The US Federal Reserve maintained its monetary policy settings. Palladium prices jumped to a one-month high

At the end of Wednesday, the Dow Jones Index (US30) rose by 0.70%. The S&P 500 Index (US500) was up 0.43%. The Nasdaq Technology Index (US100) closed higher by 0.27%. The US stocks ended Wednesday higher as investors weighed in on the US Federal Reserve’s decision to keep interest rates unchanged. As expected, the Fed kept the benchmark rate at 4.25%–4.5%, with Chairman Jerome Powell taking a cautious stance, saying that risks to both inflation and unemployment have increased. Powell emphasized that uncertainty remains high, and the Fed is in no hurry to cut rates without clearer economic data.

Meanwhile, hopes for a breakthrough in upcoming trade talks between the US and China remained weak, with President Trump saying he would not cut tariffs ahead of this weekend’s talks in Switzerland. Nvidia shares rose by 2.4% on reports of a possible easing of chip trading rules. Disney jumped 10.9% on strong streaming growth, while Alphabet fell 7.5% as Apple (-1.4%) considers alternative search options using artificial intelligence.

Equity markets in Europe were mostly down on Wednesday. Germany’s DAX (DE40) was down 0.58%, France’s CAC 40 (FR 40) closed down 0.91%, Spain’s IBEX35 (ES35) was 0.37% cheaper, and the UK’s FTSE 100 (UK100) fell by 0.44%. On the political front, UK and US officials are engaged in intense talks to reach a new economic deal to reduce tariffs, raising hopes of reducing trade friction. These talks follow the UK’s recent trade agreement with India, the largest since Brexit.

WTI crude futures fell nearly 2% to below $58 a barrel on Wednesday and are near four-year lows amid growing economic uncertainty and muted optimism ahead of upcoming trade talks between the US and China. Oil prices came under pressure earlier in the week after OPEC+ pledged to accelerate production increases, adding to fears of oversupply amid weakening demand linked to the protracted trade conflict. Those concerns were heightened after EIA data showed that US crude inventories fell by 2.032 million barrels last week, exceeding market expectations.

May US palladium prices (XPD/USD) rose to $980 per ounce, the highest in a month, amid some recovery in the domestic auto industry. President Trump introduced tax breaks for automakers to soften the blow from last month’s 25% tariffs on cars, limiting the drop in demand for catalytic converters, a major source of palladium purchases for the industry.

Asian markets were predominantly up yesterday. Japan’s Nikkei 225 (JP225) was down 0.14%, China’s FTSE China A50 (CHA50) added 1.04%, and Hong Kong’s Hang Seng (HK50) was up 0.13%, while Australia’s ASX 200 (AU200) was positive 0.33%.

The New Zealand dollar rose to USD 0.596 on Thursday after declining 1.1% in the previous session. The rise was supported by the prospect of easing trade tensions between the US and China, as top officials from both countries will meet in Switzerland on Saturday to begin stalled trade talks. Additional support came from China, New Zealand’s main trading partner, where authorities have stepped up efforts to boost growth amid trade concerns.