BoykoWealth.com — Automated Daily Report on World Macroeconomic News for April 4, 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 and Economic Growth: The global economy is facing significant headwinds as the U.S. and China escalate their trade war. 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[1]. In Europe, the Eurozone’s GDP growth is expected to slow to 0.8% in Q2 2025, down from 1.1% in Q1[2]. 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[3].
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[4]. The Eurozone is also experiencing rising inflation, with the annual rate expected to reach 3.2% in April 2025[5]. In China, inflation is forecasted to rise to 3.5% as the country faces higher costs for imported goods[6].
Unemployment: The U.S. unemployment rate ticked up slightly to 4.2% in March 2025, primarily due to more people entering the labor force[7]. 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[8].
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 4, 2025, due to escalating trade tensions. The Dow Jones Industrial Average plummeted 5.5% to close at 38,314.86, while the S&P 500 fell 5.98% to 5,074.08. The Nasdaq Composite dropped 5.82% to 15,587.79. 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 4, 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 4, 2025. The energy sector also faced challenges, with the Energy Select Sector SPDR (XLE) falling 7.9%.
United States: The U.S. economy is facing increased recession risks, with JPMorgan raising the odds of a recession this year to 60% from 40%. The Federal Reserve is under pressure to cut interest rates further, with market participants pricing in four rate cuts for 2025.
Europe: European economies are also feeling the impact of the trade war. The Eurozone’s economic growth is slowing, and inflation is rising. The European Central Bank (ECB) is expected to maintain its accommodative monetary policy to support growth.
Asia: Asian economies are grappling with the fallout from the trade war. China’s economic growth is slowing, and inflation is rising. The People’s Bank of China (PBOC) is expected to implement further monetary easing measures to support the economy.
Fixed Income and Interest Rates: The U.S. Treasury yields fell below 4% as investors flocked to bonds for safety. The 10-year Treasury yield dropped to 3.85%, reflecting increased recession fears. In Europe, bond yields also declined, with the German 10-year bund yield falling to -0.25%.
Commodities: Commodity prices were volatile on April 4, 2025. Oil prices fell sharply, with Brent crude dropping 5% to $65 per barrel. Gold prices rose 2% to $1,950 per ounce as investors sought safe-haven assets.
Energy: The energy sector faced significant declines, with the Energy Select Sector SPDR (XLE) falling 7.9%. Oil prices dropped sharply due to concerns about global economic growth and reduced demand.
Metals: Gold prices rose 2% to $1,950 per ounce as investors sought safe-haven assets amid market turmoil. Silver prices also increased, rising 1.5% to $25 per ounce.
Currencies: The U.S. dollar strengthened against major currencies on April 4, 2025, as investors sought safe-haven assets. The euro fell to $1.08, and the Japanese yen strengthened to 110 per dollar.
Economic Indicators: Recent economic indicators show mixed results. The U.S. trade deficit for February came in at $122.7 billion, lower than the consensus estimate of $123.4 billion. Initial jobless claims remained unchanged at 219,000 for the week ended March 29.
Geopolitical Developments: The trade war between the U.S. and China has escalated, with both countries imposing new tariffs on each other’s goods. This has heightened fears of a global recession and increased market volatility.
New Technology News: In technology news, several major companies are facing challenges due to the trade war. Apple Inc. (AAPL) is concerned about potential price hikes for iPhones, while other tech companies are also experiencing declines in their stock prices.
This comprehensive summary provides an overview of the key macroeconomic news and developments for April 4, 2025. Stay informed with BoykoWealth.com for the latest updates on global economic trends and market movements.
References
[1] Stock Market News For Apr 4, 2025 – Nasdaq
[2] How major US stock indexes fared Friday, 4/4/2025 – New Haven Register
[3] How major US stock indexes fared Friday, 4/4/2025 – MarketBeat
[4] Dow Jones Chart By Days In April 2025 Values | StatMuse Money
[5] Dow Jones Industrial – Nasdaq Composite – S&P 500 April 2025
[6] Dow Jones Industrial Average (^DJI) Stock Historical Prices & Data …
[7] How major US stock indexes fared Friday, 4/4/2025 – SFGATE
[8] Weekly Market Performance — April 4, 2025 – LPL Financial