Michigan recorded a consumer sentiment reading of 50.8 in April, marking the lowest point since June 2022 due to rising concerns about inflation.
Europe: In Europe, all eyes are on the European Central Bank’s April 17th policy meeting, with markets widely expecting another interest rate cut – its seventh since June – as President Trump’s sweeping tariff measures stoke fears of a recession across the eurozone. Germany’s ZEW Economic Sentiment Index is forecast to decline to a seven-month low, reflecting deteriorating investor confidence amid the trade tensions.
Asia: China’s exports surged as orders were front-loaded before tariffs took effect, but the country’s GDP growth forecast for 2025 has been cut to 4.5% from 5.2%. The Bank of Korea is scheduled to announce its policy decision, with markets anticipating a hold on interest rates.
Fixed Income and Interest Rates: The U.S. 10-year Treasury yield fell 19 basis points due to increased growth fears after the tariff announcement, only to finish last week 47 basis points higher. The European Central Bank is expected to cut interest rates again on April 17th.
Commodities: Gold futures fell but stayed near record highs on weaker dollar and haven demand. Oil markets saw OPEC cut its oil demand outlook amid U.S. tariff impacts.
Energy: U.S. shale production is expected to slow due to low oil prices, according to UBS. BP discovered oil at its U.S. Far South Prospect in the Gulf of Mexico.
Metals: Precious metals, including gold, saw a decline but remained near record highs due to haven demand.
Currencies: The dollar could extend losses unless it reasserts its safe haven role. The euro and yen are expected to remain volatile amid ongoing trade tensions.
Economic Indicators: Key data releases include U.S. retail sales and industrial production, Q1 GDP growth figures from China, Germany’s ZEW economic sentiment index, UK inflation and labor market data, and CPI readings from Japan and India.
Geopolitical Developments: The civilian death toll in Ukraine continues to climb as President Putin resists President Trump’s peace drive. U.S. allies are sitting out Trump’s trade war with China.
New Technology News: Pfizer has halted the development of its weight-loss pill. Asian tech stocks and Apple suppliers rose after a U.S. tariff reprieve.
This comprehensive summary provides a detailed overview of the latest macroeconomic news and market developments as of April 14, 2025.