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World indices overview: news from US 30, US 500, US Tech, JP 225, and DE 40 for 6 May 2025

Posted on: May 07 2025

Amid speculation about China’s attempts to strike a trade deal with the US, global stock indices recouped losses seen on 2 April 2025. Find out more in our analysis and forecast for global indices for 6 May 2025.

US indices forecast: US 30, US 500, US Tech

  • Recent data: the US unemployment rate was 4.2% in April
  • Market impact: with unchanged unemployment, slowing job growth reduces the risk of aggressive rate hikes, which is favourable for rate-sensitive sectors

Fundamental analysis

NFP exceeded expectations, confirming economic resilience and driving demand for stocks, especially for companies in the domestic consumer sector. Job growth has slowed compared to March, while unemployment has not fallen below 4.0%, reducing the likelihood of additional rate hikes.

The data does not signal overheating or a recession, with the baseline soft-landing scenario remaining in place. This should keep US stock market sentiment in positive territory, although investors’ focus will shift to future Federal Reserve comments and inflation reports.

US 30 technical analysis

The US 30 stock index rose by more than 13% from its lowest level seen in early April 2025. However, the overall downtrend persists. If the 37,060.0 support level does not break, a sideways movement could follow. Only a breakout above the 42,535.0 resistance level could signal the beginning of the uptrend.

The following scenarios are considered for the US 30 price forecast:

  • Pessimistic US 30 forecast: a breakout below the 37,060.0 support level could send the index down to 35,060.0
  • Optimistic US 30 forecast: a breakout above the 42,535.0 resistance level could drive the index to 43,890.0
US 30 technical analysis

US 500 technical analysis

The US 500 stock index formed a resistance level at 5,700.0. The index is correcting within the uptrend following the longest winning streak this year. The support level has shifted to 5,465.0.

The following scenarios are considered for the US 500 price forecast:

  • Pessimistic US 500 forecast: a breakout below the 5,465.0 support level could push the index down to 5,100.0
  • Optimistic US 500 forecast: a breakout above the 5,700.0 resistance level could boost the index to 5,860.0
US 500 technical analysis

US Tech technical analysis

The US Tech index formed a resistance level at 20,180.0, with support at 19,155.0. Although the price broke above the 200-day Moving Average, the current uptrend is weak and is likely to be short-term. This may be confirmed by the price return below the 200-day Moving Average.

The following scenarios are considered for the US Tech price forecast:

  • Pessimistic US Tech forecast: a breakout below the 19,155.0 support level could send the index down to 17,600.0
  • Optimistic US Tech forecast: a breakout above the 20,180.0 resistance level could propel the index to 20,705.0
US Tech technical analysis

Asian index forecast: JP 225

  • Recent data: Japan’s manufacturing PMI came in at 48.7 in April
  • Market impact: investors may perceive the slowdown in the PMI decline as an early sign of stabilisation, which will support demand for industrial and commodity stocks

Fundamental analysis

With the manufacturing PMI still below 50.0, the Bank of Japan will likely maintain its dovish rhetoric. Low rates continue to bolster the stock market. Export and machinery companies may receive a small boost amid expectations of further improvement.

While the indicator remains negative, its improvement eases fears of a sharp downturn. The Japanese stock market may react neutrally and positively, especially in the industrial segment, with overall caution prevailing.

JP 225 technical analysis

A medium-term sideways range will likely form for the JP 225 index. The general trend remains downward. However, a false breakout below the 31,915.0 support level, followed by a reversal, is possible. However, such a reversal appears unlikely in the short term.

The following scenarios are considered for the JP 225 price forecast:

  • Pessimistic JP 225 forecast: a breakout below the 31,915.0 support level could push the index down to 28,720.0
  • Optimistic JP 225 forecast: a breakout above the 38,130.0 resistance level could propel the index to 39,635.0
JP 225 technical analysis

European index forecast: DE 40

  • Recent data: Germany’s manufacturing PMI came in at 48.4 in April
  • Market impact: slowdown in the rate of decline may support machinery and auto stocks

Fundamental analysis

The manufacturing PMI below 50.0 adds to arguments in favour of a soft ECB policy, which is generally positive for the market: cheap financing will support rate-sensitive sectors such as real estate and technology. An improvement in tenths of a per cent does not change the fact that business activity is declining. Therefore, the stock market is not expected to see a serious rally, but there is no panic either.

The PMI remains in contraction territory, with sentiment in the German stock market remaining cautious. Moderate gains due to a slowing decline mitigate the risk of a strong sell-off, while expectations of normalised trade conditions between the EU and US act as a growth driver.

DE 40 technical analysis

The DE 40 stock index broke above the 22,610.0 resistance level, with support shifting to 20,150.0. The index is trading around an all-time high and may renew it. It is too early to assess the strength of the emerging uptrend until the resistance level is formed.

