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Home > Stock Market Updates > Opening Bell - 11 / 04 / 25
Podcast: Stock Market Updates
Episode:

Opening Bell - 11 / 04 / 25
Category: Business
Duration: 00:01:45
Publish Date: 2025-04-11 03:24:44
Description:

Opening Bell - Morning Commentary


Bond vigilantes compel Trump's Tariff Pivot, Short Covering to Propel Indian Markets and Catch-Up with Globe Today

US markets closed lower on Thursday, as energy and technology stocks led to the downside. The retreat came on the back of a stunning 8% to 12% rally across major indexes on Wednesday when President Trump had announced a pause on the new tariffs.


US stocks and oil prices sank on Thursday amid fears China may once again respond in kind with higher tariffs to match the latest levies imposed by the United States. US hiked China tariffs to 145% amid intensifying trade war.


President Trump had announced a pause to allow for negotiations to potentially reduce tariffs and other trade barriers. The news on the tariff pause was a welcome de-escalation of the recent global trade tensions and led to a global relief rally in equity markets.


While US Treasury Secretary Scott Bessent claimed this delay was always intended, market dynamics suggest the administration acted in response to significant disruptions in the bond market.


The tariff postponement followed extraordinary turbulence in the $140 trillion global bond market, particularly affecting the $47 trillion U.S. fixed income segment. Movement in Treasury securities—the world's most liquid market with daily transactions exceeding $1 trillion—occurred when the administration was actively working to reduce yields and borrowing costs. Various global debt instruments, including mortgages, credit cards, and auto loans, are priced based on US 10-year Treasury note yields.


Despite gradually increasing foreign ownership of U.S. Treasury securities over the past year by other nations, the two largest creditors, Japan and China, have reduced their holdings by approximately $100 billion—a modest portion of the $8.5 trillion in foreign-held debt.


Reduced imports to the United States result in fewer dollars circulating globally, diminishing available capital for Treasury purchases and consequently driving up yields as investors demand higher returns.


Gold prices surged to an all-time high on Thursday as investors turned to yellow metal amid declining dollar and an escalating trade war between the U.S. and China. The prices of spot gold reached a record high of $3,171.5.


Indian markets were closed for a holiday yesterday and will breathe a sigh of relief today, as US President Donald Trump has announced suspension of the additional 26% levy on India until July 9.


TCS has reported quarterly numbers that are lower than street expectations for Q4FY25.


Our markets are expected to gap-up today and will discount two days of global economic developments and market movements at the opening today.


Nifty's immediate support is seen at 22400, while the 23100-23300 band is expected to act as a resistance zone.
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