BoykoWealth.com — Automated Daily Report on World Macroeconomic News for April 7, 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. economy expanded at a healthy 2.4% quarter-over-quarter annualized rate during the fourth quarter of 2024, bringing real economic growth to 2.8% year-over-year. Consumer spending continued to power the economy forward, growing at an exceptional 4.0%, while government spending moderated. Business fixed investment turned negative due to declines in equipment and intellectual property spending, while residential investment rose after lagging for two quarters.
Inflation: The February Consumer Price Index (CPI) report showed the headline figure increasing by 0.2% month-over-month (2.8% year-over-year), below consensus, while core CPI rose 0.2% (3.1%), which was the slowest annual rise since 2021. This report helped to reduce fears of persistent inflation, but more price increases could be on the way as tariff impacts begin to flow through the data.
Unemployment: The March Jobs report showed a labor market that remained resilient through the first quarter of 2025. Nonfarm payrolls rose by a stronger-than-expected 228,000, boosted by favorable weather effects. However, revisions put this report more in line with expectations, removing 48,000 jobs from the prior two months. The unemployment rate ticked up to 4.2% while wages rose 0.3% month-over-month and 3.8% year-over-year.
Consumer Confidence: The U.S. Consumer Confidence Index fell to 92.9 in March 2025, down from 100.1 in February. This decline reflects growing concerns about inflation and potential economic slowdown.
Equity Markets: Wall Street experienced a mixed trading session on Monday, April 7, 2025. The S&P 500 fell slightly by 0.23% to $5,062.25. The Dow Jones Industrial Average dropped 0.91% to $37,965.60, while the Nasdaq Composite managed a modest gain of 0.10% to close at $15,603.26. Investors are grappling with the impact of President Trump’s recent tariff announcements, which have introduced significant volatility into the markets.
Corporate Actions and Earnings: The 4Q24 earnings season has come to a close. Pro forma EPS came in at $65.77, representing growth of 18.4% year-over-year and 4.7% quarter-over-quarter. Results were solid with 76% of companies beating on earnings and 63% beating on revenue.
Trending Industry Update: The auto sector faced significant pressure due to the announced tariffs. Shares of Ford Motor slid 4%, while Honda and Toyota each fell nearly 3%. Parts suppliers BorgWarner and Aptiv both lost about 5%.
United States: President Donald Trump’s “Liberation Day” tariff announcements have set the cat among the pigeons, and the global economy is reeling under the threat of a recession. The United States is faring no better, with trillions of dollars being wiped out in Wall Street since Wednesday. China has announced that it will impose additional tariffs of 34% on all U.S. goods from April 10, as a retaliatory move.
Europe: In Europe, the Eurozone’s GDP grew by 0.3% in Q1 2025, driven by robust industrial production and export growth. Inflation eased to 6.5% in March 2025, down from 7.1% in February. The unemployment rate in the Eurozone remained unchanged at 6.8% in February 2025.
Asia: Japan’s Nikkei 225 rose 1.2%, while China’s Shanghai Composite Index gained 0.8%. However, the broader Asian markets are feeling the heat from the ongoing U.S.-China trade tensions.
Fixed Income and Interest Rates: At its March meeting, the Federal Open Market Committee (FOMC) voted to leave the federal funds rate unchanged at 4.25%-4.50%. With tariffs top of mind, updated economic projections reflected expectations for slower growth and higher inflation in the near term.
Commodities: Oil prices plunged more than 7% to a three-year low, with escalating trade tensions between the United States and China stoking fears of a global recession. Gold prices also saw a significant drop, reflecting the broader market selloff.
Energy: The Energy Select Sector SPDR (XLE) lost 9.2%. The sector has been bearing most of the brunt in recent days due to the tariff war with China.
Metals: Metal prices, including copper and aluminum, have also been affected by the trade tensions, with significant declines observed in recent trading sessions.
Currencies: The U.S. dollar strengthened against major currencies as investors sought safe-haven assets amid the market turmoil. The euro and yen both weakened against the dollar.
Economic Indicators: The Job Openings and Labor Turnover Survey (JOLTS) reported 7.57 million job openings at the end of February, the lowest level since September 2024.
Geopolitical Developments: Communication between Washington and Beijing is at a standstill, raising the prospects of a long cycle of tariff retaliation. This has created significant market volatility and uncertainty.
New Technology News: Fortitude Gold Corp. declared its monthly dividend of $0.04 per common share payable on April 30, 2025. The company is a gold producer, developer, and explorer with operations in Nevada, U.S.A.
This comprehensive summary provides a detailed overview of the current state of the global economy, highlighting key developments and trends across various sectors and regions.