The following scenarios are considered for the DE 40 price forecast:

  • Pessimistic DE 40 forecast: a breakout below the 20,150 support level could push the index down to 19,400.0
  • Optimistic DE 40 forecast: if the price consolidates above the previously breached resistance level at 22,610.0, the index could climb to 23,950.0
DE 40 technical analysis

Summary

All global stock indices see upward momentum. However, the trend is yet to reverse in the US 30 and the Japanese JP 225. The positive sentiment is driven by expectations of normalised trade conditions between the US and China. If their negotiations are successful, the stock market will get a hefty boost. In the future, investors will also follow the US Federal Reserve's comments on future monetary policy.

Commodities weekly: Energy slump overshadows strength in gold and agriculture

Posted on: Apr 27 2025

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Key points in this update:

  • A nervous sense of calm has returned to global financial markets as the White House adopts a more conciliatory tone on trade.
  • The risk of empty US supermarket shelves as shipments out of China for major retailers and manufacturers have slumped has strengthened calls for a deal.
  • A 35% slump in natural gas to a five-month low looks overdone, while crude's rebound has stalled on OPEC supply and global demand worries.
  • Gold's underlying support remains after blowout top sparks volatility and caution.
  • The agriculture sector sees broad April gains supported by US dollar weakness and trade hopes.

A renewed albeit nervous sense of calm has returned to global financial markets as the White House adopts a more conciliatory tone on trade, boosting optimism that the U.S. may secure deals with key trading partners. However, China remains a critical sticking point. Beijing has downplayed progress in its trade dispute with Washington, even as steep tariffs threaten both economies. U.S. retail giants like Walmart, Target, and Home Depot have warned that the 145% tariffs on Chinese goods, coupled with a 10% import fee on nearly all other countries, could trigger major supply chain disruptions and empty store shelves within weeks.

Their warnings align with forecasts from the Port of Los Angeles, where incoming shipments are expected to drop by up to 35%, as “essentially all shipments out of China for major retailers and manufacturers have ceased,” according to the port’s Executive Director. Maritime consultancy Drewry forecasts that global container port volumes will decline for only the third time since 1979. If two-thirds of current U.S. tariffs remain, imports from China could fall 40%, partially offset by increased imports from other nations.

 

Source: Apollo

Despite these red flags, markets—shaken by Trump’s tariff turbulence—have stabilized. U.S. stocks posted strong post-Easter gains, bond market activity has steadied, and the dollar’s recent slump has paused.

In commodities, easing tensions have dimmed gold’s safe-haven appeal—though not before it hit our raised forecast of $3,500—allowing minor metals like silver and platinum to gain ground, for now primarily on a relative basis. Copper saw renewed interest on the COMEX-traded High Grade contract, with traders pushing its premium over London prices back up towards 15% after it had dropped to 5% during the market panic following Trump’s “Liberation Day” tariff announcement.

The performance table below which shows the total return performance of the 24 major commodity futures included in the Bloomberg Commodity Index, highlights what a troubled and volatile month April, especially the first half has been. Overall resulting in a month-to-date loss of the BCOM index of 3.3% with heavy losses across the energy sector, primarily due to a near 24% drop in natural gas, and industrial metals being partly offset by gains in gold and across the agricultural sector.

Despite the recent setback the BCOM index, which is tracked by several exchange-traded funds around the world, trades up around 5% year-to-date, highlighting its value as a portfolio diversifier and also how current macro-economic concerns weighing on pro-cyclical sectors being offset among others by haven demand, long-term inflation concerns, a weaker dollar, and climate change.

Natural gas: Prices slump looks overdone

US natural gas futures dropped to a five-month low below USD 3/MMBtu after the EIA reported an 88 Bcf storage build, surpassing expectations and leaving inventories just 2.2% below the five-year average. Since peaking near USD 5 in March, prices have fallen over 35%, initially driven by macroeconomic concerns linked to the trade war, prompting hedge fund liquidations. The decline accelerated due to robust production and mild spring weather reducing demand, partially offset by record LNG export.

In the short term, prices are challenged by the technical breakdown with the prompt month trading below the 200-day moving average for the first time since last September; however, some support may re-emerge as utilities switch back to cheap gas from coal. Traders will also watch closely for signs of slowing US crude oil production in response to the recent price slump. Shale oil wells, especially in places like the Permian Basin, often produce both oil and natural gas. When prices fall below production cost, fewer new wells are brought online, which ultimately could see less associated gas being produced.

Natural Gas, first futures month cont. - Source: Saxo

Crude oil: Rebound stalls near USD 69 Brent

Crude oil’s strong rebound from a four-year low shows signs of running out of steam, with Brent crude finding strong resistance near USD 69 per barrel. Traders now view further gains as unlikely in the short term due to the continued trade war among top global consumers and speculation that OPEC+ may accelerate production hikes from June. Frustration is mounting over non-compliance, particularly from Kazakhstan, which struggles to balance national interests with its OPEC commitments—though its membership remains secure for now.

Brent Crude oil, first futures month cont. - Source: Saxo

 

Gold: Record high sparks volatility and caution

The spotlight in the commodities market remains firmly on gold, which this week surged to a new all-time high of USD 3,500—marking an impressive 33% year-to-date gain—before suffering an equally violent 8% correction. This rapid ascent means the yellow metal has already reached our recently upgraded price forecast far earlier than anticipated, but it also increasingly raises questions about the yellow metal's ability to continue higher without, at a minimum, going through another period of consolidation.

Gold’s meteoric rise underscores a broader trend in the commodities space, which continues to be heavily influenced by macroeconomic and geopolitical developments—particularly the intensifying trade war between the United States and China. As the world’s two largest economies clash, concerns mount over its potential drag on global growth and risk of rising inflation. In addition, the weaker US dollar, de-dollarisation from several central banks, and concerns about the fiscal debt situation in the US have also been key components behind the year-long gold rally.

In the coming days, it will be important to monitor the response from traders and investors in Asia—a key and consistent source of demand in recent months. While the short-term outlook for gold has become more challenging—particularly if the US President adopts a less aggressive tone—some nervous calm could return to markets as we await greater clarity on the impact of tariffs on economic growth and inflation. We continue to maintain a positive long-term view on gold. However, having reached our USD 3,500 target, further upside beyond may require a worsening of economic or political conditions.

Spot Gold - Source: Saxo

 

Agriculture: Broad gains on weak dollar and trade hopes

The agriculture sector, which has a 36.1% weight in the BCOM Index, trades up this month with broad gains seen across all three subsectors of grains, softs, and livestock. Its lower correlation to economic growth has instead allowed the sector to benefit from the weaker dollar, and countries offering to increase their purchases of US-grown crops such as soybeans and corn. In addition, traders are also keeping an eye on US-China relations following comments earlier this week by US officials on a possible de-escalation in the trade standoff.

In softs, cotton traded back above its 200-DMA, currently at USD 0.685, for the first time in a year, as it continues to recover after hitting a five-year low earlier this month at USD 0.6080/lb. Supported by China tariff hopes, US-India tariffs talk, and short covering from hedge funds that held a record 80k lot short last month, reduced to 42k on 15 April.

Just like cotton, the Arabica coffee future has also witnessed a strong recovery from an early April slump, supported by US tariffs targeting coffee-growing countries, and the beginning of the Brazilian harvest, which is expected to be down on last year following a troubled weather-related growing season after dry weather significantly hurt flowering in key Arabica growing areas.

Recent commodity articles:

23 April 2025: Blowout top leaves Gold in consolidation mode 22 April 2025: Commodities return Why allocation matters 16 April 2025: Whats next as gold hits our USD 3300 target 15 April 2025: COT Reports show hedge funds racing to cash post-Liberation Day 11 April 2025: Commodities weekly As chaos reigns whats next for markets 10 April 2025: YouTube Interview: Gold, silver, copper, oil - prices, supply, demand in 2025 8 April 2025: Golds deleveraging pullback fails to shake supportive outlook 8 April 2025: Golds deleveraging pullback fails to shake supportive outlook 7 April 2025: COT on Forex and Commodities - April 7 2025 4 April 2025: Commodities weekly Tariff-led recession pain triggers sharp reversal 3 April 2025: Tariff-related recession fears ignite widespread commodities selloff 2 April 2025: Commodity Outlook: Commodities rally despite global uncertainty 31 Mch 2025: COT Report: Ongoing USD selling amid mixed week for commodities 26 Mch 2025: Commodities show strength in Q1, led by a select few 25 Mch 2025: Crude oil Sanctions threat counters tariff-driven demand worries 24 Mch 2025: COT on Forex and Commodities - 24 March 2025 21 Mch 2025: Commodities weekly: High-flying precious metal sees profit taking 19 Mch 2025: Has the gold express already left the station? 17 Mch 2025: COT Report: Silver and copper stands out in week of energy weakness 14 Mch 2025: Gold surges past USD 3,000 as haven demand grows 12 Mch 2025: Tariffs and the energy transition: Key drivers of copper demand 11 Mch 2025: Gold holds steady despite deleveraging risks in volatile markets 10 Mch 2025: COT Report: Wholesale reductions in speculators' USD and commodity longs 7 Mch 2025: Commodities Weekly: Tariffs, trade tensions, fiscal bazooka, and Ukraine 5 Mch 2025: Tariff threat disconnects HG copper from global market 4 Mch 2025: Stagflation and geopolitical tensions fuel renewed demand for gold 3 Mch 2025: COT Report: Broad retreat sees WTI longs slump to 15-year low Podcasts that include commodities focus: 23 April 2025: Trump going soft on tariffs versus the direction of travel. 11 April 2025: US and China are slipping into an economic war 4 April 2025: Markets melts down as recession risks go global 1 April 2025: Bracing for Liberation Day 25 Mch 2025: Did Trump just blink? 18 Mch 2025: US market found support, but how durable will it be? 14 Mch 2025: Is silver set to shoot the lights out? 10 Mch 2025: US un-exceptionalism is the theme 7 Mch 2025: US bear market risks ratchet higher. EUR train has left the station 4 March 2025: Are we on the verge of a big whoosh?

Ole HansenHead of Commodity StrategySaxo Bank
Topics: Commodities Gold Silver Inflation Federal Reserve Gas Oil Crude Oil Heating Oil Oil and Gas Oil Copper Agriculture China Highlighted articles Wheat Natural Gas Highlighted articles Corn Platinum Trump Version 2 - Traders